It’s encouraging to see that the way local government is funded is being reviewed, however it is crucial that any potential changes aim to create a fairer system of revenue gathering, the Motel Association of New Zealand (MANZ) says.
The review announced by Local Government New Zealand could be a good way of ensuring those who provide commercial accommodation and yet avoid the full scope of regulation and charges are brought into any new funding regime.
“In the current environment we have the likes of Bed and Breakfast and holiday home providers who are dodging their fair share by not being subjected to the same rules and charges levied by local government,” MANZ Chief Executive Michael Baines says.
“Bringing these bludgers into line with the rest of the commercial accommodation sector would be a good starting point for any review.”
But the most important aspect of this review will be ensuring that the local government funding base is spread more evenly, rather than using this exercise as a way to levy additional charges on struggling businesses.
“For the past several years small businesses such as motels have suffered under an ever-increasing burden of charges levied by local government across New Zealand,” Mr Baines says.
“Many small businesses are being pushed to the brink by the increases in their cost base in recent times, so it’s important that this review is about everyone paying their fair share.”