22 May 2015

Hamilton Long Term Plan must send the right signals for business and investment

Property Council Waikato believes Hamilton can attract more business and investment into the city by charging fair rates, abolishing business differentials and enabling the provision of affordable housing.

The Branch has submitted on Hamilton City Council’s 10-Year Plan (2015-2025) and urges the Council to direct its efforts and resources towards several key issues:

Robust infrastructure – ensuring it is functional and not “gold-plated”.

Targeted, sufficient project funding – to produce real impact by focusing on one part of the river (such as Ferrybank since it aligns with revitalising the CBD).

Affordable housing – enabling more mixed-use and medium-high density developments built to a high standard.

Obtaining further savings and efficiencies through collaboration and amalgamation.

Keeping the debt cap at $440 million; to avoid owing nearly half a billion dollars in 10 years.

The Branch believes Government and ratepayer funding cannot be the sole providers of project funding and that the Council needs to be creative and adaptive and consider using leasebacks and public private partnerships. There is increasing evidence of this being used overseas and there arevaluable lessons from breakthrough projects like the Transmission Gully in Wellington.

The Branch strongly opposes increasing rates more than the rate of inflation. Inflation has averaged around 2.7% since 2000, and 0.8% in the year to the December 2014 quarter. It is expected to remain under 1% in 2020 and 2030 and it is Property Council’s view that rates must be proportionate to the benefits received by ratepayers.

Waikato Branch president Rob Dol says rates increases that are not linked to inflation would be detrimental for the city and its residents.

“The proposed rates rise of 3.8% doesn’t make sense but more worryingly, will have a negative cumulative effect. We know that commercial property owners won’t be able to recover costs by increasing rent by 3.8% on average each year. That’s not going to encourage investment and people to come to Hamilton.”

The Branch also strongly opposes business differentials as they are generally not linked to any specific cost incurred by business.

“Business differentials aren’t balanced nor evidence based, and are a short-sighted revenue raising mechanism which deter businesses. We would happily support targeted rates which would be linked to specific costs in a more transparent and efficient system.”

END.

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