Councils must stop gouging small business says MANZ

FOR IMMEDIATE RELEASE

30 January 2012

Councils must stop gouging small business says Motel Association of New Zealand

Local authorities must stop viewing small businesses as revenue pools and start treating them as partners, says the Motel Association of New Zealand (MANZ).

Motel-owners are tired of the never-ending pile of compliance costs heaped upon them, which in some cases appear to be spiralling out of control, MANZ Chief Executive Michael Baines says.

A case in point is the Rotorua District Council, which charged an hourly rate of $278.76 to conduct an audit of a motel to check on the Independently Qualified Person (IQP) inspection done as part of the building’s compliance. The IQP inspection is required to obtain a building warrant of fitness to ensure it can legally operate.

“This is simply outrageous and nothing short of price-gouging. To charge well above the going rate a range of professional costs shows many local bodies have a monopolist mindset when it comes to setting some of their fees,” Mr Baines says.

“We realise that as small business-owners moteliers need to comply with rules and regulations which ensure the safety of themselves and their guests. Our members are happy to do this as long as costs are kept to a reasonable level,” Mr Baines says.

Mr Baines says local government needs to take a partnering approach to small businesses such as motels, encouraging growth and investment by keeping fees and charges to a more reasonable level.

“The best outcome for New Zealand in these tougher economic times is for both local and central government to foster small business, not heap onerous costs upon them,” Mr Baines concluded.

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