3 May 2020
Statement on the City of Cape Town’s draft 2020/21 budget from Mark Rountree, National Policy Officer for GOOD
CAPE TOWN WANTS CONSUMERS TO COVER LUDICROUS SALARY INCREASES FOR SENIOR MANAGERS AND POLITICAL APPOINTEES
The City of Cape Town makes no provision for expenditure on management of the Covid-19 pandemic in its draft 2020/2021 budget, but proposes handsome salary increases for senior managers, staff and political appointees.
The social package for 2020/21 remains roughly the same as the previous year, at approximately R3 Billion, but R1.6 Billion is required for additional salaries, pensions and other benefits.
It makes no sense to radically increase the cost of staff – in an austerity era, in the teeth of a pandemic – while leaving no funds available to increase service provision.
The City proposes expenditure on councillors and employees that way exceeds inflation. It wants:
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Total costs for Councillors and political cadres will increase by 5.5% next year – after being increased by 11.5% this year;
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Another 13% increase for senior managers, after a 31% increase this year; and
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Another 1 500 new staff.
As a consequence, instead of proposing any relief for residents and businesses during the pandemic, the costs of rates, electricity and water must increase.
GOOD proposes that the City of Cape Town fundamentally rethinks its budget:
· Scraps the pipe levy and significantly reduce water costs for residents and industry;
· Make provisions for the Covid19 pandemic by immediately reassigning funds earmarked for events to emergency food assistance as a first step;
· Provide rates relief for residents and businesses, together with deep spending cuts, a freeze on new positions, review of senior manager positions and salaries, and rapid reallocation of spending priorities; and
· Cease funding desalination plants – they ones paid for by ratepayers previously are no longer working anyway – and use the allocated R2 billion on job-creating water security projects such as alien clearing, instead.
Yesterday, GOOD formally submitted its comments on the City of Cape Town’s draft 2020/21 budget. See report attached.
Ends…