Cape Town - A demand by the SA Local Government Association (Salga) to increase the salaries of all councillors – irrespective of the size of their municipality – to R1.3 million a year would be disastrous for the economy and could lead to tax increases, analysts have warned.
The association, which represents 9 000 councillors nationally, wants councillors to earn the same as MPs, arguing their responsibilities are similar.
Dawie Roodt, an economist with the Efficient Group, said Salga’s demands were “ridiculous”.
He said it was an example of “entitlement” and what economists call “rent seeking”.
“This is when a person is in a position where they extract a lot of resources without adding any value. The only way to fund something like this is to increase taxes,” Roodt said.
“I cannot understand how they can have the gall to say they want more money, when they are not doing what they are supposed to be doing in the first place,” he said.
From Wednesday, full-time councillors will earn between R457 210 and R832 197, depending on the type of municipality they serve while part-time councillors will earn between R195 712 and R416 098 a year, excluding car allowances.
Salga’s demands are for after next year’s local government election.
The demanded wage increase could see some councillors’ salaries go up by roughly 660 percent.
The rise for Salga’s 9 000 councillors would cost R11.7 billion.
Athlone councillor Magedien Davids said the “community would kick the bucket” if his salary were to jump up to R1.3m a year.
“That would be a substantial increase to say the least,” he said, laughing. “It just wouldn’t work.”
He told the Cape Argus he was happy with his current salary as it underscored the fact that being a councillor was a community-orientated service.
Independent economist Roodt said: “What we should be doing is trying to reduce some of (the councillors’) salaries and wages.
“If you go to some of the smaller municipalities, you will see that the councillors are simply not doing their jobs.
“In terms of service delivery it is a disaster.”
George Mari, DA spokesman for local government, said the implementation of flat rate salaries for councillors was “high risk” and would only add to the woes of those municipalities already hard-pressed to pay public representatives’ wages.
“The current municipal grading system makes provision for councillors to be remunerated in accordance with the ability of their municipality to afford their salaries. This must be adhered to.”
Councillor Davids told the Cape Argus that money set aside for the huge salary increase may have a negative impact on his ward, pulling funds from projects such as RDP housing.
“Right now, what I’m earning gives me and my family a good life, so I can’t complain.”
The City of Cape Town said it would respond to the Cape Argus’s queries later on Monday.
The wage demands come in the wake of the auditor-general’s report, in which only 40 of the country’s 278 councils received clean audits.
Lennox Mabaso, spokesman for the Department of Co-operative Governance and Traditional Affairs, said the department was aware of Salga’s demands but did not want to comment.
Cape Argus