CROSS-BORDER ROAD TRANSPORT AMENDMENT BILL [B 51B – 2007] PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC SERVICES (NATIONAL COUNCIL OF PROVINCES) 28 MAY 2008 1

BACKROUND Department of Transport The Cross-Border Road Transport Act No. 4 of 1998 came into force on 1 April 1998 The Act create the Cross-Border Road Transport Agency and gives effect to various International Agreements and regulates cross-border road transport After implementation of the Act, some issues that required some amendments aroused. 2

BACKROUND TO AGREEMENTS Department of Transport BACKROUND TO AGREEMENTS Cross-border road transport must be regulated differently because of international Agreements The following agreements exist: The MOU with Botswana, Lesotho, Namibia and Swaziland Bilateral agreements with Malawi, Mozambique, Zimbabwe and Zambia The Agreements are attached to the Transport Deregulation Act, 1988, and remain in force under the Cross-Border Act 3

BACKGROUND TO AGREEMENTS (CONT.) Department of Transport The Agreements usually have quotas, i.e. states must equalize the no. of operators Joint Route Management Committees and similar structures are established Different considerations apply than with domestic transport under the NLTTA The Agency must apply the Act and the relevant Agreement(s) 4

OBJECTS OF THE BILL Department of Transport To amend the Cross Border Road Transport Act No. 4 of 1998 so as to insert the table of contents. To amend and insert certain definitions. To authorize the Cross Border Road Transport Agency to levy and collect tolls on behalf of SANRAL. To simplify the procedure for the appointments of the Board Members. 5

OBJECTS OF THE BILL (CONT) Department of Transport To regulate the granting of Cross Border permits. To update reference to traffic legislation. To create certain offences. To amend certain provisions of the NLTTA, 2000. (Act No. 22 of 2000) To provide for matters connected thereto. 6

SECTION 1 (DEFINITIONS) Department of Transport Table of contents inserted to facilitate reading the Act Def of “Cabotage” “or” changed to “and” to make it clear that it refers to both on- and offloading Def of “cross-border road transport” Add “and personal effects” to stop loading of freight Cover persons carried in course of business: operators evade the Act by saying they are carrying workers 7

SECTION 1 (DEFINITIONS CONT…) Department of Transport SECTION 1 (DEFINITIONS CONT…) Def of “foreign carrier” Add cabotage to close the technical loophole that arose in the Airey High Court case Def of “permit” Maximum validity period changed to 5 years, from 3 months, 6 months or 1 year? To be in line with NLTTA Admin costs too high for short period permits 8

SECTION 1 (DEFINITIONS CONT…) Department of Transport SECTION 1 (DEFINITIONS CONT…) Def of “reward” Add non-monetary reward to close gap for hiring schemes etc? Def of “unauthorized transport” Technical change to simplify Act Def of “vehicle” To make it clearer that the 3500 kg limit applies to the whole combination of vehicles and not only the truck tractor To make it clearer that for cabotage a single permit is needed for each component of a vehicle combination 9

SECTION 4 – POWER TO COLLECT TOLLS Department of Transport Other SADC states have cross-border road user charges SA operators complain that “playing fields are not level” Engagement with SANRAL: possibility to declare roads near borders as toll roads CBRTA will be empowered to collect toll as agent of SANRAL as a road user charge? The power will only be used if the Minister approves and SANRAL agrees 10

SECTION 23 & 25 - CABOTAGE Act not clear enough on the cabotage issue Department of Transport Act not clear enough on the cabotage issue Cabotage is where a foreign carrier: Operates inside South Africa, or Picks up in SA to go to a 3 rd country Amendment makes it clear that: the Agency regulates cabotage and a permit is required for cabotage 11

SECTION 27 – FACTORS TO CONSIDER IN ISSUING PERMITS Department of Transport Transfers not necessary: the new operator can just as well apply for a new permit Will stop “consultants” from peddling permits Tax clearance required as with NLTTA (the Agency is in discussion with SARS on this issue) Conditions imposed by a Joint Committee to be considered (to bring Act in line with agreements) 12

IN ISSUING PERMITS (CONT.) SECTION 27 – FACTORS TO CONSIDER IN ISSUING PERMITS (CONT.) Department of Transport Board must take BEE & SMME considerations into account: brings Act into line with BBBEE Act etc? Combination of vehicles: a single permit is issued for vehicle combinations for C-B transport, but not for cabotage (see def of “vehicle”) 13

