ANC Today --------------------------------------------------------------------- Volume 8, No. 40, 10-16 October 2008 --------------------------------------------------------------------- THIS WEEK: * Public transport strategy: A plan to keep South Africa moving * Fifteen Year Review: Building on what we have achieved --------------------------------------------------------------------- PUBLIC TRANSPORT STRATEGY A plan to keep South Africa moving Many people using our roads in recent times may have observed much work being done on our roads and wondered what informs such massive work. This work may have temporarily inconvenienced motorists in various ways. However, we must put into context the broader picture of what we seek to accomplish through the ongoing construction work. This is in line with our broad infrastructure development and investment, partly informed by the 2010 FIFA World Cup, and partly informed by the legacy we want left behind after the tournament to serve the growing needs of our people. One of the challenges facing our growing economy is to open up those bottlenecks in a manner that seeks to simultaneously maximise benefits to our people with regards to service delivery and contribute towards employment creation. The ANC government considers transport to be the heartbeat of our economy, hence the contribution of the public transport sector to the economic growth of the country and meeting the various needs of our people cannot be overemphasised. It is for this reason that we consider it important to share with our people concrete information on what is being done to improve the lives of all our people. In October 2006 the Department of Transport released a draft Public Transport Strategy for public consultation which was later approved by Cabinet in March 2007. The main thrust of the strategy was to improve our public transport by focusing on public transport modal upgrade as well as establishing Integrated Rapid Public Transport Networks (IRPTN), through Priority Rail Corridors, and Bus Rapid Transit in major cities. In developing our strategy we had to consult various stakeholders such as the taxi, bus and rail sectors; commuter representative bodies; organisations representing people with disabilities; provincial departments of transport; metropolitan municipalities; the South African Local Government Association; and labour unions The essential feature of our strategy has been a phased extension of mode-based vehicle recapitalisation into Integrated Rapid Public Transport Networks, comprising of a package of Rapid Rail, Bus Rapid Transit (BRT), minibus taxis and metered taxi priority networks, especially in major cities. The main pillar of our strategy is our Public Transport Action Plan, which has three phases of implementation over a period 13 years, from 2007 to 2020. The first phase started last year and will continue until 2010 with specific focus on the initial development of high quality, integrated rapid public transport networks (IRPTNs) in at least 12 cities and 6 rural districts. This phase also means that the public transport operation must include all modes playing a meaningful and complementary role on the network, including the participation of smaller buses, taxis, and metered taxis to form part of the mainstream public transport system, supported by appropriate pedestrian, cycling and park and ride facilities. The public transport service will also have high frequencies of around five minutes in the peak period along trunk corridors as well as 16-24 hour operations. The second phase of our Action Plan focuses mainly on expansion and enhancement of the passenger transport system from 2010 to 2015. The third and final phase will significantly expand and transform public transport through large-scale implementation across the whole country from 2014 to 2020. Much progress has been made towards ensuring that our public transport system is ready for the 2010 Soccer World Cup. Among the highlights is the progress we have made with the first phase of our Action Plan through specific catalytic projects that are intended to create the platform for a nationwide rollout of fully accessible networks in cities and districts - as well as with current nationwide rollout of "Accelerated Modal Recovery" interventions involving the 3-7 year modal transformation plans such as the Taxi Recapitalisation Plan, Passenger Rail Plan and the Commuter Bus Transformation Plan. In this regard, the cities have already considered their Phase 1 Network concepts on maximising alignment with 2010 Legacy Projects. To date, an amount of R13.6bn has been allocated specifically for the 2010 public transport infrastructure projects is being utilised and significant progress has been achieved in planning and implementing Phase 1 of the Public Transport Networks in major cities. This includes operational, business and infrastructure planning in Johannesburg, Cape Town, Tshwane and Nelson Mandela Metro. These four pioneering cities will have catalytic Phase 1 Bus Rapid Transit projects fully operational in late 2009/early 2010. Fast bus networks Johannesburg and the Nelson Mandela Metro have already started construction of certain portions of their BRT networks. Tshwane and Cape Town are due to commence construction soon. Motorists and passengers can easily see the work being done on major freeways around Gauteng as well as in other provinces. This reflects on the huge investments we are making to improve our roads, create jobs and enhance further economic activities through improved infrastructure. Some of the features of the Phase 1 catalytic projects include: * Johannesburg's Phase 1 BRT linking Soweto and Nasrec to the CBD and Ellis Park and