Want Motivated Loyal Ambitious staff??

The Northland Chamber of Commerce has often bemoaned the lack of suitable staff available to Northland Business over the last few years. As the Economy has boomed the availability of staff has decreased accordingly.

We were absolutely thrilled to be involved in the employers evening as part of the ‘our stories’ exhibition at Rathbone house.

Employers were able to testify about hiring people with disabilities. The overwhelming message we heard was that these people are Hard Working, Ambitious, Loyal and quite often outshine some of the more able bodied people.

Kyle Donavon from Donavon’s talked about employees that were hard working, flexible and willing to carry out the most basic of tasks with a sense of value and importance which reflected the employee’s personal pride in work. Sick leave was a rarity and punctuality couldn’t be faulted.

We feel that as the Economy starts to restrict and more and more Compliance around employing people is pushed onto employers that there is an even more compelling reason to call Karen at IDEA or Johnny at the Tiaho trust to enquire about hiring people who live with disabilities. You will find that these employees are also very flexible and often relish the opportunity to work say part time or carrying out some of the duties that others may not find so appealing. There is also a lot of assistance to help you as an employer make the decision to hire disabled people including financial assistance.

On another note the Westpac Northland Business Excellence awards is well under way. Check out the website at www.northlandbusinessawards.co.nz and send through your recommendations of busienses that you thionk may be an excellent business and well deserving of an entry in this years awards.

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

More Compliance for Northland Business

The Flexible Working Arrangement Act came into effect on July 1st so if you haven’t already started thinking about the potential impact this could have on your business, now is a good time.
This legislation allows employees responsible for caring for another person (whether that person be a child or an adult, a family member or a non-family member) the right to ask you for flexibility in their working arrangements.

They can apply to you to work from home, work compressed hours, change their working days or change their start and finish times. They can only apply after working for you for at least 6 months.

You can decline their request for a number of reasons, like the inability to rearrange shifts, the impact it will have on quality or performance, or the inability to get extra staff.
Figures from the Department of Labour show that around 40% of workers will be care givers to someone.

While some employers may see this as a compliance nightmare, the reality is that many workplaces already offer flexible arrangements for employees, while others are starting to move towards this.

How do we comply with the Flexible Working Arrangement Act?

One way to tick the boxes is to have a flexible working policy and begin on the checklist on the DOL website. Another way is to look at countries like the UK who have worked under this type of requirement since April 2007.

From the British Chambers of Commerce guide ‘how to make flexible working hours work for you’ ways of practically introducing flexible working hours include;

- Part-time working: Work is generally considered part-time when employees are contracted to work for anything less than full-time hours.

- Term-time working: A worker remains on a permanent contract but can take paid or unpaid leave during school holidays.

- Job-sharing: This is a form of part-time working where two (or occasionally more) people share the responsibility for a job between them.

- Flextime: Flextime allows employees to choose, within certain set limits, when to begin and end work.

- Compressed hours: Compressed working weeks or fortnights don’t necessarily involve a reduction in total hours or any extension in individual choice over which hours are worked. The central feature is reallocation of work time into fewer and longer blocks during the week or fortnight.

- Annual hours: The period within which full-time employees must work is defined over a whole year.

- Working from home on a regular basis: Workers regularly spend time working from home.

- Mobile working/teleworking: This permits employees to work all or part of their working week at a location remote from the employer’s workplace.

- Career breaks: Career breaks, or sabbaticals, are extended periods of leave – normally unpaid – of up to five years, or more.

Regardless of whether ‘flexible working’ is law or not the reality is that many workplaces already offer flexible arrangements for employees, while others are starting to move towards this.
This may be a good opportunity for businesses to turn a required compliance measure into a positive incentive to

· retain skilled staff and reduce recruitment costs
· raise staff morale and decrease absenteeism
· meet labour market changes more effectively.
· Become a competitive ‘employer of choice ‘ in a world where skilled staff are becoming rare

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

Resources DOL Website http://www.dol.govt.nz/worklife/resources/index.asp

British Chambers - How to do it http://www.aucklandchamber.co.nz/pdfs/2008%20pdfs/flexiblework.pdf

Another National Park for New Zealand? In Northland!

Imagine A marine national park that stretches from Whangarei Heads to the Poor Knights to Cape Brett.

What reason could the Northland Chamber of Commerce possibly have for highlighting and encouraging discussion on this proposal? Lets look at the Goat Island Marine Reserve in Auckland. This brings in 16 million dollars of Economic Benefit to the Community along with 350000 visitors. Annually The Poor Knight Reserve as it stands pulls in around $10 million dollars per annum.

A marine national park concept is simple. Its based on Economic Development principles along with an underlying sustainability focus.

A Marine National Park would look something like this. Stop Commercial Fishing within the park and halve the recreational bag limit. Set aside 10% of the area where there are absolutely no fish zones. Preferably bordering the coast lines near some of our smaller settlements. (Marine National Parks differ from Marine Reserves in that customary fishing rights are preserved).
In a short time Fish Stock would flourish along with Ecological gains in the number of species and diversity of marine life. The area would now become a haven for Divers, Associated Industries and Tourism Ventures. The Northland point of difference being the Marine Park borders coastlines where visitors and locals could have easy access to areas without the need for boats.

Aside from Economic Benefits we can see that a Park like this would also provide ecological, social, cultural benefits. Aquamarine Farms could still also operate sustainably ad wouldn’t be counted as commercial fishing.

If an area like Goat Island can generate $16 Million dollars of benefit to the Auckland Economy and attract 350000 visitors imagine what a Marine National Park could do for Northland. It’s got to be worth considering.

Consider this. The potential for all this is on our door step right now. Hardly any capital investment is required. The only obstacles to a concept like this working being agencies, authorities, groups and people failing to see the benefits.

Let us know what you think. Should the Chamber invest time in bringing these groups together to begin the process? Can Northlanders be persuaded to work together for a common cause? ( Economic Development and sustainable future). Express an opinion on the latest ‘HOT’ topics at the Northland Chamber Blog Site at www.northchamber.blogspot.com

Food for thought!

Over the last few weeks community groups and ratepayers have had the opportunity to submit to District and Regional Council Draft Annual Plans.

This is one of our privileges and responsibilities that come from living in a democracy.

One of the interesting aspects of living in Northland is seeing District Councils and regional councils make submissions to each others annual plans.

In the lead up to the Annual Plan process this year the Far North mayor started the discussion on unitary authorities.

