Latest news with #Middelberg
Scoop
05-05-2025
- Business
- Scoop
Centralines Trustee Resigns Over $100k Dam Decision
Article – Linda Hall – Local Democracy Reporter I dont think the decision is in the best interests of consumers and beneficiaries of Centralines, resigning trustee Tony Murphy told Local Democracy Reporting. One of the members of the Central Hawke's Bay power consumers' trust has resigned in protest over lines company Centralines' board's plan to give $100,000 of its funding to help rescope a large-scale dam in the district. Centralines has a board, which makes operational decisions, and a power consumers' trust that represents the public stakeholders. It is owned by Central Hawke's Bay power consumers. 'I don't think the decision is in the best interests of consumers and beneficiaries of Centralines,' resigning trustee Tony Murphy told Local Democracy Reporting. 'I can't in good conscience remain a part of a trust which has chosen to support the board in its decision.' Murphy was one of seven trustees. Centralines in 2022 came under fire for putting $200,000 of its funding towards re-scoping the Tukituki Water Security Project and has recently decided to put another $100,000 towards it. Various attempts to get a dam in CHB off the ground have been mired in controversy since it was first supported by Hawke's Bay Regional Council (HBRC) almost a decade ago. The Ruataniwha Dam was abandoned by HBRC in 2018 after a Supreme Court finding against it, and the $20m it had spent on development went down the drain. Consents were sold to Water Holdings Hawke's Bay Ltd, a group of local farmers and rebranded as the Tukituki Water Security Project. In December 2024, Development Minister Shane Jones committed $3m to the project through Regional Infrastructure Fund for the pre-construction development of the Project. A flyer distributed at a meeting by local pressure group Water Wise Use HB called for supporters to contact Central Hawke's Bay Power Consumers' Trust chair, Karen Middelberg, to request she move a motion at the next trustee meeting, in late May, directing the Board to rescind its decision. 'If Middelberg is not prepared to act on the concerns of trust beneficiaries, then she should resign,' it said. Water Wise Use spokesperson Trevor Le Lievre said ratepayers and taxpayers should prepare themselves for an assault on their wallets, 'as this zombie project has an insatiable appetite for public money'. However, Central Hawke's Bay mayor Alex Walker said they were the sort of comments designed to 'fearmonger among our community and ratepayers, with no basis of fact to them'. 'The consents for the Tukituki Water Security Project are in private hands, the group is working on the next stages of a business case. 'If there is any requirement for public funding, there would be intense public discussions about this, and what is right for Central Hawke's Bay. 'That time is not now. There is nothing to debate.' In response to the call for her resignation, Middelberg said the trust deed made it clear 'the trust is not to involve itself in the management or operation of the company'. 'This proposal to contribute $100,000 to the water project is a board decision, and it was shared with the trust by the company as a courtesy. 'This decision is well within the Board's delegated responsibility and the decision does not meet the threshold that requires approval from the Trust. 'The Trust informed the Board of the opinions from some of the community and expects these were considered in making its decision. We discussed it and although not all members agree, decided not to intervene. 'The trust's duties are to appoint directors to a company with $74 million of assets in our community.' Tukituki Water Security Project spokesman Mike Petersen said he welcomed discussions about water security. 'The Tukituki Water Security Project was formed to address the consequences of climate change and increased demand from population growth, and to better understand the impacts these will have in a drying region,' he said. 'Our view has been consistent about water storage being one part of the solution to ensure water security, alongside other measures such as wise water use, greater water efficiencies and recycling. In this respect, we share the same objectives as the Wise Water team. 'These are different projects, using the same Makaroro site for water storage, but with a completely different hierarchy of downstream water use. 'Centralines is a commercial company and has its own strategic and commercial imperatives for investing in projects like the TWSP. 'I cannot speak for Centralines, but they are among several businesses that have committed funding because they see water storage as a key regional priority for Hawke's Bay to help the region thrive and grow.' LDR is local body journalism co-funded by RNZ and NZ On Air.
The Citizen
05-05-2025
- Business
- The Citizen
Have municipalities crossed the peak of the Laffer curve?
