Concerns that PRE cannot manage GFIP exemptions

Posted on 7 December 2011 by Administrator

07 DECEMBER 2011 SAVRALA PRESS RELEASE

Tourism concerned that PRE does not have the systems to manage exemptions from GFIP

Encouraged by the positive statements made by the MEC for Roads and Transport in Gauteng, Ismail Vadi, at the recent Gauteng Public Transport Regulatory Entity (PRE) launch, the Tourism industry remains concerned about PRE’s capacity to serve both their customer’s needs and SANRAL in Q1 2012.

The Southern African Vehicle Rental and Leasing Association (SAVRALA) representing approximately 450,000 vehicles, the Southern Africa Tourism Services Association (SATSA), the Coach Owners Association South Africa (COASA) and the Federated Hospitality Association of Southern Africa (FEDHASA) were represented at the launch by the umbrella association Tourism Business Council South Africa (TBCSA). Several transport association spokespeople criticised the previous Gauteng Operating Licensing Board (GOLB) for long delays and arrogance when processing permit applications but the MEC assured guests that the new PRE board will seek partnerships with its stakeholders and operate with ‘efficiency; professionalism; integrity, and strict adherence to the regulatory regime’.

The concerns were raised in light of the fact that the TBCSA (Tourism Board Council of South Africa) have many members who operate transfer and chauffeur-drive services, which, like metered taxis, require both vehicle and driver permits. Although the TBCSA looks forward to a constructive and efficient engagement with the new entity, they remain concerned about how the PRE will cope with plans by the Department of Transport (DoT) to implement GFIP (Gauteng Freeway Improvement Project) open road tolling in February 2012.

Admitting that the current entity has an ‘outdated and obsolete IT system’ the MEC did not give any clarity on how the proposed toll exemption for commuter buses and mini-bus taxis will be managed by the PRE. This is important as the new entity will need to maintain, at least daily, the validity status of vehicle permits allocated to certain vehicle license plates for the SANRAL tolling system to ensure that expired or withdrawn permits do not continue to receive exemptions from the proposed GFIP toll fees. Failure to maintain a high level of integration is likely to see a real risk of increased cloned minibus taxi and commuter bus license plates if the exemption is to be applied only to a narrow group of permit holders.

It is also unclear at this stage how the toll exemption status of minibus taxis and commuter buses, with permits issued outside of Gauteng, travelling on GFIP, will be managed. Will these road users be exempt? These types of questions become real issues for inter-provincial minibus taxi and commuter bus operators and could likely require national integration with SANRAL by all PRE’s and remaining Operating Licensing Boards. Operators would, for example, need to understand whether their Mpumalanga issued permit will be cancelled due to non-payment of GFIP tolls.

The DoT, after changing all its ‘user pay’ model descriptions, is yet to issue any detailed directive in the Government Gazette to help the various metered taxis, transfer and chauffeur-drive services understand why they may not be exempted from tolls.

A further question mark remains around whether the growing number of scholar transport operators, who will require permits, will be exempt from GFIP tolls?

It seems ironic that one of the potential new priorities for the Gauteng PRE in early 2012 may well be to invest in systems and resources (at vast cost) to accommodate integration into the proposed SANRAL GFIP toll system, for the purposes of tracking and administering exemption from toll fees. PRE will therefore be investing in major IT infrastructure without earning any revenue for this obvious administrative minefield.

The TBCSA feels that this is once again an example of wasteful and thoughtless expenditure and a further reason why urgent discussions need to take place between the DoT and the broad transport industry regarding the use of the national fuel levy to fund GFIP and other infrastructure projects in a much more cost-effective and administratively streamlined manner. SANRAL has estimated GFIP administration costs to be over R5bn for the next five years. TBCSA feels that this estimate is very conservative and will be far exceeded when the cost of collection and enforcement as required by the Criminal Procedure Act (CPA) is considered. This excludes the additional costs that will have to be passed on to Gauteng consumers. The billions to be spent on administration should rather be used for the construction and maintenance of highways around the country.

