And now for the good news…
Business confidence is continuing to rise according to Chamber of Commerce members in the latest Quarterly Business Confidence Poll. Whilst the results are still provisional the indication is that for the fifth successive quarter, the level of business optimism has increased in regard to how Northland businesses view both the economy’s overall performance and how they assess their own prospects in the period ahead.
The indicators which are gradually improving are; Business Optimism, Business prospects and a reducing number of people believing that business conditions are deteriorating.
Widely reported claims by economic commentators last year predicting a fall in NZ business optimism through 2006 have turned out to be 100% wrong, as far as businesses in the Northern Regional Chamber of Commerce catchment area. In fact, the exact opposite trend has occurred as business confidence has steadily improved throughout the year.
In December last year nearly 60% of businesses were predicting the business environment to deteriorate in 2006. But in every survey since, the level of pessimism has dropped with just 18% now picking that the business environment will get worse next year.
Despite recent warnings from the Reserve Bank that interest rates may be forced to rise next year, 37% of respondents believe they will increase compared to 43% of this view at the last survey in September. Similarly, a recent fall in New Zealand’s terms of trade has been ignored by business in assessing their prospects in the period ahead.
Part of the explanation for the improved optimism could relate to a growing belief that the Government is serious in wanting to encourage business to improve productivity and address basic infrastructure issues such as transport and energy.
Our events calendar is slowly filling up for 2007 if you are not a subscriber to our e-letter we encourage you to do so by entering your details at our website http://www.northchamber.co.nz/ to keep abreast of the latest business news and events happening around Northland.
Meanwhile Christmas is on every ones mind, diaries are full of events to attend celebrating festive cheer as wallets empty to purchase those presents we all love to give and receive.
Remember shop Northland!! Everything on your wish list is right here in Northland and we really do have the most accessible and diverse shopping in the country. While summer is still struggling to find us, Christmas is the time retailers wait all year for to boost sales.
2007 will have implications for businesses with changes to annual leave entitlement and introduction of Kiwi Saver, but those subjects can wait for another time. Now is the time to savour Christmas and all that it means to you. Be safe, be well, be happy and enjoy time with family and friends. From the Board and Staff at the Northland Chamber of Commerce Merry Christmas and best wishes for a brilliant New Year!!
Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz , www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
14 December 2006
04 December 2006
Northland Employers Christmas Holiday Guide….
What do I pay an employee for working on a public holiday? Can I require employees to work on a public holiday? Can I operate a Christmas Closedown? How are annual holidays paid?
Christmas is only 3 weeks away. Hopefully all Northland Businesses are flat out looking after customers and producing products and services for their customers.
For employees this time of the year is one to look forward to with looming holidays on the not so distant horizon. For employers this time of the year is one that can be fraught with difficulties and complex legislation if not carefully planned for.
The Northland Chamber of Commerce has a guide to public Holidays and Christmas / New Year 2006 on our web site as a service to Northland Employers. This guide has a list of the 17 most frequently asked Questions regarding Christmas / New Year Holiday period. This guide is designed to take the complication out of sometimes confusing legislation. Down load the guide from the front page of our website www.northchamber.co.nz There is also an easy to follow flow chart to simplify the process even further
For the record here the answers to the above questions..
What do I pay an employee for working on a public holiday?
If an employee works on a public holiday that employee is entitled to be paid, for the hours the employee works on that day, at the greater of (1) the employee’s “relevant daily pay” if it includes a penal rate that is more than time and a half or (2) the employee’s “relevant daily pay” less any penal rate that is less than time and a half, plus half that daily pay again (with the penal rate removed) i.e. time and a half excluding any contractual penal rate.
Note an employee is only entitled under the Holidays Act 2003 to payment for the actual hours worked on the day not the hours an employee would normally work on that day. As an example if an employee normally works 8 but only works 3 hours on a public holiday that employee is only entitled to be paid for working 3 hours.
Can I require employees to work on a public holiday?
You can only require employees to work on a public holiday if the public holiday would “otherwise be a working day” for the employee and the employment agreement requires the employee to work on the public holiday.
Can I still operate a Christmas close down?
Yes, as long as you have customarily had a Christmas close down.
How are annual holidays paid?
Annual holidays are to be calculated and paid at the greater of the employee’s “average weekly earnings” or “ordinary weekly pay” at the time the holiday is taken. The “average” weekly earnings is the employee’s “gross earnings” divided by 52. The “ordinary weekly pay” is the pay an employee receives under his or her employment agreement in an ordinary week and includes commission, bonuses, productivity, incentive pay, overtime, if they form part of the employee’s regular pay and the cash value of any board and lodgings provided by the employer. However, it excludes
any of the above listed payments (except the cash value of board and lodgings), if they are not part of an employee’s regular pay as well as one off exceptional payments and any discretionary payments that the employer is not bound by the terms of employment to pay to the employee. If it is not possible to calculate “ordinary weekly pay” on
this basis, the Holidays Act 2003 provides a formula.
But wait there’s more…
The Northland Chamber of Commerce also has a range of other useful how to’s available from the www.chamber.co.nz website – these include Employment information such as Pre employment checklist, recruiting, interviewing, discrimination, contracts, legislation, health & safety, retention and performance reviews, Annual Holidays. There is also the result of the 2006 / 2007 Salary Survey. This is handy for checking on the going rate of salaries for workers in over 180 occupations.
Some of these guides will require a log in and password, if your business is a Northland Chamber member they will have this otherwise please call us for membership details.
The Holidays Information above is kindly supplied by Hesketh Henry Lawyers and the Auckland Chamber of Commerce. It is intended as a guide only and specific information for your business should be sought by an employment specialist.The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz , www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
What do I pay an employee for working on a public holiday? Can I require employees to work on a public holiday? Can I operate a Christmas Closedown? How are annual holidays paid?
Christmas is only 3 weeks away. Hopefully all Northland Businesses are flat out looking after customers and producing products and services for their customers.
For employees this time of the year is one to look forward to with looming holidays on the not so distant horizon. For employers this time of the year is one that can be fraught with difficulties and complex legislation if not carefully planned for.
The Northland Chamber of Commerce has a guide to public Holidays and Christmas / New Year 2006 on our web site as a service to Northland Employers. This guide has a list of the 17 most frequently asked Questions regarding Christmas / New Year Holiday period. This guide is designed to take the complication out of sometimes confusing legislation. Down load the guide from the front page of our website www.northchamber.co.nz There is also an easy to follow flow chart to simplify the process even further
For the record here the answers to the above questions..
What do I pay an employee for working on a public holiday?
If an employee works on a public holiday that employee is entitled to be paid, for the hours the employee works on that day, at the greater of (1) the employee’s “relevant daily pay” if it includes a penal rate that is more than time and a half or (2) the employee’s “relevant daily pay” less any penal rate that is less than time and a half, plus half that daily pay again (with the penal rate removed) i.e. time and a half excluding any contractual penal rate.
Note an employee is only entitled under the Holidays Act 2003 to payment for the actual hours worked on the day not the hours an employee would normally work on that day. As an example if an employee normally works 8 but only works 3 hours on a public holiday that employee is only entitled to be paid for working 3 hours.
Can I require employees to work on a public holiday?
You can only require employees to work on a public holiday if the public holiday would “otherwise be a working day” for the employee and the employment agreement requires the employee to work on the public holiday.
Can I still operate a Christmas close down?
Yes, as long as you have customarily had a Christmas close down.
How are annual holidays paid?
Annual holidays are to be calculated and paid at the greater of the employee’s “average weekly earnings” or “ordinary weekly pay” at the time the holiday is taken. The “average” weekly earnings is the employee’s “gross earnings” divided by 52. The “ordinary weekly pay” is the pay an employee receives under his or her employment agreement in an ordinary week and includes commission, bonuses, productivity, incentive pay, overtime, if they form part of the employee’s regular pay and the cash value of any board and lodgings provided by the employer. However, it excludes
any of the above listed payments (except the cash value of board and lodgings), if they are not part of an employee’s regular pay as well as one off exceptional payments and any discretionary payments that the employer is not bound by the terms of employment to pay to the employee. If it is not possible to calculate “ordinary weekly pay” on
this basis, the Holidays Act 2003 provides a formula.
But wait there’s more…
The Northland Chamber of Commerce also has a range of other useful how to’s available from the www.chamber.co.nz website – these include Employment information such as Pre employment checklist, recruiting, interviewing, discrimination, contracts, legislation, health & safety, retention and performance reviews, Annual Holidays. There is also the result of the 2006 / 2007 Salary Survey. This is handy for checking on the going rate of salaries for workers in over 180 occupations.
