The Wellington Employers' Chamber of Commerce is urging Wellington City Council to constrain its spending rather than increase car parking charges as it meets this week to deliberate on its Annual Plan. Two sets of economic data released today reinforce the need for tough decisions.

“Businesses and Wellingtonians generally are strongly opposed to the proposed charges which will make Wellington the most expensive city in New Zealand to park in,” said Chamber CEO Ken Harris.

“With ample free parking in suburban shopping malls, the proposed fee increase and extension of hours will damage the vibrancy of the central city. It is too easy for people to choose to shop elsewhere or dine at home.

“The parking increase is not justified by the council’s own occupancy and turnover targets nor on the grounds of cost recovery or inflation.

“Statistics New Zealand retail sales data released today shows that across the North Island, the retail sector is starting to recover. But with Wellington at the lower end of that recovery and the fallout from public service restructuring starting to bite, now is not the time to cut off that recovery with short-sighted decisions.

“Also released today are statistics showing the extent of local government expenditure and rating increases across the country. While Wellington City Council performs better than most councils, the data release is timely as it reminds us of the cost-plus mentality that is prevalent in local government and the need for restraint.

“When businesses face cost increases they have to absorb them especially in today’s economic climate. They don’t have the luxury of passing on cost increases, the way that local government does. That Wellington City Council justifies some of its rates increase on the rising price of bitumen, for example, is unacceptable.

“The council must abandon the proposed car parking fee increase and look to fund the revenue foregone out of further efficiencies and spending constraint,” Mr Harris concluded.

ENDS

© Scoop Media