Transport Minister Barbara Creecy has suggested that long-term road maintenance costs may be funded through more widespread tolling.
This was mentioned during the Transport Department’s R102 billion budget vote tabling earlier this week.
The minister noted that the South African National Roads Agency (SANRAL) is expected to receive almost R31 billion this year to maintain, rehabilitate, upgrade and expand the road network.
These funds will be used for capital expenditure on the non-toll network, including the Gauteng Freeway Improvement operations and the N2 Wild Coast route for ongoing construction on major bridges.
Further allocations will be used for new road sections on the country’s national highways, alongside the development of the Moloto Road corridor connecting Gauteng, Mpumalanga, and Limpopo.
“Of course, we are not operating in an environment of our choosing. The geopolitical and economic environment in which we operate is filled with rapidly shifting challenges,” the minister admitted.
These challenges can be found at provincial and municipal levels, and include inadequate funding and in-house technical capacity for road maintenance, which forced SANRAL to take over maintenance responsibility.
“Since 2013, provincial governments have transferred 13,000 kilometres of provincial roads to SANRAL for management and maintenance,” the minister explained.
“This is not a sustainable long-term strategy and will ultimately impact SANRAL’s ability to maintain the national road network without introducing widespread tolling.”
Creecy shared no further details on what this “widespread tolling” would entail, whether that be increasing toll fees on national roads or the introduction of new toll routes and gates.
The minister did say that there are plans to address this issue, as the government plans to convene a joint meeting between the National Treasury and the Department of Transport through the Minister and MECs forum.
This forum will explore mechanisms to frontload the Provincial Road Maintenance Grant, enabling provinces to upgrade priority roads sooner.
Department reviewing the Road Accident Fund
During the budget tabling, Minister Creecy also noted that her department is currently reviewing the Road Accident Fund’s funding structures.
The RAF is the entity responsible for compensating and rehabilitating individuals who have been injured in motor vehicle accidents or on South Africa’s roads.
However, it continues to face mounting pressure resulting from a growing backlog of claims, legal challenges and severe financial constraints.
“The Road Accident Fund portion of the fuel levy has come under public scrutiny,” admitted Minister Creecy.
“The department is already reviewing the proposed Road Accident Bill to reduce contingent state liability by creating a no-fault system and a standardised injury compensation system.”
She added that the department has already begun researching options for a hybrid funding model that will include private and public contributions to lessen the burden on the fiscus going forward.
A recent ruling by the Supreme Court of Appeal (SCA) against the RAF declared key changes to the RAF’s claims process unlawful, including its stricter requirements that led to the rejection of several claims.
The court ruled that both the entity and the Transport Minister acted outside their legal powers when introducing new requirements to the RAF1 claim form – the mandatory gateway for compensation claims.
It was found that the RAF imposed additional administrative hurdles that made it harder for victims to access compensation.
The SCA ruled that this undermines the purpose of the RAF Act, which is to support road accident victims.
Kirstie Haslam, a Partner at DSC Attorneys, explained that the real impact of the judgment will now be felt by claimants caught in the system over the past few years.
“This is a significant legal victory for claimants, but it creates a complex and potentially chaotic situation on the ground,” she said.
“Many claims that were rejected under the unlawful requirements may now need to be re-lodged, effectively restarting the process.”
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