Letter: Plight of pensioners

William Hart of Ballito writes:

The forecast for the economy for 2020 is negative, unemployment is expected to increase greatly, the JSE and other world markets lost between 20 and 25 percent of value this year and business confidence is at its lowest level in the past 20 years.

There has been no relief or tax breaks made to pensioners to assist them during these trying and uncertain times.

Pensioners on a defined pension scheme will not feel the effects now, however the annual percent increase could be lower in future years.

Many pensioners rely on interest on their investments, this will now be paid a far lower rate.

Those who supplemented their income from rental of properties are faced with tenants being unable to afford the rent, and it will be difficult to sell a property now.

KwaDukuza municipality is proposing increases of 6% for rates, 4% for refuse removal and 6,9% for electricity.

These far exceed the expected inflation rate of 3,5%.

If the total expenditure is analysed, 83,45% of total expenditure is made up of employee related costs (23,87%), bulk purchases (41,78%) and other expenditure 17,8%.

Our President informed businesses that “it cannot be business as usual”. This must surely also apply to municipalities. If the municipality eradicated wasteful expenditure, improved efficiencies and changed business models, the budget could be reduced considerably.

The municipality is requested to consider assisting residential property owners by reducing the increase on refuse removal to 3,5%, rates to 4,5% and increase the rebate for pensioners from 34.2% to 35% for one year.

If the above rates are applied this will result in a small saving for all residential property owners and an additional amount for pensioners.

Letter shortened – Editor.

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