Source: Western Cape Provincial Government
Title: Dowry: Answers to questions in Western Cape Provincial Legislature
QUESTIONS FOR ORAL REPLY IN THE WESTERN CAPE PROVINCIAL LEGISLATURE, BY MEC FOR LOCAL GOVERNMENT, MR COBUS DOWRY, 18 March 2003
QUESTION 12
Ms KA Mqulwana to ask Mr Cobus Dowry, Minister of Local Government:
In the light of huge arrears owed to the City of Cape Town by business and residents, whether there is a mechanism in place to deal with this problem; if not, why not; if so, what is the plan?
REPLY
The question was referred to the City of Cape Town which replied as follows: "The City is busy developing an Indigent Policy and reviewing the Debt Management Policy to ensure that the poorer customers receive municipal services whilst ensuring that those who could afford to, settle their municipal accounts".
Currently consumers debt in the Western Cape amount to R2, 9 billion which includes the City of Cape Town's R2, 1 billion. The indication is that service arrears at municipalities across South Africa amount to approximately R25 billion.
It must however be mentioned immediately that some municipalities succeeded in turning around their debt situation and are now making good progress. The implementation of the Municipal Support programmes of the Department of Local Government had no small role to play in reversing the negative situation at some of these municipalities.
The Management Support Programme, which is funded in the current financial year with R16, 5 million, has been implemented at 24 municipalities with the implementation of 282 projects, which include amongst others:
* Compilation of asset registers,
* Compilation of cash funded budgets,
* Long-term financial planning, and
* Capacity building and training.
It must be stated categorically that service arrears impacts negatively on the planning of municipal budgets and that the core function of municipalities, namely service delivery is adversely affected.
It is now, more than ever, necessary for a culture of responsible consumers, who will pay for services delivered. Service delivery as well as the provision of infrastructure in our towns and cities will be the victim if we do not succeed.
Enquiries: Jan Bosman on 021) 483-4798, (021) 483-4466, 083-7755-312
Issued by Department of Local Government, Western Cape
18 March 2003
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