The Portfolio Committee on Transport on Friday called on the National Treasury to amend its current bus subsidies allocation formula to enable the public transport system to be sustainably transformed so that all modes of transport in South Africa are integrated.

The committee also asked the Treasury to inject the necessary funds needed to stabilise the system in the interim, as the Department of Transport (DoT) refines plans to integrate the public transport system.

There was a need to stabilise the operating environment in the short term to realise full integration in the long term, it said.

The comments emerged after the committee met with the DoT to consider recommendations on strategies to move towards a commuter-orientated public transport system.

“The month-to-month renewal of the bus subsidy contracts system is problematic to the operators, as they are unable to invest in new fleet and, thus, offer substandard services to the commuter,” the committee said in a statement.

The DoT had, over the past 14 years, managed subsidised bus contracts on a month-to-month basis.

DoT acting chief director for public transport, industry and development Lesiba Manamela, in a previous presentation to Parliament earlier this year, said the department needed more money if the plans were to become workable and sustainable and it had requested R1.7-billion from National Treasury.

Manamela noted that 67% of the budget went to interim contracts, which could not be monitored like the tendered or negotiated contracts, and the DoT was unable to hold operators accountable for underperformance.

As a result, the system became outdated in relation to routes, passenger volumes and passenger kilometres, leading to a state where public transport was “in distress”.

The performance of the taxi industry was also suboptimal in terms of integrated transport as the current subsidy system did not include it, although it transported about 70% of road passengers.

“While the committee recognises the huge pressure that the fiscus is facing, due to developmental needs within the country, as well as the worldwide economic downturn, the committee believes that transport remains the lifeblood of the economy and funding is necessary if the sector is to effectively play the central role of being the lifeblood of the economy,” the committee added.

To achieve full integration, which would involve the integration of currently unsubsidised buses, taxis and other bus companies, it was previously estimated that the DoT needed between R7-billion and R8-billion.