Municipal Fiscal Powers and Functions A/B: finalisation

NCOP Finance

27 September 2023
Chairperson: Mr Y Carrim (ANC)
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Meeting Summary

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The Select Committee on Finance adopted the Municipal Fiscal Powers and Functions Amendment Bill.

The primary purpose of the Bill is to amend the Municipal Fiscal Powers and Functions Act, so as to establish an unambiguous, fair, and consistent basis for municipalities to recover development charges for all new land development projects that require statutory approvals through the municipal land use planning system; bring about a more standardised, equitable and sustainable framework for financing municipal infrastructure, based on the benefit principle; and enable applicants to accurately estimate their development charges liabilities and ensure that municipalities are able to provide the required infrastructure timeously.

Due to time limitations, the Committee was unable to adopt its draft on the Bill, and it was agreed that it would try to do so later at 17:00 in the afternoon.

Meeting report

The Chairperson indicated that the Committee would vote on the Municipal Fiscal Powers and Functions Amendment Bill (MFPFAB). All Members had received the report the previous night, he pointed.

Consideration and adoption of the (MFPFAB)

The Chairperson took the Committee through the MFPFAB.

Mr D Ryder (Gauteng, DA) mentioned that it had submitted additional comments on the Bill, some of which he read out.

The DA, he said, raised concerns related to the rigidity of the Bill and its imposition on municipalities on a one-size-fits-all-all basis.

The comment from the National Treasury that the workshopping of the Bill with certain municipalities resulted in conflicting and contradictory recommendations, bares out the fact that a more flexible approach is needed and a deeper level of consultation is required.

The Chairperson pointed out that much of the DA’s submission had been covered in the draft report on the Bill.

Thereafter, he requested a mover for the adoption of the Bill.

Ms L Mamaregane (ANC, Limpopo) moved for the adoption of the Bill.

Ms D Mahlangu (ANC, Mpumalanga) seconded the mover for the adoption of the Bill.

Mr Ryder expressed the DA’s opposition to the adoption of the Bill.

The Bill was duly adopted by the Committee, with opposition from the DA.

The Chairperson mentioned that the Committee would consider and adopt the MFAB Report during a meeting at 17:00 in the afternoon, however, if the meeting did not quorate, the Committee would have to do so after the constituency break.

The meeting was adjourned.

 

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