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

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

Wow have you seen what’s happening at NorthTec…

I was privileged to attend the opening of the New North Tec Interactive Lecture Theatre and teaching Complex last Friday. This state of the Art complex provides Northtecs teaching staff and students a state of the art facility which is world class when comparing to regions of similar size.

We were given a demonstration of some of the technology available to North Tec such as Electronic White Boards, Video Conferencing and tools that enable tutors to teach a lecture theatre of people without actually being physically present. Also on display was the new interactive audience survey system which collated audience opinion in a split second through the use of a ‘remote control’ type tool connected to the electronic whiteboard. A bit like you see on ‘who wants to be a millionaire’

North Tec and the Northland training Alliance are also breaking new ground in the opening of a new Health and Safety Training Centre in a few weeks time. This facility will be key in providing ‘standardized, consistent and quality’ health and safety in employment for staff across manufacturing, processing, construction and maintenance industry sectors.

North Tec also surprised us last year with the announcement of being selected as one of Microsoft’s few international sites as Software testers for the 2007 Office system. This was an excellent accolade and confirmed Northtecs growing reputation in technology application. The other news from last year was the Campus in Raumanga becoming a full wireless zone.

In his opening address last Friday Mark Farnsworth from the Northland Regional Council alluded to Education as being a main infrastructure component of a region alongside those other infrastructure issues such as Transport, Port Development, Rail link, Broadband and Waste Water etc.

Northlands future depends on achieving long-term, sustainable economic growth, creating quality jobs, and positioning the region to compete in a global economy. North Tec has made many contributions to the region, partnering and participating in regional economic development efforts.

These efforts are assisting Northland to diversify from a primary based economy to a ‘knowledge’economy reliant on human resources in numerous industries such as Engineering, Tourism, healthcare, and extending into the primary industries.

We see North Tec as being a crucial component of the Education infrastructure in Northland. Whether it is establishing Centres of excellence such as the Health and Safety Training centre in conjunction with Industry or the quick response to ensure that Training and education in Northland is relevant to today’s economy.


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

Marsden B.....

The Northland Chamber of Commerce Acknowledged today’s decision by Mighty River Power the decision of MRP to not continue with the Marsden B project

Chamber CEO Jeff Smith said that whilst this decision is obviously disappointing as this will mean the loss of potential direct consequences such as Job Creation and development opportunities as well as indirect opportunities - we acknowledge that MRP’s decision was based on the company being able to tap ‘easier’ forms of energy such as increased Geothermal resources and the granting of consent to begin construction on a large Geothermal plant at Kawerau.

Jeff Smith said that with regards to future power supply in Northland it would be nice to know that we could guarantee re-locating energy intensive businesses security that for the next 10 years that there would be reasonably reliable electricity at a reasonable cost'

We appreciate that overall the demand for power is increasing on an annual basis whilst more restrictions are being imposed in an effort to provide clean renewable resources

Jeff Smith said the Northland Chamber of Commerce had noticed the state of the future of New Zealand’s power supply were now being determined by the following factors


New Government Energy Strategy

The Government is currently working on an energy strategy that allows for the phasing out of non- renewable energy resources over time with the ultimate aim of a reliable and resilient system delivering sustainable, low emissions energy to the Country

Climate Change

The New Zealand Government has embraced the Climate Change theory that man made emissions has a mark able detrimental effect on the environment.

Security of Supply issues

We face two major long-term energy challenges. The first is responding to climate change and tackling carbon emissions from our energy production and use. The second is delivering secure, clean energy at affordable prices to support economic development, while being environmentally responsible

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.

Whilst the Northland Chamber of Commerce publicly supported the refiring of the Marsden B power plant we also acknowledge MRPs decision based on the amount of generation from other projects such as Kawerau and the commissioning of extra Geothermal capacity

The Northland Chamber of Commerce is concerned with future security of power supply for the following reasons

o 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
o The effect on the global environment of some types of power generation
o The scarceness of some Raw fuel supplies (Generation) and the deteriorating infrastructure that carries power from the generation to the end user (transmission).
o 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.
o The ability to sustain and expand existing Industry and attracting new Industry is dependent on a reliable and affordable energy supply.
o 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.


Its pleasing to note that Power retailers and the Northland Chamber of Commerce will be presenting a seminar on these issues, later this year to ensure our members are fully informed on the consequences to their businesses


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.

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

Northport - Developing Trade Opportunities for Northland


A new regular service linking Northland with Australia and the Arabian Gulf, operated by Pacific Basin Shipping, adds to a growing list of international destinations available through Northport at Marsden Point.

Both Breakbulk and Containerised options are available to these markets for Northland’s Exporters/Importers.

The Chamber of Commerce supports Northport as ports can be major economic engines for regional economies, creating international business opportunities that generate jobs.

