The ANC is itself responsible for a culture of non-payment of service fees which was created in the previous dispensation and now it wants to milk the payers of service fees to subsidise non-payers, Dr. Pieter Groenewald, the FF Plus spokesperson on cooperative governance, says.
Dr. Groenewald said during the second reading debate on the Local Government Municipal Property Rates Amendment Bill, that the Municipal Property Rates Act was established in 1999.
The principle was that rates were paid for services which were rendered and it was based on the municipal valuation of the property.
“One paid that tax for water and power access point. This applied to everyone. The costs were the same for everyone. The larger the property, the more one paid.
“Now it is not just about the costs to establish those points, it is also about the improvements to the property. The FF Plus says it is unreasonable as one paid the same to get the point on one’s property. If one erects a larger house and uses more water and electricity, one pays more for your services.
“This is the correct principle and always worked well. The problem was caused by service fees not being paid and the ANC is the cause of it, as they used the Civic Organisations to encourage non-payment.
“They are now reaping the fruit. What one sows, one reaps. Municipalities are now misspending their funds and arrear service fees amount to approximately R86 billion at this stage. It is nearly twice as much as the total budget for Defence in South Africa.
“The milk cows now have to be used. Now the people with houses have to be milked. Because the others aren’t paying, city councils are wasting money, officials are incompetent and corruption takes place.
“An alternative income source has to be found and that is why this Bill is on the table. Minister Nkwinti earlier spoke of the white bull and the black bull in land reform. The ANC government now wants the white cow to be milked. He has to pay. And that is wrong.
“We have to move away from the idea of the wealthy indefinitely paying for the poor. We have to move away to a point where one says that if people want services, one has to pay for it. Free basic services are given to the poor. One cannot allow people who pay for their services to subsidise those who do not want to pay. That is why the Freedom Front Plus won’t be supporting this Bill,” Dr. Groenewald said.
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