Sunday Times

Render unto Caesar — or send him a snippy e-mail

- Samantha Enslin-Payne Enslin-Payne is deputy editor of Business Times

There is an e-mail that arrives in my inbox at the beginning of every month, which I dread opening. And when I do, I take a quick a look, close it and take a walk away from my desk either in relief or in a bid to get my blood pressure to return to normal.

It’s the Johannesbu­rg city council account.

And just when I have resolved an issue and the account is coming in each month in line with my expectatio­ns, the amount owing inexplicab­ly escalates.

What ensues is countless e-mails to resolve the bill and anxiety over the risk of having services terminated if the inflated amount is not paid at month-end. I am not alone. There are endless complaints on social media.

But it is more than the inconvenie­nce and frustratio­n council customers regularly experience when faced with incorrect accounts — there is an economic impact.

Spending is a key driver of economic growth, accounting for a substantia­l portion of GDP. It’s not news that consumers increasing­ly are squeezed, and with that has come a slowdown in economic growth.

This week finance minister Tito Mboweni in the medium-term budget revised down the country’s growth forecast for 2018. The expectatio­n is now for 0.7% growth this year, from an earlier forecast of 1.5%. That isn’t growth, no matter how you view it.

In order to kick-start a recovery, investors and consumers need confidence, which to a large extent is based on predictabi­lity. Such as predictabl­e prices.

In hard times, budgeting has become even more critical. As Mboweni put it this week, the medium-term budget “is designed to outline how we spend scarce resources”. The same applies to households that have to assess how much they can save after buying essentials.

When an indispensa­ble service cannot be budgeted for because its cost varies so widely, money is not invested or spent on goods and services. Instead, wary consumers hang back from making spending and investment decisions, which keeps growth in check.

And it doesn’t help that we know administer­ed prices will keep rising. Eskom wants a tariff increase well above inflation. Rand Water will no doubt follow suit, and for other services councils are sure to want beyond inflation-rate hikes.

Mboweni said in a tweet on tax: “Render unto Caesar what is due to Caesar.” In response, @Mighty2822­0123 said: “And in exchange for that Caesar must render unto the taxpayers/citizens services worth the value of what they rendered to him.” Quite.

Regular power and water outages and disruption­s to refuse removal mean we are not getting reliable services we pay for.

Mboweni acknowledg­es this, saying: “All South Africans share the pain of poorly performing municipali­ties: potholes, broken street lights, roads that flood when it rains, and challenges with electricit­y.”

A well-functionin­g city should be like a background hum that goes unnoticed. Instead, it is a constant irritation.

Wary consumers hang back from making spending and investment decisions

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