National Land Transport Bill National Treasury 5 August 2008

Overview Bill is critical in providing clear, unambiguous and mutually exclusive powers and functions to ensure accountability in the transition to integrated rapid public transport networks National Treasury concerns relate to alignment of legislation and inappropriate provisions for funding

Financial No clear role towards fare setting Entitlement to subsidies S11(2)(c)(1) provides for the management and implementation role at local level S20(1)(d) include financial planning whilst S20(1)(m) provides municipalities with power to determine and adjust fare structures and levels S8(b) Ministers regulatory powers re. fare structure S25(1)(c-d) NPTR oversight and advisory functions with no powers specified Entitlement to subsidies Provision in Bill which creates an entitlement to subsidies should be removed until such time as the policy (referred to in S8(1)(j) has been approved by Cabinet Remove S51(2)(c) and clarify intention of S51(3) Liabilities on the State S58(2)(a) creates a ongoing liability on the state S16(8) Creation of new funds and earmarking of fuel levy Any funding instrument to other spheres of government to be provided for in the Division of Revenue Act. Provision for withholding of funds to be provided for in the Division of Revenue Act – remove S6(5) and S35(9) Fuel tax matter to be dealt with through the Revenue Laws Act, remove S33(b) MFMA Regulations DOT to make recommendations regarding regulations required under the MFMA Remove S35(8)

Constitutional Powers, roles and functions National Treasury supports the consolidation of the planning, implementation, regulation and monitoring function at local level Exclusion of municipalities in providing subsidised public transport Provision relating to S12 provide for in PFMA, implication for service provision at local level? Determination of capacity Constitutionally provided processes applicable to S31(9) Prudent to provide clear roles and responsibilities for smaller municipalities

Transitional Transitional roles and responsibilities Provisions of S49 and S58 are either insufficient or in conflict with the principle of strengthening the municipalities had in running the network. Defining transport areas Functional transport areas remain a critical yet undefined concept in the legislation Powers and functions of public transport regulators Clarity required on the creation of the public transport regulators, criteria for decision making and powers granted.

Thank You