He is of the opinion that the Far North could manage its own affairs. This would mean taking the responsibilities and roles away from the Regional Council and bringing these under the Far North Council operations.
The Northland Chamber of Commerce is all for consolidation of services where we can see a clear direct benefit to us the ratepayer and initiatives that add value to the economy, community and infrastructure of the region ensuring rigorous scrutiny to ensure that the community and environment are protected.
We would like to open the debate up wider and suggest that the whole Northland Region look at operating as a unitary authority. We have a large geographical area but a resident population of only 153800. Why do we need Four separate local Government entities and two layers of Government for this?

Whenever we have bought this concept up in the past we have been very unpopular. Lets face it there are lots of patches to protect. The truth is however that both District Councils and the Regional Council operate under the Local Government Act 2002.

These are arguments for and against the restructuring of the whole Region to a unitary authority structure or a Super Council.

The advantages for a one Northland council would be:
Consolidation of resources – Infrastructure, Staffing and Physical localities
Co-ordinated Region wide focus on infrastructure and development
Potentially Less Politicians and bureacracy

The major disadvantage would be that people would perceive that a ‘super council’ would not represent them and their locale fairly.

Remember that we are saying that we should start the discussion. If the Status Quo is proven to be the most effective and efficient way of Governance than by all means stick with it!

What do you think?

Log on to our blog site at www.northchamber.blogspot.com and leave a comment


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

10 Best Reasons for doing business in Northland

The First half of 2008 has started out as a bit of a shocker. Petrol Prices have skyrocketed, Interest rates have held their highs, basic food stuffs are increasing in price and the Housing market is slumping.

The Northland Chambers own survey on business outlook has reported a drop in confidence over the coming 12 months which has been backed up nationwide by indicators out of the major banks.

In mid May 2008 the Northland Chambers of Commerce asked members what was the best reason for being in business in Northland and awaited the response. We have had feedback from a few businesses to say that the business climate was getting tougher. We were pleasantly surprised to discover that the replies came in over the next week or so were full of enthusiastic comments and the positive sides of being in business in our region.

The amount of enthusiasm and feedback we received cemented the impression that our membership although diverse and widely spread do have a more optimistic and positive outlook than other businesses.

These comments are outlined along with the complete list in our eBook - the 10 best reasons to be in business in Northland which can be downloaded from our website www.northchamber.co.nz

3 of the 10 best reasons for being in business in Northland

1. Northlands Statistics
Unemployment is down - Northland's unemployment rate continues to break records by bucking expectations and trending downwards to another record low of 3.9% (from 4.1%) in the previous quarter. This is only a fraction higher than the national average which has grown from 3.4% to 3.6% over the last quarter. A great result for Northland in comparison to a number of other regions' rates progressing upwards (This fact unfortunately wasn’t reported in mainstream media) source DOL
Population growth : Statistics NZ predict Population growth for the future to be at around a 13 % for the period 2006 - 2013
2. Businesses still want to relocate here:
Why wouldn’t they. Climate, lifestyle, comparatively cheaper rental/ leases on commercial properties & Staff Costs. Some of the constraints on availability of good commercial property being answered in the medium term by industrial developments in Waipapa and Marsden Point.
3. Region of Opportunities
A number our members mentioned the endless opportunities in Northland. Most of these people are 'new Northlanders' who hang recently relocated here have identified a number of business opportunities or Gaps in the market in various industries within Northland in comparison to markets like say Auckland. (Anons)
Marsden Rail Link will open up opportunities for Developers, Businesses and the Port and act as a catalyst for Economic and Business Development in the Region.
Attraction of technical and skilled immigrants is made easier through the ability to market the lifestyle and physical attributes of the region as a great place to live, work and play.

Other reasons given by Chamber members were People, Lifestyle, Location, Productivity, The Economy, Co-opetition and Knowledge.

The Complete list of comments and breakdown can be downloaded from 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 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/

While they are still talking about it – private enterprise has gone out and done it

The Northland Chamber of Commerce is a voluntary association of companies and individuals engaged in business activities in the Northland region.

• 
  It is dedicated to the development of international, national and regional trade through
  Freedom of enterprise for those who by their individual and corporate talents contribute real economic, social and cultural wealth to the community.


• 
  The development of a market economy in which there is minimal interference from central and local government.
  


• The strengthening of Northlands place as a pre-eminent commercial, industrial and communications centre.


• 
  Assisting the development of the region in creating a desirable commercial and industrial environment for its citizens.

The ‘market economy’ point above manages to attract a lot of flak from time to time from various individuals and organisations who feel that the economy should be closed or controlled by Government.

Recently in Northland we have seen a private partnership come together to solve a problem which is bothering provincial New Zealand. That is the Broadband issue. Broadband and data services are slow and cumbersome due to a monopoly provider controlling the lines over the past decade or so and the lack of a need to invest in basic infrastructure.

Northpower and Telstra Clear have come together to deliver voice and high speed broadband services over Northpower fibre optic core network. This means that 900 businesses, schools and health sites in Whangarei will now have a choice of using a high speed network for the delivery of Data. The expected roll out of this is due before Christmas 2008.

The interesting point about this is that Politicians and Government have been talking about delivering high speed data services for some time now.

Current central Government includes huge spending in project probe a few years ago along with resource over the past 4 or 5 years in the Governments Digital Strategy.
The National party is campaigning on ultra fast broadband infrastructure as being central to the investment in infrastructure if elected.

Regional Council have been talking about broadband for a while now and have only recently announced an MOU with a private provider to scope and run a feasibility study on a project which will see a broadband infrastructure rolled out across the Northland Region.

Central Government has also been involved over the past few years in forcing Telecom the monopoly provider to open up access to basic infrastructure to allow other companies to compete.

Interestingly, in March this year, the NZ Institute criticized NZ’s broadband performance and aspirations saying that “ Progress in improvement is too slow, Telecom was the only real player in the roll out of fibre industry and that to stall on infrastructure improvement meant that options for future improvements are becoming restricted”. The NZ institute went on to advocate that the Government move rapidly to invest in the rapid roll out of Fibre to enable fast Broadband.

Of course we in Northland can now see that a ‘market economy’ decision to invest in a region beats Government initiatives any day regardless of what politicians are promising and think tanks are recommending.

There are a couple of good points about the Northpower / Telstra partnership. Firstly Whangarei will now have Data speed and services equaling those of Cities like Christchurch and Wellington. This then gives Whangarei yet another advantage over other regional cities as a preferred place to work and do business.

