Dutch Municipalities role in Economic Development and Public Private Partnerships
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Dutch Municipalities role in Economic Development and Public Private Partnerships

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Dutch Municipalities role in Economic Development and Public Private Partnerships - Herman Snelder, Managing Director MDF

Dutch Municipalities role in Economic Development and Public Private Partnerships - Herman Snelder, Managing Director MDF

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Dutch Municipalities role in Economic Development and Public Private Partnerships Dutch Municipalities role in Economic Development and Public Private Partnerships Presentation Transcript

  • Dutch Municipalities role in Economic Development and Public Private Partnerships Herman Snelder Managing Director MDF
  • Content
    • Content
    • Municipalities influence on Economic Development
    • Dilemma’s in municipal role
    • Public Private Partnerships at municipal level
  • Municipal influence on economic development
    • Municipalities influence economic development through:
    • Planning (policy, area development)
    • Local task system (revenues)
    • Knowledge and use of EU, National and Provincial provisions
    • Implementation assignments to local business.
    • Manner of service delivery
    • Infrastructure provision and maintenance
    • Public Private Partnerships
  • Planning: Municipal policy paper
    • Four year policy sets conditions on what to enhance and what to avoid within the municipality
    • Municipal choice is dependent on local agenda and therefore local elections.
    • e.g. Zutphen, opposition against municipal housing policy caused an electoral shift during elections. New Local Government has changed housing policy.
  • Planning: Area development plan
    • The municipal area development plan complies to the provincial area development plan.
    • The zoning in the plan has to be complied with. Asking exemption from the plan is a hard and time-consuming task
    • It indicates a.o. industrial, artisan en shopping areas.
  • Local tax system
    • Municipalities revenues are based on the municipal fund and local taxsystems
    • Municipalities are entitled to collect taxes, like property tax, commuter tax, tourist tax and parking fees.
    • The height of local taxes can be decided upon by the municipalities.
  • National, EU and Provincial influence
    • Municipality:
    • Conveyer of subsidies and loan facilities, e.g. favourable tax conditions for starting enterprises, subsidies for CO2 neutral enterprises etc.
    • Participation in supra-municipal programmes and projects
    • Maintaining European and National rules and regulations on environment (e.g CO2 emission), working conditions, competition, Less rules more service programme etc.
    • Complying to Provincial area development plan
  • Assigning implementation
    • Municipalities are an important provider of business assignment to local companies, e.g. roads, buildings, maintenance of parks, swimming pools etc.
    • Raises and cuts (crises) in municipal budgets influence the local economy.
  • Service delivery
    • The manner in which municipal services are delivered to businesses is crucial
    • Government is known for its array of rules and regulations business must abide.
    • ‘ More service less rules’: e.g. developing municipal business contact centres.
  • Infrastructure provision & maintenance
    • Businesses accessibility to customers is key. Municipalities are responsible for municipal roads and infrastructure and as such can enhance and hinder the accessibility to businesses.
  • Dilemma's of Municipalities
    • Municipalities have to seek a balance between economic, social, cultural, political and environmental issues. Based on this choices have to be made that both enhance and hinder economic development.
    • Industrial area development (outside the area development is hindered)
    • Protection of special areas, e.g. historic centres, rural and natural areas.
    • Housing area development (municipal land sold to one housing developer, others hindered)
  • Summary
    • The role of municipalities in economic development in the Netherlands is predominantly indirect.
    • Municipalities provide the framework for economic development (industrial areas, favourable tax system etc.)
  • Public Private Partnerships
    • PPP practice in the Netherlands sporadic, successful practices can be found e.g. the four Leading Technology Institutes (OECD, 2004)
    • Thinking is that practice will increase due to Economic Crisis for efficiency and effectiveness reasons.
    • Practice occurs mainly in low risk projects from government perspective.
    • Government hesitant to use PPP in big infrastructural projects, cause government is risk bearer.
  • Public Private Partnerships
    • Public Private Partnerships at municipal level are occurring in
    • Housing area development
    • Employability (UWV-Entrepreneurs)
    • Public service buildings like secondary schools, swimming pools (long-term commitment guaranteed for investor)