Mixed reaction to toll announcement

(Image: GCIS)

This is despite Gordhan announcing earlier in the day that the Treasury had put together a special approbation of R5.8 billion to reduce the toll burden on motorists.

The costs of the Gauteng Freeway Improvement Programme amount to R20 billion, with the South African National Roads Agency Limited (Sanral) introducing the tolling system in the province to pay the debt.

Gordhan said today the R5.8 billion would help reduce the debt to be repaid through the tolls and would make a steeper discount possible for regular road users. The contribution by government would ensure that tariffs were reduced by up to half the price for e-tag holders.

As a result, e-tag motorists would not pay more than R550 per month on toll fees.

Transport Minister Sibusiso Ndebele expressed disappointment at Cosatu's stance and that of other activists who had said they would continue to boycott the tolling system, which has been the subject of a fierce debate for months now.

Speaking to BuaNews, he appealed to those opposing the tolls to engage government in a more "reasonable way".

Major progress made, but...

"I think we have made major progress in this regard and my appeal to those still opposing this is for them to appreciate the government's acceptance to make a contribution to this, a very major contribution of R5.8 billion and I think we should be able to move forward now," Ndebele said.

"Everyone has been heard, the government has been listening and all of us have got to understand the position we find ourselves in. This is the best that could have been done."

Government would continue to listen to those who still had a different view on the matter, with the aim of finding an amicable solution.

Business Unity South Africa said it welcomed the contribution of the Treasury to the tolling bill, describing it as a "welcome compromise".

"We have to say that we see this as a welcome compromise on the part of the government because we really have to get to some finality on this matter," CEO Raymond Parsons said.

He was also pleased about the announcement that the state would have about R4.5 trillion in resources, drawn from a range of financing methods, over the next three years to fund key infrastructure projects.

Gordhan announced the figure in a media briefing shortly before he delivered his Budget Speech in Parliament on Wednesday.

Scores of major projects

The Budget Review lists 43 major infrastructure projects that will each take between seven and eight and a half years to complete and require R3.2 trillion in spending over the next few years.

"The area we need to concentrate on now is implementation and actually making sure that we make it happen. We've been on this road before, we need to take measures in ensuring that what was said in the State of the Nation Address and what has been said in the budget actually gets to be done," Parsons said.

The Congress of the People said while Gordhan's budget made promising pronouncements, the party remained sceptical on whether there was enough capacity to implement the projects at the targeted speed.

"Generally, it's a good budget we must say. We will need to study further some of the figures but our concern is really in the implementation. It's good to present something but ensuring that it gets off the ground is something else. We will wait with interest to see everything being put into practice," said COPE MP Smuts Ngonyama.