Vote 12 - Transport

387

VOTE 12 Transport Operational budget R 3 754 508 000 MEC remuneration R 774 000 Total amount to be appropriated R 3 755 282 000 Responsible MEC Mr B.H. Cele, MEC for Transport and Community Safety & Liaison Administrating department Transport Accounting officer Head: Transport

1. Overview

Vision

The KwaZulu-Natal Department of Transport’s vision is Prosperity through mobility.

This means that all activities of the department and the manner in which the department delivers services to communities should increase the wealth and quality of life of all citizens of the province.

Mission statement

The mission of the department is to provide the public with an integrated and accessible road and public transport infrastructure, to promote road and public transport safety and ensure that, in delivering on its mandate, the department meets the developmental needs of this province.

Furthermore, the department strives to promote transparent and accountable government, plan in accordance with the needs of its customers, and ensure effective, efficient and transparent delivery of services through appropriate involvement of the public, and through regular and accurate reporting.

Strategic objectives

The strategic community outcomes of the department are as follows:

• An equitable, affordable, safe and well managed transportation system;

• An equitable and economically empowered construction and transportation industry;

• Improved quality of life;

• Good governance; and

• Community supported transportation service delivery.

Core functions

Turning the vision of the department into reality can only be achieved by focusing the attention and energy of all employees and relevant stakeholders on the performance of its core functions, namely:

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Road infrastructure

The department’s mandate is to construct and maintain a balanced road network that meets the mobility needs of the citizens of KwaZulu-Natal, and supports the national and provincial growth and development strategies.

Public and freight transport

The department’s mandate is to regulate public transport and ensure public access to safe, efficient and affordable public transport. The department is further mandated to facilitate development in the freight transport industry and the minimisation of negative externalities resultant from the transport of freight.

Traffic management

The department’s mandate is to create a safe road environment through the reduction of road accidents. The main services rendered by this programme include road traffic enforcement, road safety education and the analysis and re-engineering of hazardous locations, and the registration and licensing of vehicles.

Own revenue

The department’s revenue, amounting to an estimated R941.8 million in 2008/09, accrues to the provincial revenue fund. This revenue is largely derived from tax receipts collected in terms of the Road Traffic Act.

Legislative mandate

The Department of Transport is responsible for the management of the transportation system in KwaZulu-Natal. This includes the construction, upgrading, maintenance and control of the provincial road network, the regulation, management and overall control of public and freight transport operations, the registration and licensing of vehicles and drivers, the regulation of traffic, the implementation of road safety campaigns and awareness programmes, and the management of the provincial vehicle fleet.

The key legislative mandates of the department are derived mainly from the following legislations:

• National Road Traffic Act (Act No. 93 of 1996)

• KZN Provincial Roads Act (Act No. 4 of 2001)

• National Roads Act (Act No. 54 of 1971)

• Administrative Adjudication of Road Traffic Offences Act (Act No. 46 of 1998)

• Cross-border Act (Act No. 4 of 1998)

• KZN Provincial Minibus Taxi Act (Act No. 4 of 1998)

• KZN Road Traffic Act (Act No. 7 of 1997)

• National Land Transport Transition Act (Act No. 22 of 2000)

• Public Finance Management Act (Act No. 1 of 1999, as amended) and Treasury Regulations

• KZN Provincial Supply Chain Management Policy Framework (2006)

• Preferential Procurement Policy Framework Act (Act No. 5 of 2000)

2. Review of the 2007/08 financial year

Section 2 provides a review of 2007/08, outlining the main achievements and progress made by the department during the year, as well as providing a brief discussion on challenges and new developments.

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The department has an obligation to ensure a balance between the adequate maintenance of the Provincial Road Network with its mandate of ensuring equitable access to all areas of the province within its funding constraints. To this end, during 2007/08, the department upgraded a total of 84 kilometres of gravel road to blacktop standard, upgraded 360 kilometres of new gravel road, and constructed 4 new bridges, 6 new pedestrian bridges and 59 causeways. With regard to maintenance, the department resealed approximately 180 kilometres of tarred roads, rehabilitated approximately 191 kilometres of surfaced road and increased the number of Zibambele contractors to 36 000.

The safe movement of freight and people remains a serious concern, and strategies to improve public safety have been undertaken in line with the department’s mandated developmental goal to regulate public transport and to ensure public access to safe, efficient, regulated and affordable modes of transport. The department has an integrated approach including transport infrastructure, public transport, freight transport, road safety and traffic management working together to achieve a common goal of saving lives. In 2007/08, the department continued to clamp down on overloaded vehicles, which are the main cause of damage to the road network. This was done through the establishment of a new weighbridge, and continued enforcement at existing weighbridges. In addition, the expansion of the ‘self regulation programme’ attained excellent results in the decrease in overloading statistics, and currently the timber and sugar industries are involved in this programme in KZN.

The department embarked on capacity building of its workforce. The Workplace Skills Plan was approved by the Construction Education and Training Authority (CETA) and the Public Service Education and Training Authority (PSETA), and implementation thereof is progressing well. In this regard, Skills Development Co-ordinators and Adult Basic Education and Training (ABET) educators were trained on the new curriculum in November and December 2007, respectively. The department also fulfilled its obligation in terms of human resource development, by appointing 31 interns in 2007 and continuing with financial assistance to 259 in-service employees and 13 prospective employees under the bursary scheme.

The Provincial Spatial Economic Development Strategy (PSEDS) emphasises the importance of the Dube TradePort for the economic development of the province. During 2007/08, the department started the design and planning of the roads required to serve the Dube TradePort and the King Shaka International Airport (KSIA). Funding was allocated over the 2008/09 MTEF for the construction in time for the 2010 Soccer World Cup.

The department launched a new Expanded Public Works Programme (EPWP) in 2007/08, in alignment with Treasury requirements relating to the infrastructure conditional grant allocation and the PSEDS priority, focusing on the need to create jobs and reduce poverty. The programme involved labour-based alien vegetation clearing in the road reserves and labour-based drain clearing work. This created work opportunities for approximately 69 grade 1 contractors, employed 550 persons, and should create 45 000 person days of work.

The department successfully launched the Siyazenzela programme, in partnership with the Hibiscus Coast Municipality. This is a community-based waste management programme in five municipalities under Project Consolidate, which is a support programme devised to address key challenges currently faced by many municipalities throughout the country. The focus of the programme will be on improved integration and co-ordination of provincial programmes and building of local government service delivery capacity, through well co-ordinated national and provincial interventions.

The Vukuphile Learnership, a road construction and building maintenance learnership at NQF levels 2 and 4, involving 60 students, was also implemented during 2007/08.

The department further developed the Black Economic Empowerment (BEE) road construction and maintenance industry, through the provision of accredited business skills training for 150 Vukuzakhe contractors. However, funding promised from the CETA for this purpose did not materialise, and hence the learnership programme did not proceed. Attempts to secure funding from the National Skills Fund (NSF) through the Office of the Premier proved unsuccessful, as their funding was already allocated to other projects. The department has reprioritised its own funding to undertake the learnerships for the 150 Vukuzakhe contractors in the 2008/09 financial year.

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Finally, to improve co-ordination between the department and other spheres of government within the province, the department is in the process of developing a White Paper on Provincial Transport Policy. The department continued with numerous consultative sessions with all stakeholders in the provincial transport sphere. A Draft Green Paper was developed, and further consultation occurred in respect of the document. Political direction was also received from the MEC for Transport, Community Safety and Liaison in respect of certain issues contained in the draft document. In addition to this, the department continues to participate in provincial structures, which ensures co-ordination within the province.

3. Outlook for the 2008/09 financial year

Section 3 looks at the key focus areas of 2008/09, outlining what the department is hoping to achieve during the year, as well as briefly looking at challenges and proposed new developments.

The department will continue to be committed in 2008/09 to its mandated obligation to ensure a balance between the adequate maintenance of the provincial road network with its mandate of ensuring equitable access to all areas of the province, as well as the provision of non-motorised transport facilities.

The EPWP-based programmes will continue in 2008/09. Thus, it is envisaged that 130 Grade 1 contractors will be employed for clearing the road reserves, labour-based drain clearing and other labour-based maintenance activities, and the construction of 10 pedestrian bridges will be undertaken.

The department will promote BEE further by developing a BEE score card for the department, in consultation with all departmental programmes. The department will also ensure alignment of the Vukuzakhe database to the Construction Industry Development Board (CIDB) and Black Economic Empowerment Acts, through assessment and assistance to contractors who are not registered.

During 2008/09, the department will continue to address the skills development of its staff and address the scarcity of certain skills by undertaking the following:

• Implement 100 technical leanerships, who will graduate in 2009;

• Intensify Human Resource Development structures to promote the Workplace Skills Plan development and implementation, so that efficiency is enhanced;

• Pursue the possibility of employing additional mathematics educators for the ABET programme;

• Finalise retention and bursary policies to support the department’s skills development commitment;

• Identify learnerships in the areas of Finance, Administration, Human Resource Management, Information Technology, etc., to improve employability in the workplace. It is estimated that ten such learnerships will be awarded during 2008/09; and

• Award bursaries for the 2008 academic year with the intention of awarding more bursaries to prospective female employees, in line with one of the department’s obligations in respect of women empowerment.

The development of the White Paper on Provincial Transport Policy will be finalised in 2008/09, with the approval, publishing and distribution thereof.

The department will intensify its road safety and traffic management mandates with the introduction of the points demerit system, in addition to the existing traffic management programmes. Under the proposed points demerit system, drivers and operators will incur penalty points for offences committed. The points will be allocated according to the seriousness of the offence, and will be managed through the electronic National Traffic Information System (eNaTIS), which is now operational. In terms of the points demerit system, offences will incur between one and five points, depending on severity. Once 12 points are incurred, a driving license, professional driving permit or operator card may be suspended for a minimum of three months. After a third suspension, the license, permit or card is cancelled and the holder

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will have to re-apply for a license and be re-tested. Furthermore, habitual or serious offenders can be banned from driving for life by a court of law.

The department will also fulfil its mandate on the planning and provision of urban and rural public transport facilities, conducting transport studies, the provision of transport planning frameworks and the management of public transport services and the public road network. This will be effected by:

• Redesigning subsidised bus contracts, developing and improving public transport infrastructure in some districts;

• Designing and constructing Public Transport Intermodal facilities at the Stanger, Pietermaritzburg and Port Shepstone nodes;

• Providing support to the Provincial and Local Public Transport Passenger Associations;

• Establishing a Transport Academy that will ensure that all freight and public transport operators and drivers are capacitated in business skills, customer care and advanced driving skills;

• Maintaining, calibrating and repairing weighbridges; and

• Regulating and finalising public transport operators (taxis, meter taxis and buses).

4. Receipts and financing

4.1 Summary of receipts

Table 12.1 gives the sources of funding of Vote 12 over the seven-year period 2004/05 to 2010/11. The table also compares actual and budgeted receipts against actual and budgeted payments.

The department receives a provincial allocation in the form of an equitable share, and a provincial infrastructure conditional grant for the maintenance and construction of road infrastructure in the province, both of which have increased significantly over the seven years under review. The deficits noted in 2004/05 and 2005/06 are mainly attributable to the write-offs of thefts and losses. In 2006/07, the deficit of R2.4 million was due to unforeseen costs incurred as a result of storm damage to roads in December 2006 and January 2007. Also reflected in Table 12.1 is the department’s projection to over-spend its 2007/08 Adjusted Budget by R1.6 million.

Table 12.1: Summary of receipts and financing

Audited Audited Audited 2004/05 2005/06 2006/07 2008/09 2009/10 2010/11

Provincial allocation 1 522 053 1 964 411 2 188 639 2 546 855 2 547 069 2 547 069 3 092 580 3 698 442 3 868 088 Conditional grants 282 594 315 121 348 194 573 012 573 012 573 012 662 702 834 737 896 084

Infrastructure Grant to Provinces 282 594 315 121 348 194 573 012 573 012 573 012 662 702 834 737 896 084 Total 1 804 647 2 279 532 2 536 833 3 119 867 3 120 081 3 120 081 3 755 282 4 533 179 4 764 172 Total payments 1 810 262 2 279 024 2 539 187 3 119 867 3 120 081 3 121 635 3 755 282 4 533 179 4 764 172 Surplus/(Deficit) before financing (5 615) 508 (2 354) - - (1 554) - - - Financing

of which Provincial roll-overs - - - - - - - - - Provincial cash resources 5 000 (615) - - - - - - -

Surplus/(deficit) after financing (615) (107) (2 354) - - (1 554) - - -

Main Budget

Estimated actual Medium-term estimates

2007/08

Adjusted Budget R000

Outcome

4.2 Departmental receipts collection

Table 12.2 below indicates the estimated departmental receipts for Vote 12. Details of departmental receipts are presented in Annexure – Vote 12: Transport.

