Business associations to be governed by residents

Media release

Newmarket Business Association

Monday, 24 May 2010

Business associations set to be governed by well meaning residents

The future governance and role of Auckland's 41 town centre organisations has taken a step backwards with today’s report back of the Local Government (Auckland Law Reform) Bill, according to the head of a key Auckland business association.

“We wanted to keep a direct relationship with the main municipal authority which would be the new Auckland Council. That’s what we’ve always had and the region's business districts deserve nothing less. However we're about to lose considerable access to the top and potentially our self-determination. This move sadly means a loss of local autonomy,” says Cameron Brewer, chief executive of the Newmarket Business Association.

“We’re now told from 2012 future decisions in respect to business associations will be made by local boards. That is code for well meaning local residents, elected to a board in October, will soon being able to call the shots on how business areas run their business associations.”

Mr Brewer said he has recently been advised from the Auckland Transition Authority that 'existing rating policies will carry over to June 2012 until reviewed as part of the 2012/22 LTCCP.' From then 'future decisions in respect to BIDs (Business Improvement Districts) will be made by appropriate local boards.'

"I suspect the non-performing business associations will get the axe when everything's up for review in a couple of years. That's possibly not a bad thing, but what it actually shows is that local businesspeople will no longer ultimately control their own business associations. Local boards will. What's more, local boards will potentially start viewing business associations as cash cows to help fund the likes of infrastructural upgrades – when the likes of town centre upgrades have traditionally been funded from general rates.

Mr Brewer said the “Third Bill” spells out ( p5) that decisions for local boards would cover 'local centre branding and marketing strategies, targeted rates for local main streets and Business Improvement Districts, representation of the local board on main street associations and BID programme executive boards, and projects initiated by local main street associations and BID programme executive boards.'

“We are disappointed that our primary political relationship will no longer be directly with the main municipal authority but rather fall under a local board. Given the critical role business plays in country's most commercial city we were not expecting to be pushed down the pecking order. It's insulting.

"We've always had council and community board representation around our table and that is helpful. However we're not used to an outside board being given the authority to call the shots on decisions around the targeted rate, marketing and branding, and what projects we should engage in.

"Business associations were set up by business communities who have voted to support a targeted rate. Let’s not forget that its local businesses that are paying the targeted rate and so they should ultimately decide how and where the money is spent.

“For us in Newmarket it could mean that a group of Ponsonby residents elected to the our local board end up dictating the look and feel of the Newmarket Business Association. Our forefathers who set up our business association as a fiercely independent organisation in 1937 must be rolling in their graves,” says Cameron Brewer.

Ends

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