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Councils Less Than Super For Kiwi Business

Councils Less Than Super For Kiwi Business


• 44% of Kiwi businesses dissatisfied with the support of local government • Only 8% of businesses satisfied with Auckland super city • Dissatisfaction with National Government growing – up to 38%

Almost half of the businesses in New Zealand are unhappy with the support of their local council, with small businesses and organisations in provincial areas leading the chorus of dissatisfaction, according to the latest MYOB Business Monitor.

In a survey of over 1000 businesses across the country, the MYOB Business Monitor found that 44% of businesses are dissatisfied or very dissatisfied with the support they receive from local government. Sole traders, who represent the majority of all business owners, are the most dissatisfied with their councils (46%) and the least satisfied (7%), while over half of all businesses in the manufacturing and wholesale sector (54%) are unhappy with the support they receive from local government.

MYOB General Manager Julian Smith says that after all the hype surrounding this year’s local body elections, and the hotly contested mayoral races in several centres, councils need to work harder to appeal to the business community.

“It’s clear businesses want their councils to be more focused not just on making our cities and towns great places to live but also great places to do business – with all the benefits of employment, investment and growth this will bring,” says Mr Smith.

“Based on the results of the latest MYOB Business Monitor, we can see that most of our provincial and metropolitan councils are failing to meet the demands of their local business community.”

“To create a nation of truly super cities and towns, we need jobs, investment and growth to support the lifestyle and services enjoyed by residents. Councils and the Government can’t lose sight of the fact that it is the business owners – small and large – working hard every day throughout the country that make our towns and citie better places to live.

According to the MYOB Business Monitor, businesses in provincial centres, such as Waikato, Otago and Southland, and Marlborough have the highest levels of dissatisfaction with local government.

The new Auckland super city sits about middle in terms of support for businesses, with still high levels of dissatisfaction, while the performance of the Christchurch City Council during the September earthquake – despite weeks of the CBD cordon and considerable ongoing disruption – has seen it rank highest in the country in terms of business satisfaction, with 16% of Christchurch businesses satisfied with their council™s support.

Of all the provinces surveyed, Taranaki had the lowest levels of business dissatisfaction, with only 17% of businesses dissatisfied with the support of the council, and 9% satisfied.

How they rank: Business satisfaction with local / regional council support

Region Satisfied Dissatisfied Waikato 2% 68% Otago & Southland 2% 51% Marlborough* 2% 49% Hawke’s Bay 9% 48% Bay of Plenty & Poverty Bay 6% 47% Manawatu- Wanganui 6% 43% Auckland 8% 42% Christchurch 16% 40% Northland* 0% 40% Wellington 9% 36% Taranaki* 9% 17%

(* Note: smaller sample size in these areas) MYOB Business Monitor LeagueTable | Business satisfaction with local council support

The National Government also came in for increased criticism in the latest MYOB Business Monitor, from businesses surveyed in the weeks following the introduction of GST and a raft of other tax changes – including a significant reduction in business tax.

According to the MYOB Business Monitor, satisfaction with the Government remains low, at just 15% – the same as the level reported in August. Dissatisfaction, however, has increased markedly, with 38% of businesses dissatisfied with the support of the Government, up from 29% in August.

Owners of mid-sized businesses (20 – 199 employees) have been most unhappy with the performance of the Government in the last quarter, with a 25% increase in dissatisfaction, to a high 42%.

“The economic results of the MYOB Business Monitor show Kiwi businesses have been doing it tough over the last quarter, with revenue falling and pipeline work drying up. And some of the frustration at the slow and uneven recovery will no doubt be colouring how businesses see the performance of the Government,” says Julian Smith.

“But at both a local and national level, it’s clear the business community feels their elected representatives are not doing enough to support their success” he concluded.

- ENDS -

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