SECTION 28 – FACTORS TO CONSIDER IN ISSUING PERMITS (PASSENGERS) Department of Transport Consequential amendments to effect the same amendments as to s.27 The factor “ability of the applicant” amended to make it clearer and remove arguments 14

SECTION 30 – WITHDRAWAL & SUSPENSION OF PERMITS Department of Transport Act amended to allow withdrawal or suspension for non-compliance with permit conditions: to bring in line with NLTTA and provincial legislation Notifying holder of right of appeal: amendment suggested by State Law Adviser to comply with Promotion of Administrative Justice Act, 2000 15

SECTION 31 - CABOTAGE Subsection (1) amended to promote clarity Department of Transport SECTION 31 - CABOTAGE Subsection (1) amended to promote clarity Cabotage permits may only be issued if there is no conflict with ITPs and other transport plans done under the NLTTA Amendment to make it clear that a separate permit is required for each vehicle component (see above) 16

SECTION 32 – DELEGATION TO CEO TO ISSUE PERMITS Department of Transport The Act is illogical in not extending delegation to the CEO for temporary cabotage permits Consequential amendment to extend this power to permits for carrying workers (see def of “cross-border road transport”) Permits issued by the CEO must be ratified by the Board 17

SECTION 33 – PUBLICATION OF APPLICATIONS Department of Transport It is a waste of time and money to publish all renewals in the Govt. Gazette Act amended to say renewals may be published, and must be published only if permit conditions are to be amended Consequential amendments: Applications to carry workers need not be published Remove reference to transfers and simplify section 18

Section 35 – Consultative structures Department of Transport Provincial and local authorities added to the list of stakeholders for route committees etc. 19

SECTION 37 & 38 – APPOINTMENT AND POWERS OF INSPECTORS Department of Transport Act provides for the Board to appoint inspectors CEO is in a better position as the CEO is in close contact with the HR Division and Law Enforcement Division Inspectors empowered to confiscate cabotage permits (omission in Act) 20

SECTION 40 – OFFENCES AND PENALTIES Department of Transport Where passengers intend to cross a border, the Act defines it as cross-border transport Provincial Boards issue permits up to borders where passengers walk across A presumption is introduced to presume cross-border transport where passengers picked up or set down within 1 km of a border (discussed with State Law Adviser)? Hiring out of permits is made an offence (see amendment to section 47) 21

NEW SECTION 46A – EMERGENCY MEASURES Department of Transport New section will empower Minister to suspend permits on routes or in areas, e.g. a rank in case of violence or unrest Such powers are in provincial Acts e.g. the Gauteng Public Passenger Road Transport Act, 2001 These powers are necessary to avoid conflict and save lives 22

SECTION 47 – DUTIES OF PERMIT HOLDERS Department of Transport Holders of permits for more than 1 year will have to submit roadworthy certificates, proof of insurance etc. annually Will become important if permits are issued for 5 years A provision is inserted to prevent hiring out of permits This will stop peddling of permits and bring the Act into line with the NLTTA 23

SECTION 49 – CONSIGNMENT NOTES AND PASSENGER LISTS Department of Transport Operators have complained that the 21 days allowed to submit consignment notes and passenger lists is too short Period extended to 30 days 24

Section 52 – Lapsing of unlawful provincial permits Department of Transport In the past the NTC and provincial Boards issued many cross-border permits and operating licenses: some are indefinite The Minister has written letters to the provincial Boards to stop this practice It has been agreed that these permits should lapse within 6 months, and operators should apply to the Agency for proper permits 25

Section 46 of NLTTA Department of Transport Section 46 of the NLTTA prohibits setting down passengers at or near a border where they intend to cross the border The amendment will extend this to picking up passengers to block a loophole 26

OTHER CONSEQUENTIAL AMENDMENTS Department of Transport Various other sections are amended to: Effect consequential amendments, e.g. deleting references to transfers Update references to the old Road Traffic Act, 1989 Change cross-references 27

Department of Transport CONSULTATION An Amendment Bill was published for comment in May 2000 A Plenary conference with stakeholders was held in Feb. 2002 Bill to MINCOM (now MINMEC) in April 2003: referred to provinces & other stakeholders for further consultation Bill approved by State Law Adviser in July 2006 Bill published again for comment on 5 September 2006 Amendments have now become urgent JCPS and BCOCC consulted. The intention to introduce the Bill in Parliament was Published in Government Gazette No. 30485 on the 23 November 2007. 28

CONCLUSION It is recommended that the committee concur with the Amendment Bill THANK YOU 29