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Table 12.2: Details of departmental receipts


Tax receipts 515 828 624 302 717 899 745 000 745 000 751 000 825 830 887 822 954 408 Non-tax receipts 94 977 70 625 90 780 89 100 89 100 93 718 97 100 109 080 115 625

Sale of goods and services other than capital assets 73 193 50 422 70 989 61 000 61 000 61 000 67 000 75 266 79 782 Fines, penalties and forfeits 21 611 20 158 19 724 28 000 28 000 32 618 30 000 33 701 35 723 Interest, dividends and rent on land 173 45 67 100 100 100 100 113 120

Transfers received - - - - - - - - - Sales of capital assets 2 003 6 502 1 507 16 000 16 000 16 000 18 000 20 221 21 434 Financial transactions 1 403 1 820 2 061 900 900 1 390 900 1 011 1 072 Total 614 211 703 249 812 247 851 000 851 000 862 108 941 830 1 018 134 1 092 539

R000 Outcome Main

Budget Estimated

actual Medium-term estimates

2007/08

Adjusted Budget

As reflected in the table above, the majority of the department’s revenue is derived from Tax receipts collected in terms of the Road Traffic Act. This revenue consists of motor vehicle registration and licensing fees, and the sale of personalised and specific number plates. Other revenue collected consists of Non-tax receipts such as traffic fines resulting from road traffic infringements and the Sale of capital assets, which is derived from the sale of vehicles from the provincial vehicle fleet and the sale of departmental plant.

There is a disparity in license fees between the nine provinces. Prior to any uniformity of license fees being considered, it is imperative that all provinces agree on such uniformity, whereafter legislation must be amended to support the same. The issue of uniform license fees is being discussed at inter-provincial and national levels as well as with the Road Traffic Management Corporation.

The department is anticipating to slightly over-collect its budgeted revenue for the 2007/08 financial year. The projections of revenue for the 2008/09 MTEF period are based on the adjusted budget for revenue collections for 2007/08, increased by the expected annual tariff increases over the MTEF, and also adjusted by the expected change in the vehicle population over time. The increased tariffs are approved by the MEC for Transport and the Provincial Treasury. This practice will continue until motor vehicle license fees are aligned to other provinces and international best practice.

4.3 Agency receipts

Table 12.3 presents details of the agency receipts received by the Department of Transport. The department does not receive any donor funding.

Table 12.3: Agency receiptsName of Agency receipt


Agency receipt 460 369 490 787 524 227 555 688 577 420 577 420 610 173 670 681 710 922 Bus Subsidies 452 000 482 000 515 000 546 000 567 732 567 732 600 000 660 000 699 600 Overload Control 8 369 8 787 9 227 9 688 9 688 9 688 10 173 10 681 11 322

Total 460 369 490 787 524 227 555 688 577 420 577 420 610 173 670 681 710 922

Main budget


2007/08

Adjusted budget

The department receives funding from the National Department of Transport on an agency basis, aimed at subsidising bus transport in the province. It also receives funding from the South African National Roads Agency to cater for an extended overload control function on the national road network in the province.

The 2007/08 Adjusted Budget of R567.7 million reflected against the category Bus Subsidies includes a roll-over of R21.7 million unspent from the previous year’s receipts. The increase in this category from 2007/08 to 2008/09 and from 2008/09 to 2009/10 is higher than the inflationary increase. This is mainly attributed to the projected high fuel prices, which affect the bus transport industry.

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5. Payment summary

This section summarises the expenditure and budget estimates for the vote in terms of programmes and economic classification. Details of the economic classification per programme are presented in Annexure – Vote 12: Transport.

5.1 Key assumptions The department applied the following broad assumptions when compiling the budget:

• Although the department’s budget has grown over the years, the level of funding is still inadequate considering the backlog with regard to road infrastructure. This has created a condition whereby the department consciously chooses to fund a road programme that minimises the further deterioration of the primary road network, while at the same time maximising the allocations needed to provide isolated rural communities with appropriate access;

• The zero-based budgeting method was adopted for 2007/08 and the incremental budgeting approach was used for the 2008/09 MTEF;

• Provision was made for the inflationary wage adjustment for the three years of the MTEF, the annual 1 per cent pay progression, and the filling of a number of vacancies; and

• All inflation related increases are based on CPIX projections, as well as on the construction industry inflation rate of approximately 10.8 per cent.

5.2 Additional allocation for the 2006/07 to 2008/09 MTEF

Table 12.4 shows additional funding received by the department over the three MTEF periods: 2006/07, 2007/08 and 2008/09. Note that the table reflects only the provincial additional allocations, and excludes additional allocations in respect of conditional grants.

The purpose of such a table is two-fold. Firstly, it shows the quantum of additional funding allocated to the department in the past and current MTEF periods. Secondly, it indicates the policies and purposes for which the additional funding was allocated.

The carry-through allocations for the 2006/07 MTEF period (i.e. for the financial years 2009/10 and 2010/11) are based on the incremental percentage used in the 2007/08 MTEF and 2008/09 MTEF. A similar approach was used for the carry-through allocations for the 2007/08 MTEF period.

It is important to explain how this table should be read and interpreted. The total additional funding in any given year shows how much a department received in addition to the increases which already existed in it’s 2005/06 MTEF baseline. The sum of the total additional provincial allocations across the five financial year’s shows cumulative amounts received over and above the cumulative baseline budget for that period.

It is clearly evident from Table 12.4 that substantial additional funding was allocated to Vote 12 from 2006/07 onwards. The additional allocations over the three MTEF periods will contribute significantly toward the department’s core mandate to address provincial priorities such as poverty alleviation and employment through the EPWP-based projects.

The increase in funding over the 2006/07, 2007/08 and 2008/09 MTEF periods is primarily to address backlogs that exist in the renewal and maintenance of roads in the province, as well as for the construction of access roads and bridges to link rural communities to public facilities, such as schools, clinics, police stations, etc. The department received a once-off allocation of R10 million in 2006/07 for an anti-corruption and fraud prevention initiative in the drivers’ license testing stations. During the 2006/07 Adjustments Estimate, additional funding of R121.8 million was allocated to the department. Of this amount, R21.8 million was for spending pressures in Umzimkhulu and a once-off allocation of R100 million was for road infrastructure development in the province.

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Table 12.4: Summary of additional provincial allocations for 2006/07 to 2010/11 R000 2006/07 2007/08 2008/09 2009/10 2010/11

2006/07 MTEF period 191 800 250 000 500 000 537 500 569 750 Renewal of roads - 150 000 200 000 215 000 227 900 Maintenance of roads 30 000 50 000 200 000 215 000 227 900 Access to community facilities - Road and Bridges (New works) 30 000 50 000 100 000 107 500 113 950 Anti-corruption & Fraud prevention 10 000 - - - - 2006/07 Adj. Estimates - funding for infrastructure and Umzimkhulu 121 800 - - - -

2007/08 MTEF period ¹ - 150 675 128 426 399 207 423 159 Net financial implication of demarcation (Net of Umzimkhulu and Matatiele) 110 675 128 426 114 400 121 264 Dube TradePort (R102 - Ballito and M4 - R102) - - 84 807 89 895 Maintaining the existing road network 20 000 - 150 000 159 000 Access to community facilities - Road and Bridges 20 000 - 50 000 53 000

2008/09 MTEF period ¹ - - 167 483 292 823 258 139 John Ross Highway 60 000 114 100 66 000 Construction & upgrading of supporting road network to KSIA and Dube TradePort 82 000 137 200 57 000 Access to community facilities - Pedestrian Bridges 10 000 20 000 100 000 Personnel inflation adjustment 6 540 11 007 13 320 Government Employees Medical Scheme 8 943 10 516 21 819

Total 191 800 400 675 795 909 1 229 530 1 251 048 1. Excludes function shift from Provincial Treasury i.r.o banking and tax function 214 258 268 277

In 2007/08, the bulk of the additional funding was in respect of Umzimkhulu, to be used for improving service delivery within the area to the same level as other areas of the province. An amount of R84.8 million was allocated in 2009/10 for linking the existing road network to the Dube TradePort (R102 – Ballito and M4 – R102), which is one of the largest infrastructure developments in the province, with the highest priority. In the 2008/09 MTEF, further amounts have been allocated to the department for the construction and upgrading of the supporting road network to the Dube TradePort and the KSIA.

The construction of the John Ross Highway, a project of strategic importance for the province, was allocated additional funding totalling R240.1 million over the 2008/09 MTEF. The department also received an additional allocation for pedestrian bridges, which increases significantly to R100 million in 2010/11.

Finally, a personnel inflationary adjustment in respect of the annual salary increase and the government’s contribution towards the Government Employees Medical Scheme (GEMS) were also provided over the 2008/09 MTEF.

5.3 Summary by programme and economic classification

The services rendered by the department are categorised under five programmes, which conform to the requirements of the transport, roads and public works sector. The mission of the department is to provide the public with an integrated and accessible road and public transport infrastructure and to promote road and public transport safety, through the interaction of the department’s five programmes.

Tables 12.5 and 12.6 provide a summary of the vote’s expenditure and budgeted estimates over the seven-year period, by programme and economic classification, respectively.

Table 12.5: Summary of payments and estimates by programme


1. Administration 118 199 112 257 127 044 149 173 150 387 150 387 159 786 168 874 180 216 2. Road Infrastructure 1 333 407 1 682 010 1 856 013 2 359 229 2 360 229 2 360 229 2 963 668 3 695 133 3 869 809 3. Transportation 30 967 34 097 83 384 70 788 67 788 67 788 79 037 83 067 87 755 4. Traffic Management 265 894 370 433 389 147 434 238 435 238 436 776 436 649 463 768 496 835 5. Community Based Programme 61 314 79 969 83 398 106 439 106 439 106 439 116 142 122 337 129 557 Special Functions 481 258 201 - - 16 - - - Total 1 810 262 2 279 024 2 539 187 3 119 867 3 120 081 3 121 635 3 755 282 4 533 179 4 764 172 Note: Programme 1 includes MEC remuneration Salary: R618 566, Car allowance: R154 641

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

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Table 12.6: Summary of payments and estimates by economic classification


Current payments 756 235 886 083 1 023 704 1 059 426 1 044 101 1 054 128 1 197 884 1 351 781 1 439 423 Compensation of employees 367 959 389 822 405 118 515 399 500 613 500 613 558 779 599 877 642 406 Goods and services 387 777 495 960 618 358 544 027 543 488 553 495 639 105 751 904 797 017 Other 499 301 228 - - 20 - - -

Transfers and subsidies to: 10 145 14 003 20 858 22 388 22 388 13 919 21 405 21 364 23 307 Local government 1 408 1 575 10 369 21 491 18 491 9 095 11 500 11 550 11 600 Non-profit institutions - - 51 - - - - - - Households 2 100 5 466 3 719 704 3 704 4 154 9 105 8 964 10 795 Other 6 637 6 962 6 719 193 193 670 800 850 912

Payments for capital assets 1 043 882 1 378 938 1 494 625 2 038 053 2 053 592 2 053 588 2 535 993 3 160 034 3 301 442 Buildings and other fixed structures 994 437 1 342 242 1 428 864 1 970 048 1 988 225 1 988 225 2 464 741 3 084 091 3 220 942 Machinery and equipment 49 375 32 527 65 624 68 005 65 367 65 313 71 252 75 943 80 500 Other 70 4 169 137 - - 50 - - -

Total 1 810 262 2 279 024 2 539 187 3 119 867 3 120 081 3 121 635 3 755 282 4 533 179 4 764 172 1. Included under Payment for capital assets are capitalised payments for: Compensation of employees 100 415 113 602 171 199 180 157 180 157 180 157 220 218 240 224 252 235 Total Compensation of employees 468 374 503 424 576 317 695 556 680 770 680 770 778 997 840 101 894 641

Goods and services - - - 355 695 355 695 355 695 375 596 415 596 436 375 Total Goods and services 387 777 495 960 618 358 899 722 899 183 909 190 1 014 701 1 167 500 1 233 392

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

There have been significant annual increases in the budget allocation to Vote 12 over the seven-year period under review. These increases in funding are specifically related to the department’s investment in the provincial road network, which are housed under Programme 2: Road Infrastructure and against the categories Goods and services and Buildings and other fixed structures.

