Finance minister Enoch Godongwana has given his backing to the City of Cape Town’s request to conduct a feasibility study into its takeover of the metropolitan rail passenger transport system from the national government.
His approach is an about-turn from the Treasury’s response to a previous attempt by the city to conduct a feasibility study, which was quashed on the grounds it would constitute wasteful expenditure.
Taking over the transport system, which Godongwana concedes is failing in urban areas, would give enhanced powers to Cape Town.
In a letter to the city council, the minister recognises the need for a study of the devolution of functions from the national government given the capacity constraints facing many municipalities. The devolution of the rail function to municipalities is in line with the latest government thinking, he said.
Cape Town mayor Geordin Hill-Lewis announced the minister’s support in a speech in the council on Thursday in which he said the tender for the study has been issued and work will begin at the start of the new municipal financial year on July 1.
Godongwana said in a letter to transport MMC Roberto Quintas — which Business Day has seen — that the Municipal Systems Act enables Cape Town to conduct a feasibility study that will assist it in making an informed decision about the best way to perform the rail function and meet the costs, and which parts, if any, to take on.
“A study of this kind is essential as the assignment and delegation framework demands that the government recognise the current capacity constraints faced by many municipalities,” Godongwana said.
The policy intent in the white paper on transport policy and the draft white paper on rail policy, he said, is for public transport to be devolved to the lowest level. In terms of the constitution, a municipality can be assigned a function when there is agreement between the national and provincial governments and where there is adequate capacity at the municipal level to perform the function.
The minister said he believes “that the failure to address urban rail issues will perpetuate unsustainable and inequitable investment in roads, resulting in a sprawling urban form. If the resources are not available to support access and mobility, congestion will worsen in SA cities to the point of gridlock, worsening spatial inequality, reduce competitiveness and hamper economic growth”.
Transport minister Fikile Mbalula agreed with Godongwana’s understanding of transport policy but said he is the one empowered to assign a public transport function to a municipality. He also gave his support for Cape Town’s feasibility study and said he would release the white paper on national rail policy in the coming week.
The city has campaigned for years to take over the dysfunctional metropolitan passenger rail system from the national government. It is run by the Passenger Rail Agency of SA and its Metrorail branch.
Hill-Lewis said the system has reached a “crisis point”, with only 33 operational train sets in 2020 compared with 95 train sets in 1995. Until now the national government has blocked this bid.
Hill-Lewis said there has recently been a “sea change” in policy statements from the national government “with regular and substantive verbal commitments to privatisation”.
He said the “government should not be in the business of running businesses ... If a local or regional government is able to carry out functions that the national government is failing to fulfil, then those functions should be devolved to that local or regional authority”.
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