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Reduce the rates burden and get it done

Wellington Chamber of Commerce

Media Statement
Friday 26th August 2016
Reduce the rates burden, get the ingredients right, and get it done - Wellington Chamber Local Government Manifesto

The Wellington Chamber of Commerce has released its Local Government Manifesto for the region, ahead of the October council elections.

Chamber Chief Executive John Milford says the manifesto is about making sure council candidates are well briefed on the views from the Wellington business community.

“There is no question that the decisions local government make impact on businesses and their operating environment,” says John Milford.

“Wellington businesses contribute significantly to the city’s rate-take, paying 46 per cent of the total rates collected while making up only 21 per cent of the total rateable property. Regionally, businesses pay around one-third of the region’s rates.

“Wellington businesses pay the highest proportion of rates of any town, city, or region in New Zealand, nearly 50 per cent higher than Auckland and nearly 100 per cent more than in Hamilton.

“As the largest contributor to Wellington City’s rate-take, and paying the highest proportion in the country, businesses have a real stake in what happens with that money.”

The manifesto identifies four action areas, which the Chamber says are crucial to the growth of the region's economy. They are:

1. Council spending and fiscal responsibility

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Fiscal responsibility must be demonstrated through wiser spending, decreasing debt, and reducing the rating burden on business by phasing down the business differential to match general rates over 10 years, capping everyone’s rates to the Local Government Cost Index, and ensuring rates are fit-for-purpose. It is imperative that transparency around local government spending is improved.

2. Infrastructural development

The region requires some urgent infrastructural investment which requires local government’s focus, specifically on resolving transport issues. There’s a long list of major projects — Wellington needs to just do it. More work also needs to be done to improve the city’s resilience and its preparedness for any shocks and stresses that may arise in the future.

3. Economic development

Emphasis needs to be placed on economic development and growth, through the City Council, Regional Council and Wellington Regional Economic Development Agency. The way to do this is to get the ingredients right for business and investment. Wellington must be promoted as a place with opportunities for businesses and entrepreneurship, and a place for high-class education, employment, tourism and liveability.

4. Leadership – unified, regional, strategic direction

Leadership must develop a clear and coherent regional strategy, placing an emphasis on regional unity and building a closer relationship with central government. Our elected leaders need to get rid of the personality and patch-protection politics, locally and regionally.

“The responsibility to grow Wellington doesn’t rest with local government alone. It’s down to all sectors, groups, and communities to get involved to get this city and region moving forward.

“However, it’s about ensuring local government does the very best with what they do control - the city and region’s finances. Our city and regional councils need to ensure that the city has what it needs to generate business activity to make our city regionally, nationally and internationally attractive and vibrant.

“I look forward to responses from council candidates on how they will address the action areas we have outlined. We’ll certainly be holding mayoral candidates to account at our September Mayoral Debate with Deloitte.”

A full version of the manifesto is available here.


ends

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