Drought threatens survival of businesses in the Cape

“It is clear that we have a major crisis on our hands and it is time to slash the red tape and take emergency measures‚” said Cape Chamber of Commerce and Industry President Janine Myburgh on Thursday.

“Unless we do so without delay we will suffer long-term damage to the economy and the reputation of the City.”

Myburgh said that the country’s AIDS crisis was regarded as an emergency‚ allowing rules to be changed so that authorities could tackle the epidemic. “We have to use the same approach now. Normal bureaucratic procedures were not designed to deal with emergencies.”

Water and Sanitation Minister Nomvula Mokonyane gave an assurance in parliament on Wednesday that government would not allow the province to run out of water. Government has not‚ however‚ declared the drought a national disaster. Such a declaration would effectively reduce red tape and release funds quickly to‚ for example‚ augment the city’s dwindling water supply.

The chamber warned that nearly 49% of businesses – members that it had surveyed - said the drought and water crisis were now a threat to their survival. Some firms had postponed or halted new investments.

In response to the question “Do you think the City Council has done enough to prepare for the water shortage?” 92.8% of members who were polled said no.

Myburgh‚ however‚ said the problem was bigger than a city council issue and it was necessary to acknowledge that local authorities had not been given the necessary help by the National Department of Water and Sanitation.

Businesses hit particularly hard by the water crisis were hotels‚ guest houses‚ catering firms‚ restaurants and others who provided services for the tourist industry‚ said the chamber.

Landscaping and gardening services were shedding jobs.