DA proposes overhaul of ANC-led city of Johannesburg draft budget

Note to Editors: The following remarks were made by DA Johannesburg Caucus Leader, Leah Knott Cllr. during a press briefing on five priorities to the proposed City of Johannesburg 2020/2021 budget.

The Democratic Alliance (DA) notes with concern the 2020/2021 draft budget that has been presented by ANC-led City of Johannesburg Mayor, Geoff Makhubo, on Friday, 29 May 2020.

As we enter into level 3 of government’s lockdown to curb the spread of the Covid-19 pandemic, many South Africans have grown weary of the overbearing and draconian nature of the restrictions imposed on their daily lives.

While the DA supported the reasoning behind the initial lockdown to flatten the curve in order for government to adjust its healthcare system and the social and economic lives of millions of residents, we are convinced that the extended lockdown period has done more harm than good.

Valuable inputs from business and civil society were neglected and the oversight functions of public representatives were suspended.

In order to bring an end to this state of affairs, our residents must assume responsibility and hold government to account.

Government, like all of us, is entering into unchartered territory. The Covid-19 pandemic has changed every part of our lives. It is important to ensure that the budget and proposed taxes will speak to the post-covid-19 reality which will emerge.

The city’s finance department has been closed during the past two months therefore residents and businesses who have an issue with their accounts are unable to resolve it.

During these difficult times when we must collect every cent we can, it is inconceivable that the city is not doing everything in its power to make it easier for residents to pay their bills.

The publication of the city’s draft budget and Integrated Development Plan (IDP), presents residents with an opportunity to give input on the amount of tax they will pay and how it will be spent.

The DA has identified five focal points that it believes the city’s budget should prioritise:

Job creation:

Prior to the Covid-19 pandemic, the City of Johannesburg had a staggering 29% unemployment rate, and some predictions indicate that national unemployment could reach 50%.

In that case, between 1.5 and 3 million residents may not have a stable income or any income at all. In order to avoid this tragedy, job creation must be at the forefront of budget considerations.

We acknowledge that the burden of creating jobs should not fall squarely on the shoulders of government. However, with the city as a major contributor to the local economy, the successful execution of capital projects can be a significant stimulus to an economy in need of assistance.

To this end, we propose that the city maximises state grants for capital investment purposes and explores more public/private partnerships for infrastructure development. By focusing on increasing capital spending, the city can be a positive stimulus to restarting the local economy, and creating jobs. An example of a such a partnership is one which the previous DA-led administration undertook with the private sector, buying derelict buildings in the inner city to renovate and provide suitable housing for residents.

Another way to ensure that jobs are retained and created is to have a reliable and fairly priced power resource.

Improve Access to Basic Healthcare:

The DA would endeavor to make the budget speak to the needs of those who have limited access to healthcare.

As winter approaches, with less restrictive levels of the lockdown, we can expect a surge in infections.

It is concerning that the draft budget allocates just over R1.3 billion towards health expenditure in the 20/21 financial year.

When we are in a state of disaster our priorities must change.

As a result, the DA proposes that the ANC-led administration uses part of the budget to buy and deliver more mobile clinics to residents.

The previous DA-led administration launched this process successfully. We delivered six mobile clinics to communities, with a further 10 procured at the end of our term.

The budget must also make provisions for extending operating hours at selected clinics. During the DA’s tenure, 27 clinics operated on extended hours and by May 2019, nearly 2 million (1 991 614) residents were able to access our clinics, and more than 370 000 enjoyed the benefits of extended operating hours.

The ANC-led City of Johannesburg should build on this progress.

Improve Social assistance for the vulnerable and de-politicise food relief

The DA is shocked that data gathered from its councillors shows that food relief is being channeled to majority ANC-led wards.

DA councillors in the city received over 27 000 food relief appeals.

Through our coordinated efforts, over 11 000 households received relief. Of these, government provided just over 4000 donations, with the remaining two thirds coming from civil society collaborating with DA councillors.

We propose that the budget makes provision for increased support to poor and vulnerable residents and for the ANC to stop politicizing food relief.

According to the Covid-19 Response Progress Report 45 291 food parcels have been distributed.

It is unacceptable that the ANC-led government uses a crisis to campaign for votes and punish non-ANC aligned residents by depriving them of food relief in a time of widespread desperation.

Small business Relief:

The DA proposes a special rates and rental package to assist affected small businesses to survive this crisis so that they continue to be ratepayers in the future rather than lose them through ceasing to trade.

We put forward delayed tariff increases until January 2021, a payment holiday to businesses that have no income and decreased city property rentals for the remainder of the lockdown.

Improve Shelter and Housing through Public/Private Partnerships

The DA calls on the ANC-led administration to ensure that the budget alleviates the conditions of residents in informal settlements by increasing spending on housing and ensuring that people are settled in appropriate shelter.

However, public/private partnerships have proved to be cost effective and more sustainable in providing accommodation.

An example of a successful public private partnership that was undertaken during the DA-led administration’s tenure is the renovation of derelict buildings, which provided suitable housing for city residents.

Overall, we must tighten our belts.

We are entering a period where we must constantly re-evaluate and then prioritise resources accordingly.

Public participation in the Integrated Development Plan, budgets and rates and tariff processes, will provide residents with the opportunity to give direction on how the city must prioritise public money.

We want to appeal to the larger Johannesburg community to be present when the ANC-led government makes decisions about their future and that of their children.

Make your voice heard.

We celebrate the spirit of Ubuntu which many of our residents have demonstrated through their donations and service during this difficult time.

Together we can create a brighter future for all South Africans.

Statement issued by Leah Knott Cllr - DA Johannesburg Caucus Leader, 2 June 2020