Cape Town - Opposition parties in council have voiced their concerns over the allocation of funds in Cape Town's infrastructure budget, accusing the City of adopting an anti-poor stance.
Mayor Geordin Hill-Lewis presented the “Building for Jobs Budget 2024/25” at a special council meeting on Friday, outlining an infrastructure spend of R39.5 billion over three years.
Budget estimates are that infrastructure investments will yield around 130 000 construction-related jobs over three years.
Hill-Lewis said R9bn of the R12bn infrastructure spend would benefit lower income households directly.
“Our final budget includes a massive R620 million more for sewer and water pipe replacements which, at a new total of R1.78bn, will go a long way to more dignified local conditions in communities.
“This is made possible by restructuring our delivery pipeline of major infrastructure projects for best results, as well as actual savings on our major Potsdam upgrade, which is coming in cheaper due to improved procurement conditions for the cutting-edge treatment technology being installed.
“The budget we table also includes a new R160m allocation to establish a joint policing centre that will cement our plans to help SAPS fight crime with more policing powers for criminal investigations, and seamless smart crime-fighting joint operations backed by tech,” he said.
For 2024/25, Cape Town's social package includes:
● Free water allocation, at 15kl monthly;
● Qualifying criteria for a 100% rates rebate, at R450 000 property value, or R7 500 monthly income;
● Qualifying criteria for lifeline electricity, at R500 000 property value, R7 500 monthly income;
● For pensioners – rebate and lifeline electricity criteria, at R22 000 monthly income, regardless of property value.
GOOD Party councillor Anton Louw said: "The City of Cape Town’s 2024/25 budget is anti-poor and anti-transformation.
“The budget introduces a series of unaffordable tariff hikes, while at the same time making it increasingly difficult for indigent residents to qualify for a free (or cheaper) basket of basic services.
“Also, the only way the City of Cape Town will create 130 000 new jobs this financial year will be to reward its election canvassers with some kind of temporary ‘work’ paid directly from the City’s fund.
“The City is fortunate that it has the reserves to do so, thanks in part to its profits from electricity sales.”
National Coloured Congress leader Fadiel Adams argues that the budget does not benefit anyone, especially individuals on the Cape Flats.
“It’s not a win that they are spending 70% of the budget on Cape Town because most of the areas in Cape Town are underdeveloped and need it. Also, they spend 70 to 75% of the budget on poor areas, but the service providers are mainly white businesses. How does this contribute to the economic growth of all Capetonians?” said Adams.
ANC representative Akhona Jonginamba accused the City of being opportunistic in its claims.
“This is not true or conceivable. The City must not lie to itself or the people of Cape Town.
“The City plans to spend a mere 2.7% on community service and health, with only 8% on human settlements and 3% on safety and security.
“Now explain how such a budget benefits the poor, taking into account the demand for housing and the backlog of housing in the city?
“On issues of safety, it is an insult to the poor and marginalised people of the city that the City doesn’t consider safety a priority in its budget.
Cape Argus