Small businesses hold key—report

Press, 16 May 1989, Page 8

Small businesses hold key—report

By

KAY FORRESTER

Private enterprise, not local government, will be the catalyst for Christchurch’s economic growth, a report on the city’s development and promotion says.

Growth will come from smaller businesses, the report says. "Big, employment-rich operators” were unlikely to change economic circumstances, judging by overseas examples. Instead, the small-business sector would provide the impetus for change. The report, compiled by the Christchurch City Council’s employment services officer, Ms Jan Andrews, and a city planner, Mr Richard Johnson, was prepared at the request of the Mayor, Sir Hamish Hay. It is background material for a review of economic development and employment promotion in the city and was sent to several organisations for comment. Those organisations met last month to discuss it. Sir Hamish called for the report to co-ordinate initiatives and avoid dupliation.

The report says Canterbury’s future growth will be export-led but that would require a sound domestic market first. Canterbury’s strengths are listed as its agricultural base, education and research facilities, reputation for high-tech innovation and design talent, abundant water, and sectoral strengths in engineering, plastics and rubber, electronics, clothing and electrical equipment. Much of the economic base of Christchurch is derived from processing primary products and servicing the farming sector, the report says. The region is a fertile source of businesspeople with ideas, products and processes who require advice and help to set up. The report notes a growing demand for business advice, an area it describes as under-resourced. Another resource for the region is the pool of

skilled workers without jobs.

The report outlines the role for the council — and the new Christchurch City Council — in development. The council should continue to support groups with funding but not attempt to take over their role, it says. The council spends about $422,000 on aid to groups for economic and employment development.

The council’s role should be political, as a voice for regional interests to central Government.

It should be “businessfriendly” in setting policies and rates, with these measures having a big influence on business confidence. That investor confidence is lacking at present, the report-says.

There is a need for a body to publicise the business advice and assistance

available, the report says.

The needs of all agencies should be co-ordi-nated. The marketing plan being prepared by the Christchurch Promotion Working Party may achieve this.

The council should promote Christchurch as a welcoming place for business and not concentrate on the city’s tourist image at the expense of attracting investment.

The organisations which discussed the report supported the “Going for Goals” forum as a focus for planning. The report has been sent for consideration to the transitional committee for the new City Council, together with recommendations from “Going for Goals” at Queen’s Birthday week-end. It will also be considered by the present council’s policy and finance committee.