By utilising the existing fuel levy and increasing this by an acceptable margin to fund additional road expansion and upkeep would avoid all the above mention infrastructure costs and could save the country billions of Rands in additional expenditure.

Editorial contacts:
Paul Pauwen
Email: paul@savrala.co.za
Cell: 0832500333.

Introduction

Featured

Posted on 23 November 2011 by Administrator

In October 2002, SAVRALA initiated a Community Outreach social responsibility programme.

Thanks to the collective efforts of our committee and members, close to a quarter of a million rand has been raised to date. The SAVRALA Golf Day is the primary driver of funding for the SAVRALA’s Community Outreach Programme.

Past beneficiaries include Gauteng’s Hamlet Foundation and the Hospice Association of the Witwatersrand.

Carefully read your e-tag T’s & C’s urges SAVRALA

Posted on 11 November 2011 by Administrator

As a national body representing almost 450 000 vehicles on South African roads, SAVRALA (The Southern African Vehicle Rental and Leasing Association), as well as the Southern Africa Tourism Services Association (SATSA), the Coach Owners Association South Africa (COASA) and the Federated Hospitality Association of Southern Africa (FEDHASA) who all fall under the umbrella association of the Tourism Business Council South Africa (TBCSA), remain concerned and are unconvinced about the billing procedures of ORT (Open Road Tolling) and its implications despite the recent launch of SANRAL’s etag campaign.

While SAVRALA has as yet been unsuccessful in scheduling follow-up meetings with SANRAL (South African National Road Agency Limited) this month to review their many outstanding issues, SAVRALA are encouraging both individuals and companies to carefully consider the following before registering for an e-tag:

1) The final schedule of toll tariff’s and discounts from both SANRAL and the Department of Transport have yet to be published in the Government Gazette despite various communications on the Cabinet’s tariff decisions.

2) Despite ongoing requests for clarity and more detail, it remains unknown how SANRAL intends to prosecute road users who do not pay toll fees. It seems impractical and would most likely overburden the already strained judicial system if each individual who did not pay their fees, were to be prosecuted.

3) Currently no documented processes or systems are in place to resolve incorrect toll transactions caused by false (cloned) vehicle license plates. This puts the responsibility and the added cost onto Individuals and companies to ensure they have the necessary resources available to reconcile their SANRAL toll bills against their own vehicle/fleet movements.

4) The current e-tag Terms and Conditions available on the SANRAL website could be considered onerous and clearly place the responsibility of ensuring accounts have sufficient funds available on the registered e-tag user, as clause 22 requires a registered e-tag user to pay all fees and charges, irrespective of any dispute they may have over charges. This means the clause must be interpreted in the context of the risk of illegally cloned license plates as GFIP (Gauteng Freeway Improvement Plan) road users (as per clause 5) will be liable for all toll transactions recorded according to the user’s VLN (Motor Vehicle License Plate Number) or its e-tag.

5) No details have been made available yet to explain the criteria for exemption of commuter buses and mini-bus taxis. Depending on the definition of the criteria, many tourism related transport services may also be exempt. To date no explanation exists on how SANRAL will accurately maintain and enforce the validity of the various permits and routes etc.

The decision by SANRAL (who take their instructions from the Department of Transport) to launch their e-tag campaign now, whilst several further consultative processes are underway and which are largely led by the Department, only serves to cause further confusion amongst the general public.

SAVRALA looks forward to actively participating in the (yet to be confirmed) Road Funding Summit and will continue to propose that the burden of funding both the GFIP and other national road infrastructural priorities should come from an additional amount added to the national fuel levy as this is the most cost efficient and effective method to raise the required funds.

The need to build a viable and safe public transport infrastructure, as a real alternative to travelling on the roads, must also be considered. The Road Funding Summit should seriously consider how best to use the infrastructure already purchased, if other funding models like the fuel levy are to be implemented.

