No amount of champagne, cakes or booze-fuelled parties can mask the reality of the what the ANC has become.
Partly cloudy. Mild.
Clem SunterOne of the reasons I made it up the hierarchy at Anglo was an ability I acquired from the head of the mining economics department to evaluate projects. In fact, the first one which I became involved in using this skill was the Ergo project to treat all the old slimes dams on the East Rand. It turned out to be a spectacular success from a financial point of view because of a factor entirely beyond the control of any member of the feasibility study team - the gold price which more than doubled by the time the plant was commissioned in 1978 and then went on to average over $600 an ounce in 1980. Naturally, despite this good fortune, we happily accepted the full credit for the project's success!We are now halfway through the period of consultation on the latest gazetted rates for e-tolling, and I have not seen any detailed financial projections for the first 20 years around which a public debate can take place. I am particularly sensitive to this issue having been firmly admonished on this very website for initially being in favour of e-tolling. The criticism which swung me to the other side was the sheer cost of raising money this way to pay off the R20bn loan Sanral had taken on to effect the improvements to the Gauteng road network. Why not redeem the loan by an increase in fuel levies which would not attract a huge administration cost, the detractors persuasively argued.Annual running costs for e-tolling are estimated at anything between R1.1bn and R1.7bn. Now that the tariffs have been reduced, a perfectly reasonable question to ask is what is the level of income forecast over the first few years. If it is less than the costs, it will only add to the problem of repaying the loan as additional credit will have to be procured to cover the losses. It also raises the suspicion that the initial tariffs are just to get the show on the road and will be hiked astronomically once the system is bedded down.The other issue is delinquency rate, namely the percentage of drivers who do not register as e-tag users and do not settle the much higher bills that are sent to them. I have heard that a delinquency rate of 7% has been assumed at the beginning; but judging from the outrage expressed on this website that percentage could be way too low. Have sensitivity studies been done to show the impact on the bottom line of differing delinquency rates? Furthermore, there must be a delinquency rate above which the whole project becomes unviable as a result of the number of photographs, statements and summonses being sent out. It could even cause the postal system to collapse.Thus, I have one earnest request. In the remaining days during which the public are allowed to comment on the e-tolling exercise, please put the feasibility study covering the next 20 years on the table for analysis and discussion. Otherwise, the accusation will be levelled that the call for external input was a complete charade: a matter of going through the motions before the inevitable. Send your comments to Clem
Disclaimer: News24 encourages freedom of speech and the
expression of diverse views. The views of columnists published on
News24 are therefore their own and do not necessarily represent the
views of News24.
24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.
And it’s not chicken nuggets!
And guess which is SA's favourite first names!
Here's what happens to your car when you crash at 193km/h.
From the top student of 2019 to the province with the best matric results.
Upcoming Volkswagen Golf 8 seen driving in the Western Cape.
Why not switch up your playlist?
Tim Tebow is on his way to SA!
Add a few changes to your workout routine?
Cape TownemergeR560.00 - R580.00 Per Hour
Cape Town Southern Suburbs1st Contact T/A Sable International
Cape Townemerge R580 000.00 - R620 000.00 Per Year
R 3 750 000
R 6 999 000
We subscribe to the Press Code.
You choose what you want
News24 on Android
Get the latest from News24 on your Android device.
Terms and Conditions
24.com Terms and Conditions - Updated April 2012
Creating your profile will enable you to submit photos and stories to get published on News24.
This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.