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Lloyd Gumbo Senior Reporter
The Ministry of Local Government, Public Works and National Housing has defended the increase of rates by Victoria Falls Municipality by 650 percent that resulted in some companies, especially tourism operators, expected to fork out at least $9 000 per month. The ministry approved the mega increase in February this year. However, tourism players argued that the increase had a negative impact on their operations.

The Ministry of Tourism and Hospitality Industries has also castigated the increase, with Minister Walter Mzembi describing it as sheer madness.

But appearing before the Parliamentary Portfolio Committee on Environment, Water, Tourism and Hospitality Industry yesterday, Local Government, Public Works and National Housing acting secretary, Retired Colonel Joseph Mhakayakora, said the majority of Victoria Falls residents did not object to the increase.

As a result, he said the budget was approved in line with the provisions of the Public Finance Management Act.

“Going by the submissions we received, there is ample evidence that the local authority made every effort to consult irrespective of some objections they got from some stakeholders,” said Rtd Col Mhakayakora.

“Guided by Section 219 of the Urban Councils Act, there was enough justification to have the budget approved by the ministry.

“The approval was granted after carrying out a meticulous analysis of the previous rates that were charged.”

Rtd Col Mhakayakora said by virtue of being a world tourist destination, Victoria had major cost drivers from transportation, supplier tariffs and taxation from other authorities.

He said to cushion the local authority, the increase in rates was necessary to ensure the town matched world standards.

“The hike enables council to break even in its service provision thrust. Before the hike, some services were being charged as low as a dollar, which was sub-economic and suicidal.

“With the new rates in place, sustainability is ensured. Generally, Victoria Falls is not a cheap place to do business,” said Rtd Col Mhakayakora. However, legislators raised concern that stakeholders in the resort town felt the hike made it difficult for them to operate. They said it was important to consider the economic environment where the majority of firms were struggling.

But Principal Director for Urban and local Authorities in the Ministry, Ms Erica Jones, said the Victoria Falls municipality did everything above board.