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Inside Report with Basch: Business vs Government

I think I am starting to get a clear picture of what is wrong with the metro.

I think I am starting to get a clear picture of what is wrong with the metro. Actually I have suspected this for a while now but it was confirmed by the speaker of the house – there is no room for a businessman in the council chamber.

Let’s go back a step to how this came about. I was asked to address council on a city planning and economic development report on the built environment performance plan. This is a plan that takes into account the overall objectives in the continued development of the city. It is with this plan that our grants from the National Treasury will be allocated. So it’s a very important document.

In the past I have been criticised for being too attacking and not conciliatory enough. That it’s easy to mention the problems but not give a solution. So this time round I decided to not attack but to be more logical.

I pointed out that an organisation could actually achieve failure if it successfully follows a plan that is flawed. And that, as a politician, I can see the big picture – new infrastructure must mean that we will get new investment. Only that’s not entirely accurate. I pointed out that as a businessman I see things with a resource scarce mindset, how do I optimise my spend? If I invest one percent in infrastructure what percentage should I see as a return? Internationally its one percent spend equals one percent economic growth but in South Africa one percent spend means only 0.19 percent growth. That means we don’t even see a quarter of what we put in as a return in terms of growth.

What I suggested was that we invest in our current high value and high return areas to increase the profitability of these zones. This on its own would attract new business, new investment and let local government do what its supposed to do. That is to deliver services and let the entrepreneurs do what they do and that’s drive new investment. This thinking enraged the ruling party with my counterpart Councillor Diamond insisting that I not address the council as a businessman but as a councillor as this was not a place for businessmen.

That brings me to my point, in a metro charged with the financial and business decisions that effect each and every one of your lives, wouldn’t you want to know that actual business people are making business decisions? Or is it better to know that politicians, with no minimum qualification needed, are deciding how much, when, where and why you have to pay?

Now look around you and ask yourself: is it any wonder it is all falling apart?

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