Editorial: Business bodies' merger a blueprint

OPINION: The upcoming merger of the Wellington Regional Chamber of Commerce and the Employers and Manufacturers Association central division should serve as a lesson to other organisations in the Wellington region, notably local authorities and hospital boards.

The chamber of commerce and the EMA have traditionally served different roles. The chamber acts as a voice for business in the region, lobbies decision makers and provides its members with networking opportunities; the association offers its members practical business support, particularly in the area of industrial relations. But, inevitably, there are areas that overlap.

By merging their back office operations the two business organisations will reduce their costs (by up to 40 per cent for businesses that are members of both organisations) and give business a stronger voice in the region. That is to the benefit of the region as well as individual members.

For Wellington to continue to prosper, business also has to prosper. It provides the jobs and, in Wellington alone, pays almost half the council rates.

The merger, due to take effect on July 1, is also a blueprint for other organisations in the region.

As this newspaper has said before, it is lunacy for a population of less than 500,000 to be serviced by eight local authorities and a regional authority. Whether the solution is to replace the existing councils with one, two or three councils is open to debate, but it is ridiculous for the region's ratepayers to pay the salaries of nine chief executives, nine chief executives' secretaries and an army of planning officers, all enforcing slightly different rules. The need to change has only been made more urgent by the creation of Auckland's super-city.

After this year's local body elections, councils in the Wellington region will be competing for Government and business attention and resources with a single organisation representing up to 1.4 million people. Who are Government ministers and business leaders going to find the most time for?

The same holds true for the multiplicity of health boards and primary health organisations in the region. What is the point of paying managers and administrative staff to perform essentially the same duties at the Wellington, Hutt Valley and Wairarapa district health boards and how are patients' interests served by having systems at different hospital boards that cannot talk to each other? Democracy is best served by sheeting home responsibility for the life and death decisions in healthcare to where it belongs – the politicians who decide how money will be spent.

Doubtless the chamber and the EMA have had to tread carefully. Livelihoods and egos have to be taken into account in any organisational shake-up.

However, all the indications are that the merger will be accomplished with a minimum of pain and a maximum of benefit. Business organisations, just like businesses, local authorities and health bodies, have to adjust to the times.

The chamber and the EMA have shown the way ahead. Other organisations should follow.

- © Fairfax NZ News

Newest First

Oldest First