Water tariff hike proposed to insource ‘foot plumbers’

Municipal infrastructure and engineering bosses want to increase the water tariff in Nelson Mandela Bay by an additional 3.35% to cover the costs of insourcing about 100 learner plumbers.

The unqualified or semiskilled “foot plumbers” are at present paid through an equitable share allocation from the National Treasury via the Assistance to the Poor (ATTP) scheme.

Details of the proposed hike are contained in a report that was not part of the agenda which was circulated by infrastructure and engineering political head Andile Lungisa at a mayoral committee meeting last week.

The 3.35% increase — which is the recommended option among four others listed in the report — would bring in an extra R30m that would allow the municipality to employ the learner plumbers as ATTP handymen.

This would be over and above the ordinary rates, water and service charges increases that will kick in on July 1 after the city undergoes its budgeting process.

And it is not a one-off increase.

This 3.35% would continue to be added each year to the agreed-upon water tariff increases.

Infrastructure and engineering executive director Dr Walter Shaidi recommended this option, according to the report.

However, economic development, tourism and agriculture political head Marlon Daniels — who chaired the meeting because he was acting mayor at the time — refused to table the report for debate.

“This has budget [implications] and the matter should not be rushed.

“We will engage robustly before tabling the report at the next meeting,” Daniels said.

However, Lungisa pushed for the item to be tabled.

“We are here. Let us table this report.”

Lungisa was supported by roads and transport political head Rosie Daaminds, who said: “We have a challenge on water leaks. Let [Lungisa] speak.”

But Daniels stood firm, refusing to table the report.

“This is exactly what the National Treasury warned us about,” he said.

“We can’t as councillors make decisions that are outside our mandate.

“Those that do make such decisions will have to bear the brunt of this cost.”

Lungisa said when contacted later that if the hike was approved by the council it would only form part of the 2020/2021 budget.

“We are just doing things early now.

“We are forward-thinking people, unlike those who had small minds in the past,” he said.

Shaidi said the proposed hike was merely an option to be discussed by the council.

“There has been no recommendation and we are undecided if they would focus on ATTP housing or other leaks across the city,” he

said. However, Shaidi said he fully supported the plan to insource the learner plumbers.

“We need to tackle the water leaks and this is a possibility to [do] just that,” he said.

The other four options, contained in the report, include:

Insourcing the plumbers as qualified plumbers and setting up additional teams at a cost of R166m. This would result in an 18.6% water tariff increase;

Appointing them on a fiveyear fixed-term contract at a cost of R60m, which would require a 6.83% water hike;

Employ installation inspectors to assist with meter installations and leak repairs at a cost of R28.9m. This would result in a 3.24% water hike; and

Absorbing the plumbers in vacancies that already exist in the department at a cost of

R17.6m, which would result in a 1.97% water hike.

The report warns that the move could cost ratepayers more every year with a significant effect on future tariffs.

“It must be noted that the expenditure incurred would be permanent, the funding source thereto must also be permanent, simply meaning that these increases will affect other financial years, and not only 2020/2021,” it says. “The council must also bear in mind that recommending increases for tariffs during the current economic climate is not something that will be easily accepted by our communities.

“It is also important to note that 2021 will be the year of the local government elections.

“After recent discussions with the corporate services directorate, it was agreed the way forward was the [3.35% increase] as it is the most viable option,” the report says, adding that it would be the most seamless option.

The report says the plumbers would have to be vetted to see whether any of them had done their trade tests and had a professional driver’s licence.

The unqualified plumbers fall under the ATTP scheme, managed by the city’s water and sanitation department, and has been running for about 10 years.

The scheme employs about 100 unqualified or semi-skilled plumbers who only fix internal water leaks in poor households through the scheme.

Meanwhile, the city’s dam levels continue to plummet, and were sitting at a combined capacity of 25.83% yesterday.