Higher tariffs, lower income, poor service delivery … Citizens are heavily burdened by tariffs and other costs imposed on them, even as service delivery continues to deteriorate. Picture: Phill Magakoe/AFP via Getty Images Despite implementing annual tariff increases – often surpassing the prevailing inflation rate – the City of Tshwane's revenue from consumer services has remained largely stagnant. This trend suggests that residents may have reached their financial limits, rendering further increases ineffective. Lex Middelberg, a councillor from the Republican Congress of Tshwane, has analysed the city's financial statements over recent years and concludes that the council's income from trading services has declined over the last few years in real terms. In the last financial year, revenue from consumer payments was lower than in 2020/21, even in nominal terms, he shows. Middelberg believes the municipality has surpassed the peak of the Laffer curve – a concept in economics that illustrates how excessive taxation can lead to a decrease in total revenue. This occurs because high taxes may discourage economic activity or prompt taxpayers to seek ways to avoid taxes. Dawie Roodt, chief economist at the Efficient Group, agrees with Middelberg's assessment. He says the same applies to almost all government institutions in South Africa. Citizens are heavily burdened by the costs imposed by the government, even as service delivery continues to deteriorate. Service delivery issues are evident in various parts of Tshwane. On 30 April, Alderman Dana Wannenburg reported that residents in Wards 4 and 98 had been without water for eight days, and some areas were without electricity for three days. Such prolonged disruptions are becoming increasingly common in the city. ALSO READ: R100 billion debt: only 10 municipalities honouring their accounts Correlation between tariffs and the use of services Morné Mostert, head of local government affairs at AfriForum, has expressed concern over municipalities' approaches to revenue generation. He emphasises that, according to the Constitution and the Municipal Systems Act, there must be a clear correlation between the tariffs charged for municipal services and the extent to which the consumer uses those services. This principle has been upheld in legal precedents. AfriForum has criticised a new cleaning levy of R194 per month that Tshwane plans to impose from 1 July. This levy targets vacant plots larger than 150 000m², and business and residential properties valued over R250 000 that do not use the city's waste removal services. AfriForum argues that this constitutes double taxation and unfairly burdens already overtaxed residents. Johan Hopley from Impact Metering highlights the city's fixed monthly charge for the first nine kilolitres of water. Regardless of whether a household uses two or three kilolitres, it is billed for nine. ALSO READ: Distressed municipalities spent less than 4% of budget on maintenance — Cogta Basing tariffs on property values The City of Cape Town's proposed tariff increases – and its plans to link fixed monthly charges for water and sanitation, as well as a new cleaning levy, to property values – have also sparked public outcry. The Collective Ratepayers' Association (CRA) has launched a petition against the draft budget, stating that while it understands the need to invest in infrastructure – especially in under-resourced areas – the proposed 11.4% budget increase is too high. 'It's more than three times the inflation rate and follows previous increases of 11.9% (2024) and 11.2% (2023),' it says. The CRA warns that such increases could lead to financial strain for single-income households and retirees, potentially resulting in the loss of their homes. It argues that tying fixed tariffs to property values does not comply with legal requirements, as it does not reflect actual usage. AfriForum shares this view. ALSO READ: Eskom owed R81.6 billion by municipalities: Who owes the most? Increases above projected inflation must be justified In December, National Treasury issued a circular advising municipalities to ensure that their tariffs remain affordable. Municipalities are encouraged to assess the costs of delivering specific services efficiently annually and to base their tariffs accordingly. 'The Consumer Price Index (CPI) inflation is forecasted to be 4.4 per cent; therefore, municipalities are required to justify all increases more than the projected inflation target for 2025/26 in their budget narratives and pay careful attention to the differential incidence of tariff increases across all consumer groups,' according to National Treasury. Mostert says if a municipality provides a well-substantiated document demonstrating the necessity of a particular tariff to deliver a specific service efficiently – and uses the funds exclusively for that service – there would be little grounds for objection. However, he notes that figures are often arbitrarily determined, or municipalities simply apply a percentage increase to existing tariffs without thoroughly evaluating cost-efficiency. This article was republished from Moneyweb. Read the original here.
Scoop
05-05-2025
- Politics
- Scoop
Centralines Trustee Resigns Over $100k Dam Decision
One of the members of the Central Hawke's Bay power consumers' trust has resigned in protest over lines company Centralines' board's plan to give $100,000 of its funding to help rescope a large-scale dam in the district. Centralines has a board, which makes operational decisions, and a power consumers' trust that represents the public stakeholders. It is owned by Central Hawke's Bay power consumers. 'I don't think the decision is in the best interests of consumers and beneficiaries of Centralines,' resigning trustee Tony Murphy told Local Democracy Reporting. 'I can't in good conscience remain a part of a trust which has chosen to support the board in its decision.' Murphy was one of seven trustees. Centralines in 2022 came under fire for putting $200,000 of its funding towards re-scoping the Tukituki Water Security Project and has recently decided to put another $100,000 towards it. Various attempts to get a dam in CHB off the ground have been mired in controversy since it was first supported by Hawke's Bay Regional Council (HBRC) almost a decade ago. The Ruataniwha Dam was abandoned by HBRC in 2018 after a Supreme Court finding against it, and the $20m it had spent on development went down the drain. Consents were sold to Water Holdings Hawke's Bay Ltd, a group of local farmers and rebranded as the Tukituki Water Security Project. In December 2024, Development Minister Shane Jones committed $3m to the project through Regional Infrastructure Fund for the pre-construction development of the Project. A flyer distributed at a meeting by local pressure group Water Wise Use HB called for supporters to contact Central Hawke's Bay Power Consumers' Trust chair, Karen Middelberg, to request she move a motion at the next trustee meeting, in late May, directing the Board to rescind its decision. 