Cape Town - The area covered by the Drakenstein municipality has lost over R800 million in income and approximately 2,200 jobs as a result of the lockdown.
This was revealed by Drakenstein Municipality Mayor Conrad Poole during his budget speech on Friday morning. The municipality is the second largest in the province. The area includes Paarl, Wellington, Mbekweni, Gouda, Saron, Hermon and Simondium.
Poole said: “Manufacturing, retail trade and transport will account for over 50 percent of the loss in income, while tourism, construction and the informal sector will account for over 80 per cent of the job losses during the same period.
“Drakenstein’s tourism sector has lost approximately R65m in income and has shed 700 jobs after two months of lockdown.
“The total proposed budget for the 2020/2021 financial year amounts to R2.9 billion, comprising a R2.6bn operating and R216.97m capital budget.
“To fund the capital projects, we will not take up any new external loans over the next five financial years. This will ensure that our current gearing ratio decreases to an estimated 67% in 2020/2021, and to an estimated 42.9% in the 2024/2025 financial year.”
Meanwhile, a proposal for no salary increases for councillors or employees of the Drakenstein Municipality for the 2020/2021 financial year met with strong opposition from ANC councillor Thuso Mpulanyana.
Mpulanyana caused a stir when he said the ANC’s 15 councillors on the 65-member council would oppose the plan as they had not been consulted.
Patricia Mokoena of the DA, the Mayco member for corporate services, had submitted an agenda item for the council to support an application to the SA Local Government Bargaining Council exempting Drakenstein Municipality from implementing the Salary and Wage Collective Agreement.
Mpulanyana said: “The matter should have been discussed unofficially before it was brought before the council.”
Deputy mayor and financial services Mayco member Gert Combrink said: “It is morally wrong to implement the salary increases while businesses are closing down, people are losing their jobs and community members are at a loss for income."