Secondly, in one swoop Telstra /Northpower are now able to enter the basic communications industry. In other words you now have choice in which provider you use for your telephone connection. As Telstra’s Dr. Alan Freeth said at the launch of this initiative, look out for surprisingly good deals from communications companies competing in a ‘Market Economy’ for your communications spend.

The Northland Chamber says ‘Thank goodness for Competition’.

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

16 May 2008

Submission to:

Rodney District Council – by email to customerservice@rodney.govt.nz
Auckland Regional Council – by email to consentsubmission@arc.govt.nz

Submission regarding:

The Proposal to establish, operate, maintain, upgrade the Rodney Power Station and associated facilities

Submission by:

The Northland Chamber of Commerce and Industry Inc.

The Northland Chamber of Commerce

The Northland Chamber of Commerce currently has 420 financial members that employ the equivalent of 5000 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.

General Nature of Submission

In Support of all applications

Submission

The Northland Chamber of Commerce fully support Genesis Energy Applications to carry out the construction and upgrade of the Rodney Power Station as described in the ARC and Rodney Distinct Council’s Public notification for Genesis Energy Rodney Power Station Proposal

The reason we support this is because.

Security of power supply in New Zealand.
Industry requires a reliable supply of electricity to provide for the future social and economic well being of the country. The proposed station will do this.
A wide range of generation source is required 9Besides Wind, Solar, Gas, Hydro) to ensure power is available at times required
The proposed power station will enable generation during low hydro , low wind periods
Security for Northland. More generation is required north of the Auckland Isthmus. Currently very little generation north of Otahuhu
Security for Northland can not be guaranteed by upgrading transmission lines alone. More local Generation is also required.
Growth expectations for the Auckland and Northland regions require more local generation.

Consumer Benefits
The proposed station will assist the stability of power prices by providing generation options when other sources are limited.

The Environment
The proposed station will limit the use of the Whirinaki Diesel power station which has greater carbon producing emissions due to the diesel fuel being used.

Best Location for a station
The proposed sight is close to all the factors of production required to run the station namely gas supplies, transmission lines, water supply and road access
Area has plentiful land available – enough to supply 8 hectares at a reasonable cost.
The station will enable more sustainable development in the Northland and Auckland Regions

We support the proposed plans and would like to see both the Auckland Regional Council and the Rodney District Councils make any decisions required to support these applications.

We would like to be heard to support our submission.



Yours faithfully

Jeff Smith
Chief Executive Officer
Northland Chamber of Commerce

Phone 09-4384771
027-4441010
ceo@northchamber.co.nz

Submission to: Royal Commission on Auckland Governance

Submission regarding:

The opportunity for a broader and independent assessment of what is needed to achieve Auckland’s potential to be a truly internationally competitive city to live, work and do business.

Submission by:

The Northland Chamber of Commerce and Industry Inc.

The Northland Chamber of Commerce

The Northland Chamber of Commerce currently has 420 financial members that employ the equivalent of 5000 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.


General Nature of Submission

The Northland Chamber of commerce recognises that our region does not operate in a vacuum. We are inherently interested in the development and structure of our neighboring regions.

The Northland Chamber of Commerce supports changes of the current structures as outlined below because for New Zealand to grow we need Auckland to Grow faster. This is even more so important for the Northland Region due to our proximity to Auckland.

Therefore our submission will reflect the following assumptions

Auckland is our neighbor therefore any effect of changes in governance affecting Infrastructure and development will generally have an impact on the Northland Region whether that be taking advantage of Auckland’s Growth / prosperity or to be affected by Auckland’s Demise.
Auckland is considered to be the engine of the economy If NZ is to grow at an acceptable level over the next 10 years then Auckland (and its infrastructure) needs to grow exponentially faster to ensure that NZ grows.

Submission

Keeping in mind the above assumptions, The Northland Chamber of Commerce would prefer a local Government structure in Auckland that ;

Can deliver Infrastructure that does not act to a deterrent to growth

Invests in infrastructure using anticipated growth models

Makes resource decisions quickly

Has a regional Infrastructure outlook

The practical changes that needs to occur is “fast, seamless, forward looking and commercially sound decisions in infrastructure investment within a framework of streamlined political processes.”

The Chamber believes that the local Government situation in Auckland is confusing as far as infrastructure is concerned. The most obvious change would be the formation of a new or an expansion of the existing ARC to become a unitary authority bringing in the local and district council functions. However research suggests that this would not be as efficient as first may seem.

Our submission is fundamentally to consolidate some of the local authorities activities to ensure that a regional vision be applied to all infrastructure decisions and to gain efficiencies.

The Northland Chamber of Commerce would therefore suggest Regional Government are responsible for the formation and running of an infrastructure authority to undertake all decisions, planning and implementation across the region regarding

The investment on infrastructure using anticipated growth models

All planning and delivery for Transport, Water, Waste Water, Broadband, Energy, Major Public Facilities across the region

To relieve District and City councils of the burden around resource management planning for these

A consolidation of any bodies or organisations (into the infrastructure authority) set up to administer infrastructure (eg. The Water Industry currently has 11 bodies including 7 councils)

Thank you for the opportunity to make this submission

Yours faithfully

Jeff Smith
Chief Executive Officer
Northland Chamber of Commerce

Submission to Northland Regional Council Draft Annual Plan 2008 / 2009

Submission to:
The Northland Regional Council.

Submission regarding:
Draft Annual Plan 2008 – 2009

Submission by:
The Northland Chamber of Commerce and Industry Inc.

The Northland Chamber of Commerce

The Northland Chamber of Commerce currently has 410 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.

Submission

The Northland Chamber of Commerce

1. Supports ongoing work carried out by Regional Council to designate an Oakleigh to Marsden Point rail corridor

2. Support a targeted rate to complete dredging work on the Hatea River channel. We also support target fees to berth owners, boatsheds and individual moorings in the Whangarei Harbour. We support targeted rates to businesses that derive a direct benefit however would like to see the dredging cost evenly distributed among all the above parties ( Businesses, Boatsheds, Moorings and Berth owners)

3. The Northland Chamber of Commerce supports any Regional Development spend to be allocated to an economic development agency with a regional focus.

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 Whangarei District Council Draft Annual Plan 2008 / 9



8th May 2008
The Whangarei District Council
Whangarei.

Submission to:
The Whangarei District Council

Submission regarding:
2008 – 2009 Draft Annual Plan

Submission by:
The Northland Chamber of Commerce and Industry Inc.

