ANC proposes five-month rates holiday for businesses in Nelson Mandela Bay

ANC regional task team co-ordinator Luyolo Nqakula, whose name is on a letter suggesting rates relief for Bay residents and businesses
BIG GESTURE: ANC regional task team co-ordinator Luyolo Nqakula, whose name is on a letter suggesting rates relief for Bay residents and businesses
Image: SUPPLIED

The ANC in Nelson Mandela Bay wants businesses and residents to be given a five-month holiday from paying municipal rates.

This comes as many businesses slashed salaries by 30% due to the Covid-19 global pandemic which resulted in a national lockdown.

More people have been put on short-time while other employers have simply been unable to pay employees.

The ANC regional task team has also urged the municipality to establish a support fund for small businesses in the metro, among other proposals.

A letter signed by ANC regional co-ordinator Luyolo Nqakula proposed the city contribute between R100m and R200m as seed funding while roping in private companies in the automotive sector to help smaller business owners.

In his letter, Nqakula said coronavirus had negatively affected socioeconomic development in the region and that the ability to recover post-Covid-19 would depend on how the pandemic was handled and what socioeconomic measures were put in place for sustained growth.

“To provide a comprehensive response, the municipality must set aside [a] budget to provide [for] vulnerable citizens, businesses, particularly SMMEs [and] EMS who will be hard-hit by the effects of Covid-19.

“This will also assist the municipality to institutionalise the provision of support to households and businesses confronted by these challenges in times of disaster due to slow economic growth and unemployment,” Nqakula said.

He proposed the SMME fund be controlled by the city's CFO, the acting city manager or the COO.

“That money could be found from unused sources of budgets, which may need budget reprioritisation, in consultation with National Treasury,” he said.

On food relief, Nqakula said the pandemic had exposed the vulnerability of residents in terms of food security.

Since the distribution of food parcels for the poor by the department of social development began, some councillors have been accused of stealing parcels.

Addressing this, Nqakula said the municipality should appoint a non-profit with a proven track record in food sourcing and distribution to partner with the private sector, donor community and other entities to do this.


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