Emma Gillard, Emma’s at Oxford, North Canterbury - 2019 winner.
Saran and Amy Tepavac, Hamills Fishing and Hunting Specialists, Taupo - 2019 winners.
Blair Wigglesworth, Crate Clothing, Hamilton and Mount Maunganui - 2019 winner.
Luke and Rachael, Barefoot Sailing Adventures, Bay of Islands - 2019 winners.
There is little perceptible unanimity about the September elections, except for a general feeling of relief that we seem to have usurped our Tasman cousins’ title as the luckiest country. But it needs to be remembered that very few countries anywhere in the globe have escaped recurrent flareups of the Covid-19 virus that has transformed our world. To assume New Zealand will remain largely immune would be a mistake.
By DAVID PORTER
The Bay is certainly as well placed as any country to ride out the storm, largely because of its strong agricultural base, successful exporters, strong entrepreneurial underpinning, and highly evolved technologies. And, it must be added, small, largely dispersed population and geographic isolation. Business leaders are, at best cautiously optimistic and have been pragmatic in dealing with the crisis.
Some of the Tauranga Chamber of Commerce’s topline issues – which are likely to be widely shared by the business community – include border arrangements, the need for certainty around taxes, international trade and how it might evolve, and above all perhaps, some clarity on the likely recovery plan over the next few years.
“The borders play a critical role in protecting our level one freedoms,” said chamber chief executive Matt Cowley. “Businesses would like to know the
Government’s plan over the next three years to allow international students to study, seasonal workers to enter, cruise ships to visit, and major events to happen.”
And, he added, businesses like certainty on fiscal policy. “Any major new taxes or charges should be debated and ultimately voted on at the election,” he said.
Covid-19 is resetting the international landscape and we need clarity on New Zealand’s overall recovery plan over the next decade, he said.
Transport and housing
“What are the initiatives to keep workers engaged in the workforce, projects to advance New Zealand’s infrastructure, and support to ensure small businesses survive and thrive?
This includes how the parties propose to support local communities to manage the Western Bay of Plenty’s sustained population growth. The two key local issues for businesses are quality local and interre-
gional transport links, and ensuring there are suitable housing choices available for staff.”
Priority One chief executive Nigel Tutt largely concurred, saying that the first and
foremost issue for the region –and especially the Western Bay – is infrastructure. “We don’t have enough infrastructure and we always know that’s going to be a solid investment for our productivity in the future,” he said.
“In terms of the Western Bay specifically, we’ll be looking for some understanding around government on that and an allocation of infrastructure on a needs basis rather than a political basis.”
Tutt added that Government investment in science and technology and research and development was really important.
“New Zealand has a pro-
What are the initiatives to keep workers engaged in the workforce, projects to advance New Zealand’s infrastructure, and support to ensure small businesses survive and thrive?” – Matt Cowley
ductivity problem,” he said.
“And we also have a really good opportunity in Covid19 times as well, because the country enjoys a great global perception.
“We’ve discovered [during the pandemic] the ability for us to do business in any part of the world remotely has increased and we’ve got an opportunity to pounce. We’ve got wonderful natural resources and we’ve got an ability to use build science and technology around those natural abilities and resources.”
Tutt said the feeling in most businesses he encounters is that they are seeing opportunity now more than anything else.
“As it moves forward, the protection of the border is really, really important,” he said. “That will affect business either way. It’s an important el-
We’ve got wonderful natural
and we’ve got an ability to use build
and technology around those
and resources.” – Nigel Tutt
ement of risk for government to nail.”
Overall, say Tutt and other observers, the major looming challenge will be access to both skilled and unskilled labour, particularly in industries that rely on foreign labour.
“They will realistically suffer some capacity challenges. So it’s about getting some understanding there, without compromising the borders, so it’s a tough one. Employers may need [to bring in] one particular person to run their business and provide a skillset and then they can employ many more people. It’s a matter of making sure they can get through the system in a timely manner. We would look for a Government to at least have an understanding of that.”
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?ELECTION UNCERTAINTIES
When the Bay of Plenty Business News went to print with this issue at the end of July, there were roughly two months and counting to go for what may be the most important election in New Zealand’s history.
Because of our publishing schedules, we opted to outline in this issue some of the challenges and the competing visions that will be vying for public endorsement on Election Day. We will obviously revisit the outcome of the polls and analyse what the results portend for all of us.
That means that as publishers we have at least a 50-50 chance of being completely wrong in our analysis and assessments in this issue in predicting which way the public is likely to turn.
However, those who have viewed with interest the recent ructions within the National Party leadership will also recall that Prime Minister Jacinda Ardern ascended to the leadership of the Labour Party just seven weeks before the 2017 election, and was by no means considered a shoe-in at the time, nor was she widely known across the country. It was only New Zealand First Party leader Winston Peters who got Labour across the line.
With respect to her two predecessors – respected local MPs Simon Bridges and Todd Muller – Judith Collins is bringing a different approach to National’s leadership. Whether she will appeal to a majority of the electors is impossible to predict, and no doubt there will be much see-sawing in the polls before Election Day. However, Collins has the great advantage of being a wellknown quantity with the public. And it is difficult to imagine anything will come out about her that is new, pre-election. The general perception is that she appeals to some, especially National’s core voters, but may alienate others. We shall see come the election whether that convinced the electors.
