Pravin Gordhan’s announcement that e-toll fees will not be scrapped, but rather reduced and capped was met with anger.

Thank you for the toll fee cut, Mr Finance Minister, now you have given us no choice but to continue the fight against toll roads.

This was the sentiment expressed by Cosatu and motoring organisations on Wednesday after Pravin Gordhan’s announcement that e-toll fees will not be scrapped, but rather reduced and capped.

“We are not cash cows that can be held up on behalf of foreigners who want to make money off us by using our public goods,” Cosatu general secretary Zwelinzima Vavi said.

“The strike continues (on March 7) and we probably will have another strike by (April 30) – the day he (Gordhan) says they will start introducing, or enforcing, this e-toll gate in Gauteng. We will not compromise.”

Gordhan said in his Budget speech that the Treasury would give R5.75 billion towards roads that had been built.

The toll fees would be reduced to 30c/km for ordinary vehicles, down from 40c/km, and motorcycles would pay 20c/km. Non-articulated trucks would pay 75c/km and articulated trucks R1.51/km.

Toll fees would be capped for regular road users at R550 a month, and there would be a 15 percent discount in rates after toll fees reached R400 a month. Tolling will begin on April 30.

Gordhan did not say what the amount would be without an e-tag.

Paul Pauwen, of the SA Vehicle Rental and Leasing Association (Savrala), the DA and the Automobile Association intend to launch legal action against e-tolling.

Pauwen said Savrala was disappointed with the decision to proceed with e-tolling, despite studies handed to the Treasury which show that if the roads were paid for through the fuel levy, motorists would have to pay only an extra 8c/litre to pay for Gauteng’s roads and 25c/litre to pay for road infrastructure nationwide.

“E-tolling is eight times too expensive,” said Pauwen.

“If they don’t provide an alternative form of public transport, how dare they tell us we have to pay.”

Spokesman Gary Ronald said the AA was convinced that despite the fee reduction, the cost to the consumer “as far as the Gauteng tolls are concerned is going to hit home hard when commodity prices and transport costs increase”.

Chris Gilmour, of Absa Asset Management Private Clients, said: “Although significantly reduced from the original plan, the fees will still have a negative impact on consumer spending.”

The DA’s Jack Bloom said the money given to pay for the roads made the case against the e-toll collection system stronger, “as it will cost about R1 billion a year to collect a smaller amount”.

National Association of Automobile Manufacturers of SA president David Powels said: “The automotive industry would have preferred to see freeway improvement programmes being financed through an administratively more efficient and less costly fuel levy.”

Cliff Watson, executive tax manager at Grant Thornton Joburg, said:

“It should be taken into account that a motorist with an e-tag would need to travel approximately 1 833km a month, or 46km a day one way on the toll road, to reach the cap of R550 a month.” - The Star

Latest EuroNCAP results show cars are getting safe, but not in every case.

It's been more than a decade since getting a poor EuroNCAP safety rating was the norm and a five star achievement like the Renault Laguna was something to shout about.

Today most cars achieve a five-star rating, with a few only managing four and the odd one here and there making just three.

But the latest results released by the European crash testing authority show that some carmakers still have some way to go with certain products - in this case Jeep with its Compass crossover vehicle.

POOR PROTECTION LEVELS

The compact Jeep managed only two stars against the latest crash test criteria. It was one of two cars that have been tested this year, the other being the latest Honda Civic hatch - which joined the five-star club.

Despite being fitted with an optional side thorax airbag, the Compass "showed poor protection levels" according to EuroNCAP, particularly in the side pole test.

Although the passenger compartment remained stable in the frontal impact, "structures in the dashboard presented a risk of injury to the knees and femurs of both the driver and passenger dummies and the car was penalised.

"In the side pole impact, dummy readings of rib deflections indicated a high risk of serious chest injury, even with the airbag fitted, and the car scored no points in that test."

The Jeep did, however, score maximum points in the side barrier test.

FIVE STARS REGAINED

Meanwhile, eight cars that were assessed last year have been reissued with a five-star rating because they also meet the more stringent requirements for 5 stars in 2012. These include the BMW 1 Series, BMW X1, Ford Focus, Ford Ranger, Mercedes M-class, Nissan LEAF, Subaru XV and Volvo V60.

"Many carmakers have moved on and so have we."

EuroNCAP's Secretary General Michiel van Ratingen concluded: "The results published today show clearly that a 5 star today means a lot more than a 5 star some years ago. Many carmakers have moved on and so have we. Cars based on older technology, brushed up and marketed as new are not providing the same levels as safety as the newest models developed against the new targets. Consumers interested in a fair comparison will not be fooled by these results."

