Submission No 2 to NRC Annual Plan 2008

Submission to:

The Northland Regional Council.

Submission regarding:

Proposed Amendment in the Draft Annual Plan to the Northland Long Term Council Community Plan regarding the establishment of a council controlled trading organisation for the establishment of an infrastructure development authority

NRC Application Number

Nil

Submission by:

The Northland Chamber of Commerce and Industry Inc.

General Nature of Submission

In support of the amendment to the LTCCP to add the scope of work to the levels of service section viz; 5.2.8 – Undertake a detailed feasibility study of regional infrastructure priorities, establish a funding vehicle and develop funding strategies to enable major infrastructure projects.

The Northland Chamber of Commerce

The Northland Chamber of Commerce currently has 340 financial members that employ the equivalent of 4000 full time employees.

Since 1903, the Northland Chamber of Commerce has served the needs of the Northland business community through its public policy and advocacy initiatives and its business development programs and services.

The Chamber also works to ensure that Northland has a business-friendly environment where all businesses can grow and prosper. With this, also comes paying close attention to the quality of life the region offers our members’ employees and families. The Chamber works to make a difference in Northland’s future and to help Northland grow.

The Northland Chamber of Commerce generally favour well researched development projects that add 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.

1. The Northland Chamber supports this application as one that would practically support the growth of the region.
2. The Northland Chamber of Commerce prefers to see economic and infrastructure development happening on a regional level and the formation of a CCTO through our Regional Council would be the best way of facilitating this.
3. The Northland Chamber of Commerce believes that the Governance of such an organisation would benefit from recruiting the best people from the Government and Private sectors.
4. We are heartened to see that investigation into an infrastructure development authority will be undertaken within existing budget.

We do not wish to be heard on this submission

www.northlandbusinessawards.co.nz

“News of our win in 2006 reached suppliers & people well beyond Northland, boosting our profile within the industry as well.” – Sciadopities

‘Do it now… go to www.northlandbusinessawards.co.nz and register your interest in entering the 30^th anniversary Northland naturally business awards!’

The 2007 Northland Chamber of Commerce Northland Naturally Business Awards are an annual event run by the Northland Chamber of Commerce that honour Northland businesses who have demonstrated excellence in key business areas. They are also a celebration of the positive contribution local businesses have made towards the economic development and growth of Northland

This premier business event of the year provides opportunity for all businesses within the Northland area, no matter how large or small; to receive recognition for their achievements, and celebrate contributions that individual businesses have made to Northland, with winners guaranteed prestige, profile and recognition.

Last years Excellence in Retail winner Sciadopities said “As first-timers, we were initially a little alarmed at the written component of the entry process. However a call to the Chamber, and subsequent visit from one of the friendly team there, made us much more relaxed about things. We were assured that the judges were business people too, and that the expectation was really that entrants take a step back from their day-to-day operation and focus on what makes their business tick.’

“Winning our category was just great, as much as a positive affirmation for all the fabulous staff and customers who have faithfully supported us over the years, as it was for ourselves. As single-store, independent operators, we found the accolade added credence to our business, generating increased sales from curious new customers, hopefully now cemented into our “regulars”. News of our win reached suppliers and fellow nursery people well beyond Northland, boosting our profile within the industry as well.’

“We have the award hanging in a prominent position in the shop – a tangible reminder to keep up performance to meet both our own and our customers’ expectations.”

We encourage any business that is keen to look at entering to go to the official awards website and register for an entry pack to be sent out to you

This year we also have a keen team of Northland Chamber of Commerce members, business consultants and partners willing to guide you to putting an entry together…FREE of charge.

Remember…the competition offers entrants

• A chance to put your business in the spotlight with key local publicity
• Free, independent feedback and assessment from expert judges
• A useful benchmark of your progress and achievements against competitors and other sectors in the local business environment.
• Networking opportunities with other business leaders and professionals.
• Public recognition of outstanding business success and achievement
• A reward and acknowledgement of the contribution made by employees in growing and developing your business
• A means of engendering pride in your organisation
• An opportunity to focus on your business, its core strengths and the competitive advantages that make it a worthy candidate for business excellence
• On-going promotional opportunities for winning businesses to demonstrate leadership and excellence.
• An opportunity to receive on-going business mentoring assistance
• A high profile platform to showcase your products and services to a wider audience

For details check out www.northlandbusinessawards.co.nz website

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

Northland Chamber Submission re - Marsden Rail Link

Submission to:

The Northland Regional Council.

