Business backs bid for local government reform

Media Release
12 June 2013

Business backs bid for local government reform

Amalgamation of councils in the Wellington region would greatly improve decision-making and strategic capacity, and increase efficiencies, Wellington Employers’ Chamber of Commerce President John Milford told Greater Wellington Regional Council today.

He was presenting the Chamber’s submission on the council’s application to the Local Government Commission for local government reform.

“Our surveys have consistently shown that around 70% of Wellington businesses support for some form of amalgamation. This percentage has increased in recent months as the debate has picked up, with the most recent, just last month, showing 76% support.

“We’re concerned that Wellington could become politically marginalised if it is not able speak with a single, consistent voice.”

Mr Milford said a regional approach was needed if decision-making and the development of world-class infrastructure was to be improved.

“A single set of rules for businesses and developers operating across the region would reduce the time and effort now needed to understand the plans and standards required by each of the nine councils.”

He said he was aware there were likely to applications for different amalgamation proposals.

“The Chamber’s main objective is to achieve some form of region-wide amalgamation, and our preference to this point has been for a two-tier model.

“We realise there will be more debate as the options get clearer and we fully intend to be part of that debate.

“In any form of amalgamation we need to guard against the creation of a large bureaucracy – and any resulting rates and spending rises – which is a risk under both amalgamation options, despite the countervailing efficiency gains.

“Savings, in general, must be passed back to ratepayers – a reduction in rates must be the ultimate goal.

“It’s also essential that protections are put in place to prevent the region using the Wellington CBD rating-base as a cash cow. The city’s large commercial rating base must not be allowed to subsidise other parts of the region as the regional rate collection is re-balanced. As it stands, the Wellington business sector already pays 28% of the region’s rate-take.”

Mr Milford said a move towards more user pays and targeted rates in place of general rates was the best way to mitigate the effects of rate redistribution pressures.

ENDS

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