Continued pressure from Gauteng motorists has paid off: toll fees for the improved freeways have been slashed and the National Treasury will be paying off R5.75 billion of the debt incurred in building them.

Continued pressure from Gauteng motorists has paid off: toll fees for the improved freeways have been slashed and the National Treasury will be paying off R5.75 billion of the debt incurred in building them.

Tolls will start being levied from 30 April and transport minister Sbu Ndebele warned that compliance would be enforced through the promulgation of new laws.

Finance minister Pravin Gordhan on Wednesday told journalists ahead of the national budget being tabled before parliament that this was not necessarily the model that would be followed with future infrastructure projects but said that the government had learned lessons from the extremely negative public reaction.

Ndebele acknowledged that Gauteng motorists’ demands were “not unreasonable” but that it was not possible for national government to have picked up the entire R20 billion tab for the upgrade of the road network.

Gordhan said that the national government’s direct contribution to the costs and the cutting of toll fees showed that it was “extremely sensitive” to the concerns that had arisen about how much motorists were going to have to pay to use the 185km network.

However he warned that there would be no deviation from the user pays principle, saying that nothing can be provided – except to the poorest – without some contribution from the user.

Vehicles with e-tags will pay 30c per kilometre, down from 66c previously, motorcycles will pay 20c per kilometre and non-articulated and articulated trucks would pay 75c and R1.51 per kilometre respectively.

An important concession for regular road users is that their monthly tolls will be capped at R550 a month and here will be a 15% discount in the rates after their toll fees reach R400.

Heavy vehicles will qualify for a 20 percent discount if they use the roads at certain times. This will also help avoid congestion.

Taxis and other public transport operators will be exempt from toll fees.

Gordhan also said that the Gauteng provincial government would upgrade the R55 and R101 provincial roads to provide alternatives to the tolled roads and that there would be a continued investment in other forms of public transport.

The SA National Roads Agency (Sanral) will be left with a total debt of R59 billion and, according to a statement released at the press conference, “to ensure sustainability, the minister of transport will table the necessary legislation to provide Sanral with enforcement powers for tolling.” - Political Bureau

The DA has challenged a public finance economist on his finding that the e-tolling system will not affect the poor.

The DA has challenged a public finance economist on his finding that the e-tolling system will not affect the poor.

“The statement… that toll fees on the Gauteng Freeway Improvement Project (GFIP) will only make the rich poorer and not hit the poor, cannot go unchallenged,” DA MPL Neil Campbell said on Wednesday.

“(The) claim that most poor people will not have to pay tolls as they use public transport is not accurate as not all taxis and buses will travel toll free, but rather only those with licences and on approved routes.”

On Tuesday, Dr Roelof Botha told reporters that the GFIP would result in unmitigated success and tangible benefits for South Africa.

“It will make the rich poorer, not the poor poorer,” he said in Joburg.

Botha's research found that the project would result in the highest income earning quintile (20 percent of the richest people) in Gauteng paying up to 94 percent of the toll fees, while most of the poor people would stick to public transport.

He said the project would maintain South Africa's international credit ratings, obviate the need for fuel levy increases, allow rapid investment in road construction, alleviate traffic congestion, and enhance safety.

Botha argued that commuting time saved (because of four lanes) would translate into productive earnings.

Campbell disagreed and said that the cost of every item transported along the toll roads would increase because hauliers would resort to raising their prices for transporting goods.

“This will impact on every resident in Gauteng, as the price of every item transported, including food, will rise.”

He contended that every home owner would also have their rates increased because of additional municipal road maintenance required due to increased pressure on roads by drivers avoiding the toll roads.

“The so-called benefits mentioned by Botha of decreased traffic congestion on the tolled roads will be temporary as the number of cars using the freeway will increase by seven percent a year, reaching capacity in just two years,” said Campbell.

“He (Botha) also disregards the enormous toll collection costs that will be saved with a simple fuel levy.”

The DA strongly disagreed with Botha's stance and reaffirmed its opposition to toll roads in Gauteng.

Last year, the SA National Roads Agency Limited announced that tolling was imminent on 185km of the N1, N3, N12 and R21 around Johannesburg and Tshwane.

In terms of GFIP, these roads and their interchanges had been improved and costs estimated at around R20 billion would be recouped through toll charges.

Light motor vehicles were expected to be charged R0.40/km, medium vehicles R1/km, “longer” vehicles R2/km, and bikers R0.24/km.

Qualifying commuter taxis and buses would be exempt.

