Issued by: Office of the Presidency
Date 1 December 2000
The Independent Commission for the Remuneration of Public Office Bearers has been re-constituted by the President with the following members:
Honourable Justice RJ Goldstone (Chairperson)
Mr DC Brink
Dr CV Jones
Ms DNM Mokhobo
Mr E Molobi
Mr D Smith
Mr LM Taunyane
The re-constituted Commission met for the first time on 27 November 2000 and considered a Report by its Consultants -Deloitte & Touche, who were appointed during 1999 to advise the Commission on the remuneration of Municipal Councillors.
The Commission found the task demanding as there is uncertainty resulting from insufficient financial information, including potential rates income, of the post-municipal election municipalities. The Commission also had to make assumptions with regard to anticipated roles and functions of part-time councillors serving in the new and different types of municipalities.
Without having the advantage of discussions and deliberations enjoyed by their predecessors, the newly appointed members had to make recommendations on these and other complex issues in a limited time. The Commission therefore decided to adopt a conservative approach in making its recommendations.
Having due regard to the recommendations of the Consultants, the following principles were adopted:
Affordability Considerations
The Commission is acutely aware of the! of municipalities. For this reason, the affordability of councillor remuneration is of paramount importance. The Commission also accepts that some of the smaller municipalities may find it difficult to afford the Commission's recommendations due to their weak rate basis.
MECs are tasked with local government matters and are ultimately responsible for determining the actual remuneration levels of municipalities after taking into account the upper limits in this regard as determined by the National Minister for Provincial and Local Government. The Commission recommends that MECs exercise their discretion and adjust the recommended remuneration levels downwards should it be apparent that a municipality will not be able to afford the recommendations.
To ensure that municipalities do not spend a disproportionate amount of their available income on councillor remuneration, the Commission recommends that a ceiling be imposed on the percentage of income which municipalities may spend on councillor remuneration.
Ranking
For remuneration purposes the Commission also recommends that municipalities be classified into 6 different categories on the basis of the number of registered voters and the prior year's rates income. These are factors that can be independently monitored and verified.
Levels of Councillors
The Commission recommends the following levels of Municipal Councillors:
Level 1 Executive Mayor
Level 2 Deputy Executive Mayor Councillor responsible for Financial Matters Mayor
Level 3 Members of Mayoral and Executive Committees Speaker Chairperson of Sub-Council Deputy Mayor Other full-time Councillors, if any
Level 4 Part-time Councillors
Upper Limit of basic salary for full-time Councillors of Category 6 Municipalities In determining the upper limit of remuneration for a full-time Executive Mayor of the highest ranked municipality, the Commission recommends that this position be equated to that of an MEC having regard to the similarity in the roles and responsibilities entailed in the two positions. Cognisance was however taken of the role played by MECs in undertaking collective responsibility in providing executive support to the Premier. The Commission consequently recommends that the remuneration of a full-time Executive Mayor of the highest ranked municipality be pegged at 75% of the total remuneration of an MEC, after deducting the motor vehicle allowance, the allowance paid to MECs to maintain more than one household and the parliamentary allowance paid to MECs. This basic salary amounts to R205 934 per annum.
The Commission is of the opinion that the allowance paid to MECs in respect of maintaining more than one household, and the parliamentary allowances are specific to that position and is of a re-imbursive nature and hence not appropriate for inclusion in determining the salary of an Executive Mayor.
The travel allowance is dealt with below.
Remuneration differentials between different levels of Municipal Councillors:
The following levels are recommended as the basis for differentiating between the different levels of Councillors:
Level 1 100%
Level 2 80%
Level 3 72%
Level 4 Remuneration determined in accordance with standard ates and hours dealt with separately.
Remuneration of Part-time Councillors: Upper Limit standard rates and hours The Commission accepted the proposed recommendation by its Consultants that the standard monthly hours and rates be used to determine the appropriate upper limit of remuneration of part-time councillors for the different remuneration categories of municipality and positions occupied by part-time councillors in a municipality.
The following hourly rates are recommended:
Grade of Municipality Grade 1 Grade 2 Grade 3 Grade 4 rade 5 Grade 6 Rate/hour R55 R65 R76 R88 R100 R113
Other Allowances
A reimbursive telephone allowance of R500 and R250 per month for part-and full-time councillors respectively is recommended. Full-time councillors will have use of an official telephone at their offices.
The Commission is mindful of the fact that some councillors may have to use their personal facilities to conduct council business and community liaison work and recommends that these councillors at the discretion of the MEC, receive a monthly allowance of R200 to compensate them for the use of their personal facilities. This allowance should only be paid in instances where no alternative council facilities are available. Medical Aid and Pension Benefits for full-time Councillors
The Commission recommends that:
(a) full-time Municipal Councillors be allowed to join a medical aid scheme of their choice, which is registered with the Registrar of Medical Aid Funds; and
(b) the municipality pay a monthly contribution amounting to two thirds of the actual premium payable by the member in respect of the member and his/her immediate dependent/family members as determined by the relevant Medical Aid Funds, subject to a maximum municipality contribution not exceeding an amount equal to the amount payable by the State in respect of its full- time employees, or a lessor amount as determined by the Minister for Provincial Affairs and Local Government.
In respect of Pension benefits the Commission recommends that -
(a) a retirement dispensation for full-time councillors be established on a national basis which should be similar to that provided for public office bearers at national and provincial levels of government;
(b) the contribution should be as follows: Council - 15% of Total Remuneration Member - 7½% of Total Remuneration; and
(c) the existing Municipal Councils Pension Funds be closed provided that the rights of the various stakeholders be carefully considered and evaluated. A negotiated resolution of this issue should be initiated under the leadership of the relevant Ministers at national government level.
Travel Allowances
The Commission is aware that transport might constitute an important need for councillors in the pursuance of their duties. As an interim measure only, and pending a more detailed investigation in this regard, the Commission recommends that the existing system of travel allowances be retained. This issue will be revisited early next year.
Conclusion
The Commission accepts the fact that its recommendations will not necessarily be appropriate for all municipalities. It does however have an ongoing mandate to address all issues and implementation difficulties.
Given the high level of uncertainty which for some time will be a feature of local government, the Commission acknowledges its constitutional obligation to review its recommendations on an ongoing basis.
These recommendations can be found in a Special Government Gazette printed on 1 December 2000.
The Commission's Report will be available on 12 December 2000
JUSTICE RJ GOLDSTONE
CHAIRPERSON
INDEPENDENT COMMISSION FOR THE REMUNERATION OF PUBLIC
OFFICE-BEARERS
Contact Person: I Olivier
Tel.: (012) 319 1565 (o/h)
Tasneem Carrim
Communications
The Presidency
Private Bag X1000
Pretoria
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Tel: +27 (0)12 319 1500
Fax: +27 (0)12 323 6080
Cell: +27 (0)83 650 7119