Mobility

With reference to the recent minibus-taxi industry shutdown as a result of dissatisfaction with his Department’s decision to end the Blue Dot Pilot Project:

1. (a)(i) What is the number of taxis that participated in the pilot project and (ii) how much was paid to each during the duration of the project and (b) what (i) lessons were learned through the project and (ii) are some of the positives and negatives that were highlighted;

2. whether copies of the minutes of the Western Cape Cabinet meeting at which the project was endorsed can be made available;

3. whether, with regard to his recent public comment that “funding the programme was the mandate of the national department and the provincial government needed the support of the national government to fund the continuation and expansion of this pilot programme”, (a) further clarity and details and (b) a copy of the written mandate can be provided; if not, why not; if so, what are the relevant details;

 

4. whether the taxi stakeholders, including Santaco, were consulted before the decision was taken to end the pilot project; if not, why not; if so, can copies of all the communication and meetings between the two parties be made available;

5. (a) how much money was needed for the expansion of the project and (b) why did his Department not make the money available?

 

 

 

 

 

 

 

 

Reply:

 

 

1. (a)   (i)         877 vehicles participated in the programme.

(ii)        Participating vehicles could earn up to R10,000 per month, subject to their performance.  The average earning per vehicle over the course of the pilot was R6,100 per month.

 

(b)       (i)    A number of key lessons were learnt through the programme.           These include:

• That it is possible to change patterns of irresponsible behaviour on our roads through an incentive programme linked to constant monitoring and feedback.
• There is widespread lack of compliance in the industry in terms of valid licences, tax, and vehicle roadworthiness. To participate in Blue Dot, participants had to meet strict eligibility requirements.  The Department provided significant support to participants to meet these compliance criteria, resulting in a substantial increase in compliance levels, including tax compliance, valid PrDPs, and roadworthy vehicles.
• Communication between the Department and participating operators and their drivers was sometimes challenging. Messages did not always filter down to operators and drivers, and so various steps were introduced to improve communication, including direct operator engagements. 

 

(ii)        Overall, Blue Dot has created safer and better quality public transport, while progressing the formalisation of the industry. This is evidenced by improved user ratings, the reduction in speeding and harsh driving behaviour over the course of the pilot and the positive results of a passenger survey. Some of the successes of the pilot are:

 

• The establishment of 8 new regional companies, representing a significant leap forward for the formalisation of the minibus taxi industry in the Western Cape. 
• A first-of-its-kind user feedback system was established allowing passengers and other road users to rate Blue Dot Taxis via cell phone.  The Department received over 30,000 ratings during the course of the pilot. 
• Improving taxi services by reducing speeding by 50% and harsh events (cornering, acceleration and braking) by 40%, while passengers consistently rated the service positively via the user feedback system.
• Over 800 vehicles were branded, fitted with a tracker and checked for safety – allowing the Department to monitor over 3,3 million km of minibus taxi operations monthly across 150 routes and providing unprecedented data and insights into minibus taxi operations.
• Over 500 operators and 1,100 drivers met the rigorous eligibility requirements to participate, which included training and tax compliance.
• A recent survey of 400 Blue Dot passengers confirmed that the pilot has improved the passenger experience and found that:
  • 82% felt safer when travelling with a Blue Dot Taxi.
  • 78% agreed that a Blue Dot Taxi is a better taxi.
  • 88% agreed that the Western Cape needs more Blue Dot Taxis.

 

 

2. This request must be directed to the Office of the Premier.

 

 

3. (a)  If Blue Dot is rolled out as a programme at the national level, which we

believe it should be given its remarkable success, then it will be the mandate of national government who are responsible for national public transport initiatives.  While the provincial sphere would certainly play a role in this implementation, given the concurrent constitutional responsibility for public transport between the national and provincial sphere, the Western Cape Government cannot do so alone and requires funding from national government given the significant costs involved in supporting and formalising the minibus taxi industry at scale.  All major forms of public transport, other than minibus taxi services, receive funding from national government, including annual subsidies to PRASA; the Public Transport Operations Grant allocated to provinces, which supports the Golden Arrow Bus Services in the Western Cape; and the Public Transport Network Grant allocated to selected municipalities, which supports the MyCiTi and GoGeorge services in the Western Cape.  We are arguing for similar national funding support for the minibus taxi industry, so that minibus taxi improvement initiatives, such as Blue Dot, can be implemented in the Western Cape and across the country.  The minibus taxi industry receives very little funding from government and, as the largest mode of public transport, it should be adequately funded.

 

(b)  Constitution Schedule 4 Functional Areas of Concurrent National and Provincial Legislative.

The Constitution provides that public transport is an area of concurrent national and provincial competence. Blue Dot is an incentive programme that is designed to deliver on this concurrent mandate and is intended to give effect to key policy objectives of providing safe and reliable public transport.

The continuation and support of the Programme aligns with National Government’s mandate in terms of section 5 of the NLTA to –

• facilitate the increased use of public transport
• promote, within overall land transport objectives, the safety of passengers
• promote public transport that is effective in satisfying user needs, is of an acceptable standard and is safe.

Blue Dot also aligns fully with national government’s emphasis on formalising and supporting the minibus taxi industry, as expressed at the National Taxi Lekgotla 2020, and on numerous occasions by the President and National Minister of Transport. 

 

 

4. Yes, representatives of the minibus taxi industry were consulted extensively on this matter.  The Department established and maintained a strong and productive working relationship with the participating members of the minibus taxi industry throughout the course of the pilot.  This included regular engagements with UTS (Provincial Company established by SANTACO Western Cape to participate in Red Dot Taxi and later Blue Dot Taxi), the eight regional companies and participating operators.  Throughout the course of the pilot, UTS and the Regional Companies were regularly updated on the state of the pilot, including the funding available, and were regularly warned of the risk that the pilot project would end.   

 

5. (a) To continue the pilot, the Department required approximately R40m

for the remainder of this financial year (FY22/23) and R150m for the continuation of the pilot by another year (FY23/24). 

 

Expansion to include additional initiatives, such as electronic ticketing, or additional operators would require an additional budget allocation.  For example, expanding the project to include 5,000 vehicles would require an annual budget of approximately R800 million.  For context, this is less than the annual subsidy provided to Golden Arrow Bus Services but would benefit more passengers. 

 

(b) Unfortunately, the Western Cape Government has limited resources available and has significant existing responsibilities, including education, health, and infrastructure.  Given existing fiscal constraints across the country and in the province, the budget simply was not available to continue the pilot without undermining other areas of service.