The slight increase in the 2007/08 Adjusted Budget from the Main Budget is due to an additional allocation transferred from Vote 6: Provincial Treasury following the decentralisation of the Tax and Banking functions. This additional amount of R214 000 (and carry-through costs over the 2008/09 MTEF) was allocated to Programme 1: Administration against the category Compensation of employees.

The higher expenditure reflected against Programme 3: Transportation in 2006/07 compared to 2005/06 and 2007/08 can be attributed to funding reprioritised to this programme during the 2006/07 Adjustments Estimate to cater for the challenges in the public transport arena in the build-up to 2010, as well as to address an urgent intervention in the eThekwini bus industry.

The decrease in the 2007/08 Adjusted Budget against Programme 3: Transportation was due to a virement of R3 million from this programme and the category Transfers and subsidies to: Local government (over-budgeted for) to Programmes 1, 2 and 3 against the category Transfers and subsidies to: Households, to cater for voluntary severance packages and claims against the state. Furthermore, the department is projecting to under-spend against Transfers and subsidies to: Local government in 2007/08. The department has thus re-prioritised its budget between the categories Transfers and subsidies to: Local government and Households over the MTEF, to adequately budget for the claims against the state.

The relocation of the Road Traffic Inspectorate (RTI) offices to the Merchiston Building and the investments in the computerised license testing project explain the high Adjusted Budget and Estimated Actual in 2007/08 against Programme 4: Traffic Management, compared to 2006/07 and 2008/09.

With regard to Programme 5: Community Based Programme, the significant increase in the 2007/08 financial year and over the 2008/09 MTEF compared to 2006/07 is due to an increase in the allocation for learnerships in support of the EPWP. The increase in expenditure against Programme 5 in 2005/06 was due to the costs involved in starting the Zibambele saving club.

The category Buildings and other fixed structures includes a capitalised portion of Compensation of employees and Goods and services. This feature is unique to the Department of Transport. The total of Compensation of employees and Goods and services (from 2007/08 onwards) is provided as a footnote in Table 12.6 above, as well as to the Annexure – Vote 12: Transport. The decrease in Goods and services from the Audited 2006/07 amount to 2007/08 is explained in the narration under Programme 2.

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A major portion of the category Goods and services relates to Current infrastructure (maintenance). This Current infrastructure portion is high in comparison to the total amount budgeted for Goods and services over the 2008/09 MTEF. According to the department, this is in line with prior years’ trends.

The department does not anticipate filling the total number of budgeted vacant posts for the 2007/08 financial year. The savings of R15 million realised was utilised during the 2007/08 Adjustments Estimate to augment Buildings and other fixed structures, which is the department’s major expenditure category.

With regard to Machinery and equipment, the decrease in the 2007/08 Adjusted Budget is due to a virement of R3.2 million from this category to defray projected over-expenditure against Buildings and other fixed structures.

The transfer payment to the KwaZulu-Natal Taxi Council ended in 2006/07, thus accounting for the decrease in Transfers and subsidies to: Other for 2007/08 and over the 2008/09 MTEF.

5.4 Summary of expenditure and estimates by district municipal area

Table 12.7 provides a summary of spending (excluding administrative costs) by the department in each district municipality. The department had to make informed estimates in certain instances. These estimates will be improved over time, as planning processes are further refined in terms of spatial distribution.

Table 12.7: Summary of expenditure and estimates by district municipal areaDistrict Municipal Area Estimated

Audited Actual R000 2006/07 2007/08 2008/09 2009/10 2010/11 eThekwini 155 798 218 325 336 293 472 026 411 360 Ugu 125 572 168 984 197 822 247 707 265 203 uMgungundlovu 532 077 614 691 700 284 816 030 924 440 Uthukela 99 250 115 668 139 226 194 835 203 723 Umzinyathi 64 788 84 875 102 238 124 940 140 671 Amajuba 70 629 90 054 108 560 132 025 141 447 Zululand 248 179 333 644 392 484 462 037 493 361 Umkhanyakude 109 160 136 753 160 334 198 746 211 217 uThungulu 246 626 351 735 486 800 605 789 603 845 Ilembe 88 279 115 907 135 673 160 762 178 361 Sisonke 81 256 105 624 129 799 160 708 171 554 Total 1 821 614 2 336 260 2 889 513 3 575 605 3 745 182

Medium-term estimates Outcome

The department’s service delivery is equitably distributed throughout the province, based on various factors including the extent of backlogs, the existing or potential importance of the area (including economic, social, agricultural, tourism, etc.), the size of the affected community, and the poverty index in the area. Furthermore, the projects in these areas are selected and prioritised by the communities being served, by means of the department’s Rural Road Transportation Forums (RRTFs).

As reflected in Table 12.7, the bulk of the spending, which increases over the 2008/09 MTEF, is concentrated in the uMgungundlovu District Municipality. Programmes and projects undertaken by the department, which are provincially implemented and where expenditure is not easily split to individual district municipal areas, are allocated to uMgungundlovu, where the department’s Head Office is based.

The second highest spending occurs in the uThungulu District Municipal area, and this relates to the reconstruction of the John Ross Highway and other African Renaissance Roads Upgrading Programme (ARRUP) projects.

The Zululand District Municipality also accounts for a high share of total spending, with some ARRUP projects as well as other major projects such as the P235 and part of the P700 being undertaken in this district. It is also noted that Zululand was a previously neglected district municipal area, hence the major influx of funding for projects in that area.

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397

The high spending in the eThekwini district municipal area over the MTEF is due to the additional funding received for the link roads to the Dube TradePort and the KSIA, which is expected to be commissioned for the 2010 Soccer World Cup. This explains the decrease in funding in the final year of the MTEF.

The Sisonke district municipal area includes the additional allocation for Umzimkhulu over the 2008/09 MTEF.

5.5 Summary of infrastructure expenditure and estimates

Table 12.8 presents a summary of infrastructure expenditure and estimates by category for the vote, including both capital and current. A more detailed listing of infrastructure projects to be undertaken by the department can be found in the Annexure – Vote 12: Transport.

Table 12.8: Summary of infrastructure expenditure and estimates


Capital 1 009 316 938 548 1 433 762 1 972 048 1 990 225 1 990 225 2 464 741 3 084 091 3 220 942 New construction 222 851 371 069 516 327 609 808 627 985 627 985 811 338 1 200 925 1 294 922 Rehabilitation/upgrading 786 465 567 479 917 435 1 360 240 1 360 240 1 360 240 1 653 403 1 883 166 1 926 020 Other capital projectsInfrastructure transfer - - - 2 000 2 000 2 000 - - -

Current 289 790 386 676 459 822 471 476 471 476 471 476 564 910 691 691 742 542 Total 1 299 106 1 325 224 1 893 584 2 443 524 2 461 701 2 461 701 3 029 651 3 775 782 3 963 484

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

The increases in the department’s budget over the 2008/09 MTEF, as mentioned above, are specifically related to the department’s investment in the provincial road network, which is reflected against New construction and Rehabilitation/upgrading as well as Current. The largest increase in the budget over the MTEF was allocated to New construction, to cater for several large road construction projects, including Sani Pass, the roads to support the Dube TradePort and KSIA, the reconstruction of the John Ross Highway, and the reconstruction of P416 (Umzimkhulu – Staffords Post) to an acceptable standard. With regard to Rehabilitation/upgrading, the increases against this item over the MTEF relate to the rehabilitation, resealing and re-gravelling of roads, as well as the upgrade of roads in Umzimkhulu.

The budget allocated against the category Current relates to maintenance expenditure on the road network. The steady increase in this category over the MTEF supports the department’s strategy to increase expenditure on maintenance.

The funding allocated to Infrastructure transfer in 2007/08 was for a new programme of the department to provide funding to municipalities for the construction and upgrading of public transport facilities in support of the Taxi Recapitalisation Programme. Over the 2008/09 MTEF, the department will not use the municipalities as agents for this programme, but will undertake the construction and upgrading of these public transport facilities under Programme 3: Transportation, to ensure better control and monitoring of service delivery.

5.6 Transfers to public entities

The KwaZulu-Natal Taxi Council was established as an entity that is separate from the Department of Transport (performing its own administrative and financial functions). The funding agreement with the KZN Taxi Council ended at the end of the 2006/07 financial year. Thus, no funding has been allocated for transfer to the Taxi Council in 2007/08 and over the 2008/09 MTEF. The department has made provision within its budget to cater for the administrative functions of the Taxi Council.

The department made an application during 2007/08 to National Treasury to de-list the Taxi Council as a public entity. National Treasury is currently collecting the requisite information to finalise the de-listing process.

Budget Statement 2

398

5.7 Transfers to local government

Table 12.9 details the transfers to municipalities, summarised according to categories A, B and C and Table 12.10 provides the departmental transfers to the municipalities by grant name. The detailed information on the departmental transfers to local government by transfer/grant type, category and municipality is presented in the Annexure – Vote 12: Transport.

Table 12.9: Summary of departmental transfers to local government by category


Category A 189 206 10 022 13 250 10 250 7 095 11 000 11 000 11 000 Category B 18 - - 2 000 2 000 2 000 - - - Category C 1 201 1 369 347 - - - - - - Unallocated/unclassified - - - 6 241 6 241 - 500 550 600 Total 1 408 1 575 10 369 21 491 18 491 9 095 11 500 11 550 11 600

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

Table 12.10: Summary of departmental transfers to local government by grant name Outcome

Audited Audited Audited R000 2004/05 2005/06 2006/07 2008/09 2009/10 2010/11 Regional Service Council Levy 1 390 1 575 - - - - - - - Municipal Transport Planning and Infrastructure - - 10 022 13 000 10 000 9 074 11 000 11 000 11 000 Maintenance Main Roads 18 - 347 8 491 8 491 21 500 550 600 Total 1 408 1 575 10 369 21 491 18 491 9 095 11 500 11 550 11 600

Medium-term estimates

2007/08

Adjusted Budget

Main Budget

Estimated actual

The decrease in the 2007/08 Adjusted Budget for Category A municipalities and the Municipal Transport Planning and Infrastructure budget is due to a virement of R3 million utilised to defray expenditure pressures in other areas. Furthermore, the lower 2007/08 Estimated Actual compared to the Adjusted Budget is due to the fact that the request from the eThekwini District Municipality (Municipal Transport Planning) in terms of their business plan was lower than what the department had budgeted for. According to the department, the R11 million budgeted for in each year of the 2008/09 MTEF is considered to be the optimal funding level for Municipal Transport Planning.

The funding allocated to Category B municipalities is mainly for the construction and upgrading of public transport infrastructure in support of the Taxi Recapitalisation Programme. As mentioned above, over the 2008/09 MTEF, the department will not use the municipalities as agents for the public transport infrastructure, but will undertake the construction and upgrading of these facilities itself.

The payment of the Regional Service Council Levy reflected against Category C municipalities was discontinued from 1 July 2006, as per new legislation.

The subsidies paid to the various municipalities for ‘Maintenance Main Roads’ relate to the maintenance of provincial roads that is undertaken by the municipalities. These transfers in 2007/08 are reflected under Category A, with a significant portion against Unallocated/unclassified. According to the department, the transfer payments for ‘Maintenance Main Roads’ were significantly over-budgeted for in 2007/08, hence the revised estimates for the 2008/09 MTEF. The savings realised in 2007/08 will be utilised by the department under Goods and services for maintenance and repair work to damaged provincial roads, as a result of the recent adverse weather conditions.

6. Programme description

The services rendered by the department are categorised under five programmes. The expenditure and budgeted estimates for each programme are summarised in terms of economic classification, details of which are presented in the Annexure – Vote 12: Transport.

Vote 12: Transport

399

6.1 Programme 1: Administration

The purpose of Programme 1: Administration is to provide the department with strategic planning, financial management and corporate support services, in order to ensure that it delivers on its mandate in an integrated, efficient, effective and sustainable manner.

Programme 1 includes the Office of the MEC, Management, Corporate Support and Programme Support Office. This programme also includes the costs in respect of the repair and maintenance of the buildings occupied by the department.

