15 April 2020

Media: NZME (Rotorua Daily Post and BOP Times)

Topic: Government's COVID-19 tax package for SMEs

Enquiry

I am hoping to get the mayor's comment on the new $3 billion tax package announced by the Government this morning. I have included details of the announcement below for her response:

"The Government has announced a range of new support measures for small and medium-sized businesses, including a $3.1 billion tax relief package. The tax scheme is "a loss carry-back mechanism" which enables a firm to offset a loss in a particular tax year against a profit in a previous year, and receive a refund of the tax paid in the previous profitable year. It is estimated to cost the Crown about $3 billion over two tax years and is the first significant new support measure on top of the $20 billion programme already underway.

Other measures announced this morning include changes to the tax loss continuity rules - estimated to cost $60 million and funding for $25 million worth of business consultancy support.

There would also be new rules allowing greater flexibility for affected businesses to meet their tax obligations and measures to support commercial tenants and landlords, which involves extending the timeframes required before landlords can cancel leases and mortgagees can exercise their rights to sale or repossession.

The changes would still allow landlords to cancel leases and mortgagees to exercise their powers during the period that an epidemic notice is in force, but would allow for more time for breaches or defaults to be remedied."

My questions to the mayor are:

• How will this help Rotorua's small to medium businesses as we head into the second half of the lockdown and beyond?
• Do you believe $3billion is enough? Why/Why not?
• Are landlords and tenants receiving a fair amount of support? Why/Why not?
• Also, Tauranga's mayor Tenby Powell is calling for the immediate, staged reopening of small businesses, post lockdown, to "save thousands of jobs and mitigate the potentially irreparable damage that will be sustained to our economy if we don't open New Zealand for business again quickly". What is the mayor's response to this? Does she believe the same for Rotorua?
• Please add anything else you would like to say here:

Response

From Mayor Steve Chadwick:

Just as the situation for each district is different, the situation for each business will also be different and I'm sure that all business owners are looking at their own situation and making decisions accordingly. How far the $3 billion package will go is not something I can calculate given the different circumstances people face but it's good to see a variety of assistance packages being made available to help soften the impact for as many as possible. Rotorua Economic Development (RED) is helping our local businesses to navigate the assistance that is available and I would encourage locals to contact them to ensure they are able to benefit from the support that is available for them. Right now we remain in the stamp it out phase of the Government's COVID-19 response - that's about saving lives and I support that approach. We are also very aware there are livelihoods on the line and that our business people are keen to return to some form of normality as soon as possible and that's what everyone is working towards. This is not an easy time for anyone and there are still too many unknowns to accurately predict what our communities or economy will look like when we come out the other end. As a council we are doing everything we can to facilitate and support a rapid and effective recovery.

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Media: Rotorua Daily Post

Topic: Pay cuts

Enquiry

I am seeking a response from the CEO on the announcement this afternoon that Government ministers and public sector chief executives will be taking a 20 per cent pay cut.

Apologies for the tight deadline as this has just come through to us.

CEO

• Will you be taking the pay cut?
• What are your thoughts on having to take this cut?
• How will it affect you?

STEVE

• Tax payers union is calling for mayors and councillors to take these cuts too. Will you take a 20% cut for six months too?
• Why/why not?
• Will you be asking councillors to do the same?

Response

Reporter was asked to clarify her questions regarding the CEO. The reporter confirmed that the pay cuts were for public sector CE's not local government. Her enquiry was revised to include Mayor Chadwick only.

Response from Mayor Steve Chadwick:

We have not as yet had a discussion about this as a Council.

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Media: NZME (Rotorua Daily Post and BOP Times)

Topic: Call for submissions to Crown Infrastructure Partners for funding of 'shovel-ready' projects

Enquiry

Can we please find out if the council is applying for the Government's Crown Infrastructure Partners Economic Stimulus Process?

Tauranga City Council held an emergency meeting of its elected members yesterday, who voted to apply for the funding https://www.nzherald.co.nz/bay-of-plenty-times/news/article.cfm?c_id=1503343&objectid=12324711 . We'd like to know if RLC has or is doing the same and if it is possible we'd like to see a copy of RLC's submission, which TCC made available via its agenda.

Can you tell us if elected members have already met regarding this and if so, when? If not, when are they expected to?

We'd also appreciate some comment from the mayor or chief executive about this. Specifically:

• Why is, or isn't, RLC applying for the support?
• If it is, what projects is it asking support for and why, and how much money is it asking for?
• If it is not, why is this and how will the council fund projects without it and what will those projects be?

Response

From Mayor Steve Chadwick:

Bringing projects forward where that is prudent and feasible is part of Rotorua's Build Back Better economic recovery plan and that is reflected in the projects that have been identified and submitted by our Council to Crown Infrastructure Partners for funding consideration. Each project would provide economic stimulus in the form of providing work and jobs.

Projects submitted include already planned airport business park developments; projects included in our long-term plan such as wastewater schemes and Aquatic Centre redevelopments, along with roading and stormwater infrastructure projects that would enable urban land development. We have also looked at added value for our PGF-funded lakefront and forest developments, both already underway and aimed at improving these key community facilities and providing the foundations for economic benefit through private investment.

We've had to move fast on this but all of these projects have the potential to provide economic stimulus as well as real and long-term benefits for our district.

The funding we've sought for what we have submitted totals about $210 million and we'll share more detail about these projects with our community in the coming days.