Some of these guides will require a log in and password, if your business is a Northland Chamber member they will have this otherwise please call us for membership details.
The Holidays Information above is kindly supplied by Hesketh Henry Lawyers and the Auckland Chamber of Commerce. It is intended as a guide only and specific information for your business should be sought by an employment specialist.The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz , www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
20 November 2006
Tumble weed city Memo to: Whangarei CBD Building Owners, Businesses and retailers
The Northland Chamber of Commerce is a business association representing the interests of all its members throughout Northland.
It’s rare that we pick out a small location or group of people to directly talk to however some aspects concerning the Whangarei CBD have become concerning.
The CBD Shopping area is a great place to spend a Saturday Morning. It’s lively, busy and there is a real good ‘feel ‘to the city. For a small provincial town it is surprising the amount of shops we have available which you might expect to see in a much larger city.
You can wander through the Strand where there are 40 odd interesting shops out into the mall which usually has something interesting going on. If you are feeling lively you can take a wander down to the town basin where there are some great creative retailers and good coffee.
The Northland Chamber of Commerce has been talking to Whangarei CBD Businesses lately. Almost all businesses we have spoken to have opinions on some aspects of town planning or parking or decisions made by a local body authority that they can point out have negatively affected their business.
One disturbing aspect that comes through is the almost robotic tendency to blame local Government for our woes. Yes – the city possibly wasn’t well planned from the start. However my experience with local Government especially the politicians are that they are almost falling over themselves to work with local business in the CBD area to ensure that the CBD area remains prime real estate.
So the choice is really ours in going forward what we want the CBD to look like. Here are a couple of possible scenarios.
One - The CBD can either be the lively thriving commercial centre of the Northland Region. Premises are fully occupied with demand for space more than supply. Great planned developments ensuring flow of traffic, Parking, preservation of features and a place where business is carried out effortlessly. Natural Linkages in with Parks, Marinas and retail to co-hesively work make theCBD a destination.
or Two - A Dying / dead centre. No tenants interested in locating there. Unkempt streets, boarded up shop fronts, tumbleweed scampering down Cameron street. Mall vandalized and a good area to avoid.
The future of the Whangarei CBD holds some challenges for landowners and residents. We have competition from retail precincts such as Okara Park, Tarewo and the emerging centre around Gumdiggers Place. Ruakaka developments may see a new ‘centre, emerge which will give planners green fields opportunities.
The Challenge is to recognise that its not up to ‘someone’ else to preserve the viability of the CBD area. If you have a financial stake in the whangarei CBD there are some things you can do to protect your investment
1. Join your local Chamber of Commerce
2. Take part in the retail / CBD Committee
3. Debate and provide constructive feedback on the CBD 20/20 Plan
4. Using the Chamber as a facilitator – agree on some minimum opening hours
5. Provide constructive suggestion on immediate Parking, Traffic Flow and congestion issues.
If we stick together as a group with a financial stake in the CBD with the lobbying and advocacy service provided by your Chamber of Commerce you can have a positive impact in the CBD and ensure that it’s an area that will continue to be a great place to do business.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
It’s rare that we pick out a small location or group of people to directly talk to however some aspects concerning the Whangarei CBD have become concerning.
The CBD Shopping area is a great place to spend a Saturday Morning. It’s lively, busy and there is a real good ‘feel ‘to the city. For a small provincial town it is surprising the amount of shops we have available which you might expect to see in a much larger city.
You can wander through the Strand where there are 40 odd interesting shops out into the mall which usually has something interesting going on. If you are feeling lively you can take a wander down to the town basin where there are some great creative retailers and good coffee.
The Northland Chamber of Commerce has been talking to Whangarei CBD Businesses lately. Almost all businesses we have spoken to have opinions on some aspects of town planning or parking or decisions made by a local body authority that they can point out have negatively affected their business.
One disturbing aspect that comes through is the almost robotic tendency to blame local Government for our woes. Yes – the city possibly wasn’t well planned from the start. However my experience with local Government especially the politicians are that they are almost falling over themselves to work with local business in the CBD area to ensure that the CBD area remains prime real estate.
So the choice is really ours in going forward what we want the CBD to look like. Here are a couple of possible scenarios.
One - The CBD can either be the lively thriving commercial centre of the Northland Region. Premises are fully occupied with demand for space more than supply. Great planned developments ensuring flow of traffic, Parking, preservation of features and a place where business is carried out effortlessly. Natural Linkages in with Parks, Marinas and retail to co-hesively work make theCBD a destination.
or Two - A Dying / dead centre. No tenants interested in locating there. Unkempt streets, boarded up shop fronts, tumbleweed scampering down Cameron street. Mall vandalized and a good area to avoid.
The future of the Whangarei CBD holds some challenges for landowners and residents. We have competition from retail precincts such as Okara Park, Tarewo and the emerging centre around Gumdiggers Place. Ruakaka developments may see a new ‘centre, emerge which will give planners green fields opportunities.
The Challenge is to recognise that its not up to ‘someone’ else to preserve the viability of the CBD area. If you have a financial stake in the whangarei CBD there are some things you can do to protect your investment
1. Join your local Chamber of Commerce
2. Take part in the retail / CBD Committee
3. Debate and provide constructive feedback on the CBD 20/20 Plan
4. Using the Chamber as a facilitator – agree on some minimum opening hours
5. Provide constructive suggestion on immediate Parking, Traffic Flow and congestion issues.
If we stick together as a group with a financial stake in the CBD with the lobbying and advocacy service provided by your Chamber of Commerce you can have a positive impact in the CBD and ensure that it’s an area that will continue to be a great place to do business.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
Join the chamber - click here, no card required!
Jeff Smith
Northland Chamber of Commerce
Ph. 09 438 4771
Fax 09 438 4770
DDI 09 4384758
mob 027 444 1010
MSN IM northchamber
Email: ceo@northchamber.co.nz
Website : www.kaiparachamber.co.nz
Website: www.northchamber.co.nz
Website: www.farnorthchamber.co.nz
Jeff Smith
Northland Chamber of Commerce
Ph. 09 438 4771
Fax 09 438 4770
DDI 09 4384758
mob 027 444 1010
MSN IM northchamber
Email: ceo@northchamber.co.nz
Website : www.kaiparachamber.co.nz
Website: www.northchamber.co.nz
Website: www.farnorthchamber.co.nz
24 October 2006
Most of us simply don’t care about energy!
‘…we are not only ignorant of what energy is, and the critical role it has played and
Continues in economics and politics, but most of us simply don’t care about energy ’
As a nation, until recently, we simply ignored the inevitability of depletion of current energy stocks. There has been no urgency in exploration or generation of future power supplies.
On top of this we lost sight of the fact that as our demand for energy increased we would one day reach a point that the service life of our aging transmission and distribution networks would be placed at risk.
Energy and our reliance on a reliable energy supply has become ubiquitous to our every day lives. In other words – we expect the lights to go on every time we flick the switch without fail.
We believe that this is still the case today among kiwis and kiwi businesses.
Given the interest in the Marsden-b refiring it might be handy to look at a few facts and decide on where the Northland Chamber of Commerce stands.
Facts
- MRP is looking to fire up the Marsden-B power plant
- The plant was originally designed as an oil powered plant
- Oil is relatively expensive in comparison to coal supply
- The Plant is being modified to be fired by coal
- New Zealand’s Power use is growing by between 2-3% per annum which equates to new generation of 120MW each year
- Power retailers are investing heavily to ensure security of electricity supply for New Zealand
- The potential output of the Marsden-B plant is 320MW
- Resource consent has been granted to fire the plant however this is now before the environmental court as appeals have been lodged.
Energy policy is being given heightened consideration worldwide due to dramatic price increases, potential future constraints on fuel supplies and widespread acknowledgement of the threat that climate change poses.
The Northland Chamber of Commerce is concerned with future security of power supply for the following reasons
- The cost to the end user of escalating power prices affects our competitiveness as a global producer of goods and services and therefore has an impact on our economic performance.
- The effect on the global environment of some types of power generation
- The scarceness of some Raw fuel supplies (Generation) and the deteriorating infrastructure that carries power from the generation to the end user (transmission).
- Energy has an essential role in modern societies for underpinning economic performance. As a consequence, we believe that energy is one of the more important issues facing Northland.
- The ability to sustain and expand existing Industry and attracting new Industry is dependent on a reliable and affordable energy supply.
- In recent years it has become evident that the lack of available energy for current and projected demand is a major barrier to Regional and National Economic Growth.
