Great South and the Southland Chamber of Commerce are kicking up a stink at a proposal by two other regional business groups to merge and rebrand, saying it will confuse the market.

The Otago Chamber of Commerce and Otago Southland Employers Association are proposing to merge and use a new name, Business South.

Great South chief executive Graham Budd says the name is too similar to the name of the organisation he works for – Southland’s regional economic development agency.

Advertisement

Advertise on the Southland App

A new entity called Business South “could cause considerable confusion at local and national level," he said.

“Great South has a clear mandate, and significant national body and government support, to deliver business development services to businesses in Southland. The name Business South would complicate this understanding in the community and potentially lead to barriers in businesses accessing expert advice and support,” Mr Budd said in a media statement.

The Southland Chamber of Commerce’s chairman Neil McAra shares Mr Budd’s concerns.

“What’s in a name? That which we call a Chamber of Commerce by any other word would smell as sweet. But not as the Southland Chamber of Commerce (SCOC) sees it,’’ the introduction to the Southland chamber’s media release states. 

Mr McAra said the proposed merger would “confuse the offering of the Southland Chamber by encroaching on Southland’s territory and appears to be a misguided attempt to address the OSEA’s depleting membership’’.

Mr McAra said it was disappointing there hadn’t been wide or meaningful engagement around the merger process, especially given it would affect some Southland members.

“We’re opposed to their use of the name Business South because it masquerades as having Southland businesses’ interest at heart, when we feel this is not the case, and will confuse the market,” he said.

Advertisement

Advertise on the Southland App

That criticism hit hard with Otago Southland Employers Association president Andrew Leys, who described himself as a proud Southlander. 

Mr Leys told the Southland App on Wednesday that it was “sad” that the two Southland-based organisations had hit out against the merger when he had tried to be “constructive and flexible” during a meeting on Tuesday.

Mr Leys said the Southland groups’ decision to issue media releases after the meeting was “chest beating” to promote themselves.

He was hoping for collaboration, but the Southland groups had become adversarial, he said.

The merger proposal was not yet set in concrete but was very likely to go ahead once voting had been confirmed in October, he said.

Advertisement

Advertise on the Southland App

The Otago Southland Employers Association was 130 years old and had just over 1000 members, with about 70% from Otago. Membership was sustained and building, Mr Leys said.

Otago Chamber of Commerce president Grant McKenzie said he thought conversations with the Southland groups had been positive and that they shared a good working relationship.

He hoped that would continue.

Mr McKenzie described the Business South name as a “placeholder” and it would be discussed again with members once the merger process was completed by the October 22 deadline.

The use of Otago Chamber of Commerce services had been a record levels and the merger was a chance to consolidate voices for business during the present difficult economic climate, Mr McKenzie said.

The Otago Chamber also has about 1000 members.

Mr McKenzie said the Otago Southland Employers Association had revenue of $1.8 million and assets worth $1.897 million, while the Otago chamber had $1.4 million in revenue and $850,000 in assets.

Advertisement

Advertise on the Southland App

Southland Chamber of Commerce chief executive Sharee Carey said the Southland chamber has 450 businesses as members.

The chamber board had been very busy with COVID-19 support and negotiating Tiwai Point aluminium smelter closure issues, she said.

Ms Carey said the merger and name Business South had been discussed in a meeting but the Southland groups had decided to put out media releases to make it clear where they stood on the issue.

Otago Chamber of Commerce chief executive Dougal McGowan said the Otago chamber had “never been busier’’ this year, and was handing out between $35,000 and $40,000 worth of business support vouchers a day to members, including those from around North, South and Central Otago.

The Southland App asked Ms Carey, Mr Leys and Mr McKenzie whether there was any interest in the Otago and Southland chambers merging to form one entity for the Otago-Southland region.

That idea did not find favour. 

Ms Carey said the Southland chamber preferred to be independent, as the region was very different to Otago and there were fears Southland’s voice could get lost.

Mr Leys said the Otago Southland Employers Association was not advocating for a merger with the Southland chamber.