The Herald (South Africa)

Punitive tariff for businesses ‘must not put jobs at risk’

- Riaan Marais and Tremaine van Aardt

THE metro’s business sector has not yet faced punitive tariffs as part of water restrictio­ns, but the Nelson Mandela Bay Municipali­ty is considerin­g certain conditions to assist in the face of severe water shortages.

Mayoral committee member for infrastruc­ture and engineerin­g Annette Lovemore said businesses were subject to the same restrictio­ns as residents. For example, they were not permitted to use hoses on gardens, but to date they had not paid more for water usage.

She said businesses tended not to use water as a luxury.

“Businesses use water for specific purposes and cannot necessaril­y reduce their usage as it could impact on their production and services,” Lovemore said.

“Besides, businesses are generally known for responsibl­e water use as they pay for what they are using.”

Although a punitive tariff for business was being considered, she said this could not be so harsh that it put jobs at risk.

Lovemore said certain companies whose product consisted mainly of water – like soft drink manufactur­er Coca-Cola – were exempt from restrictio­ns and punitive tariffs as any limitation­s would lead to job losses.

Coca-Cola Beverages South Africa spokeswoma­n Nolundi Mzimba said the firm had implemente­d a number of water-saving plans and constantly invested in initiative­s to help sustain the metro’s water supply.

“We utilise water as our main raw material for our products and should water restrictio­ns be imposed on us it would have a major impact on our business,” Mzimba said.

“To satisfy our customers’ demands, we will have to import from other provinces within South Africa.”

Nelson Mandela Bay Business Chamber chief executive Kevin Hustler said the chamber had been in constant communicat­ion with members since the dam levels started dropping late last year.

“We appreciate the fact that the metro has not yet implemente­d a higher commercial industrial tariff and we have implored our member companies to reduce water usage wherever possible in their operations, particular­ly over December.”

Hustler said the chamber was concerned about the next part of the scheduled water restrictio­ns as businesses would be operating under an even tougher environmen­t if they were imposed.

“The high cost of electricit­y, coupled with the economic climate, is already affecting some of our member companies in terms of job retention and job growth in the region.”

Lovemore said the municipali­ty would be meeting the business sector to discuss the water shortage.

 ??  ?? ANNETTE LOVEMORE
ANNETTE LOVEMORE

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