Media statement            Thursday, May 15, 2009

Hamilton Council urged to invest more in tourism, boost productivity

EMA Waikato has urged Hamilton City Council to restore its investment in the region’s tourism activities.

In a presentation to the Council on its planning proposals the Employers and Manufacturers Association (EMA Waikato) which represents 324 local businesses, also urged the Council to push forward on plans to cut operational costs and improve productivity.

EMA Waikato chairman Jack Ninnes told the Council that it should invest more in the region’s Tourism Information office as it used to in 2006. He said there were many wider business benefits from doing so.

EMA Northern’s Executive Officer Peter Atkinson told the Council that it should be aiming to cut its annual rates increases further, below those now proposed of 4.98 per cent for 2009/10, 5.44 per cent for 2010/11, and 5.50 per cent for 2011/2012. 

“Inflation for the last quarter was  negative 0.5 per cent,” he said, “which should make it easier for council to lower rates.

“The key point however, is that Council needs to pursue productivity improvements in its operations, rather than resort to increasing rates and user fees.

“Service levels can and should be maintained as far as possible while costs are held – this is what businesses have to do in the face of difficult circumstances and this is what Council needs to do as well.”

“For capital expenditure it’s a different story. We don’t want council to defer capex as it is critical for investment that improves regional productivity is carried out at this time. Deferring capex creates a backlog that has then to be dealt with later in the future.

“The council has still not had the courage to make the change to Capital Value rating with no differentials,” Mr Atkinson said.

“This is what the Shand rating review recommended, and progressive councils such as Tauranga, Auckland and Manukau are now adopting this system.

“As a leading local authority Hamilton City needs to do the same”.

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