City making Cape Town an 'unaffordable' place to live in with rates, fees increases

Opposition councillors in the City has complained that the exorbitant rates and taxes are making living in Cape Town unaffordable. Picture: Leon Lestrade/African News Agency

Opposition councillors in the City has complained that the exorbitant rates and taxes are making living in Cape Town unaffordable. Picture: Leon Lestrade/African News Agency

Published May 27, 2021

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Cape Town - The City of Cape Town has been accused of creating an unaffordable place for residents to live in.

This according to councillors during a virtual City council meeting, where the annual budget for 2021/22 was tabled.

Former mayor and now African Christian Democratic Party (ACDP) leader in city council, Grant Haskin said some 70% of the comments received during the public participation process, related to charges to ratepayers, the affordability of rates, service delivery concerns and complaints related to water and electricity.

“The ACDP, once again, rejects the exorbitant increases in rates and services charged to ratepayers this year, just one indication that the ratepayers agree with the ACDP that the City is making Cape Town an unaffordable city to live in,” said Haskin.

Increases include a 4.5% average increase for rates, a 5% increase for water and sanitation, and 3.5% for refuse removal. The electricity tariff will be increased by 13.48% for City customers.

“Year after year, the City raises these charges, to even more unaffordable levels, spends millions on lawyers for debt collectors to harass and intimidate ratepayers, to pay what they cannot afford, and then, ultimately writes off a billion or two every few years as repetitive once-off write-offs of debt, while claiming that this write off is to alleviate economic hardship,” said Haskin.

Around R37 million was allocated to 13 law firms for debt collection owed to the City, said Haskin.

ANC councillor Samkelo John said the ANC was opposed to the excessive increments.

“These increments are an assault on a fresh wound of the poor as they are already drowning in debt due to the Covid-19 pandemic which led to many people losing their jobs.

“The economy is shrinking and the labour market is becoming smaller. As the ANC, we want a really caring that is people- centric, and not this uncaring city that prioritises profit over the people.”

Mayor Dan Plato said, as of April 30, outstanding debts to the value of R295 million had been written off for residents, with a proposal for a further R4 billion in outstanding debt from previous years.

Cape Argus readers weighed in on these increases and bemoaned the rising cost they are forced to pay.

Maureen Mc Nabb: “What is the City of Cape town trying to do to our poor people under the bread line. It's total madness?”

Merle Grace Anthony Meyer: “Unbelievable! Change needs to come. It's pathetic that we must fork up yet people get away with not paying. What is the logic in this please can someone educate me on this?”

Michell Steyn: “No no no!! We cannot pay more!! We are at our wits end. Just stop.”

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Cape Argus

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City of Cape TownANC