Clr Bill Rundle, the DA Shadow MMC for Roads and Transport, makes it clear that the reasons for the project in terms of socio-economic development for the region are very important.
“It will provide safe, affordable and manageable public transport to the community and is an initiative worthy of support by everyone,” said Rundle.
However, the DA Caucus in Ekurhuleni has opposed the approval of the IRPTN and BRT Business Plan presented to Council on Thursday, April 30.
“The item was, however, approved on a majority vote support by the ANC-led caucus,” said Rundle.
“A Division and Roll Call was called for by the DA, supported by three of the minority parties, which required each and every member of the council in sitting to cast their vote for or against the approval of the business plan.
“This will, in effect, mean that, should there be any legal actions and or claims against the metro resulting from the approval of the business plan, the opposing votes will be exempt from any claims and or legal action.
“However, members who supported the item may be held liable or sued in their personal capacities in the event of legal action.
“What is not supported is the end result of the haphazard financial planning by the metro through its residents, who will have to make good on operating cost shortfalls, which could be anything between R150-million and R190-m per annum for the next 12 years.”
Rundle said it is the intention of the metro to recover some of the shortfall from residents, through property taxes, said to be increased annually by 1.8 per cent over and above the standard increase.
“This could mean that the increase in the rates can escalate to as much as 10 per cent per annum for a 12-year period,” he explained.
“Just two weeks ago, the chairman of the Property Owners Association of South Africa stated, in an address to the association’s members, that property owners are no longer able to absorb the incessant and continued demands being made on owners by way of annual rate increases on the properties they own.
“The business, revenue, jobs and taxes generated from this sector – a multi-billion Rand industry of the economy – appears to be heading downhill very fast.
“There are no clear sources, time frames, undertakings and avenues that have been identified by the metro to support this project financially.
”It has already been established that the metro will be short R465-m and R190-m on Capex and Opex respectively, for the launch of phase one of the project in 2016.”
Rundle said the metro has not been able to explain from where it will obtain the funds.
“There are also several phases of the project that still have to be approved by council, and the DA will continue the fight to stop this project, or until a financially viable means has been found.”