Tables 12.11 and 12.12 below summarise payments and estimates relating to Programme 1: Administration for the financial years 2004/05 to 2010/11.

Table 12.11: Summary of payments and estimates - Programme 1: Administration


Office of the MEC 3 579 5 334 5 301 4 178 4 178 5 342 4 532 4 771 5 081 Management 9 560 8 670 11 873 12 117 12 331 12 331 13 281 14 114 15 022 Corporate Support 63 319 61 706 71 844 79 245 80 245 79 081 85 593 91 319 97 236 Programme Support Office 41 741 36 547 38 026 53 633 53 633 53 633 56 380 58 670 62 877 Total 118 199 112 257 127 044 149 173 150 387 150 387 159 786 168 874 180 216

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

Table 12.12: Summary of payments and estimates by economic classification - Programme 1: Administration


Current payments 93 731 94 426 105 043 110 407 110 621 110 131 114 435 123 029 131 230 Compensation of employees 35 940 40 122 45 228 50 568 50 782 51 376 56 371 61 055 64 980 Goods and services 57 773 54 261 59 789 59 839 59 839 58 751 58 064 61 974 66 250 Other 18 43 26 - - 4 - - -

Transfers and subsidies to: 1 638 2 850 2 046 193 1 193 1 683 2 800 2 850 3 412 Local government 122 159 20 - - - - - - Non-profit institutions - - 27 - - - - - - Households 480 1 754 1 257 - 1 000 1 013 2 000 2 000 2 500 Other 1 036 937 742 193 193 670 800 850 912

Payments for capital assets 22 830 14 981 19 955 38 573 38 573 38 573 42 551 42 995 45 574 Buildings and other fixed structures 20 805 14 578 17 770 30 073 30 073 30 073 33 851 34 095 36 141 Machinery and equipment 2 025 403 2 185 8 500 8 500 8 500 8 700 8 900 9 433 Other - - - - - - - - -

Total 118 199 112 257 127 044 149 173 150 387 150 387 159 786 168 874 180 216

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

The increase in the 2007/08 Adjusted Budget against the sub-programme: Management and the economic category Compensation of employees is due to an additional allocation of R214 000 transferred from Vote 6: Provincial Treasury, following the decentralisation of the Tax and Banking functions. Similarly, the increase in the 2007/08 Adjusted Budget against the sub-programme: Corporate Support is due to a virement of R1 million from Programme 3: Transportation to the category Transfers and subsidies to: Households, to cater for voluntary severance packages and claims against the state. The department has increased this category for the 2008/09 MTEF to adequately budget for claims against the state.

With regard to the sub-programme: Programme Support Office, the increase reflected in 2008/09 and 2009/10 is less than the normal inflationary increase. According to the department, however, this sub-programme is adequately budgeted for in these two financial years.

All sub-programmes and most of the economic categories show a steady increase over the MTEF, with the exception of the category Goods and services in 2008/09. This is due to a once-off provision in 2007/08 as the department’s contribution towards the implementation of the BAS biometrics.

The category Transfers and subsidies to: Other, which consists of payments for workman’s compensation, increases significantly from the 2007/08 Adjusted Budget to 2008/09. This is in line with the expenditure trend experienced in the previous financial years, as well as projected for the 2007/08 financial year.

Budget Statement 2

400

6.2 Programme 2: Road Infrastructure

The purpose of this programme is to provide a balanced and equitable provincial road network. The main functions include the upgrading of surfaced roads, and the construction, rehabilitation and maintenance of roads, causeways and bridges. In the performance of these functions, the department endeavours to award contracts to emerging contractors and to create employment opportunities as far as possible.

The programme is aimed at determining the needs for the development of infrastructure, implementing maintenance programmes and providing access roads for communities to unlock economic potential, as well as promoting community development and eco-tourism. The programme consists of six sub-programmes, in line with the sector specific budget format, namely: Programme Support Office, Planning, Design, Construction, Maintenance and Financial Assistance.

Tables 12.13 and 12.14 below summarise the expenditure and estimates relating to Programme 2: Road Infrastructure, for the financial years 2004/05 to 2010/11.

Table 12.13: Summary of payments and estimates - Programme 2: Road Infrastructure


Programme Support Office 97 641 105 968 73 277 93 766 94 766 78 800 96 880 104 088 111 053 Planning 13 744 11 569 10 397 14 140 14 140 8 949 15 087 15 772 16 743 Design 13 215 6 432 5 485 13 513 13 513 5 476 14 418 15 075 16 002 Construction 658 098 899 586 935 734 1 245 646 1 245 646 1 276 046 1 614 683 2 075 875 2 150 246 Maintenance 549 717 655 690 820 719 990 772 990 772 990 772 1 221 138 1 482 770 1 574 116 Financial Assistance 992 2 765 10 401 1 392 1 392 186 1 462 1 553 1 649 Total 1 333 407 1 682 010 1 856 013 2 359 229 2 360 229 2 360 229 2 963 668 3 695 133 3 869 809

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

Table 12.14: Summary of payments and estimates by economic classification - Programme 2: Road Infrastructure


Current payments 363 307 424 162 487 023 509 686 494 686 525 665 603 592 714 490 757 312 Compensation of employees 169 506 167 604 162 029 249 901 234 901 215 903 272 479 295 423 316 007 Goods and services 193 801 256 558 324 993 259 785 259 785 309 762 331 113 419 067 441 305 Other - - 1 - - - - - -

Transfers and subsidies to: 2 584 4 646 12 456 9 195 10 195 1 335 5 605 5 514 6 395 Local government 1 171 911 10 194 8 491 8 491 20 500 550 600 Non-profit institutions - - - - - - - - - Households 1 412 3 510 2 160 704 1 704 1 315 5 105 4 964 5 795 Other 1 225 102 - - - - - -

Payments for capital assets 967 516 1 253 202 1 356 534 1 840 348 1 855 348 1 833 229 2 354 471 2 975 129 3 106 102 Buildings and other fixed structures 942 664 1 232 925 1 317 607 1 808 518 1 823 518 1 801 403 2 320 990 2 939 337 3 068 163 Machinery and equipment 24 789 16 108 38 790 31 830 31 830 31 776 33 481 35 792 37 939 Other 63 4 169 137 - - 50 - - -

Total 1 333 407 1 682 010 1 856 013 2 359 229 2 360 229 2 360 229 2 963 668 3 695 133 3 869 809 1. Included under Payment of capital assets are capitalised payments for: Compensation of employees 100 415 113 602 171 199 180 157 180 157 180 157 220 218 240 224 252 235 Total Compensation of employees 269 921 281 206 333 228 430 058 415 058 396 060 492 697 535 647 568 242

Goods and services - - - 355 695 355 695 355 695 375 596 415 596 436 375 Total Goods and services 193 801 256 558 324 993 615 480 615 480 665 457 706 709 834 663 877 680

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

There has been a substantial increase in the level of funding allocated to this programme over the seven years under review. The significant increase against the sub-programmes: Construction and Maintenance and against the categories Goods and services and Building and other fixed structures in 2008/09 and 2009/10 is due to the additional funding allocated to the department in these two years for the P496 (the John Ross highway linking Empangeni and Richards Bay) and for the construction and upgrading of link roads to the Dube TradePort and KSIA. The category Compensation of employees also reflects significant increases in the same years linked to the additional funding allocated to the department.

The category Transfers and subsidies to: Local government under Programme 2: Road Infrastructure caters for the subsidies paid to the various municipalities for the maintenance of provincial roads that is undertaken by the municipalities. According to the department, this category was significantly over-budgeted for in 2007/08, hence the revised estimates for the 2008/09 MTEF. The savings realised in 2007/08 will be utilised under Goods and services for maintenance and repair work to damaged

Vote 12: Transport

401

provincial roads as a result of the recent adverse weather conditions. This, in turn, partially explains the projected over-expenditure against Goods and services in 2007/08.

The projected over-expenditure against Goods and services and under-expenditure against Buildings and other fixed structures in the 2007/08 Estimated Actual is further due to the misclassification of expenditure between current and capital, which will be corrected by means of journal entries before the end of the financial year. The misclassification of expenditure was addressed over the 2007/08 MTEF in terms of budget, where a zero-based budgeting method was used to assist the department to realign expenditure between current and capital. According to the department, this explains the decrease against Goods and services in the 2007/08 Main Budget, compared to 2006/07.

The projected over-expenditure and under-expenditure in the 2007/08 Estimated Actual against some of the sub-programmes are also due to misclassifications of expenditure between the sub-programmes. These will be corrected by means of journal entries before the end of the financial year.

Similar to Programme 1: Administration, an amount of R1 million was shifted from Programme 3 in the 2007/08 Adjusted Budget to Transfers and subsidies to: Households under Programme 2 in respect of severance packages and claims against the state. The department has further increased the estimates against this category for the 2008/09 MTEF to adequately budget for the claims against the state.

As already mentioned, Buildings and other fixed structures includes a capitalised portion of Compensation of employees and Goods and services. The total of Compensation of employees and Goods and services, which is provided as a footnote in Table 12.14 above, as well as in Annexure – Vote 12: Transport reflects steady growth over the 2008/09 MTEF.

Service delivery measures – Programme 2: Road Infrastructure

Table 12.15 illustrates some of the main service delivery measures pertaining to Programme 2: Road Infrastructure. While most of the outputs/performance measures reflect increases in the targets for 2008/09 compared to the 2007/08 Estimated Actual, the outputs Kilometres of gravel roads constructed for local access and Number of causeways constructed show a decrease in the target for the period. This decrease is related to the high cost of gravelling associated with the transportation of the scarce raw materials in the province from quarries and borough pits.

Table 12.15: Service delivery measures – Programme 2: Road Infrastructure Outputs Performance measures Performance targets

2007/08

Est. Actual 2008/09

Estimate Surfaced Roads 1. Rehabilitation of surfaced roads 2. Maintain surfaced roads 3. Construct surfaced roads

• Number of square metres: Light and heavy rehabilitation

• Number of square metres: Tarred roads resealed

• Number of square metres: Blacktop patching

• Kilometres upgraded: Upgrade gravel to blacktop road

1 800 000 1 700 000

140 000 84

2 200 000 2 000 000

160 000 100

Gravel Roads 4. Construct local access roads 5. Maintain local roads - Zibambele 6. Maintain gravel roads

• Kilometres of gravel roads constructed

• Kilometres maintained using Zibambele contractors

• Kilometres of road: blading

• Kilometres of road: betterment and gravelling

360

23 000 86 000 1 000

350

25 000 100 000

1 000

General 7. Construction of causeways and bridges

• Number of causeways constructed

• Number of bridges constructed

• Number of pedestrian bridges constructed

59 4 6

51 2

10

Budget Statement 2

402

6.3 Programme 3: Transportation

The purpose of this programme is to plan, regulate, enforce and develop public transport and freight transport in order to ensure balanced, equitable, safe and sustainable public and freight transport services.

The main functions include the development of policies and plans for public and freight transport service and supporting infrastructure; the regulation of public and freight transport services; and the enforcement of legislation in respect of public transport.

The department has compiled an Integrated Development Programme for public and freight transport, with the following needs identified:

• To accelerate delivery relating to the taxi recapitalisation process;

• To improve services to disadvantaged communities;

• To fast track services that contribute to economic growth; and

• To lend support to other government initiatives.

Tables 12.16 and 12.17 summarise payments and estimates relating to Programme 3: Transportation.