General Nature of Submission
Suggestions for council to consider in Annual Plan and support for specific proposals

Decision sought

To consider selling non – strategic assets
To reconsider the culture of minimising rates increases at all costs and by deferring planned work or cutting services.
To review all rating differentials on general rate takes to a more equitable manner and in particular those penalising the commercial sector
Immigration support
Proactively seek out inwards investment opportunities in collaboration with Industry and business associations
Scope the formation of a Holdings Company with a private and public board mix to maximise return from assets
To continue supporting a regional EDA with funding and staffing. We recommend not bringing these roles in-house as synergies and communication are even more enhanced by working with a regional body.
To scope out and work towards a ‘one stop shop’ approach with Regional Council in any regulatory or compliance type services.
To gain a professional opinion on the option submitted by the Northland Chamber of Commerce to the CBD Flood management consultation regarding a ‘dyke’ to solve stormwater, flooding, traffic congestion and visitor industry issues.
Tourism – Clear, well branded signage designed to get visitors into Whangarei to spend more and stay longer.

The Chamber supports

Investigating a ring road option for Whangarei
Any work or effort to reproritise and drawdown funding for roading work to our main arterial routes in the district in conjunction with Transit NZ.
Investment into Tourism

The Northland Chamber of Commerce

The Northland Chamber of Commerce currently has 420 financial members that employ the equivalent of 5000 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

We would like to talk to 2 or 3 points in more detail on our submission a total of 15 minutes if possible

Yours faithfully

Jeff Smith
Chief Executive Officer
Northland Chamber of Commerce

Carbon....... is the new nuclear!

Climate Change - What position should the Chamber take on behalf of Northland Business?
	Strongly Support all measures to eliminate Emissions at any cost
	Support measures to eliminate emissions considering the economic cost
	No Position - not enough information
	Support in principle but dont support any measures that result in more tax and compliance on business
	Stongly advocate against any measures as the whole issue is a crock.
Free polls from Pollhost.com

2013 is looming…..

I had the pleasure to attend the young farmers regional competition on Saturday Night in Whangarei. It was great to see an example of the talent represented by the 8 finalists. The finalists came from different parts of the rural economy. From farmers in the traditional sense to those servicing the farming sector.

It was interesting to note the optimism in this sector. A local rural real estate agent told me that sales and enquiries were still bouncing along at a busy pace and that the sector seemed to be prospering nicely. The Banks of course are still keen to do business with the rural sector unlike their urban counterparts in the property development game who have found recently that the banks are treading a little bit more cautiously when securing funds against property.

12 years ago after selling my last business I purchased a 10 acre lifestyle block just out of Wanganui. My neighbour was a beef and cropping farmer. In my conversations with him I learnt about the cycles and the toughness of the farming. Back then he was looking at dairy conversion as the way to go. I couldn’t believe the resilience and toughness of this 3^rd Generation farmer. Year after Year he would roll with the punches – refinancing when necessary, bringing on consultants onto his land once a quarter and taking on board advice and assistance to assist him through the tough times. When I last spoke to him 6 or 7 years ago things had definitely changed for the better. He was purchasing new farms, leasing more land and maximising the most of his opportunities.

Farming and Primary production like any other part of the economy goes through cycles.

With the downturn the economy is facing, it is quite clear that historical service centre towns like Whangarei and Dargaville still owe a lot to the flow on effect of a good rural economy.

Whilst the economy is cyclical there are a number of issues on the Horizon that farming bodies and associations should quite rightly be worried about.

In 2013 the Agricultural Sector in New Zealand will be subject to the emissions and trading scenarios following suite of the electricity industry in 2012 and transport fuels from next year onwards.

In February this year the Northland Chamber of Commerce made a submission to the Finance and Expenditure Select Committee regarding the Emissions trading and renewable preference bill currently before the select committee. In this we identified that to support the bill in the current format that some 1630 jobs in Northland would disappear.

We also supported in principle actions to reduce global emissions of Greenhouse Gases but we argued that the Government should not be imposing restrictive measures upon New Zealand businesses ahead of other countries.

In 2013 when the Agricultural industry has to operate under these conditions no –other country in the world will be imposing these on their agricultural sector.

We need to question why? Agriculture & primary production is still the backbone of the NZ economy. Why add another complication to an already uneven playing field. Remember – we are a long way from most of our markets so we have to be productive enough to supply produce competitively to start with.

The Northland Chamber has supported a sensible approach regarding emissions trading. The main discrepancy as far as the Chamber is concerned is why jump in and assist our economy to become uncompetitive. The NZEIR has itself put figures on loss of GDP and Job losses that are in the billions of dollars and thousands of jobs.

In the meantime don’t forget that the rural economy is still a big earner for Northland and directly responsible for some of the commercial activity going on in our towns and centres today.

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

Small Business – The engine room of the economy


The Northland and NZ economy is primarily made up of Small Medium sized businesses.

As of February 2006
96% of enterprises employed 19 or fewer people.
87% of enterprises employed 5 or fewer people.
64% of enterprises had no employees.
The number of SMEs increased 4% in the year to 2006.
SMEs accounted for 30% of all employees.
Firms with 5 or fewer employees accounted for 11% of all employees.
From 2001 to 2006, SMEs accounted for 59% of all new net jobs in the economy.
There were 11,751 net new entries into the Business Demography dataset at February 2006.
Self-employed people accounted for 11% of people in the labour force (at March 2007).
Since 2003 the Small business advisory group has been providing a small business voice to the policy makers in Wellington. Last week the Small business Advisory Group made 16 further recommendations to the Government on behalf of Small Businesses.

Recommendations included

Making the business environment in NZ competitive to Australia’s with comparative benchmarks formulated and published to keep score.
Three recommendations on simplifying, removing obstacles and tax concessions for hiring and training Employees
Tax changes like abolishing FBT and increasing deductibility for childcare to encourage people into the workforce.
Other recommendations including resource management changes, the provision of credible business advice and export assistance

The panel for the Small Business Advisory is made of up small business owners from around New Zealand.

The Small business advisory group recommendation and report are freely available on the Ministry of Economic Development Website at www.med.govt.nz

Unfortunately there is currently no representation from Northland.

Do you have any recommendations for the Government? How could the environment we operate in be better served for businesses? The Northland Chamber of Commerce is always keen to hear from Small businesses on their concerns. We represent business at local and central government level to ensure that the business community is well served.

Have a look at the report and let us know your concerns

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 business outlook weakens

The latest Northland Chamber of Commerce business opinion survey points to a general deterioration in a number of important performance indicators in Northland and the Northern Region of NZ.

The Chamber’s quarterly survey provides an important snapshot of where small and medium northern region businesses think they are headed as 85% of the 500 surveyed employ 20 or fewer staff.

