[This is going to be a fascinating process to watch – what happens when the ANC tries to take control of the Black Taxi Industry. Now the Black Taxi Industry is pure capitalism in action. The ANC is going to try to replace this with a “controlled” model. I am dying to see what comes out of this. Will we hear cries of corruption later? But more importantly, will this improve or WORSEN the service black commuters get from the Black Taxi Industry which was created by PW Botha, under Apartheid rule.

I am curious to see how this works. I would have a chuckle if we discovered that the new model is worse than the Apartheid creation!! But this Apartheid creation was, I repeat pure capitalism in action, and my guess is, that anything they change could result in worse service for black commuters. The vast majority of the population of this country use this method of transport.

Of course, when this was created by Apartheid, it didn’t cost the Govt one cent. The entire industry was created simply through a legal process and it cost virtually nothing to run because it was Capitalism. But now, the ANC is pumping in R7 billion and creating an agency to watch over it, etc. So I am curious to see how much it is going to cost, plus how inefficient it will end up being. Not to mention the possibility that ANC cronies will get rich during the process while kicking out other black entrepreneurs. Also, what’s the bet that taxi fares might go higher?

This will be a brilliant chance to watch Capitalism Versus Govt control in action. Let’s see what those loud-mouthed, big-talkers, can’t-doers in the ANC can do now… They’ve been mouthing off for so many years, let’s see what, if anything, they can achieve. Jan]

CAPE TOWN ” The first tangible step in government™s long-awaited programme to take dangerous and dilapidated minibus taxis off the road will be launched next month by the transport department.

The department will award the first tender in the R7,7bn national taxi recapitalisation programme within a matter of weeks and will see 16-seater minibus taxis replaced with new 18- and 25-seater buses within the next five years.

Transport Minister Jeff Radebe said yesterday the first of 10000 of the country™s old taxis would be sent to the scrap heap from July, and the process would be completed by the end of the year.

Radebe said his department was adjudicating private sector tenders for the new taxi scrapping agency. The minister expected this to be completed early in April, and the new agency to be operational by July 1.

Radebe said 75% to 80% of all taxis would comply with the new safety requirements by 2010.

Government will control a database of all taxis to ensure the smooth running of the process and its sound regulation.

Among safety requirements are the fitting of seat belts and roll bars to protect passengers.

Tyres and brakes will have to comply with South African Bureau of Standards requirements, Radebe told about 500 Western Cape taxi owners yesterday.

He said government would phase in the programme gradually over the next five to seven years instead using a œbig bang approach. This would allow taxis bought recently to continue operating until it came time to scrap them, he said.

The programme also provides for payment of a R50000 œscrapping fee to operators.

Once the agency starts operating in July, no new taxis will be registered unless they meet the safety requirements of the recapitalisation programme.

Radebe said the process was important to ensure government put in place effective regulations so that œall taxi operators have their dedicated routes.

He urged operators to use their combined purchasing power to negotiate bulk discounts from vehicle manufacturers and to negotiate better financing terms with banks.

Radebe also said the conversion of apartheid-era permits to operating licences had to be completed by May 1.

Operators who had not converted their licences by the deadline would forfeit them, the transport minister said.

Western Cape transport MEC Marius Fransman said up to 93% of taxi owners in the province had completed licence conversions.

His department verifies the licence conversions through a forensic audit.

He said the department was also looking at issues of integrated transport plans involving taxis, buses and trains to include them into one provincial transportation plan.

Source: Business Day
URL: http://www.businessday.co.za/articles/topstor…/p>