In the Speech from the Throne last year (2005), the government announced it would explore various energy scenarios to develop a New Zealand Energy Strategy. In addition, the address stated that "Priority will be given to renewable energy sources." and that "A more aggressive approach will be taken with respect to energy efficiency…”
This is fine - however Northland communities are using increasing amounts of energy and are becoming increasingly reliant on the delivery of high quality energy services. Our members are asking how as a region we can do better in meeting our future energy needs and what the alternatives are.
In a recent quick survey to Northland Business, initial indications are that 65% of members support the Marsden-B station being fired up and 35% do not support this particular medium.
100% of respondents to date do agree that building capacity now for the future of the Northland Economy is essential.
If the Northland Chamber was asked `I want to set up an energy- intensive manufacturing business in Northland and want some security that for the next 10 years that I will have reasonably reliable electricity at a reasonable cost', how would we answer this question as the situation currently stands?
For this reason the Northland Chamber of Commerce would support the Re-firing of the Marsden B Power station within a sustainable energy framework. (As determined by the RMA)
Tommorrow at the Employers Services / Chamber conference Warren Moyes and Mark Gatland from Northpower will be addressing a session on security of electricity supply. We encourage you to take part in this conference and invite you to call us today to register.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
‘…we are not only ignorant of what energy is, and the critical role it has played and
Continues in economics and politics, but most of us simply don’t care about energy ’
As a nation, until recently, we simply ignored the inevitability of depletion of current energy stocks. There has been no urgency in exploration or generation of future power supplies.
On top of this we lost sight of the fact that as our demand for energy increased we would one day reach a point that the service life of our aging transmission and distribution networks would be placed at risk.
Energy and our reliance on a reliable energy supply has become ubiquitous to our every day lives. In other words – we expect the lights to go on every time we flick the switch without fail.
We believe that this is still the case today among kiwis and kiwi businesses.
Given the interest in the Marsden-b refiring it might be handy to look at a few facts and decide on where the Northland Chamber of Commerce stands.
Facts
- MRP is looking to fire up the Marsden-B power plant
- The plant was originally designed as an oil powered plant
- Oil is relatively expensive in comparison to coal supply
- The Plant is being modified to be fired by coal
- New Zealand’s Power use is growing by between 2-3% per annum which equates to new generation of 120MW each year
- Power retailers are investing heavily to ensure security of electricity supply for New Zealand
- The potential output of the Marsden-B plant is 320MW
- Resource consent has been granted to fire the plant however this is now before the environmental court as appeals have been lodged.
Energy policy is being given heightened consideration worldwide due to dramatic price increases, potential future constraints on fuel supplies and widespread acknowledgement of the threat that climate change poses.
The Northland Chamber of Commerce is concerned with future security of power supply for the following reasons
- The cost to the end user of escalating power prices affects our competitiveness as a global producer of goods and services and therefore has an impact on our economic performance.
- The effect on the global environment of some types of power generation
- The scarceness of some Raw fuel supplies (Generation) and the deteriorating infrastructure that carries power from the generation to the end user (transmission).
- Energy has an essential role in modern societies for underpinning economic performance. As a consequence, we believe that energy is one of the more important issues facing Northland.
- The ability to sustain and expand existing Industry and attracting new Industry is dependent on a reliable and affordable energy supply.
- In recent years it has become evident that the lack of available energy for current and projected demand is a major barrier to Regional and National Economic Growth.
In the Speech from the Throne last year (2005), the government announced it would explore various energy scenarios to develop a New Zealand Energy Strategy. In addition, the address stated that "Priority will be given to renewable energy sources." and that "A more aggressive approach will be taken with respect to energy efficiency…”
This is fine - however Northland communities are using increasing amounts of energy and are becoming increasingly reliant on the delivery of high quality energy services. Our members are asking how as a region we can do better in meeting our future energy needs and what the alternatives are.
In a recent quick survey to Northland Business, initial indications are that 65% of members support the Marsden-B station being fired up and 35% do not support this particular medium.
100% of respondents to date do agree that building capacity now for the future of the Northland Economy is essential.
If the Northland Chamber was asked `I want to set up an energy- intensive manufacturing business in Northland and want some security that for the next 10 years that I will have reasonably reliable electricity at a reasonable cost', how would we answer this question as the situation currently stands?
For this reason the Northland Chamber of Commerce would support the Re-firing of the Marsden B Power station within a sustainable energy framework. (As determined by the RMA)
Tommorrow at the Employers Services / Chamber conference Warren Moyes and Mark Gatland from Northpower will be addressing a session on security of electricity supply. We encourage you to take part in this conference and invite you to call us today to register.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
05 October 2006
Northland Businesses most optimistic
Business confidence in provincial centres is continuing to trend upwards in a survey of 500 business respondents undertaken electronically by the Northern Regional Chambers of Commerce late last month.
For the third successive quarter the level of business optimism in Northland, Waikato, Bay of Plenty and Rotorua has increased in both the general business situation and how respondents assess the prospects of their own business in the period ahead.
The findings are strongly consistent with trends of a similar survey of urban Auckland businesses in the second half of September.
Key messages from the survey that asked businesses to look ahead at conditions for the next six months shows that business confidence has improved from just 8% of respondents predicting the general situation to improve last December to 27% of this view in the survey conducted last week.
In respect of how respondents see their own business situation over the next six months, 60% predict they will improve compared with 38% of this view last December.
Commenting, Chamber Chief Executive Jeff Smith notes that confidence has increased in each of the last three surveys.
“This result suggests Chamber members in provincial centres as a group are defying the negative talk that is persisting in certain quarters. The evidence shows that an increasing number of businesses have ‘put negativity to one side’ and are taking their own decisions to move forward.”
At the end of the day, the strong self belief of many businesses is starting to dominate. “The survey findings show that just 20% of provincial businesses are picking the business environment to get worse in the next six months, compared with 33% who held this view at the previous survey in June and the low point of 56% in the survey last December.”
Main survey findings were:
On Confidence
• 20% of provincial firms believe conditions for business will get worse over the next six months, compared with 33% in the June survey, 36% in March and 56% last December. 27% now believe conditions will improve compared to 16% in June, 12% in March and only 8% last December. In urban Auckland 25% believe conditions will get worse over the next six months, down from 40% in June, 49% in March and 59% last December. The result suggests marginally less pessimism in provincial areas than urban Auckland about prospects in the next 6 months.
• 92% of provincial firms believe conditions for their own individual business will stay the same or improve over the next six months, up from 89% in June, 86% in March and 80% last December, while 40% believe they will stay the same or get worse, compared to 50% in June, 51% in March and 61% last December. Comparable figures for urban Auckland were 86% expecting conditions to stay the same or improve and 53% expecting conditions to stay the same or get worse, reinforcing the view that provincial centre businesses are less pessimistic about the future than their urban counterparts.
• 60% of provincial firms believe that conditions for their own business will improve over the next six months, compared to 49% in June, 48% in March and 38% in the December survey. Comparable figures for urban Auckland were 48% in the latest survey, 41% in June, 40% in March and 35% last December.
On Skills
• 41% of provincial firms believe it will continue to be harder to employ people with the right skills, compared with 39% of this view in June. Comparable figures in urban Auckland were 39% in the latest survey and 37% in the June survey.
On Interest Rates
• 39% of respondents believe interest rates will rise, compared with 43% in June, 36% in March and 85% in the December survey. Urban Auckland shows a similar trend, with 43% in the September survey expecting interest rates to rise, compared with 44% in June, 33% in March and 85% last December.
• 11% of provincial respondents believe interest rates will decrease in the next 12 months compared to 9% in June, 23% in March and just 1% who held this view last December. Comparable results for urban Auckland were 10% believing interest rates would fall in the September survey the same as in June compared to 24% in March and just 3% of this view in December.
The difficulty in recruiting skilled, qualified and/or reliable, experienced staff continues to be the main issue of concern for many businesses.
In a comparison of responses by city and town, optimism about prospects in the next six months was highest in Northland with 37% of respondents expecting the general business situation to improve in the next six months, followed by Waikato (28%), Tauranga (27%) and Rotorua (23%) – compared with 19% for urban Auckland.
Pessimism about prospects in the next six months was highest in Waikato at 28% followed by Rotorua 20%, Northland 18%, Tauranga 13% and compared to urban Auckland at 25%.
Jeff Smith notes that the critical value of this survey is that it is ‘here and now.’ The survey measures the opinion of more than 500 businesses “within the last fortnight, not last month or six weeks ago.” In contrast, other surveys tend to measure the past – they are historic.”
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
Jeff Smith
438-4771
ceo@northchamber.co.nz
Business confidence in provincial centres is continuing to trend upwards in a survey of 500 business respondents undertaken electronically by the Northern Regional Chambers of Commerce late last month.
