Motels have been disproportionately targeted, seemingly based on a perceived ability to pay rather than actual use of goods and services.
It is obvious that the motel industry has a vested interest in the efficiencies of local government and needs to identify and focus on reducing the rating burden for motel businesses with effective lobbying and advocacy.
Rodney Hide's proposed fix is the Local Government Act 2002 that has three main principles:
- that local authorities should operate within a defined fiscal envelope:
- that local authorities should focus on core activities:
- that local authority decision - making should be clear, transparent and accountable.
We have identified three main trade organisations that have gone into bat for motel businesses and we have critiqued each of their submissions to the select committee considering this important legislation.
We have provided links to the actual submissions made and we encourage you to spend time reading the contents.
We have also subjected each submission to a rigorous assessment process and have awarded a "Motella Mark" star grading out of a possible five stars that gauge the professionalism and validity of the content.
Business NZ Their submission is available to view: HERE.
The submission takes a very clear and principled position that is consistent with the conversation they have been having with their membership for some time.
Main points include:
- Local government's core business should be prescribed.
- Reduction of differential and targeted rating.
- 30% cap on Uniform Annual General Charge be increased or removed.
- Rate levels should be relative to the benefits received not ability to pay.
- Consideration of asset sales
- Greater use of user charges
Overall a solid submission that we have awarded a 4-star "Motella Mark."
Tourism Industry Association of NZ (TIA)Their submission is available to view: HERE
Although the TIA is an affiliated member of Business NZ they do not support the premise that local government should be required to focus on core activities.
TIA wish to give local government plenty of wriggle room to subsidise tourism activities. From a rational business perspective this is a difficult position to qualify and TIA may be at risk of not being taken seriously by appearing too self-serving.
Not surprisingly, TIA are therefore generally supportive of targeted rates, however they also support user charges.
We would like to see the TIA acknowledge that they are serving small business owners that feel the pain of local government inefficiencies and rate burdens. We say that lessening the rate burden would reap better returns to tourism businesses than the minimal returns from much of local government's tourism welfare expenditure.
We feel that the TIA may have to further develop the argument that local government should continue to prop up the tourism industry by at least conceding that this should only be done when there is a proven benefit for the community as a whole.
TIA have recommended that the bill not proceed.
Overall an average submission that we have awarded a 3-star "Motella Mark."
Motel Association of NZ (MANZ) Their submission is available to view: HERE
What can we say?
The page and a half of confused rambling took us through a roller coaster of emotion. First horror, then sadness, followed by sympathy and ended in anger.
We believe that the submission speaks volumes; not about the proposed Local Government Act, but points towards serious dysfunction and lack of acumen of an organisation.
It is heartbreaking to see a once proud organisation become a laughing stock with little credibility.
Overall this submission is a joke that will at least give the select committee some light relief from trawling through the hundreds of more weighty submissions.
We have been generous and have awarded a 1-star "Motella Mark" because be kinda like the new MANZ logo used to fill the first page;-)
