Metro is scaring off business

The metro is chasing away business, charges the DA.

The DA has, once again, warned the mayor that the contributions demanded by the metro council of new businesses are effectively chasing away investors.

The DA went on to say that the fund costs are too high and are chasing businesses out of the metro, and demanded that the calculation of these funds be revealed to the public.

Speaking at the public council meeting recently, the DA’s Clr Benno Robinson said: “I am demanding once again that the calculation of the contributions to this fund be revealed to the public.

“Moreover, the metro is losing out on any kind of business investment when companies are forced to pay almost 100 per cent of the cost of the property to the contribution fund.

“Like local government everywhere, the metro charges businesses which want to develop properties they have purchased a fee to cover the costs of infrastructure development such as roads, storm water, sewerage and electricity connections.

“However, the metro seemingly has the highest contribution fund figures in the whole of Gauteng, waives the fee on a seemingly ad hoc basis and not even the officials who deal with property rezoning know how the various departments calculate their costs.

“My DA colleagues and I in the City Planning and Economic Development (CPED) oversight committee have, since July last year (2013), been promised that the calculation of how each department determines the cost of installing extra services will be revealed to us.

“We were promised information by October, which has come and long passed.

“The newly-opened Business Facilitation Centre, in Kempton Park, is at serious risk of becoming a white elephant if the contribution fund continues to chase away business.

“By way of example, a small bookkeeping business in an established area purchased the house across the road and rezoned it into a business.

“The purchase price was R850 000 and, even after the renovations, this business has now been charged R770 000 as a contribution, despite the fact that the metro has to do no work to provide bulk services such as additional roads or sewerage.

“Any business considering an investment in the metro would think twice or find alternative premises in another municipality when it comes down to the contribution fund costs.

“We raised serious concern on the item in the council meeting, because the agenda stated that clauses in the town planning document and ‘other relevant policies’ made provision for the metro’s contribution fund charges.

“In fact, there are no clauses in the town planning document, and the DA has to question that if these policies existed, they must be top secret, because no one seems to have read any of them.”