Table 12.16: Summary of payments and estimates - Programme 3: Transportation


Programme Support Office 1 683 2 817 6 224 6 168 6 168 8 547 6 707 7 119 7 639 Planning 14 057 15 034 63 196 37 817 37 817 37 817 40 591 37 688 39 061 Infrastructure - 300 - 2 000 2 000 2 000 6 000 11 369 11 508 Empowerment and Institutional Management 5 600 6 332 5 946 17 000 14 000 11 621 17 300 17 880 19 877 Regulation and Control 9 627 9 614 8 018 7 803 7 803 7 803 8 439 9 011 9 670 Total 30 967 34 097 83 384 70 788 67 788 67 788 79 037 83 067 87 755

R000 Outcome

2007/08

Main Budget

Estimated actual Medium-term estimates Adjusted

Budget

Table 12.17: Summary of payments and estimates by economic classification - Programme 3: Transportation


Current payments 24 931 28 154 76 639 57 788 57 249 57 722 62 037 61 067 65 755 Compensation of employees 9 580 11 863 13 241 14 850 14 850 15 086 17 152 19 079 21 084 Goods and services 15 351 16 291 63 398 42 938 42 399 42 636 44 885 41 988 44 671 Other - - - - - - - - -

Transfers and subsidies to: 5 631 5 834 5 915 13 000 10 000 9 494 11 000 11 000 11 000 Local government 31 34 9 13 000 10 000 9 074 11 000 11 000 11 000 Non-profit institutions - - - - - - - - - Households - - - - - 420 - - - Other 5 600 5 800 5 906 - - - - - -

Payments for capital assets 405 109 830 - 539 572 6 000 11 000 11 000 Buildings and other fixed structures 42 - 24 - - 33 6 000 11 000 11 000 Machinery and equipment 360 109 806 - 539 539 - - - Other 3 - - - - - - - -

Total 30 967 34 097 83 384 70 788 67 788 67 788 79 037 83 067 87 755

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

The significantly high expenditure reflected against the sub-programme: Planning and the category Goods and services in 2006/07 is due to the reprioritisation of funds during the 2006/07 Adjustments Estimate (maintained over the 2007/08 and 2008/09 MTEF), to cater for the challenges in the public transport arena in the build-up to the 2010 World Cup, as well as a once-off payment of R24 million to address the crisis in the bus industry in the eThekwini Municipality.

The decrease against the same sub-programme in 2009/10 is due to the fact that the Integrated Transport Planning programme, an initiative from the National Department of Transport, which is housed under this sub-programme, will be finalised in 2008/09. This also explains the decrease against the category Goods and services in 2009/10.

Vote 12: Transport

403

An amount of R3 million was shifted from Programme 3: Transportation to defray expenditure pressures under other areas of the budget during the 2007/08 Adjustments Estimate. This decrease in the 2007/08 Adjusted Budget is reflected against the sub-programme: Empowerment and Institutional Management and against the category Transfers and subsidies to: Local government, which was over-budgeted for.

The funding allocated to the sub-programme: Infrastructure increases substantially from 2007/08 to 2008/09 and from 2008/09 to 2009/10 due to the department’s new programme to construct and upgrade public transport facilities in support of the Taxi Recapitalisation Programme. During 2007/08, the department used the municipalities as agents for this programme. However, as mentioned above, from 2008/09 onwards, the department will undertake the construction and upgrading of these facilities under Programme 3, to ensure better control and monitoring of service delivery, hence the budget is reflected against Buildings and other fixed structures.

The new allocation against Machinery and equipment and the decrease against Goods and services reflected in the 2007/08 Adjusted Budget relates to an adjustment made to correct a misclassification of expenditure between capital and current. It is noted that the department did not budget for this category over the 2008/09 MTEF, as no further capital equipment is required.

Service delivery measures – Programme 3: Transportation

Table 12.18 below illustrates service delivery measures applicable to Programme 3: Transportation.

It is noted that there are a few measures being reported on for the first time in 2008/09, as per the department’s 2008/09 Annual Performance Plan.

Table 12.18: Service delivery measures – Programme 3: Transportation Outputs Performance measures Performance targets

2007/08

Est. Actual 2008/09

Estimate 1. Integrated planning of transport

• Number of Public Transport Infrastructure projects implemented

• Provincial framework strategy for meter taxi formalisation

n/a n/a

3

100 % complete

2. Promote BEE in the public and freight

transport industry

• Number of drivers public & freight transport drivers trained

• Number of BEE bicycle sales & service shops established in rural areas

n/a

5

6 000

2

3. To establish and manage a sound and

effective institutional framework for the regulation and enforcement of the public transport industry in order to reduce conflict and increase safety

• Number of Public Transport Enforcement Unit officers

• Undertake goal directed enforcement of public transport (Operation Shanela)

107 312

160 350

6.4 Programme 4: Traffic Management

The purpose of this programme is to ensure the provision of a safe road environment through the regulation of traffic on public roads, law enforcement, the implementation of road safety campaigns and awareness programmes and the registration and licensing of vehicles and drivers.

The department’s integrated road safety programme is aimed at facilitating road safety campaigns, developing policy in consultation with all relevant authorities charged with the responsibility for road safety structures, and encouraging participation in road safety initiatives and awareness programmes.

Budget Statement 2

404

The types of services rendered by this programme are listed as follows:

• To render technical services relating to mass measuring bridges, and conduct analysis and re-engineering of hazardous locations;

• To conduct road traffic law enforcement (including overloading control);

• To register and license vehicles; and

• To develop road safety educational programmes and train educators in traffic safety.

Tables 12.19 and 12.20 below summarise expenditure and estimates relating to this programme, for the financial years 2004/05 to 2010/11.

Table 12.19: Summary of payments and estimates - Programme 4: Traffic Management


Programme Support Office 13 028 12 630 9 089 12 631 12 631 17 247 15 963 16 177 17 704 Safety Engineering 3 570 32 699 11 078 24 786 24 786 19 219 25 829 26 050 27 885 Traffic Law Enforcement 146 839 179 297 208 338 228 842 229 842 229 842 217 528 234 955 251 511 Road Safety Education 40 259 50 931 49 168 56 029 56 029 57 567 59 482 62 057 66 430 Transport Administration and Licensing 60 155 92 472 103 155 106 875 106 875 106 875 112 593 119 233 127 636 Overload Control 2 043 2 404 8 319 5 075 5 075 6 026 5 254 5 296 5 669 Total 265 894 370 433 389 147 434 238 435 238 436 776 436 649 463 768 496 835

R000 Outcome

2007/08

Main Budget


Budget

Table 12.20: Summary of payments and estimates by economic classification - Programme 4: Traffic Management



Transfers and subsidies to: 260 643 434 - 1 000 1 420 2 000 2 000 2 500 Local government 52 441 139 - - 1 - - - Non-profit institutions - - 24 - - - - - - Households 208 202 302 - 1 000 1 419 2 000 2 000 2 500 Other - - (31) - - - - - -

Payments for capital assets 28 022 70 831 68 582 93 909 93 909 93 033 70 827 65 703 69 646 Buildings and other fixed structures 5 875 54 953 44 817 66 984 70 161 69 285 42 756 35 527 37 658 Machinery and equipment 22 143 15 878 23 765 26 925 23 748 23 748 28 071 30 176 31 988 Other 4 - - - - - - - -

Total 265 894 370 433 389 147 434 238 435 238 436 776 436 649 463 768 496 835

Main Budget


2007/08

Adjusted Budget R000

Outcome

The installation of Intelligent Road Studs and the construction of a vehicle testing station in 2005/06 account for the high expenditure against the sub-programme: Safety Engineering and against Buildings and other fixed structures and Goods and services in that year. The increased focus on road safety is further apparent from the fact that the budget allocated to Safety Engineering was increased substantially in 2007/08. However, the sub-programmes: Safety Engineering and Overload Control reflect a lower than normal inflationary increase in 2008/09 and 2009/10. This, according to the department, is mainly due to the fact that these sub-programmes are considered to be adequately funded, and the focus shifted to Road Safety Education and Traffic Law Enforcement, especially in 2009/10, partly because of the build-up to 2010.

The relocation of the Road Traffic Inspectorate (RTI) offices to the Merchiston Building and the investment in the computerised license testing project explain the increased allocation in 2007/08 under the sub-programme: Traffic Law Enforcement and against Buildings and other fixed structures. The relocation was a once-off process, which explains the decrease in this sub-programme and economic category from 2007/08 to 2008/09. On the other hand, the increase reflected against the sub-programme: Traffic Law Enforcement and a portion of the increase against the category Goods and services in 2009/10 and 2010/11 relates to the provision made for the maintenance associated with the computerised license testing project.

Vote 12: Transport

405

The increase in the 2007/08 Adjusted Budget under the sub-programme: Traffic Law Enforcement and against the category Transfers and subsidies to: Households is due to a virement of R1 million to cater for claims against the state. Similar to Programme 1: Administration and Programme 2: Road Infrastructure, the department has increased the estimates against this category over the 2008/09 MTEF.

The department is projecting to over-spend its Compensation of employees’ budget in 2007/08. According to the department, this results from overtime not being adequately budgeted for. In the 2008/09 financial year, the department will be introducing a third shift for traffic officers, which explains the lower provision made for overtime as reflected in the lower Compensation of employees’ budget in 2008/09, compared to the 2007/08 Estimated Actual.

Savings identified under the category Machinery and equipment were utilised to off-set spending pressures against Buildings and other fixed structures in the 2007/08 Adjustments Estimate. This accounts for the apparent increase against Machinery and equipment in 2008/09.

Service delivery measures – Programme 4: Traffic Management

Table 12.21 illustrates the main service delivery measures relating to Programme 4: Traffic Management. The department has not allocated any budget in 2008/09 for construction of new weighbridges due to budget constraints. This explains the nil target reflected against the output Number of weighbridges constructed for the 2008/09 financial year.

Table 12.21: Service delivery measures – Programme 4: Traffic Management Outputs Performance measures Performance targets

2007/08

Est. Actual 2008/09

Estimate 1. Reduce road traffic crashes in general and

fatalities in particular

• Number of remedial safety engineering measures

• Number of crossing patrols provided

40 83

40 88

2. Facilitate behavioural and attitude change of road users

• Number of schools participating

• Number of adults educated

• Number of awareness campaigns

• Number of Community Road Safety Councils (CRSCs) trained

300 30 000

30 42

315 30 000

30 41

3. Protect the road environment through the regulation and enforcement of the freight industry

• Hours of overloading control enforcement

• Number of vehicles weighed

• Number of weighbridges maintained/calibrated

• Number of weighbridges constructed

25 000 160 000

16 1

25 000 150 000

15 -

4. Promote safe use of public roads • Number of traffic officers employed

• Hours of manual speed timing activities

• Hours of automatic speed timing activities

• Number of vehicles checked in roadblocks

• Number of kilometres patrolled (official and subsidised vehicles)

• Number of officers trained

480 55 000 30 000 30 000

5 500 000 200

610 55 000 35 000 18 900

5 600 000 250

5. To maximise revenue collection through the levying of appropriate charges for services rendered and through effective debtor control

• % of licenses paid on time

97% 97%

Budget Statement 2

406

6.5 Programme 5: Community Based Programme

The purpose of this programme is to direct and manage the implementation of programmes and strategies that lead to the development and empowerment of communities. These include the following:

• The strategic planning and monitoring of programmes to further Broad Based Black Economic Empowerment;

• The development and training of emerging BEE roads contractors;

• Programmes to bring about the development and empowerment of impoverished communities; and

• The co-ordination of the EPWP in the province.

Tables 12.22 and 12.23 below summarise this programme’s payments and estimates.

Table 12.22: Summary of payments and estimates - Programme 5: Community Based Programme


Programme Support Office 31 989 29 891 33 843 38 096 38 096 38 096 40 277 42 682 45 201 Community Development 3 914 10 268 5 600 5 700 5 700 5 700 6 290 6 679 7 073 Emerging Contractor Development 25 411 39 810 43 955 62 643 62 643 62 643 69 575 72 976 77 283 Total 61 314 79 969 83 398 106 439 106 439 106 439 116 142 122 337 129 557

R000 Outcome

2007/08

Main Budget


Budget

Table 12.23: Summary of payments and estimates by economic classification - Programme 5: Community Based Programme



Transfers and subsidies to: 32 30 7 - - (13) - - - Local government 32 30 7 - - - - - - Non-profit institutions - - - - - - - - - Households - - - - - (13) - - - Other - - - - - - - - -

Payments for capital assets 25 109 39 815 48 724 65 223 65 223 88 181 62 144 65 207 69 120 Buildings and other fixed structures 25 051 39 786 48 646 64 473 64 473 87 431 61 144 64 132 67 980 Machinery and equipment 58 29 78 750 750 750 1 000 1 075 1 140 Other - - - - - - - - -

Total 61 314 79 969 83 398 106 439 106 439 106 439 116 142 122 337 129 557

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

The budget under the sub-programme: Emerging Contractor Development was increased substantially in 2007/08 and 2008/09 for learnerships in support of the EPWP. This also partly explains the increase and the high amount maintained against the categories Buildings and other fixed structures and Goods and services in 2007/08 and 2008/09, compared to 2006/07.

