By failing to be proactive, the municipality has lost out on a major source of revenue, as a new private vehicle-testing facility snaps up the gap in the market.
A report tabled at last week's Social Services Portfolio Committee meeting stated that since the opening of a new testing station in April last year, the traffic department had seen a decline in the number of vehicles visiting the municipal testing station.
By failing to be proactive, the municipality has lost out on a major source of revenue, as a new private vehicle-testing facility snaps up the gap in the market.
A report tabled at last week's Social Services Portfolio Committee meeting stated that since the opening of a new testing station in April last year, the traffic department had seen a decline in the number of vehicles visiting the municipal testing station.
But if officials had reacted faster to a proposal from the business-owners, the municipality might have retained a share in the enterprise.
The report states that the matter appeared in front of the portfolio committee several times.
In September 2008, the mayoral committee decided to appoint a committee to investigate the possible privatisation of the Makana testing station.
Several months went by without a report from the investigation and the entrepreneurs lodged an application with the Department of Transport to open their own facility.
"In reports to council at that time, it was made clear that the opening of a private facility would have a detrimental effect on the income of the municipal facility and it would be beneficial for Council to lease/rent or sell the municipal facility," the report read.
The report stated that history had shown that in other towns where similar private facilities had opened, it had eventually resulted in the closure of the municipal facility.
"We therefore [are]faced with a facility where attendances are declining on a monthly basis. Council should consider using the resources for the testing of driving licences," the report read.
The private testing station, in the industrial area, has been operating successfully for almost 18 months.
The report lists the following reasons for the decline in business at the municipal testing station:
* There is a perception that private testing stations are less strict than municipal stations.
* Long waiting periods for applications at the traffic department due to the fact that the department processes many other applications i.e licensing and registration. The private station only processes roadworthy applications.
* The private station is open on Saturdays. It has never been feasible to open the municipal station on Saturdays.
* Private station offers repairs to customers whose vehicles fail.
* The operators of the private station are well known in the community.
