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Friday, April 13, 2007

I will cut through red tape, says Zille

By Anel Powell

Cape Town Mayor Helen Zille has made an "absolute commitment" to personally help businesses battling "unreasonable delays" because of council red tape.

"If business people feel they are being constrained by unreasonable delays, they can come to me directly and I will cut right through it (the red tape)," Zille said.

However, she added that this would only apply to unreasonable constraints that could be dealt with within the legal requirements.

She extended this invitation on Wednesday during a presentation of the city's five-year Integrated Development Plan (IDP), which forms the basis of the draft and final budgets.

Red tape was highlighted as the biggest constraint to companies wanting to set up businesses, according to a study by Wolpe Development Strategies, which was commissioned by Wesgro at the city's request.

One focus of the IDP was good governance.

Zille said the city was losing investment because of council delays in releasing industrial land. Boat builders were considering moving to Ireland because Cape Town had not yet made industrial land in Atlantis available for boat yards.

Wesgro's report noted that SA boat yards produce 28 percent of the world's catamarans. The Western Cape boat building sector directly employs 3 200 people, with an export turnover of R1,2-billion.

Most of the business is based in Cape Town, with local company Robertson and Caine being the third-largest builder of catamarans globally.

"People want to invest here, but cannot because we have not put land out to tender," said Zille, adding that the city had to improve its internal processes.

The Wesgro report identified the city's poor delivery of services and shortage of adequate infrastructure as constraints on investment and running businesses.

Ian Neilson, mayoral committee member for finance, said the city would fall further behind on bulk infrastructure unless it increased rates.

Without money for the maintenance of bulk infrastructure, there would be more electrical failures, sewerage would overflow and water pipes would burst, he said.
"We are aware that the above-inflation increases (of rates) are uncomfortable, but if we don't do it, there will be breakdown of services," he said. The draft budget proposes a rate and service charge increase of 15 percent.

The IDP sets the following targets:

# The creation of 13 000 jobs by business and industry by 2012.

# A direct investment of R3,6-billion by 2012, and basic water and sanitation services to all by the same year.

# The provision of 4 000 houses a year has to be increased to 12 000 by 2012.

# The city aims to upgrade services for 249 informal settlements.

The African National Congress has "condemned" the IDP and draft budget for being anti-poor and drafted without adequate consultation.

"The Democratic Alliance's failure to consult the public before developing an IDP, as required by law, leaves the city with a skewed budget that does not reflect the needs of communities. It also sees the City of Cape Town adopt a rates and tariffs policy that fails to make a meaningful contribution towards the fight against poverty and the creation of a better life for all," ANC provincial spokesperson Garth Strachan said.

He said the rates increase would be a "huge tax burden" on the poor.

The public have until May 10 to comment on the IDP.
Article from http://www.iol.co.za/
No red tape, but red cars from www.southafrica-carhire.com

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