Showing posts with label user pays. Show all posts
Showing posts with label user pays. Show all posts

04 April 2012

Tolls: Cosatu cashes in | City Press

I think that City Press are being more than a little disingenuous in this article, which appeared in last Sunday's edition, when they imply that Cosatu is being hypocritical by objecting to toll roads while benefiting by investments in a firm engaged in road construction.

Tolls: Cosatu cashes in | City Press
Trade union federation Cosatu, an outspoken critic of toll roads, secretly benefits from a construction company involved in building new highways.

City Press can reveal that Cosatu’s investment arm, Kopano Ke Matla, has shares in Raubex, a construction company that won a tender to build one of Gauteng’s highways that are now being tolled to pay for the construction.

As far as I am aware, Cosatu has no objections, in principle, to road improvement. The point at issue is not improving the roads, but the method of paying for them.

Road construction has to be paid for, no matter who builds the roads.

For Cosatu the issue is not who builds the roads, but who owns the roads, and how they are paid for.

And the ones who are being hypocritical and confusing the issue are those in facour of tolling who keep uttering their mantra "user pays".

Cosatu and others who object to toll roads say that roads should be paid for by a fuel tax, which is fairest, easiest to administer, and is the best possible application of the "user pays" principle. Its main disadvantage is that it doesn't give enough opportunities for the elites to make money from kickbacks from the manufacturers of the toll-recording equipment.

23 February 2012

Toll roads "compromise" - the worst of all possible worlds

Faced with calls from various groups, including Cosatu, representing trade unions, and Naamsa (the association of automobile manufacturers, which employs members of trade unions) and the Automobile Association to scrap toll roads in favour of a fuel levy to finance roads, the government has decided to adopt the worst features of both systems -- to continue tolls, but to subidise them by means of an increased fuel levy.

That is the kind of compromise that gives "compromise" a bad name.

It also represents very muddled thinking on the part of the government, as the following shows: Lobby groups call for fuel levy as alternative to road tolling:
The government is seeking a balance between funding road infrastructure from a combination of direct payments from the National Treasury and funds generated from methods that rely on the user-pays method such as tolling, Department of Transport director-general George Mahlalela says.

How to get the best blend of these two opposing principles would be central to the outcomes of the road funding summit that is due to take place within the next two months, Mahlalela said in an interview this week.


The "opposed principles" are not like that at all. A fuel levy is the best, fairest and most easily implemented version of the "user pays" principle. "Toll roads" are an unfair, cumbersome and difficult way of implementing the principle.

If the Department of Transport cannot understand this, then it is really being run by incompetent people and needs to be overhauled.

Don't let anyone fool you by saying that the e-tolling system is an implementatio0n of the principle of user pays. That's just a propaganda smokescreen.

  • User Pays = Fuel Levy
  • Some Users Pay = Toll Roads
Until the 1970s South Africa's road construction and maintenance was financed by a fuel levy. Then the National Party government of the time decided to appropriate the road fund to finance its military adventures in countries like Angola, and its surrogate operations by groups like Renamo in Mocambiue -- and for that readon toll roads were introduced, to cover the deficit in the road fund.

Do we will need to destabilise Angola and Mocambique?

If not, there is no excuse for toll roads at all, and let's go back to a road fund paid for by fuel levies.

And here are some of the people who have been calling for this:

Use fuel levy for tolls - AA
The Gauteng toll fees should be absorbed by the increase in the fuel levy, the Automobile Association said on Wednesday.

"We are convinced that despite the latest offering from government the cost to the consumer, as far as the Gauteng tolls are concerned, is going to hit home hard when commodity prices increase as well as transport costs," said spokesperson Gary Ronald in a statement.

And from the trade unions E-tolling is 'commodification of public services' | ITWeb:
The Congress of SA Trade Unions (Cosatu) will march against the contentious e-tolling system on 7 March.

The union body adds that, during the State of the Nation address, it hopes to hear president Jacob Zuma announce that government is going to completely scrap the Gauteng e-tolling system and quash rumours that it is going to do no more than reduce the price of the tolls.
People like Julius Malema have calld for nationaluisation of wasting assets like the mines, but what they should be calling for is nationalisation of growing assets, like the transport infrastructure.

As Cosatu goes on to say E-tolling is 'commodification of public services' | ITWeb:
Cosatu says it will go ahead with its march. “We are utterly opposed to the commodification of more and more public services and believe that our roads are a public asset, not a commodity to create massive profits for private companies.
Click here

“E-tolling is a system of capitalism and will benefit only those that are financially healthy and not the poor.”

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