Northland Chamber of Commerce chief executive Jeff Smith says businesses are significantly more pessimistic than they were in December. “This has to be of concern when the Northern region (Waikato - Northland) generates more than a third of New Zealand’s productive economic activity, and small and medium businesses provide most of the engine’s cylinders.”

Mr Smith says a “stand out” survey finding was that locally in Northland 48% of the survey respondents expect the general business situation in New Zealand will deteriorate in the next six months. This is more than an 80% increase on those who thought so in December, and three times as many who were pessimistic a year ago.

In other findings, more businesses expect:

softer demand for staff over the next three months;
to make less investment in buildings and machinery over the next year;
that significantly higher costs will squeeze profitability over the next three months;
significantly less demand from New Zealand customers over the next quarter;
That interest rates will rise further over the next year.


Mr Smith says 70% of respondents now expect interest rates to rise during the next year, up from 46% in the December survey. “Coupled with this is the suggestion that mortgage rates will go still higher, despite the Reserve Bank not lifting the official cash rate. With many small businesses using borrowings secured against mortgages this will obviously have an impact.”

Mr Smith adds, “The ability of business to absorb further price increases appears to be over if, as the survey suggests, demand and turnover are headed south. Perhaps rather than pushing huge State driven capital projects it may be time to invest in the “business engine” (the Golden Goose for the last 8 years).
If not, whichever party wins the Treasury benches risks inheriting an economy in danger of turning ice cold.

Jeff Smith
CEO – Northland Chamber of Commerce

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

Merchant of Doom and Gloom

The Quarterly Northland Chamber of Commerce Business Confidence Survey is due out in a few days time.

We have heard results from a number of Business Confidence Surveys lately all espousing doom and gloom. These are surveys carried out on a national basis. The Northland Survey is one of the only Northland Regional Surveys carried out and we await the results.

I would like to Cover the Northland’ Confidence Surveys, What they tell us and how they relate to you and your business in particular.

Firstly, what is a business confidence survey? – The Business confidence survey allows us to take a regular detailed snapshot of the Northland Economy. With a database of over 1,200 businesses in Northland, company participation in the survey enables the Chamber to monitor business sentiment and intentions. Respondents are asked about their employment and investment intentions; their expectations of the economy’s performance and their own business situation; and what the main issues affecting their businesses are

What do these surveys tell us? – These surveys are handy tools for those looking at the Northland Economy. . They provide a useful tool for tracking how the economy is moving. They tell of business intentions in hiring staff over the next 3 months, whether businesses are investing further in capital and business owners perception of the economy and business owners perception of there own performance. Planners and agencies can change policy (or not) based on the results of the Quarterly Survey.

How do these surveys relate to your business in particular? Firstly, you can look at the results overall and compare the economy perception to your own business. This may give you an indication on how well you are (or are not) doing. Or you can ignore the results and just keep on doing what you are doing.

One of the common criticisms of these surveys, however, is the ‘Doom and Gloom’ aspect. In other words if we keep reporting negative results that somehow business will start to perform poorly to meet the expectations outlined by these surveys.

Most Northland business owners however will not let results of surveys such as these affect them negatively.

They know that the fate of their business stand firmly in their own hands. They are planning now for growth taking into account adverse economic conditions such as exchange rates, lack of skilled labour, interest rates and fierce competition. Yes there are probably some trying times ahead however if there is one thing about Northland people and businesses is that they are extremely tough and resilient and tend to file ‘bad news stories’ where they belong because they are just too busy getting on with it.

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

Media Release
4 March 2008



Overseas Investment Amendment Raises Questions as to what are Strategic Assets

Urgent clarification is required as to what is meant by strategically important infrastructure and sensitive land according to the New Zealand Chambers of Commerce (Inc).

“The decision to amend the overseas investment regulation will further increase the uncertainty associated with our overseas investment regime,” said NZCCI Director, Michael Barnett.

“Without certainty as to which assets are strategic and what land is sensitive it is becoming increasingly difficult for businesses to know what assets can be sold to whom. Businesses need certainty more than anything else.

“It is also increasingly confusing for overseas entities who want to invest and do business in New Zealand.

“The decision has major implications for overseas perceptions of New Zealand’s openness to foreign investment. It sends a signal that the government is anti-foreign investment.

“It may now be harder to attract private sector partners for infrastructure projects,” Mr Barnett concluded.


For further comment please contact Michael Barnett on (09) 309 6100 or 0275 631 150

Hundertwasser – an iconic Northland product

What an interesting week it’s been. The Northland Chamber of Commerce has completed a submission to the Finance and Expenditure Select Committee regarding the Emissions Trading proposal as it stands, talk of a new Hunderwatsser museum in Whangarei and wholesale changes at the Northland Chamber Board.

Climate Change Emissions trading amendment

Our submission to the Government says that The Northland Chamber of Commerce opposes the Climate Change (Emissions Trading and Renewable Preference) Bill. We support action to reduce global emissions of Greenhouse Gases but we believe the government should not be imposing restrictive measures upon New Zealand businesses ahead of other countries. We have asked the Finance and Expenditure Committee To put aside these measures and reconsider once our trading partners implement. The reason for this of course is that it immediately gives non complying countries a competitive price advantage over us when trading internationally. Another Disturbing effect of the trading and emissions amendment is the potential for job losses in Northland which we would obviously like to avoid.

Hunderwatsser Museum

Every region in New Zealand can boast about parts of their region that entice visitors. Usually these are to do with physical beauty (Mt aspiring) or one off events (Wanganui masters Games).

Smart Regions are being very clever in the cultural Tourism industry. They are taking a local feature whether that be a person, place, event or thing and developing an iconic product around that. This makes sense on a few counts - the foremost being that a region can be very specific about what makes it special therefore giving itself a unique selling point (Just like a business).

We can see a great deal of common sense in the Hundertwasser proposal. Yes for Whangarei but more importantly for the wider Northland Economy. Unfortunately there has been some discord regarding the sighting of the proposed museum. If we are smart about this proposal every small town in Northland could work in with the Museum to have a Hundertwasser iconic piece or feature.

We know that the Cultural Tourism sector is very financially rewarding. We also know that art patrons that travel to NZ to see an iconic work such as the Museum in Whangarei will probably travel to Kawakawa to see the Hundertwasser work there. So why not Kerikeri, Kaitaia, Kaikohe, Dargaville and Ruawai capitalising on this and working in with the Whangarei Museum to get ‘Hundertwasser lovers to travel a circuit. Surely that would encourage these visitors to stay longer, spend more and come back more frequently.

