POLITICS

SANRAL cash woes a further reason to drop e-tolling - Ian Ollis

DA MP says Agency should be funded off fuel levies, rather than an ill-conceived e-toll plan

Cash-strapped SANRAL: further reason to drop e-tolling 

South African Roads Agency Limited's (Sanral) financial problems are a further reason for the entity to abandon e-tolling. 

The DA reiterates its call for President Jacob Zuma not to sign the Transport Laws and Related Matters Amendment Bill (E-tolling Bill) into law. If signed into law, the Bill will give Sanral carte blanche to erect tolls around the country without public and parliamentary consultation. 

Yesterday Sanral's Spokesperson, Vusi Mona, confirmed that as a result of repeated delays in the implementation of e-tolling: "Sanral has almost totally depleted its available cash...we're not able to fund ourselves any further, due to investors not feeling comfortable with our risk profile."

If Sanral were to abandon e-tolling its risk profile would improve, allowing for investment. Moreover, the total of South Africa's fuel levies over time would have provided enough funding for Sanral to fulfil its mandate.

Evidence keeps stacking up against Sanral's e-toll plans, proving it to be ill-conceived and not in public interest. This is confirmed by:

  • The failure of e-tolling in Portugal;
  • Two independent studies, from the Southern African Bitumen Association (Sabita) and the Automobile Association of South Africa (AA), shows that the fuel levy provides enough funding for the construction and maintenance of our roads and that there is no need for the wholesale construction of toll roads;
  • The DA-led City of Cape Town's successful interdict preventing Sanral from tolling Western Cape highways.

Sanral's good reputation for building quality roads is hanging in the balance because of the e-tolls and this is threatening the financial stability of the entity. 

The maintenance of South Africa's road network cannot be jeopardized because of Sanral's obsession with e-tolls.

Statement issued by Ian Ollis MP, DA Shadow Minister of Transport, July 25 2013

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