E-tolling was placed on hold in January after a huge outcry that tolls were unaffordable. – Sapa

Sales are weak in Europe, strong in China - and now JLR wants to build cars there.

Tata Motors has selected a partner to build an assembly plant for its luxury British brands Jaguar and Land Rover in China, a senior executive has revealed

“We are waiting for the necessary regulatory approvals,” Tata finance chief C. Ramakrishnan told reporters, without giving any further details.

“An announcement will be made very soon,” he added.

China has emerged as a key market for Jaguar and Land Rover (JLR), whose sales in Europe remain weak due to the current economic uncertainty.

Earlier this month, Tata Motors announced a 41 percent jump in quarterly net profit of 34.06 billion rupees ($681 million) for the three months to December, thanks to strong sales of Jaguar and Land Rover.

Tata Motors, which also makes the world's cheapest car, the Nano, bought Jaguar and Land Rover from US Ford Motor Co in 2008 for $2.3 billion as part of its plans to expand beyond Asia.

Ramakrishnan said Tata Motors plans to double its investments in JLR to 1.5 billion pounds a year, starting in the new financial year, to help launch new products and technologies. -AFP

South Africans likely to be charged more than R11 for a litre of petrol from April.

If trends of the past three years are anything to go by, South Africans will be paying more than R11 for a litre of petrol from April – the most that fuel has ever cost.

Senior Econometrix economist Tony Twine and Gary Ronald of the Automobile Association predict that as the past two annual Budget speeches announced a steady increase in the fuel levy, it would be surprising if today’s speech did not follow suit with the fuel and Road Accident Fund (RAF) levies.

Last year, the fuel and RAF levies had a combined increase of 27 cents a litre and, according to Ronald and Twine, the taxes are likely to increase by a similar amount this year.

Ronald estimated that the average middle-income family used about 2000 litres of petrol per vehicle a year, or about 167 litres a month.

Currently, unleaded petrol 95 costs R10.95, unleaded 93 costs R10.77 and diesel costs R10.26 per litre.

The fuel levy for each litre is about R1.77 for petrol and R1.62 for diesel, with the RAF taking another 80 cents per litre.

Each month, the average South African pays tax of R296.42 for their petrol cars and R271.37 for their diesel cars. An estimated jump of 30 cents will raise those figures to R346.52 and R321.47. -The Star

Independent study concludes that Gauteng e-tolling will save money in the long term.

The Gauteng e-tolling system will save motorists money in terms of time saved, unlike an increase in the fuel levy, which will cause massive inflation.

This is the view of Dr Roelof Botha, an adjunct professor at the Gordon Institute of Business Science, who conducted an independent study into the benefits per cost ratio for light passenger vehicles that travel on the Gauteng Freeway Improvement Project. The study was done this month.

FUTURE INFRASTRUCTURE

Botha said he was worried that putting the e-tolling project on hold or cancelling it altogether would put a stop to future major infrastructure projects in the country, and this had led him to conducting a study into whether the system did hold benefits for car owners. Botha said it was no secret that Gauteng was the most congested province in the country.

His comments seemed to be in line with recent findings by the IBM Commuter Pain Index, which measuring stress experienced in Joburg traffic, that the city was third worst in the world after Beijing and Mexico City.

But in the past year, with only a partially completed highway, stress levels have already dropped.

“MAKING THE RICH POORER”

Botha said one of the major findings in his research was that high-income earners would pay for 94 percent of total toll fees paid. The researcher said this was very different to the idea that tolling would make the poor poorer. He said the figure was based on the assessment that passenger vehicles make up 92 percent of all users of the improved freeway. This figure also proved that food and retail goods would not increase in costs because of tolling.

Botha said his calculations said the electronic tolling had led to a huge time-saving for motorists that would lead to an annual benefit in productivity of R2.1 billion annually. He said this would go into the SA economy, leading to R26.5bn over 20 years and 5 percent inflation, “which is 32 percent higher than the total cost of the project”.

Botha conducted this analysis on the approximately R20bn spent to improve the roads and had not factored in the operating costs of the toll system that The Star has reported on. These costs could be as high as R14bn over eight years.

This cost benefit was far more beneficial than paying for the road infrastructure through the fuel levy as it could increase the petrol price by R1 a litre, causing an increase in inflation.

Botha said he hoped the toll system would go ahead immediately. -The Star

The 'first come, first to go' rule does not apply at these new traffic circles.

A learner driver was first into the traffic circle next to the Moroka police station.

She was in the circle when a Rea Vaya bus full of passengers also entered and started to hoot.

The loud noise and the approaching bus confused the woman. She struggled to get the car into gear and it stalled. Fortunately, the bus waited for her to proceed on her way.

