29 May 2007


Should the cost of running the NZ Fire Service be funded from
Insurance Premiums
Rates
Taxation
Other
  
Free polls from Pollhost.com



Thanks once again Northland Businesses & property owners for subsidising those who choose not to contribute


The Government is looking at the way the Fire Service is funded.

At the moment, the service is funded through a levy charged on premiums for property insured against fire. For those who choose not to insure, the service is effectively free. The Government seems to be happy with this model and is proposing that will still involve collecting the levies from insurance premiums, but will widen the number of policyholders affected.

Chamber member and Northland Insurance leader Ahlers Insurance have pointed out some concerns in what has been proposed as options by Central Government.

Ahlers are preparing a submission in conjunction with the Insurance Brokers Association of New Zealand to Government on their proposed new fire legislation – “A framework for New Zealand’s fire and rescue services and their funding”.

The new framework is to replace existing legislation with a new Fire and Rescue Act.

To summarise the new Act would establish a framework to ensure that:

There is a comprehensive fire risk management system in New Zealand.
New Zealanders receive consistent and acceptable standards of service
fire response providers are able to integrate and co-ordinate their operations
there is an effective fire response organisation that is able to assist with non-fire emergencies
there is an equitable funding source for services

Sounds fair enough to us…..

The Funding would be based on calculating and collecting a levy on all property insured against any kind of loss or damage. The range of property would include:

residential dwellings, household and personal property
commercial and industrial buildings and their contents
industrial plant and equipment
stocks of raw materials and other goods
forests and agricultural crops
motor vehicles

What draws our attention is that other changes include the Fire Levy being based on Replacement value (even if your property is insured for indemnity value)

Also…….for multi building owners insuring under a first loss policy the requirement may be to impose the levy on the combined value of all property.

These proposals have the potential to significantly increase the amount being paid through your insurance policies.

Under the proposed changes, costs will increase putting additional pressure on businesses. We also believe that the proposed system is not equitable and put simply; it is a tax which places sole obligation on responsible property owners who elect to insure themselves.

Other solutions are to centrally fund through Taxes (Like Police) or locally through Rates. These options appear to be discounted in the meantime.

Ahlers are pro-actively soliciting feedback on the framework. If you elect to ignore this then your business could feel the impact of these changes in your future premium notices.

The Northland Chamber through the NZ Chambers of commerce will also be submitting to the Government to adopt a fair way of financing (for example through rates)

Either contact Ahlers now on 430-4870 or Go to our website (http://www.northchamber.co.nz/) and complete our one question snap poll which we will present to Ahlers for their submission

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 http://www.farnorthchamber.co.nz/

You can have a say on this by going to the Northland Chamber of Commerce Feedback website on http://www.northchamber.blogspot.com/



17 May 2007

“What should you do if your business is constrained by a skilled labour shortage: - Fester? Or Fix It?”

The Northland Chamber of Commerce in Conjunction with Malcolm Pacific are holding a Short informative and interesting lunchtime Seminar on the 23rd may 2007 to assist businesses in recruiting skilled staff.

Aussie Malcolm will present a short presentation on how painless and cost effective it can be to recruit staff internationally. Aussie Malcolm says ‘there is a significant, low cost, pool of skilled labour available out of the migrant market to which employers deny themselves access because they don’t know how do go about tapping in to it. A new skill-set is required and if that is understood, the process can become easy, timely, and inexpensive.,

There are three ways in which we can increase the supply of skilled people to the Labour Market. We can MAKE – Educate and guide our younger citizens into the relevant skillsets, BUY – through importing skilled migrants or FIX - Upskilling the work force we have.

Chambers of Commerce all over New Zealand are telling us that a shortage of skilled labour has been identified nationally as a major restraint on business growth. Malcolm Pacifics Seminar is obviously an attempt to ‘BUY’ a solution which can provide Northland Business with some realistic solutions today

‘In a provincial centre the problems become compounded. Lack of skilled staff hampers growth; but recruiting in a skill-short market itself creates significant extra one-off direct costs; while the incentives that may be needed to attract staff can fundamentally and permanently change wage relativities and internal cost structures’.

Hon. Aussie Malcolm will be lead presenter, supported by a team from his Auckland office. Malcolm Pacific has worked out of Whangarei for a number of years and Aussie himself lives in Tutukaka where he is major shareholder in award winning Dive! Tutukaka, commuting weekly between, as he puts it, “the biggest and the best two cities in NZ”.

The format will be a workshop directed towards giving employers the skill sets that will enable them to solve skill shortages painlessly. The Seminar is to be held on 23rd May.
at 12 oclock. Lunch provided, workshop free. Venue: Northland Cricket Pavilion, Okara Drive.Whangarei.

All Northland Businesses are invited to attend this seminar, including Councils, Government Agencies and anyone that would benefit from skilled labour.

