Department of Transport Medium term expenditure proposals 2003/2004 to 2005/2006 1 November 2002

Contents of Presentation Issues influencing the MTEF Key Strategic Objectives and Outputs Proposed structural changes Programmes and budget trends Options proposed

Issues influencing the MTEF Public Transport: (Bus, rail and taxi) Affordability, sustainability, accessibility, recapitalisation of ageing fleets & promotion of public transport over private transport Contractual & statutory commitments Safety issues relating to Transport Implementation of the NLTTA – NLSTF commitments Road Traffic Management Corporation: Entrenchment of the RTMC Transfer of functions to the RTMC

Issues influencing the MTEF Implementation of the Road to Safety Strategy Transport planning Establishment of a Railway Safety Regulator Establishment of a Road Traffic Infringement Agency / Implement AARTO Act Aviation & Maritime policy review Ports reform: Ports Authority and Regulator Rural transport: Planning, coordination and policy development Accessible transport policy development

Issues influencing the MTEF Capacity of the Department: Amended structure proposed Need to respond to infrastructure challenges in the RSA Regional integration (NEPAD)

Key Strategic Objectives & Outputs Over-loading Infra-structure Road Rail Taxi Urban & Intermodal Public Transport Bus Rail Taxi Acces-sible Trans-port * Safety & Security Road to Safety Rail Trans-port Safety and Security Transport Planning Promotion of Public Transport Integrated Planning & Implemen-tation of NLTTA Promotion of Rail Transport Transport Informa-tion systems NATiS Intelligent Transport Systems Infra-structure Data bank Sector & Enter-prise Reform AARTO imple-mentation BEE Strategy Rail Policy RTMC Raiway Safety Regulator Ports Regulator Rural Trans-port Develop-ment Rural Transport Develop-ment strategy Non -Motorised Transport Accessible Transport * Ad-vance NEPAD objec-tives Open skies Corri-dors Re-duce costs Safety & Secu-rity

Infrastructure Development Key Strategic Objectives & Outputs Infrastructure Development Over-loading Infra-structure Road Rail Taxi Urban & Intermodal Objective Output Maintain & develop strategic national road network Develop & implement Road Infrastructure Strategic Framework Improve rail safety, revival of rail branch lines and promote recapitalisation Create supportive policy and regulatory environment for local economic development Taxi recapitalisation Provisioning & upgrading of taxi facilities Minimise overloading of vehicles to prevent damage to roads and unsafe operations Develop and implement an effective national strategy for overload control Promotion of integrated transport in urban nodes Establish transport intermodal facilities in urban renewal nodes Promote Non Motorised Transport infrastructure Fund & promote pedestrian and bicycle infrastructure & maintain as part of transport planning process Rail – Investment in rail infrastructure: Locomotives Wagons Tracks Overhead lines

Key Strategic Objectives & Outputs Public Transport Public Transport Bus Rail Taxi Objective Output Bus: Improve quality and quantity of service and efficiency Replace interim bus contracts with tendered & negotiated contracts Increase HDI / BEE participation Rail: Institutional passenger and freight railway reform and reorganisation of the rail framework Finalise the National Rail Transport Policy, develop a Strategic Rail Transport Plan and facilitate its implementation Taxi: Facilitate the recapitalisation process Complete EMS negotiations Coordinate the development and implementation of a roll out plan Freight: General Freight business and Coallink Linkrail Oryx – iron ore General – Optimal level of funding for public transport modes

Transport Safety and Security Key Strategic Objectives & Outputs Transport Safety and Security Safety & Security Road to Safety Rail Trans-port Safety and Security Objective Output Improvement of road safety Facilitate the implementation of the Road to Safety Strategy to reduce casualties and deaths on roads and the cost thereof Oversee safe railway operations and promote rail safety Establish a Railway Safety Regulator to oversee safety, monitor safety performance, investigate accidents and adopt safety standards Improve levels of aviation security Ensure that stakeholders implement ICAO standards Improve levels of aviation safety Oversee impl. of ICAO recommendations Oversee establ. of Upper Airspace Ctrl Centre Agree on safety standards in SADC Maintain Search & Rescue facilities Fishing vessel safety Establish a dedicated MRCC Oversee implementation of training programme for seafarers

