OK for revised taxi recap plan
David Masango
8 November 2004
The government is to implement a revised taxi recapitalisation programme at a cost of about R7.7-billion over seven years, starting in the 2005/2006 financial year.
The programme aims to make South Africa's roads safer by replacing about 97 000 minibus taxis with safer and more reliable vehicles.
The plan also seeks to ensure the sustainability and effective regulation of the industry, Transport Minister Jeff Radebe said in Pretoria last week.
Initially, companies were invited to bid for the manufacture of both new vehicles and new electronic management systems.
However, after evaluating the four bids that were received, a steering committee concluded that the programme in its original form was neither affordable to the national fiscus nor profitable to the operators, Radebe said.
Radebe said that the Cabinet had supported the steering committee's recommendations, that the bidders had been informed, and that the government
would await their response.
The new programme includes the introduction of specifications for the new taxis, with the focus on their safety aspects. This will allow taxi operators to acquire vehicles from any manufacturer that complies with the requirements.
The government has also introduced a once-off scrapping allowance of R50 000 per vehicle for registered minibus taxis.
"The scrapping allowance will be rolled out over a period of seven years to ensure affordability to the national fiscus", Radebe said.
The government will also introduce thresholds for vehicle seating capacity, instead of requiring that the new taxis all take between 18 and 35 passengers.
Radebe warned that law enforcement agencies would continue to remove unroadworthy vehicles from the roads.
He added that the Cabinet's decision was about taking the taxi plan forward in a revised form, while retaining the central objectives of the original programme.
Source: BuaNews
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