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1. INTRODUCTION

The main purpose of today's meeting is to hand over cheques to you as representatives of five of the six regional municipalities of Gauteng. The object of this hand-over is to assist municipal government in carrying out their responsibilities relating to transport planning and implementation as required by approved government policy and legislation. In my budget speech on 22 May 2001, I stated, "During the past year, the Department has made great strides in the implementation of programmes and projects whose aim is to accelerate economic growth and development and poverty eradication." We are, however, all struggling with limited resources to meet the needs of our people and therefore must make the most of what we have. In the past year it was unfortunately not possible to utilise all available funds on Departmental projects and it was therefore possible to make the savings available to Gauteng municipalities for urban transport projects carried out in terms of the Urban Transport Act.

In my speech I will, in addition to the above topic, also share with you my thoughts on the issues of transport planning, the future establishment of Transport Authorities and the intention of Provincial Government to continuously improve co-ordination and co-operation between provincial and local government.

2. TRANSPORT PLANNING IN GAUTENG

Urban transport in Gauteng has a history of almost twenty years, starting with the Urban Transport Act in 1977. Over the years, Metropolitan Transport Authorities have been established in terms of this Act and core cities were designated for each of these areas. Urban transport plans were annually prepared and a good foundation therefore exists for future transport planning now to be embarked upon. Just about the whole of Gauteng has been covered by such previous planning exercises. A change of focus has also occurred during latter years, from planning of transport infrastructure during the initial years, to a more balanced planning approach also giving sufficient attention to public transport. Gauteng is thus unique in the sense that it will not be necessary to create large new organisations to kick-start the transport planning now required from us - we can merely build on what was of value in the previous planning and focus on priority issues.

This then brings me to the planning requirements of the National Land Transition Act or NLTTA, as it is commonly known. These legal requirements are extensive and will be costly to adhere to. I am of the opinion that we should not be over anxious to try to satisfy these requirements totally in the first year, but that we should rather plan in an incremental fashion, focussing on priority issues. What is however important is that we seek ways and means to join forces to ensure effective planning and to avoid duplication. Our planning should also be organised; integrated planning can only be achieved if we strictly adhere to an agreed planning programme which will ensure that planning at the one level of government be taken up in planning by the next.

As far as priorities are concerned, I would suggest that the formalising of the minibus taxi industry should receive focussed attention during 2001/2002. The Operating License Strategy (OLS) required in terms of the NLTTA, is essential to improving the operation of this mode of transport. I would request that we join forces and that all OLSs be completed by the end of 2001.

My department also has extensive transport planning responsibilities. The strategic road network and the higher speed train project (Gautrain) are province wide initiatives that have to link to the Spatial Framework developed by the Department of Development Planning and Local Government, and also with the Land Development Objectives in terms of the Development Facilitation Act. The strategic road network and the Gautrain planning are the basis for a transport framework that can provide guidance for the local urban transport plans of the core cities. When the relevant parts of the National Land Transport Transition Act come into operation, hopefully later this year, I will be required by the Act to prepare a Provincial Land Transport Framework to formalise the necessary planning. I am pleased to inform you that, with the help of the Transport Co-ordinating Committee, my Department has almost completed the draft Gauteng Provincial Land Transport Framework in anticipation of the requirements of the Act.

3. TRANSPORT AUTHORITIES

Since 1978 the core cities have performed the function of transport authorities and the three Metropolitan Municipalities of Ekurhuleni, Johannesburg and Tshwane and the two District Municipalities of Sedibeng and West Rand are still doing so.

The effects of the latest municipal demarcation have been noted and five new urban transport areas will shortly be declared with the above councils each being declared a core city for their area.

The NLTTA, however, makes provision for the establishment of Transport Authorities to replace core cities.

In anticipation of the coming into operation of the relevant sections of the NLTTA, a thorough investigation has been carried out by the Transport Co-ordinating Committee of the establishment of various combinations of municipal areas to form transport authorities. Following on discussions by each council, the matter will be taken further.

The establishment of Transport Authorities will take time, particularly because of the need to obtain clarity with regard to funding. In the meantime, the core cities will continue working in terms of the Urban Transport Act.

4. CONSULTATION AND CO-ORDINATION

In establishing the new Department of Public Transport and Roads in 1995 it was decided to establish two committees to provide for consultation and liaison with other spheres of government and other stakeholders; one at the technical level and the other to involve political representatives together with the industry. The two committees are:

(i) The Transport Co-ordination Committee; and
(ii) The Transport Advisory Board.