Overseas Studies show that Ports have impacts on Direct & Indirect Employment opportunities, Direct and Indirect purchase of supplies and Tax / Rate takes

In Northland we have the added benefit of the Port being able to act as a catalyst in developing areas such as Marsden Point and Real estate development opportunities in the area. Add on to this a prosperous port adding to the case for increased infrastructure development spend on necessities such as roading and Rail and we have a good reason to be fully supportive and have a stake in a successful port operation in Northland.

So the message is tell every business person about the new shipping schedule at Northport.

Imagine a direct link to the Middle East without having to go through Auckland or Tauranga Ports!

This is a good example of living locally and trading globally. Northland Businesses can also subscribe to the Chambers Trade Opportunities e-letter. We receive hundreds of inward and outward opportunities every year from international chambers of commerce and can forward these to Northland Businesses as we receive them. Many of these come from the Middle East

2007 has also been designated Export year by the NZ Government so the announcement that Northport is now offering a regular shipping service to / from the Middle East obviously opens up new opportunities not only for those producers of bulk cargo (Wood etc) but for anyone looking to expand their markets.

Some interesting facts about exports. Exports make up about 30% of our GDP, and this has remained pretty consistent for the last 25 years. During the same period most other OECD countries have expanded their export base, and in many cases their performance against GDP is twice that of New Zealand. Across New Zealand, only about 12,500 New Zealand businesses export. Of these, the top 359 exporters generated 85% of our exports by value. Fonterra alone accounts for 20% of our total exports per annum.

Other Destinations served by our local port include, China, Australia, Japan, Korea and Philippines.

A full schedule of international ports serviced from Northport, including call frequencies, indicative transit times and contact details can be obtained from the Northland Chamber of Commerce Website by clicking the link from the front page. (www.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

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

Northland Chamber Changes Leadership

At the Northland Chamber AGM on Wednesday night a new board and leader was elected by members. Retiring Chairperson Stephen Gillingham is standing down to pursue ambitious business plans and has been replaced by new President Tony Savage. Tony brings to the Chamber both practical legal advice and knowledge, and hands on business experience.
Tony is a solicitor working at the Whangarei firm of Urlich McNab Kilpatrick, honorary solicitors for the Chamber. He has strong desire and vision to make the Chamber relevant for business people of Northland.

Apart from legal skills and advice, necessary on any Board and for Chamber activities, Tony brings practical business experience as a Manager and Owner of a small New Zealand business. He was also CEO of a nation wide New Zealand company for five years.

Tony is a Trustee of Whangarei Intermediate School, an active member of a Whangarei Rotary Club, is learning to fly gliders and microlights and is qualified Dive Master.

As a Board Member Tony will continue developing a Chamber that works for its Members, is relevant and will assist in lobbying Local and Central Government on Northern business issues.

Tony can assist with access to Central Government contacts and enjoys the confidence of professional relationships at Local and Regional Council level.

Other new Board members are Wendy Coutts from Northern Life Brokers, Darren Mason from Northpower and Terry Sage from Business Coaching New Zealand. The other retiring board member is Dr. Nicky Van Der Bergh who has relocated.

Chamber CEO Jeff Smith says that the new board brings a huge amount of new skills that will be utilised to deliver the Chambers mission of “improving members profits.”

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

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

Northland Chamber Changes Leadership

At the Northland Chamber AGM on Wednesday night a new board and leader was elected by members. Retiring Chairperson Stephen Gillingham is standing down to pursue ambitious business plans and has been replaced by new President Tony Savage. Tony brings to the Chamber both practical legal advice and knowledge, and hands on business experience.
Tony is a solicitor working at the Whangarei firm of Urlich McNab Kilpatrick, honorary solicitors for the Chamber. He has strong desire and vision to make the Chamber relevant for business people of Northland.

Apart from legal skills and advice, necessary on any Board and for Chamber activities, Tony brings practical business experience as a Manager and Owner of a small New Zealand business. He was also CEO of a nation wide New Zealand company for five years.

Tony is a Trustee of Whangarei Intermediate School, an active member of a Whangarei Rotary Club, is learning to fly gliders and microlights and is qualified Dive Master.

As a Board Member Tony will continue developing a Chamber that works for its Members, is relevant and will assist in lobbying Local and Central Government on Northern business issues.

Tony can assist with access to Central Government contacts and enjoys the confidence of professional relationships at Local and Regional Council level.

Other new Board members are Wendy Coutts from Northern Life Brokers, Darren Mason from Northpower and Terry Sage from Business Coaching New Zealand. The other retiring board member is Dr. Nicky Van Der Bergh who has relocated.

Chamber CEO Jeff Smith says that the new board brings a huge amount of new skills that will be utilised to deliver the Chambers mission of “improving members profits.”

