Western Cape Government calls on national Department of Transport to review process to issue tourist operating licences

Joint media release by Daylin Mitchell, Provincial Minister of Mobility and Mireille Wenger, Provincial Minister of Finance and Economic Opportunities

The Western Cape Government has written to the Acting Director-General of the national Department of Transport, Mr Ngwako Makaepeea, requesting a review of the section 26 agreement between the National Public Transport Regulator (NPTR) and the Western Cape Provincial Regulatory Entity (PRE) in respect of the regulation of Tourist Transport Services.

Provincial Minster of Mobility, Daylin Mitchell said: “My office has been inundated with complaints from tourism transport operators regarding these delays and the adverse impact on their businesses. This was made worse by the declaration of the national state of disaster in response to the Covid-19 pandemic, which seriously impacted all sectors economy, with the tourist market and the tourist transport sector certainly especially hard hit.”

The regulation of tourism transport was managed by the Western Cape’s Provincial Regulatory Entity until the former Transport Minister Dipou Peters gave notice in July 2016 (through Government Gazette 40110-378 of 2016) in terms of Regulation 46(1) of the National Land Transport Regulations (2009) that the National Public Transport Regulator (NPTR) has been established and would take over the following functions with effect from 29 July 2016:

• The accreditation of operators of tourists transport services in terms of section 82(1) of the Act;
• Receiving and deciding on applications for the granting, renewal, amendment or transfer of operating licences for tourist transport services contemplated in section 21(1)(b)(ii) of the Act.

At the time, Minister Peters confirmed that applications for the renewal, amendment or transfer of operating licences which authorise tourist transport services in addition to other types of public transport services as contemplated in section 50(2) of the Act, must be made to the NPTR with effect from 29 July 2016, whereupon the NPTR will deal with the tourist transport  aspects, and pass the application on to relevant Provincial Regulatory Entity (PRE) or PREs to deal with the other aspects.

 It is common cause that the planning, regulation and management of public transport services in South Africa are a concurrent responsibility of all spheres of government as confirmed by Section 11 of the National Land Transport Act (Act no.5 of 2009) (NLTA). The Act sets out the responsibilities of the different spheres of government in respect of public transport services. It is also an area of concurrent national and provincial legislative competence.

The NLTA makes provision for the establishment of three regulatory entities namely the National Public Transport Regulator, the Provincial Regulatory Entity, and the Municipal Regulatory Entity (MRE). No MRE has yet been established in the country.

It is important to note that Provincial Licences Boards were responsible for receiving and deciding on operating licence applications for all modes of public transport prior to the promulgation of the NLTA.

In terms of section 2 of the NLTA, the NPTR must receive and decide on applications relating to applications relating to operating licences or accreditation for:

• Interprovincial transport, excluding daily commuter transport to and from the area of the municipality to which the operating licence function has been assigned;
• Tourist transport services; and
• Any other services designated by the Minister by notice in the Gazette.

The NPTR has not yet assumed the function of regulating interprovincial transport services. The PRE is currently performing the functions of the NPTR in respect of interprovincial transport services.

To ensure a smooth transition of the tourist transport function, the NPTR entered into a section 26 agreement with the Western Cape PRE. This agreement provides for operators to either email or hand in applications for the accreditation and licensing of tourist transport operators at the PRE offices.

Minster Mitchell said: “This agreement has been in place since 2016. Whilst we respect the constitutional status, institutions, powers and functions of other spheres of government, we have a responsibility to point out that the current arrangement has resulted in poor turn-around times and a considerable drop in service standards from when the Western Cape PRE managed the processing of tourist transport operating licence applications.”

“We are therefore requesting the National Department of Transport to amend the section 26 agreement to allow for greater cooperation and the optimal use of resources between the parties. We have no doubt that this collaboration will improve turn-around times in respect of the regulation of tourist transport services. Prior to implementing the amended agreement, a series of workshops must take place between the PRE and NPTR to agree on service standards and requirements to ensure a consolidated approach in respect of the accreditation and licensing of tourist transport operators,” said Minister Mitchell.

Provincial Minister of Finance and Economic Opportunities Mireille Wenger said: “Tour operators are a critical part of the tourism and hospitality sector, which contributes significantly to the economy of the Western Cape.  While I welcome the efforts made by the National Department of Transport to address the backlog in the processing of operating licenses for tour operators, it is clear that more needs to be done to address the significant delays in the system.”

The Department of Economic Development and Tourism has been inundated with complaints from tour operators about the delays and the negative impact it has on their business. Which is why I support the call made by Minister Mitchell for the responsibility to process and issue operating licences to be placed under the provincial Department of Transport and Public Works. As we prepare for our summer peak season, it is critical for the tourism and hospitality sector that tour operators be enabled to do business.  The province has had the responsibility before and can do it again.  I will continue to work with Minister Mitchell to ensure that this barrier to growth is removed.”

The Department of Transport has until 17 August 2022 to respond, failing which other remedies will be explored to improve the regulation of tourist transport services in the Western Cape.

Media Queries:          

Ntomboxolo Makoba-Somdaka
Spokesperson for Minister Daylin Mitchell
Cell: 082 953 0026
Email: Ntomboxolo.Makoba-Somdaka@westerncape.gov.za

Georgina Maree
Spokesperson for the Provincial Minister of Finance and Economic Opportunities
(Responsible for the Provincial Treasury and the Department of Economic Development and Tourism)
Cell: 076 423 7541
Email: georgina.maree@westerncape.gov.za