Contact Janette at the Northland Chamber of Commerce 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 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

11 May 2007

Submission to:
The Whangarei District Council
Submission regarding:
2007 – 2008 Draft Annual Plan – 20/20 plan

Submission by:
The Northland Chamber of Commerce

Decision sought from District Council
To implement the 20/20 design principles in all decisions made regarding the future look and feel of the Whangarei CBD

The Whangarei Plus CBD Guideline Development 20/20 Plan

The Northland Chamber of Commerce congratulates the Whangarei District Council for having a vision.
We applaud in particular, the leadership shown by this council in ‘putting a concept’ out there and point out for special commendation the Design lead Approach to the plan.
We have commented below on various aspects of the plan and included principles that our members would like to see. Our members appreciate the opportunity to influence the look of the Whangarei CBD so our members can operate in a business-friendly environment where all businesses can grow and prosper.

Northland Chamber

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.

Development Principle

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.

Survey of Northland Chamber of Commerce Members


A recent survey in August 2006 asked Northland Chamber of Commerce members to rate issues by importance and impact on themselves, their businesses and Northland. Our members outlined two Whangarei specific Issues


The Future of the Whangarei CBD – 20/20 Plan
Whangarei Parking & Traffic Flows

Submission for Consideration
Section 1 – Introduction:
Outlines the processes used thus far. Also outlines some of the current issues.
Our Submission
The Northland Chamber of Commerce is happy to see the 20/20 Vision fit in with the WDC ‘creating the ultimate living environment’ vision. Also applaud the Design lead Approach to the plan.


Section 2- Analysis:
Our Submission
Nil


Section 3 – Concept Framework: Outlines themes and gives us a vision of what the CBD could look like in the future.
We would like to comment on this part of the 20/20 plan using the headings in the Concept Framework plan in Section 3.
More Green Connections and Spaces
Our members support any concept which enhances the CBD and the feel of the CBD.
Physical Connections to link to Water
As Water and Coast is one of our natural attributes the Chamber of Commerce supports concepts of making the most of our coast and Waterways. Any concept which draws people to ; and removes obstacles in drawing people to the water is supported by the Chamber of Commerce
The Chamber supports the concept of designing better physical access to the water.
Introduction of Residential mix into CBD
The Chamber of Commerce would support this concept after careful consideration to Traffic Flows and Parking is given.
One concept from Chamber of Commerce members is to look to the perimeter of the CBD to give people walking access to the CBD.
The Chamber of Commerce has Quality of Life aspirations for Northlanders and as such would prefer to not see High Density accommodation but to replace this with medium density living and in doing so preserve / promote a good quality of life.
Strategic Location of new Focal Points / Developments / Facilities
Chamber members considered that there was not enough information on the specifics of focal points / developments / facilities. To make an informed comment on these, however;
The concept of having focal points in general was supported once again contingent on parking & traffic flows.
Extend CBD Activities into evening and weekend.
Members supported the concept of having a vibrant and alive CBD and although the concept has been raised in the CBD development plan and were sure that business / commerce would lead this concept with local authorities adding to this by removing or altering any minor legislative / compliance obstacles.
Create a series of pedestrian scaled areas
Our understanding of Pedestrian Scaled areas is those areas that lend themselves for pedestrians as opposed to motor vehicular traffic. We presume that the Cameron Street Mall is a pedestrian scaled area. The Chamber would support a series of pedestrian scaled areas as we feel if done with good design the CBD could become a destination
Introduce new building typologies that encourage a greater mix
Our members would encourage a greater mix of building type however would encourage town planners to make the type of building ‘fit’ the precinct that the building is proposed in.


Section 4 – Town Basin:
The Whangarei 20/20 plus plan outlined 4 concepts for the Town Basin area.
Our Submission
The Northland Chamber of Commerce would encourage development which enhances the special character of the Town Basin. Of the four options outlined in the 20/20 plus plan the Northland Chamber of Commerce favours any concept which will
Add to the feel and vibrancy of the city
Draw people to / from CBD
Protect the nature and feel of the town basin area.
Line up with the proposed precinct areas
The Grand Canal Concept. The Chamber of Commerce fully supports this concept as one that would add vibrancy and give Whangarei a special character. This support would be contingent on the Whangarei Ratepayer not being financially responsible for
The development or;
The maintenance of such an iconic feature
The Chamber of Commerce would support, however, ratepayers’ funds being used in designating land use and facilitating / brokering private funds to bring this concept to fruition.

Section 5 – Development Proposal:
Our Submission
The Northland Chamber of Commerce recognises that the Aspirations of the Northland Chamber are well catered for within the 20 / 20 development plan. With that in mind the Chamber would generally support development plans which add to our members’ business success, profitability and the enhancing of Northland as a great place to live.