This is one of many scenes that occur frequently in Soweto in the new traffic circles also used by Rea Vaya buses.

Motorists who do not drive there often don't know how to use them.

Constable John Serala, the spokesman for Moroka police station, who witnessed the incident, said it was not the first time; confusion was common.

"There is still some learning that needs to be done. The problem is that some people do not know who has (the) right of way as… they enter the circle.

"There have to be… signs that show how the movement of traffic should be. There also needs to be a campaign on how these circles operate, pamphlets need to be given out and (Rea Vaya) also needs to be part of it.

"Motorists need to have it explained to them why the (buses have) a right of way. Drivers think they have a right of way because they were the ones at the traffic circle first, but it's not like that with these circles," he said.

Synock Matobako of the Johannesburg Emergency Services Management agreed.

He said some accidents they attended to had been a result of people not knowing who had right of way.

"There needs to be more information on the usage of those circles. When people go for a driver's test, they are told that the person at the circle has the right of way, but now, with the bus rapid transit (BRT) system, it's different," Matobako said.

But Thulane Makhubela of the Joburg Roads Agency said the circles followed the "normal rules of the road" and there was nothing extraordinary about them. Neither were the rules contrary to what is taught in the K53 system.

The traffic circles, he said, also gave "right of way" to traffic approaching from the right. However, to accommodate the additional requirement of the Rea Vaya buses, which proceed straight through the centre of the circle, stop signs have been introduced to the circle.

By stopping at these stop signs, motorists can check whether there is a Rea Vaya bus approaching before proceeding safely.

While Serala and Matobako feel that notices should be put up at the circles to inform |road users how they work, Makhubela said it was not common practice to place such boards on site.

"However, the need for public education is important and the Rea Vaya BRT, together with the transport departments, will be running education campaigns in and around the areas where we have erected traffic circles.

"Motorists need to be vigilant at these circles and obey the signage and paint markings on the road.

"If correctly utilised, the traffic circles are safe for all road users," Makhubela said.

Road safety director drops some figures in aggravation of Humphreys' sentence.

Deaths caused by minibus taxi accidents in the Western Cape have increased by more than two percent since 2005, the Western Cape High Court heard on Tuesday.

Provincial road safety programme director David Frost said taxis accounted for 10 percent of casualties in 2005 compared to 12.48

percent in 2010/2011.

Frost was testifying in aggravation of sentence in the trial of taxi driver Jacob Humphreys, who crossed over the Buttskop level crossing in Blackheath on August 25, 2010, and collided with a train.

Ten of the pupils he was transporting were killed. Four others were seriously injured.

Frost said the taxi industry had evolved to suit the needs of drivers and fleet owners rather than those of passengers. The industry revolved around driving fast to get as many fares in a day, clearly disregarding the safety of commuters.

Frost said there had been an increase in damage to provincial level crossing booms, with almost one incident for every working day of the year.

“This is clearly indicative of the disregard for the booms when they are down,” he said. “There is a vast disparity of the weight, mass and momentum of a train compared to a motor vehicle. It's like a fight between a heavyweight and a lightweight.” -Sapa

The City of Cape Town wants to introduce more than 3 300 new paid parking bays across the city.

The City of Cape Town wants to introduce more than 3 300 new paid parking bays across Cape Town, with after-hours tariffs for parts of the CBD, Claremont, Observatory, Camps Bay and Strand.

This is part of the city’s new parking plan, the tender for which goes out for public participation at the beginning of next month.

The city said it hoped the extra bays would boost economic activity in those areas and encourage more people to use public transport.

According to the city, the main reason for the paid system is that some motorists park in bays for hours, hurting business at nearby retailers. The new system would ensure that bays were more easily available.

The after-hours system aims to regulate parking at night and will address safety concerns raised by businesses which had approached the city to come up with a formal after-hours parking system.

The argument is that paid parking means a higher turnover of bays and more space for potential customers for retailers.

Apart from advertising the contract for new service providers, the new parking tender includes a proposal for at least 3 320 bays to add to the existing 4 990.

At the moment, motorists have to fork out for parking in bays in the city centre, Bellville, Claremont, Gordon’s Bay, Sea Point, Somerset West and Strand.

With the new system, motorists would also be able to pay for parking with the city’s electronic travel payment card.

Service providers would have hand-held meters to print detailed receipts. Currently motorists are given hand-written receipts.

The rates in the Cape Town CBD are R2.50 for 15 minutes, R5 for 30 minutes and R10 for an hour.