'If Middelberg is not prepared to act on the concerns of trust beneficiaries, then she should resign,' it said. Water Wise Use spokesperson Trevor Le Lievre said ratepayers and taxpayers should prepare themselves for an assault on their wallets, 'as this zombie project has an insatiable appetite for public money'. However, Central Hawke's Bay mayor Alex Walker said they were the sort of comments designed to 'fearmonger among our community and ratepayers, with no basis of fact to them'. 'The consents for the Tukituki Water Security Project are in private hands, the group is working on the next stages of a business case. 'If there is any requirement for public funding, there would be intense public discussions about this, and what is right for Central Hawke's Bay. 'That time is not now. There is nothing to debate.' In response to the call for her resignation, Middelberg said the trust deed made it clear 'the trust is not to involve itself in the management or operation of the company'. 'This proposal to contribute $100,000 to the water project is a board decision, and it was shared with the trust by the company as a courtesy. 'This decision is well within the Board's delegated responsibility and the decision does not meet the threshold that requires approval from the Trust. 'The Trust informed the Board of the opinions from some of the community and expects these were considered in making its decision. We discussed it and although not all members agree, decided not to intervene. 'The trust's duties are to appoint directors to a company with $74 million of assets in our community.' Tukituki Water Security Project spokesman Mike Petersen said he welcomed discussions about water security. 'The Tukituki Water Security Project was formed to address the consequences of climate change and increased demand from population growth, and to better understand the impacts these will have in a drying region,' he said. 'Our view has been consistent about water storage being one part of the solution to ensure water security, alongside other measures such as wise water use, greater water efficiencies and recycling. In this respect, we share the same objectives as the Wise Water team. 'These are different projects, using the same Makaroro site for water storage, but with a completely different hierarchy of downstream water use. 'Centralines is a commercial company and has its own strategic and commercial imperatives for investing in projects like the TWSP. 'I cannot speak for Centralines, but they are among several businesses that have committed funding because they see water storage as a key regional priority for Hawke's Bay to help the region thrive and grow.' LDR is local body journalism co-funded by RNZ and NZ On Air.
NZ Herald
05-05-2025
- Politics
- NZ Herald
Centralines trustee resigns over $100k funding to rescope Central Hawke's Bay dam
Murphy was one of seven trustees. In 2022 Centralines came under fire for putting $200,000 of its funding towards rescoping the Tukituki Water Security Project and has recently decided to put another $100,000 towards it. Various attempts to get a dam in CHB off the ground have been mired in controversy since it was first supported by Hawke's Bay Regional Council (HBRC) almost a decade ago. The Ruataniwha Dam was abandoned by HBRC in 2018 after a Supreme Court finding against it, and the $20 million it had spent on development went down the drain. Consents were sold to Water Holdings Hawke's Bay Ltd, a group of local farmers and rebranded as the Tukituki Water Security Project. In December 2024, Development Minister Shane Jones committed $3m to the project through Regional Infrastructure Fund for the pre-construction development of the project. A flyer distributed at a meeting by local pressure group Water Wise Use HB called for supporters to contact Central Hawke's Bay Consumers Power Trust chairwoman, Karen Middelberg, to request she move a motion at the next trustee meeting, in late May, directing the board to rescind its decision. 'If Middelberg is not prepared to act on the concerns of trust beneficiaries, then she should resign,' it said. WWU spokesman Trevor Le Lievre said ratepayers and taxpayers should prepare themselves for an assault on their wallets, 'as this zombie project has an insatiable appetite for public money'. However, Central Hawke's Bay Mayor Alex Walker said these sorts of comments were designed to 'fearmonger among our community and ratepayers, with no basis of fact to them'. 'The consents for the Tukituki Water Security Project are in private hands, the group is working on the next stages of a business case. 'If there is any requirement for public funding, there would be intense public discussions about this, and what is right for Central Hawke's Bay. 'That time is not now. There is nothing to debate.' In response to the call for her resignation, Middelberg said the trust deed made it clear 'the trust is not to involve itself in the management or operation of the company'. 'This proposal to contribute $100,000 to the water project is a board decision, and it was shared with the trust by the company as a courtesy. 'This decision is well within the board's delegated responsibility and the decision does not meet the threshold that requires approval from the trust. 'The trust informed the board of the opinions from some of the community and expects these were considered in making its decision. We discussed it and although not all members agree, decided not to intervene. 'The trust's duties are to appoint directors to a company with $74m of assets in our community.' Tukituki Water Security Project spokesman Mike Petersen said he welcomed discussions about water security. 'The Tukituki Water Security Project was formed to address the consequences of climate change and increased demand from population growth, and to better understand the impacts these will have in a drying region,' he said. 'Our view has been consistent about water storage being one part of the solution to ensure water security, alongside other measures such as wise water use, greater water efficiencies and recycling. In this respect, we share the same objectives as the Wise Water team. 'These are different projects, using the same Makaroro site for water storage, but with a completely different hierarchy of downstream water use. 'Centralines is a commercial company and has its own strategic and commercial imperatives for investing in projects like the TWSP. 'I cannot speak for Centralines, but they are among several businesses that have committed funding because they see water storage as a key regional priority for Hawke's Bay to help the region thrive and grow.'
