Sanral deserves a medal for e-tolls
The SA National Roads Agency Limited (Sanral) should get a medal for its work, an economist told the panel reviewing Gauteng’s e-toll system, on Wednesday (19 November).
Economist Roelof Botha, whom Sanral commissioned to research the impact of the Gauteng Freeway Improvement Project (GFIP), praised the toll roads and their contribution to the province.
He was effusive in his praise, suggesting the agency ought to “get a medal for what they have done”.
“One of the early benefits of GFIP is that the road commuter pain index has been reduced significantly.”
This meant that drivers’ frustration and irritation had been “more or less removed… thanks to Sanral”.
The improved road network saved people commuting time, which translated into productive time where people could earn more money, or leisure time, which allowed people to get home earlier, leaving them more rested, and more productive for the next day, the economist said.
Botha argued that if the roads had been funded by government then the freeway upgrade, had it been undertaken at all, would have used money that could have been used for delivering services to the public.
“This government does not have money to build fancy roads, unless people are prepared to pay for that.”
The panel was appointed by Gauteng premier David Makhura to examine the GFIP and the electronic tolling system put in place to fund it. It was expected to present its findings to Makhura at the end of the month.
Sanral board member Peter Derman, who has a social science background, told the panel that a social impact assessment had not been done for the GFIP.
Based on his previous experience, he “would hazard a guess” that the GFIP would benefit the poor in the long term. Such benefits included townships assuming a more urban character, and job creation.
Sanral was making final presentations to the panel to “clear up misconceptions” about the e-tolling project, which had been met with significant public resistance.
In response to Botha’s assertion that e-tolling is pro-poor, the Opposition to Urban Tolling Alliance on Thursday (20 November) challenged the economist to a public debate.
“Public transport is exempted, [users of this type of transport] should shut up and not take part in this debate,” Botha said in a somewhat heated tone, Sapa reported.
Although he retracted his statement that “those who don’t pay taxes should shut up about e-tolling,” Outa called on Botha to commit himself to a process of engagement with his critics.
“Dr Botha has re-charged the debate with emotion, projecting his frustration in a grossly misdirected manner. Quite frankly, has done Sanral’s case for e-tolling more harm than their critics ever could,” said John Clarke, Outa’s spokesperson.
Outa said it invested an extraordinary amount of time and intellectual effort to produce a document that interrogated Dr Botha’s arguments, and those of other pro e-tolling economists.
“It was written precisely to take the emotional charge OUT of the debate by presenting a rigorous, academically respectable case against the e-tolling decision,” Clarke said.
Outa again challenged the economic theory of an 8,4:1 benefit to cost ratio as espoused by Sanral’s economists.
The 8,4:1 benefit-to-cost ratio and economic modelling implied the wider roads made the country richer by R8.40 for every R1.00 spent on the tolls to finance them.
“The logic provided in this economic benefit argument by Botha, implies that time spent in the traffic is a direct loss of salary or earning potential to the road user. Conversely, his argument suggests that if one arrives earlier to work in the morning or home in the evening, the road user actually earns more money/salary in the bank,” said Ouata chairman, Wayne Duvenage.
“It is an argument as irrational as trying to place a rand value on love, dignity or altruism.”
“Adding further concern to the argument, Dr Botha expects those salaried individuals to not only put a rand value on their time outside of working hours, but to also pay a compulsory tax on it, even if the benefits don’t materialize,” Outa said.
Reporting with Sapa.
More on e-tolls
E-tolls a damn good idea: economist
E-tolls cost 25 cents for every R100 earned
E-tolls are not perfect: transport minister
Gauteng government will ‘seriously consider’ e-toll findings
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