The Northland Chamber of Commerce held its board meeting on 27th February. We have a new board and a few good challenges for the year ahead. Our new board are on our website http://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

Big Changes: Northland Chamber of Commerce Board

Eight new board members were voted on to the Northland Chamber of commerce board at the Chamber AGM on Wednesday night.

Chamber CEO Jeff Smith says ‘there was a lot of interest in standing for our board which concluded in a vote at the AGM on Wednesday’.

‘We had a few retirements during the year so it was good that there was a keen level of interest in the Chamber’

The new board sees 8 new board members and 6 of the current board.

We have an exciting mix among our board with experts in the fields that the Chamber advocates strongly for namely Town Planning, Employment specialists, Construction, tourism, project management with the WDC and NRC remaining represented through co-opted members Greg Martin and Bill Rossiter.

The Northland Chamber of Commerce is accredited to the International Chambers of Commerce, is a voluntary self funded organisation whose purpose is to protect the environment that businesses operate in within Northland.

Membership is made up of businesses, organisations and individuals all over Northland. 2007 has seen membership and involvement increase and in particular the Far north and Kaipara districts.

The 2008 Northland Chamber of Commerce Board is


Tony
Savage
President
Urlich McNab Kilpatrick

Tim
Robinson
Vice President
Gen-i

Dean
Subritzky
Treasurer
Sudburys Ltd

Vince
Cocurullo
Board
Cocurullo's Ltd

Richard
Engdahl
Board
Organisational Imagineering International Ltd

Nat
Davis
Board
Renov8

Darren
Mason
Board
Northpower

Jeroen
Jongejans
Board
Dive!Tutukaka

Heather
Tomason
Board
Griffiths & Associates

Noël
Jelsma
Board
Gen-i Northland

Paul
Neshausen
Board
Direction

Murray
Broadbelt
Board
Employer Services Ltd

Andrew
Bourke
Board
Konica Minolta Business Solutions

Alan
Wilkinson
Board
AK Consulting/Surveyors North


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

Northland Chamber submission on the Climate Change Bill








28th February 2008.

Finance and Expenditure Select Committee
C/o Parliament Buildings
Wellington
By email carol.brouwer@parliament.govt.nz.

Submission to:
The Finance and Expenditure Committee

Submission regarding:
Climate Change (Emissions Trading and Renewable Preference) Bill - Bill No 187-1

Submission by:
The Northland Chamber of Commerce and Industry Inc.

General Nature of Submission


The Northland Chamber of Commerce opposes the Climate Change (Emissions Trading and Renewable Preference) Bill. We support action to reduce global emissions of Greenhouse Gases but we believe the government should not be imposing restrictive measures upon New Zealand businesses ahead of other countries.

Decision sought


To put aside these measures and reconsider once our trading partners implement
In place of these measure to implement a broad-based greenhouse gas charge accompanied by a corresponding reduction in income tax as an alternative to the emissions trading scheme.

The Northland Chamber of Commerce


The Northland Chamber of Commerce currently has 363 financial members that employ the equivalent of 5000 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.


Our Submission


The Northland Chamber of Commerce opposes the Climate Change (Emissions Trading and Renewable Preference) Bill.


We support action to reduce global emissions of Greenhouse Gases but we believe the government should not be imposing restrictive measures upon New Zealand businesses ahead of other countries.

The measures proposed in the Bill, specifically the Emissions Trading Scheme and the limitation on thermal electricity generation, will result in significantly higher energy and transport costs for New Zealand businesses which our trading partners will not have to face.

These costs will reduce New Zealand’s international competitiveness and result in a loss of investment and jobs as companies contract activity, close down or relocate offshore.

If businesses do relocate offshore, this will do nothing to reduce global emissions. In fact global emissions might increase if that economic activity were to shift to another economy with more lenient climate change policies.

The impacts of supporting the Emissions Trading Bill are job losses and a diminishing of our economic base
The Government’s figures show that 1630 jobs would be lost in Northland alone – a 2.7% contraction.

An impact of this size on the economic base of our region would have devastating consequences and would be unacceptable. We urge you to reconsider this legislation.

We strongly believe that New Zealand should not introduce emissions trading or any other price based mechanism to reduce greenhouse gas emissions until our major trading partners face similar costs.

Putting aside the issue of New Zealand moving too far and too fast, we consider the emissions trading scheme to be a flawed way of reducing emissions.

We are concerned that without some sort of mechanism to temper market forces the proposed scheme will result in excessively high and volatile energy prices.

We are also concerned that the free allocation of emissions Units to protect the energy intensive companies will disadvantage smaller businesses relative to larger ones.

We believe a broad-based greenhouse gas charge accompanied by a corresponding reduction in income tax should be considered as an alternative to the emissions trading scheme. This would result in much more stable energy prices.

We would appreciate an opportunity to speak to our submission at the Select Committee hearing.


Yours faithfully

Jeff Smith
Chief Executive Officer
Northland Chamber of Commerce

Graffiti crackdown fantastic but lets not forget the responsible retailers in Northland

Its great to see central Government cracking down on those that wantonly and recklessly inflict their trash on private property and in doing so attempt to drag our regions public face and into the dysfunctional cesspits that these people appear to wallow in.

We wonder about the wisdom in fining perpetrators $2000 for desecrating property when history has shown the NZ justice system only too willing to ‘write off’ fines of people once they rack up $30000 or more in fines.

Our solution is to ‘tag’ these people with their fines that follows them for life until they are no longer ‘drawing an income’ or earning a living with an amount extracted each week as reparation to society.

We must however point out that we have in Whangarei a group of businesses that are often overlooked by media, who have already taken measures to protect our community by signing up to a voluntary code of ethics proposed by the Northland Chamber last year.

Last year we asked retailers involved in the sale of ‘graffiti type material’ if they were doing anything and what they would be prepared to do to assist with this problem.

The following retailers (MITRE 10 Regent, Placemakers, Colourplus Kamo and Wynn Fraser paints) agreed various initiatives put forward by the Chamber to assist in the stem of sales of paint to taggers. Not only did these retailers agree on self imposed ethics but they had already put systems such as security, restricting sales Policies and a responsible attitude in pushing for a solution to stop the tagging scourge.

It is also interesting to note that these businesses have a local content in other words the franchise or business is owned locally and therefore have more than a financial stake in our community with most of the staff being local.

In last weeks announcement from Government one of the crackdowns was to impose fines of up to $1500 on businesses for not having special security arrangements in place. Once again Government has picked the ‘easy’ target, Business, to pick on when societies ills such as tagging appear on the agenda. Why should businesses be fined $1500 because your offspring or cousin can successfully steals spray paint from them?

