1. PRESENTATION TO: THE NCOP 31 AUGUST 2001

2. NATIONAL LAND TRANSPORT TRANSITION ACT No. 22 of 2000, AND PROPOSED AMENDMENTS TO THE ACT

3. 1.BACKGROUND NATIONAL LAND TRANSPORT TRANSITION ACT, 2000 (ACT 22 OF 2000) : -Promulgated June 2000 -Brought into operation 1 December 2000 excluding certain parts such as the planning Urgency to proceed - minibus-taxi processes

4. NEED TO AMEND THE ACT -DEFINITIONS NEED TO BE REALIGNED -PLANNING PROVISIONS OF THE ACT NOT YET OPERA- TIONAL Operating licences Contracts Conversions of permits -ALLOW SUBSIDISED SERVICES TO BE CONCLUDED WITH OUT TRANSPORT PLANS

5. 1. BACKGROUND TO THE AMENDMENTS: KEY ISSUES -EXTENSION OF INTERIM AND CURRENT TENDERED CONTRACTS Implication of Golden Arrow court case -OPERATING LICENCE BOARD Lack of provincial legislation Remuneration of board members Quorum -REGISTRATION Permits or operating licence for registration

6. 1. BACKGROUND TO THE AMENDMENTS:KEY ISSUES -DEFINITION OF BUS -National Road Traffic Act, 1996 -TRANSITIONAL PROVISIONS -Proceed with processes without plans -CPTRs in terms Interim Act -Minister and MECs determine dates for plans -Transitional arrangements for provinces without OLB

7. KEY COMPONENTS(1) Priority to public transport A move away from a supply (operator) driven system to a demand driven system based on plans Regulated competition with competition off the road for the right to operate on the road Provision of subsidised services into contracts

8. KEY COMPONENTS (2) The introduction of Transport Authorities at the municipal sphere Conversion to operating licences for road-based services The formalisation of the minibus taxi industry via registration and legalisation Improved transport law enforcement

9. CHAPTER 1: Introductory matters CHAPTER 2: Matters of National concern CHAPTER 3: Matters of Provincial concern CHAPTER 4: General matters STRUCTURE OF THE NLTTA

10. SCOPE OF THE ACT Chapter 2 prescribes policies, principles, requirements, guidelines, frameworks, norms & standards that must be the same for all Provinces and will take precedence in case of conflict Chapter 3 provisions assist Provinces without adequate legislation & may be repealed by Provincial legislation. Provincial laws will take precedence on issues dealt with in Chapter 3

11. PILLARS OF THE ACT REGULATED COMPETITION & RESTRUCTURING OF THE MODES SUSTAINABLE FUNDING EFFECTIVE TRANSPORT LAW ENFORCEMENT PLANNING APPROPRIATE INSTITUTIONAL BODIES

12. PRINCIPLES OF NATIONAL POLICY Co-ordination of institutional structures Integrated planning Priority to public transport & customer needs Promote modal integration User-charges & cost recovery Optimal use of resources Sustainable investment Address needs of special categories of passengers Effective transport law enforcement Training and development Public participation Integrated information systems

13. Impartiality : Members of Operating Licencing Boards Staff of Boards directly involved Members of Appeal Boards Officials of PA’s - developing Operating Licences strategy Officials - transport law enforcement Registrar PRINCIPLES OF NATIONAL POLICY (2)

14. FUNCTIONS OF THE MINISTER Making of policy Monitoring implementation of policy Preparing a NLT Strategic Framework Making regulations on Chapter 2- issues Monitoring the utilization of funds Establishing an information system Introducing a research program Guiding education and training

15. FUNCTIONS OF THE MEC’s Functions assigned by Constitution to Provinces, plus Making of policy Monitoring implementation of policy Monitoring the utilization of funds Assisting planning authorities Preparing a Provincial LT- framework Ensuring co-ordination between PA’s Making regulations on Chapter 3- issues

16. Provincial Transport Appeal Body Operating Licencing Board Transport Registrar Planning & Transport Authorities Transport Appeal Tribunal INSTITUTIONAL STRUCTURES

17. PURPOSE OF TRANSPORT AUTHORITIES Improved transport service delivery by grouping the transport functions into a single well-managed and focussed institutional structure

18. ESTABLISHMENT OF TRANSPORT AUTHORITIES Juristic person not subject to liquidation Written agreement between MEC and municipality and the Minister whenever funds are provided by the NDOT Consent not to withhold unreasonably MEC to publish founding agreement Dissolution of MTA’s if applicable

19. COMPULSORY FUNCTIONS OF TA’S Must: Prepare transport plans Develop transport policy Perform financial planning Manage movement of persons & goods Promote public participation Must by a date determined by the Minister in consultation with the MEC: perform transport contracting function

20. FUNCTIONS OF TA’S (2) Wide rage of optional functions in Provincial Chapter Optional functions can be added to by Provincial legislation