Integrated Planning & Implemen-tation of NLTTA Key Strategic Objectives & Outputs Transport Planning Transport Planning Promotion of Public Transport Integrated Planning & Implemen-tation of NLTTA Promotion of Rail Transport Objective Output Promotion of Public Transport: Take initiatives to rectify inefficiencies of the public transport system Review policies for subsidies and planning and develop a public transport service contract model and funding strategy for public transport Promotion of Rail Transport: To have a sustainable rail network that is competitive to road transport Leveling the playing fields between road and rail Integrated planning: Complete the process of integrated transport planning Transport plans for the whole country for input into the IDP’s Develop a new passenger transport policy MIG: Coordinate the utilisation of funds made available Finalise the NLTTA into the National Land Transport Act Promote the rollout of transport plans at local level Promotion of rail transport – Reduction / review of gross vehicle mass limits

Transport Information Systems Key Strategic Objectives & Outputs Transport Information Systems Transport Informa-tion systems NATiS Intelligent Transport Systems Infra-structure Data bank Objective Output Intelligent Transport Systems: The adoption of Intelligent Transport Systems by transport service providers and stakeholders, which will enhance the facilitation of an integrated transport system Develop an Intelligent Transport System policy framework in support of the interface between modes of transport Better coordination and planning in transport Develop a transport infrastructure data bank

Sector & Enterprise Reforms Key Strategic Objectives & Outputs Sector & Enterprise Reforms Sector & Enter-prise Reform AARTO imple-mentation BEE Strategy Rail Policy RTMC Railway Safety Regulator Ports Regulator Objective Output Ports Regulator: Introduce a competitive, efficient and safe port system Establish a Ports Regulator and enabling legislation RTIA / AARTO implementation: Reduce the road traffic offence rate thereby creating a safer environment Establish a Road Traffic Infringements Agency BEE Strategy: To achieve RDP objectives and sustain economic growth and development Create and implement an integrated BEE strategy

Sector & Enterprise Reforms Key Strategic Objectives & Outputs Sector & Enterprise Reforms Sector & Enter-prise Reform AARTO imple-mentation BEE Strategy Rail Policy RTMC Railway Safety Regulator Ports Regulator Objective Output Rail reform: Facilitate institutional rail reform Develop a Strategic Rail Transport Plan and facilitate its implementation RTMC: Achieve an integrated, cooperative and coordinated approach towards strategic planning, regulation and control of road traffic management Development of the RTMC and the transfer of functions to the RTMC RSR: Oversee safe railway operations and promote rail safety Establish a Railway Safety Regulator to oversee safety, monitor safety performance, investigate accidents and adopt safety standards

Rural Transport Development Key Strategic Objectives & Outputs Rural Transport Development Rural Trans-port Develop-ment Rural Transport Develop-ment strategy Non -Motorised Transport Objective Output Promotion of a balanced and sustainable sustainable rural transport system Investment in access roads Improve rural transport infrastructure Redress neglect of non motorised transport Address rural freight and passenger transport needs Increase transport mobility and accessibility in rural areas Pilot projects to promote and sustain non motorised transport modes Develop SMME’s in support of non motorised transport

Accessible Transport (Special Needs) Key Strategic Objectives & Outputs Accessible Transport (Special Needs) Acces-sible Trans-port Objective Output Cater for special needs in public transport, such as people with disabilities and special categories of passengers (learners and old aged) Short term and long term funding strategy for inclusion of special needs in public transport Phased in provision of public transport for people with special needs Address special needs in taxi recapitalisation, bus contracts and rail recapitalisation

