northland chamber

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