GOOD Press statement by Anton Louw,
GOOD Cape Town Councillor Responsible for Finance
31 May 2023
The City of Cape Town budget will simply make already struggling households even poorer with above inflation tariff increases coming from a City with more than enough savings in the bank.
Mayor Geordin Hill-Lewis’s budget for 2023/24 was approved in Council today, bringing with it greedy increases which will see residents counting every single cent to survive.
The Mayor has claimed that he is protecting residents by reducing Eskom’s 18,6% electricity price increase to 17,5% in the City of Cape Town. Yet, in Cape Town the tariffs are already, on average, nearly double the Eskom tariff.
While we understand that municipalities must raise revenue in order to provide services, the mark-ups must be fair, affordable and just – more especially in the current financial climate.
The fact remains – even with the Eskom increase, the City does not have to ask their consumers to pay more. They have enough money in the bank.
The City is making a surplus of R2,8 billion on energy. Now consumers, who are already paying far more than what is necessary, will be burdened with another increase added on an already inflated rate in Cape Town.
GOOD maintains that the increase could have been subsidised in various ways, like with the current surplus which is becoming a norm year on year.
The city, as of 31 March, has an operating surplus of R5 billion and cash reserves of R11 billion that continues to increase and is not being spent.
Furthermore, expected inflation for 2024 is 4,9%. And while the Mayor argued that Eskom increases should be in line with inflation, the City increases all of its tariffs by more:
- Property rates by 6,09%
- Water and sanitation by 8,6%
- Refuse by 5,5%
Again, doing away with all the irregular expenses, fruitless and wasteful, sub-councils that have no decision-making powers, could all have contributed to absorbing the increases.
These are no ordinary times, and our residents need decisive leaders and bold steps amid the cost-of-living crisis.
If this leadership is serious about helping its cash-strapped residents, they can use some of the public money sitting in the bank to give people a break – and still be left with savings.
The GOOD Party simply cannot support this budget and the unjustified tariff increases.
Media Enquiries:
Anton Louw, GOOD Cape Town Councillor responsible for Finance
Cell: 082 377 3335
Email: anton@cisfs.co.za
Janke Tolmay, GOOD Media Manager
Cell: 073 367 1223
Email: janke@forgood.org.za