ANC hints at lower e-tolls

The Gauteng treasury is prepared to pay off the debt incurred by the R20-billion Highway Improvement Project - known to motorists as the instigator of e-tolling.

In the provincial budget she tabled , Gauteng finance MEC Barbara Creecy hinted that the provincial treasury would pay what was needed to keep the e-tolling system running.

Creecy noted that Premier David Makhura 's advisory panel on e-tolling had recommended a hybrid model for funding provincial roads maintenance and development. The new model would recognise the " user pays" principle but would incorporate financial contributions by the national and provincial governments "to ease the financial burden on motorists".

Said Creecy: "Once the intergovernmental team has completed its work, we will include a provincial contribution towards meeting the costs in the provincial adjustment appropriation later this year."

During his State of the Province speech last week Makhura asked the people of Gauteng to wait for Deputy President Cyril Ramaphosa's committee to complete its inquiry into e-tolling.

Finance Minister Nhlanhla Nene said last week: "Concerns regarding the socioeconomic impact of [e-tolling] tariffs have been heard and revised monthly ceilings will shortly be proposed.

"We will include a national contribution to meeting the associated cost in the adjustments appropriation later this year.

"Measures will also be taken to ease compliance and improve enforcement.

"But cost recovery from road-users will continue to be the principal financing mechanism."

Makhura's review panel on e-tolling found that the system was unaffordable, inequitable, cumbersome and placed a disproportionate burden on low-and-middle income households.

At its elective conference in October, the ANC in Gauteng rejected e-tolling.

It said that the strength of the economy of Gauteng benefited the whole country and e-tolls were a burden on its growth.

It proposed that SA Revenue Service impose an additional fuel levy in place of e-tolls.

In the national elections last year the ANC's support in Gauteng fell by over 9%, the drop partly blamed on e-tolls outrage.

Cosatu warned the ANC that the implementation of e-tolling in the province would be detrimental to the ruling party and called for the system to be scrapped.