Date: 12/02/2003
Source: Western Cape Provincial Government
Title: Dowry: Drakenstein & Breederiver/Wineland municipal councils, W Cape


EXTRACTS FROM A SPEECH BY COBUS DOWRY, WESTERN CAPE MINISTER OF LOCAL GOVERNMENT, DURING VISITS TO THE DRAKENSTEIN AND BREEDERIVER/WINELAND MUNICIPAL COUNCILS

CONCERN OVER R25 BILLION NATIONAL CONSUMERS DEBT OF MUNICIPALITIES - - WESTERN CAPE NEEDS RESPONSIBLE CONSUMERS

Recent figures released by the Minister of Provincial and Local Government, Mr Sydney Mufamadi, indicate an increase in consumer debt at municipalities. The indication is that service arrears at municipalities across South Africa amount to R25 billion.

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.

There is a level of concern over the situation in the Western Cape. Currently consumer debt in the Western Cape amounts to R2,9 billion including the City of Cape Town's R2,1 billion. It must, however, be mentioned immediately that some municipalities succeeded in turning around their debt situation and are now making good progress. This is in part due to the implementation of the Municipal Support programmes of the Department of Local Government.

The Department of Local Government in the Western Cape is serious about responsible local government. This means control and sound management of budgets. It is therefore not far-fetched to expect the same from the municipalities in the Western Cape. For this reason the Department is currently busy with pro-active support to enable the municipalities in this province to function effectively. In doing this we can prevent an intervention in the domestic affairs of municipalities, as have happened with municipalities in other provinces.

I am proud to report that 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,
* Capacity building and training,
* Compilation and implementation of performance management systems,
* Updating of accounting records,
* Valuations,
* Improvement of administrative management systems, by-laws,
* Installation of pre-paid water and electricity meters,
* Water and sewage management plans,
* Projects which will increase the capacity for service delivery,
* Community participation, etc.

Responsible financial management of municipalities requires the compilation of a credit control policy at each municipality. By the end of March 2003 all municipalities must also, as a crucial component of the Credit Control Policy, have an indigent policy which can accommodate those who cannot afford basic services. This will enable municipalities to plan according to fixed guidelines and a decrease in consumer is debt possible with the proper implementation of a Credit Control Policy.

People are entitled to services of a high standard and the non-payment of these services must therefore be addressed. 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.

2/12/03 Jan Bosman
Source: Western Cape Provincial Government (http://www.westerncape.gov.za)