Tolls will harm economy: Sasbo

The Gauteng tolling system will have multiple effects on the inflation rate and the broader economy, Sasbo finance union says.

"The increase in logistics costs will reduce our economy's competitiveness as most goods are transported by road through Gauteng," said Shaun Oelschig, Sasbo's general secretary.

He said business operational costs would increase and there was no doubt that the added cost would be passed on to the consumer.

"The effects will be felt by all and even more so by the poor, as basic food stuff prices will also increase as a result."

He said the cost of maintaining the toll system, distributing etags, the policing of the system and the reconciling of charges would also be passed on to the consumer.

On Tuesday, the ministry of transport said planned tolling of roads in the country remained suspended.

Transport Minister Sibusiso Ndebele ordered a halt to all road project processes related to the tolling of national roads on October 23.

Spokesman Tiyani Rikhotso said the suspension included the planned phase 2 of the Gauteng Freeway Improvement Plan (GFIP), the Cape Winelands, and the Wild Coast.

"With regard to GFIP, it is important to note that there's a clear distinction or separation between phase 1 [almost completed] and phase 2 [no work has started as yet]," he said.

"The GFIP phase 1 is almost complete and we would like to hear alternative views from the public on the best possible model of financing the debt incurred.

"It is not only objections that we received; there are also proposals on how best to service the cost," Rikhotso said.

"We cannot say therefore come rain or shine in February, the SA National Roads Agency Limited [Sanral] will go live with the e-toll system; we will also want to be guided by the outcome of the consultation process."