Advance NEPAD objectives Key Strategic Objectives & Outputs Ad-vance NEPAD objec-tives Open skies Corri-dors Re-duce costs Safety & Secu-rity Advance NEPAD objectives Objective Output Liberalisation of African skies Get more countries to adopt the Yammassoukro Declaration Establish infrastructure links Plan and implement corridors for linking Africa Reduction of transport costs through integrated transport planning and infrastructure for the region and the continent Connect physical infrastructure and strengthen market integration of the region and the continent Promote transport safety and security in the continent Agree on standards and levels of law enforcement at regional level Promotion of rail transport – Reduction / review of gross vehicle mass limits

Structural Changes Informed by key weaknesses: No provision for aviation and maritime policy development capacity Limited capacity for freight policy and planning and no capacity for rail policy and planning No capacity to deal with transport infrastructure Limited capacity to ensure the promotion of integrated transport planning including integrated land transport infrastructure and operations Limited capacity to oversee and monitor public entities

Current Programmes of NDOT 1: Administration Management: Ministry Office of DG Internal audit Communication Corporate Support Services: Logistical Management Human Resources Information Technology Financial Administration Legal Services Secretariate Services Capacity Development Govt Motor Transport 2: Regulation & Safety Aviation & Maritime: Regulation & International Air Transport Regulation Administration Agencies & AMR Contracts Road Traffic Management: RTMC Information Systems Policy & Information Mngmt. R.T. Management Strategy Land & Rail Tpt Infrastructure National Transport Commission AARTO Agency 3: Policy, Strategy & Implementation Passenger Transport Policy Development Freight Transport Policy Development Strategic Support Transport information management Research & Development Implementation:. Passenger Transport: Bus Passenger Transport: Rail Passenger Transport: Taxi Passenger Transport: NLTTA Urban Transport Fund Current Programmes of the Department before restructuring – MTEF was based on the current Programme structure.

Current Programmes of NDOT 1: Administration Management: Ministry Office of DG Internal audit Communication Corporate Support Services: Logistical Management Human Resources Information Technology Financial Administration Legal Services Secretariate Services Capacity Development Govt Motor Transport 2: Regulation & Safety Aviation & Maritime: Regulation & International Air Transport Regulation Administration Agencies & AMR Contracts Road Traffic Management: RTMC Information Systems Policy & Information Mngmt. R.T. Management Strategy Land & Rail Tpt Infrastructure National Transport Commission AARTO Agency 3: Policy, Strategy & Implementation Passenger Transport Policy Development Freight Transport Policy Development Strategic Support Transport information management Research & Development Implementation:. Passenger Transport: Bus Passenger Transport: Rail Passenger Transport: Taxi Passenger Transport: NLTTA Urban Transport Fund R 54,1 m 1% R 1 413,5 m 26,5% R 3 876,1 m 72,5% Roads 82,1% 17,9% Bus 46,6% Rail 49,8% 3,6% 100% (2002/03) Indicates the high level breakdown of the budgets for Programmes 2 and 3: Major portions of the budget are: National Road infrastructure Bus subsidies Rail subsidies

Breakdown Programme 2 (2002/03) RTM 42,2% Agencies 4,6% AMR 7,7% Ship Contracts 23,8% Natis 21,7% R1 161m R252,5m R11,6m R106,6m R60,1m R54,8m R19,3m Roads 82,1% Other 17,9% Further breakdown of Programme 2 budget (2002/2003): Major budgets are: Road Traffic Management: Includes the following transfer payments: AARTO (Possibly an Agency) R17m RTMC R3,324m DLTC’s transfers to Provinces R16,5m Balance for RTM is R69,766m Shipping contracts: Oil pollution prevention services R58,989m and Search & Rescue Watchkeeping Services R18,8m NATIS information systems – ongoing maintenance and improvement of the system Aviation & Maritime Regulation R19,299m Government Services procured from Agencies: SAMSA R 6,224m; SACAA R 5,442m

