The effect of E-tolling on Gauteng’s
commerce (and indirectly everything else)
We’ve all been submitted to the on-going
media sagas of E-tolling, the political uncertainties, the economic threats,
the suspicion of corruption and the social front-pagers. Every Gautenger over the age of 18 now
understands the basics of the program; yet nobody understands the complexities
due to the convenient lack of information that exists. However lets come down
to the bottom line for a moment and consider what this E-tolling business truly
means for South African business.
Lets consider the trucking and transport
industry, an industry that is inextricably linked to the pillars of economies
inasmuch that almost 99% of local distribution is achieved on the back of
trucks, bakkies and vans.
The challenges that E-tolling poses to
transport companies are plentiful and intricate.
Billing, there are a few fundamental issues
with the regard to billing; lets use a national logistics company as an
example. Spartan Truck Hire and Logistics has been in operation for over 30
years, has over 1000 vehicles and 8 branches around the country. A large part
of this business comes from truck rental, ad hoc hires to the FMCG,
construction and other industries.
Now the company will rent a vehicle to a
client who keeps the truck for 2 months, making deliveries in and around Gauteng
and logs up an E-toll bill to the tune of R13 000. This amount is now billed to the Spartan company,
because the vehicle is in their name, and therefore becomes payable within 7 days;
failing to do so will result in expensive penalties and a possible license
revoke.
The problem arises as to the collection of
this money, So the company can pay the due amount within 7 days, but may wait
up to 3 months for payment from the client, if ever.
This applies to every truck and car rental agency
operating within Gauteng, Europcar, Hertz, Avis and corporations such as
Spartan Truck Hire and Logistics will be editing their internal processes very
carefully preceding the implementation of E toll.
Another major issue with regard to the
billing process is this- some South Africans have received electricity bills
for R200 000 for their 2 bedroom apartment, what is stopping E-toll from making
the same mistakes?
At first, the idea was that E-toll would
have the right to access your personal bank account to retrieve any outstanding
payment…thank the lord that was reluctantly done away with a few months back.
These billing issues lead to another major challenge
for Gauteng commerce, which is one of administration. It seems to me that any
road transport company is going to be locked in payment disputes from 9 to 5.
Companies will have to employ E-toll teams that will spend their lives
collecting, paying, fighting, prosecuting, defending and crying-all these
expenses for no added income? I can tell you without thinking who’s going to
pick up the bill. Consumers, individuals and families are going to be
compensating for their E-tag in many more ways than one.
The introduction of E-tolling may not affect
larger corporations as much as it will the smaller enterprises and start-ups,
who will have to make provision for a whole lot more of bad debt and avoid a
gauntlet of solvency obstacles.
Our government is meant to be encouraging
free enterprise and destroying those barriers to entry, not creating them.
There is nothing worse than to hear someone
saying “I think the tolling idea is great because it will provide more funds to
look after the poor and put South Africa on a path to a first-world status”
First of all, 80% of the funds will be
misappropriated or be channelled toward some foreign beneficiary that gave away
his Bugatti in order to get the contract.
Second of all, we’re not a first-world
nation, not even close. Yes, in London and other such cities tolling works
because it incentivises people to use public transport, they therefore have a
choice to pay the fee or not, something we don’t have…and no the Gautrain is
not public transport.
Regarding the recent news of the 1 month
postponement, and possible complete disbandment, it’s a pleasure to see that
we, as South African citizens have a discovered a voice and a power which is
amplified by our judicial system whereby we can face government head-on with
our newly found weapon, the constitution.
Hold on, Its going to be a bumpy ride!
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