The projected under-expenditure against Goods and services and over-expenditure against Buildings and other fixed structures in the 2007/08 Estimated Actual is due to misclassification of expenditure between current and capital, which will be corrected by means of journal entries before the end of the financial year. On the other hand, the decrease against the category Buildings and other fixed structures in 2008/09, compared to the 2007/08 Main Budget, is due to the re-classification of expenditure between capital and current. This also partially explains the large increase against Goods and services for the same period.

Vote 12: Transport

407

Service delivery measures – Programme 5: Community Based Programme

Table 12.24 below reflects the main service delivery measures relevant to Programme 5.

Table 12.24: Service delivery measures – Programme 5: Community Based Programme Outputs Performance measures Performance targets

2007/08

Est. Actual 2008/09

Estimate 1. Develop and support Black Economic

Empowerment (BEE) programmes

• Number of Zibambele contractors employed

• Number of Zibambele savings clubs trained

• Number of Vukuzakhe contractors trained

• Number of capacity building and development sessions for Rural Road Transport Forums (RRTFs)

36 000 1 000

150 93

40 000 1 100

150 96

2. Ensure community supported transportation service delivery

• Number of public participation events facilitated – RRTF meetings

• Number of public participation events facilitated – Community Road Safety Councils (CRSCs) meetings

372 480

384 492

3. To construct and maintain the road network utilising labour intensive means

• Number of persons employed – EPWP projects

• Number of person days of work created – EPWP projects

50 000 3 800 000

53 000 4 300 000

7. Other programme information

7.1 Personnel numbers and costs

Personnel numbers per programme for full-time equivalent positions are given in Table 12.25 below for the previous and current financial years, along with estimates over the MTEF.

Table 12.25: Personnel numbers and costs per programme

Personnel numbers As at 31 March 2005

As at 31 March 2006

As at 31 March 2007

As at 31 March 2008

As at 31 March 2009

As at 31 March 2010

As at 31 March 2011

1. Administration 228 242 255 270 276 276 276 2. Road Infrastructure 2 658 2 570 2 506 2 436 2 808 2 808 2 808 3. Transportation 53 55 41 54 64 64 64 4. Traffic Management 1 111 1 167 1 182 1 270 1 361 1 361 1 361 5. Community Based Programme 45 9 13 18 13 13 13 Total 4 095 4 043 3 997 4 048 4 522 4 522 4 522 Total personnel cost (R000) 468 374 503 424 576 317 680 770 778 997 840 101 894 641 Unit cost (R000) 114 125 144 168 172 186 198

Note that the total personnel costs shown in Table 12.25 include both the amount that is reflected in the department’s budget as Compensation of employees, as well as the portion of the personnel budget that is capitalised and forms part of the category Buildings and other fixed structures.

The total personnel numbers as well as the total personnel costs reflect significant increases from the period ‘As at 31 March 2008’ to the period ‘As at 31 March 2009’, linked to the substantial additional funding allocated to the department.

Table 12.26 below reflects the summary of personnel numbers in the department, specifying the number of posts in the Human Resource and Finance components, incorporating Financial Management services, Supply Chain Management and associated services.

Budget Statement 2

408

Table 12.26: Details of departmental personnel numbers and costs


Total for departmentPersonnel numbers (head count) 4 095 4 043 3 997 4 522 4 048 4 048 4 522 4 522 4 522 Personnel cost (R000) 468 374 503 424 576 317 695 556 680 770 680 770 778 997 840 101 894 641

Human resources componentPersonnel numbers (head count) 120 121 121 92 92 92 92 92 92 Personnel cost (R000) 13 330 14 180 14 889 15 195 15 195 15 195 16 183 17 073 17 926

Head count as % of total for department 2.93 2.99 3.03 2.03 2.27 2.27 2.03 2.03 2.03 Personnel cost as % of total for department 2.85 2.82 2.58 2.18 2.23 2.23 2.08 2.03 2.00

Finance componentPersonnel numbers (head count) 224 226 226 228 228 228 230 230 230 Personnel cost (R000) 19 592 20 842 21 884 23 417 23 417 23 417 24 939 26 311 27 626


Full time workersPersonnel numbers (head count) 4 095 4 043 3 997 4 522 4 048 4 048 4 522 4 522 4 522 Personnel cost (R000) 468 374 503 424 576 317 695 556 680 770 680 770 778 997 840 101 894 641


Part-time workersPersonnel numbers (head count)Personnel cost (R000)

Head count as % of total for department - - - - - - - - - Personnel cost as % of total for department - - - - - - - - -

Contract workersPersonnel numbers (head count)Personnel cost (R000)

Head count as % of total for department - - - - - - - - - Personnel cost as % of total for department - - - - - - - - -

Main Budget


2007/08

Adjusted Budget

7.2 Training

Table 12.27 reflects departmental expenditure on training per programme over the seven-year period under review.

Table 12.27: Expenditure on training


1. Administration 2 011 1 325 910 3 392 3 392 3 392 3 629 3 901 4 135 2. Road Infrastructure 6 758 1 978 1 048 13 356 13 356 13 356 14 291 15 363 16 285 3. Transportation 3 200 603 348 276 276 276 295 317 336 4. Traffic Management 446 250 100 901 901 901 964 1 036 1 098 5. Community Based Programme - - - 13 392 13 392 4 346 13 629 14 651 15 530 Total 12 415 4 156 2 406 31 317 31 317 22 271 32 808 35 268 37 384

R000 Outcome Estimated


2007/08

Main Budget

Adjusted Budget

The department is required by the Skills Development Act to budget at least 1 per cent of its salary expense on staff training. This requirement gives credence to government policy on human resource development. To facilitate this process, the department is affiliated to the line function Sectoral Education and Training Authority (SETA), and CETA.

The increase in the training budget against Programme 2: Road Infrastructure in 2007/08 and over the MTEF is a reflection of greater emphasis being placed by the department on training and skills transfer within the construction and maintenance categories. Similarly, the allocation to Programme 5: Community Based Programme is related to the additional funding allocated by the department over the 2007/08 MTEF for learnerships in support of the EPWP.

The actual expenditure on training for the department for the 2006/07 financial year reflects a decrease compared to the previous financial years and was also much lower than the original budget allocated of R20.1 million. The low spending in 2006/07 and projected under-expenditure in 2007/08 represent a challenge for the department to fully spend its allocation on training, considering the fact that the budget for this item over the 2008/09 is significantly higher than the previous years.

Annexure – Vote 12: Transport

409

ANNEXURE – VOTE 12: TRANSPORT

Table 12.A: Details of departmental receipts


Tax receipts 515 828 624 302 717 899 745 000 745 000 751 000 825 830 887 822 954 408 Casino taxesMotor vehicle licenses 515 828 624 302 717 899 745 000 745 000 751 000 825 830 887 822 954 408 HorseracingOther taxes

Non-tax receipts 94 977 70 625 90 780 89 100 89 100 93 718 97 100 109 080 115 625 Sale of goods and services other than capital asset 73 193 50 422 70 989 61 000 61 000 61 000 67 000 75 266 79 782

Sales of goods and services produced by dept. 55 185 50 422 70 989 61 000 61 000 61 000 67 000 75 266 79 782 Sales by market establishmentsAdministrative fees Other sales 55 185 50 422 70 989 61 000 61 000 61 000 67 000 75 266 79 782

Of whichAbnormal load permits 4 389 5 020 6 787 6 000 6 000 6 000 6 500 7 150 7 865 Housing rent recoveries 995 - - - - - - - - Other 49 801 45 402 64 202 55 000 55 000 55 000 60 500 68 116 71 917

Sales of scrap, waste, arms and other used current goods (excluding capital assets) 18 008 - - - - - - - -

Fines, penalties and forfeits 21 611 20 158 19 724 28 000 28 000 32 618 30 000 33 701 35 723 Interest, dividends and rent on land 173 45 67 100 100 100 100 113 120

Interest 63 45 67 100 100 100 100 113 120 Dividends Rent on land 110 - - - - - - - -

Transfers received from: - - - - - - - - - Other governmental unitsUniversities and technikonsForeign governmentsInternational organisationsPublic corporations and private enterprisesHouseholds and non-profit institutions

Sales of capital assets 2 003 6 502 1 507 16 000 16 000 16 000 18 000 20 221 21 434 Land and subsoil assets - - - - - - - - - Other capital assets 2 003 6 502 1 507 16 000 16 000 16 000 18 000 20 221 21 434

Financial transactions 1 403 1 820 2 061 900 900 1 390 900 1 011 1 072 Total 614 211 703 249 812 247 851 000 851 000 862 108 941 830 1 018 134 1 092 539

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

Budget Statement 2

410

Table 12.B: Details of payments and estimates by economic classification


Current payments 756 235 886 083 1 023 704 1 059 426 1 044 101 1 054 128 1 197 884 1 351 781 1 439 423 Compensation of employees 367 959 389 822 405 118 515 399 500 613 500 613 558 779 599 877 642 406

Salaries and wages 328 378 356 453 370 213 471 283 457 762 455 590 503 332 539 855 568 669 Social contributions 39 581 33 369 34 905 44 116 42 851 45 023 55 447 60 022 73 737

Goods and services 387 777 495 960 618 358 544 027 543 488 553 495 639 105 751 904 797 017 of whichConsultants 135 763 94 383 137 989 144 888 144 888 144 888 152 132 159 738 167 724 Maintenance repair and running costs 112 889 169 911 231 465 243 038 243 038 243 038 255 189 267 948 281 345 Inventory 43 339 54 624 57 331 60 197 60 197 60 197 63 206 66 366 69 684 Other 95 786 177 042 191 573 95 904 95 365 105 372 168 578 257 852 278 264

Interest and rent on land 18 43 26 - - 4 - - - Interest - - - - - - - - - Rent on land 18 43 26 - - 4 - - -

Financial transactions in assets and liabilities 481 258 202 - - 16 - - - Unauthorised expenditure - - - - - - - - -

Transfers and subsidies to: 10 145 14 003 20 858 22 388 22 388 13 919 21 405 21 364 23 307 Local government 1 408 1 575 10 369 21 491 18 491 9 095 11 500 11 550 11 600

Municipalities 1 286 1 575 10 369 21 491 18 491 9 095 11 500 11 550 11 600 Municipal agencies and funds 122 - - - - - - - -

Departmental agencies and accounts 6 499 6 737 6 648 193 193 657 800 850 912 Social security funds 898 - - - - - - - - Entities receiving funds 5 601 6 737 6 648 193 193 657 800 850 912

Public corporations and private enterprises 138 225 71 - - 13 - - - Public corporations 138 225 71 - - 13 - - -

Subsidies on production - - - - - - - - - Other transfers 138 225 71 - - 13 - - -

Private enterprises - - - - - - - - - Subsidies on production - - - - - - - - - Other transfers - - - - - - - - -

Foreign governments and international organisations - - - - - - - - - Non-profit institutions - - 51 - - - - - - Households 2 100 5 466 3 719 704 3 704 4 154 9 105 8 964 10 795

Social benefits 480 1 754 1 257 - 2 000 2 839 4 000 4 000 5 000 Other transfers to households 1 620 3 712 2 462 704 1 704 1 315 5 105 4 964 5 795

Payments for capital assets1 1 043 882 1 378 938 1 494 625 2 038 053 2 053 592 2 053 588 2 535 993 3 160 034 3 301 442 Buildings and other fixed structures 994 437 1 342 242 1 428 864 1 970 048 1 988 225 1 988 225 2 464 741 3 084 091 3 220 942

Buildings 20 805 14 578 17 770 75 482 75 482 74 915 49 851 55 845 58 535 Other fixed structures 973 632 1 327 664 1 411 094 1 894 566 1 912 743 1 913 310 2 414 890 3 028 246 3 162 407

Machinery and equipment 49 375 32 527 65 624 68 005 65 367 65 313 71 252 75 943 80 500 Transport equipment - - - 18 793 15 616 15 616 19 550 20 781 22 028 Other machinery and equipment 49 375 32 527 65 624 49 212 49 751 49 697 51 702 55 162 58 472

Cultivated assets - - - - - - - - - Software and other intangible assets 7 4 169 137 - - 50 - - - Land and subsoil assets 63 - - - - - - - -

Total 1 810 262 2 279 024 2 539 187 3 119 867 3 120 081 3 121 635 3 755 282 4 533 179 4 764 172 1. Included under Payments for capital assets are capitalised payments for:

