Massive increase in power price

(And that's when it works) ... as reported on 93.8FM

Electricity Mark up on Eskom bulk 117%, increases domestic 35%, Commercial 27%. Johannesburg City Power. 20110802. Listeners. "On the Spot" with Jim Powell - Mix FM 93.8

 ON THE SPOT TUESDAY 26^TH JULY 2011 - AMENDMENT TO RATES BILL

Jim Powell - Host (JP)

Jonathan Davies - Pam Golding Estates (JD)

Jaap Kelder – National Tax Payers Union (JK)

JD is manager of Hyde Park Branch. Pam Golding is fortunate being a big brand. Good reputation. Gained market share

JK Vote once every 5 yrs. Proposals swept under carpet if you not in majority.

JP How many councils under administrative

JK. 5 or 6 under administration. 95% should be under admin. Government has not got expertise.

Sannieshof running independently. Feb 2008 town dry. 7 boreholes. Mrs. Visser saw manager who said pipe from Katze Dam R 12 million. Repaired motors for R 12000 and water flowed. Ottosdaal DelaReysville and Sannieshof run on 20% of the budget.

JK Property act. Absolutely devastating for inflation, property. Sect 1 Raising of taxes not linked to any particular service. Money can be spent on whatever they want.

JP Ratepayers have to pay but do not know what it will be spent on.

JK Budget for municipalities is in place but not adhered to. Years ago no municipal budget was exceeded, now the norm.

JD As it stands lots of questions raised. People will hold back from purchase, there is a dip in market, wait and see. Sales and rentals will be affected. Landlords will hold back.

JP Deputy Minister invited but ignored invite. So here is funeral march in their honour and applause to those present

JD Important to understand this could create anarchy. Businesses such as B&B should pay rates as hotels. 2^nd homes / investment not will be affected unless act is amended.

JD Heading for’ mild mayhem ‘

JK People trying to provide for pension, putting that in jeopardy, young people not have properties to rent any more

JP Townships. Those who have shacks on their properties will be affected

JK RDP houses let out and owners live in squatter camps

JP in JHB no rates for properties under R 150,000 value.

JK Agreed

JD I hear what JK says. My feeling is initial panic, people get used to things and I think this bill needs tweaking. Short term investors will sell. Supply and demand will sort out the situation. Rentals will increase.

JP Toll roads extra taxes coming in. Strangling the goose that lays the golden egg. More & more taxes. Reducing taxes and would increase jobs. New equilibrium. If rates go up so will rentals. Lower value of properties. Negative effect

JD Disagree … Initially under pressure, fewer props on market for rental. Relocating people will always rent. Higher price will be paid.

JP Rental market

JD Rental market improving after recession. Downscaling pushes up rentals.

JP prop buying to live in as opposed to renting out.

JD With increase in rental people will want to buy. Rather pay off bond.

JK National Taxpayers Union has 335 towns on mailing list. Full payers are members.

JP members pay R 20 to local organization.

JK money in is solely for legal expenses. Run from homes so no expenses

JP saves money for people being abused by the councils

JK Phalaborwa wanted to run the people down and the ratepayer’s assoc sorted it out. The council lost all their cases. Now no political parties on council

JP all people should join so email Jaap on info@zanli.co.za

JD Councils using money for what they like. Council should be more open with what they spend their money on.

JP General arrogant attitude of councils. Should consider who they work for.

How is market affected?

JD recession, weathering storm. Nice turn around. Prop market will be destroyed by this bill. Market will soften. Sideways at moment. Similar volumes but prices corrected

JK increased anger amongst people. People will have to down scale. Young stay with parents longer.

Rental will not be affordable

JK 76% of debt level at present. Councils trying to increase income.

JP Sannieshof a good example

JK R 62 billion not collected by local government. Over and above what is written off? Townships don’t pay.

JK One way to fix. Residents to get involved. Water important, no streams, rivers or damns not polluted. Need resident’s councils. Withhold rates, keep money in trust acc. Decide with council what is to be done. Phalaborwa got rid of city manager. Now getting things done.

JP Frankenwald. When the community organisation challenged illegal operation of council, the council’s attitude was “you use your money and we use your money” in the legal battle

JK Phalaborwa turned around.

JP A quote from someone in the legal department of Johannesburg was a week’s work in a whole year.

Incompetent cadres’ deployment. People with skills a threat so they get rid of them. All inexperienced people so no one knows what to do.

JK Western system does not work in Africa. Majority votes.

JD Agree. Situation if something isn’t done system will destroy itself. Solidarity of people tricky.

JP Switzerland has system where voters are in charge of politicians

JK Meeting on Saturday on Cantons. In constitution there are allowances for people to make contribution. Oranjeville example. Forgotten in 1994, so not part of New South Africa.

Between Hopetown and Petrusville. Run by Afrikaners no labour from outside. Safe area.

Own currency Ora.

JD in closing. Yes we have journey, will be solvable. Property market. Efficiently run council will help.

JK Unless Government Ministry of COGTA take notice there will be repercussions.