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

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

Northland Booms……It’s great to be at the top of the country and top of the economy

Commenting on the ANZ National's Dec quarter economic survey, Northland Chamber of Commerce CEO, Jeff Smith says that it Northlands time to bloom.

‘We have known for a long time that Northland is a great place to live, work and play. In economic terms the region has enjoyed one of its most sustained growth periods in many years - Business confidence is high, unemployment down, property market buoyant with rising values, crime down, in-creased commercial investment, but seeing the official data has been met with a resounding seal of approval from Northlands Business Community’.

Like other provincial centres in New Zealand Northland had been hit particularly hard in the years following1984 with the deregulation of the economy. In 2005 BERL ranked the three territorial areas within the Northland Region 40th, 44th and 63rd out of the 76 Local Districts within New Zealand in the Regional Performance Indicators index.

Jeff Smith says that the This news tied in with the Quarterly Northland Chamber Confidence survey carried out at the end of December 2006.Business confidence is continuing to rise according to Chamber of Commerce members in the latest Quarterly Poll. 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 were; 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 (2005) 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 in 2007.
Part of the explanation for the improved optimism and positive statistics in the ANZ Data are

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.
Northland Unemployment is way down – therefore more people earning
Although Skills Shortages restrict the growth of the economy the other side to that is full employment starting to push up earnings
Northland Business Confidence is up
The Current flow of incoming net migration in the December quarter was still way above reserve bank forecasts and this is driving Housing and retail spending – The majority of these settle in the 4 main centres but anecdotally Northland is getting more than its fair share in proportion to the population
Commercial Car sales were up in the quarter ending December 2006
commodity prices stay firm

The Challenge is to bring a level of sustainability to the Northland Economy to ensure that Northland continuers to prosper in the following few years said Smith

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

Local Government Sale of Leasehold land

• 
  The Facts as we understand them are
  
  The Whangarei District Council owns a large amount of land which it leases to various commercial concerns
  
  The revenue from the lease of this land is used to subsidise rates
  
  A private business wishes to purchase a property which belongs to the District Council on which there is no current signed lease.
  
  We understand there is policy concerning leasehold land which states that leasehold land does not normally get sold however provides guidelines for the exception to this rule
  
  As far as the Northland Chamber of Commerce can ascertain there are 3 issues concerning any sale of leasehold land
  
  The issue of Leasehold land being put up for sale (or not)
  Economic development potential as a good reason for selling the property
  The transparency of the offer and acceptance for the property to ensure that the return on the property is the maximum available
  
  Issue 1 - The Northland Chamber of commerce suspect that having large amounts of land designated as leasehold stifles development opportunities. It would be our preferred option to see all leasehold land becoming transformed into a form which would promote maximum investment in the district
  
  Issue Number 2 – we will always applaud a local authority that assists business to grow, prosper and develop as long as there is a net gain to the community & supports economic development
  
  Issue Number 3 –When it comes to selling ratepayer / taxpayer property the chamber will always support an open and transparent bidding process i.e. Public Tender for the sale (open or closed)
  
  
  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/
  

We’re at War…the global war for Talent & Skills…….


If New Zealand wants to remain competitive in a global marketplace where the majority of workers earn a fraction of the salaries paid here, we must have the most competent and innovative workforce possible. Yet New Zealand has one of the worst records for skill shortages – we are near the top of the OECD skill shortages list and the gap is widening. We now recognise that our widening skills gap is one of the major barriers to our growth as a competitive nation. The skills gap has resulted from a shift in our economy. The number of jobs for the unskilled has declined steadily over the past several decades and we are seeing an increase in semi-skilled jobs. In the next ten years, there will be a huge growth in skilled jobs as more semi-skilled jobs are automated. Impacting on the problem is the rapid development of technology, the increase in technology based jobs and the development of new industries based on technology advances. Add to this, the expected change in demographics in the years ahead as the number of people in the workforce declines relative to those above the traditional retiring age, and it is obvious that we must find a way to prepare all our population, including those with disabilities and limited English proficiency, to become contributing members of the work force.We cannot afford to delay our response to the problem, since as we seek to be more productive as a nation we will have to concentrate even more on the skills of our workers. We need to focus on the issue from many angles, both regionally and nationally, both short and long term, from an education and an industry perspective, and from the perspective of individual employers and employees.The government is currently consulting on one part of the solution. They have released a discussion paper outlining possible goals and priorities for New Zealand's tertiary education system. The feedback from this consultation will be used to develop the next Tertiary Education Strategy (2007-2012).