General Submission Principles

The Northland Chamber of Commerce in line with NZ Chambers of Commerce does advocate that Local Government should not be involved in ownership of non essential infrastructure property and would see future development of the CBD as a good reason to release holdings in land after placing covenants to protect and promote the design principles in the 20/20 Plan.
We encourage local communities to fully explore the PPP (Private Public Partnership) model of development for community assets
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

Submission to:
The Whangarei District Council


Submission regarding:
2007 – 2008 Draft Annual Plan
WDC Application Number
N/-
Submission by:
The Northland Chamber of Commerce
Decision sought from District Council
To Commit to reducing and eventually removing the commercial differential rating system
To budget a CBD Mainstreet Levy for the promotion and marketing of the CBD or allocate funding from the CBD ratepayers differential rates to be used for this purpose.

The Application
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.

From the Northland Chamber of Commerce survey with members carried out in 2006 one of the roles that our members wanted to see was an advocacy role in removing the differential rating system.

1. Rating Differential – General Rates

The Northland Chamber of Commerce agrees with the following principles in deciding on the rates take;

The Rating System should be simple and transparent

User charges should be adopted for all services where there is a private benefit and the user/beneficiary can be identified and the service quantified either directly or by proxy
A Uniform Annual General Charge should be adopted to pay for the costs of those services which benefit each ratepayer equally (such as democracy, parks and sports facilities) and to pay for those private benefits which accrue to all ratepayers equally but are not practical to collect separately
Public Benefits should be paid for by an undifferentiated rate based on Capital or Annual Value.
Targeted Rates (eg Mainstreet) may be applied to fund specific activities or where there is a need to fund specific programmes in specific areas Ability to Pay issues should be addressed, not through a distortion of the rate structure, but by transparent specific measures such are rebates, remissions and postponements.

The Northland Chamber of Commerce believes that it is It is not the job of Local Government to undertake wealth redistribution. That is the responsibility of Central Government and the same redistributive rules in New Zealand should apply uniformly through the country. The value of a property or its use is not a good indication of ability to pay.

The Northland Chamber of Commerce also strongly disputes the assertions made by some local authorities that businesses are rated more due to a greater ‘ability to pay’. The vast majorities of New Zealand businesses are very small (around 85% employ fewer than five people) and most have very low taxable incomes. Statistics from Inland Revenue indicate that 77% of companies have no assessable income at all, while another 15% earn less than the average wage. Rates differentials are therefore an onerous burden on the business sector. Unfortunately, however, it seems that businesses are an easy target from which to raise revenue, simply because there are far more residential ratepayers (i.e., voters) for councils to be concerned about.

Another argument states that businesses impose greater costs on local authority infrastructure than residential properties. This argument misses the point that the commercial sector is used by everybody – example the CBD is just as beneficial to those that go there to work, shop, eat and drink as it is to the businesses located there.

Rates differentials are also unfair on businesses competing with those operating as home-based businesses. Specific examples include that of those in the accommodation sector paying a commercial differential whilst those B&B operators paying residential differential only or an online retailer operating from a residential premises.

While local authorities should be able to tax a clearly identified set of ratepayers who largely benefit from particular public goods or services (through targeted rates), safeguards need to be in place against the abuse of powers to discriminate against classes of ratepayers.
We note that the Rating Differential on Commercial and Industrial Premises within the Whangarei District is 5 times the residential benchmark rate. This is among the highest differential rates that the Chamber has come across in New Zealand.


Wellington 4.2
Auckland City 1.6
Christchurch 2.3
Wanganui 1.7
Whangarei 5

Commercial rate differentials

In general the Northland Chamber of Commerce advocates on behalf of its members for the differential in this case to be reduced over the long term leading to the sharing and distribution of the rates burden among all Whangarei General Ratepayers. Therefore the finalized Annual Plan should set out to include policy into the LTCCP which reflects the following outcome – ‘the phasing out of the Commercial differential rating over the next x years’

We also note that in setting the differential rate the Local Authority is required to justify the differential We have not been able to locate this in the LTCCP 2006 – 2016.

The Northland Chamber of Commerce would like to make it very clear that our members find a differential system unfair, not transparent, unjustified and feel that the Whangarei District Council are taking advantage of the fact that there are less Commercial Ratepayers v Residential

We feel that a move in this direction would send a clear message that Business is welcome in the District.


2. CBD Business

In the absence of a reduction of the differential the Whangarei CBD Business Committee of the Chamber of Commerce CBD Committee have identified a need for a coordinated approach to Promotions and Marketing of the Whangarei CBD. Other areas strike a special rate or levy however we feel that reallocating a $ amount from the existing differentiated commercial rates from properties in the CBD would go some way to justifying the differentiated rate on these particular premises.


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