Incoming councils are being urge to focus more on supporting their local business community, following the release yesterday of a new survey that reveals widespread dissatisfaction among small to medium-sized enterprises (SME) operators.
The SME sector employs the majority of New Zealanders. The latest MYOB business monitor report shows 29% of the country's SME operators are dissatisfied with the support of their local council while just 15% are fully satisfied.
MYOB New Zealand executive director Scott Gardiner says it is not a glowing report card for the country's local authorities and the survey highlighted the fact councils had a long way to go to win the full backing of SMEs in their local region.
From gaining trading consents to the myriad regulations governing how companies operated, local government had an an enormous influence over how easy it was to do business in New Zealand, he said.
''But as we have seen regularly in the MYOB business monitor, businesses around the country don't feel they have the support of their local councils.''
Otago-Southland Employers Association chief executive John Scandrett said the survey might provide some enlightenment on SME operator views in Auckland, Wellington and Christchurch but he doubted a similar level of comfort could be taken from the regional feedback components.
''Across Otago and Southland, there are more then 10 local council authorities and to run a ruler over the collective operations of all, and conclude a 30% SME dissatisfaction rating is evident everywhere, must push the boundaries of credibility.''
There would always be a range of business owners who felt ''external forces'' must carry some responsibility.
Some would say the local council should be doing more to promote the city or should ease up on building or resource consenting processes, Mr Scandrett said.
Taking Dunedin as an example, it was widely recognised it had an economic development strategy ''up there and out there'' and anyone looking at the detail would see supporting business vitality and making it easier to do business was the top focus.
Other regional local bodies had similar strategies.
''It may be the promotion and understanding of these has fallen short on some SME people being appropriately apprised of what's on offer in their own backyard,'' he said.
Otago Chamber of Commerce president Peter McIntyre said the report was damning on all councils.
''It shows how much power councils have on the business community. If councils become more efficient and concentrate on what councils are supposed to do, the impact for the national economy is huge.''
Like Mr Scandrett, Mr McIntyre praised Dunedin's economic strategy, which had a focus on job creation and economic growth.
Cities like Dunedin had ''wonderful'' infrastructure but the city needed jobs and economic growth to keep rates affordable.
Mr Gardiner said it was clear from the results local authorities in the regions needed to work much harder to support their local business community.
''SMEs are the economic lifeblood of regional New Zealand. The communities these councils represent rely on them for jobs and regional development opportunities, as well as the broad range of services they provide.
''The support of SMEs should be a major focus for councils as they shape and manage their policies.''
In the sectors, dissatisfaction with council support was strongest in the transport and warehousing industry, where 35% of operators were dissatisfied and just 4% satisfied.
Dissatisfaction was also strong in the retail and hospitality sector, where 36% were dissatisfied and 13% satisfied. Construction and trades businesses showed 30% dissatisfaction and 12% satisfied.
Satisfaction with the support of councils was highest in the manufacturing industry (16% satisfied and 28% dissatisfied) and the business and professional sector (17% satisfied and 31% dissatisfied).
Mr Gardiner said dissatisfaction was strongest where business operators relied on local government for key aspects of their business.
''It seems from the data the more SMEs have to do with their councils, the more likely they are to be expressing dissatisfaction.''