Submission regarding:

Proposed Amendment in the Draft Annual Plan to the Northland Community Plan regarding the Marsden Rail link

NRC Application Number

Nil

Submission by:

The Northland Chamber of Commerce and Industry Inc.

General Nature of Submission

In support of immediate action to designate and acquire land for the proposed Marsden Rail Link to the Deep Water Port

Decision sought from Regional Council

Looking for Regional Council to amend the LTCCP to release $3.34m to $10m funds to designate & acquire immediately the land required for the rail link in the first instance and begin a campaign to ensure Crown, Ontrack and Private Players to invest in the Designation / Purchase investment.

The Northland Chamber of Commerce

The Northland Chamber of Commerce currently has 340 financial members that employ the equivalent of 4000 full time employees.

Since 1903, the Northland Chamber of Commerce has served the needs of the Northland business community through its public policy and advocacy initiatives and its business development programs and services.

The Chamber also works to ensure that Northland has a business-friendly environment where all businesses can grow and prosper. With this, also comes paying close attention to the quality of life the region offers our members’ employees and families. The Chamber works to make a difference in Northland’s future and to help Northland grow.

The Northland Chamber of Commerce generally favour well researched development projects that add 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.

1. The Northland Chamber supports this application from an economic development perspective as one that will build Northlands Quality of Life. As far as Economic Development we feel the project will pay back by acting as the biggest catalyst for Development / Growth in the region.
2. From the Northland Chamber of Commerce survey with members carried out in 2006 one of the major roles that our members wanted to see was the encouragement of development projects and industry to the region and in particular the Development of the Rail Link as a priority for our Region.
3. In considering the Three Options outlined by the NRC proposed amendment the Northland Chamber of commerce favour Option 2 in the first instance followed quickly by the actions to ensure the other partners Crown and On track invest in the Project.
4. Although the cost of designating and acquiring property is high The Northland Chamber business community feel the long term risk to ratepayer’s funds is minimal as the investment can be recouped through the eventual selling of the land acquired should the project fail.
5. If the Project to Designate and Acquire land was amortized over a five year period the capital cost to each of the regions 80125 ratepayers would be .48c per week for $10m and .16c per week if partners contribute 66%
6. The Northland Chamber of Commerce believes that for projects like this to occur we need to be approaching Central Government and Agencies with a NORTHLAND INC. approach. This includes Regional & local Government, Industry and Business and advocacy groups all combining resources and speaking as one voice. The Northland Chamber commits to playing a pro-active role in lobbying and supporting the combined Northland Inc. approach when dealing with the Crown and its agencies.

Option one

Even though The Northland Chamber agree with the comment that Doing Nothing will not impact on NRCs Capacity to meet the present and future needs of the region in relation to any statutory responsibilities We believe that the LOST DEVELOPMENT opportunity will cost the region dearly in flow on development of the whole region.

Option 2 Designate & Acquire

Northland Chambers preferred option.

Designate / Acquire in the first instance

Then solicit crown / Ontrack

Our reasoning for this is we can ensure that the opportunity is not lost through third party reasons

Option 3 – Designate / Partnership with stakeholders

Option 3 would be the preferred option if option 2 was not acceptable to the ratepayer.

We would welcome the opportunity to be heard on this application

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 22000 globally.

Jeff Smith Chief Executive Officer Northland Chamber of Commerce 3-5 Hunt Street Whangarei 09-4384771 info@northchamber.co.nz

A Blueprint for Local Government…..

“In the next 10 years local authorities plan to spend more than $31billion, which is 2.4 times as much as they spent in the 10 years to 2005”

The Northland Chamber of Commerce through its accreditation to the NZ Chambers of Commerce and the Local Government Forum has recently released a manifesto for Local Government called ‘Democracy and Performance’.

