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Motel Association Local Government Act 2002 Submission

Motel Association Local Government Act 2002 Submission

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Published by: Motella Blog on Jul 10, 2010
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Local Government Act 2002 Amendment Bill Motel Association of New Zealand Inc P O Box 27 245 Wellington

Michael Baines Chief Executive
Phone Fax Email (04) 499 6415 (04) 499 6416 motel@manz.co.nz

Introduction We appreciate the Government’s commitment to address the issues that surround what is one of the most powerful and costly organisations that members of the Motel Association deal with. It is important to remember that Local Authorities wield significant power in their communities and can create great inequities and cost burdens on small and medium enterprises. This is done through unintended outcomes and in many cases commercial naiveté. By Local Body design and by market imperative, Motels are located in areas that are easy for travellers to identify and access. This means that they are located on main roads and or arterial roads. These are normally areas of high traffic volume; this is recognised and catered for. Motels offer a 24 hour service and are run by small business owners who live on-site. Typically the owner’s quarters are at the front of the property to ensure that all guests are met and processed quickly and efficiently without disturbing any other guests. Our issues are that Local Authorities be compelled to address commercial inequities where they are created by the Local Authorities actions and or policies, and that the costs that they impose on small and medium businesses are right and proper. It is our belief that good legislation complies with four standards 1. 2. 3. 4. The law must be accessible i.e. people need to be aware of it and be able to readily obtain it. The law must be understandable i.e. it is clear and precise so that anyone that reads it understands its meaning. The law must be fair; it must reflect the requirements of the community as a whole and ensure that their needs are met. Finally the law must be enforceable. Acts that cannot be, or are not, enforced are not worth the paper they are printed on!

The Motel Association represents 1003 members in all areas of New Zealand. The Motel Industry sells approximately 35% of the bed nights sold in New Zealand annually, making it the largest provider of commercial accommodation in New Zealand. Our members are all SMEs making the Association one of the largest groups representing small businesses. We host 11,000,000 bed-nights a year with 8,000,000 being to New Zealanders and 3,000,000 being international visitors. Approximately 30% of the industry’s customers are people doing business in the community where they stay, making Motels a very important part of the infrastructure supporting the New Zealand regional economies.

Motel Association of New Zealand Submissions: Local Bodies Amendment Act

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Specifics We would like to see the following addressed by the legislation; 1. 2. 3. 4. That Councils alter policies where different areas of the same industry are given a cost advantage by council actions. That Councils rating policies recognise domestic rating for domestic portions of commercial accommodation providers. That Councils recognise how their actions related to Roading and service provision can financially impact on commercial accommodation and recompense accordingly. That Councils cost allocation and recovery polices are fair and reasonable.

We believe that requiring councils to take the above into consideration will go a long way in allowing them to work with their commercial communities to provide a business friendly environment! Summary Motels operate in high traffic areas for visibility, access and zoning reasons. Any disruption to access and or the creation of adverse environmental situations does have a tremendous impact on Moteliers. It should also be noted that many councils in New Zealand allow forms of commercial accommodation to operate as domestic dwellings, thus offering those businesses tremendous cost advantages and, also, the ability to operate in buildings that would not be considered safe for traditional commercial accommodation providers. Councils have been given the opportunity to recover costs associated with the processing of actions and functions that they impose. There is no mechanism to know whether these charges are fair and reasonable or even necessary. If these processes already exist there has been no reduction in general rates to show that these functions are no longer funded from that source. We would welcome the opportunity to speak to our submissions.

14 June 2010 Michael Baines Chief Executive

Motel Association of New Zealand Submissions: Local Bodies Amendment Act

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