21. TRANSPORT EXECUTIVES Technical and administrative personnel Municipal administration One or more municipal departments Separate body Province

22. BOUNDARIES OF TA’S Determined by: dominant passenger movements economic inter-dependency between inhabitants integrated land use and transport development potential extent of public transport services physical characteristics other criteria - provincial legislation MEC to consult MECs for Local Gov’t & Finance Provision is made for cross- provincial TA’s and agreements between the relevant MEC’s

23. FINANCES OF TA’S Management of finances of TA’s prescribed - similar to the Local Government Transition Act

24. APPLICATIONS FOR OPERATING LICENCES (OL’s) OL is a pre-requisite to operate OL not a right Permit to be converted to an OL New OL’s - 5 year validity Disposals ito transport plans Requirements and disqualifications Notice of applications

25. APPLICATIONS FOR OL’s (2) OL Board to which applications must be made -Province in which operates ->2 Provinces - origin -renewal, amendment or transfer - original Province

26. CONVERSION OF OPERATING LICENCES OL has same authority as for old permit Done before a date prescribed by Minister Manner to be prescribed by MEC To larger vehicles - published in Government Gazette

27. CONVERSION OF PERMITS Converted to: Minibus-taxi Type of permit Vehicle up to 35 seats (2 for 1) Radius or area Route or network- based Metered taxiParticular area Long distance Specify routes & ranks

28. CONVERSION OF PERMITS Converted to: Same period Type of permit Indefinite period except where converted to a larger vehicle “4 + 1” Vehicle up to 35 (4 for 1) Vehicle 9 - 18 (2 for 1) Indefinite period Definite period

29. OPERATING LICENCES (2) Restriction of the use of same vehicle for long distance & commuter services: -not allowed where it will be detrimental to the provision of commuter services -only allowed with consent of P/A

30. 2. PROPOSED AMENDMENTS 5. SECTION 77 - MEC to provide for remuneration of members of OLB - 6. SECTION 78 -Add “Powers” to heading of section -Enables OLB to issue temporary permits ito: -RTA; or -Provincial Legislation; or -When provincial laws are not clear

31. 2. PROPOSED AMENDMENTS 6. SECTION 78 (continued) - Procedures of the board are addressed in – the proposed subsection (6)

32. PROVINCIAL OPERATING LICENCING BOARD An Independent body A single Board to be established + administrative offices in regions if required TA can establish a Board for T/Area only if all compulsory functions are taken-over & capabilities are demonstrated To receive, consider and decide upon -new applications -renewals, amendments or transfers -conversions Procedures to be prescribed by MEC

33. PROVINCIAL REGISTRARS One Registrar per Province Provincial Transport Registrar - interim only taxi functions Panel of Assessors Not part of impartiality provision in National Principles Provision for disclosure of interest

34. FUNCTIONS OF PROVINCIAL REGISTRARS Disposing of applications Monitoring compliance Promote professional practices Suspension & cancellation Establish & maintain Provincial Register Report annually to MEC

35. REGISTRATION Establishment of National Transport Register Info re associations, members & vehicles Database - monitoring implementation Sensitivity of information

36. REGISTRATION (3) Inter-Provincial uniformity Constitution & Code of Conduct - prescribed by Minister in consultation with MECs

37. BENEFITS OF REGISTRATION Economic assistance (incl taxi-recapitalisation) To be able to tender for contracts

38. 7. SECTION 112 -Registration of new members of taxi associations will include: -holders of permits -those who have applied for operating licences but not issued yet

39. 8. SECTION 113 - Non-members holding permits can be registered 9. SECTION 130 -A printing error is corrected

40. APPEAL BODIES National Transport Appeal Tribunal (TAT-Act) -handles inter provincial and cross border appeals and intra provincial in absence of Provincial Appeal Body Provincial Appeal Body

41. PLANNING Current Public Transport Record All planning authorities Public Transport Plan At request of MEC - public transport only Operating Licences Strategy All Planning authorities Integrated Transport Plan At request of MEC - includes all aspects transport Rationalisation Plan Planning authorities with subsidised public transport Submit to Minister National Land Transport Strategic Framework Submit to Minister / MEC with certain aspects for approval Subsequent ones contain brief summary of plans and some detail on inter provincial and inter planning area transport Provincial Land Transport Framework Initially as a guide for planning authorities in Province Integrated Development Plan

42. NATIONAL LAND TRANSPORT STRATEGIC FRAMEWORK Annually for a 5-year horison To guide land transport planning countywide National policy Promote integration of planning Describe conflict resolution mechanisms Strategies for – freight,rail,national roads,cross- border, KPI’s, tourism,the environment, land use, inter- provincial and persons with disabilities

