Tauranga City Council is being praised for the effort it has made for businesses at its Annual Plan hearings this week, by the Employers and Manufacturers Association.

EMA executive officer Peter Atkinson says in many ways Tauranga is an exemplar council for New Zealand, 'and many other councils could improve with Tauranga's help and guidance”.

Peter praised the council's financial strategy that has allowed it to keep this year's rates increase at a decades-low average of 0.66 per cent.

'The strategy set out in last year's Long Term Plan (LTP) seems to be working,” says Peter.

'The council's financial position appears stable. But last year's surplus should not be carried forward, as planned, to facilitate this year's rates reduction.

'Council's own policy as stated in its Long Term Plan is for surpluses like this to be used for reducing debt – not for reducing rates.”

He asked if Tauranga Mayor Stuart Crosby is intending to set up a separate Mayor's Office, as allowed under the recent changes to local government law.

'Mayors can now appoint deputy mayors, establish committees, appoint committee chairpersons and propose plans and budgets, in the same way Auckland has done,” says Peter.

He challenged the council to demonstrate how it is integrating the new purpose statement for local governments legislated last year. It is aims at meeting the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions, in a way that is most cost-effective for households and businesses.

'Enhanced ministerial powers in the local government law changes, and also in proposed changes to the Resource Management Act will allow central Government to override council plans on certain occasions,” says Peter.

'We urge Tauranga Council to work with the Local Government Association to set new standards for council plans and reporting as the legislation requires, as this will give ratepayers a better understanding of the efficiency and effectiveness of council operations, and let them compare the results of the different councils.”

In submissions, he says there are extensive sections of new legislation that make it easier to amalgamate various units of local government.

'Expect to see requests from groups and individuals for restructuring and amalgamation,” says Peter.

The new legislation also gives the Minister for Local Government the power to oversee the affairs of a council, including the power to require information, appoint a crown review team, a crown observer, a crown manager or a commission.

The EMA supports the proposals and looks forward to progress during the coming year, as councils take them into account in their plans and reports, says Peter.

The EMA also is going to push the Local Government Association to require a consistent layout in council annual plans and reports, and set appropriate benchmarks ratios and parameters that will enable better understanding of the efficiency and effectiveness of the various councils.