Waikato Chamber of Commerce and Industry Inc. (WCofC)
Submission to HCC on 13/14 Annual Plan
Thank you for the opportunity to submit to the Hamilton City Council Draft Annual Plan on behalf of
our members and the business sector in Hamilton. This follows the Waikato Chamber of Commerce’s
submission on the HCC 2012-2022 Draft 10 Year Plan (19 April 2012).
The WCofC is a ‘not for profit’ Organisation representing the SME and business sector across the
greater Waikato and Hamilton City. Our objectives are to, through our services, advocacy and
collaboration, retain, grow and attract businesses and people to the region.
Balancing the Books
We fully support Hamilton City Council (HCC) capping its debt at $440 Million, and selling non-core
assets to reduce the debt load. We acknowledge the progress in this direction and reinforce it should
be a top priority to achieve budget surplus in 2017 for the City to ‘live within its means’.
The rewrite of the Local Government Act 2002 occurred in December 2012. The new purpose of
local government is stated as “to meet the current and future needs of communities for good quality
local infrastructure, local public services, and performance of regulatory function s in a way that is
most cost effective for households and businesses”. “Good quality” is defined as efficient, effective
and appropriate to current and anticipated future circumstances. To ensure fiscal discipline WCofC
strongly recommends HCC focus on their core business and reduce non-core spending.
Capital & Revenue
HCC should review its entire property and investment portfolio. Those assets not producing efficient
benefits for the community or businesses, and/or non-core assets should be sold. The proceeds from
these sales should be used to reduce the City’s overall debt.
We support HCC investigating alternative asset ownership models (like other NZ Councils have), i.e.
Council Controlled Organisations or (partial – whole) private ownership. Just because an asset is not
on HCC’s asset register (costing rate payers), does not mean it can’t continue to provide suitable
services and/or community benefit. Such assets to be considered are Theatres, Claudelands Event
Centre and Pool Complexes.
The current draft of the 10-year plan proposes a rate increase of 3.8% per annum. Compounded this
equates to a 45.2% rate increase over the next decade, with a proposed reduction in the HCC
services provided. WCofC is disappointed (despite intended $15M savings predicted by 2017) that
regardless of a steady annual rates increase, the level of service decreases, which suggests HCC
should focus strongly on continued innovation and efficiencies.
WCofC is in favour of the introduction of cost recovery for the provision of some services, such as
the City’s water supply and waste management.
Other NZ Cities have proven by the introduction of metered water (all domestic and commercial) a
significantly beneficial change in consumer behaviour and reduction in annual demand, thereby
reducing the pressure on Hamilton’s water supply (which is particularly pertinent given the current
drought) and the downstream pressure on wastewater treatment (potentially delaying the need for
new plants and infrastructure). User pays kerb side rubbish collection has proven to be a far more
equitable and fair system than the current (general rates charge). Plus user pays both reduces waste
going into landfill and increases recycling.
City prosperity (& attracting business)
Instead of the HCC Economic Development Unit (at a cost of 2% of total rates collected), WCofC
would like to propose a joint venture governance model, with experienced/reputable business
owners, local TLAs, and the WCofC to lead and encourage economic growth for the city (and
Waikato region). The results of current and past Economic Development Units remain unclear.
This type of regional economic model is getting tangible new business and investment results for
other regions in NZ.
We support Hamilton’s aspiration to be a “smart city”. However as we (and HCC) are competing with
other TLAs and cities we also need to position ourselves as a very business (& investment) friendly
city. WCofC suggests partnering/contracting a “business broker/facilitator” to manage and improve
the experience of new businesses, developers and investors looking to Hamilton (and the Waikato
region). Organisations like our own could assist HCC with this initiative.
Local Government Amalgamation
WCofC supports the amalgamation of units of local government in the Waikato into a new unitary
entity. This provides an opportunity to consolidate TLA balance sheets, integrate fully shared
services and infrastructure, plus an opportunity for a new regional and consistent approach to policy
development and decision-making. Local government amalgamation in the Waikato will provide
regional strength nationally (especially with Auckland) increased efficiencies in service provision,
provide economies of scale, greater borrowing power and go towards one regional voice.