By Michael Hamlyn

The public works minister Thoko Didiza is being accused by Cape Town city of delaying a much-needed expansion of the city's convention centre, which will cost half a billion rand.

According to Simon Grindrod, the mayoral executive committee member for economic affairs and tourism, the minister is sitting on a decision to allow land adjacent to the convention centre on which the Customs House building – now unused – stands, to be leased or sold.

Grindrod said on Monday that it appeared on the face of it that Didiza was refusing to make a decision that would lead to thousands of jobs being created in the local economy.

"I want to get clarity around the delay and push for a decision so we can get on with this project, which would mean a massive injection into the economy and the creation of thousands of jobs for our people," Grindrod said.

In the 2006/07 financial year alone, the centre contributed in excess of R2.5 billion to the South African economy and was responsible for creating nearly 10,000 jobs. The cumulative contribution to gross domestic product since opening its doors for business was R6.8 billion, and this figure is set to double by 2012. In June 2008 the centre will celebrate its 5th birthday.

Grindrod said: "The numbers prove that we have to move very fast to expand the convention centre. If we don't, South Africa will lose out to its competitors in Melbourne and Dubai. Cape Town is a destination of choice and provides a significant magnet for visitors to come to South Africa. The convention centre currently has to turn away bookings because it is bursting
with capacity."

The city of Cape Town, as the majority shareholder, has already explored every available avenue to get public works to accelerate its decision. Both premier Ebrahim Rasool and President Thabo Mbeki have been asked to intervene.

Grindrod said: "I will be seeking an urgent meeting with minister Didiza to find a solution that is mutually beneficial for the City and the department of public works. The delayed expansion of the convention centre is an economic tragedy for Cape Town.

"We have already offered a significant opportunity to the department of public works to participate with the remaining two spheres of government (city and province) as a partner in the expansion."