Cape Town - Opposition councillors have demanded to know why Cape Town mayor Patricia de Lille authorised the funding of more than R2 million for a private company promoting two international music acts.
The mayor, in terms of her delegated powers, approved the hosting of the The Michael Bublé and One Direction concerts at Cape Town Stadium with a budget of R700 000 per concert earlier this year.
De Lille also approved the city’s spending of an anticipated R1.1 million for stadium and event-related costs for the Michael Bublé concert which was held on March 19 and R1m for the One Direction concert that took place on April 1.
But Garreth Bloor, the city’s mayoral committee member for tourism, events and economic development, said in response to questions from the Cape Argus on Sunday, that the city’s contribution was a “small step to assist in securing top-rated international artists in an increasingly tighter global economy and weaker exchange rates”.
The city benefited economically from the impact of the two successful concerts, given that on average seven to 10 percent of the spectators were from outside Cape Town, he said.
Of the R1.1m for Bublé, the report submitted to council indicated that the city would pay Big Concerts R243 680. The city would also allocate R456 320 for the protection of the pitch and rental costs.
Majidie Abrahams, of the ANC, raised his concerns about the city’s sponsorship of Big Concerts, a private entity, during last week’s council meeting. He wanted to know why the city was paying to protect its own pitch, which was being used by a private company.
According to a mayor’s resolution, which was noted at last week’s council meeting, the executive director of tourism, events and economic development, Anton Groenewald, concluded these sponsorship agreements with Big Concerts International.
Bloor said on Sunday that the total cost was still being finalised and would be reported in due course.
Bloor said the city’s support of local and international events was part of its strategy to position Cape Town as the event capital of Africa. “Importantly included in the negotiations is a basket of rights which the city receives in exchange for the contractual commitment to host concerts.” The business plan meant that the city had to work with business partners to maximise the use of the stadium and to pursue additional revenue where possible.
The total cost of the two events at Cape Town Stadium was being finalised and would be reported in due course, he said.
“Tourism and events contribute more than R15 billion to the local city economy. The role and function of the stadium is critical in this regard.”
Meanwhile, Achmat Williams of the New National Party tried to find out whether Groenewald acted correctly when he negotiated with film companies about the lease of the Good Hope Centre as a film studio.
Williams said he was concerned that the future of the Good Hope Centre, which is used by community organisations and events such as the annual Spring Queen Pageant, had been decided without proper consultation with councillors and those affected.
Vendors have been informed by the city that they can’t book events at the Good Hope Centre after July 1 this year.
The South African Textile and Clothing Workers’ Union (Sactwu) handed over a memorandum to the city on April 15, demanding that the city engage with the affected communities before concluding any lease agreements.
Sactwu had planned to host its 40th annual Spring Queen Pageant at the Good Hope Centre in November.
The city has offered several venue alternatives, including Cape Town International Convention Centre. Bloor said the lease agreements for Good Hope Centre would only be finalised after a public comment period.
Cape Argus