This was according to economists.co.za’s chief economist, Mike Schussler who said people that were making their rates and municipal services payments were being overburdened to ensure that those who could not afford such services could also receive them.
Higher costs for rates, water and electricity were being “pushed” onto people who could afford them, he said.
Speaking during the handover of newly-built houses to residents of the Elias Motsoaledi informal settlement, Mayor Parks Tau said the city council had a number of programmes to assist those who could not afford municipal services.
“Those that can afford [services] we urge them to continue to pay for their municipal services. Our approach is to encourage those that can afford, to pay, and those that can’t afford should actually be registered on the programme and the city will be able to assist them.”
According to the city council, about 1 20 527 households were currently registered on its Expanded Social Package Policy to receive free services.
Schussler said the city council’s approach was another method of redistribution of wealth, which was unfair to those who could afford to pay for municipal services and were doing so because “everybody enjoyed the services”.
According to Schussler, statistics as at the end of December 2013 revealed that Joburg’s total debt due to unpaid municipal services for the 2013/14 financial year was R15.5 billion and of that R13.7 billion was debt which was more than 90 days old.
He added that R1.7 billion of the amount owed to the city council would be written off.
Schussler noted that these figures did not include the costs of water and electricity that could not be accounted for such as leaks, stolen water, and electricity and unbilled consumption.
However, he said the problem was not limited to the affordability of services, but also the quality of services rendered.
“While it isn’t ideal to pay for someone else’s services, if I do have to pay for other peoples’ services I want the quality of my services to be good.”
