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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

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Dutch Municipalities role in Economic Development and Public Private Partnerships

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