This was drafted in conjunction with organisations such as Business New Zealand, Federated Farmers and the Business Roundtable

With the Local Government Elections being held later this year the Northland Chamber will be organising Debates for candidates to talk to our members on business and economic development issues. The Northland Chamber of Commerce, although being an apolitical organisation will always support good policy.

The following points were highlighted after research throughout New Zealand’s 85 local Government Authorities

Main point’s from the research shows;

· Local Government spending is Equivalent to over 3% of Gross Domestic Product. In terms of turnover and asset ownership many councils rank with New Zealand’s largest enterprises
· Ratepayers’ equity is a massive $67 billion or $16300 per capita. It is equivalent to double the taxpayers equity in Central Government
· During the next 10 years New Zealand Councils intend to spend $31 billion on capital expenditure. 2.4 times the amount in the 10 years leading up to 2005.
· In addition, the regulatory functions performed by councils have a significant effect on overall community welfare.
· The level of rates payable by households increased by 220% between 1986 – 2006. In the same period the CPI increased by 98%.
· The Business Sector pays around half the countries total rates bill, which has also increased at a disturbing pace. The level of rates that businesses pay is often significantly disproportionate to the level of services supplied to them.

The Manifesto for Local Government recommends the following;

· Local Government is a vitally important institution but the activities of some councils presently extend well beyond their proper role.
· Much local Government spending and regulation is inappropriate. The level of rates is excessive and their distribution is unfair.
· With such a great proportion of resources devoted to a sector of the economy that is not primarily focused on wealth creation this contributes to our low levels of per capita income as measured by the OECD
· A significant improvement in local Governments contribution must be a top priority as part of governments ‘economic transformation’
· Some council have neglected basic infrastructure such as Storm Water, sewerage and roading.
· Some councils have invested in Ports, Airports, Businesses, Farms and property investment which in our opinion should be left to the private sector
· Local Government should be undertaking those activities that can not be undertaken efficiently by volunteers, business, individuals and Central Government
· Core activities should be written into the Local Government Act 2002 and extra activities should be undertaken with the consent of the majority of ratepayers through referendum

The manifesto has a range of recommendations to assist local decision makers to in the decisions they make.
We will be releasing these as the local Body elections draw nearer however in the meantime A copy of the Manifesto can be downloaded from the front page of the Northland Chamber of Commerce website at www.northchamber.co.nz

It is also important to note that these findings and recommendations are the result of research through the combined New Zealand Local Authorities.

The manifesto works to influence those politicians in Central Government who dictate to local Government through legislation.

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

Provincial business optimism wavering…

(see northland results below..)