Breakdown Programme 3 (2002/03) Other 28,2% Taxi 27,2% NLTTA 15,9% UTF 28,7% R 138,4m R 1 931 m R 1 807m R 39m R 37,6m R 22m R 39,7m Rail 49,8% Other 3,6% Bus 46,6% Further breakdown of Programme 3 budget (2002/2003): Major budgets are: UTF R39,744m Taxi process R37,674m NLTTA Transfer payments R22m Balance of the budget for PSI of R38,99m is made up as follows: Passenger Transport Policy Development R11,336m, including Transfers of R5,211m (Transfers were to promote non-motorised transport) Freight Transport Policy Development R5,833m Strategic Support (Research) R18,042m Implementation totaling R3,779m made up as follows (support staff, admin, equipment costs): Freight Policy Implementation R0,701m Passenger Transport – Bus R1,053m Passenger Transport – Rail R0,53m Passenger Transport – NLTTA R1,495m

Final budgets Excluding rollovers 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 Bus 1 294 435 1 409 269 1 691 796 1 846 724 1 894 000 2 008 040 Rail 1 593 770 1 727 000 1 856 415 2 236 919 2 041 840 2 226 550 Roads 899 944 701 081 1 067 612 1 203 064 1 270 556 1 240 789 Other 264 162 308 095 373 888 476 392 417 169 420 851 Total 4 052 311 4 145 445 4 989 711 5 763 099 5 623 565 5 896 230 This is a summary of the final budgets for each year, excluding rollovers for purposes of presenting a “normalised” growth in budget allocations. Special allocations and reprioritisations explain the irregular growth patterns in the following slides. Growth N/a 2,30% 20,37% 15,50% -2,42% 4,85%

Growth in final budgets Excluding rollovers 2000/01 2001/02 2002/03 2003/04 2004/05 Bus 8.87% 20,05% 9,16% 2.56% 6.02% Rail 8,36% 7,49% 20,50% -8,72% 9.05% Roads -22,10% 52,28% 12,69% 5,61% -2,34% Other 16,63% 21,35% 27,42% -12,43% 0,88% Total 2,30% 20,37% 15,50% -2,42% 4,85% The negative growth for roads in 2000/01 was because the Department had to cut the budget for roads and increase the budget for rail subsidies to prevent the discontinuation of certain rail services. The impact of this budget shift was R 292 million from the roads budget to the rail budget. If the adjustment had not taken place, the budget for Rail would have decreased by 10% and the budget for Roads would have grown by 10,3%. In 2001/02 the high growth in the Roads budget reflects a correction of this budget. (If no adjustment was made in 2000/01, net growth in 2001/02 would have been 7,5% and 29,4% for Roads and Rail respectively). More details explain the impact of certain additional and once-off allocations on growth patterns in the following slides.

Growth in final budgets Excluding rollovers Details for Bus and Rail Effect on growth as a percentage 2001/02 2002/03 2003/04 2004/05 Bus subsidies: Additional R 150 m and R 40 m 10,64% 2,40% Growth would have been 9,40% 17,18% 4,83% Rail subsidies: Rail capital R 60 m 3,23% Rail extensions R 86 m 4,63% Rail subsidies R 160 m 8,62% 4.01% 5,74%

Growth in final budgets Excluding rollovers Roads: 2000/01 2001/02 2002/03 2003/04 2004/05 Breakdown of Roads budgets: Baseline 609 881 873 612 1 061 064 1 170 556 1 240 789 Poverty relief 94 000 100 000 Lubombo SDI 50 000 Flood damage 41 200 Border post roads 42 000 Growth in baseline Budgets only -21,30% 43,24% 21,46% 10,32% 6,00% Growth excluding R 292 m adjustment 16,38% -3,13% This slide further explains growth patterns of the Roads budget, particularly the baseline, because certain additional and once-off allocations distort the growth patterns. If the effect of the R 292 million reduction in 2000/01 was removed, the baseline budget would have grown by 16,38% in 2000/01. Because of the reduction, a correction was made in 2001/02, but this correction was limited to prevent a too high growth in 2001/02 compared to the previous year. (Baseline would have reduced by 3,13%). The correction was therefore continued in 2002/03 with a baseline growth of 21,46%.