to Sandton and Alexandra. * Nelson Mandela Metro's system will link Motherwell and New Brighton with the CBD and the suburbs. * Tshwane's Phase 1 will link Mamelodi, Soshanguve and Mabopane to the CBD and Menlyn and the 2010 Phase 1a component will link Belle Ombre Station and the CBD to Loftus Versveld and Hatfield. * Cape Town's project will provide rapid transit services within the inner city and to the Airport and the West Coast. We have also begun to work with cities such as Ethekwini, Ekurhuleni, Buffalo City, Polokwane, Mangaung and Mbombela for the development of Phase 1 network operational plans. They are due to complete their BRT Plans in 2009, developing networks and contracting BRT Operators in 2010 and commencing network operations in 2011. The initiatives on the strategic thrust of modal upgrading have also commenced and are progressing very well including the taxi recapitalisation programme, accelerated rolling stock refurbishment programme for commuter rail and the transformation of the bus industry. The first phase of the Taxi Recap started in October 2006 with the establishment of the scrapping administrative agency. The physical scrapping of taxis is well on track with 19593 old taxis already scrapped and having paid R978m scrapping allowance. Our target is to ensure that we recapitalise 80% taxis by 2010. We have also made significant progress in developing the regulatory framework for the taxi industry. I'm delighted to announce that most Provinces are done with the processing of the application for operating licenses. The Operating Licensing Boards have already approved more than 90 000 operating licenses out of 118 000 applications. We believe that this process will bring to an end the destructive competition that has continued to stigmatise the taxi industry. Over and above the scrapping process and the regulatory framework, we will be approaching Cabinet in the next Cabinet cycle for the approval of: A funding strategy to address the acceleration of the TRP and the increase in the scrapping allowance. A taxi subsidy framework that proposes the scope for a taxi specific subsidy. A strategy towards lifting the moratorium on new operating licenses and a turnaround strategy to improve service delivery of operating licensing boards. We believe that all these initiatives will completely transform the face of the taxi industry into a main player within the integrated transport networks. We have also taken drastic measures to transform the bus industry by introducing a competitive tender system thereby moving away from the entitlement to bus operations that has badly damaged the bus service. All the bus operators are now required to enter into interim contracts with government, especially those who fall under the government subsidy scheme. Bus companies are also compelled to sub-contract a maximum of 10% buses to SMME businesses - in order to ensure an increase in a number of black people who own and control bus companies. Currently, R2.8bn per annum is paid in subsidies for bus services and a process of transforming the subsidies in line with the public transport strategy has commenced - with new designs for Cape Town; Nelson Mandela Bay; KwaDukuza and Maluti already completed. Funding for these new services will be available in the 2009/2010. Other services are still in the design process and will be budgeted for in the 2010/2011 financial year. This integrated public transport approach will also allow the minibus taxi operators to establish joint operating entities with bus operators in order to actively participate in the new integrated networks. We are looking at the scenario where taxi operators will become public transport operators instead of being taxi operators. Travel by rail The rail sector also responded with great enthusiasm to opportunities presented by the Public Transport Strategy with the Cabinet approval of the National Passenger Rail Plan - which gives emphasis on Priority Rail Corridors for mass movement of our people. As a starting point, we had to eradicate the fragmentation of the institutional framework that governs SARCC, Metrorail and Shosholoza Meyl through the consolidation of these three services to provide a streamlined all-inclusive rail commuter and long-distance passenger service. We have committed R 18bn over the next 3 years through the Rail Plan to improve our passenger rail system. A large portion of this fund has already been committed by the SARCC to upgrade 2,000 of its 4,600 coaches around the country. The SARCC has begun to invest over R8bn on its rolling stock investment programme. This delivery of coaches is aimed at improving train availability nationally to 96% of the current fleet by 2010. The amount of R2bn is already being used for the improvement of the rail infrastructure, signalling and track maintenance. We expect this to improve on punctuality levels, reliability, reduce train cancellations and delays as well as reduce overcrowding. Major contracts of 3-5 years have been entered with all the rolling stock suppliers such the Union Carriage Wagons. Already, in the 2007/2008 financial year 489 coaches were refurbished and 700 will be done in 2008/9 and 800 for 2009/10. We believe that our set target of peak frequencies of 5 to 10 minutes particularly for rail service cannot be achieved without these proper investments in the rolling stock. Our plan is to ensure that by 2010, there is a train available every five minutes during peak periods. We also want to ensure that train services are available for at least 14-16 hours a day. Beyond 2010 the new coaches will have to be brought into service to ensure the sustainability and attractiveness of commuter rail. Currently the various