JANICE HEALING
27 February 2005
WHILE many people typically associate the city of Durban with tourism and leisure activities, it is the presence of large industrial and corporate groups that is driving much of the city’s growth. Because of this, big business has big expectations from the city management.
John Barton, the CEO of Mondi South Africa and co-chairman of the Durban Growth Coalition, says the city’s success rests on the activities of large businesses that are buying goods and services, generating funds and investing in the city.
"The importance of tourism is indeed massive, but it is big business which drives growth and investment and city management must ensure that our needs are met," says Barton.
Mondi Business Paper is one of the city’s largest corporate citizens. Its spend with the eThekwini municipality in 2004 was R224-million, while empowerment procurement at its Merebank mill over the last four years has topped R684-million.
Projects worth R2-billion are in progress at the mill to reduce sulphur emissions by 66% and increase paper capacity by 250000 tons, with most of the additional production destined for export through Durban’s port.
Some of the issues that big business would like to see prioritised by city management include inefficiencies at the port and the lengthy delays in planning permission, environmental impact assessments and the adjudication of tenders.
Gwala says a bone of contention is the use to which business rates and levies are put, and believes city management should allow for consultation with the business community in this regard.
"We would also like the existing tender system to be revisited. Tenders close within 10 days but take considerably longer to adjudicate, during which time prices used in the tender submission escalate and the business person is not able to achieve the projected returns," he says.
But both Gwala and Barton stress that the relationship between the two sides is a good one.
"The relationship between the city management and big business is cordial. There are a number of forums and partnerships where issues of interest can be tackled.
"What makes these successful is the truth and honesty with which issues are put on the table, deliberated on and resolved," says Gwala.
Publisher: Sunday Times
Source: Sunday Times