Durban - THERE has been an outcry from ratepayer associations following the proposal by the eThekwini Municipality to push up the price consumers pay for electricity, water and refuse.
According to the city’s proposed budget for the 2020/21 financial year, electricity would go up by 6.9%, water by 9.9%, and sewage and refuse by a further 9.9%. Rates go up by a proposed 6.9%.
The increased taxes will result in a budget of R52.3 billion for eThekwini. This will enable the city to give municipal workers a salary increase of 6.25%.
All that the municipality will give those who can’t pay, is a few months’ grace.
But even this is not guaranteed.
“The city is fully aware of the ramifications of the national lockdown on income and has taken measures to assist residents during this crisis. The city, together with other metros, is also in discussions with National Treasury to allow consumers to enter into payment arrangements after the lockdown has been uplifted. This is, however, dependent on the state of the economy and affordability at that time,” the city said.
Azar Jammine, an economist, said the hikes would pose a major challenge.
“The hike figures are a major shock at the moment. South Africa is battling a national lockdown and while some companies are still operating most of them are not.
“A lot of businesses will collapse due to the lockdown and it either means retrenchments or salary cuts. People are going to find it harder to make ends meet at the end of the day.”
Jammine, who is the chief economist at Econometrix, said South Africans were already battling.
“We are going to see more people approaching loan sharks and trying to get some sort of debt relief. While the government has announced the UIF and debt relief grants, those will only assist people for a few months. After that people will still have to try and make ends meet.”
Wayne Govender, the chairperson of the Kenville Ratepayers Association, said that together with their objection, they would be handing over a petition against the hikes.
He said the country was faced with a crisis and, given the circumstances, eThekwini should have postponed the hikes or cancelled them.
“Everything has taken a turn for the worse. A lot of people are suffering. In Kenville, we have many people who are self-employed or working for companies that have shut down.
“It is not an affluent area and there is a lot of fear that once the lockdown ends, jobs will be lost.”
Govender said during the lockdown he tried to arrange for food parcels for some families in the area but struggled because even those who assisted in the past no longer had the financial means to do so.
“Everyone is finding it hard to manage right now. It’s not the right time for the municipality to be raising prices.
“Even banks are giving people a payment holiday but it seems the municipality is oblivious to the plight of the people.
“There are nine informal settlements in this area alone.
“Every week homes are sitting without water because the pipes are bursting. How can they pay more when the service is so poor?”
Ish Prahlad, the chairperson of the Reservoir Hills Ratepayers Association, echoed Govender’s sentiments.
“This weekend alone we have four burst water pipes in the area. Residents are sitting without water sometimes for 24 hours.
“Since the lockdown started every road has had a water cut at least once. How can we be paying for a service that is so shoddy?
“The tariff increase should not be implemented at all. If it is people will not be able to afford to live. I am of the view there should be decreases rather than increases.”
Teddy Govender, the chairperson of the Chatsworth and District Civic Federation, said each year the civic rejected the budget but the ANC majority in council approved it.
“One of the requirements, before the approval of a municipal budget, is community participation. So, each year, without fail, the charade goes on, just so the city is seen to be compliant.”
Govender said he accepted the city needed money to operate, but this needed to be balanced with what residents could afford.
“We are not just dealing with the Covid-19 pandemic but also the fact that our country’s credit rating was
downgraded.
“As a result, more suffering awaits our communities.
“Many people who are self-employed or who are casual workers, have had no source of income during the lockdown. They have not been paying their municipal bills. How will they pay these, let alone the proposed increases?”
Theo Pillay, the chairperson of the Woodview Ratepayers Association, said they would be fighting the hikes.
“It’s ridiculous. People cannot afford to live. I have been going to people’s homes and seeing how hard they have been trying to make ends meet. People living in wendy houses will not be able to manage an increase.
“We, as community leaders, need to team up with businesses and object to this strongly.”
Ismail Adams, the vice chairman of the Austerville Ratepayers Association, said many people were battling and it would be harder for them to make ends meet.
“This area is poor. As it stands, people are begging for food or asking for handouts.
“If people cannot pay their utilities and it gets cut, they will resort to stealing by illegally connecting wires.”
Residents have until May 8 to comment on the proposed budget via email: [email protected] or [email protected]