Editorial contacts:
Paul Pauwen
Email: paul@savrala.co.za
Cell: 0832500333.

2011 Manufacturer Of The Year Awards

Posted on 29 October 2011 by Administrator

On the 28th of October, members of South Africa’s motoring fraternity streamed into the Sandton Sun eager to find out who would scoop the 17th coveted Manufacturer Of The Year, or MOTY, Award. The event kicked-off with a heartfelt address by SAVRALA president Linda Kotze who gave an overview of the year’s activities and challenges that faced the industry, as well as some of the year’s highlights.

Guests were delighted to hear that the annual SAVRALA Charity Golf Day had once again been a great success. During an emotionally charged hand-over ceremony, SAVRALA was able to hand the Sunshine Association the healthy sum of R 100 000. Next year SAVRALA aims to steer its attention towards supporting a charity that works with green initiatives and environmental awareness. The fact that SAVRALA and its members take environmental issues seriously was evidenced by the ‘green’ theme of the evening which saw each guest leave with a live tree-in-a-tube, aimed at furthering a culture of environmental consciousness.

MOTY has become a milestone in the motoring industry and the standards and judging criteria have become more stringent and the competition more nail-biting each year. This year was no exception. In fact, despite the economic downturn there has been a marked improvement year on year as manufacturers dug deeper and re-evaluated their deliverables. Of the many facets that each SAVRALA member is asked to score, general improvements were noticed for almost all questions with above average growth being seen in areas of Communication and Support. After experiencing a slight downward movement in scores last year compared to 2009, it is promising to see these scores return to higher levels this year, indicating greater effort and focus being placed on service delivery.

The evening was hosted by none other than South African funnyman Nic Rabinowitz whose sharp wit and cross-cultural satire had everyone in stitches. Despite the economic crunch the awards were well-supported by both the top motoring manufacturers as well as the Who’s Who of the rental and leasing industries. “It was a very elegant and slick affair and we are always very proud to host this event for the industry” said Kotze. “We believe that it is important to acknowledge the companies that go the extra mile for their customers and also to ensure standards are upheld and improved upon.”

SAVRALA continues to say ‘No’ to GFIP tolling

Posted on 27 October 2011 by Administrator

Release date: 27-10-11

At the Southern African Rental and Leasing Association’s (SAVRALA) AGM held today in Johannesburg, its members, representing over 450,000 vehicles, agreed not to register their vehicles for e-tags until their tolling concerns have been addressed. The lack of clarity regarding the enforcement of tolling, the burden of additional administrative costs on Gauteng road users and the risk posed to road users by cloned registration plates are only some of the outstanding concerns which present yet undetermined consequences to both its members and all Gauteng road users.

SAVRALA welcomes the recent instruction by the Minister of Transport to ‘halt all processes related to the tolling of national roads’. The Minister’s view that the ‘consultative processes should be allowed to take place to offer concerned parties an opportunity to share their views on the toll road program’ is warmly supported and long overdue. The intent, however, to implement tolling in Gauteng, should also be halted.

In addition, the firm statement given this week by the Finance Minister Pravin Gordhan to his Government to ‘use the resources we have far more effectively’, strongly resonates with SAVRALA’s concerns about the planned implementation of urban tolling in Gauteng. The expected administrative costs, conservatively running into billions, could be replaced almost overnight by an additional fuel levy without any wasteful administrative costs. Funds raised by the fuel levy could be allocated to key national infrastructural projects, such as the Gauteng Freeway Improvement Project (GFIP).

SAVRALA remains ready at all times to engage with SANRAL and the Department of Transport to address the current road infrastructure funding challenges. The lack of an effective consultation structure between the various transport related stakeholders and Government remains an important opportunity to be fulfilled.

Given the dynamic and fluid nature of the current tolling national debate, SAVRALA’s members will again review their position on the implementation of planned urban tolling in Gauteng within the next month.

