The DA has held talks with the Durban Chamber of commerce to ascertain the feeling of the Chamber about various issues affecting the business potential of Durban as well as many concerns held by ratepayers.

The discussions focused on Durban’s inability to attract new businesses to the city through incentives as well as the need to grow the rates base of Durban. The discussions also highlighted serious concerns for both parties about the exodus of businesses to Gauteng, the ballooning debt for the city as well as current port crisis.

The Durban Chamber of Commerce and the DA were in agreement that the cities current situation of 8.4% of eThekwini residents paying rates and contributing to the R26 Billion budget is unsustainable. Durban has become is a very business unfriendly city and according to the Chamber there is an exodus of businesses moving out of Durban.

Common understanding was found on the need to support not only a rates holiday for business but also a lowering of rates, electricity and water; not only to business but also to residents and ratepayers. The municipality’s knee jerk reaction to needing more money is always to raise rates and utility costs to the end user, the position is that these should be lowered to stimulate jobs and invite people to move here as opposed to other cities. The municipality would loose income initially, but in the long term the municipalities revenues will increase due to that fact that more businesses and residents will move here because of the lower cost of doing business and the lower cost of living. The Durban Chamber of Commerce supports the lowering of these fixed costs to business and resident and they are in agreement that it would stimulate growth.

Commenting on the outcome of the meeting, Councillor Dean Macpherson and Economic Development Spokesman for the DA said “This was an incredibly fruitful meeting that gave us common ground on many issues that are affecting the performance of Durban and the high costs for businesses and residents. It was interesting to note that the Chamber is not happy with the inability of the city to provide an attractive environment for new business, a long held view of the DA. It appears the Chamber understands their role in promoting business and lobbying for the interests of businesses across the city and I certainly look forward to see a more vocal chamber in future. We simply cannot get away from these problems regarding our declining rates bases and exodus of business to Gauteng. It’s about time this council and the Economic Development Committee starts taking development and growth seriously.”

Councillor Rick Crouch, Economic Development Committee member said, “We urgently need a review of the special consent system, as it stands, with appeals, it can take up to 6 months or more for approval or denial. The kicker here is that the business owner has to sign a lease before the process can begin, so you have this building that you cannot trade out of and you are paying rent on it for the duration of the special consent process, then if you are denied consent you are stuck with a 2 or 3 year lease and cannot conduct any business. What business owner is going to want to go through that? There is a very evident need for the city to start eliminating the red tape for legal business’s to allow for fresh investment into the city of Durban.”

Both Councillors and the Chamber agreed that the city does not create jobs; it is our job as politicians and government to create an environment where jobs can be created by the private sector.

Issued by:

Councillor Rick Crouch – 0734186996
Councillor Dean Macpherson – 0837760202
Democratic Alliance Economic Development Committee
eThekwini Municipality