City of Cape Town plans to raise tariff rates for use of facilities
Cape Town - The City plans to increase the tariffs it charges for use of facilities and venues to augment its income.
In a report, the City’s economic opportunities and asset management directorate proposes that commercial use of City Hall be increased by 10%, saying commercial rates for City Hall were well below tariffs in the market.
The report further says: “The biggest revenue driver is the hiring of facilities, and tariffs are set at affordable levels to encourage usage and do not cover the cost of products or services.
“Rental revenue has fluctuated over the last three years, (R5.9 million, R2.7m and R3.4m) respectively.
“This is due to the Good Hope Centre not being compliant with the Safety at Sports and Recreation Events Act 2 of 2010, and therefore cannot be rented out.”
The City said revenue from tariffs had increased on an annual basis more or less in line with the consumer price index, and proposed tariffs for 2020/2021 had been increased in line with inflation. Previously, the City leased the Good Hope Centre to a film company. In 2016, the Southern African and Textile Workers’ Union (Sactwu) accused the City of refusing to participate in negotiations on the leasing of the Good Hope Centre, and claimed local vendors were ignored when the City decided to lease the Good Hope Centre to Film Afrika.
Sactwu applied for an urgent interdict to restrain the council from making changes to the 40-year-old venue, saying changes to the layout and structure of the centre had begun and if allowed to continue, would be irreversible and render the space unusable to the public. The interdict was put on hold.
Sactwu regional secretary Sheila van Rensburg said: “We have for some time monitored the situation at the Good Hope Centre and our branches will be making a decision whether we will be taking it further this time because that centre belongs to the community. Why should other people be allowed to use it?”
City of Cape Town spokesperson Luthando Tyhalibongo said the City is in the process of conducting a feasibility study to establish the best viable use for the Good Hope Centre.
“The spend for the 2017/18 financial year was R1.4m and R7.8m for the 2018/19 financial year. The spend for the 2018/19 financial year was primarily focused on the repairs to the roof which was a necessary requirement,” he said.@MarvinCharles17