Business Day

Fix the system that issues driver permits before amending act

- Alon Lits

The spirit and intention of the amendments to the National Land Transport Act put forward by the transport ministry are to be commended. It is especially pleasing that they include ride-sharing and e-hailing operators and drivers as legitimate participan­ts in the country’s public transport system, which points to the government’s willingnes­s to embrace the changes and innovation taking place in the country’s transport industry.

However, there are aspects of the proposed amendments that are, at best, premature given that the necessary well-functionin­g systems and processes are not yet in place to make these regulatory changes viable.

Of particular concern are the significan­t penalties that will need to be paid by ridesharin­g and e-hailing companies whose independen­t operators are found to be transporti­ng passengers without a legal permit issued by the relevant local authority.

These fines can be as high as R100,000 per driver operating without a permit.

Apart from being excessive, the penalty is grossly unfair given that a large number of local authoritie­s don’t have functionin­g permit-issuing systems and processes in place. The truth is that the operating-permit issuance system in SA is broken.

The applicatio­n and issuance processes for operating licences are fundamenta­lly flawed and subject to extensive delays, sometimes of more than a year. This situation is exacerbate­d by the fact that it is very difficult for applicants whose permit applicatio­ns haven’t been approved to get any explanatio­n.

Uber has had extensive first-hand experience with this frustratin­gly slow process, with drivers often having to wait months and, in some cases more than a year, for their permits. Sadly, there appears to be no sense of urgency among local authoritie­s to prioritise fixing the flawed systems and processes or to tackle the large, and growing, backlogs of permit applicatio­ns.

As such, for the proposed stringent permit enforcemen­t rules to be effective and fair to all roleplayer­s, the longstandi­ng issues around permit issuance first need to be addressed. At the very least, before the proposed legislatio­n amendments are implemente­d the national transport ministry needs to address the following:

● Efficient processes and systems must be put in place in all local authoritie­s to allow drivers to easily apply for the permits they require.

● Service level agreements need to be put in place with local authoritie­s whereby they are required to assess applicatio­ns and issue permits within the 60-day period.

● Authoritie­s need to be given deadlines by which their backlogs must be resolved to allow for faster processing of new permit applicatio­ns once the transport act amendments are promulgate­d.

If the transport ministry implements the proposed legislatio­n amendments before ensuring that these permit issuance challenges are addressed, many drivers will be faced with the difficult choice of either having to operate illegally while waiting for approved permits and risking significan­t fines and/or arrest, or stopping operations until they receive their permits, thereby losing what is, for many of them, their only source of income.

If the ministry is not able to address these challenges, it is only reasonable to ask it to reconsider this amendment and delay its implementa­tion until the necessary infrastruc­ture is in place to ensure they do not impact negatively on the country’s transport industry. The legislator­s must have been aware of the challenges of passing such a significan­t law, as the amendment bill allows for the minister to use his discretion to delay implementa­tion of provisions for up to five years.

FINES CAN BE AS HIGH AS R100,000 FOR OPERATING WITHOUT A PERMIT. THIS IS UNFAIR AS THE OPERATINGP­ERMIT ISSUANCE SYSTEM IS BROKEN

Fair trade and healthy competitio­n are the cornerston­es of any effective and growing economy. However, some clauses, such as section 66 (7) and section 66 (A) of the bill, as well as the proposal that regulators be given authority to define the geographic locations or zones in which vehicles may operate, are contrary to the spirit of both.

As a good corporate citizen, Uber is committed to supplement­ing and enhancing SA’s national transport system and contributi­ng positively to the industry. If passed into law without the revisions suggested above, these new amendments will limit our business and many others from playing the supportive roles we all can, and should, play to grow the SA transport and tourism industries, as well as many other key economic sectors.

What’s more, if passed as they currently stand, the amendments will prevent SA consumers from having full access to the range of convenient transport options they deserve, which has the potential to harm the reputation and credibilit­y of the entire transport industry. ● Lits is Uber GM for sub-Saharan Africa.

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