Still Nothing Super About Councils For Business

Media release: 27 September 2011

Still Nothing Super About Councils For Business

• Almost half of New Zealand business owners dissatisfied with local government

• Auckland Super City fails to impress with 43% dissatisfaction

• North Island regions most unhappy with their councils’ performance

Local authorities in New Zealand aren’t doing enough for business, with 42% of Kiwi business owners unhappy with the support from their council, according to the latest MYOB Business Monitor.

The survey of over 1000 business owners from around the country found that only in Wellington is satisfaction with council performance (21%) approaching the level of dissatisfaction (27%) among business owners. Overall, levels of satisfaction with local government have fallen across the country since the last Monitor survey, down 8% since April.

Dissatisfaction is highest among businesses in the north and central North Island region, with Waikato and Taranaki labelled the least business-friendly local authorities. 48% of businesses in those regions are unhappy with their council’s performance, followed by Northland (47%) and Hawke’s Bay (45%).

Despite the establishment of a single local authority, the Auckland Super City has failed to win the support of the region’s business owners, with dissatisfaction up 1% to 43% since 2010. Only 9% of Auckland business owners say they are satisfied with the performance of the Super City council.

After best-performing Wellington, support for a local council is highest in quake-stricken Christchurch, with 15% of business owners in the region happy with the Christchurch City Council’s performance. While still high, dissatisfaction with the CCC is also lower than the national average, at 38% – level pegging with local authorities in Otago and Southland.

MYOB general manager Julian Smith says local councils seem to be out of touch with the needs of business around the country.

“With nearly half of the country’s business owners expressing dissatisfaction with their local authority, and frustration growing over the last 12 months, its clear that there is a major disconnect between what councils are achieving and what businesses expect of them,” says Julian Smith.

“Our local councils seem to be losing sight of the fact that to be successful cities, town and regions, they must also be good places to do business, to sustain local economies, attract employment and encourage private sector investment in events, attractions and entertainment.”

“From the feedback we have had from businesses around the country, council delays, regulation and compliance costs are a frequent source of frustration, with the performance targets councils set themselves simply not meeting the standards of business.”

Mr Smith said the Government’s decision to step in to manage Auckland’s party central has highlighted the some of the issues New Zealand’s largest local authority has with meeting the expectations not just of the public but also the wide ranging commercial interests engaged in the Rugby World Cup.

“Behind the stories of delays and overcrowding, it is also a very clear illustration of how a number of bureaucratic failings compounded to become a missed opportunity for Auckland business.”

“With dissatisfaction growing with councils around the country, perhaps it is time to take a good look at the role of our local authorities, and see what can be done to get them working better for business.”

How they rank: Business satisfaction with local / regional council support

Region Satisfied Dissatisfied

Wellington 21% 27%

Manawatu-Wanganui 13% 20%

Christchurch 15% 38%

Otago & Southland 10% 38%

Auckland 9% 43%

Bay of Plenty 6% 40%

Taranaki 13% 48%

Northland 11% 47%

Hawke’s Bay 6% 45%

Waikato 8% 48%

MYOB Business Monitor LeagueTable | Business satisfaction with local council support (ranked by difference between satisfaction and dissatisfaction)

Source: MYOB Business Monitor, n = 1000, Research conducted by Colmar Brunton for MYOB NZ Limited, September 2011

MYOB Business Monitor Research Library | © MYOB NZ Limited, 2011, All Rights Reserved

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