For the third successive quarter the level of business optimism in Northland, Waikato, Bay of Plenty and Rotorua has increased in both the general business situation and how respondents assess the prospects of their own business in the period ahead.
The findings are strongly consistent with trends of a similar survey of urban Auckland businesses in the second half of September.
Key messages from the survey that asked businesses to look ahead at conditions for the next six months shows that business confidence has improved from just 8% of respondents predicting the general situation to improve last December to 27% of this view in the survey conducted last week.
In respect of how respondents see their own business situation over the next six months, 60% predict they will improve compared with 38% of this view last December.
Commenting, Chamber Chief Executive Jeff Smith notes that confidence has increased in each of the last three surveys.
“This result suggests Chamber members in provincial centres as a group are defying the negative talk that is persisting in certain quarters. The evidence shows that an increasing number of businesses have ‘put negativity to one side’ and are taking their own decisions to move forward.”
At the end of the day, the strong self belief of many businesses is starting to dominate. “The survey findings show that just 20% of provincial businesses are picking the business environment to get worse in the next six months, compared with 33% who held this view at the previous survey in June and the low point of 56% in the survey last December.”
Main survey findings were:
On Confidence
• 20% of provincial firms believe conditions for business will get worse over the next six months, compared with 33% in the June survey, 36% in March and 56% last December. 27% now believe conditions will improve compared to 16% in June, 12% in March and only 8% last December. In urban Auckland 25% believe conditions will get worse over the next six months, down from 40% in June, 49% in March and 59% last December. The result suggests marginally less pessimism in provincial areas than urban Auckland about prospects in the next 6 months.
• 92% of provincial firms believe conditions for their own individual business will stay the same or improve over the next six months, up from 89% in June, 86% in March and 80% last December, while 40% believe they will stay the same or get worse, compared to 50% in June, 51% in March and 61% last December. Comparable figures for urban Auckland were 86% expecting conditions to stay the same or improve and 53% expecting conditions to stay the same or get worse, reinforcing the view that provincial centre businesses are less pessimistic about the future than their urban counterparts.
• 60% of provincial firms believe that conditions for their own business will improve over the next six months, compared to 49% in June, 48% in March and 38% in the December survey. Comparable figures for urban Auckland were 48% in the latest survey, 41% in June, 40% in March and 35% last December.
On Skills
• 41% of provincial firms believe it will continue to be harder to employ people with the right skills, compared with 39% of this view in June. Comparable figures in urban Auckland were 39% in the latest survey and 37% in the June survey.
On Interest Rates
• 39% of respondents believe interest rates will rise, compared with 43% in June, 36% in March and 85% in the December survey. Urban Auckland shows a similar trend, with 43% in the September survey expecting interest rates to rise, compared with 44% in June, 33% in March and 85% last December.
• 11% of provincial respondents believe interest rates will decrease in the next 12 months compared to 9% in June, 23% in March and just 1% who held this view last December. Comparable results for urban Auckland were 10% believing interest rates would fall in the September survey the same as in June compared to 24% in March and just 3% of this view in December.
The difficulty in recruiting skilled, qualified and/or reliable, experienced staff continues to be the main issue of concern for many businesses.
In a comparison of responses by city and town, optimism about prospects in the next six months was highest in Northland with 37% of respondents expecting the general business situation to improve in the next six months, followed by Waikato (28%), Tauranga (27%) and Rotorua (23%) – compared with 19% for urban Auckland.
Pessimism about prospects in the next six months was highest in Waikato at 28% followed by Rotorua 20%, Northland 18%, Tauranga 13% and compared to urban Auckland at 25%.
Jeff Smith notes that the critical value of this survey is that it is ‘here and now.’ The survey measures the opinion of more than 500 businesses “within the last fortnight, not last month or six weeks ago.” In contrast, other surveys tend to measure the past – they are historic.”
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
Jeff Smith
438-4771
ceo@northchamber.co.nz
Northland business optimism picking up faster than elsewhere
Northland business confidence is continuing to trend upwards with an increasing number predicting the economy to improve over the next six months.
There is also more optimism in Northland about the immediate prospects for the economy than in urban Auckland and also other major provincial centres – Rotorua, Tauranga and Waikato.
These are among findings of regular surveys of Chamber of Commerce members conducted in metropolitan Auckland and major provincial centres in the last fortnight on how they view business prospects in the period ahead.
Main findings in respect of Northland were as follows:
• On the general business situation, 37% of Northland businesses expect the general situation to improve over the next six months – up from 11% last June - and compared to 19% in urban Auckland, 27% in Tauranga, 23% in Rotorua and 28% in Waikato.
• Meanwhile 18% of Northland businesses expect business conditions to deteriorate over the next six months, compared to 32% in June and 63% holding this view last December. The 18% in the latest survey compares with 25% in urban Auckland, 13% in Tauranga, 20% in Rotorua and 28% in Waikato.
• In terms of individual business prospects, 72% of Northland businesses consider their prospects will improve over the next six months (49% in June and 33% in December), compared with 48% in Auckland, 61% in Tauranga, 53% in Waikato and 58% in Rotorua.
• Also, just 6% of individual Northland businesses believe their prospects will deteriorate over the next six months (20% in December), compared with 15% in Auckland, 11% in Waikato, 8% in Rotorua and also Tauranga.
• On interest rates, 33% of Northland businesses believe they will rise over the next 12 months (as against 87% of this view last December), compared to 43% in Auckland, 45% in Tauranga, 39% in Rotorua and 40% in Waikato. 22% believe interest rates will fall.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
Refer to the main press release for more info or contact
Jeff Smith
438-4771
ceo@northchamber.co.nz
Northland business confidence is continuing to trend upwards with an increasing number predicting the economy to improve over the next six months.
There is also more optimism in Northland about the immediate prospects for the economy than in urban Auckland and also other major provincial centres – Rotorua, Tauranga and Waikato.
These are among findings of regular surveys of Chamber of Commerce members conducted in metropolitan Auckland and major provincial centres in the last fortnight on how they view business prospects in the period ahead.
Main findings in respect of Northland were as follows:
• On the general business situation, 37% of Northland businesses expect the general situation to improve over the next six months – up from 11% last June - and compared to 19% in urban Auckland, 27% in Tauranga, 23% in Rotorua and 28% in Waikato.
• Meanwhile 18% of Northland businesses expect business conditions to deteriorate over the next six months, compared to 32% in June and 63% holding this view last December. The 18% in the latest survey compares with 25% in urban Auckland, 13% in Tauranga, 20% in Rotorua and 28% in Waikato.
• In terms of individual business prospects, 72% of Northland businesses consider their prospects will improve over the next six months (49% in June and 33% in December), compared with 48% in Auckland, 61% in Tauranga, 53% in Waikato and 58% in Rotorua.
• Also, just 6% of individual Northland businesses believe their prospects will deteriorate over the next six months (20% in December), compared with 15% in Auckland, 11% in Waikato, 8% in Rotorua and also Tauranga.
• On interest rates, 33% of Northland businesses believe they will rise over the next 12 months (as against 87% of this view last December), compared to 43% in Auckland, 45% in Tauranga, 39% in Rotorua and 40% in Waikato. 22% believe interest rates will fall.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
Refer to the main press release for more info or contact
Jeff Smith
438-4771
ceo@northchamber.co.nz
25 September 2006
Chamber of Commerce Business taxation review Submission
Earlier this month the Combined New Zealand Chambers of Commerce made a submission to the Business taxation Review. This follows on from a visit by Peter Dunne to the Northland Chamber of Commerce in August.
In brief the New Zealand Chambers of Commerce and Industry stand for a low-rate, broad-based
tax policy.
We support a lower, flatter income tax structure including a reduction in the
rate of company tax (and related rates of tax) and a narrower differential between
personal and company tax rates.
The Chamber of Commerce believes that this would improve New Zealand’s international Competitiveness and boost investment, employment, productivity and economic growth. The Governments discussion document proposed a reduction in the Company tax rate by 3 cents in the dollar. The Chambers support this reduction however a reduction in the company rate of 3 cents in the dollar is not enough if we are to fully transform New Zealand’s economy or achieve the kind of productivity growth that both business and the Government seek.
It is likely that Australia and other countries will continue to lower their company and personal tax rates over the next few years and we believe that the New Zealand company tax rate needs to be lower than 30% if we are to maintain international competitiveness.
It is not possible to review business tax without considering personal taxes and their relationship with the company tax rate. Around 40% of businesses are unincorporated –for example as sole traders or partnerships – and so would not benefit directly from reductions in the company tax rate.
