http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.31Change: -0.10
R/$ = 11.11Change: -0.04
Au 1222.76 $/ozChange: 5.50
Pt 1335.00 $/ozChange: 3.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 15, 2012

Constitutional Court asked to set aside Gauteng e-toll interdict

Back
Africa|Lighting|PROJECT|Resources|Road|Roads|South African National Roads Agency Limited|System|Africa|South Africa|Constitutional Court|E-tolling|Energy|Transport|Bill Prinsloo
Africa|Lighting|PROJECT|Resources|Road|Roads|System|Africa|||Energy|Transport|
africa-company|lighting|project|resources|road|roads|south-african-national-roads-agency-limited|system|africa|south-africa|constitutional-court-facility|e-tolling|energy|transport-industry-term|bill-prinsloo
© Reuse this



The National Treasury, along with the South African National Roads Agency Limited (Sanral) on Wednesday moved to have the temporary interdict, restraining the tolling of some of Gauteng's freeways, set aside in the Constitutional Court until the full review of the system in November.

Attorneys representing the parties reiterated that the interdict, brought against Sanral by the Opposition to Urban Tolling Alliance (Outa) and handed down by North Gauteng High Court Judge Bill Prinsloo in April, placed pressure on Sanral's ability to meet the debts incurred during the upgrading of Gauteng's highway and caused irreparable harm to the company.

Outa sought an interdict while challenging Sanral's funding model, in efforts to resolve issues surrounding the way in which the agency would collect the toll fees on the highways making up the Gauteng Freeway Improvement Project (GFIP) and the costs related to the collection, before the system went live.

The National Treasury and Sanral stated that it was unrealistic to halt what was ready to generate revenue pending reviews and that the judge should have run scenarios outlining the harm that could actually be done to the opposing parties should the tolling start, as well as the damage Sanral could face if the tolling was halted.

In its appeal documents to the court, the National Treasury requested the court to determine whether the High Court applied the correct test in granting the interdict, as it believed that it was inconsistent with the separation of powers. Sanral believed that the court should have placed all its energy into pushing the review and declined the interdict.

The agency also reported that the suspension of the tolling of the upgraded highways also resulted in a Moody's downgrading of the agency, reputational harm for South Africa and obliged the government to relocate resources and revise public finances, leading government to reduce expenditure in other areas to offset the revenue loss.

However, Outa believed that, while there were consequences such as lost revenue and the possibility of the National Treasury having to find the funds to maintain Sanral's debt, the interim interdict was not causing the agency irrepairable harm or even more harm than any other standard interdicts ordered in other cases.

Outa stated that the interim order was not the reason for Sanral's harm, but that it was a number of external factors, including a lack of readiness to implement tolling seamlessly and requirements for amendments of related legislation, besides others.

Responding to questions by deputy chief justice Dikgang Moseneke surrounding Sanral's delayed implementation on four previous occasions, its legal team argued that, despite costing about R2.7-billion, the bulk of the suspensions were to ensure sufficient public participation and once owing to technical difficulties.

But Sanral's representative stated that, while the system may hold some imperfections, it was ready to go and could be generating revenue in the interim, particularly as the legal matters were not expected to be concluded before the end of 2012 and into late 2013.

Further, defending its stance on the user-pay model, Sanral noted that the implementation of a fuel levy or other alternative means of tax was inefficient as the funds meant for the maintenance of roads would compete with government's other social and economic expenditure responsibilities.

The agency noted that the implementation if a higher fuel levy, for example, would burden the country's economy, would raise transport costs, result in shifts in consumption and production choices, penalise those with less efficient vehicles and affect those in other regions that would not benefit from the use of the upgraded highways.

It was also stated that 94% of the e-tolling revenue was expected to be sourced from the 'top quintile of Gauteng income earners' and that a month-long dry run in June found that 91% of the users would pay less than R200 a month. Less than 0.2% may reach the R550 limit.

Sanral predicted a compliance rate of 93% and a recovery rate of 40% from noncompliant users, adding that it was addressing the manner on which 'deviants' would be dealt with to avoid the clogging of courts through enforcement. However, Sanral was confident that, generally, ordinary citizens would abide by the law.

The toll collections were estimated to cost about 25% of the overall cost of the project over a period of 25 years.

In its appeal affidavits, Sanral outlined that the GFIP would cost R71.4-billion over a 24-year period. This cost encompassed R20.6-billion for the repayment of initial capital costs, R10.6-billion for road maintenance, R6.2-billion for violation processing centre capital and operating expenditure, R12.2-billion for toll-related capital and operating expenses, R1.7-billion for other operational expenses such as freeway lighting and R20-billion for interest during the 24 years.

However, there was no way to determine whether this was unreasonable when compared with general economic improvements and social benefits, including skills and jobs.

The agency stressed that the opposition should have challenged the e-tolling approach while the project was still in its infancy, as the funding mechanism was an integral part of a project and delays in implementation when the project was complete were costly.

A Constitutional Court decision would follow.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 21 minutes ago The Standard Bank Group has been named one of the world’s greenest banks by Bloomberg Markets, ranked eighteenth out of 20 global finance institutions recognised for their investments in green-energy projects and efforts to reduce their own waste and carbon...
Updated 22 minutes ago The Department of Environmental Affairs (DEA) was considering establishing an air quality index, to make information on the quality of ambient air in South Africa more accessible, DEA national air quality officer Dr Thulie Mdluli said on Tuesday. She noted that the...
Patricia de Lille, PJ Rabie and Dominic Chennells
Updated 39 minutes ago In a boost for renewable energy, the City of Cape Town has signed its first small-scale embedded electricity generation contract with Black River Park Investments, an office park in Observatory.  The 74 000 m2 office park uses large-scale solar power systems to...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks