ADVOCATE COLUMN 3rd WEEK MARCH 2011
The recently released “Local Government Options for Northland” report prepared by Sir Peter Trapski and Dr Don Brash makes interesting reading and offers something for everyone. It supports the Whangarei District Council in undertaking the study saying that it has been a timely exercise and one that will well place Northland for any future reviews around local government reform.
The authors both suggested that change at sometime in the future was probably both inevitable and necessary. This was hardly surprising given that the status quo has been in place for some 20 years and as with all forms of government, change over time is to be expected. They differed in their opinion as to what was the optimum form that such change should take and on a matter of process Dr Brash noted that it was very likely the authors of the McKinley Douglas report were encouraged to modify the recommendation made in their draft report that a single unitary authority was the most appropriate form to be adopted
It was also interesting to note Dr Brash’s comments in regards to the role that the former Rodney District may play in any future reform of Northland’s local government and the potential of not one or two but three unitary authorities. It was also noted that the empowerment of Northland’s many communities and the stewardship of the Kaipara Harbour would also require a great deal of work to resolve.
Both authors noted there was very little desire or interest from the wider community to change the status quo. This was in part expressed by Sir Peter in saying that local government should have regard to the views of submitters and “must try other measures before giving further consideration to restructuring”. These other measures generally related to collaboration and co-operation.
There is an obligation on all local authorities to collaborate and co-operate however Sir Peter stated “sadly we saw little evidence of that”. There has been a positive shift in the willingness of Northland’s councils to collaborate in recent times but there is still range of options of shared costs that could be explored. Comments were made by the authors of the need to distinguish between cost to individuals and cost to council. I would suggest that all Northlanders should read this report and then examine the respective council’s behaviour over the coming year and see what changes this report brings about in regards to them adopting “other measures”.
16 March 2011
15 March 2011
LEADER COLUMN MARCH 2011
How to create economic growth is not a new question. Since at least the late 1980’s (and probably at lot earlier), government, economists and the wider business community have given a great deal of time and energy examining ways to achieve growth. During this period, on average it would be hard to argue that any single policy has resulted in a quantum change in our economic performance.
At a regional level this is certainly the case. It is difficult to see the establishment of a high number of companies with large turnovers developing here in the near future. Without such companies many believe that it would be difficult to develop a vibrant regional economy. Yet without a vibrant regional economy Northland’s relative regional performance measured against various socio-economic indicators will continue to be poor.
Much of what has been done in the past has not resulted in significant growth. The reality is that for Northland’s performance to improve, it will require growth in an order that is more than just incremental. We need to look at those things that we have control of changing and implementing. One such thing is improving our business environment at a regional level in a manner that will encourage and empower Northlanders to achieve their economic potential.
What sort of change is going to drive people to start up and grow businesses in Northland? It is often said that many business people are risk takers, particularly those who we consider to be innovators or entrepreneurs. In truth we are probably assigning a label to this group unfairly. They often have a passion for, and knowledge of the product or service they wish to make or manufacture, that when accompanied by some rigorous analysis can mitigate much of the risk that many observers would perceive is involved in that venture.
We as a community should be ensuring that we create an environment that offers support to such people at all levels from the time they start up until the time they decide to pass their business on to others and take on new challenges. I would suggest that everyone in our region examine this year’s council annual plans and ask if these plans will create such an environment and then make submissions to their respective councils accordingly. These people can generate new wealth if we all do what is within our spheres of influence to remove unnecessary barriers or to provide more certainty around outcomes.
How to create economic growth is not a new question. Since at least the late 1980’s (and probably at lot earlier), government, economists and the wider business community have given a great deal of time and energy examining ways to achieve growth. During this period, on average it would be hard to argue that any single policy has resulted in a quantum change in our economic performance.
At a regional level this is certainly the case. It is difficult to see the establishment of a high number of companies with large turnovers developing here in the near future. Without such companies many believe that it would be difficult to develop a vibrant regional economy. Yet without a vibrant regional economy Northland’s relative regional performance measured against various socio-economic indicators will continue to be poor.
Much of what has been done in the past has not resulted in significant growth. The reality is that for Northland’s performance to improve, it will require growth in an order that is more than just incremental. We need to look at those things that we have control of changing and implementing. One such thing is improving our business environment at a regional level in a manner that will encourage and empower Northlanders to achieve their economic potential.
