Talks on taxi relief

A short-term government-backed taxi industry relief fund meant to mitigate the effects of the lockdown on individual owners is in the pipeline.

This was announced during a briefing from Transport Minister Fikile Mbalula, where he outlined sector regulations that would apply in Level 3, reports Review Online.

Government has acknowledged that the taxi industry has been hit hard because of lockdown regulations and has agreed in principle to offer financial support, details of which would be made known to the industry in the coming weeks, he said.

Taxi drivers and owners have welcomed the news of potential financial assistance from government, saying they have been struggling to make ends meet since the lockdown.

Mbalula earlier said because the industry was not regulated, workers do not qualify for the Unemployment Insurance Fund (UIF) temporary relief payments.

Addressing various interested parties more than a week ago in Ivory Park, the minister said government was in the process of finalising the modalities to support the taxi industry.

According to reports, only taxi owners with legitimate and legal operating licences would receive payment from the relief fund.

It would be announced in due course how other employees within the industry – such as taxi drivers, queue marshals and office administrators – would benefit from the fund in the long run.

The taxi industry has seen a decrease in the number of passengers since the lockdown started on 26 March, after government announced regulations which restricted the movement of citizens.

Under Level 4, taxis could operate only between 5am and 7pm, being limited to 70% of their carrying capacity.

Across the country, business in the sector has picked up since the country moved to Level 3 on Monday.

On 25 March, as part of the relief measures for small businesses in distress announced by the president, taxis that have been financed by the SA Taxi Finance were to be granted a three-month repayment holiday.

– Caxton News Service