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