Local Government Must Focus on Core Business

Media Release

14 March 2007

Local Government Must Focus on Core Business

The New Zealand Chambers of Commerce (NZCCI) have sent a message to local authorities around the country that they must focus on their core business.

This is the key message from the document, Democracy and Performance: A Manifesto for Local Government, launched this morning by the Chambers and other business groups making up the Local Government Forum.

“Local government is a vitally important institution but the activities of some councils extend well beyond their proper role”, said Wellington Regional Chamber Chief Executive Charles Finny on behalf of NZCCI.

“Some councils have neglected infrastructure such as stormwater, sewerage and roading activities and as a consequence much is in a poor state of repair. Yet some councils engage in activities such as ports, airports, farming operations, and property investment that in general should be left to the private sector.

“The Chambers and other business organisations are concerned that much local government spending and regulation is inappropriate. As a result, the level of rates in some areas is excessive.

“Rates have also increased at a disturbing pace. After taking account of an increase in population by about a quarter, real rates per head of population have grown by almost 30 percent in the last 20 years.

“We also believe the rates distribution is unfair. The business sector pays about half of the country’s total rates bill. The level of rates that businesses pay is often significantly disproportionate to the level of services supplied to them.

“As a rule, we would say that local government should focus on activities that cannot be undertaken efficiently by individuals, firms and voluntary groups, and that are not performed by central government.

“The Forum expects this document to make an important contribution to the debate around the local government sector with the Rates Inquiry currently underway and local government elections later in the year.

“Chambers around the country are likely to be active at the time of the elections and while the Forum’s document will be given to the Rates Inquiry, NZCCI will make be making a submissions on this important issue,” Mr Finny concluded.

Link to Forum’s Media Release

ENDS

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