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Building for Jobs Budget 2024/25: A record pro-poor infrastructure investment

Speech by the City's Executive Mayor Geordin Hill-Lewis at a special council meeting on 31 May 2024.

Madam SpeakerFellow CouncillorsMy colleagues in Team Cape TownMembers of the publicGoeiemôre, molweni, as-salam alykum, shalom, good morningThere is an old saying – the origins of which are disputed – which goes "May you live in interesting times". Some theories say, it is meant as a curse, while others take it as a face value wish of goodwill for a fulfilling and exhilarating life. What is for certain for us here in South Africa, and our beloved Cape Town, is that we are writing history all the time.We have just held our 13th successful election in democratic times – if you count our local elections along with national ones. That is a remarkable achievement for our continent, and many other parts of the world where democracy continues to emerge.We can take great pride in our ability to hold free and fair elections in South Africa, and certainly, we have a history of working across political divides for a better nation, which is a unique quality globally that we must be sure to treasure. While the outcome of the 2024 elections is still in the balance, some of the themes of the results are clear.I congratulate everyone in this Council on the campaign that they fought over these months. It is natural that in a campaign, tempers flare and temperatures sometimes rise. I hope that we will now focus again on that which unites us – and especially our common love for Cape Town, the Western Cape, and South Africa – and our commitment to growing the economy to lift people out of poverty and into work. That will always remain our purpose here, because it is the only way South Africa can work for all of its people in the future.Of course the most important major theme of this election is the end of the era of one party dominance of our national elections, and this era is over forever. Never again will one party dominate a national election in South Africa, and this is indisputably positive for South Africa's democracy.Our democracy has matured and aged decades this week, and frankly, no matter what follows, the long term prospects for the prosperity of our country have improved dramatically this week.The end of this era has also meant the ushering in of the era of coalition government in South Africa. We know there will be….I also want to take a moment to say 'thank you' from the bottom of my heart to all Capetonians who voted to return the Democratic Alliance to government in this province with the same majority. We are grateful for your faithful support, and will always work to honour that faith in us through a government that demonstrates integrity, and by working each day to improve the lives of our poorest residents.This is indeed the only province and only city that works, and voters have shown recognition of that fact in their voting decision this week.When people look back at these times for our city, it is my hope that they will see the efforts made to place Cape Town at the very centre of positive change, at the heart of our national economy, and at the cusp of a better future for families who have real hopes. Hopes for a better life for the next generation, for an economy that works better now, with no load-shedding, much safer communities, and importantly, dignity, for all Capetonians, no matter where you live.Today, as part of the Building for Jobs Budget, we adopt a record planned infrastructure spend of R39,5bn over three years. This is more than all three Gauteng metros combined, and forms part of a R120bn 10-year pipeline of planned projects that will catapult Cape Town into the future city we all hope it can be, for ourselves, and our children.I want to thank every Capetonian who took the time to participate in the extensive comment period on this budget, and who advocated for the projects most needed in your communities. We have heard your inputs, and with this biggest ever infrastructure budget tabled by a South African city, we are confident that we can bring the change you hope for your community over time, and importantly, with your help.Of the R12bn we plan to invest in 2024/25, 75% will directly benefit lower income households.We are investing in better sanitation – such as SA's largest bulk sewer upgrade on the Cape Flats, major wastewater treatment expansions, and a quadrupled rate of sewer pipe replacement to 100km a year across our city. Our final budget includes a massive R620m more for sewer and water pipe replacements, which at a new total of R1,78bn, will go a long way to more dignified local conditions in communities. This is made possible by restructuring our delivery pipeline of major infrastructure projects for best results, as well as actual savings on our major Potsdam Upgrade, which is coming in cheaper due to improved procurement conditions for the cutting edge treatment technology being installed.We are also investing in more water security from new sources, and less load-shedding as we upgrade our electricity grid, buy power on the open market, and say goodbye to Eskom reliance over time.We are investing in much more policing resources for crime hotspots. The budget we table today also includes a new R160m allocation to establish a joint policing centre that will cement our plans to help SAPS fight crime with more policing powers for criminal investigations, and seamless smart crime-fighting joint operations backed by tech.We are further investing in the mammoth multi-billion rand investment to expand the MyCiTi bus service link to communities across the south-east of our city, from