– Municipal Tariffs Increase Will Engender Tough Times By Emma Kakololo WINDHOEK Financial hardships leading to loss of homes through repossession, legal challenges and divorces constitute what renowned economist, Martin Mwinga, envisages for house owners following the recent increase in municipal tariffs. “These are tough times for consumers, who will have to dig deeper into their pockets to make ends meet,” was the view of Mwinga when contacted for comment regarding the increases. From August 1, water consumption charges will go up by 9 percent, refuse removal by 3.5%, sewerage 12%, assessment rates by 8% and electricity by an effective 15,8%. Low-income households would be the most affected. According to Mwinga, the increase came at an unfortunate time when all prices are rising, such as interest rates, petrol, food, property. The saddening aspect, he remarked, is the fact that such increase is not accompanied by salary and wage increases. “For example, government employees have not received a salary adjustment for some time now.” Justifying the Windhoek City Council’s decision made on June 20, Chairperson of the Management Committee Bjorn von Finckenstein said the City was left with no option but to increase its tariffs for it to be able to render services and to produce a balanced budget. The factors prompting the increase, he pointed out, were the effects of rising interest rates on finance charges, the impact of rising fuel prices, indications from bulk suppliers NamWater and NamPower to increase the bulk prices of water and electricity respectively, and rises in the inflation rate leading to an increase in the costs of services. With regard to these factors, Mwinga however concurred with the council’s decision stating that from “a business point of view and seeing that the City of Windhoek is the best government institution that provides the best and quality service, the tariff increases were necessary for the City to reduce its debt and to continue to render quality service”. Conversely, not all of the house-owners interviewed by New Era felt they receive quality service from the municipality. “Some of us in Katutura live in dusty streets with no streetlights. Since 1992, I have been living in this dark and dust, yet I must pay for the lights. “Is it now with the rise that they want to assure me quality service? No, I don’t believe so since I have not received quality service from them. “They must differentiate between me who has been living in the dust (gravel road) and those in the dust-free areas (with paved roads),” said Martha Petrus. “There are so many lights that are not working in Katutura. If they can replace a simple thing such as a bulb, that’s what I call basic service. They should start with those basic services. With this issue of violence against women and children, lights are very important. “When you hear someone screaming in the night at least you can see who the culprit is. “Otherwise, they (municipality) must come and remove all the (light) poles and then we know we don’t have street lights instead of poles standing there for no use,” said another irate citizen Frans Goagoseb. According to Sandra van der Merwe, the only quality service she receives from the municipality is the removal of refuse. “That is the only service I am happy with, because my bin is emptied every week.” “I don’t know where I will get the money from to pay the municipality. I am already struggling with the little pension I get from the State and for the past three years I don’t have water and must ask my neighbours for water,” replied Arnold Kahivire, a pensioner. Meanwhile, the Congress of Democrats (CoD) on Tuesday issued a strongly worded statement condemning the recent increase by the municipality, calling it “callous and uncaring”. The increase, according to the CoD, was done at the expense of the poor, while municipality officials, parliamentarians and other government “fat cats” were paying themselves high salaries and living in luxury. “These people care for themselves only and for no-one else. “The municipality’s price policy is simply impoverishing thousands of people, and keeping them in perpetual poverty. Already many in Windhoek’s squatter settlements such as Okahandja Park, Babylon and Ombili have no water or electricity services. “Many pensioners in Katutura, Khomasdal, Windhoek West, Windhoek North and other parts of the City already have their electricity and water cut off for non-payment.” The party called on government to stop moves that contribute to impoverishment and to control the operations of major service providers such as NamWater and NamPower, in order to ensure that their price hikes were not counter-productive. – A low-income household with a 15-ampere circuit breaker, for example, would now fork out N$172,80 for electricity consumption of 400kWh on average compared to N$142,37 currently being paid, whereas a middle-income household with a 40-ampere circuit breaker would pay on average N$345,60 for 800kWh electricity consumption in contrast with the present N$284,74; and a high-income household with a 40-ampere circuit breaker would pay for consumption of 2219kWh of electricity an estimated N$958,61 compared to the current monthly amount of N$789.80. Furthermore, a low-income household whose site value is N$14 500, would be charged a monthly N$35,56 compared to N$31,59 currently as an assessment rate, while a middle-income household with a site value of N$42 800 pays N$104,99 compared to N$93,26, and a high-income household with a site value of N$141 900, a monthly N$348,08 compared to N$309,20 at the moment. The situation could have been even much worse for home owners if the municipality valued the houses (sites) at the same rate as financial institutions such as banks. At the moment, the sites are valued lower compared to financial institutions. With regard to sewage, a low-income residential household whose erf is 241m2 presently pays an estimated N$44,99 per month, a middle-income household with an erf of 450m2, N$53,99 and a high-income household whose erf is 1273m2, N$64,78 per month. With the increase, the three households would fork out N$50,39, N$60,47 and N$72,54 respectively. All three households would also pay N$50,95 for a 240l refuse bin compared to N$48,52 currently.