Mbalula talks taxi shutdown: Government can't afford more funding

Mbalula talks taxi shutdown: Government can't afford more funding

- Transport Minister Fikile Mbalula has made it clear that the government can't offer more funds to the taxi industry

- The sector has snubbed a R1 billion relief fund established to mitigate the effects of Covid-19

- However, Mbalula says the government has not got the money to cough up more

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly.co.za News on your News Feed!

Transport Minister Fikile Mbalula has revealed that the government cannot afford more than the funds it has made available for the taxi industry.

Briefly.co.za reported that the state had announced a R1 billion package to help the sector amid the Covid-19 pandemic in South Africa.

Briefing the media ahead of a planned shutdown in Gauteng in protest of what the industry has dubbed 'insufficient' funding, Mbalula weighed in.

Commenting on the situation, the Transport Minister explained that more money simply isn't on the table:

"Increasing the amount that is available is simply not an option on the table. I wish to repeat, the door is still open for creative ideas to maximise value for this limited benefit for all operators in the industry."

READ ALSO: Taxi bosses threaten to shutdown Gauteng: R1 billion insufficient

The politician insisted that shutting down the sector would only serve to worsen the economic pressure currently being felt in the industry.

He dubbed the move as 'counter-productive' and as bad for both the unions and the people they represent:

"That is why this shutdown is counter-productive and is not good for Santaco, it's not good for the taxi industry and it is not good for all of us."

Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!

Source: Briefly.co.za

Mailfire view pixel