Northland firms upbeat about economy

Business owners elsewhere in the country might be glum - but they're all smiles in Northland.

A recent survey by the Northland Chamber of Commerce shows the region's businesses are a lot more upbeat about the economy than their counterparts in other provincial centres or in Auckland.

And 72 per cent, almost three-quarters, of business owners believed their businesses would improve during the next six months. That compares with 61 per cent in Tauranga, 53 per cent in Waikato, 58 per cent in Rotorua and a mere 48 per cent in Auckland.

Just three months ago, only 49 per cent of Northland businesses were upbeat about their prospects for the next six months.

Of the more than 500 businesses interviewed in Northland in the past fortnight, 37 per cent expected the general economy to improve while 18 per cent thought it would get worse.

However, difficulty in recruiting skilled and experienced staff continues to bug many businesses.

Lawyer Ian Reeves, of Henderson Reeves Connell Richworth, said things looked positive in the North.

"I'm not aware of anybody putting off staff. Most of the businesses I've had contact with plan to maintain or increase their activity."

Chartered accountant Andrew Preston said migration to Whangarei had given the economy a boost.

"A lot of people are coming here from overseas, for proximity to the beaches, facilities, less traffic hassle."

He said Northland's economy had been steady thanks to a stronger dollar and good performances by the dairy and meat sectors.

Dawn Mason, of Tutukaka's Marina Pizzeria, said good weather had helped business during the school holidays - but it was hard to attract chefs because many were lured by Australia's better working conditions.

While the picture looks rosy in other sectors, the dairy industry faces low milk prices.

Ruatangata dairy farmer Bill Shepherd said price prospects looked disappointing because Fonterra would not be able to pay more than $4.05 per kilogram.

"We had a difficult winter and it got wet early ... the spring's looking very good weather-wise but the price prospects are disappointing."

The survey found 33 per cent of Northland business owners thought interest rates would rise over the next 12 months while 22 per cent believed they would drop.

Chamber of Commerce chief executive Jeff Smith said a wide range of people, including mechanics, lawyers, accountants and retailers, had been surveyed.

"This result suggests chamber members in provincial centres as a group are defying the negative talk that is persisting in certain quarters," he said.

- NORTHERN ADVOCATE (WHANGAREI)