funding models for new coach fleet are being investigated particularly considering private sector participation in the financing of rolling stock. These improvements are not only taking place in the rail infrastructure and rolling stock side. We have also re-introduced the railway police in our rail environment to deal with criminal activities. The South African Police Services has already deployed 1,700 constables in our trains and stations. The main target remains the deployment of 5,000 members by 2010. Since the re-introduction of the railway police we have seen a significant drop in criminal activities by 34%, with 28% decrease in fare evasion. And in 2006/07 financial year alone, the Railway Police made 28,000 arrests, of which 9000 were for serious crimes. Our public transport strategy has strongly pronounced as a national policy principle, the need for maximum inclusion of existing operators and workers who are affected by the new Integrated Networks. This means that ANC government must ensure that all legal operators and their workers will be incorporated in the new BRT Operating Companies. Operators will be assisted to form appropriate business entities which will enter into negotiated, performance-based contracts with the Network Authority. Operators who cannot be accommodated in the BRT Operating Companies will be paid fair compensation for the loss of their business rights. The minibus taxi industry will be fully involved in the enterprise and that no existing operator will be prejudiced in any way. The Transport Department will convene a workshop with National Taxi and Bus industry structures to co-ordinate the incorporation of existing operators into integrated Networks and also define the role of the national and provincial operator bodies. Our Action Plan proposes the establishment of an institutional framework to ensure sustainable implementation of our Public Transport strategy. In particular, there will be a phased establishment of network management entities to plan, manage and regulate the Integrated Networks. We are now fast-tracking the establishment of these entities in a form of transport authorities at the municipal level. Their duty will be to plan the network and services and to contract services from the BRT Operators. The City of Johannesburg has already established a full time project team and the City of Cape Town is currently undertaking that task. The Project teams will evolve to become the Network Authority which will contract operators and other service providers. This initiative has also influenced the drafting of the new National Land Transport Bill, which is currently before parliament. The new bill will enable the devolution of the public transport responsibility to the lowest competent sphere of government and the preparation of transport plans to guide the development of integrated public transport systems at a local level. We would like to believe that our Public Transport Strategy will completely overhaul the public transport sector for the better. But it requires a concerted effort from all of us to build a last legacy beyond 2010 long after the last goal is scored. ** Jeff Radebe is a member of the ANC National Executive Committee (NEC) and Minister of Transport. --------------------------------------------------------------------- FIFTEEN YEAR REVIEW Building on what we have achieved The ANC government recently released a Toward a Fifteen Year Review, an assessment of the impact of its programmes in relation to set targets, with a focus on the 2004 Election Manifesto and the 2004-2009 Medium Term Strategic Framework. Through the review the ANC government is taking stock of how far it has gone in achieving the objective of improving the quality of life of all South Africans. The review assesses progress since the attainment of democracy. Through transformed institutions and new polices, the ANC government sought to align the country's development with the new democratic Constitution, dealing with the legacy of apartheid and integrating the country in a challenging global environment. The review brings particular focus to the past five years, building on conclusions of Towards a Ten Year Review, published in 2003. The instruments of analysis have been sharpened by the refinement of a set of Development Indicators which provides government and the public with a framework for tracking movement towards the country's development objectives. It draws on a wide range of research, within government and by outside experts and organisations. It uses the cumulative body of information produced by the regular reporting of government agencies as well as research especially commissioned for the review or for other current initiatives. Towards a Fifteen Year Review is not only about taking stock of progress. For instance, it acknowledges areas such as weakening value system, increasing inequalities, high youth unemployment, poor quality of social services and economic exclusion as those that require serious and urgent attention. The Review admits that progress made, though commendable, is not sufficient. It is equally about identifying shortcomings and challenges, the better to contribute to initiatives aimed at further improving the country's development efforts. It also takes into account new socio-economic trends, emanating from the transition, which imply some modification of trends observed in the Ten Year Review. The trends in question relate to household unbundling, persistence of two economies and internal migration which is compounded by cross-border migration. The review takes a detailed look at the impact of government activities across the different clusters of government, including the special