Editorial contacts:
Paul Pauwen
Email: paul@savrala.co.za
Cell: 0832500333.

Government clearly depsperate to implement at any cost

Posted on 11 August 2011 by Administrator

SAVRALA has often applauded the Gauteng Freeway Improvement Project (GFIP) upgrades and is not unwilling to pay its respective share, but is yet to be convinced that the current urban toll model is the most efficient and cost effective.

An independent transport regulator should have been in place at the beginning of this process to ensure that there is reasonable oversight and due administrative process. In its absence, the fact that, in Gauteng we will be expected to pay R6,2bn to collect approximately R20bn, a collection cost of 30% over five years without any real transparency of the real costs involved is reason alone for grave concern.

Today’s announcement also does little to convince Gauteng road users that Government has displayed a genuine willingness to engage constructively and transparently with key stakeholders and the public at large. During the ORT Steering Committee process, established earlier this year to address the concerns of various broad based stakeholders, the Department of Transport held a press conference an hour before the final consultation meeting took place to announce their recommendations. One wonders what the point of the consultation was. Last month we also noted the formal request, by Business Unity South Africa directly to the Minister of Transport and the SANRAL CEO, for access to key information, which to date remains outstanding.

The GFIP tolling debate created the perfect opportunity to discuss, as broad based social partners, various funding options to tackle the road infrastructure backlog in the context of developing a reliable, safe and cost effective public transport system. The Governments desperate bid to steamroll the GFIP urban toll process has demonstrated an ability to decree a ‘user-pay’ methodology for all one day but, conveniently, when faced with threats of non-compliance from the taxi industry, decides to exempt ‘qualifying commuter taxis and buses’. Today’s announcement is notably thin on the rationale for the exclusion which in effect implies that potential toll users must, in addition to normal taxes and levies, now also subsidise public transport.

While Government may view today’s announcement as a further step towards the planned ORT implementation, we remain hopeful that there still remains opportunity for broad based stakeholders to engage with Government to identify a more holistic road maintenance strategy with a fresh but robust discussion on the use of the fuel levy funding mechanism leading to a better funding model with national support from all concerned and affected.

ENDS

PRESS RELEASE ISSUED ON BEHALF OF SAVRALA BY ADZOO. CONTACT LILI REES ON lili@adzoo.co.za or 011 462 0976.

e-toll engagement process an exercise in smoke and mirrors

Posted on 1 July 2011 by Administrator

01 JULY 2011 – SAVRALA PRESS RELEASE

According to SAVRALA, the Gauteng Freeway Improvement Project e-toll engagement process was an exercise in smoke and mirrors

The motoring industry and in particular the Southern African Vehicle Rental and Leasing Association (SAVRALA) and its members have been waiting with bated breath for yesterday’s engagement meeting with the Director General of Transport. Sadly, the announcement by Mr George Mahlalela on 30^th June of the recommended reduced toll fees and other measures was hugely disappointing.

Linda Kotze, President of SAVRALA, said that none of the real issues were addressed and that some of the more detailed and crucial concerns about both the administrative cost of the tolling system (estimated at R6,2billion over 5 years) and the real risk posed to the proposed income model through the lack of compliance by road users of the Gauteng Freeway Improvement Project (GFIP) remain unanswered. Kotze went on to say that neither the draft Steering Committee report published last week, nor the toll project reviews conducted by two leading accounting firms addressed the funding model risks presented if drivers did not actually pay their toll fees.

Kotze further commented that SAVRALA’s questions around the impact of an estimated traffic fine collection rate of 20%, as a proxy for e-toll compliance, may have a significant impact on the income model. These concerns remain unanswered and are of grave concern should the tolling model be implemented.

The announcement by the Director General of an independent regulator to oversee, for example, tolling fares and the setting up of a formal structure for stakeholders to more directly and regularly engage with the Department of Transport, is welcome and a positive development.