The Transport Co-ordinating Committee to which I already referred, is a technical committee which meet regularly and which is functioning well. A number of ad hoc working groups have been set up to deal with particular issues and one sub-committee, of a more permanent nature, has been established to deal with rail planning matters.

The Transport Advisory Board, which should give me guidance on transport matters within Gauteng, has only met a few times. There is, however, an urgent need for me to liaise with my political colleagues at the municipal level. I would like to take this opportunity to announce that, in order to achieve effective communication at a political level, I have decided to discuss the formation of a new body, provisionally to be known as the "Gauteng Transport Consultative Forum".

The first meeting of this forum is to be held during August 2001. Invitations for representation on the new body will be sent out shortly to the mayors of the local government structures. At this stage it is foreseen that only Category A and C councils will be invited to nominate representatives. Councils will be requested to submit to me the names of their portfolio incumbents for all those related to transport, including transport planning, public transport, roads and transport infrastructure, and traffic management.

5. TRANSPORT FUNDING

Funding of urban transport has been a problem from the word go and many attempts have been made to convince the Treasury and Government of the need for adequate funding.

The critical shortfall in funding for transport in Gauteng motivated the development of a comprehensive and holistic funding strategy, taking into account the needs at both provincial and local levels of government. This study was performed by a Working Group of the TCC and was completed in 1998.

The Working Group determined the present funding levels for transport in Gauteng at provincial and local levels of government. At local government, the present funding provision is R3.5 million per year although the funding needs amounts to R5.5 million. This leaves a shortfall at the local level of government of R2 000 million per year. At provincial level annual total funding for transport is R1.9 million with a calculated funding need of R2.7 million. This leaves an annual deficit of R800 million.

In summary then, a total shortfall of roughly R2.8 million for provincial and local government combined is estimated for attending to the needs in both transport services and infrastructure. This figure excludes funding required for the Gauteng toll system as it was assumed that such money would be generated through tolling and by applying the user-pays principle.

We will continue to make presentations to National Treasury and the Department of Finance on behalf of all transport authorities in Gauteng, in an effort to explain our needs, and to suggest possible methods to secure additional funding for transport.

However, a number of recent submissions prepared by the TCC to the national Department of Transport requesting financial assistance to implement the National Land Transport Transition Act, have had little response.

As I have said, we are gathered here today for you to receive, on behalf of your core city, a contribution from the Gautrans budget towards planning and implementation of transport in your declared metropolitan transport area. An allocation of R 17 million has been made for the five metropolitan transport areas. The funds have been allocated in terms of 1996/1997 identified needs according to the approved 1996/97 transport plans. The payment of this money is subject to the following conditions:

a. Projects to be supported have to be included in the approved 1996/97-transport plan for your transport area.
b. Grants were limited to 80% of the actual cost of work done.
c. Inspections of all projects attracting grants had to be made by Gautrans officials together with Core City officials.
d. The Gautrans grants must be paid into the relevant Consolidated Metropolitan Transport Fund as provided for in Section 18(1)(b) of the Urban Transport Act No. 78 of 1977.
e. Audited statements are required to confirm proper use of funds.

I am pleased to announce that all five transport areas have complied with the conditions and I would like to thank you for the way in which you all co-operated in satisfying the conditions and so making the handing over of the grants possible.

The funds presented to you today will be available in the local funds for use by you, as matching funds for the 2001/2002 planning and will also be available for other planning and implementation in terms of the Urban Transport Act.

6. FUTURE FUNDING ASSISTANCE

In conclusion, it is our intention to assist annually on a regular basis to assist you to plan on a dependable budget. In order to ensure that certain priority work is carried out, your planners have been asked to prepare business plans for the planning for 2001/2002 to commence on 1 July 2001. It is intended to provide 70% of the cost of the following priority items:

* Updating of minibus-taxi part of the CPTR.
* Development of an Operating Licences Strategy in terms of the national requirements.
* Measurement of selected Key Performance Indicators as agreed upon by TCC: Working Group 1.
* Preparation of an executive summary on transport planning, for use in the updating of the Provincial Land Transport Framework, next year.

A contract between Gautrans and the relevant Core City will be entered into and certain conditions will be laid down before money will be made available.

7. CONCLUDING REMARKS

It now gives me great pleasure to hand over the cheques to the honourable Mayors. We trust that this contribution will enhance transport in your own areas, even if it is only in a modest way.

Issued by: Office of the MEC for Transport, Gauteng, 26 June 2001