programmes and policies aimed at meeting the needs of women, children, persons with disabilities and young people. The picture it reveals combines progress with persisting and new challenges. It takes into account major trends in our society and internationally, such as: changes in household size and structure; growth in the economically active population; migration; structural unemployment; social cohesion; inequality; state legitimacy; national leadership and social partnership; and the global context. The main finding of the review is that, as we enter fifteen years of democracy, much has been done to eradicate the legacy of apartheid and build a new, just society; and that the foundations laid in the first ten years together with new initiatives since 2004 have enabled SA to notch up to a faster rate of growth and development. However, the report says that this is not yet enough: the challenges identified five years ago have in the main proved more deep-seated than was recognised; and success has brought new challenges. The state has had to learn new ways of doing things as it implemented, but may not always have been decisive and flexible enough. The global environment is less favourable than expected. Major trends in our society and beyond shape the terrain in which the state acts and affect the possibilities of what can be achieved. The review therefore revisits the socio-economic trends identified at the end of the first decade of freedom, and looks at new socio-economic dynamics. These include such matters as the unbundling of households, growth in the economically active population, migration, structural unemployment, social cohesion, inequality, legitimacy of the state, national leadership and social partnership, the global context and the evolving domestic and international policy context. The review suggests that there is such a possibility, but that it depends on a number of conditions, including the agency of various social actors. Success will require a decisive state with higher levels of legitimacy, and a more cohesive society, together prepared to pursue a common vision and make the necessary adaptations and choices between priorities when the need arises. Building democracy In the governance sphere there has been great progress in democratic transformation of the state, in building institutions and systems, including innovative platforms for citizen participation. Much has been done to improve co-ordination in government and to create a legislative and policy framework for good governance. In the social sphere there has been substantial overall improvement in people's lives through mainly well-targeted programmes to reduce poverty with regard to income, access to social services, and to assets like housing and land. In many dimensions, ANC government has been instrumental in improving the lives of women, children, people with disabilities and youth. Legislation and institutional machinery puts government on track to meeting most of its constitutional obligations regarding vulnerable groups. The households' headcount poverty rate at an arbitrary poverty line of R322 a month declined by five percentage points, from 53% in 1995 to 48% in 2005. At a lower poverty line of R174 a relatively similar decline in poverty was registered as income poverty declined by eight percentage points from about 31% to 23%. However poverty is still a big challenge. Despite reduced income poverty and faster growth, income inequalities did not decrease and in some respects it increased. Among many households the continuing weaknesses and inequalities in human and social capabilities reproduces the cycle of poverty and dependency. But persistent inequalities reduce the impact of state action to reduce vulnerabilities especially regarding employment and violence. Employment of persons with disabilities in public and private sectors is less than it should be. Improving state capacity requires attention to skills, standards, systems and institutions rather than just more resources. The trend of local protests indicates shortcomings in actual practice in participation platforms. The ANC government response to the experience of implementing the 2004 mandate has included some major mainly crosscutting initiatives in the past few years. Integrative interventions such as AsgiSA, Joint Initiative for Priority Skills Acquisition (JIPSA), integrated crime strategy and revamp of the criminal justice system, and better alignment of planning and mandate. In the economic sphere, the review demonstrates that the growth of our gross domestic product has averaged around 5% and that of gross domestic product per capita at 4% during 2004 and 2007. The rate of unemployment continues to decline, estimated at 23% in 2007 compared to almost 40% in the beginning of 2000s. Successful policy evolution in a changing environment has seen the country achieve and sustain macro-economic stability creating the climate for faster job-creating growth and economic reform. The current confluence of negative indicators shows a need for faster removal of constraints to growth. Insufficient social partnership has limited the impact of polices. There is need for more attention to economic inclusion and for second economy interventions with mass impact rather than many small ones. The Justice, Crime Prevention and Security cluster's polices and priorities are having an impact and are appropriate to the challenges. But the challenges have proved more difficult to deal with than anticipated, especially with regard to violent and organised crime and the need for integrated strategising and action across the criminal justice system. Mobilisation of society to participate in fighting crime has been less