Toll project 'brings no benefit'
2008-04-30
THE planned N1-N2 Winelands toll highway project will add to the cost of doing business without producing any significant benefit for the Western Cape, according to the Cape Town Regional Chamber of Commerce and Industry. In a letter of objection to the South African National Roads Agency, the Chamber also warns that the two toll roads will distort economic development in the region and unfairly disadvantage many people who will have no option but to use the roads. Albert Schuitmaker, Executive Director of the Chamber, says there is no doubt that major road improvements are required, particularly in the Helderberg area, but the most equitable way to fund them would be through the fuel levy which would spread the burden evenly throughout the Cape Town economic region. It would also ensure that payment was in proportion to road usage to meet the “user pays” principle in the broader sense. He pointed out that both routes were used to deliver goods, especially agricultural products, to the harbour for export so the tolls would have an adverse impact on a vital industry in the Province. This would affect rural communities and jobs in areas where they were desperately needed. Industries in the Bolandwould be affected as their delivery costs would go up and they would have to compete with companies in areas in the Peninsula which would not feel the impact of toll fees. Schuitmaker said tolls were the most expensive way to finance roads. The present toll proposals were the product of an unsolicited bid and promised attractive returns for the toll company. “While we believe that companies should be in business to make profits, in this case the profits will represent an added cost to transport operators.” He said municipalities were concerned that tolls would force motorists to use alternative routes resulting in ore wear and tear on their roads. In addition, the cost of collecting the toll fees as well as the administration, the transporting of cash and security costs would add to the burden. None of these costs would arise if a fuel levy was used. “We believe it is fundamentally wrong to have toll roads in the economic catchment area of a major city distorting the local economy,” the Chamber said.
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