Growth in final budgets Excluding rollovers 2000/01 2001/02 2002/03 2003/04 2004/05 16,63% 21,35% 27,42% -12,43% 0,88% Ship contracts were under budgeted Legal Section, Secretariat, Int. Audit Ship contracts reprioritised Ship contracts reduces not yet adjusted R 19 m bus investigations Natis contract Road safety education Road safety Discontinued Natis upgrades completed Upgrading of DLTC’s AARTO AARTO discontinued DLTC’s discontinued NLTTA Reduction PSI Capacity Dev. No Inflation Balance grew by 5,42% Balance grew by 4,92% Balance grew by 4,52% Balance grew by 3,73% Balance grew by 4,21% This slide provides a broad overview of the factors that caused irregular growth patterns for all other activities of the Department.

Options proposed 1: Promotion of Public Transport 2: Transport Infrastructure Development 3: Safety issues 4: Institutional Reforms and the Regulatory Framework

Components of Options Options proposed 4. Institutional / Regulatory 3. Safety 2. Infrastructure 1. Public Transport Bus Subsidies Rail Subsidies Transport Capacity Traffic Control Centres Road Maintenance Take over Provincial Roads Border Post Roads Taxi Facilities Infrastructure Division Overloading Control Railway Safety Regulator Dangerous Goods Inspectorate Maritime Rescue Control Centre Oil Pollution prevention Aviation & Maritime Subsidy to SACAA Road Traffic Management Corporation Road Traffic Infr. Agency / AARTO

1: Promotion of Public Transport Options proposed 1: Promotion of Public Transport R’000 Details 2003/04 2004/05 2005/06 Building transport capacity 3000 - Inadequate funding level for Rail subsidies to maintain current level of services including funding for operational subsidies for Khayelitsha 325 160 267 850 293 742 Providing affordable public bus transport. Inadequate funding will result in deterioration of safety levels, closing of services and disinvestment in strategic assets 518 916 724 653 649 095 Total 847 076 992 503 942 837

1: Promotion of Public Transport Options proposed 1: Promotion of Public Transport R’000 Details 2003/04 2004/05 2005/06 Building transport capacity 3000 - Inadequate funding level for Rail subsidies to maintain current level of services including funding for operational subsidies for Khayelitsha 325 160 267 850 293 742 Providing affordable public bus transport. Inadequate funding will result in deterioration of safety levels, closing of services and disinvestment in strategic assets 518 916 724 653 649 095 Total 847 076 992 503 942 837 Recommendations by MTEC for Public transport subsidies: R350m R450m R500m

2: Transport Infrastructure Development Options proposed 2: Transport Infrastructure Development R’000 Details 2003/04 2004/05 2005/06 Create of a Division for Strategic Infrastructure Planning 14 378 14 382 15 245 Upgrading of taxi facilities 282 166 282 167 Road infrastructure for 52 Border posts 62 000 47 000 5 000 Taking over 13 000 km of Provincial roads into the Strategic National Road Network 325 000 880 000 1 650 000 Establish a national network of Traffic Control Centres for overloading control 180 000 220 000 200 000 Cost of Road maintenance material 117 000 124 000 132 000 Total 980 544 1 567 549 2 284 412

2: Transport Infrastructure Development Options proposed 2: Transport Infrastructure Development R’000 Details 2003/04 2004/05 2005/06 Create of a Division for Strategic Infrastructure Planning 14 378 14 382 15 245 Upgrading of taxi facilities 282 166 282 167 Road infrastructure for 52 Border posts 62 000 47 000 5 000 Taking over 13 000 km of Provincial roads into the Strategic National Road Network 325 000 880 000 1 650 000 Establish a national network of Traffic Control Centres for overloading control 180 000 220 000 200 000 Cost of Road maintenance material 117 000 124 000 132 000 Total 980 544 1 567 549 2 284 412 Recommendations by MTEC for this Option: R 0 R 0 R 0

