THE Cape Chamber of Commerce and Industry has expressed great concern at the battery of proposed City Council rates and tariff increases for the new municipal year as all of them are well above the current official CPI rate of inflation of around 4,0 percent.
This was made clear by Chamber members after a presentation on the draft budget by the deputy Mayor, Mr Ian Nielson.
The proposed increases are 10.83 percent for property rates, 8.33 percent for refuse removals and 11 percent for both water and sanitation. Electricity tariff increases will be even higher but this depends on a pending decision by NERSA on Eskom’s latest application for a further tariff increase.
Ms Janine Myburgh, President of the Chamber, said that we had experienced above-inflation increases in the past and more were projected for the next three years. “How long can the City continue with these huge rates and tariff increases? It is not sustainable and the City should expect some strong resistance from both business and residential ratepayers.”
Mr Jeremy Wiley, chairman of the Chamber’s Economics and Financial Affairs Committee, said the biggest cost, at more than 30 percent of the operating budget, was the City’s 27 000 staff who earned an average of R30 000 a month in salaries and benefits. This was much higher than private sector salaries. It was unaffordable and required urgent attention.
Mr Neilson explained that salaries were negotiated at national level and that the City’s mandate to SALGA was an 8 percent annual increase, which in itself was well above inflation. Mr Wiley pointed out that the draft budget indicated a 10% increase in salary costs or nearly 10 percent and that the City should, like the private sector, be looking for ways to reduce staff costs, increase productivity and improve the delivery of services to ratepayers.