SAVRALA has always welcomed the much overdue GFIP improvements and is willing to pay for these but remains unmoved by the arguments given to date by the ORT Steering Committee and National Treasury – which disregard the merits of the fuel levy as a collection method for road improvements.

The ORT Steering Committee Draft Report (page 26) makes reference to and discounts ring fencing, on the basis that it is not National Treasury policy and ‘brings about inefficiencies in government spending over time as the lack of transparency means that agencies lose the accountability of the budget process for how effectively they apply the funds’. As far as SAVRALA is concerned, these reasons would appear to be selective in application as the National Treasury already annually funds various Provincial, National and Local authorities with billions of Rands for road upgrades and maintenance. SAVRALA feels that the road users and SAVRALA members are entitled to an adequate and transparent explanation of why ring fencing works for the RAF (Road Accident Fund) and, more recently, the fuel pipeline.

In addition, the ‘user-pay’ methodology is being selectively applied to the high volume commuter routes as an ‘urban toll’ in Gauteng and not as a consistent methodology across all road infrastructure projects.

In their draft report, the ORT Steering Committee has also ‘recognised the need for a holistic approach to the GFIP and therefore the public transport transformation work stream will continue as a longer term work stream to assist in the identified interventions’. SAVRALA openly welcomes the focus on an integrated public transport plan, but would like these solutions in place thereby offering commuters a truly safe and reliable alternative to their private vehicles before urban tolling is again considered.

SAVRALA remains concerned that many of the tolling implementation risks and concerns have not been adequately addressed by the ORT Steering Committee. SAVRALA remains committed to working with the Department of Transport and any stakeholder or road user to ensure that an efficient, effective and fair road funding methodology is developed.

ENDS

PRESS RELEASE ISSUED ON BEHALF OF SAVRALA BY ADZOO. CONTACT LILI REES ON lili@adzoo.co.za or 011 462 0976.

SAVRALA presents fuel levy as part of ORT funding

Posted on 29 March 2011 by Administrator

On Thursday 24th March 2011, the ORT Steering Committee started public consultations in Midrand. During its presentation, the Southern African Vehicle Rental and Leasing Association (SAVRALA) highlighted the significant ORT admin costs required in contrast to those of the fuel levy. Although it welcomes the new road and interchange upgrades; as the representative body of over 450,000 vehicles SAVRALA is “very concerned about ORT’s direct and secondary admin costs” associated with the management of tags, moving vehicles between locations and the necessary back office systems needed to support billing and customer queries.

Highlighting that the ETC tender of R6.2bn included R4.7bn for operational costs over eight years, SAVRALA’s view is that these could largely be saved by using the Fuel Levy mechanism. The current ORT eTag model also places significant administration costs on businesses which will have to be passed on to customers. SAVRALA estimates that an average car rental customer may have to pay an extra R32 per day in tolls, representing 10% of the average car rental daily rate. Leasing customers could also expect an increase of up to 33% in their cents per kilometer costs.

In proposing other revenue opportunities to help fund capital infrastructural projects which have a national multiplier impact like the GFIP, the economic loss due to accidents at over 3% of GDP has to be reversed and SAVRALA has called for “urgent real road safety enforcement by all stakeholders.” While the estimated 300,000 unregistered vehicles also presented an opportunity for increased license fees, SAVRALA proposed the “re-introduction of compulsory third party insurance” as one of several tools to try and change driver behaviour.

Just like many of the other business associations presenting to the ORT Steering Committee – more notably BUSA, AA, RFA and RMI – SAVRALA is concerned at both the lack of transparency surrounding the SANRAL ORT funding model and the absence of an appropriate platform for transport-related associations to engage effectively with the Department of Transport. In contrast to the developments at SARS, AARTO was quoted as an example of legislation that, from an administrative perspective, is not designed adequately to accommodate some basic technological opportunities which would reduce the current manual process. A closer working relationship would help make future transport related legislation more practical.