3: Safety issues relating to transport Options proposed 3: Safety issues relating to transport R’000 Details 2003/04 2004/05 2005/06 Appoint an Inspectorate to deal with the transportation of dangerous goods 6 877 9 265 12 026 Enable the Railway Safety Regulator to develop regulations, oversee railway safety and to develop and monitor the implementation of railway safety standards 10 000 20 727 21 497 Top up the currently under funded weighing operations regarding overloading control. A National Overloading Control Fund must still be implemented 15 000 20 000 Total 26 877 44 992 53 523

3: Safety issues relating to transport Options proposed 3: Safety issues relating to transport R’000 Details 2003/04 2004/05 2005/06 Appoint an Inspectorate to deal with the transportation of dangerous goods 6 877 9 265 12 026 Enable the Railway Safety Regulator to develop regulations, oversee railway safety and to develop and monitor the implementation of railway safety standards 10 000 20 727 21 497 Top up the currently under funded weighing operations regarding overloading control. A National Overloading Control Fund must still be implemented 15 000 20 000 Total 26 877 44 992 53 523 Recommendations by MTEC R6,8m R9,2m R12m Recommendations by MTEC R5m R10m R15m

4: Institutional Reforms and the Regulatory Framework Options proposed 4: Institutional Reforms and the Regulatory Framework R’000 Details 2003/04 2004/05 2005/06 Establishment of a Road Traffic Infringement Agency / Implement the AARTO Act over the MTEF period 13 000 - Fund the RTMC until the Corporation can generate its own revenue 11 569 16 105 23 370 Establishment of a MRCC - discontinued by the SANDF 3 931 4 285 4 755 Subsidy to SACAA 5 500 Oil pollution prevention services 7 160 7 600 8 050 AMR - Membership fees, Regulating Committee, Air Services Licensing Councils, Capacity building, Policy review, Awareness and new Maritime legislation 9 856 9 374 10 592 Total 51 016 37 364 46 767

4: Institutional Reforms and the Regulatory Framework Options proposed 4: Institutional Reforms and the Regulatory Framework R’000 Details 2003/04 2004/05 2005/06 Establishment of a Road Traffic Infringement Agency / Implement the AARTO Act over the MTEF period 13 000 - Fund the RTMC until the Corporation can generate its own revenue 11 569 16 105 23 370 Establishment of a MRCC - discontinued by the SANDF 3 931 4 285 4 755 Subsidy to SACAA 5 500 Oil pollution prevention services 7 160 7 600 8 050 AMR - Membership fees, Regulating Committee, Air Services Licensing Councils, Capacity building, Policy review, Awareness and new Maritime legislation 9 856 9 374 10 592 Total 51 016 37 364 46 767 Recommendations by MTEC for this Option: R 0 R 0 R 0

Summary of Options and MTEC proposals Options proposed Summary of Options and MTEC proposals R Million R Million Option Options proposed MTEC proposals 2003/04 2004/05 2005/06 Promotion of Public Transport 847 993 943 350 450 500 Transport Infrastructure Development 981 1 568 2 284 - Safety issues relating to Transport 27 45 54 11,8 19,2 27,0 Institutional Reforms and Regulatory Framework 51 37 47 Total 1 906 2 643 3 328 361,8 469,2 527,0

End of Presentation

Baseline Budget Allocations per Programme Details 2002/03 2003/04 2004/05 2005/06 Administration 54 082 58 093 61 829 65 539 Regulation & Safety 1 413 542 1 508 143 1 471 541 1 559 833 Policy, Strategy & Implementation 3 836 307 4 015 797 4 318 836 4 577 966 Urban Transport Fund 39 744 41 532 44 024 46 665 Total 5 343 675 5 623 565 5 896 230 6 250 003

