Cape Town trims perks in ‘austerity drive’

CAPE TOWN — The Cape Chamber of Commerce and Industry yesterday welcomed the city’s introduction of “austerity measures” and its plan to reduce spending on travel, office furnishings and “excessive catering”.

The chamber said it hoped other cities would follow suit.

Cape Town city authorities said yesterday they would introduce austerity measures in the 2013-14 draft budget, including forgoing an official residence complete with furnishings for mayor Patri- cia de Lille, and a council vehicle for the sole use of the deputy mayor and the speaker.

Extravagant spending by local municipalities around the country has made headlines in recent years. Last month reports emerged that the Treasury had ordered local councils to control unnecessary spending on “nonessential activities” such as “luxurious” office accommodation and furnishings.

However, Cape Town seems to have gone the extra mile by forgoing an official residence for the mayor, even though the Department of Co-operative Governance and Traditional Affairs’ government notice of December 2012 affords benefits to councillors, including an official residence for the mayor and a council vehicle for the deputy and speaker.

“These are all (austerity) measures which the private sector was forced to take five years ago at the start of the world’s financial troubles and it is about time that the public sector did some serious cost-cutting,” said chamber president Fred Jacobs. “We thank the City of Cape Town for setting an example and we hope that all other municipalities will follow suit.”

Deputy mayor and mayoral committee member for finance Ian Neilson said the cost-cutting initiatives included a reduction of R103m in the general expenses category. This includes reduced spending on travel, office furnishings, excessive catering and public relations projects. The use of consultants has also been curtailed. Mr Neilson said the city had found further savings by reducing the number of vacancies by R46m on its staff budget.

The speaker and deputy mayor will use their own cars between office and home, and a pool car when attending functions.