A dispute more than two decades old took centre stage on Tuesday at a hearing into the public passenger transport industry, with the SA National Taxi Council criticising the government over its subsidies to the bus industry.
Siyanda Mbanjwa, an executive at the taxi council’s provincial branch, slammed the government on day two of the Competition Commission’s hearings in Nelson Mandela Bay for being the creator of “an unfair playing field since the dawn of democracy”.
The competition regulator is investigating the possibility of regulating the public transport industry.
It was, however, the government subsidies to bus companies – some of which have been in place for 23 years – that was the bone of contention at the Bay’s leg of the hearings.
Officials from the provincial transport department said that only three bus companies were being subsidised, with Algoa Bus Company receiving the lion’s share.
Bhule Melane, a director in the department, said Algoa was getting at least 40% of the provincial subsidy.
Mbanjwa said this gave the industry an unfair advantage.
“In the taxi industry, we are competing with players that are subsidised.
“It has been a monopoly [and] the government is not looking at other options,” Mbanjwa said.
“It is instead fixated on the IPTS [Integrated Public Transport System] when there are also other options that could be looked at while the IPTS negotiations are ongoing.
“The lack of movement from their [government] side fuels violence.
“Had subsidies [for taxis] been approved the violence and unrest in the taxi industry would have stopped,” he said.
Algoa Bus Company CEO Sicelo Duze defended the company’s subsidy.
“It’s one thing to own a bus, it’s another story to run a bus company.
“Those are two different things,” Duze said.
“In principle, I don’t think the Algoa Bus Company would have a problem if taxis were subsidised, as long as the playing fields are levelled.”