Lawyers like fuel levy hike
Feb 12 2009 20:12
Johannesburg - The Johannesburg Attorneys Association (JAA) has welcomed the 17.5c increase in Road Accident Fund (RAF) contributions, per litre of petrol sold.
The association's Michael de Broglio says that the increase should contribute significantly to the claimed deficit that has allegedly kept the fund in the red for several years.
However, De Broglio comments that while the increase may serve to push the fund back into the black, there is much irony in the fact that the biggest hike ever occurred shortly after a dramatic reduction in victim benefits.
"We remain sceptical about the so called deficit claimed by the RAF, like clockwork, annually. Deficit estimations are based on actuarial guesstimates which assume risks based on immediate claim payouts. In practicality, this is unrealistic and the JAA will continue to reject these claims."
De Broglio also points out that the RAF have previously adjusted estimations downward thus placing the accuracy of its methodology in continual doubt.
"Perhaps," he says, "the increased cost to the consumer will alert, again, South Africans of the continued benefit contraction while the RAF continues to fleece our pockets."
Litigation challenging the Act will shortly be launched.
-
I-Net Bridge