43. PROVINCIAL LAND TRANSPORT FRAMEWORK Annually for a 5-year horison -Summary of local plans -Co-ordination of local planning -Budget -Conflict resolution -Strategy re special passengers & learners - Strategy re movement of dangerous goods -Detail re inter- and intra- provincial long distance passenger services -KPI’s

44. OPERATING LICENCES STRATEGY -To guide the Operating Licencing Board in disposing of applications -To achieve a balance between supply and utilisation - role of modes -circumstances for Operating Licences -use of facilities -avoid wasteful competition -commercial service contracts -conditions to be imposed by the Board

45. INTEGRATED TRANSPORT PLAN To be done annually by TA’s, Core Cities and specific municipalities required by MEC Content: -PTP but linked to IDP (land-use) -Policy & strategies -Budget and funding sources -TDM-strategies -Plan re movement of dangerous goods -P roposed projects (all modes and infrastructure) To be submitted to MEC approval

46. CHANGES IN LAND-USE AND PUBLIC TRANSPORT SERVICES All persons and institutions are bound by the plans (excl CPTR) Not only intensification of land use also disinvestment decisions Notices of prescribed particulars for plans have to be published

47. REGULATED COMPETITION SERVICES TO BE PROVIDED ITO: -subsidised service contracts -negotiated service contracts -commercial service contracts -OL’s only

48. REGULATED COMPETITION (2) All subsidized services » subsidized service contracts or Negotiated contracts by the MEC in consultation with the MINISTER

49. REGULATED COMPETITION (3) Negotiated contracts only: -to promote SMME’s and PDI’s or -to restructure parastatal or municipal service -once off between for service not previously on tendered contract -publication of intent -model tender doc’s to be used

50. REGULATED COMPETITION (4) Qualifying as a tenderer: -operate on business principles with financial ringfencing -liable to pay income tax -current unscheduled service operator registered with Registrar

51. REGULATED COMPETITION (5) Municipal or parastatal operator may qualify for subsidised contract once only where: -the service was operated on 1 October 1996; and -the service was not previously an interim or current tendered contract

52. REGULATED COMPETITION (6) FINANCIALLY RINGFENCED: -business conducted separately from any other -keep separately accounting records -financially sustainable -no unfair advantage to financial or other support or resources

53. REGULATED COMPETITION (7) n CONTRACTING AUTHORITIES -Provinces -TA’s -Core cities

54. REGULATED COMPETITION (8) TA not to operate a transport service No contract between a municipality and any TA to operate a service unless it adheres to specified criteria for financial ringfencing

55. 2. PROPOSED AMENDMENTS 3. SECTION 47(1) -ensure no disruption of subsidised services -proceed with new tendered contracts without plans - allow for extension of interim and current tendered contracts - Allow for current tender contract holders to negotiate contracts 4. SECTION 49(3) -allow for payment of parastatal and municipal operators on negotiated contracts

56. LAW ENFORCEMENT Success of implementation of NLTTA depends on effective law enforcement To link transport law enforcement with other law enforcement agencies, such as Cross Border, traffic and municipal police

57. LAW ENFORCEMENT (2) Offences & penalties -The Bill provides a list of offences & enalties MEC may appoint inspectors -The Bill provides a list of powers

58. LAW ENFORCEMENT (3) Impoundment of vehicles -Bill provides for circumstances of impoundment pending an investigation -Such vehicles to be taken to a depot as established by the MEC

59. GENERAL Transitional provisions - conviction under previous law = conviction in terms of this Act be regarded as conviction committed i.t.o this Act -distinguishing mark = valid i.t.o this Act until permit is converted, withdrawn or cancelled

60. 2. PROPOSED AMENDMENTS 1. DEFINITIONS -“contracting authority” and “current tendered contracts” in line with definition of “planning authority” -“long distance service” to include rail -“planning authority” amended due to Part 7 of Act not in operation -“registered manufacturer” to align it with the National Road Traffic Act, 1996 2. CORRECT INCORRECT REFERENCES

61. DEFINITIONS 10. SECTIONS 131 AND132 -Definition of “bus” is repealed to keep it line with the Road Traffic Act and until the standards of homologation are amended in the Standards Act. This address the safety standards of the vehicles.

62. TRANSITIONAL PROVISIONS 11. SECTION 134 (Transitional Provisions)- - Minimise disruption to activities of the due Part 7 (transport plans) not in operation – provide for continuity - CPTRs ito National Land Transport Interim Arrangements Act, 1998 to be acceptable - Minister and MECs provide different dates for different areas wrt preparation of transport plans -Transitional arrangements for Provinces which do not have OLBs in place

63. FINANCIAL AMENDMENTS OF PROPOSED AMENDMENTS - To clean up the Act and to provide for gaps between National and Provincial legislation - No additional burden place on any sphere of Government - If Act is not amended – Government will not be able to proceed with certain actions due to potential court interdicts