Bay ratepayers ‘must fund the poor’

Nelson Mandela Bay ratepayers will have to understand that they must pay more to subsidise the poor.

These were the sentiments of ANC councillor Andile Lungisa in explaining at a council meeting on Thursday why ratepayers have to brace for a 7.7% rates hike come July 1.

Electricity could increase by 13.04%, subject to approval by the National Energy Regulator of SA (Nersa), and water and sanitation by 7.5%.

But while Lungisa defended the budget, saying it was propoor, the ANC asked that the council meeting be postponed for seven days, saying it needed further refinement.

The opposition refused to endorse the budget, saying it was not credible.

The coalition needs a 61member majority out of 120 to pass the budget.

So without the buy-in of at least one member of the opposition, it cannot be passed.

The council is hung, with a 60-60 split between the governing coalition – including the EFF – and the opposition.

Lungisa said the move to insource security staff and call centre workers as well as increasing the stipend for ward committee members was necessary.

The metro proposes a 100% pay increase for the city’s 600 ward committee members and a 27% increase for ward councillor assistants.

“We will tell our own communities that we have increased the tariffs for the welfare of our ward committees, who are our eyes and ears in communities,” Lungisa said.

“Our communities are not stupid, they are not dumb. They will understand why we have to increase the tariffs.

“This is nothing new, the citizens will understand.”

ANC councillor Ncediso Captain, however, said the party needed time to reflect on acting CFO Jackson Ngcelwane’s presentation.

Captain said concerns had been raised by several ward councillors and they wanted to “properly interact with the documents”.

DA councillor Athol Trollip labelled the budget tabled by mayor Mongameli Bobani an “omni shambles” as only 25% of the budget was derived from internal sourcing.

“Only people with credibility and integrity can raise money, so sending a councillor to raise money was a horrible idea,” Trollip said.

“A credible budget is based on a realistic draft budget, not a decoy draft budget, and should be based on historic budgets and subsequent realities.

“It must be fact-based, it must consider economic realities and be taken through public participation.”

He said the budget did not comply as the integrated development plan process was incomplete and only 55% completed.

Trollip said the IDP was based on false facts and there was no consultation with the Nelson Mandela Bay Business Chamber about rates, despite written undertakings to do so.

ACDP councillor Lance Grootboom said the party would not support the budget, and he was concerned about the impact the tariff increases would have on the poor.

“The increase in tariffs will definitely eat into the already reduced income of the poor and low groups.

“The ACDP says the tariff increases were a result of our employee-related costs, which are escalating at 33%.

“Total operational expenditure has grown so large that it is threatening sustainability of the operational budget.”

PA councillor Marlon Daniels said he would also not support the budget as it did not prioritise coloured people.

Bobani announced at the meeting that his office would, going forward, oversee the running of a one-stop-shop to streamline catalytic projects.

The city would also host an investment conference aimed at enticing investors, he said.

Bobani said he was especially proud of the document as it was the first budget drafted under the UDM, ANC, AIC and UF coalition.

“The investment conference will also be a chance for all stakeholders to share ideas and strategise to build Colchester, Despatch, Port Elizabeth and Uitenhage for the common good,” he said.

Bobani, who titled his address “We See”, said they saw a city where investors could do business without unnecessary delays due to red tape.

He said the move to place the one-stop-shop under the auspices of his office was in line with the National Treasury’s standards.

“The strategic focus and positioning of catalytic projects in the office of the executive mayor came through collaboration with National Treasury as part of its city support programme.

“In addition, the special programmes unit will also be moved to the mayor’s office to ensure greater urgency during the implementation of poverty alleviation programmes and a special focus on township development,” Bobani said.