What Can STLM Learn From Clover
Shock waves went through the various towns around the country when they heard that Clover would be closing its cheese factory in Lichtenburg.
STLM is currently reviewing property tax rates and has already implemented price increases for waste, sewerage and electricity which will come into effect on 1 July. MCCI urges municipal decision-makers to remember that we need to fill all the empty commercial spaces in the city and not make more businesses implement work-at-home decisions or closure of branch offices due to service costs.
In Middelburg, we are fortunate that our Steve Tshwete Municipality works well and our services are up to standard. Other towns have lost manufacturing plants, such as the Nestle factories in Bethal and Standerton or other manufacturing facilities. In our region, the most significant blow to our manufacturing sector was the closure of Highveld Steel. The hardship of the plant closures has left a scar on our economy.
Commercial service providers need to keep in mind that if your services are too expensive and become too costly to run a business, they have two choices, stop using the service or cut costs. The service provider’s bill will be scrutinized, and they will look at where costs can be cut, costs in other areas or jobs will be cut. Alternatively, the business is relocated, sometimes to another country, and then we lose the jobs and all the other revenues that a business creates in the economy.
If the business remains the target for higher property taxes, refuge, electricity and sewerage costs, then the most negligible added cost could break the camel’s back. We in the Middelburg region are at risk from Eskom’s decisions on Komati and Hendrina Power Stations and the negative impact of the lockdowns since 2020. We need to attract businesses and investment and make our municipal services cost attractive to corporates to invest in the area.