Dividing the pie

The establishment of South Africa’s Government of National Unity has seen the appointment of some new government ministers, while the Climate Change Act has been signed and there’s massive uncertainty when it comes to B-BBEE, writes SHARMINI NAIDOO.

In the words of President Cyril Ramaphosa: “In the spirit of partnership and collaboration, the incoming government will work together with other formations to convene a National Dialogue. All parties, civil society groups, labour, business, and other stakeholders will be invited to work together to address the critical challenges facing the nation. We are determined that the principles and programme that underpin the Government of National Unity (GNU) extend beyond the institutions of the State. This is an opportunity for all South Africans to work together more closely and with greater purpose to ensure that we build a South Africa for all.”

The formation of a GNU with 11 parties is an amazing feat and a historic moment for the country. It was the best way to split the proverbial pie. With the GNU slowly becoming operational, we wait to see how the different parties will work together so that we can indeed build a South Africa that is inclusive for all – a country that can enrich the lives of all its people.

Before the dust settles, however, we are sure to go through various teething problems as parties see how far they can push the boundaries, as is the case in any merger. After all, there are different goals, objectives, interests, cultures, backgrounds, trust, ethics, and values that require alignment and compromise before cohesion can be achieved and the new entity can become effective on the ground.

With every new administration comes the announcement of a new cabinet – this time with some familiar faces and others with whom we will have to build new relationships. On 30 June, the president announced the appointment of 32 ministers to accommodate “a broad and diverse alliance of partners”. The National Department of Transport (DoT) now has a new Minister and Deputy Minister – both of whom are from different parties and have not worked together in that portfolio before.

SABOA has reached out to the minister, who at the time of going to print was still wrapping up issues from her previous portfolio. We are hopeful that we can soon formally introduce the association and raise the pertinent issues in the bus industry.

Provincially, we are glad that Kedibone Diale Tlabela, the Gauteng MEC for Roads and Transport, has retained the portfolio, and we look forward to continuing the relationship. However, we will have to start anew with the other MECs and the work will be ongoing to forge effective relationships.

Nature has also played its part in creating havoc and mayhem in the country, with heavy rains, flooding, tornados, and rampaging fires sadly affecting many people. A State of National Disaster was declared in many areas and seems to have fast-tracked the signing into law of the Climate Change Act by the president. The Act is not yet operational and will only come into effect when the president issues a proclamation.

The legislation incorporates the country’s greenhouse gas (GHG) emissions reduction trajectory, and takes precedence over other climate-related laws; all government policies and measures will be required to align with its goals. The Act mandates all levels of government to map, plan for, and address climate adaptation needs, recognising the urgent nature of climate change.

To mitigate emissions, the Act introduces carbon budgets and requires the submission of mitigation plans for the major emitters. It also establishes sectoral emissions targets (SETs) which will impact the transport industry. This will no doubt also open the door to increase carbon taxes.

Road transport has long been identified as the primary source of transport-related CO₂ emissions in South Africa, contributing 91.2% of total transport GHG emissions, according to the 2014 GHG Inventory. The Green Transport Strategy also called for the drastic reduction of emissions in the road sector and the DoT has committed to a net-zero emissions economy by 2050.

Although there are a few electric vehicle projects being tested in the bus industry, there is no all-encompassing solution, and much will have to be done to achieve those targets. This will not come cheaply to the industry and we can expect to see more legislation and mitigation strategies being proposed.

On the B-BBEE front, SABOA received communication from the Integrated Transport Sector Broad-Based Black Economic Empowerment Charter Council (ITSB-BBEECC), thanking the association for its active participation in the stakeholder consultation process and advising that its comments were taken into consideration in the finalisation of the subsector Codes for submission.

There is still no clarity as to whether a document was sent to the Department of Trade, Industry and Competition for publication of draft comment, however, as SABOA has not had sight of the final version of the Sector Code for the bus and coach sector compiled by the Charter Council. This is extremely worrying indeed for the industry, as small, medium, and large operators will all be impacted. The association will update members as the information becomes available.

When all is said and done, the wheels of the bus must “go round and round” for operators to survive. Any legislation that leads to additional cost and/or loss of work impacts the sustainability and viability of the industry… and operators will have no choice but to persevere like the true champions that they are!