High power rates dampen economy

THE DA did not support the passing of the metro annual budget on June 29 for the following reasons:

  • The continued imposition of punitive tariff increases does nothing to stimulate the local economy or support the business sector;
  • The question of addressing the concerns of corporate high energy users remains unresolved;
  • The stubborn refusal to accommodate any rates relief for the two local game farms will push these two tourist attractions to the brink, putting even more pressure onto our local tourism industry;
  • Nersa has not approved the proposed electricity tariff increases, which is a legal requirement for the budget to be approved;
  • The administration has not adequately addressed possible savings that could be gained through the proper imposition of the metro operational efficiency work plan which has been so poorly executed to date. The DA believes that if properly implemented and evaluated on a line for line basis, that sufficient savings could be identified not only to address service delivery and infrastructure maintenance backlogs, but also make it possible to significantly reduce rates increases;
  • Massive electricity theft and water losses continue to plague the metro, leaving business and residents to carry this burden. Properly addressing these two burning issues alone would save the metro in excess of a half a billion rand annually.
It is ironic that when the City of Cape Town passed its annual budget recently, that the ANC voted against lower tariff increases than those being imposed here in the Bay as "anti-poor".

The programme of public participation undertaken this year was entirely inadequate and once again two things were abundantly clear.

The dismal attendance of around a thousand residents across the metro out of a population in excess of 1.2 million is a clear indication that the public at large have lost faith in the ruling party.

Public participation attended by a fraction of 1% of the city population cannot be regarded as adequate or successful.

In spite of the fact that the recent election results in the city handed the combined opposition a majority representation in the city, the ANC naively clings to the illusion that it can simply stonewall the majority of voters and steamroll items through council without genuine engagement on matters of concern while still clinging tenuously to power in the metro with only 48% of the vote.

The DA has a plan. Our inputs are not only viable, they are simple, uncomplicated inputs that will give traction to the operational efficiency work plan of the metro and, if heeded, could radically reduce spending on non-core budget items and reduce expenditure significantly.

In so doing, we know that we could free up desperately needed resources not only to roll out vastly improved service delivery, including a weekly refuse service to the entire city, a reduction in the amount of bucket toilets and greater basic services to all, but also reduce the burden on ratepayers and business via a reduction in rates.

The official opposition remains committed to meaningful, constructive engagement with the ANC on matters of mutual concern.

We do believe, however, that we can do a better job, we can provide better quality, more affordable services to the people and make this metro a city of rising opportunity for all.

Angelo Dashwood, councillor and DA spokesperson on budget and treasury, NMMM

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