M.Com. (Transport Economics) / This study deals with the problem of road user cost recovery in a developing country. Two main problems areas have been identified. The first deals with the shortage of funds for financing road infrastructure. Secondly, the responsibility for financing road infrastructure needs to be established. The first objective of the study was to provide a theoretical discussion on the subject of road user cost recovery. The second objective was to establish how much the road users in the Republic of Transkei currently pay for the use of road infrastructure. Thirdly the study wished to establish how much the road 'users should pay, and the final objective was to find methods for u~ilizing existing and new sources for finance. The empirical data for the study was obtained from licence authorities, a border survey, state departments and municipalities in the Republic of Transkei. The literature study revealed that one of the most important decisions to be made in transport policy is the required level of expenditure on road infrastructure. The two techniques that are generally used to determine this level are earmarking of a fixed percentage of the total goverrunent budget for roads and the establishment of a dedicated road fund. The advantages and disadvantages of a road fund are discussed. The approaches that can be used to recover costs from road users may be divided into three categories: - Tax on vehicle usage that varies with the use of road infrastructure. - Methods aimed at vehicle usage which does not vary with the use of road infrastructure. - Methods that are not based on vehicle usage. The Republic of Transkei applies three methods of road user cost recovery, namely fuel tax, licence fees and levies on abnormal loads. These three methods are a combination of all the basic approaches that can be used to recover cost from road users. The N2 national route is identified as the most important road in the Republic of Transkei. The general condition of roads is poor and not enough funds are spent on maintenance. Costs allocated to road users are maintenance costs, capital costs, and administration costs. The existing method of cost recovery from road users is by means of the road fund levy, by licence fees, customs and excise duty and levies on abnormal loads. An evaluation of the existing recovery system in the Republic of Transkei revealed that the system is unfair, total cost is not recovered and there is no dedicated road funding program. In conclusion it is suggested that the following four elements should be added to the existing method of cost recovery from road users levels: - Increase the tax on fuel. - Reviewing of the existing licence fees. . - Implementation of a border toll system. - Levying of a tax on tyres. It is further recommended that a dedicated road fund is started into which all road user levies are paid. The fund should be administrated by either the Department of Works and Energy or the Department of Transport. The fund should be subjected to all the standard accounting and auditing principles.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:11335 |
| Date | 03 June 2014 |
| Creators | Cloete, Johannes Joachim |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
| Rights | University of Johannesburg |
Page generated in 0.1027 seconds