Compensation of employees 100 415 113 602 171 199 180 157 180 157 180 157 220 218 240 224 252 235 Total Compensation of employees 468 374 503 424 576 317 695 556 680 770 680 770 778 997 840 101 894 641 Goods and services - - - 355 695 355 695 355 695 375 596 415 596 436 375 Total Goods and services 387 777 495 960 618 358 899 722 899 183 909 190 1 014 701 1 167 500 1 233 392

R000 Outcome

2007/08

Main Budget


Budget


411

Table 12.C: Details of payments and estimates by economic classification - Programme 1: Administration


Current payments 93 731 94 426 105 043 110 407 110 621 110 131 114 435 123 029 131 230 Compensation of employees 35 940 40 122 45 228 50 568 50 782 51 376 56 371 61 055 64 980


Goods and services 57 773 54 261 59 789 59 839 59 839 58 751 58 064 61 974 66 250 of whichCommunication services 5 103 1 944 3 457 7 500 7 500 7 364 8 000 10 400 11 582 Hire of equipment 2 549 873 5 006 5 700 5 700 5 596 6 200 8 672 9 192 Professional services 19 887 11 451 5 732 16 427 16 427 16 128 17 138 21 528 22 820 Other 30 234 39 993 45 594 30 212 30 212 29 663 26 726 21 374 22 656

Interest and rent on land 18 43 26 - - 4 - - - InterestRent on land 18 43 26 - - 4 - - -

Financial transactions in assets and liabilitiesUnauthorised expenditure

Transfers and subsidies to: 1 638 2 850 2 046 193 1 193 1 683 2 800 2 850 3 412 Local government 122 159 20 - - - - - -

Municipalities - 159 20 - - - - - - Municipal agencies and funds 122 - - - - - - - -

Departmental agencies and accounts 898 937 742 193 193 657 800 850 912 Social security funds 898 - - - - - - - - Entities receiving funds - 937 742 193 193 657 800 850 912

Public corporations and private enterprises 138 - - - - 13 - - - Public corporations 138 - - - - 13 - - -

Subsidies on productionOther transfers 138 - - - - 13 - - -

Private enterprises - - - - - - - - - Subsidies on productionOther transfers

Foreign governments and international organisationsNon-profit institutions - - 27 - - - - - - Households 480 1 754 1 257 - 1 000 1 013 2 000 2 000 2 500

Social benefits 480 1 754 1 257 - 1 000 1 013 2 000 2 000 2 500 Other transfers to households

Payments for capital assets 22 830 14 981 19 955 38 573 38 573 38 573 42 551 42 995 45 574 Buildings and other fixed structures 20 805 14 578 17 770 30 073 30 073 30 073 33 851 34 095 36 141

Buildings 20 805 14 578 17 770 30 073 30 073 30 073 33 851 34 095 36 141 Other fixed structures

Machinery and equipment 2 025 403 2 185 8 500 8 500 8 500 8 700 8 900 9 433 Transport equipment - - - 5 793 5 793 5 793 5 800 6 000 6 360 Other machinery and equipment 2 025 403 2 185 2 707 2 707 2 707 2 900 2 900 3 073

Cultivated assetsSoftware and other intangible assetsLand and subsoil assets

Total 118 199 112 257 127 044 149 173 150 387 150 387 159 786 168 874 180 216

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

Budget Statement 2

412

Table 12.D: Details of payments and estimates by economic classification - Programme 2: Road Infrastructure




Goods and services 193 801 256 558 324 993 259 785 259 785 309 762 331 113 419 067 441 305 of whichTransport 9 570 6 293 12 036 22 050 22 050 26 292 23 594 28 437 31 050 Inventory incl Fuel and Oil 25 809 9 060 53 903 25 725 25 725 30 674 27 316 29 365 31 128 Professional services 25 801 56 678 95 161 50 905 50 905 60 698 79 770 85 316 94 127 Other 132 621 184 527 163 893 161 105 161 105 192 098 200 433 275 949 285 000

Interest and rent on land - - - - - - - - - InterestRent on land

Financial transactions in assets and liabilities - - 1 - - - - - - Unauthorised expenditure

Transfers and subsidies to: 2 584 4 646 12 456 9 195 10 195 1 335 5 605 5 514 6 395 Local government 1 171 911 10 194 8 491 8 491 20 500 550 600

Municipalities 1 171 911 10 194 8 491 8 491 20 500 550 600 Municipal agencies and funds

Departmental agencies and accounts 1 - - - - - - - - Social security fundsEntities receiving funds 1 - - - - - - - -

Public corporations and private enterprises - 225 102 - - - - - - Public corporations - 225 102 - - - - - -

Subsidies on productionOther transfers - 225 102 - - - - - -


Foreign governments and international organisationsNon-profit institutionsHouseholds 1 412 3 510 2 160 704 1 704 1 315 5 105 4 964 5 795

Social benefitsOther transfers to households 1 412 3 510 2 160 704 1 704 1 315 5 105 4 964 5 795

Payments for capital assets1 967 516 1 253 202 1 356 534 1 840 348 1 855 348 1 833 229 2 354 471 2 975 129 3 106 102 Buildings and other fixed structures 942 664 1 232 925 1 317 607 1 808 518 1 823 518 1 801 403 2 320 990 2 939 337 3 068 163

BuildingsOther fixed structures 942 664 1 232 925 1 317 607 1 808 518 1 823 518 1 801 403 2 320 990 2 939 337 3 068 163

Machinery and equipment 24 789 16 108 38 790 31 830 31 830 31 776 33 481 35 792 37 939 Transport equipmentOther machinery and equipment 24 789 16 108 38 790 31 830 31 830 31 776 33 481 35 792 37 939

Cultivated assetsSoftware and other intangible assets - 4 169 137 - - 50 - - - Land and subsoil assets 63 - - - - - - - -

Total 1 333 407 1 682 010 1 856 013 2 359 229 2 360 229 2 360 229 2 963 668 3 695 133 3 869 809 1. Included under Payments for capital assets are capitalised payments for: Compensation of employees 100 415 113 602 171 199 180 157 180 157 180 157 220 218 240 224 252 235 Total Compensation of employees 269 921 281 206 333 228 430 058 415 058 396 060 492 697 535 647 568 242

Goods and services - - - 355 695 355 695 355 695 375 596 415 596 436 375 Total Goods and services 193 801 256 558 324 993 615 480 615 480 665 457 706 709 834 663 877 680

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget


413

Table 12.E: Details of payments and estimates by economic classification - Programme 3: Transportation




Goods and services 15 351 16 291 63 398 42 938 42 399 42 636 44 885 41 988 44 671 of whichProfessional services 13 958 15 160 20 183 8 463 8 463 8 463 9 571 10 276 11 056 Other 1 393 1 131 43 215 34 475 33 936 34 173 35 314 31 712 33 615



Transfers and subsidies to: 5 631 5 834 5 915 13 000 10 000 9 494 11 000 11 000 11 000 Local government 31 34 9 13 000 10 000 9 074 11 000 11 000 11 000

Municipalities 31 34 9 13 000 10 000 9 074 11 000 11 000 11 000 Municipal agencies and funds

Departmental agencies and accounts 5 600 5 800 5 906 - - - - - - Social security fundsEntities receiving funds 5 600 5 800 5 906 - - - - - -

Public corporations and private enterprises - - - - - - - - - Public corporations - - - - - - - - -

Subsidies on productionOther transfers


Foreign governments and international organisationsNon-profit institutionsHouseholds - - - - - 420 - - -

Social benefits - - - - - 420 - - - Other transfers to households

Payments for capital assets 405 109 830 - 539 572 6 000 11 000 11 000 Buildings and other fixed structures 42 - 24 - - 33 6 000 11 000 11 000

Buildings - - - - - - 6 000 11 000 11 000 Other fixed structures 42 - 24 - - 33 - - -

Machinery and equipment 360 109 806 - 539 539 - - - Transport equipmentOther machinery and equipment 360 109 806 - 539 539 - - -

Cultivated assetsSoftware and other intangible assets 3 - - - - - - - - Land and subsoil assets

Total 30 967 34 097 83 384 70 788 67 788 67 788 79 037 83 067 87 755

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

Budget Statement 2

414

Table 12.F: Details of payments and estimates by economic classification - Programme 4: Traffic Management




Goods and services 93 105 134 599 141 235 147 497 147 497 131 323 159 227 181 507 194 504 of whichTransport and Fuel 7 779 9 352 7 774 22 886 22 886 20 376 42 582 31 355 35 343 Communication 7 995 10 012 11 985 6 983 6 983 6 217 7 472 8 738 9 262 Professional services 55 963 58 852 88 066 51 222 51 222 45 605 54 808 58 918 62 453 Other 21 368 56 383 33 410 66 406 66 406 59 125 54 365 82 496 87 446



Transfers and subsidies to: 260 643 434 - 1 000 1 420 2 000 2 000 2 500 Local government 52 441 139 - - 1 - - -

Municipalities 52 441 139 - - 1 - - - Municipal agencies and funds

Departmental agencies and accounts - - - - - - - - - Social security fundsEntities receiving funds

Public corporations and private enterprises - - (31) - - - - - - Public corporations - - (31) - - - - - -

Subsidies on productionOther transfers - - (31) - - - - - -


Foreign governments and international organisationsNon-profit institutions - - 24 - - - - - - Households 208 202 302 - 1 000 1 419 2 000 2 000 2 500

Social benefits - - - - 1 000 1 419 2 000 2 000 2 500 Other transfers to households 208 202 302 - - - - - -


Buildings - - - 45 409 45 409 44 842 10 000 10 750 11 394 Other fixed structures 5 875 54 953 44 817 21 575 24 752 24 443 32 756 24 777 26 264

Machinery and equipment 22 143 15 878 23 765 26 925 23 748 23 748 28 071 30 176 31 988 Transport equipment - - - 13 000 9 823 9 823 13 750 14 781 15 668 Other machinery and equipment 22 143 15 878 23 765 13 925 13 925 13 925 14 321 15 395 16 320

Cultivated assetsSoftware and other intangible assets 4 - - - - - - - - Land and subsoil assets

Total 265 894 370 433 389 147 434 238 435 238 436 776 436 649 463 768 496 835

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget


415

Table 12.G: Details of payments and estimates by economic classification - Programme 5: Community Based Programme



Salaries and wages 7 521 5 370 5 234 6 628 6 628 6 628 7 066 8 098 8 453 Social contributions 905 503 490 620 620 620 1 116 1 664 1 697

Goods and services 27 747 34 251 28 943 33 968 33 968 11 023 45 816 47 368 50 287 of whichCommunity Forums - - - 8 676 8 676 2 815 9 283 10 208 10 897 Professional services 17 882 23 585 20 968 6 825 6 825 2 215 7 303 7 851 8 322 Training - - - 13 392 13 392 4 346 13 629 14 651 15 530 Other 9 865 10 666 7 975 5 075 5 075 1 647 15 601 14 658 15 538



Transfers and subsidies to: 32 30 7 - - (13) - - - Local government 32 30 7 - - - - - -

Municipalities 32 30 7 - - - - - - Municipal agencies and funds

Departmental agencies and accounts - - - - - - - - - Social security fundsEntities receiving funds

Public corporations and private enterprises - - - - - - - - - Public corporations - - - - - - - - -

Subsidies on productionOther transfers


Foreign governments and international organisationsNon-profit institutionsHouseholds - - - - - (13) - - -

Social benefits - - - - - (13) - - - Other transfers to households


BuildingsOther fixed structures 25 051 39 786 48 646 64 473 64 473 87 431 61 144 64 132 67 980

Machinery and equipment 58 29 78 750 750 750 1 000 1 075 1 140 Transport equipmentOther machinery and equipment 58 29 78 750 750 750 1 000 1 075 1 140

Cultivated assetsSoftware and other intangible assetsLand and subsoil assets

Total 61 314 79 969 83 398 106 439 106 439 106 439 116 142 122 337 129 557

R000 Outcome Main

Budget Estimated


2007/08

Adjusted Budget

Budget Statement 2

416

Table 12.H: Details of expense on infrastructure

2008/09 2009/10 2010/11 Capital 216 13 317 064 2 464 741 3 084 091 3 220 942

New construction 25 1 877 344 811 338 1 200 925 1 294 922 P577 New Construction Prog. 2 1 389 344 132 851 70 000 100 000 P700 Upgrade Prog. 2 1 496 000 110 513 145 138 146 072 Access to community facilities Prog. 2 - - 316 276 468 677 473 791 Sani Pass Prog. 2 1 170 000 25 000 30 000 50 000 Dube TradePort Roads Prog. 2 2 555 000 132 000 222 007 157 000 Pedestrian Bridges Prog. 4 15 207 000 17 000 27 000 107 000 Computerised license testing Prog. 4 4 48 000 8 000 8 000 8 480 Weighbridge Prog. 3 1 12 000 3 500 3 500 3 500 Municipal public transport infrastructure Prog. 3 - - 6 000 11 000 11 000 Other - - 60 198 215 603 238 079

Rehabilitation 191 11 439 720 1 653 403 1 883 166 1 926 020 Regravelling Prog 2 - - 190 621 270 915 323 973 Reseals Prog. 2 - - 104 489 169 828 203 789 Rehabilitation Prog 2 - - 286 605 379 597 330 326 Major and minor works Prog 1 - - 18 840 18 840 19 518 ARRUP Roads Prog. 2 7 2 057 720 336 788 262 000 300 180 P496 Upgrade Prog. 2 1 382 000 110 817 167 966 123 098 Pedestrian sidewalks Prog. 2 - - 11 000 11 000 11 000 Other upgrade and renewal Prog. 2 183 9 000 000 594 243 603 020 614 136

Other capital projects - - - - - Infrastructure transfers - - - - -

Current - - 564 910 691 691 742 542 Maintenance - - 564 910 691 691 742 542

Total 216 13 317 064 3 029 651 3 775 782 3 963 484

* Total costs represent total estimated expenditure of a particular project of which the project life span may not coincide fully with the MTEF period. Where projects are of a recurrent nature, the total costs are not depicted.