Baseline budget allocations R’000 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 Bus 1 294 435 1 409 269 1 541 796 1 806 724 1 894 000 2 008 040 Rail 1 161 770 1 727 000 1 716 415 1 930 919 2 041 840 2 226 550 Roads 774 944 659 881 1 017 612 1 161 064 1 270 556 1 240 789 Other 264 162 297 459 371 968 444 968 417 169 420 851 Total 3 495 311 4 093 609 4 647 791 5 343 675 5 623 565 5 896 230 This is a summary of original approved baseline budgets. Therefore the Adjustments budgets and additional allocations after the initial approved budgets are not included, because the figures would be distorted even more if rollovers and once-off additional allocations were included. Certain special allocations were, however, included in the initial budget allocations, which also explain some of the growth / negative growth patterns in the next slides. Growth N/a 17,12% 13,54% 14,97% 5,24% 4,85%

Growth in baseline budgets 2000/01 2001/02 2002/03 2003/04 2004/05 Bus 8.87% 9.4% 17.18% 4.83% 6.02% Rail 48.65% -0.61% 12.5% 5.74% 9.05% Roads -14.85% 54.21% 14.1% 9.43% -2.34% Other 12.6% 25.05% 19.63% -6.25% .88% Total 17.12% 13.54% 14.97% 5.24% 4.85% The high growth in rail subsidies and the negative growth for roads in 2000/01 was because the Department had to cut the budget for roads and increase the budget for rail subsidies to prevent the discontinuation of certain rail services. Initially the adjustment was R 342 million, but an adjustment of R50 million, reflected in the figures, reduced the impact of this budget shift to R 292 million. This adjustment increased the growth for rail subsidies by 25,13% while reducing the growth of the roads budget by 37,68%. If the adjustment had not taken place, the budgets for Rail and Road would have grown by 23,52% and 22,83% respectively. In 2001/02 the high growth in the Roads budget reflects a correction of this budget. (If no adjustment was made in 2000/01, growth in 2001/02 would have been 6,91% and 19,61% for Roads and Rail respectively). The budget for Roads in 2001/02, however, included an amount of R 94 million for Poverty Relief. If this amount is excluded from the Roads budget, the growth in 2001/02 would have been a negative 2,97%. The negative growth of 2,34% in the Roads budget for 2004/05 is because of the discontinuation of a special allocation for Poverty Relief of R 100 million from that year. If this special allocation was excluded, growth would have been 6% in 2004/2005.

Growth in baseline budgets 2000/01 2001/02 2002/03 2003/04 2004/05 Other 12.6% 25.05% 19.63% -6.25% .88% Effect on above growth of high growth items: Telkom & Pentow 3,92% Bus investigations 7,55% NATIS 4,89% RTMC 1,04% DLTC’s 7,23% NLTTA 2,58% 2,97% (2,25)% Administration 2,32% RTM Communication 1,57% 5,44% AARTO 4,57% (3,82)% Taxi 2,69% Total 11,47% 19,63% 15,67% (8,32)% This slide explains the uneven growth pattern in the remainder of the Department’s budget allocations. The reprioritisation of the budgets indicate other areas where increses were allocated to: 2000/01:Increase mainly taken up by: Increase of R10,3m (21,1%) for Telkom & Pentow contracts An amount of R19,9m for bus subsidy investigations (56,3%) 2001/02: Additional allocations for safety issues and extending access to public transport, totaling R30m and reprioritisation of the remainder of the budget took up other increases. Main increses were: DLTC’s R 21,5m (100%) NATIS R 14,5m (39,3%) 2002/03: Additional allocations for safety issues and extending access to public transport, totaling a further R40m and reprioritisation of the remainder of the budget took up other increases. Main increases were: RTM Communication & Education 24,8m (46,6%) AARTO R17m (100%) NLTTA R11m (100%) 2003/04: Reduction in growth due to discontinuation of additional allocations.