Business Day

No user-pays principle

- Arthur Chapman Stellenbos­ch

DEAR EDITOR — We cannot regard with any respect the government’s proposed user-pays principle as a reason for e-tolling (or any other tolling) of roads. Where else in our society does the user-pays principle operate? Water is not sold like that — many people get substantia­l subsidies. Electricit­y is subsidised for many consumers, including the Billitons of the world. The hugely expensive National Health Insurance scheme is not planned to operate like that. The taxpayer regularly bails out South African Airways. Money is being poured into Nkandla! For what?

The South African Broadcasti­ng Corporatio­n (SABC) does not operate on a user-pays principle. If you have a TV, you have to pay the licence, even if you never watch the SABC’s execrable programmin­g and propaganda. The Department of Water Affairs wants to build a large dam on the Mzimvubu River. The users of that water will never be able to pay off the capital and operating costs. The South African National Roads Agency envisages that tolls on specific roads will fund its general activities.

So where does the user-pays principle come from? There is no such thing. The tolls are merely an expensive revenue collecting mechanism outside the tax system, from which a few investors may score handsomely.

The finance minister and his department are treating the taxpaying public with contempt. The Department of Finance puts more energy into initiating tolls than it does on shutting down the enormous waste and theft of taxpayers’ money by the ruling party and its cadres, which could otherwise pay off the Gauteng Freeway Improvemen­t Project many times over in one year. Please explain, minister!

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