We agree that the goals of educational success for all New Zealanders through lifelong learning; creating and applying knowledge to drive innovation; and strong connections between tertiary education organizations and their communities, will help us achieve the economic transformation to a high income, knowledge based economy.However the Chamber believes that a national tertiary education strategy needs to be underpinned by a regional tertiary education strategy. This would identify what the regional needs are regarding short and long term skill gaps, and provide a way to align regional requirements with national priorities and direction. The strategy would also outline what areas of research are required and suited to the region having regard to its social, economic and environmental strengths. We need to identify the unmet needs and opportunities for growth of tertiary provision in partnership with industry and the community. This can only be achieved through an effective working partnership of government, tertiary providers, economic development agencies and local government. The Chamber is part of an intersectoral forum known as the ‘Northland Skills Forum’ which is seeking to deliver solutions to some of these skills problems.However, tertiary education is only one part of the ultimate solution to our burgeoning skills gap.

We are heartened to see our regional economic development agency become involved in attracting overseas skills with groups such as the Whangarei Economic Development Group. Other initiatives include importing skills through marketing tools such as http://www.newkiwis.co.nz/ , a Chamber of commerce initiative designed to match up prospective, new kiwis to gainful employment. We also have among our members - companies such as the bay of islands immigration consultancy and direction recruitment both who are proactive in the business of bringing skilled people to our region.

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 of Commerce – 2007 Export Year

O800 EXPORT
0800 397 678

Export Year 2007 offers a huge opportunity for businesses to help lift their own success while at the same contributing to a big lift in New Zealand’s living standards.

Launching a free New Zealand Chambers of Commerce 0800 Export Year service available to businesses nationwide, Northland Chamber of Commerce spokesman Jeff Smith said the service would be of particular interest to companies looking to expand their export campaigns or get into exporting for the first time.

“We are especially keen to hear from businesses with innovative products and services doing well in New Zealand and which could be encouraged to be marketed internationally.”

There must be hundreds if not thousands of businesses with potential to export, he said. An international survey some years ago ranked New Zealand as amongst the most innovative nations in the world, but among the least successful in converting those ideas into successful international businesses.

The importance of Export Year 2007 to increasing New Zealand’s foreign exchange earnings and lifting living standards overall cannot be over stated.

“With just 150 firms responsible for 75% of New Zealand’s exports by value, it is a myth that we are a nation of exporters,” said Jeff Smith
Less than 6000 firms of more than 300,000 registered in New Zealand export more than $5 million a year.

“With statistics like this, Export Year 2007 should set a target to double the numbers of businesses who are serious and regular exporters.”

The Chambers’ 0800 397 678 Export Year 2007 service will be available across New Zealand. The Chambers will be rolling out other Export Year 2007 activities involving all 29 Chambers as the year unfolds.

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.


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

10 Reasons to enter your business in the 30th Northland Business Excellence Awards

I remember the day I turned 30 thinking that my life had just about ended and that I was officially old.

Little did I know then, but having a few years under my belt was actually quite good. Being older has many advantages. My favorite one is that I get automatic respect without earning it. Other benefits are that your investment in health insurance finally begins to pay off and of course in a hostage situation, you're likely to be released first.

Youth is definitely wasted on the young!

2007 marks the 30th Anniversary of the Northland Business Awards.

This Event has been run by the Northland Chamber of Commerce for 30 years in various guises. The common thread being a celebration of business’s, people and companies who risk capital to enable the wheels of the economy to turn.

We have a special event planed this year to celebrate Northland Business and honour some of those past winners.

All Businesses need to consider entering these awards. To help you with your decision we are giving you 10 reasons why you should contact us for entry details.

Going through the awards process gives you an in-depth understanding of your business
The awards process is an external benchmarking opportunity – How does your business stack up against other businesses.
The act of entering the awards moves your business closer to best practice in all areas
Feedback provided to you by judges helps it become focused on continuous business improvement
An award puts your business name out there. Your business receives external recognition and marketing leverage.
Winning a category confirms your business reputation for quality, leadership and innovation
Preparation of an award provides a common goal for your employees and is an excellent way of improving staff morale.
Winning awards boosts staff self-esteem.
Wining awards can lead to new contracts and bottom line improvements.
The awards process is a great networking opportunity with other quality businesses.

On another note we have our AGM on the 28th February 2007.

Worthy of note is the fact that we will have the first Election for board members that we have had for some time. There are more nominations than available vacancies which demonstrates that Northland Business people want to contribute to a healthy vibrant economy and are taking responsibility by putting themselves forward for a position on our board.

All the nominees are excellent Northlanders and leaders in their chosen field and the hard part will be making the decision at the AGM. Profiles of all people nominated for election can be found on the Chamber website.

2007 will see the Northland Chamber become heavily involved in advocacy issues and encouraging change, development and investment to build the Northland Economy on what is becoming an excellent place to do business.
The Northland Chamber looks forward to catching up with all our members at the AGM or during the year at one of the 40 – 50 events that we have planned this year.


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

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

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