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CGCSA comments on e-toll interdict

2 May 2012

The 12000 member companies of the Consumer Goods Council of South Africa (CGCSA) are one of the industries which will be most impacted should e-tolling come into effect. The Council therefore has stated that it has noted the decision of the High Court to grant the urgent interdict brought by Opposition to Urban Tolling Alliance (OUTA) against SA National Roads Agency (SANRAL).

Its members' transport costs in the retail, wholesale, manufacturing & logistics supply chain environment within the FMCG industry, currently make up between 20% and 30% of their expenses. Should e-tolls be implemented at the current rates proposed by SANRAL, it could possibly see the closure of many smaller businesses and a potential loss of jobs in the sector.

The Council has always maintained that its members are in support of good road infrastructure in the country; however, the strategy of how to accomplish this needs to be properly thought out and consultations held with all relevant stakeholders, especially on issues around the actual levy cost as well as the practicality of the collections.

It will continue to watch this matter closely and support OUTA in its initiatives to encourage SANRAL to come up with an alternative funding mechanism.