The message is this. Support these businesses. They are run by people who by there creativity and initiative risk their capital to provide jobs and services to our community. They are also part of the most ‘compliance imposed upon’ groups in New Zealand and the ones that put back into your community in a various number of ways.

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

2008 Budget Personal Tax Package – Northland Chamber of Commerce



As the Northland Chamber of Commerce we sometime s get quite pre-occupied with business issues….. and quite rightly so as we are a predominantly business group.


Recently the Chamber of Commerce along with a number of other business groups submitted a proposal to the Government on their 2008 Budget statement which focussed heavily on aligning the top personal tax rates to the company rate.


The reason for this being the personal tax rate is more important than the company rate for many small and medium-sized businesses, and there is a strong case for alignment of the top personal, company and trust rates in the interests of simplifying the tax system and reducing compliance costs.


The government has said that promoting economic growth is a top priority objective reducing high effective marginal tax rates.


The Hon Peter Dunne who came and spoke to the Northland Chamber in 2006 and alluded to aligning personal and company rates has now proposed to align the personal, company and trust rates at 30%. We think that this is commendable and given the government’s fiscal position, this could readily be implemented provided firm control is exercised over government spending.
In the medium term, personal and other income tax rates should be lowered further to make New Zealand more internationally competitive and attract investment.


Cuts in rates are also preferable to adjustments to tax thresholds, and we are opposed to measures such as the introduction of a tax-free threshold. The Submission set out below is affordable and could be implemented without creating ongoing inflationary pressures and without cutting real spending.


Recent tax moves have not been generally focused on growth, and they have increased the tax burden for many businesses and working people. The relative simplicity of the income tax system has been sacrificed in the process.


The wage gap with Australia cannot be closed by redistribution – it requires growth. A bold package that aligns all income tax rates at 30% or below would increase productivity and economic growth, be very positive for business, reduce unnecessary compliance costs, help stem the outflow of enterprising New Zealanders, and greatly improve New Zealand’s economic outlook.


Our Submission - Introduction


Economic growth is a priority objective of the government. Growth requires improvements in productivity and workforce participation. Both would be assisted by lower taxes.
The reduction in the rate of company tax from 1 April 2008 is a welcome move. However, personal tax rates are more important for many small and medium-sized businesses and professional organisations, and for new equity invested in companies by resident taxpayers. A coherent, medium-term strategy for personal taxation is needed which is consistent with the decisions on business taxation in the 2007 Budget. At present New Zealand’s tax policy is lacking in strategic direction and vision.


The Tax Review 2001 (McLeod Review) remains a sound guide for such a strategy. A key recommendation was the adoption of a lower, flatter income tax structure. This would reduce the deadweight costs, complexities and other inefficiencies of the present system.


Proposed tax package


To have the maximum benefits for growth, reductions in the highest effective marginal tax rates are needed, ie those that most influence the productive effort of taxpayers. The top two personal rates (39% and 33%) should be lowered and aligned with the company tax rate and related rates. This would foster greater work effort, including investment in education and training, and encourage unincorporated firms to use resources more efficiently. A reduction in the effective rate of tax (business and personal) on new equity-financed investment could be expected to increase the proportion of investment that is financed by residents.
From a growth perspective, reducing tax rates is preferable to adjusting thresholds because incentives to work, save and invest at the margin are increased. Threshold changes only change marginal rates for a relatively small number of taxpayers. (If the two top brackets were indexed for inflation since 2000, only around 15% of individual taxpayers and about 12% of taxable income payable by individuals would be affected.) Also, as the Inland Revenue Department has documented, tax thresholds induce many taxpayers to arrange their affairs in ways that enable them to avoid higher tax rates, which does little for growth.
Nevertheless, fiscal drag (the increase in revenue collected as taxpayers move into higher tax brackets) is a problem with the present scale. This is best dealt with by flattening the tax scale, as many countries around the world are doing, but adjustments to thresholds, which could benefit lower income taxpayers and others, could form part of an overall package.
This analysis suggests that aligning the top personal, company and trust rates at 30%, as the minister of revenue has suggested, in one or two steps would have major benefits for the economy and New Zealanders.


The case for not reducing higher rates (the 33% and 39% rates) on equity grounds founders when looked at alongside recent tax initiatives (eg the lower company tax rate, tax concessions and the Portfolio Investment Entity (PIE) rules) which will reduce the tax rate on much taxable income to 30%. The Working for Families and KiwiSaver schemes also provide significant tax relief for many taxpayers who earn incomes that are subject to the top personal rate of tax. Reducing and aligning the personal, company and trust rates would significantly reduce the incentives and costs of avoiding the top personal tax rate. It would also restore equity between self-employed persons and those subject to PAYE who have less scope to avoid the higher tax rates. The Working for Families scheme should also be adjusted by reductions in assistance to higher income earners (many of whom would benefit from a tax cut), a reduction in the abatement rate and possibly by introducing a universal element.


Fiscal headroom


There is scope, over time, to implement a much larger tax package than that implied in the 2008 Budget Policy Statement (BPS). The BPS forecasts suggest that core Crown operating spending will increase by 0.9 percentage points of GDP by 2011/12. Slower growth in operating spending and a lower provision for new capital spending could help fund additional tax reductions. A somewhat higher proportion of capital spending could also be funded from debt without any significant change in forecast debt ratios. The BPS forecasts take no account of the impact on growth over time of improved incentives that arise from lower effective marginal tax rates. Over the medium term, perhaps up to 40 percent of tax revenue initially forgone might be recouped from higher growth and less tax avoidance. We think that net tax reductions of up to $2.5 billion annually could be responsibly implemented in stages over the next few years.


Tax criteria


We consider the proposed package would meet the criteria laid down by the minister of finance:
· it need not involve increased borrowing for operating purposes;
· it would allow expenditure on public services to be maintained in real terms;
· it would not exacerbate inflation, which is a monetary phenomenon. Firm monetary policy is necessary and sufficient to control inflation. Growth-oriented tax cuts would have a smaller impact on prices than redistributive measures because they would increase output (reducing the problem of ‘too much money chasing too few goods’). At most, tax cuts could have a one-off, not ongoing effect on the CPI; and
· it would be unlikely to have a measurable effect on income inequality since, as the McLeod Review demonstrated, the difference between the impact on the distribution of income of a flatter tax scale compared with a more progressive one is small. Moreover, as their incomes rise, lower income people benefit from facing a flatter tax scale, and it is misleading to look at immediate (static) impacts alone. In addition, prices and wages adjust to changes in complicated ways (for example, the increase in the top tax rate to 39% in 2000 appears to have pushed up house prices) so it is difficult to say which groups might ultimately benefit from tax cuts. A general proposition is that the burden of taxes (in the form of higher prices for goods or lower wages) falls on those who have the least ability to avoid these effects, for example, by emigrating or raising their prices or wage rates. These are more likely to be the poor with limited skills than the wealthy.