SAVRALA, while continuing to engage with SANRAL, have declared a dispute regarding payment terms. SANRAL have demanded that settlement for toll transactions for Key Account Holders be within seven days, failing which interest will be levied on outstanding balances. SAVRALA has received a mandate from their members calling for the generally-accepted business terms of 30 days.

Commenting on the presentation proceedings and the progressive alliance developing between the various transport associations, SAVRALA President Linda Kotze said: “This is hopefully the first step of many in a meaningful and transparent engagement process with both the Department of Transport and SANRAL. The ORT concern has actually had the effect of pulling us all together and it was very impressive to note that at our preparatory meeting earlier in the month, over 4 million vehicles in greater Gauteng were represented. We will now be heard.”

PRESS RELEASE ISSUED ON BEHALF OF SAVRALA BY ADZOO. CONTACT LILI REES ON lili@adzoo.co.za

SAVRALA Golf Day puts a little Sunshine into special kids’ lives

Posted on 16 February 2011 by Administrator

SAVRALA’s first major event of 2011, our annual golf day in aid of The Sunshine Association, took place on the 16th of February at the Johannesburg Country Club in Woodmead.

Since its inception in 1976, The Sunshine Association, in partnership with families and communities, has been committed to the inclusion and advancement of children with intellectual, developmental and physical disabilities and delays.

Sharing smiles with the Sunshine Kids.

Today The Sunshine Association is a dynamic, progressive and innovative Non-Profit organisation in the field of intellectual disability, offering diverse services in direct response to needs identified in communities. What makes this organisation different – other than its obvious passion for children with intellectual disabilities – is a holistic approach and dedicated staff compliment who go out of their way to better understand and service the special needs of these very special children. The Association works hand-in-hand with families and communities, teaching them how to cope, manage and understand the unique challenges that are part and parcel of raising a disabled child. The sad reality is that in South Africa, thousands of disabled children are excluded from social services because communities are unable to cater for children with special needs. For the past 35 years, The Sunshine Association has, through their passionate approach to care giving ensured that these exceptional children are not marginalised but are successfully integrated into families and communities.

With over 124 players participating, the day was a phenomenal success – both on and off the course! Unfortunately the weather was below par, lightening called the game early which meant that prize giving began sooner than expected. MC Andre Watson was highly entertaining, keeping us all enthralled with his stories. Competition was tight but at the end of the day the Ford team of Hugo Delport, Burger Genis, Peter Sunker and Connie Arjoona took third place; second place went to the Hertz team of Mark Raubenheimer, Mike Martin, Roy Lynn and Brent Wilkins, while first place was claimed by the Ford team of Rodney Boy, Charles Naidoo, Mike McCullam and Shane Marais. Well done to you all on some sterling performances!

First place was claimed by the Ford team of Rodney Boy, Charles Naidoo, Mike McCullam and Shane Marais.

Once again, member companies rose to the occasion and there was no shortage of sponsorship in the form of donated prizes and sponsored holes. Special thanks must go to Nissan who were awarded the prize for Best Sponsored Hole. These guys went out of their way to raise as much money as was possible, with Derek Menday winning a Nissan 370 Z for a weekend. On behalf of The Sunshine Association, we salute Nissan for their efforts.

All in all, this contributed to making the day a resounding success, raising a substantial donation for The Sunshine Association. As always, SAVRALA is delighted at the spirit in which members rallied behind this wonderful occasion, given that we are all busy people battling to survive in tough economic times.

SAVRALA extends its thanks and gratitude to the generous sponsors who hosted various holes on the course – a big thank you for contributing to the fun and festivities. Your enthusiasm was greatly appreciated and very infectious!

A special thank you must also go out to the following for their generous sponsorship of gifts and prizes: Ford, Volkswagen, Nissan, Toyota, Hyundai, Tata, Renault, and Avis Fleet Services.

Linda Kotze and Jonathan Odes hand the Sunshine Association, the charity that SAVRALA has supported for the past 3 years, the healthy sum of R 100 000, 00 during a very emotionally charged hand-over ceremony.