/ 28 March 2007

Zille says time to bite bullet on Cape Town rates

Cape Town’s rates and service charges are to increase by an average of 15%, mayor Helen Zille said on Wednesday.

”We need to take the hard decision to implement a substantial increase in rates and tariffs to ensure that we do not fall further behind in service delivery than we are already have,” she said ahead of the tabling of the city’s 2007/08 budget.

She said electricity charges would increase by an average of 5,6%, solid waste removal charges by 11%, and water and sanitation by 19%.

The city would try to limit the impact of the increases on people with fixed and limited incomes, especially pensioners and the disabled, by increasing rebates and support.

”I am mindful that in spite of these measures, the majority of the people of Cape Town will feel the impact of the rates and tariff increases,” she said.

But, Zille said, if Cape Town wanted to avoid the disaster of collapsing services, and wanted to get ahead, it had to invest now. – Sapa