Sweet deal for the taxi industry

Zweli Mokgata

Zweli Mokgata

An increase in infrastructure spending and a R320-million allocation from the 2007/08 national Budget will provide a huge boost for the taxi industry.

"All we are concerned about is the scrapping allowance," said National Taxi Alliance general secretary Alphius Mlalazi. "We will not support taxi recapitalisation until the allowance goes up from R50000 to at least R100000."

According to a Financial Mail report there are 130000 minibus taxis on the road carrying two thirds of all commuters. Through the taxi recapitalisation, only 85000 of these taxis are expected to remain in the industry.

The taxi scrapping administrator has been established with scrapping and storing facilities already set up in the Free State, KwaZulu-Natal, Eastern Cape and the Northern Cape.

The first provisions for the taxi recapitalisation project were made in the 2005 budget with an initial allocation of R250-million.

It rose to R315-million last year and is expected to rise by 9,1 percent to R352-million next year.