MyPE

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Economic recovery plan and budget proposals to save NMB after lockdown crisis

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Dear MyPE

The Democratic Alliance (DA) has formulated an extensive economic recovery plan and proposals for the 2020/2021 municipal budget to avoid the possible total economic collapse of Nelson Mandela Bay brought on by the Covid-19 lockdown crisis.

The NMB municipality will have to assist in ensuring that the negative economic effect is kept to as low a degree possible.

Our economic recovery plan identifies the following key areas of intervention in responding to the crisis, and the approach to the recovery phase as South Africa emerges from the Covid-19 pandemic lockdown crisis.

  • Business assistance
  • Tourism assistance
  • Assistance to the unemployed
  • Job Creation and Revitalisation of the Informal Economy
  • Public health
  • Investment stimulation
  • Catalytic projects

Focus on Business Assistance:

  • Assistance must be given to businesses that qualify through a formal application process.
  • Businesses must be able to immediately apply for the restructuring of their accounts.
  • No interest must be charged on municipal arrears accrued during the determined period, and must not be levied for any period over which the principal debt is repaid.
  • Financial relief must be provided through the deferment of rental payments for the next three to six months, interest-free, for B&B’s, hotel groups, churches, NGOs, sports clubs and businesses that rent property from the municipality until these sectors are able to function independently again.
  • Institute the waiver of fees associated with any other annual permits associated with business – such as temporary signage permits. This waiver will form part of the 2020/21 budget and will be affected from 1 July 2020.

Focus on Investment Stimulation:

It is important that the following aspects be considered as key components to allow the economy to recover and eventually grow and by creating an environment for business to thrive:

  • Infrastructural support
  • Housing
  • Safety and Security
  • Ease of doing business
  • Focus on catalytic projects

This economic recovery plan is also supported by our proposals for the 2020/2021 municipal budget.

The DA’s budget proposals are underpinned by the following guiding principles:

  • The need to stabilize municipal finances and the ability to deliver
  • The need to safeguard municipal assets
  • The duty to maintain municipal infrastructure
  • The ongoing service delivery responsibility
  • The responsibility for Covid-19 social and economic relief and recovery measures
  • The obligation of minimizing the Covid-19 health risk
  • Dealing with the drought
  • The requirement that the Auditor-General and National Treasury requirements be addressed

Some of the issues our proposals focus on are:

  • Tariff Increases
  • Increasing Revenue Collection
  • Zero Tolerance for Wasteful Expenditure
  • Zero Tolerance for water and electricity losses
  • Identify and Fill Critical Vacancies

Focus on tariff increases:

The Metro is planning a drastic 30,3% rates increase budgeted for over the next three years. These exorbitant and unrealistic rates and tariffs will not be supported by the DA.

The DA makes the following proposals with regards to tariff increases:

  • Any rates increase, if any, must stay within the Consumer Price Index (CPI) band
  • Water and electricity tariff increase must be equal to the increase in the cost of bulk services
  • Any increase, if any, to the refuse and sanitation tariffs must stay within the CPI band increase
  • The Democratic Alliance’s Post Covid-19 economic recovery plan and budget proposals provide an outline of action that will both prevent further damage to and assist the economy to recover.

Regards

Cllr Nqaba Bhanga
DA EC Provincial Leader

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