In Bellville and Claremont it costs R1.50 for 15 minutes, R3 for 30 minutes and R3 for every 30 minutes thereafter.

In Gordon’s Bay, Somerset West and Strand it costs R2.50 for 15 minutes, R5 an hour and R2.50 for every 15 minutes thereafter.

In Sea Point motorists pay R2 for 15 minutes, R3.50 for 30 minutes and R3.50 for every 30 minutes thereafter.

Bellville has 550 bays, the Cape Town CBD 2 000, Claremont 240, Gordon’s Bay 570, Sea Point 400 and Somerset West 260.

Strand has 500 bays and an additional 470 from December to April.

The new bays will be set up in the Athlone CBD (250), Bellville (970), Camps Bay (200), Green Point including Gallows Hill (200), Fish Hoek (470), the Kalk Bay harbour (200), Kloof Street near Gardens (200), Muizenberg (150), Newlands (100), Observatory (75), Parow (280), Rondebosch, including the library, (75) and Simon’s Town (150).

Proposed suburbs and areas for paid-for after-hours parking: Camps Bay, Long Street, Greenmarket Square and surrounds, Cavendish Square and surrounds, the Jetty parking area in Strand, and Lower Main and Station roads in Observatory.

The current tenders expire at the end of June.

There are three service providers currently handling kerbside parking. The rates are set by the council.

In 2009, the city awarded Street Parking Solutions the tender for central Cape Town.

In Bellville, Claremont and Sea Point, Numque handles the system.

Ace operates in Gordons Bay, Somerset West and Strand.

Brett Herron, the mayoral committee member for transport, roads and stormwater, said the new tender would probably be awarded early next year.

This depended on public participation, which would run from March 1 to 31.

Herron said the current contracts would be extended until the new agreements were finalised.

He explained that the after-hours tariff could apply between 5pm and midnight.

It was to “support busy restaurant areas”.

“In most instances, business owners have made the requests, based on complaints they receive from customers.

“Weekend parking is alongside amenity areas where parking space is often utilised for the whole day, with no turnover of the parking space for other motorists.

“This can be very seasonal,” said Herron.

The report from the city’s transport department on the new tender was tabled at the Good Hope sub-council meeting on Monday.

Dave Bryant, ward councillor in the city centre, said the cost of parking was “quite problematic”.

“It has escalated along with basic inflation, but it started off quite high.”

Bryant’s ward also includes the Foreshore, Gardens and Oranjezicht.

He told the sub-council it was especially difficult for motorists spending short periods in different parts of the city.

“If you’re running errands from one side of the city to the other, you’ll end up spending a lot of cash.”

Bryant said sub-council chairman Taki Amira had earlier suggested a grace period where parking would be free for up to 20 minutes.

Bryant then suggested the city either postpone immediate tariff increases or reduce the cost by 25 percent.

Speaking to the Cape Argus, he said that in parts of the city centre, ad hoc car guards manned bays after hours.

With no set rates, motorists ended up paying as much as, or even more than, the daytime rate.

In some cases motorists hadbeen intimidated. And cars had also been vandalised.

“The parking marshals are our eyes and ears for security. They are linked to the CID (Central Improvement District).”

Marc Truss, the chief executive of the Oranjekloof and Green Point Central Improvement District, was at Monday’s sub-council meeting to lend support to the after-hours tariff.

After the meeting Truss said the CID had noted an “influx” of car guards after hours.

“They can earn money, they have a captive audience. It’s not formalised. If you monitor parking after hours, you have no more damage to motor vehicles or theft,” said Truss.

He said this did not mean motorists would have to fork out much more. There could be a flat rate – R10 for instance.

“This is not to make money, but to provide a service at a nominal rate,” said Truss.

Tasso Evangelinos, the chief operations officer of the Central City Improvement District, agreed that the evening parking operation would have to be very different from the current one.

The biggest benefits from implementing it would be standardising parking after hours, and job creation, while motorists would have peace of mind.

“There will be a person, in uniform, linked to either us or Cyclops (cameras). It will regulate the space.”

After-hours parking has been proposed for the area around Cavendish Square, and Ian Iversen, the ward councillor, supported the plan.

He said that over weekends, stores were negatively affected when motorists parked in bays for the entire day.

The new system would also be an incentive for motorists to leave their cars at home.

“The bottom line is people need to start using public transport.”

In the Athlone central business district, 250 bays have been suggested. Suzette Little, the ward councillor for the area, said there were very few parking bays in Athlone and the bulk were not in the CBD.

“Athlone CBD is one of the areas of development,” said Little.

bronwynne.jooste@inl.co.za - Cape Argus