Media Release – 22 February 2007

Chamber welcomes WRS Outcome

The Wellington Regional Chamber of Commerce welcomes today’s vote by the Greater Wellington Regional Council on the Wellington Regional Strategy. The Chamber looks forward to working with the Greater Wellington Regional Council on taking the strategy forward. The Chamber CEO Charles Finny today addressed the Greater Wellington Regional Council before it took its vote. The following were his comments:

“The Wellington Regional Chamber of Commerce is grateful to have this opportunity to address Regional Councillors in advance of your consideration and vote on the Wellington Regional Strategy.

Can I begin by stressing that the Chamber wants the region to agree on a growth strategy. We have never opposed the strategy, rather we have been focusing our efforts on making this the best possible strategy. We don’t think that we have yet achieved the best possible strategy and we are pleased to see that a significant number of the suggestions that we and others involved in the consultation and submission phases of the strategy have made on improving the strategy have made it into the recommendations in front of you today.

With regard to the fact that Councils representing so many rate payers in the region have not been prepared to endorse rating increase for this activity, and that at least one Council has much wider concerns we have to express disappointment . We have some sympathy with some of the concerns raised by Hutt and Upper Hutt but we disagree on how best to accommodate these concerns. We think it better to allow the strategy to proceed, but with the clear understanding that further improvement is needed and that the Chamber needs to be a full participant in all relevant processes from now on.

The strategy should have full support from all Councils in the region and from all Regional Councillors. We expect that your vote today should be a strong one in favour of continuing development of the strategy and beginning work on implementation. We need a clear statement of unity from the region and we would like to see the Regional Council taking a lead in setting this example. For us to deliver on our economic potential we are going to need strong leadership and bold vision.

It is a concern for us that three of the nine Councils sponsoring the Wellington Regional Strategy have not been prepared to endorse the rating proposals surrounding the strategy. We too have concerns, relating largely to the weighting being proposed business rates. We also do feel that it is unwise to set a rate before the strategy has been finalized. How can one possibly know what the strategy is going to cost to implement when there is clearly so much work to be done to finalize a strategy? Moreover, we have views on delivery, which we will be making over the next few weeks that suggest that it might be possible to deliver all the desired outcomes for the WRS at a cost that is considerably less, than that which is currently on the table. This would mean that the proposed rate impact would not need to be as great as is envisaged. That said, we understand the complications that delaying decisions on rates increases would cause in terms of the requirements of the Local Government Act 2002. The Chamber is therefore content to see decisions taken today, but with a clear understanding that these are ceiling levels that are being set and that review is possible, as the shape of the WRS becomes agreed, and as those responsible for delivery work through all the options available for optimum delivery.

Turning to specifics we welcome the consideration given to our many suggestions for improving the Wellington Regional Strategy and for accepting our offer of support for further refinement of the strategy. Adopting our suggestions on maintaining existing businesses is both encouraging and very relevant given potential moves by Telecom. Likewise the further work proposed on understanding the economic make-up of the region is to be welcomed.

We think that 4% growth remains a valid goal. Our issue has been that the strategy as proposed won’t get us there. We recommend against tinkering with the goal. We want to work with local Government so that a strategy is developed that can meet the 4% goal.

We oppose strongly suggestions that the region adopt a goal of achieving carbon neutrality. The fact that the Government has announced this long term intention is worrying enough, let’s not compound the folly as a region. Why a folly? Where is the cost/benefit analysis? Until you do one, don’t even think about adopting such a goal.

We are pleased at recognition being proposed for the role being played by the port. We were making the point in our submission that we also need to be developing a coastal shipping strategy. This point seems to have been lost.

We remain open minded on the shape of a regional EDA, but continue to be attracted to a model which will allow sub-regional delivery (eg the retention of Go Wairarapa, Business Porirua etc) and functional delivery – tourism, education, investment, business parks/centres of excellence. We have some ideas which we will share shortly with those entrusted with the design of the EDA some ideas which might actually allow a combination of both approaches. This should not stand in the way of establishing a board to run the new EDA, rather they reflect different ideas on how the EDA should deliver the desired outcomes. We think that our ideas can deliver the desired result at a considerable saving to the region. The comments on the centralisation model apply equally to the field of incubators, where we see absolutely no justification for you today to be confirming the concept of “consolidation”.

We have many other comments but these can be worked through in due course.

Can I conclude by repeating that the Wellington Regional Chamber of Commerce wants a Wellington Regional Strategy that takes us to 4% growth per year compound. We are happy to work with local and central Government to achieve this goal – so long as this is a genuine collaboration. It is only through collaboration at all levels that such a goal can be achieved. Local Government can’t achieve this type of outcome alone. Indeed even after a new EDA structure is established, local Government is only going to one of a number of players in this field, and that the principle delivery agents are going to be the region’s goods and service producers.

We wish you well with your deliberations today. We want the Wellington Regional Strategy to be alive at the end of today, and I repeat, that we are expecting this Council to show leadership and demonstrate regional unity on the need for this strategy to succeed. Whatever you decide today, remember our offer of support. If you do involve us fully, we can be extremely helpful to you.”

ENDS

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