Barbara Creecy Defends Transport Grant Cuts as MPs Warn of Infrastructure Crisis

South Africa's Transport Minister Barbara Creecy faced sharp criticism in parliament on Thursday after defending sweeping cuts to the Public Transport Network Grant, a move critics say will leave dozens of municipalities unable to maintain basic transit services.

The Treasury slashed the grant by 23 percent in the February budget adjustment, reducing available funding from R4.1 billion to R3.1 billion for the current fiscal year. The cuts arrive as fuel prices have climbed 18 percent since January, squeezing both transport operators and the commuters who depend on subsidized routes.

MPs Sound Alarm on Infrastructure Collapse

Parliament's transport committee delivered a scathing assessment during Thursday's hearing, with members warning that the reduction would force cities to cancel planned bus route expansions and defer maintenance on aging fleets. Eastern Cape municipalities, already struggling with unreliable service, stand to lose the most under the revised allocation.

"Communities in Mthatha and Gqeberha have waited years for reliable transport links to hospitals and schools," said committee chair Noko Phoko. "This cut sends a clear message that these residents do not matter."

The Democratic Alliance's transport spokesperson called the decision "short-sighted" and demanded Creecy provide a detailed breakdown of which projects would be halted immediately. Several ANC backbenchers also expressed unease, suggesting the Treasury had not consulted adequately before reallocating funds.

Government Cites Fiscal Constraints

Creecy maintained that the reduction reflects broader austerity measures needed to stabilize national debt, which currently sits at 73 percent of GDP. She told lawmakers that provinces must find savings within existing budgets rather than relying on additional central transfers.

"One size will not fit all," Creecy said in her opening remarks. "Municipalities have different needs, and we cannot pretend otherwise."

The minister highlighted that R2.3 billion remains available for operational subsidies, enough to preserve current services in major metropolitan areas. However, she acknowledged that new infrastructure projects would face delays unless provinces secured alternative financing.

Where the Cuts Bite Hardest

Rural provinces bear disproportionate risk. Limpopo has already notified the national transport department that three new bus routes serving agricultural communities will not launch as scheduled. Mpumalanga faces similar setbacks, with operators citing uncertainty over future funding as reason to pause investment.

Gauteng, the economic hub, appears better positioned to absorb the reduction thanks to existing partnerships with private bus operators. Still, Metrorail services in the province have seen repeated disruptions this year due to vandalism and aging infrastructure, raising questions about whether current funding levels can reverse the decline.

Operators Warn of Service Reductions

The South African Public Transport Operators Association warned that without restored funding, at least twelve operators will need to reduce fleet sizes by up to 30 percent. This would directly impact routes serving low-income townships where private alternatives do not exist.

"Drivers are already working double shifts to cover gaps," said association head Thabo Mokoena. "We cannot magic additional capacity from a shrinking budget."

Operators in KwaZulu-Natal have begun renegotiating contracts with municipalities, seeking clauses that guarantee minimum funding levels regardless of future Treasury decisions. Several have indicated they will exit unprofitable routes entirely if conditions deteriorate further.

What Happens Next

The transport committee has requested a full briefing from Treasury officials by August 30, when parliament resumes from recess. Creecy has pledged to release a revised implementation plan outlining which projects will proceed and which will be deferred.

Opposition parties have threatened to introduce a motion calling for the cuts to be reversed, though analysts say the motion faces an uphill battle in a parliament where the ANC holds a majority. The real test will come in October, when municipalities submit their revised transport plans to the national department.

Commuters in affected areas should watch for public notices from their municipal transport offices. Several cities have promised community meetings in September to explain how service changes will unfold through the end of the fiscal year.