“Whilst it makes economic sense from the individual road user’s point of view to buy the e-tags to save, you don’t have to have a tag to use the road,” he said at the Reuters economist of the year awards in Johannesburg.

“Therefore Sanral [the SA National Roads Agency Limited] does not need you to have a tag in order to track the person down and deliver the bill relating to the use of the road,” he said.

Motorists will have to pay to use major highways around Johannesburg and Tshwane from April 30, with payment through an automated number-plate reading system.

A recent march by the Congress of SA Trade Unions highlighted opposition to the tolls, which many motorists are threatening not to pay.

Fuzile said he accepted that there was an argument that some people need to be cushioned from the user-pay principle.

“But to reject the user-pay principle and expect someone else to pay was 'bad economics’.” 

“To say ’phansi with user pay’ [down with user pay]... is problematic. It takes things too far,” he said.

In London, vehicle users had to pay a congestion charge, just because the roads were clogged, he said.

The fee had nothing to do with whether the roads were good, or whether the road user was making savings on vehicle wear and tear.

In South Africa, the roads were good, and road users were getting a good deal.

Fuzile said that when it was decided to toll the roads to fund the upgrades (in Cabinet in 2007), the economy was doing well and the recession of 2008/09 was yet to come.

He conceded that people were now feeling the pinch and that the tolls were hard to digest.

However, rejecting the user-pay principal was unhelpful and did not make economic sense.

In his Budget in February, Finance Minister Pravin Gordhan announced that drivers of ordinary vehicles would pay 30 cents a kilometre, instead of the original 66 cents. Fees would be capped at R550 for frequent users and taxis. Other accredited public transport providers would not have to pay the e-tag fee. Heavy vehicles will would get a 20% discount if they travelled off peak. Gordhan allocated R7.57 billion to Sanral for the financial year towards the R20 billion debt it had incurred to upgrade the roads.

“We are convinced that this is actually a good deal, and therefore it doesn’t require a contingency. Plan A is Plan B and vice versa,” said Fuzile.

After his address, he presented the Thomson-Reuters Economist of the Year Award to Dennis Dykes, chief economist at Nedbank.

Comments

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Sat May 25 08:47:21 SAST 2013 ::

Apr 13, 2012

zukx

I aint buying that for sh!t!! sue me!!
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Apr 13, 2012

tumzangwana

Motorists do not have to bu.y e-tags to use Gauteng’s toll roads, but it makes economic sense to do so, says Treasury director general Lungisa Fuzile
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heelang Lungisa you are kidding right? nothing about this e-toll makes economic sense at all.

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Apr 13, 2012

Tlhakajeng

e-tag my foot.
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Apr 13, 2012

potjiekos

In London, vehicle users had to pay a congestion charge, just because the roads were clogged, he said.

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hee wena Fuzile, this is not London, you copy cat.
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Apr 13, 2012

MommaC

In London, vehicle users had to pay a congestion charge, just because the roads were clogged,

Has this pooop ever been to London? Has he seen the underground railways and the bus systems? You don't need to have a car in London as they have PUBLIC TRANSPORT.

As for the 'user pay' - we already do. Its called 'fuel levy' and Uncle Pravin just put it up again
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Apr 13, 2012

Iwe

They can try to make sense of this e toll, the truth is that ITS A CRAB!
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Apr 13, 2012

KukuyaLethosa

Sowetan, why're you rejecting my comments mara yeh?
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Apr 13, 2012

ProphetofGod

This will teach them a lesson that they should have consulted before with the public rather than construct these "white elephants" structures and then try and convince us about their usefulness and how they will benefit us. We are not interested in their failed theories and arguments. We will simply not comply, that's it..
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Apr 13, 2012

83Musanda

You Anc" African national criminals will never day light robber me I will use my national transport wayawaya: Viva Metrorail Viva
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Apr 13, 2012

echisaph

The treasury director general's info is not substantive enough to convince tall payers.he should go back to the drawing board and try again, maybe he will convince us,BECAUSE WE ARE NOT GOING TO PAY.
He should know that the poeple of south africa feels that instead of the government helping us with our tax contributions, we are helping it to help us by paying more again.no wonder all this public officials are squandering our money.they can can sense the provision shortsightedness of their leaders.
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