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E-tolls killing businesses in Gauteng: DA

PROS AND CONS: Grade 11 and 12 students debated the e-tolling system. PHOTO: Russell Roberts
PROS AND CONS: Grade 11 and 12 students debated the e-tolling system. PHOTO: Russell Roberts

The Gauteng e-tolls are killing jobs and businesses in the province, the DA said on Monday.

"The results so far reveal the e-tolls bill, for a sample of 50 small businesses, amounting to R850,000 so far this year," MP Toby Chance said in a statement.

"The highest cumulative bill incurred by a single enterprise was a staggering R101,761.83."

That was over R10,000 a month, he said.

The DA was announcing the initial findings of its survey on the e-tolls impact on small businesses.

Chance said some businesses had chosen to transfer the cost to their clients, while others had to retrench workers, or scale down their business models.

"The effect is simple and straightforward - the growth prospects for business and their ability to create jobs is severely hampered," he said.

Chance gave examples of individual accounts by some businesses.

A family-run transport company, which had been operating for more than 50 years, said e-tolls were costing the company an extra R5000 a month.

This led to a loss of clients in Pretoria because they could not afford the transport services.

A small electronics business with three service vehicles had a R32,000 e-toll bill which had not yet been paid.

The owner told the DA he would have to scale down which inevitably meant employees would be retrenched.

"While these results are a small sample, covering 50 small businesses in Gauteng, one can only imagine the impact e-tolls is having on the 1000's of other businesses and companies throughout the province," Chance said.

"Now is the time for people to stand up in support of growth and jobs, and against e-tolling."

Small and medium enterprises contributed 57 percent of the gross domestic product and accounted for 56 percent of employment.

SMMEs were expected to create 90 percent of jobs required to meet the National Development Plan's objective of 11 million jobs by 2030, he said.

"It is deeply ironic that the ANC government champions small business as the chief creator of jobs, but then implements a scheme which hinders the advancement and success of small businesses," Chance said.

"The reality is that tough times for business mean less jobs and higher prices for everybody."

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