31 January 2007

By Anish Abraham

The South African Cities Network is offering its members an opportunity to discuss the country's 2007 budget, bringing together municipal financial officers, representatives from National Treasury and other finance practitioners.

The dialogue, titled "2007 Budget: Fiscal Space for Municipal Action", will be held at the Development Bank of Southern Africa's auditorium in Midrand on Friday, 23 February, from 9am to 1pm.

Those present will be able to focus the country's budget, set to be released in parliament on 21 February, by Finance Minister Trevor Manuel. They will be especially keen on the parts relating to local government, with several major changes being made over the years.

In 2004, Manuel proclaimed several Urban Development Zones in city centres throughout South Africa, seen as a measure to combat urban blight and entice business back into central business districts. Investors who refurbish or construct new buildings within specially demarcated zones would then benefit from a tax incentive.

In 2006 he announced that Regional Services Council levies were ineffective and were to be scrapped, with the National Treasury providing municipalities with compensation over the coming years.

Manuel allocated R24-billion in compensation to municipalities. Of that, R7-billion will be distributed in the 2006-07 financial year, R8-billion in 2007-08 and finally R9-billion in 2008-09.

There is a limited number of seats available for the dialogue; interested parties are asked to contact Sadhna Bahna on 011 407 6471 or at sadhna@sacities.net by Monday, 12 February.