PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT PUBLIC HEARINGS COMMENTS ON THE CROSS BOUNDARY MUNICIPALITIES LAWS REPEAL AND RELATED MATTERS AMENDMENT AND CONSTITUTIONAL 16TH AMENDMENT BILLS, 2009 9 FEBRUARY 2009
Presentation Outline • Background • Boundary Re-determination • Analysis of Bills • SALGA Consultation Outcomes • Other areas of Concern • Concluding Remarks
Background • During 2002, PCC resolved that no municipality should straddle provincial boundaries. • Result - boundaries of all cross boundary municipalities had to be reviewed to fall within one or the other province. • Implementation - Minister for Prov & Local Gov. introduced legislation to re-determine the boundaries of certain municipalities & Minister for Justice and Constitutional Development introduced legislation to re-determine provincial boundaries.
Background Municipalities and provinces affected:- Local Municipalities (7): • Umzimkulu; Umzimvubu; Matatiele; Bushbuckridge; Maruleng; Merafong City and Kungwini. District Municipalities (7): • Sisonke; Alfred Nzo; Ehlanzeni; Mopani; Southern (now Dr Kenneth Kaunda); West Rand & Metsweding. Provinces (6): • Kwazulu-Natal; Eastern Cape; Mpumalanga; Limpopo; North West; and Gauteng.
Boundary Re-determination Municipal and provincial boundary implications:- • boundary of Dr Kenneth Kaunda DM will be reduced; • boundary of West Rand DM will expand; • changes in the boundaries of North West Province and Gauteng Province. • Minister of Prov & Loc Gov introduced the Cross Boundary Municipal Laws Repeal and Related Matters Amendment Bill;(municipal boundaries); • Minister of Justice and Const Dev introduced the Constitutional Sixteenth Amendment Bill(provincial boundaries).
Analysis of Bills Objects:- • Cross Boundary Municipal Laws Repeal and Related Matters Amendment Bill, seeks to amend the Cross Boundary Municipalities Laws Repeal Act 2005 by re-determining the municipal boundaries of both Dr Kenneth Kaunda and West Rand DMs. • Constitutional Sixteenth Amendment Bill seeks to re-determine the boundaries of Gauteng and North West province as a result of the re-incorporation.
Analysis of Bills (cont…) Proposed amendments to legislation Cross Boundary Municipalities Laws Act (2005) • Insertion of a new definition for “section 17 notice”; • Adding an additional Section 2 (4)(e) and (f), which:- • - authorise MEC for LG to reduce or increase the number of councillors; • - authorise the issuance of Section 17 notice by the MEC for LG. • Adding to Section 4 (2) by making provision for the MEC for LG to regulate consequences in instances where not only an area has been added to a particular municipality, but also an area that has been removed from a municipality. • Amending the Schedules to make provision for the incorporation of Merafong City LM into West Rand DM from Dr Kenneth Kaunda DM. Constitution of the Republic, 1996 • re-determine the boundaries of Gauteng and North West provinces.
Analysis of Bills (cont…) SUMMARY OF IMPLICATIONS OF BILLS • Changes in municipal boundaries of Dr Kenneth Kaunda DM (decreasing) and West Rand DM (increasing); • Re-determination of Merafong City LM to not only be incorporated from Dr Kenneth Kaunda DM to West Rand DM but also from NW to GP; • Consequent changes: • Merafong City LM representation in Dr Kenneth Kaunda DM will become null and void and new representation to West Rand DM to be appointed; • Number of Councillors in Dr Kenneth Kaunda will decrease whilst the number of Councillors in West Rand DM will increase; • Impact on equitable share allocations (I-grant component), budgets and grading (councillor remuneration) of both DMs and both provinces; • Withdrawal of Merafong City LM participation in IGR Structures in NW; to establish participation within GP IGR structures; • Servicing of communities within Merafong City LM, in respect of powers and functions of provincial government, will fall within GP; • Participation in national, provincial government and local government elections.
SALGA Consultation Outcomes Implementation date and Transitional Arrangements Elections • an expectation has been created that communities would be eligible to vote in the 2009 National and Provincial Elections. • Whilst this possibility is well supported, concerns have been raised with municipal readiness given short timeframes. Powers and functions • number of functions are currently provided by Merafong City on agency basis for NW provincial government; • provision of Health Services has been driven at a local level; whilst this arrangement is substantially different in GP; • Recommendation: implementation date should allow sufficient time to put the appropriate structures and systems in place.
SALGA Consultation Outcomes Implementation date and Transitional Arrangements (cont) Implementation protocol • number of lessons learnt in the 2005/06 re-demarcation process and central is agreement on the implementation protocol to be entered into between the receiving and releasing province. • Recommendation: • it is proposed that structures at both technical and political level be established to further facilitate this transition, with parliament playing the general oversight role. • LG must be directly represented as a number of functions that are subject to the transfer are performed at local level. • central and overriding purpose would be to ensure a seamless transition and uninterrupted service delivery in respect of those functions and services.
SALGA Consultation Outcomes Financial Implications • process of re-incorporation will have serious planning and consequent financial implications for all 3 municipalities as well as two affected provinces. • From a planning point of view the following high level considerations are evident:- • West Rand DM would have to amend its IDP to incorporate planning for the Merafong City LM; • Similarly GP would have to amend its provincial plan to incorporate development for the Merafong City LM; • Provision of services by Merafong City LM on an agency basis on behalf of GP, certain planning would also be required (review of municipal IDP).
SALGA Consultation Outcomes Financial Implications (cont) • All planning initiatives give rise to financial implications. • For instance, mere increase in the number of councillors of West Rand DM would place obligation to budget for all expenses (benefits and otherwise) relating to those councillors. • Furthermore, development planned for entire district, which would now also include Merafong City LM would require the necessary finances. • re-demarcation generally impacts on the equitable share allocations (I-grant component), budgets and grading (councillor remuneration) of all 3 municipalities and 2 affected provinces alike.
SALGA Consultation Outcomes Financial Implications (cont) Recommendations: • To ensure that service delivery remains sustainable and uninterrupted it is proposed that the necessary financial assistance in the form of a transitional grant should be provided by National Treasury. • The challenge….Budget Cycle for the 2009/10 financial year at very advanced stage and practically impossible to make the necessary allocations in the 2009/2010 Budget. • It will be prudent to allow implementation date to follow the normal planning and budget cycles of the provincial and local governments concerned. It may be necessary to allow that the status quo continues until the start of the 2010/11 financial year.
Other Areas of Concern • Cabinet decision of 2002 gave rise to 14 municipalities and 6 provinces respectively being impacted upon…consequences: • number of community protests directed at municipalities. • litigation from affected areas. • Whilst these protests continue Bills and the Constitutional Sixteenth Amendment Bill seeks to only address 3 municipalities and 2 provinces respectively. • SALGA of view that each matter must be addressed on its own merits. • BUT…the successful promulgation of the proposed bills might give rise to similar requests from other affected areas. • The risk…highly likely to give rise to violent community protests, which again would largely be directed at municipal property and councillors alike.
Conclusion SALGA is fully supportive of the proposed bills…. But draws attention to some process issues likely to present challenges at a municipal level.