What sort of change is going to drive people to start up and grow businesses in Northland? It is often said that many business people are risk takers, particularly those who we consider to be innovators or entrepreneurs. In truth we are probably assigning a label to this group unfairly. They often have a passion for, and knowledge of the product or service they wish to make or manufacture, that when accompanied by some rigorous analysis can mitigate much of the risk that many observers would perceive is involved in that venture.
We as a community should be ensuring that we create an environment that offers support to such people at all levels from the time they start up until the time they decide to pass their business on to others and take on new challenges. I would suggest that everyone in our region examine this year’s council annual plans and ask if these plans will create such an environment and then make submissions to their respective councils accordingly. These people can generate new wealth if we all do what is within our spheres of influence to remove unnecessary barriers or to provide more certainty around outcomes.
03 March 2011
ADVOCATE COLUMN 1st WEEK MARCH 2011
When the performance of our regional economy is discussed, generally the importance of increasing Northland’s productivity is highlighted. Productivity is often measured in terms of gross domestic product per capita or income per capita. Looking at New Zealand’s economic and business profiles indicates what a challenge this presents. New Zealand’s low productivity is further reflected in the fact that an overwhelming majority (97 percent) of businesses is small to medium sized enterprises yet they account for only about 40% of our economic output.
In part this has to do with the nature of these businesses, which by necessity are forced to focus on the day-to-day running of their operations and often with very limited resources. These conditions result in business decisions being reactive rather than strategic. Yet while there are issues relating to increased productivity that can be resolved by way of improved training and experience over time, another factor critical to increased productivity and sustainability is governance.
Although some New Zealand businesses have good governance models, most do not. This is hardly surprising since a large percentage of them are small scale of family businesses. When family businesses do succeed, it is often due to an in-depth knowledge of the sector in which they operate and a long-term view.
It is when developing a long-term view that good governance is critical, it provides a framework for shared objectives, planning for growth and most importantly developing a succession pathway for future generations or other stakeholders. Lack of good governance is reflected in the fact that only a very small percentage of family businesses pass to a fourth generation.
In simple terms it is about deciding where the business owner wants to be in the future and implementing a series of actions that will enable this to occur. In doing so the business owner is forced to identify what opportunities they can take advantage of and what factors need to be mitigated or remedied to ensure their long-term goals can be achieved.
Governance through diverse and capable board members is not the exclusive domain of large business. All business can benefit from it and all business should examine developing governance models appropriate to the scale of their enterprises and aspirations. Through their networks business groups such as the Northland Chamber of Commerce provide the opportunity for small businesses to access a capable and diverse range people who can assist in these roles.
When the performance of our regional economy is discussed, generally the importance of increasing Northland’s productivity is highlighted. Productivity is often measured in terms of gross domestic product per capita or income per capita. Looking at New Zealand’s economic and business profiles indicates what a challenge this presents. New Zealand’s low productivity is further reflected in the fact that an overwhelming majority (97 percent) of businesses is small to medium sized enterprises yet they account for only about 40% of our economic output.
In part this has to do with the nature of these businesses, which by necessity are forced to focus on the day-to-day running of their operations and often with very limited resources. These conditions result in business decisions being reactive rather than strategic. Yet while there are issues relating to increased productivity that can be resolved by way of improved training and experience over time, another factor critical to increased productivity and sustainability is governance.
Although some New Zealand businesses have good governance models, most do not. This is hardly surprising since a large percentage of them are small scale of family businesses. When family businesses do succeed, it is often due to an in-depth knowledge of the sector in which they operate and a long-term view.
It is when developing a long-term view that good governance is critical, it provides a framework for shared objectives, planning for growth and most importantly developing a succession pathway for future generations or other stakeholders. Lack of good governance is reflected in the fact that only a very small percentage of family businesses pass to a fourth generation.
In simple terms it is about deciding where the business owner wants to be in the future and implementing a series of actions that will enable this to occur. In doing so the business owner is forced to identify what opportunities they can take advantage of and what factors need to be mitigated or remedied to ensure their long-term goals can be achieved.
Governance through diverse and capable board members is not the exclusive domain of large business. All business can benefit from it and all business should examine developing governance models appropriate to the scale of their enterprises and aspirations. Through their networks business groups such as the Northland Chamber of Commerce provide the opportunity for small businesses to access a capable and diverse range people who can assist in these roles.
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