Other issues


We do not support the introduction of further tax concessions. Recent moves in this direction have added to the cost and complexity of the tax system. Existing concessions should be removed or reduced.
A general tax ‘dividend’, possibly of a one-off nature, would have no incentive effects.
A tax-free income threshold should not be introduced because the revenue cost of such a move would be substantial and other tax rates, including effective marginal rates for most taxpayers, would have to be set at higher levels than otherwise. This is the Australian experience. The low income rebate is a better means of helping those in need. The case against a tax-free threshold was well argued by the McLeod Review.


A ceiling of 30% on personal, company and trust rates should be lowered in future, having regard to countries in our region such as Singapore and Hong Kong which have top rates of 20% or below.


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

Opportunities and Tax Cuts

Last week Michael Cullen gave a speech to the Auckland Chamber of Commerce. Most of the Media comment around this has focused on Tax Cuts and Auckland Infrastructure. In dissecting Minister Cullen’s Speech we actually recognise a couple of positives and opportunities for Northland as well as recognizing some warning signs in the promise of tax cuts.

The Positives

The Minister talked about seizing the enormous business opportunities that will be created by growing consumer awareness of environmental issues. Whether you do or don’t buy into the climate change theory the effects in policy and the way New Zealand Inc does business has to adapt to this changing business environment. From the Ministers Speech we recognise that there are potential opportunities for Northland to actually lead the way in promoting ourselves as the first Carbon Free Region in New Zealand. What opportunities would this lead to for your business? Do your customers – insist and deal with ‘environmentally responsible’ businesses? There are power companies in NZ now that are seeing a raft of new consumer accounts simply because they have taken steps to explain how environmentally aware they are.
The Northland Region has already signed the Sustainable tourism charter which basically says that we will provide first class visitor experiences in Northland however not at the cost of our environment now and more importantly in the future.
Another opportunity the minister alluded to was the willingness to enter into Public Private Partnerships to ensure major infrastructure is carried out. Could this assist Northland in bringing decent data connections up this way? Further roading improvements? Rail links?

In our recent local body elections the number of councilors supporting the PPP model were in the majority.

The Warnings

Recently the Chamber of Commerce and other business associations provided a submission to the Government on what they would like to see come out of the 2008 Budget in regards to taxation.

The joint proposal was based on the view that the main outcome of the budget should be a narrower gap between the top personal and company tax rates. Aligning the top personal, company and trust rates at 30% would have major benefits for the economy and New Zealanders.

The main criteria adopted by the Chamber in developing this submission were to reform business taxation in a way that would benefit New Zealand’s Economic Growth and make New Zealand Tax structure internationally attractive especially in line with Australia.
In speaking to the Chamber of Commerce last week Michael Cullen said “Labour will deliver tax cuts because it is fair - money that we do not need to meet our obligations to New Zealanders should not be held indefinitely in crown accounts”. Unfortunately Dr Cullen could not give specifics around his proposals. Therefore no indication of the amount of tax cuts, for whom and by when. In fact the ‘tax cut ‘ announcement is conditionally made on the premises of four underlying ‘catch 22 type’ principles each of which should give any Government an out of the promise over the coming years.

The Northland Chamber of Commerce has to ask this simple question. If the same Finance Minister from the same party is saying roughly the same things and pushing the same message as before the 2005 election and the result was a very timid movement on business taxation then why should the business community and industry believe that the Finance minister has any other intention other than past performance?

The Northland Chamber of Commerce would like to see BOLD commitment from our future political leaders and reemphasise the call from a multitude of business groups from the past few years namely an alignment of the top personal tax rates with the company rate of 30%.

We encourage all political parties to specifically outline the tax (cut) policy well in advance of the 2008 election so that reasonable people may be able to make decisions based on solid data as opposed to vague promises.

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

Competition for positions in Northlands biggest advocacy/networking group

The Northland Chamber of Commerce has found for a second year running an ever increasing number of business people wanting to become involved in assisting the organisation with Governance and Direction.

‘Subject to an audit on the nomination we have around 19 people vying for 14 positions on the Chamber of commerce’ said Chamber of Commerce CEO Jeff Smith.

‘We have had enquiries form businesses all over Northland including the Far North and Kaipara wanting to become part of what they believed is an organisation on the up and up’

‘Membership numbers, Income, Advocacy Roles have all increased through the 2007 year’.

‘Our AGM is happening on 27 February as we now need to look to 2008 and beyond and how the 105 year old organisation can best add value to the Whole Northland Community.

We are looking for significant growth in all areas of the Chamber operations in 2008, including membership, income, events, training and the strengthening of our far north chamber and Kaipara chamber brands. It is heartening to see so much interest among our members to assist and govern the organisation.

We encourage all our members to come along to the AGM, try out the Northland Chamber iconic signature dish, Kumara and Mussell Fritters, and vote for those people you see as best being able to lead the organisation to assist make Northland a healthy, vibrant and prosperous place to raise our Tamariki

NZ Chambers of Commerce are the countries biggest networking and advocacy bodies. Enquiries on the Northland Chamber of Commerce can be found online by going to our websites at http://www.northchamber.co.nz/ http://www.farnorthchamber.co.nz/ and http://www.kaiparachamber.co.nz/


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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/

Northland Chamber Supports JV with Ontrack


The Northland Chamber of Commerce sees the formation of a JV between the Regional Council and Ontrack NZ as a hugely positive step towards the regional vision of a rail link to the Marsden port.

This is excellent news said the Chamber CEO Jeff Smith, we are aware that the Port industry is slowly consolidating in NZ for various reasons and it would be great to see our Port as one of the major ports eventually for the country. We already have nature on our side giving us the comparative advantage of being NZ’s only Deep water port so we need to put infrastructure in place now to ensure we become a competitive option for shippers, exporters and importers.

Part of this infrastructure is the development of efficient rail links. The provision of a rail link to the port and the upgrade of the rail network from Auckland is also necessary for the future with the likely increase in rail usage caused by rises in fuel costs and ‘climate change’ issues.