Cutting the headline company tax rate from 33% to 30% would widen the differential between it and the top rate of personal tax. Closer alignment of company and personal tax rates is necessary to reduce tax planning.
The other item in the Governments discussion document covered by Peter Dunne when he was in Northland is the proposal to re-introduce tax incentives. The Northland Chamber argued that tax incentives do more harm than good through the distortions they create. They erode the tax base and result in increased compliance and administrative costs.
The tax incentives in place in New Zealand prior to 1984 did not work well. In all likelihood, many of the pre-1984 problems would reoccur under the options outlined by Peter Dunne and so these “tax base initiatives” should be avoided and the low-rate, broad-based tax principle should be retained.
There is little support amongst businesses for tax base initiatives. A recent Wellington Chamber of Commerce survey of businesses in the Wellington region found that 72% of respondents would prefer that the Government reduce the company tax rate compared with 22% who would prefer targeted incentives for research and development or exporting.
A Copy of the full submission can be found on the Northland Chamber of Commerce website www.northchamber.co.nz
The Northland Chamber of Commerce would also like to take this opportunity to thank all those sponsors, entrants and Judges involved in our recent business awards. We congratulate Lodge Bordeaux for wining the supreme awards and also Darryl’s Dinner Cruises the winner of the Northland Chamber of Commerce Excellence in tourism award.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
Earlier this month the Combined New Zealand Chambers of Commerce made a submission to the Business taxation Review. This follows on from a visit by Peter Dunne to the Northland Chamber of Commerce in August.
In brief the New Zealand Chambers of Commerce and Industry stand for a low-rate, broad-based
tax policy.
We support a lower, flatter income tax structure including a reduction in the
rate of company tax (and related rates of tax) and a narrower differential between
personal and company tax rates.
The Chamber of Commerce believes that this would improve New Zealand’s international Competitiveness and boost investment, employment, productivity and economic growth. The Governments discussion document proposed a reduction in the Company tax rate by 3 cents in the dollar. The Chambers support this reduction however a reduction in the company rate of 3 cents in the dollar is not enough if we are to fully transform New Zealand’s economy or achieve the kind of productivity growth that both business and the Government seek.
It is likely that Australia and other countries will continue to lower their company and personal tax rates over the next few years and we believe that the New Zealand company tax rate needs to be lower than 30% if we are to maintain international competitiveness.
It is not possible to review business tax without considering personal taxes and their relationship with the company tax rate. Around 40% of businesses are unincorporated –for example as sole traders or partnerships – and so would not benefit directly from reductions in the company tax rate.
Cutting the headline company tax rate from 33% to 30% would widen the differential between it and the top rate of personal tax. Closer alignment of company and personal tax rates is necessary to reduce tax planning.
The other item in the Governments discussion document covered by Peter Dunne when he was in Northland is the proposal to re-introduce tax incentives. The Northland Chamber argued that tax incentives do more harm than good through the distortions they create. They erode the tax base and result in increased compliance and administrative costs.
The tax incentives in place in New Zealand prior to 1984 did not work well. In all likelihood, many of the pre-1984 problems would reoccur under the options outlined by Peter Dunne and so these “tax base initiatives” should be avoided and the low-rate, broad-based tax principle should be retained.
There is little support amongst businesses for tax base initiatives. A recent Wellington Chamber of Commerce survey of businesses in the Wellington region found that 72% of respondents would prefer that the Government reduce the company tax rate compared with 22% who would prefer targeted incentives for research and development or exporting.
A Copy of the full submission can be found on the Northland Chamber of Commerce website www.northchamber.co.nz
The Northland Chamber of Commerce would also like to take this opportunity to thank all those sponsors, entrants and Judges involved in our recent business awards. We congratulate Lodge Bordeaux for wining the supreme awards and also Darryl’s Dinner Cruises the winner of the Northland Chamber of Commerce Excellence in tourism award.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
29 August 2006
Workplace Productivity – Business benefits to improving productivity
Recently the New Zealand Chambers of Commerce worked with the Government to promote workplace productivity improvements. This arises from New Zealand’s productivity falling in relation to other members of the OECD. Our GDP per capita is 39% lower than that of the US. Most of that gap is attributed to lower labour or workplace productivity. Our labour utilisation rates are high by OECD standards but our workplace productivity is not.
There is also a realisation that for the country to remain globally competitive, increased productivity is essential. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker . The alternatives are to reduce the costs of labour and other inputs.
This is all fine when we are looking at the big picture, but how small can and medium sized businesses work to improve their productivity.
Workplace Productivity - is about exploring all the ways that a workplace can do things better and smarter
It can also be defined as how well an organisation converts resource inputs into goods or services. In other words how firms can utilise labour and skills, innovation, technology and workplace organisation to improve the quantity and quality of their output
For the Economy the benefits of increased productivity are huge HOWEVER for your business the benefits are improved profitability, increased institutional knowledge and highly motivated staff
The one important thing to remember when embarking on a productivity improvement programme is that improving workplace productivity is not about working harder but about working smarter
The 7 drivers to increasing workplace productivity
In 2004, after consulting with a number of NZ businesses and examining international research, the Workplace Productivity Working Group identified seven key drivers of workplace productivity
Building Leadership and Management.
Leadership and management capabilities are key drivers of firm capability and performance and cut across all of the other workplace productivity drivers. If there is a lack of strong leadership and/or management in a firm, it will be difficult to successfully develop and implement initiatives around the other main productivity drivers.
Creating Productive Workplace Cultures.
Employees need to be are willing to “go the extra mile ”.There is no single prescription for creating a productive organisational culture but firms can cultivate such an environment by fostering some significant cultural attributes, such as acknowledging the contribution of individuals, rewarding participation and good ideas, developing healthy and respectful relationships in the workplace and promoting a sense of shared goals and values.
Encouraging Innovation and the Use of Technology.
Creating new products or services or just doing things better are vital ways to achieve firm growth.
Investing in People and Skills.
Ongoing investment in foundation,technical,supervisory and managerial skills ,together with improvements in work organisation, can help improve the productivity and performance of New Zealand firms.
Organising Work.
Firms need to assess and adapt their structures and business practices and the way they carry out their work on an ongoing basis.
Networking and Collaboration.
Firms do not operate in isolation and there are significant productivity gains to be achieved by improving the exchange of knowledge, information and ideas through both formal and informal networks.
Measuring What Matters.
Good measurement and reporting practices, linked to an organisation’s strategies.
The Northland Chamber of Commerce would be happy to explore these issues in further detail with your business and invite you to give us a call.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say and vote on this and other topical business issues on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com.
Recently the New Zealand Chambers of Commerce worked with the Government to promote workplace productivity improvements. This arises from New Zealand’s productivity falling in relation to other members of the OECD. Our GDP per capita is 39% lower than that of the US. Most of that gap is attributed to lower labour or workplace productivity. Our labour utilisation rates are high by OECD standards but our workplace productivity is not.
There is also a realisation that for the country to remain globally competitive, increased productivity is essential. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker . The alternatives are to reduce the costs of labour and other inputs.
This is all fine when we are looking at the big picture, but how small can and medium sized businesses work to improve their productivity.
Workplace Productivity - is about exploring all the ways that a workplace can do things better and smarter
It can also be defined as how well an organisation converts resource inputs into goods or services. In other words how firms can utilise labour and skills, innovation, technology and workplace organisation to improve the quantity and quality of their output
For the Economy the benefits of increased productivity are huge HOWEVER for your business the benefits are improved profitability, increased institutional knowledge and highly motivated staff
The one important thing to remember when embarking on a productivity improvement programme is that improving workplace productivity is not about working harder but about working smarter
The 7 drivers to increasing workplace productivity
In 2004, after consulting with a number of NZ businesses and examining international research, the Workplace Productivity Working Group identified seven key drivers of workplace productivity
Building Leadership and Management.
Leadership and management capabilities are key drivers of firm capability and performance and cut across all of the other workplace productivity drivers. If there is a lack of strong leadership and/or management in a firm, it will be difficult to successfully develop and implement initiatives around the other main productivity drivers.
Creating Productive Workplace Cultures.
Employees need to be are willing to “go the extra mile ”.There is no single prescription for creating a productive organisational culture but firms can cultivate such an environment by fostering some significant cultural attributes, such as acknowledging the contribution of individuals, rewarding participation and good ideas, developing healthy and respectful relationships in the workplace and promoting a sense of shared goals and values.
Encouraging Innovation and the Use of Technology.
Creating new products or services or just doing things better are vital ways to achieve firm growth.
Investing in People and Skills.
Ongoing investment in foundation,technical,supervisory and managerial skills ,together with improvements in work organisation, can help improve the productivity and performance of New Zealand firms.
