Call for business rates to be included in inquiry

23 August 2006

Call for business rates to be included in inquiry

Business NZ has written to the Local Government & Environment Select Committee, asking for the issue of business differentials to be included in the committee’s proposed inquiry into rates.

Chief Executive Phil O’Reilly says businesses pay around half of all rates in New Zealand.

“Businesses pay the lion’s share of all rates, in differing ratios in different local authority areas. In some areas the rates burden on businesses is a severe impediment to their viability.

“Business has long called for a fair system that sees the rates burden spread more equitably across all sectors.

“Business NZ has requested the select committee responsible for the proposed inquiry to include both the business differential and the power of general competence in the terms of reference.

“The power of general competence is an issue because it allows councils to stray outside their core areas of responsibility and run enterprises in competition with local businesses. This, combined with the rating differential, has a negative impact on regional economic growth.

“We will be seeking the inclusion of both these issues in the proposed inquiry.”

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