Closer link to council urged

Bay of Plenty businesses share a national dissatisfaction with the support received from local authorities, but changes are afoot in Rotorua to build stronger relationships between the council and the business community.

Owners of 1000 small and medium-sized New Zealand businesses were surveyed by MYOB, with almost half saying local authorities were not doing enough to support them.

Only 6 per cent of Bay of Plenty businesses were satisfied with their councils - joint lowest level with Hawke's Bay - with 40 per cent of owners saying they were dissatisfied, putting the region sixth of the 10 regions.

MYOB general manager Julian Smith said the results showed local councils were out of touch with the needs of business around the country and had lost sight of the fact that successful cities, towns and regions also needed to be good places to do business.

The survey does not break satisfaction levels down to individual authorities, but Rotorua District Council economic and regulatory services group manager Mark Rawson acknowledged the need for closer connections between business and local government, saying this was the basic principle behind the creation of the new Economic & Regulatory Services Group and the Rotorua Tourism Committee and the development of Rotorua's new Sustainable Economic Growth Strategy.

"As a council we are one of the main influencers of the district's economic development environment and we need to play a proactive role in stimulating business activity and growth, but we're not the only one."

Rawson said collaborative partnerships with organisations such as the Rotorua Chamber of Commerce, Waiariki Institute of Technology, government agencies and the business sector, were vital in creating a more positive economic environment.

"Our message to business is simple - work with us through this phase of change. We share the same objectives for this community and Rotorua has a much better chance of economic success if we continue down a path of cooperation and collaboration."

Chamber of Commerce chief executive Roger Gordon agreed positive steps had been made in this direction, saying Rotorua District Council was the only authority in New Zealand to bring economic and regulatory services under the same group manager.

"I actually believe that council is now on the right track in looking to forge a partnership with business to drive Rotorua forward."

But he said it would take some time before the changes would produce results.

From discussions with various business sectors, Gordon suggested a number of factors that could be contributing to dissatisfaction levels, including concern about the high level of business rates, caused by the 3.6 business differential, and the council's backtrack on its decision to progressively reduce this differential.

He pointed to "considerable evidence" of difficulties with building and resource consents and worries about the high level of property vacancy in the central business district, stagnation of population growth, council involvement in the commercial arena and safety and security environment in the CBD.

"Smaller business put much of the responsibility for these characteristics of our city firmly at the door of the local authority. How much that is the solely the case is debatable."

Gordon suggested the council should conduct a survey of business rate payers, similar to its annual survey of registered ratepayers, which indicates high levels of resident satisfaction.