GOOD Statement by Rosa Louw,
GOOD George Municipality Councillor
23 February 2025
The GOOD Party is concerned about the lack of urgency displayed by senior officials at the Garden Route District Municipality to respond to the call for cost-cutting proposals to reduce the R11 million deficit facing the Municipality. As a district municipality, they must set an example to the 7 local municipalities. Immediate action is needed to address the R11 million shortfall. However, it appears that the Office of the Municipal Manager and senior managers are not giving this matter the level of attention and urgency it demands.
The Mayco Member for Finance suggested all directorates engage in cost-cutting measures to reduce operating and capital expenditures. Furthermore, the Budget Steering Committee requested the cutback proposals be submitted by Friday, 14th February. However, none of the senior managers have responded to this request.
This lack of response is troubling and suggests that some senior officials may not fully grasp the serious financial situation we are in. As elected representatives, we are held accountable to the people of the Garden Route, and the administration must understand the urgency of this matter. The GOOD Party calls on the Budget Steering Committee to set a clear deadline for the cutback proposals from all directorates and the consequences for non-compliance.
Additionally the GOOD Party proposes some cost-cutting measures that we believe are essential to reducing the deficit:
Standby Cost: GOOD suggest reviewing the standby cost structure to ensure that it is in line with current needs and does not result in unnecessary expenditure.
Inventory for Own Use (e.g. Electricity Consumption): At our Treatment Plant Facilities, GOOD propose measures to reduce electricity consumption. For instance, implementing energy-saving practices and equipment to lower operational costs.
Negotiating Payment Plans with Tender Services Providers: GOOD proposes that the Municipal Manager should urgently engage with contracted service providers to negotiate payment plans where possible. This would help to ease cash flow and reduce financial pressure.
GOOD believes that beyond cutting costs, we must diversify our revenue streams. GOOD proposes a Garden Route Investment Conference be convened. An Investment Conference must be followed with a strategy as highlighted in our Spatial Development Framework. This conference would serve as a platform for potential investors to engage with our municipality. Our prime properties have inward investment and export capacity. If we can attract inward investment, we can generate additional revenue to create long-term sustainability for our financial future.
The GOOD Party remains committed to support any measure or proposals that is compliant with MFMA that will help reduce the R11 million deficit.
Our focus must be on good governance, responsible fiscal management, and ensuring that every resource is used for the benefit of the people we serve.
We urge the committee to engage constructively in addressing the R11 Million deficit.
Media enquiries: media@forgood.org.za