Organising Work.
Firms need to assess and adapt their structures and business practices and the way they carry out their work on an ongoing basis.
Networking and Collaboration.
Firms do not operate in isolation and there are significant productivity gains to be achieved by improving the exchange of knowledge, information and ideas through both formal and informal networks.
Measuring What Matters.
Good measurement and reporting practices, linked to an organisation’s strategies.
The Northland Chamber of Commerce would be happy to explore these issues in further detail with your business and invite you to give us a call.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say and vote on this and other topical business issues on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com.
23 August 2006
Locally owned and operated
The Northland Chamber of Commerce is made up of hundreds of locally owned and operated businesses. These businesses in turn employ local people who in turn send their children to local schools and utilise local business.
Why support local businesses? Because it makes economic sense….
….Dollars spent in locally-owned and operated businesses stay in the local economy longer and therefore creates greater local wealth. The benefits of shopping and buying local far exceed the money saved on petrol. Money spent in our community “turns over” several times. When we buy local we support our local economy, local businesses, and local jobs. Buying Local is also more than merely retail.
So.. Whether you are buying a car, furniture, clothing or a lawyer, consider the great quality, price, and service available right here in Northland.
To buy local, also means we take advantage of excellent quality local services. The Chamber’s web site www.northchamber.co.nz is a great example…... Chamber members realise this and agree to have their businesses listed on our searchable online database so that other members and Northlanders can find them easily. Members include retailers, Lawyers, services Industry, Transport Operators, Local real estate agencies etc
The Northland Chamber of commerce encourages locally owned and operated business by
• Creating support between local businesses and the community.
• Raising public awareness of the benefits of doing business locally.
• Addressing governmental policies that support our local businesses.
• Facilitating collaborative efforts among members
• Encourage strategic thinking to add to their competitive advantage. ("How can I add value that customers will happily pay more for? )
The Northland Chamber of Commerce also has a buy local policy to ensure that we always consider buying local and encourages other businesses to do this as well.
Congratulations to all Northlands locally owned and operated businesses-including those who have been around for decades and stood the test of time in the face of huge commercial challenges and increasing competition, and those that have started up more recently and are continuing to thrive.
Study after study has shown that more of the money you spend at local businesses stays in your community than money spent outside the region. But numbers, no matter how convincing, never tell the whole story. There are very real, tangible and human benefits to buying locally that go far beyond simple economics.
• Personalised, friendly service and community focus
• Fills a critical void in Northlands efforts at generating meaningful and sustainable economic development.
• Buying locally made products and services enhances employment, economic, environmental and social benefits.
• Builds brand loyalty for Northland made products
• Reduces imports from outside the region especially of consumption goods
• Help reduce fuel consumption
They want us overseas……
On the topic of buying local, one of the Northland Chamber board members is currently in the UK opening markets and distribution channels for Northland Products. This can be food or anything which is uniquely Northland. If you produce, grow or manufacture a Northland product please contact the Northland Chamber of Commerce.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say and vote on this and other topical business issues on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
The Northland Chamber of Commerce is made up of hundreds of locally owned and operated businesses. These businesses in turn employ local people who in turn send their children to local schools and utilise local business.
Why support local businesses? Because it makes economic sense….
….Dollars spent in locally-owned and operated businesses stay in the local economy longer and therefore creates greater local wealth. The benefits of shopping and buying local far exceed the money saved on petrol. Money spent in our community “turns over” several times. When we buy local we support our local economy, local businesses, and local jobs. Buying Local is also more than merely retail.
So.. Whether you are buying a car, furniture, clothing or a lawyer, consider the great quality, price, and service available right here in Northland.
To buy local, also means we take advantage of excellent quality local services. The Chamber’s web site www.northchamber.co.nz is a great example…... Chamber members realise this and agree to have their businesses listed on our searchable online database so that other members and Northlanders can find them easily. Members include retailers, Lawyers, services Industry, Transport Operators, Local real estate agencies etc
The Northland Chamber of commerce encourages locally owned and operated business by
• Creating support between local businesses and the community.
• Raising public awareness of the benefits of doing business locally.
• Addressing governmental policies that support our local businesses.
• Facilitating collaborative efforts among members
• Encourage strategic thinking to add to their competitive advantage. ("How can I add value that customers will happily pay more for? )
The Northland Chamber of Commerce also has a buy local policy to ensure that we always consider buying local and encourages other businesses to do this as well.
Congratulations to all Northlands locally owned and operated businesses-including those who have been around for decades and stood the test of time in the face of huge commercial challenges and increasing competition, and those that have started up more recently and are continuing to thrive.
Study after study has shown that more of the money you spend at local businesses stays in your community than money spent outside the region. But numbers, no matter how convincing, never tell the whole story. There are very real, tangible and human benefits to buying locally that go far beyond simple economics.
• Personalised, friendly service and community focus
• Fills a critical void in Northlands efforts at generating meaningful and sustainable economic development.
• Buying locally made products and services enhances employment, economic, environmental and social benefits.
• Builds brand loyalty for Northland made products
• Reduces imports from outside the region especially of consumption goods
• Help reduce fuel consumption
They want us overseas……
On the topic of buying local, one of the Northland Chamber board members is currently in the UK opening markets and distribution channels for Northland Products. This can be food or anything which is uniquely Northland. If you produce, grow or manufacture a Northland product please contact the Northland Chamber of Commerce.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say and vote on this and other topical business issues on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
15 August 2006
The Northland Regional Events Centre
Back in April the Northland Chamber of Commerce made a stand on the issue of a regional events centre based in Whangarei.
We stated that we would support any ‘well researched development project that added value to the economy, community and infrastructure of the region especially those projects that undergo rigorous scrutiny to ensure that the community and environment are protected.’
In other words the Northland Chamber could not support a project that wasn’t sustainable and that needed ongoing financial support and propping up.
Since then, we made a submission to the Northland Regional Council in favour of the concept with the above proviso.
The Northland Chamber of Commerce has a mission of assisting members achieve maximum success, improve long term profit and encourage positive social development.
The proposed events centre adds to the Northland Chambers mission by providing extra infrastructure to assist the region in delivering economic development initiatives.
In 2005 Northland Chamber of Commerce members were surveyed as to their aspirations regarding the events centre. The Results include;
- 61% of our members believed that the Events centre would add economic value to their businesses.
- A staggering 76% understood the concept as being a regional events centre and not a rugby Stadium.
- 79% believed that the Events Centre would add value to future generations.
In a more recent survey carried out last week our members were surveyed on a list of ‘hot’ advocacy issues and support for the new regional events centre came out at the 4th most popular issues out of a list of 11 development initiatives
The reason for this is clear. The Chamber of Commerce is made up of a number of business owners and people involved in business who have a can-do attitude and who believe that Northlanders deserve the best – new stadiums, libraries, infrastructure etc.
These same businesses are the ones who are creating wealth by employing people to provide services, manufacture products and produce primary products.
The Regional and District councils have a mandate to support projects like this under section 10 of the Local Government act 2002 which states the purpose of local Government. Both these authorities have consulted widely about this issue.
To summarise the Regional Events Centre is supported by the Northland Chamber of Commerce because
Of its positive impact on the Northland Regional Economy
It is a good partnership of local & regional Government working together with Private interests for the benefit of Northlanders.
Failsafe measures have been built in which would ensure that ratepayers are not funding on an ongoing basis the operations of the centre therefore it is financially sustainable
It can only add value to what is already a great region to live, work and play.
The Northland Chamber of Commerce is Northland’s Premier Business Advocacy, Networking, Education and Marketing Group. The chamber is part of a nationwide group of 30 Chambers of Commerce and 27000 globally. Membership enquiries can be made by phoning 09-438 4771 or emailing info@northchamber.co.nz for a free membership pack.
A copy of this article can be read at www.northchamber.blogspot.com – you can also vote or leave a comment there.
Back in April the Northland Chamber of Commerce made a stand on the issue of a regional events centre based in Whangarei.
We stated that we would support any ‘well researched development project that added value to the economy, community and infrastructure of the region especially those projects that undergo rigorous scrutiny to ensure that the community and environment are protected.’
In other words the Northland Chamber could not support a project that wasn’t sustainable and that needed ongoing financial support and propping up.
Since then, we made a submission to the Northland Regional Council in favour of the concept with the above proviso.
The Northland Chamber of Commerce has a mission of assisting members achieve maximum success, improve long term profit and encourage positive social development.
The proposed events centre adds to the Northland Chambers mission by providing extra infrastructure to assist the region in delivering economic development initiatives.
