Stakeholders urge Harare to cut salaries

THE business community has urged the Harare City Council to reduce its salary bill, which is taking up 51 percent of the city’s budget, and the “high” rates it is charging ratepayers in its 2018 budget.

Speaking at a pre-budget consultation meeting between business and council meant to gather their input into council charges and expenditure, stakeholders urged the city to deal with vendors and traffic congestion.

Presenting the city’s financial position, finance director Mr Tendai Kwenda said the city was burdened with a salary bill of $15,4 million monthly.

“The city’s salaries are currently accounting for 51,3 percent of the revenue, ideally it should be 70:30 in favour of service delivery,” he said. “We are, however, consulting because services like refuse collection should be considered as part of service delivery.

“Consumables for roads account for $600 000, repairs and maintenance $500 000, hire charges $400 000, water chemicals $2,5 million, electricity mostly for Morton Jaffray and Prince Edward $1,2 million and fuel $600 000.”

Mr Kwenda said residents owed council $282 million, while industry owed $46 million, commercial $260 million, Government $26 million and sundry $76 million.

Harare also owes several institutions $440 million mostly for statutory obligations.

Mr Kwenda said Harare had payment plans, with most of the statutory bodies, which it was adhering to.

Confederation of Zimbabwe Industries Mashonaland Chamber president, Dr Rangarirai Dadirai, said industry was concerned with the high level of rates.

“The charges which are being billed by council in various industries are on the higher side,” he said.

“We are going to put together a position paper, which we are going to present in the next few days.

“We note there are quite a number of arrears and interest, which is being charged on those arrears that we will also articulate, maybe for them to be scrapped.

“Of concern is the water cuts. Most of our companies do not have boreholes and when there are water cuts it means we have to stop production. Looking at the long term, there are no stands for industrial development.

“We have more players coming in who would want land. Some of the land has been turned into residential areas such as Aspindale Park.”

Dr Dadirai said the city had to address traffic congestion and vendors operating in front of companies selling the same products.

Zimbabwe National Chamber of Commerce Mashonaland region chairperson, Mr Archford Dongo said ratepayers had lost confidence in council.

“Where rates are being paid and no service is being rendered, ratepayers lose confidence, so as a city you must address that,” he said. “Road maintenance is also of major concern for business. We are taking too much time on the roads, instead of business.”

Mr Dongo urged the city to address its outlook, which he said had an effect on attracting investors.