Khayelitsha and Mitchells Plain to Hanover Park, Phillipi, Heideveld, and more. If we can achieve this, we can also achieve a better rail service that is safe, affordable, reliable, and run by the City in a devolved system. And besides this, Speaker, we are investing in better parks, better sports facilities, libraries, Safe Spaces for the homeless, and communities that work, from roads to streetlights, better refuse collection, and major upgrades to informal settlements worth R3,7bn over three years. Let's take a moment to acknowledge that the Building for Jobs Budget tabled today represents South Africa's largest ever infrastructure investment by a metropolitan municipality to the direct benefit of especially lower income households, and our city as a whole. The R9bn pro-poor infrastructure spend in 2024/25 is bigger than the entire infrastructure budget of any other city. It is the factual end of the debate on which city is doing the most for the poor.These investments will yield an estimated 130 000 construction-related jobs alone over three years, to build on the momentum of the well over 300 000 jobs added to our local economy since the start of this local government term. With SA's lowest unemployment rate, Cape Town is already the city where a person is most likely to find a job, and we plan to do much more to grow our economy in the years to come to the benefit especially of lower income households.We believe, hope, and trust that this budget will make a difference – because so many worthwhile infrastructure projects have never been planned and executed before at this scale in our country.What makes this budget quite exceptional, is that we are able to achieve this historic infrastructure investment in Cape Town's future, while also showing absolute respect to our ratepayers, and tabling an unrivalled social package to protect lower income households.All the tabled budgets of the various cities confirm that Cape Town has the lowest property rates for residential, commercial, and industrial properties.Cape Town's property rates are lower than the next metro, Joburg, by 32% for commercial, 36% for industrial, and 28% for residential properties, based on the statutory cent-in-the-rand formula.So if you are thinking of starting a business, or moving your business from elsewhere in the country, know that Cape Town is the place with the best deal for you. We are proud to also offer a fair deal to households.For 2024/25, Cape Town's social package compares favourably to other cities on all the main pro-poor criteria, including:<ul><li>The highest Free Water allocation, at 15KL monthly</li><li>The widest qualifying criteria for a 100% rates rebate, at R450 000 property value, or R7 500 monthly income</li><li>The Widest qualifying criteria for lifeline electricity, at R500 000 property value, <R7 500 monthly income</li><li>And for pensioners: the widest rebate and lifeline electricity criteria, at R22 000 monthly income, regardless of property value</li></ul> Cape Town also has the highest proportion of residents benefitting from free basic water and electricity, according to StatsSA's non-financial census data for municipalities released in March 2024. The City is 10 percentage points ahead of the next metro for free electricity, and 25 percentage points ahead for free water and sanitation. When one considers all that Cape Town is achieving in passing this budget – a record infrastructure investment, an unrivalled pro-poor agenda, and impetus for a job-creating economy – let us all remember one very important thing.Absolutely none of this would be possible without good governance, and the culture of pride in service delivery, especially for the poorest, that is now embedded in our professional civil service, after many years of political stability in Cape Town. At the beginning of this term of office, we committed to do more – to end load-shedding, to make Cape Town safer, release more land for housing, improve public transport, do the basics better, clean up our city and waterways, and make Cape Town the easiest place to do business in Africa. With this Building For Jobs Budget, our investments target Cape Town's fastest-growing, and poorest areas, with infrastructure projects that will, over time, unstitch the unjust legacy of our country's past. Our challenges are all around us, our eyes are not closed to them. Instead, we prepare to meet these challenges head-on together with residents. We can jail the extortionists threatening frontline services in our poorest communities. We can convict the metal thieves profiting off our critical infrastructure at the expense of lights in our streets and homes. We can move all of our city's cities electricity supply areas under the City and away from Eskom's poor service delivery. To report extortion or metal theft, call our 24-hour toll-free hotline on 0800 110077 and get rewards for your anonymous tip-offs leading to arrest or prosecution. And sign our petition at change.org to back the City's takeover of Eskom supply areas for better service delivery, load-shedding protection, and more affordable electricity sources for all. We are laser-focused on delivering on the pledges we've made, and honouring the faith shown in us by Capetonians. This budget is the blueprint to fulfil our promises, and to be a beacon of hope, as we show South Africa that we can be the nation we all dream of, that our constitution envisions, and that our talented and potential-laden people deserve. In this way, we are building a City of Hope for All in line with our long-term vision. Honourable Speaker, this budget is hereby tabled.I thank you.

2024-05-30T22:00:00Z

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