Address by
Prince Mangosuthu Buthelezi
PRESIDENT OF THE INKATHA FREEDOM PARTY

Ladies and Gentlemen:

I am delighted to be here today and honoured to have been invited to address you.

South Africa's taxi industry is undoubtedly one of the most impressive entrepreneurial stories of our time. As one who has always supported free enterprise, I applaud the gritty determination of taxi operators, like you, who have created a thriving business and service without government subsidies.

Your phenomenal success is rooted in the principles of self-help and self-reliance, which are at the heart of my political philosophy. You have acted upon the insight that in the vast majority of human undertakings, it is best to rely on humankind's pursuit of their own individual good to ensure that the wants of all are supplied.

The taxi industry today is the most popular form of transport in urban areas, like Durban, for the majority of South Africans. Public transport by taxis accounts for 65% of the transport total against 20% for buses and 15% for rail.

In an industry consisting of over 150,000 public minibus taxis and with an annual turnover in excess of R16.5 billion, the taxi industry undoubtedly plays a strategic role in the economy and in society. The lion's share of the market that the taxi industry enjoys will have a fundamental impact upon the development of an integrated transport system, as well as for economic growth and sustainable development in the twenty-first century.

The taxi industry also has an important role to play in banishing poverty as the majority of South Africans still live on low incomes and are dependent on public transport. The ubiquitous taxi ranks throughout South Africa are literally lifelines of commerce and communication.

Over the next seven years, the Taxi Recapitalisation Programme, at a cost of R8 billion, will have far-reaching consequences for both your livelihoods and commuters alike. Government's intervention is aimed at bringing greater benefits to commuters in the form of a safe and reliable fleet, affordable services, better regulation and more sophisticated maintenance. We cannot disagree with the desired policy outcome. As the Transport Minister, Mr Jeff Radebe, stated on July 25 2005, "The Taxi Recapitalisation Programme is becoming a reality and a challenge of our times."

We must acknowledge, however, that there are pros and cons to recapitalisation, which I would like to briefly touch upon. On the positive side, recapitalisation is already helping to eliminate illegal operators, improving tax revenue collection and raising safety and service standards. Every industry needs a broad regulatory framework. I am sure that we all agree that the safety of commuters is paramount. Quite simply, it is non-negotiable.

The African people have started this industry from scratch using their own means. While one therefore supports the principle of the new order, one must caution that it would be tragic if as a result of it, many of our people were to go out of business. For me that would not be progress but a step backwards.

We will have to wait and see, however, if, from a competition perspective, increased regulation will provide benefits that outweigh the predicted inflationary pressure on commuter fares.

As some observers have acknowledged, the elimination of illegal taxis will reduce the supply of taxis and relieve competitive pressures on the remaining taxi providers. This would be a pity because as I have said, the taxi industry is one of the most dynamic examples of wealth creation in South Africa.

It would be remiss on my part if I were to speak to this august audience representing the taxi industry without any reference to the great negative that bothers us in the taxi industry. I am referring here of course to the taxi violence which has represented the dark side of what has been such a success story for our people. This I regard as a challenge to all of us black South Africans. It is a very serious indictement that so many of our people continue to lose their lives almost every week in this Province through taxi violence. And what is most disturbing is that whilst conflicts arise between rival taxi companies, when violence erupts it also costs us innocent lives of the Commuters. One hopes and prays that we as black South Africans can also find a solution to this problem. Even during the liberation struggle I believed in non-violent strategies. I stated that non-violent strategies were the only ones which would resolve the South African conflict. There were other formations which believed in resolving this conflict through violence. I have never believed in resolving of any problems through violence. And in fact I was right in my predictions. We as black South Africans are facing this great challenge of finding a peaceful solution for the various conflicts that will always be there as part and parcel of this great industry.

The public policy challenge must be to raise safety standards for the consumer, whilst not killing the proverbial goose that lays the golden egg. This will be no easy task. It is important that you, as taxi owners, who know and understand your industry best, maximise your participation in the process of recapitalisation. It is equally important that government listens to you.

The other point I would like to make is that one of the major components of recapitalisation is the New Taxi Vehicle to replace the current aging fleet that constitutes the bulk of the taxi industry with new vehicles that are safe and reliable. Would it not be wonderful if the new vehicle could boast the label "proudly South African?"

I would like to express the hope that government gives consideration to providing funding for a new taxi vehicle designed and built in South Africa. The spin-offs in research and development, as well as skills transference, would be considerable.

This brings me on to my next point, which, I believe, is the defining issue of our time: the need for leadership in South Africa. The taxi industry is, as I have stated, one of the great entrepreneurial success stories of our time. I believe that just a drop of the ingenuity and determination of people like you in the right place could spark an economic and social revolution.

I have never been a fatalist. I am still not today, despite the fact that poverty and HIV/AIDS are devastating our nation and culture. I do not believe that chronic unemployment and abject poverty are innate characteristics of our people as some contend. They are temporary setbacks, as poverty and unemployment have been in many other countries before. Some of these countries have recently advanced far beyond their original ambitions.

How have countries as diverse as South Korea, Ireland and Thailand achieved this? What is the common denominator? The predominant factor has been the creation of an environment in which enterprises, like yours, can flourish. I am speaking of the enterprise society.

I still believe, as I have always done, that it is only by the creation of small, medium and micro enterprises that we can slay the poverty dragon and create eighty percent of the new jobs needed to lift South Africa's poorest six million above the breadline. Small, medium and micro enterprises should contribute at lease 60 percent of gross domestic product and be responsible for 80 percent of new jobs, if South Africa is to slay the dragon of poverty. The answers to South Africa's vexing questions can only emerge from a rewarding public debate. It is a debate that I hope you will be prepared to participate in. This conference is one of its important forums. Let us all take this opportunity to broaden the public debate to include all taxi industry stakeholders and exclude none.