than required and crime is impacting on other area of social endeavour the rule of law, the economy, public morale, and social cohesion. Based on the review findings about the impact of the state and national and global trends, it argues that whatever is done going forward, the main elements of strategy would need to revolve around some core ideas: speeding up growth and transforming the economy; fighting poverty; building social cohesion and state legitimacy; international co-operation; and building an effective developmental state. Towards the future In looking towards the future the review identifies broad strategic thrusts rather than detailed programmes. It shows progress combined with persistent or new challenges. Whatever is done going forward, the main elements of strategy would need to revolve around some core ideas. Faster and shared growth is essential for reducing unemployment and poverty. In turn, the country's productive capacity needs to be improved so we can grow faster, absorb more labour including people with less skill, ensure competition, increase exports and ensure thriving conditions for small and micro-enterprises. There is also a need to develop second economy programmes that have a mass impact. There will be a need to take account of a shift in the cost of energy and to protecting the environment. Measures to overcome poverty are central to the comprehensive anti poverty strategy that government is developing. Reducing unemployment is the key antipoverty measure. It requires removing whatever barriers are responsible for the country having a weak, small business sector and many able bodied people discouraged from seeking work. Fighting poverty requires a special effort towards increasing people's chances of entering the labour market and/or setting up their own businesses. Education has enormous potential to break the cycle of poverty. Ensuring a harmonious society requires a reduction in inequality, through access to economic opportunities for all, better outcomes in education and skills training, and sustaining pro-poor government spending. Key to social cohesion are strong and legitimate public institutions. That requires better service by the state, improved platforms for public participation and reducing crime and corruption. Similarly, society has the responsibility to respect and protect the legitimacy and authority of state institutions. Building a cohesive society also requires the promotion of solidarity and caring among all South Africans rather than the values of individualism. State and society need to work together in developing a new value system. Much work has been done to strengthen partnerships across the world, especially in Africa and the South. This needs to continue, still prioritising Africa and the countries of the South while maintaining relationships with industrialised countries. Strengthening strategic partnerships and the deployment of resources to advance African development will help advance our national interests. To do the things outlined above, the state would need to: * be people centred and people driven; * lead mobilisation of all sectors of society towards a common national agenda; * implement programmes effectively and ensure that it has the right structures and systems for coordinated action; * translate the broad goals and objectives in the Constitution and the electoral mandate into practical programmes and projects; and * have stronger platforms for more regular interaction between citizens and their public representatives. Achieving these broad elements of strategic posture will require specific initiatives and programmes as well as institutional changes and improvements. The concluding section of the review provides a list for consideration of a range of programmatic elements that can be implemented in various packages and sequenced in various ways depending on particular policy choices. The experience of those developing countries which have achieved accelerated development in similarly challenging circumstances, emphasises that whilst all the initiatives and programmes would be critical in moving the country towards faster growth and development, success will require focus on a few catalytic initiatives as strategic priorities. The review concludes with a choice to continue along a path that ensures some progress but barely dents the structural ills that have prevented the country moving as fast as it could. Or to achieve a big push based on a broad national consensus that drives the totality of national endeavours towards even better social impact. The latter would depend on a number of conditions including the agency of various social actors. The ANC and its government encourage social partners and citizens at large not only to articulate their own views on these critical matters, but also to assess the impact of their own activities on social dynamics within our nation. We all hope that the Fifteen Year Review will initiate a public debate and cohesion on all these issues. By building on what we have achieved, by acknowledging our shortcomings, by learning from experience - we will be able to make even further progress in improving the lives of our people. MORE INFORMATION: Towards a Fifteen Year Review http://www.info.gov.za/speeches/2008/08100113451001.htm --------------------------------------------------------------------- This issue of ANC Today is available from the ANC web site at: http://www.anc.org.za/ancdocs/anctoday/2008/at40.htm To receive ANC Today free of charge by e-mail each week go to: http://www.anc.org.za/ancdocs/anctoday/subscribe.html To unsubscribe yourself from the ANC Today mailing list go to: http://www.anc.org.za/show.php?doc=lists/anctoday.htm