In this episode of Eusebius on TimesLIVE, the Road Accident Fund (RAF) and the Automobile Association (AA) are represented in a discussion about the fund, including whether the levy it receives is optimally used.
Join the debate:
CEO of the RAF Collins Letsoalo argues that the portion of the levy that goes to the fund is not a dominant driver of the cost of fuel in SA. He cites externalities such as geopolitical factors in Europe and the strength of the rand in relation to the dollar pricing of oil as bigger cost drivers.
The AA’s Layton Beard agrees, but argues that, nevertheless, just as a reduction in the general fuel levy mitigated against externalities in recent months, so too one should not minimise what a lower RAF levy could mean for consumers.
The biggest disagreement between these interlocutors, however, relates to the management and running of the RAF. The AA believes urgent private-sector expertise is needed to improve the performance of the RAF. The fund criticises the AA’s view as one that assumes the private sector is a “panacea” for all ills.
There is also a discussion between the bodies about whether state-owned entities (SOEs) do enough to drive down fatalities on the roads. While both agree South Africans are insufficiently law-abiding, there is vigorous disagreement about the extent to which human behaviour, rather than the state of the country's roads, accounts for accidents.
To listen to previous episodes, go here.
Subscribe for free future episodes: iono.fm, Spotify, Google Play, Apple Podcasts, Player.fm, Pocket Cast
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.