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20 March 2008

Tshwane: The Department of Transport expresses disappointment at the decision by the South African National Taxi Council (Santaco) to put on hold their role in the Taxi Recapitalisation Programme (TRP). It is most unfortunate that Santaco's position came when the decisions taken at its management committee meeting had not been communicated to the department. However, the department will continue to discuss and engage with Santaco despite the latest developments.

The TRP has progressed significantly since its implementation on October 2006. To date, the department has scrapped a total of 13 415 old and unroadworthy vehicles. Of the R1 billion requested by the department from National Treasury for scrapping, only R470 million was made available during the 2007/08 financial years. The allocated amount was exceeded due to the success of the scrapping process. Subsequently a total of R668 million was paid out to individual operators as scrapping allowance.

Challenges facing provinces relating to the Operating Licensing Boards (OLBs) were noted and the department has intervened by developing a turnaround strategy to improve the efficiency of the OLBs. The strategy will soon be presented to MinMec for approval. This strategy came as a result of the engagement that took place between Santaco and the Department of Transport on 4 February 2008.

Government will continue to engage with the taxi industry to ensure that the TRP programme achieves its objective of providing safe, reliable, affordable and sustainable public transport.

Issued by: Department of Transport
20 March 2008
Source: Department of Transport, (http://www.transport.gov.za/)