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THE decision by the City Council to increase property rates by 10 % instead of the 10.83% in the draft budget is welcome but it is not enough, says the Cape Chamber of Commerce and Industry.

“This is a small improvement but all the increases are still way in excess of the inflation rate and business and residents simply cannot continue to accept increases of this magnitude year after year,” said Ms Janine Myburgh, President of the Chamber.

She said the City Council should do what any business would do in these circumstances and cut costs.

She pointed out that in hard times businesses had had to resort to measures like wage freezes and the scrapping of bonuses.

“It is not easy to take these tough measures but there is no alternative. Salaries in the public sector are higher than those in the private sector despite the fact that job security and benefits were better,” Ms Myburgh said.

She said the combination of the 10 % rates increase, the 10.82% electricity increase, the water and sanitation increases of 11 % were just too much.

“I would suggest the city start working on cost reduction measures right now because ratepayers are not going to put up with these hefty increases for much longer,” Ms Myburgh said.

Issued by The Cape Chamber of Commerce and Industry