In 2005 Northland Chamber of Commerce members were surveyed as to their aspirations regarding the events centre. The Results include;
- 61% of our members believed that the Events centre would add economic value to their businesses.
- A staggering 76% understood the concept as being a regional events centre and not a rugby Stadium.
- 79% believed that the Events Centre would add value to future generations.
In a more recent survey carried out last week our members were surveyed on a list of ‘hot’ advocacy issues and support for the new regional events centre came out at the 4th most popular issues out of a list of 11 development initiatives
The reason for this is clear. The Chamber of Commerce is made up of a number of business owners and people involved in business who have a can-do attitude and who believe that Northlanders deserve the best – new stadiums, libraries, infrastructure etc.
These same businesses are the ones who are creating wealth by employing people to provide services, manufacture products and produce primary products.
The Regional and District councils have a mandate to support projects like this under section 10 of the Local Government act 2002 which states the purpose of local Government. Both these authorities have consulted widely about this issue.
To summarise the Regional Events Centre is supported by the Northland Chamber of Commerce because
Of its positive impact on the Northland Regional Economy
It is a good partnership of local & regional Government working together with Private interests for the benefit of Northlanders.
Failsafe measures have been built in which would ensure that ratepayers are not funding on an ongoing basis the operations of the centre therefore it is financially sustainable
It can only add value to what is already a great region to live, work and play.
The Northland Chamber of Commerce is Northland’s Premier Business Advocacy, Networking, Education and Marketing Group. The chamber is part of a nationwide group of 30 Chambers of Commerce and 27000 globally. Membership enquiries can be made by phoning 09-438 4771 or emailing info@northchamber.co.nz for a free membership pack.
A copy of this article can be read at www.northchamber.blogspot.com – you can also vote or leave a comment there.
31 July 2006
Business Tax Review - Bold move or more intervention?
Earlier this year the Northland Chamber of Commerce and other business associations provided a proposal to the Government on what they would like to see come out of the review of business taxation.
The joint proposal was based on the view that the main outcome of the review should be a reduction in the rate of company tax and a narrower gap between the top personal and company tax rates. The Proposal called for company tax rate of 25 percent and the present top and upper middle personal tax rates to be reduced to 28 percent.
The Chamber had a reduction in the tax rates in two steps by 2009/10.
The main criteria adopted by the Chamber in developing a proposal were to reform business taxation in a way that would benefit New Zealand’s Economic Growth and make New Zealand Tax structure internationally attractive especially in line with Australia.
In the lead up to the 2005 General Election the Government has said it planned ‘bold’ moves on business taxation. Our proposal was consistent with that commitment.
The Government, as part of its economic transformation package, has put together a number of initiatives for business to choose from; The Menu includes
Reducing the company tax rate from 33% to 30% (The Chamber proposal recommended that an immediate step be a reduction in the company rate to 30%)
Targeted tax credits for: - R&D activities - export market development activities, and - skills improvement;
Depreciation rate changes
Compliance cost reduction measures.
Peter Dunne from the United Party will be in Whangarei the 10th August 2006. Peter Dunne, in his confidence of supply deal with labour is the Minister of Revenue.
This means that he is solely responsible for all revenue areas and shares responsibility for tax policy with Dr Cullen.
This is a timely opportunity to talk to the minister as he will be able to answer questions regarding the latest ‘menu of options’ for Northland Businesses. We encourage Northland Business to come along ask questions and voice your opinion.
The questions we will be asking include
1. Is a 3% reduction in Company Tax rate a bold move?
2. What about personal tax rates (40% businesses are not incorporated)?
3. Targeted tax credits result from / encourage more Government Intervention - is there any way of getting Government out of the way?
4. How do these items add to United Future’s stated commitment to a low and comparatively flat tax structure?
We look forward to seeing Minister Dunne at the Whangarei District Library Conference room at 2pm on the 10th August 2006.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
Earlier this year the Northland Chamber of Commerce and other business associations provided a proposal to the Government on what they would like to see come out of the review of business taxation.
The joint proposal was based on the view that the main outcome of the review should be a reduction in the rate of company tax and a narrower gap between the top personal and company tax rates. The Proposal called for company tax rate of 25 percent and the present top and upper middle personal tax rates to be reduced to 28 percent.
The Chamber had a reduction in the tax rates in two steps by 2009/10.
The main criteria adopted by the Chamber in developing a proposal were to reform business taxation in a way that would benefit New Zealand’s Economic Growth and make New Zealand Tax structure internationally attractive especially in line with Australia.
In the lead up to the 2005 General Election the Government has said it planned ‘bold’ moves on business taxation. Our proposal was consistent with that commitment.
The Government, as part of its economic transformation package, has put together a number of initiatives for business to choose from; The Menu includes
Reducing the company tax rate from 33% to 30% (The Chamber proposal recommended that an immediate step be a reduction in the company rate to 30%)
Targeted tax credits for: - R&D activities - export market development activities, and - skills improvement;
Depreciation rate changes
Compliance cost reduction measures.
Peter Dunne from the United Party will be in Whangarei the 10th August 2006. Peter Dunne, in his confidence of supply deal with labour is the Minister of Revenue.
This means that he is solely responsible for all revenue areas and shares responsibility for tax policy with Dr Cullen.
This is a timely opportunity to talk to the minister as he will be able to answer questions regarding the latest ‘menu of options’ for Northland Businesses. We encourage Northland Business to come along ask questions and voice your opinion.
The questions we will be asking include
1. Is a 3% reduction in Company Tax rate a bold move?
2. What about personal tax rates (40% businesses are not incorporated)?
3. Targeted tax credits result from / encourage more Government Intervention - is there any way of getting Government out of the way?
4. How do these items add to United Future’s stated commitment to a low and comparatively flat tax structure?
We look forward to seeing Minister Dunne at the Whangarei District Library Conference room at 2pm on the 10th August 2006.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
18 July 2006
Relentless pursuit of fines
I’ll admit I am one of those people who upon getting a speeding fine – file it until way past the due date knowing that there will be another reminder in the mail. Once I receive that I put it right to the bottom of the to-dos in the eternal hope that the police will somehow magically lose my fine or forget to follow up. Then I receive a further notice for my original fine plus court costs. Once I receive this I generally mope over to the court house and pay the thing. Cursing as I fork over a perfectly good 60, 80 or 100 dollars that I can always find 1001 other uses for. Why do I eventually pay the fine? Well forget about philanthropic reasons or a ‘I’ve been a naughty boy and now I must pay my dues’ attitude - At the end of the day I know that If I don’t cough up am going to face further consequences i.e. Further court costs, cars impounded, named in the paper, bailiffs and eventually arrest next time I’m pulled over.
.Recently I have been astounded to read about huge fine write offs. Politicians in the usual ‘duck and dive’ statement said that ‘these fine write-offs ‘only happen through the courts by Judges with the authority to do so. What also irks with these fines remits are the reparation orders due to the victims of crime are also being written off.
The Board of the Northland Chamber of Commerce in the recently released Strategic Intent painted Northlands future as one where all citizens contribute economically – Stephen Gillingham’s leadership ensure that our members are aiming to create more than just an economic prosperous Northland, but includes other elements to ensure that everything we do today adds to a sustainable future for Northland. This includes being productive members of society and ensuring that we are all paying our way. A big part of this is of course taking responsibility for our actions.
As far as the fines remit problem is concerned it’s obvious from Minister Rick Barker’s comments that the Government don’t see the issue as being serious enough to deal with. We don’t agree with this logic. Fines and justice are an integral part of the make up of our community. We ask Rick Barker to ensure that every dollar of every fine is pursued relentlessly and that Government set policy and guidelines to ensure that this happens.
On Tuesday 8th August the Northland Chamber of Commerce will be hosting the Law and Order Spokesperson for the National Party, Simon Power. Simon is slowly gaining prominence among his constituency and this has been reflected in his rise through the National Party ranks.
Simons Visit will be timely with the recent announcement of the latest fines Remit. Northland Chamber of Commerce members will get an opportunity to ask Simon about this issue and how the opposition could handle topics like this.
For Chamber membership enquiries please contact the ofice on +64 9 4384771
I’ll admit I am one of those people who upon getting a speeding fine – file it until way past the due date knowing that there will be another reminder in the mail. Once I receive that I put it right to the bottom of the to-dos in the eternal hope that the police will somehow magically lose my fine or forget to follow up. Then I receive a further notice for my original fine plus court costs. Once I receive this I generally mope over to the court house and pay the thing. Cursing as I fork over a perfectly good 60, 80 or 100 dollars that I can always find 1001 other uses for. Why do I eventually pay the fine? Well forget about philanthropic reasons or a ‘I’ve been a naughty boy and now I must pay my dues’ attitude - At the end of the day I know that If I don’t cough up am going to face further consequences i.e. Further court costs, cars impounded, named in the paper, bailiffs and eventually arrest next time I’m pulled over.
