MEDIA RELEASE:
ACDP
OPPOSES TSHWANE BUDGET ON GROUNDS OF UNSUSTAINABILITY
1 June 2007
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MEDIA
RELEASE
AFRICAN CHRISTIAN DEMOCRATIC PARTY
RICHARD DINKELMANN ACDP COUNCILLOR TSHWANE METRO
1 JUNE 2007
ACDP
OPPOSES TSHWANE BUDGET ON GROUNDS OF UNSUSTAINABILITY
The budget tabled by the ANC during the Council meeting on 31 May 2007
was opposed by the ACDP. We include the full speech.
The
proposed budget before us today, is the 7th budget of the Tshwane
Metro. The number seven is significant, as it represents
Perfection, or Completeness in Biblical terms. There are
SEVEN notes in the musical scale. All other pitches are only
variations of these. The question we as the ACDP want to pose
today is: Has this local authority achieved "perfection", as reflected
in the budget documents? Or are we just plodding
along? Or worse still, are we going downhill?
When the
first budget was tabled, we enthusiastically compiled a budget which
merged the operations of some 13 previous local authorities under the
umbrella of the Tshwane Metro. The first budget was adopted
unopposed. The promise was made by the ANC that the merging
of the 13 discontinued organizations would lead to improved
efficiencies & better value for money for our
residents. Has this happened?
The ACDP
would like to draw your attention to some pertinent figures:
On the
positive side,
- The
operating income has grown from around R5 billion in 2001/ 2002 to just
over R10 billion for 2007/ 2008. That represents a growth of
approximately 10% per year, which is quite impressive. These
increases were mainly funded by our rate payers.
- On the
capital side, the increase has been even more impressive – in
2001/ 2002 the budget for capital expenditure was R824 million, and for
2007/ 2008 this has grown to R2,225 million. That is a growth
of 15 % per year. This has been funded by our rate payers,
government grants, and recently debt through loans.
On the negative side,
- The
consumer debtor figure has grown from R1 386 million in 2001/ 2002, to
an actual figure of R1 985 million at the end of the previous financial
year. This is totally unacceptable, as the ANC made a pledge
with the citizens that it would collect the outstanding debt and apply
it to their benefit. In stead, money has had to be loaned
from the banks to meet these needs.
- The
surplus in 2001/ 2002 was R410 million – or almost 8% of
revenue. We were thus able to fund capital projects from
operating revenue. For the previous financial year, the
surplus was R315 million, or less than 4%. A large portion of
that was absorbed by the growing outstanding debtors.
The most concerning aspect of the tabled budget, however, is the
proposed scrapping of the basic free water and electricity allowances
for all rates payers, except the indigent – in the case of
water; and low consumers - of less than 200kWh - in the case of
electricity.
What is
proposed, is that only those consumers who useless than 200kWh per
month get a "rebate" - as the Executive Mayor called it - of
50kWh. The registered indigent get an amount of 100kWh free
of charge.
To put
this in perspective; with 200kWh, a household is able to use 6.7kWh per
day. With that amount, one can use 88 low wattage globes for a 5 hour
period every day. It certainly doesn't seem to be a very poor household
that uses over 1kW continuously for a period of 5 hours per day.
The water
allocation is increased from 6kl to 12kl per month plus 6kl for
sanitation, i.e. a total of 18kl. That means 600kl per day,
which is 120 buckets of water FREE PER DAY. We believe that
is excessive.
The ACDP
thus cannot support this proposal.
During the
budget debate in June 2001, we said and I quote:
"With
regard to the equalization of tariffs, or more specifically the free
basic water and electricity, we have no problem with this."
We
supported free basic water and electricity to all rate payers on the
principle of fairness – all rate payers were being treated
the same. Now the ANC are proposing to take away from the
"haves" and handing more to the "have-nots"! By doing this,
they are cultivating a culture of dependency, and reducing the need and
incentive to work hard. Why are they going against the
national guidelines?
We believe
it is unconstitutional to differentiate & discriminate in this
way. Furthermore, by doing this, the ANC are branding people
as "poor". This becomes a self-fulfilling prophecy and
removes from them the hope to have a better life.
I want to
make it clear that the ACDP is pro poor! We want to help them
to lift themselves out of the poverty trap, by providing them with the
basic necessities. But we cannot give so much that we remove
the incentive to work. By making these proposals, the ANC is
playing a very dangerous political game. On the one hand,
they will gain short term popularity & votes. The
devastating long term effect however, is that the culture of demand is
entrenched, which is not sustainable. Future governments will
find it extremely difficult to remove these privileges, because they
become rights in the minds of the people receiving them.
The ACDP
will therefore oppose the proposed budget.
It is time
for a new government in this city and this nation!
I thank you.
RICHARD DINKELMANN, COUNCILLOR
ACDP: TSHWANE METRO
083 263 2664