Medium-term estimates Type of Infrastructure Programme Number of

projects Total costs *


417

Table 12.I: Summary of transfers to municipalities (RSCL, Mun. Transport Planning & Infra, & Maint. Main Roads)


A eThekwini 189 206 10 022 13 250 10 250 7 095 11 000 11 000 11 000 Total: Ugu Municipalities 66 72 18 - - - - - - B KZ211 Vulamehlo - - - - - - - - - B KZ212 Umdoni - - - - - - - - - B KZ213 Umzumbe - - - - - - - - - B KZ214 uMuziwabantu - - - - - - - - - B KZ215 Ezingolweni - - - - - - - - - B KZ216 Hibiscus Coast - - - - - - - - - C DC21 Ugu District Municipality 66 72 18 - - - - - - Total: uMgungundlovu Municipalities 542 630 163 2 000 2 000 2 000 - - - B KZ221 uMshwathi - - - - - - - - - B KZ222 uMngeni - - - - - - - - - B KZ223 Mpofana - - - - - - - - - B KZ224 Impendle - - - - - - - - - B KZ225 Msunduzi - - - 2 000 2 000 2 000 - - - B KZ226 Mkhambathini - - - - - - - - - B KZ227 Richmond - - - - - - - - - C DC22 uMgungundlovu District Municipality 542 630 163 - - - - - - Total:Uthukela Municipalities 144 140 27 - - - - - - B KZ232 Emnambithi/Ladysmith - - - - - - - - - B KZ233 Indaka - - - - - - - - - B KZ234 Umtshezi - - - - - - - - - B KZ235 Okhahlamba - - - - - - - - - B KZ236 Imbabazane - - - - - - - - - C DC23 Uthukela District Municipality 144 140 27 - - - - - - Total: Umzinyathi Municipalities 83 99 29 - - - - - - B KZ241 Endumeni - - - - - - - - - B KZ242 Nquthu - - - - - - - - - B KZ244 Msinga - - - - - - - - - B KZ245 Umvoti - - - - - - - - - C DC24 Umzinyathi District Municipality 83 99 29 - - - - - -

Total: Amajuba Municipalities 12 65 18 - - - - - - B KZ252 Newcastle - - - - - - - - - B KZ253 eMadlangeni - - - - - - - - - B KZ254 Dannhauser - - - - - - - - - C DC25 Amajuba District Municipality 12 65 18 - - - - - -

Total: Zululand Municipalities 127 139 37 - - - - - - B KZ261 eDumbe - - - - - - - - - B KZ262 uPhongolo - - - - - - - - - B KZ263 Abaqulusi - - - - - - - - - B KZ265 Nongoma - - - - - - - - - B KZ266 Ulundi - - - - - - - - - C DC26 Zululand District Municipality 127 139 37 - - - - - -

Total: Umkhanyakude Municipalities 52 37 9 - - - - - - B KZ271 Umhlabuyalingana - - - - - - - - - B KZ272 Jozini - - - - - - - - - B KZ273 The Big Five False Bay - - - - - - - - - B KZ274 Hlabisa - - - - - - - - - B KZ275 Mtubatuba - - - - - - - - - C DC27 Umkhanyakude District Municipality 52 37 9 - - - - - - Total: uThungulu Municipalities 136 152 37 - - - - - - B KZ281 Mbonambi - - - - - - - - - B KZ282 uMhlathuze - - - - - - - - - B KZ283 Ntambanana - - - - - - - - - B KZ284 Umlalazi - - - - - - - - - B KZ285 Mthonjaneni - - - - - - - - - B KZ286 Nkandla - - - - - - - - - C DC28 uThungulu District Municipality 136 152 37 - - - - - - Total: Ilembe Municipalities 39 35 9 - - - - - - B KZ291 Mandeni - - - - - - - - - B KZ292 KwaDukuza - - - - - - - - - B KZ293 Ndwedwe - - - - - - - - - B KZ294 Maphumulo - - - - - - - - - C DC29 Ilembe District Municipality 39 35 9 - - - - - - Total: Sisonke Municipalities 18 - - - - - - - - B KZ5a1 Ingwe - - - - - - - - - B KZ5a2 Kwa Sani - - - - - - - - - B KZ5a4 Greater Kokstad 18 - - - - - - - - B KZ5a5 Ubuhlebezwe - - - - - - - - - B KZ5a6 Umzimkhulu - - - - - - - - - C DC43 Sisonke District Municipality - - - - - - - - - Unallocated - - - 6 241 6 241 - 500 550 600

1 408 1 575 10 369 21 491 18 491 9 095 11 500 11 550 11 600

Estimated actual Medium-term estimates R000

Outcome

Total

Main Budget

2007/08

Adjusted Budget

Budget Statement 2

418

Table 12.J: Transfers to municipalities - Municipal Transport Planning and Infrastructure


A eThekwini - - 10 022 11 000 8 000 7 074 11 000 11 000 11 000 Total: Ugu Municipalities - - - - - - - - - B KZ211 VulamehloB KZ212 UmdoniB KZ213 UmzumbeB KZ214 uMuziwabantuB KZ215 EzingolweniB KZ216 Hibiscus CoastC DC21 Ugu District MunicipalityTotal: uMgungundlovu Municipalities - - - 2 000 2 000 2 000 - - - B KZ221 uMshwathiB KZ222 uMngeniB KZ223 MpofanaB KZ224 ImpendleB KZ225 Msunduzi - - - 2 000 2 000 2 000 - - - B KZ226 MkhambathiniB KZ227 RichmondC DC22 uMgungundlovu District MunicipalityTotal:Uthukela Municipalities - - - - - - - - - B KZ232 Emnambithi/LadysmithB KZ233 IndakaB KZ234 UmtsheziB KZ235 OkhahlambaB KZ236 ImbabazaneC DC23 Uthukela District MunicipalityTotal: Umzinyathi Municipalities - - - - - - - - - B KZ241 EndumeniB KZ242 NquthuB KZ244 MsingaB KZ245 UmvotiC DC24 Umzinyathi District Municipality

Total: Amajuba Municipalities - - - - - - - - - B KZ252 NewcastleB KZ253 eMadlangeniB KZ254 DannhauserC DC25 Amajuba District Municipality

Total: Zululand Municipalities - - - - - - - - - B KZ261 eDumbeB KZ262 uPhongoloB KZ263 AbaqulusiB KZ265 NongomaB KZ266 UlundiC DC26 Zululand District Municipality

Total: Umkhanyakude Municipalities - - - - - - - - - B KZ271 UmhlabuyalinganaB KZ272 JoziniB KZ273 The Big Five False BayB KZ274 HlabisaB KZ275 MtubatubaC DC27 Umkhanyakude District MunicipalityTotal: uThungulu Municipalities - - - - - - - - - B KZ281 MbonambiB KZ282 uMhlathuzeB KZ283 NtambananaB KZ284 UmlalaziB KZ285 MthonjaneniB KZ286 NkandlaC DC28 uThungulu District MunicipalityTotal: Ilembe Municipalities - - - - - - - - - B KZ291 MandeniB KZ292 KwaDukuzaB KZ293 NdwedweB KZ294 MaphumuloC DC29 Ilembe District MunicipalityTotal: Sisonke Municipalities - - - - - - - - - B KZ5a1 IngweB KZ5a2 Kwa SaniB KZ5a4 Greater KokstadB KZ5a5 UbuhlebezweB KZ5a6 UmzimkhuluC DC43 Sisonke District MunicipalityUnallocated

- - 10 022 13 000 10 000 9 074 11 000 11 000 11 000

R000 Outcome Main Budget Adjusted

Budget Estimated


2007/08

Total


419

Table 12.K: Transfers to municipalities - Maintenance Main Roads


A eThekwini - - - 2 250 2 250 21 - - - Total: Ugu Municipalities - - 18 - - - - - - B KZ211 VulamehloB KZ212 UmdoniB KZ213 UmzumbeB KZ214 uMuziwabantuB KZ215 EzingolweniB KZ216 Hibiscus CoastC DC21 Ugu District Municipality - - 18 - - - - - - Total: uMgungundlovu Municipalities - - 163 - - - - - - B KZ221 uMshwathiB KZ222 uMngeniB KZ223 MpofanaB KZ224 ImpendleB KZ225 MsunduziB KZ226 MkhambathiniB KZ227 RichmondC DC22 uMgungundlovu District Municipality - - 163 - - - - - - Total:Uthukela Municipalities - - 27 - - - - - - B KZ232 Emnambithi/LadysmithB KZ233 IndakaB KZ234 UmtsheziB KZ235 OkhahlambaB KZ236 ImbabazaneC DC23 Uthukela District Municipality - - 27 - - - - - - Total: Umzinyathi Municipalities - - 29 - - - - - - B KZ241 EndumeniB KZ242 NquthuB KZ244 MsingaB KZ245 UmvotiC DC24 Umzinyathi District Municipality - - 29 - - - - - -

Total: Amajuba Municipalities - - 18 - - - - - - B KZ252 NewcastleB KZ253 eMadlangeniB KZ254 DannhauserC DC25 Amajuba District Municipality - - 18 - - - - - -

Total: Zululand Municipalities - - 37 - - - - - - B KZ261 eDumbeB KZ262 uPhongoloB KZ263 AbaqulusiB KZ265 NongomaB KZ266 UlundiC DC26 Zululand District Municipality - - 37 - - - - - -

Total: Umkhanyakude Municipalities - - 9 - - - - - - B KZ271 UmhlabuyalinganaB KZ272 JoziniB KZ273 The Big Five False BayB KZ274 HlabisaB KZ275 MtubatubaC DC27 Umkhanyakude District Municipality - - 9 - - - - - - Total: uThungulu Municipalities - - 37 - - - - - - B KZ281 MbonambiB KZ282 uMhlathuzeB KZ283 NtambananaB KZ284 UmlalaziB KZ285 MthonjaneniB KZ286 NkandlaC DC28 uThungulu District Municipality - - 37 - - - - - - Total: Ilembe Municipalities - - 9 - - - - - - B KZ291 MandeniB KZ292 KwaDukuzaB KZ293 NdwedweB KZ294 MaphumuloC DC29 Ilembe District Municipality - - 9 - - - - - - Total: Sisonke Municipalities 18 - - - - - - - - B KZ5a1 IngweB KZ5a2 Kwa SaniB KZ5a4 Greater Kokstad 18 - - - - - - - - B KZ5a5 UbuhlebezweB KZ5a6 UmzimkhuluC DC43 Sisonke District MunicipalityUnallocated - - - 6 241 6 241 - 500 550 600

18 - 347 8 491 8 491 21 500 550 600 Total

R000 Outcome Main Budget Adjusted

Budget Estimated


2007/08

Documents

Vote 12 - Transport