In an effort to retain businesses and property owners directly affected by last week’s politically motivated rampage, looting and destruction in eThekwini, the Democratic Alliance in eThekwini proposes that Council resolves, as a matter of urgency, provide an urgent amendment to the rates relief policy.
The chaos and destruction which unfolded in KZN due to ANC factional battles, has led to a breakdown in trust and ability to provide a stable and safe environment where business and residents can operate, commute and live.
This trust needs to be restored urgently in order to retain big and small business who employ thousands of people, and contribute to income generated from electricity and water usage.
The DA is insisting that the ANC led eThekwini Council approve the DA’s proposed approach for rates relief as there is a real threat that many businesses destroyed during the riots will relocate outside the City if not outside KZN altogether.
If the ANC were to collect just 30% of the R16 billion outstanding overdue debt from parastatals and other government departments the rates relief program would easily be covered.
Other innovative funding can be found by reducing the R1.6 BIllion theft and loss of water, eliminating unauthorised expenditure of R270 million or even reducing the millions spent on VIP security.
The Democratic Alliance proposes the following urgent rates relief:
- For all commercial/retail buildings/homes which suffered major structural damage due to being burnt down, causing foundational damage – 100% rates rebate for 12 months; thereafter a 75% rates rebate until a beneficial occupation certificate is issued.
- For all commercial/retail premises damaged but not burnt down, and which require substantial repairs – 100% rates rebate until trade is able to resume or office workers able to return, for a maximum of 9 months.
- For all residential properties which have been damaged but are uninhabitable – 100% rates rebate until repairs completed and a beneficial occupation certificate has been given, for a maximum of 9 months.
The Motivation for this Rates Relief is based on the following:
For buildings that suffered major fire damage, it is likely that they will need to be demolished and new plans submitted for a complete rebuild which could take up to 6-8 months from date of application alone. Thereafter, depending on the scale of reconstruction, a further 12-18 months’ timeline to be accounted for. During this period, either no income will be generated by the affected business, or heavy costs will be incurred in finding temporary alternative premises, or no income will be derived from tenants.
In the case of residential property, owners will need to pay for alternative accommodation until the rebuild or repairs are completed.
These applications can be monitored to ensure that no one takes advantage of these relief measures. If it is established that advantage has been, or is being, taken then all rebates will be reversed, and penalties applied.
In addition, the Democratic Alliance calls on the municipality to make available whatever additional resources are required to fast track all applications that are made in line with the reconstruction process related to last week’s rioting
The Democratic Alliance is concerned that if we lose these businesses the city’s income will be so severely impacted it will not be able to afford the current high level of cross subsidies for free housing, water and electricity let alone taken on more.
This proposed rates relief will assist businesses from small spaza shops to multi-nationals which were either destroyed or severely damaged.
It is time for the ANC to show leadership and prioritise the people of eThekwini and the province at large in order to save jobs and stabilise the economy.