The ongoing difficulty provincial businesses are having recruiting skilled staff coupled with a massive increase in expectations of higher interest rates is threatening to put a brake on the rural economy.
For the first time in more than a year the level of overall optimism in provincial centre businesses has slipped in how they assess their own prospects in the period ahead even though optimism about the overall economy is marginally up compared with a similar survey three months ago.
Key findings of how respondents see their own business situation over the next six months indicates that 61% in the latest quarterly survey predict they will improve compared with 65% of this view last December.
In terms of the general situation 36% of respondents in the quarterly survey conducted last week expect the general situation to improve in the period ahead compared to 33% of this view last December.
However, the findings break with the trend over the past 18 months for the provincial survey and a parallel urban Auckland survey to show similar results and trends.
In the urban Auckland survey conducted at the same time as the provincial survey optimism generally and in individual businesses has continued to increase but unlike provincial areas the Auckland survey records a big jump in the number of businesses having difficulty recruiting suitable staff.
In urban Auckland 27% of Auckland businesses believe the general business situation will improve during the next six months of next year compared to 23% of this view last December. Similarly, in respect of how individual Auckland businesses see their own business prospects over the next six months, 55% predict they will improve which is a 2% increase on the 53% of this view last December.
The stand out feature of the Auckland urban survey is that the overall level of difficulty businesses are having finding skilled staff has jumped to 46% from 38% in a similar survey just three months ago. In contrast, provincial businesses report that the difficulty of finding skilled staff has eased, with 40% of this view in the latest survey compared to 44% last December.
Similarly, the Auckland survey indicates just 6% of business are finding it easier to recruit skilled staff – consistent with the Auckland survey for the past 18 months. In contrast, 11% of provincial businesses indicate that finding skilled staff is easier than three months ago, compared to just 4% of this view last December. However, comments about the difficulty of finding reliable staff continue to feature in the provincial survey feedback.
A stand out feature in both surveys is a massive jump in expectations of higher interest rates over the next 12 months:
· In the provincial survey, 82% of respondents expect interest rates to increase compared to 38% of this view last December.
· In the urban Auckland survey, 83% of respondents predict interest rates to increase over the next year, compared to 37% making this prediction last December.
Whilst continuing to be optimistic about the economy Northland Chamber of Commerce members say the signs are that increasing interest rates and skills shortages / gaps are beginning to affect the decisions that businesses make strategically and tactically.
This is unfortunate. While the strong self belief of many businesses continues to be reflected in the Chamber survey findings, if a business cannot recruit people with the right skill or attitude to learn a skill then the business has little prospect of being able to expand and grow. Without business growth, the economy and New Zealand’s prospects go nowhere.
The early signs of a down turn in confidence among individual businesses in provincial centres resulting from a combination of skill shortages and concern over higher interest rates is reinforced by the response to a question to identify what single factor is most limiting their ability to expand:
· At 34% compared to 27% last December demand is now clearly ahead of other factors as the most limiting to a businesses expansion.
· Labour on 19%, finance on 18% and capacity on 14% are the next highest constraints cited by respondents.
In many previous Chamber surveys, finance and capacity have been rated the most limiting factor preventing a businesses from expanding. These are now clearly overtaken by labour constraints. Comments of individuals show that the difficulty of recruiting both skilled and unskilled staff is now a deeply embedded concern of many provincial businesses.
Predictably, concern over higher interest rates has emerged as a factor cited by a number of respondents as a reason for putting expansion plans on hold.
The early signs of a down turn in confidence emerging sends a message to Government suggesting it needs a focused strategy to overcome the persistent shortages of skills and unskilled staff in New Zealand from Taupo north if it wants to secure a progressive, growth-led economy.
The Northland Chamber of Commerce will be presenting a seminar in May on the removal of obstacles in importing skilled labour to Northland.

Every Quarter the Northern Chambers of Commerce undertake a business confidence survey. This is a combined effort between all the Chambers of Commerce from Taupo to Northland. Whilst Northland still comparatively has a good level of business confidence benchmarked against Auckland the signs are that increasing interest rates and skills shortages / gaps are beginning to affect the decisions that businesses make strategically and tactically.

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

Northland business confidence up but wavering....

Northland business confidence is continuing to hold up against signs that persistent skill shortages, increased interest rates and a difficult terms of trade are starting to impact on the local economy.

Optimism in Northland about the immediate prospects for the economy also continues to be higher than in urban Auckland.

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 for Northland:

On the general business situation, 33% of Northland businesses expect the general situation to improve over the next six months – up from 27% last December - and compared to 27% in urban Auckland. The 33% in the latest survey is the sixth successive quarter that the level of business confidence has increased in regard to how Northland businesses view the economy’s overall performance.

However, in terms of individual business prospects, 48% of Northland businesses consider their prospects will improve over the next six months (58% in December), compared with 55% in Auckland.

Also 22% of Northland businesses expect business conditions to deteriorate over the next six months, compared to 13% in December. In Auckland, 21% are of this view.

On the side of optimism holding up, however, just 6% of individual Northland businesses believe their prospects will deteriorate over the next six months (8% last December), compared with 11% in Auckland.

On interest rates, 75% of Northland businesses believe they will rise over the next 12 months compared with 43% last December and 83% in Auckland currently of this view.

Commenting, Northland Chamber of Commerce head Jeff Smih suggested:

Part of the explanation for the improved optimism could relate to a flourishing local construction industry coupled with buoyant manufacturing in areas such as the marine trade.
At the same time with 80% of businesses small-medium enterprises, and almost half this group citing finance as the most limiting factor to the ability of the business to expand, the threat of higher interest rates is a concern.

An additional factor giving concern to businesses wanting to maintain growth plans is the persistent shortages of both skilled and unskilled labour.

Jeff Smith
09-4384771
ceo@northchamber.co.nz


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