.Recently I have been astounded to read about huge fine write offs. Politicians in the usual ‘duck and dive’ statement said that ‘these fine write-offs ‘only happen through the courts by Judges with the authority to do so. What also irks with these fines remits are the reparation orders due to the victims of crime are also being written off.
The Board of the Northland Chamber of Commerce in the recently released Strategic Intent painted Northlands future as one where all citizens contribute economically – Stephen Gillingham’s leadership ensure that our members are aiming to create more than just an economic prosperous Northland, but includes other elements to ensure that everything we do today adds to a sustainable future for Northland. This includes being productive members of society and ensuring that we are all paying our way. A big part of this is of course taking responsibility for our actions.
As far as the fines remit problem is concerned it’s obvious from Minister Rick Barker’s comments that the Government don’t see the issue as being serious enough to deal with. We don’t agree with this logic. Fines and justice are an integral part of the make up of our community. We ask Rick Barker to ensure that every dollar of every fine is pursued relentlessly and that Government set policy and guidelines to ensure that this happens.
On Tuesday 8th August the Northland Chamber of Commerce will be hosting the Law and Order Spokesperson for the National Party, Simon Power. Simon is slowly gaining prominence among his constituency and this has been reflected in his rise through the National Party ranks.
Simons Visit will be timely with the recent announcement of the latest fines Remit. Northland Chamber of Commerce members will get an opportunity to ask Simon about this issue and how the opposition could handle topics like this.
For Chamber membership enquiries please contact the ofice on +64 9 4384771
03 July 2006
ONTRACK is ONTRACK. Is Northland ONTRACK???
.
About 25 years ago someone thought it would make sense to have a rail link to connect the main trunk with Marsden. In the last 25 years a vast amount of engineering, economic, social and environmental reports and studies have been carried out. None of these reports have found any adverse economic, social or environmental reasons for not going ahead with a link out to Marsden.
The Marsden Link project appears to have support from all three local councils, regional Government, business, residents and even Central Government. The land required for this infrastructure has been identified. WHAT’S THE PROBLEM!? . ONTRACK is the latest reincarnation of the NZ Railways Corporation which looks after the rail corridor. The decision last week from ONTRACK was to not to proceed with the designation of this land.
Well, Mainland Cheese reckons good things take time - but 25 years? And we are not talking cheese here; we are talking about the economic and social well being of Northland! In our opinion this project would have to be one of the easiest and obvious economic development opportunities available to Northland.
All parties from politicians, business people, and community groups have told me that it is definitely going to happen one day, however, no-one can say when. We are sorry to be the bearer of obvious and bad news - it is not going to happen ‘one day’ unless we become extremely vocal to governmental power brokers in Wellington
The latest comments from our local and regional leaders expressed ‘disappointment’ about the latest ONTRACK decision and it was interesting to read that ‘ONTRACK has given…. And try to stay with us here ... ‘an assurance of continued interest and support for the project, and has pledged to continue to work on the establishment of an appropriate funding structure including the liability that would result from designation.’ We prefer not to be negative but that sounds like a carefully considered way of saying ‘we are satisfied to do nothing because no-one in Northland gives a toss … and we can put this on the back burner forever.’
Just because ONTRACK is a fairly new reincarnation of the NZ Railways Corporation, this is no reason for Northland to be going easy or giving concessions to them on this terribly important project. The NZ Government has a long institutional knowledge.
One of the hardest things in dealing with Government agencies is to convince them of lost opportunities when looking at development issues. The Northland Regional Council has quite rightly said that ‘ONTRACK needs to have vision to see the opportunities for creating synergies for development once a line is put in place.’
Once again, purely because of the nature of the beast, ONTRACK will not be able to see past the correct boxes they need to tick. In their minds, they have already ticked the right boxes by going through the latest exercise, communicated their findings (insert excuse here), and moved on to issues that they view as more pressing.
The Northland Chamber of Commerce has an Economic Development Mandate on behalf of its members. We are adamant that our community leaders and numerous members of parliament start becoming very vocal in Wellington to communicate in no uncertain terms that Northland wants this project back ONTRACK yesterday.
Make no mistake, In our opinion the fault for the latest delay is ours. ONTRACK have done their job but by remaining silent and reactive Northland has not demonstrated to Wellington our insistence that this project must go ahead! The Northland Chamber of Commerce is happy to volunteer to lead this and be involved in a very pro-active, rowdy, one eyed Northland way
01 July 2006
Rating Differential
This week – What is a commercial rating differential? Why does the Northland Chamber care about rating differentials? Why did the Chamber ask the Whangarei District Council to abolish the rating differential over the next 10 years in the recent submission to the long term community plan?
Whether you are a residential or commercial ratepayer, part of your rates bill includes general rates. The General Rates are those funds that are collected and are applied to activities that provide benefit to the whole community. These generally cover services where it is too hard to tax direct users.
The Rating differential is the loading that business and commercial premises have imposed onto their general rates. In Whangarei for instance the Rating Differential is 5.
This means that commercial or industrial users pay five times as much per dollar of land value than residential ratepayers.
Generally Local Authorities will use two arguments in justifying the differential
.
Firstly, commercial ratepayers can recover the GST on and deduct rates for income tax purposes but residential ratepayers cannot. The fallacy in this argument is that it doesn’t recognise that the business’s income is subject to tax whilst the imputed income of a residential household isn’t.
The second argument is that business and commercial ratepayers impose greater costs on infrastructure than residential properties. The cost of servicing commercial roading, parking and other utilities requires a higher standard of service. This argument misses the point that the commercial sector is used by everybody – for example the CBD is at least as much a benefit to the residents who go there to work, shop, eat and drink as it is to the businesses located there.
Why is it the organisations that are by their very nature creating wealth and employing people are hit the heaviest?
Remember that the majority of businesses in Northland (96%) are SMEs in other words employing less than 20 people.
Some areas have recognised the importance of the business sector. And in an effort to become business friendly, have abolished the commercial rating differential (eg. Kapiti).
Other areas have varying differentials based on the type of commercial zones eg. Wellington.
The Northland Chamber of Commerce advocates for the abolishment of the Commercial Differential and ask all distict and regional councils to consider a policy of abolishment over a 10 year period as a sign that we are a business friendly region.
Remember – to subscribe to the FREE fortnightly Chamber E-news letter, full of interesting Northland business news, send an email to info@northchamber.co.nz . For joining enquiries please phone the office on 09-4384771 or check our website at www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
This week – What is a commercial rating differential? Why does the Northland Chamber care about rating differentials? Why did the Chamber ask the Whangarei District Council to abolish the rating differential over the next 10 years in the recent submission to the long term community plan?
Whether you are a residential or commercial ratepayer, part of your rates bill includes general rates. The General Rates are those funds that are collected and are applied to activities that provide benefit to the whole community. These generally cover services where it is too hard to tax direct users.
The Rating differential is the loading that business and commercial premises have imposed onto their general rates. In Whangarei for instance the Rating Differential is 5.
This means that commercial or industrial users pay five times as much per dollar of land value than residential ratepayers.
Generally Local Authorities will use two arguments in justifying the differential
.
Firstly, commercial ratepayers can recover the GST on and deduct rates for income tax purposes but residential ratepayers cannot. The fallacy in this argument is that it doesn’t recognise that the business’s income is subject to tax whilst the imputed income of a residential household isn’t.
The second argument is that business and commercial ratepayers impose greater costs on infrastructure than residential properties. The cost of servicing commercial roading, parking and other utilities requires a higher standard of service. This argument misses the point that the commercial sector is used by everybody – for example the CBD is at least as much a benefit to the residents who go there to work, shop, eat and drink as it is to the businesses located there.
Why is it the organisations that are by their very nature creating wealth and employing people are hit the heaviest?
Remember that the majority of businesses in Northland (96%) are SMEs in other words employing less than 20 people.
Some areas have recognised the importance of the business sector. And in an effort to become business friendly, have abolished the commercial rating differential (eg. Kapiti).
Other areas have varying differentials based on the type of commercial zones eg. Wellington.
The Northland Chamber of Commerce advocates for the abolishment of the Commercial Differential and ask all distict and regional councils to consider a policy of abolishment over a 10 year period as a sign that we are a business friendly region.
Remember – to subscribe to the FREE fortnightly Chamber E-news letter, full of interesting Northland business news, send an email to info@northchamber.co.nz . For joining enquiries please phone the office on 09-4384771 or check our website at www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
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