‘Enough is enough’: Taxi industry threatens nationwide action over rising costs

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JEREMY MAGGS: South Africa’s taxi industry is warning that escalating fuel, maintenance and vehicle finance costs are pushing operators towards what it terms breaking point, with the National Taxi Alliance (NTA) giving government just two weeks to respond to its demands before considering nationwide protest action.

Now, as I understand it, the industry wants cheaper finance, a temporary fuel rebate and a bigger share of public transport subsidies.

But would shutting down transports simply transfer the pain from taxi operators to millions of commuters? A person in the middle of this debate is Theo Malele, who speaks for the National Taxi Association.

Theo, let me start with the background first of all, you describe this as a national affordability crisis. What has changed so dramatically within the sector that operators can no longer absorb those costs?

THEO MALELE: What has drastically changed is the fact that the minister (Barbara Creecy) has failed like all other ministers have in the past, failed to treat the National Taxi Alliance, as an example, equally with Santaco (South African National Taxi Council), instead, they favoured Santaco and supported [it] administratively and monetarily, that is, and then the NTA is actually being sidelined.

She further went on to promise us things that she was not going to deliver on. She had said that she is a mother and therefore she’s not going to ill treat us. Instead, she will treat us all fairly.

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Then further on, she said that she was prepared to help us get the taxi industry to be reclassified as a de-risked, sector, because currently the taxi industry is charged high prices, and it’s also not getting any rebates whatsoever.

So these are all promises that she had undertaken to actually execute and she has failed to do any of those. So these are the things that have nauseated the National Taxi Alliance and its constituencies that enough is enough.

We can no longer bear to be lied to by these politicians, and let’s rather exert pressure on them. If they don’t treat us fairly, then finally, after the issues of the marches, we may even have to consider the litigious process.

JEREMY MAGGS: Which does beg the question – and let’s get to litigation in just a moment – as to why millions of commuters, your clients, in other words, should be threatened with disruption because the industry’s business model is under financial pressure, or you are simply fighting with the minister because of your allegation that she favours Santaco.

THEO MALELE: Well, look, the taxi industry is actually helping government’s citizenry to move from point A to point B, so like all other public transport operators, trains, buses, that are actually getting subsidies, having billions and billions, why is it that the majority public transport mover is not getting any support whatsoever from government’s side?

So basically, this is not a deliberate ploy by the taxi industry to disrupt the services meted out to its passengers.

It is a way of also showing government that we can no longer bear the conditions under which the government makes us operate.

JEREMY MAGGS: If government intervenes to make taxi finance cheaper, are you not effectively asking taxpayers, though, simply to underwrite private business?

THEO MALELE: No, no, not exactly. The taxi industry serves a critical role of transporting the masses like buses do. Why is it that buses and trains are getting that kind of support and yet the [taxi] industry would be sidelined, even though it carries the masses of people.

Let us level the playing field and only then can we then say, let the customer make a decision as to which mode of transport would they like to actually utilise, and that is, subsidising the passenger will also make this industry competitive.

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JEREMY MAGGS: You are blaming government, but you also say, Theo Malele, that a new diesel [Toyota] Quantum costs around R606 000, repayments reaching R18 000 a month. Is the real problem not vehicle prices, interest rates and operators just carrying too much debt, instead of it just being a government problem?

THEO MALELE: No, no, it is a fact. If we were getting a subsidy like all these other modes, maintaining our businesses that actually services the masses of this country wouldn’t be much of a burden. But the fact that we’re not getting any support whatsoever, we are forever found wanting.

JEREMY MAGGS: You want a 12-month fuel rebate, as I understand it. Theo, why should taxi operators receive relief that ordinary motorists, small businesses and delivery companies do not? Why should you be treated as favourites?

THEO MALELE: Currently the minority public transport movers are getting support from government, and we are not getting any subsidy whatsoever.

Like I said earlier on, let the playing fields be levelled. We are very much willing to comply with any form of regulation that can be brought to the fore.

We are saying if government can actually do a request for quotation, professionals could come in, give us a gadget that will ensure that the management of refuelling vehicles, it’s been done properly and there is no shrinkage whatsoever.

Let the playing fields be levelled.

JEREMY MAGGS: If that’s the case then, if you want the playing fields levelled, would your alliance then accept formal contracts, audited passenger data, tax compliance and enforceable safety standards as a condition for receiving a subsidy?

THEO MALELE: Absolutely, absolutely. Hence, we say if the passenger gets subsidised, then it should be the passenger’s prerogative to decide on which mode to utilise along a particular corridor on a set day.

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So we will not be dictating, but instead we will also have to come through as a competitive business that provides a service, that should attract passengers to ourselves.

JEREMY MAGGS: Just a final question, before threatening national action and even legal action, as you told me a little earlier, have you exhausted all negotiation with the transport minister, with the Treasury, with lenders, and also the National Credit Regulator?

THEO MALELE: We have been speaking to the National Department of Transport.

We spoke to all ministers about the frustrations that the taxi industry has been facing throughout the years, but clearly our cries have fallen on deaf ears.

So we have tried.

Like I said in my opening address, that even the minister herself had promised that she would bring all these players under one roof and discuss this aspect of de-risking the taxi industry, which is something that never, ever materialised.

JEREMY MAGGS: Well, rest assured, we will be reaching out to the Transport Minister, Barbara Creecy. In the meantime, my thanks to Theo Malele, who speaks for the National Taxi Association.

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