A scary world
We face a very different and much more frightening world than was the case in the 2017 election. Yes, since then the world has suffered and recovered from earthquakes, typhoons, the appalling Fukushima tsunami and nuclear meltdown in Japan –which is still polluting waters – and sundry other disasters.
But despite some early warning alerts from scientists that one day a virus might
emerge in a form that we couldn’t manage, we were unable to imagine it actually happening.
It has now come amongst us on a global scale. And despite the vast amounts being poured into vaccine research, there seems little chance of early relief. Even worse, there has been a significant erosion of the effectiveness of the international bodies that have helped us deal co-operatively and collaboratively with past crises. In large part, this has been a result of the current US regime’s undermining of those relationships and now its inconsistent and erratic pandemic response.
Even notoriously tightlipped North Korea has now admitted to a problem. Countries that had achieved some success in reducing infection rates – such as Vietnam and China – are seeing new surges of the virus.
In New Zealand, we rightly congratulate ourselves on so far having kept the major ravages of the virus at bay. Above all, we have been lucky – lucky that most Kiwis have been sensible and law abiding, lucky that we have in the main had a sparsely distributed population. And lucky that we abide in a geographically distant part of the world.
But it seems to me that there has been a tendency to treat the pandemic as being over, when clearly it is not. I personally see little sign of people adopting effective social distancing or mask wearing. We would have to be very lucky indeed not to experience another breakout at some point.
The Bay is in a better and more optimistic position than many regions. Local business leaders in this issue emphasise two main criteria for a successful new government: the ability to effectively manage our borders while allowing a critical flow both ways of people and goods, and a coherent approach to fiscal policy that includes well-thought through and costed strategies to enable business to get back on its feet.
The only thing the business community needs to take into account in the coming elections is which party (or parties) they think is most likely to effectively execute those aims.
David Porter
party positions
Despite what National Party leader Judith Collins described as a “rogue” poll showing the Labour Party well ahead in the polls when we went to print, it would be a mistake to assume the election result is a done deal. There is major uncertainty in the country and around 10 per cent of the work force is about to go off wage subsidies, with a good proportion of them likely to be unemployed in the next few weeks. Anything can happen before the polls open.
According to a statement from Prime Minister Jacinda Ardern, “we’re already rolling out our plan to recover from Covid-19 and rebuild together. This includes initiatives to support businesses, keep New Zealand moving, and put us on a path back to growth.”
But based on what has been released so far, the major coalition government party, Labour, is essentially staggering its rollout of the detail of its policy to very close to the election date.
According to Ardern, the Labour policy is built around five key principles: investing in people, jobs, preparing for the future, supporting small businesses, and positioning New Zealand globally. She pointed to the Government’s Wage Subsidy Scheme, which has now supported around 1.7 million jobs. The Government had also made all apprenticeships, and trades training in
targeted areas, free – for everyone, not just school leavers.
“This will give more New Zealanders the opportunity to retrain and get the skills they need for the future of work post-Covid,” she said. However, the uptake of such training requires optimistic companies willing to take on apprentices and there has been little evidence as yet that this is happening.
“Along with investing in our people… our Government has invested in practical support for businesses, from interest-free loans and more than $3 billion in tax refunds, to funding to help them grow digitally and on-the-ground support for our exporters. Going forward, we will continue to back our businesses to innovate and grow, to keep our economy moving.”
The Government also says creating jobs is a key part of its plan, including major investments in much-needed
infrastructure projects across the country, which it says are expected to create over 20,000 jobs, along with new programmes creating more than 10,000 new environmental jobs in the regions. Whether that will meet the country’s expectations remains to seen.
There is little question that Ardern has been impressively empathic and decisive around the Covid-19 shutdown, but the coalition has been much less effective in effectively implementing its proposed policies since it took office.
New National leadership
Judith Collins, who has applied a firm grip on the National Party after emerging from recent scuffles as leader, will make for an interesting match-up with Ardern in forthcoming election debates.
“Our focus this election is on delivering an economic
plan that gives hope to the more than 200,000 New Zealanders who are currently on unemployment benefits, as well as the tens of thousands more whose jobs are hanging by a thread,” she said.
“Already we have announced a transport package for the Bay of Plenty that will create hundreds of jobs and drive economic growth across this fast-growing region. It involves building the full Tauranga to Katikati Expressway, complete with a bypass at Katikati.”
Collins noted that the Western Bay of Plenty was growing strongly on the back of horticulture, but the resulting freight and population increases have put pressure on its road infrastructure. The new project would connect the Bay of Plenty and Coromandel with a new world-class, fourlane expressway, replacing one
Continued on page 6
National’s past leaders in the Bay
The Bay of Plenty has had the unusual experience in recent weeks of seeing Western Bay MP Todd Muller unseat Tauranga colleague Simon Bridges from the role of opposition leader, only to step down abruptly from the role for health and family reasons and in turn be replaced by Judith Collins. The party now seems to have settled down under its new leader.
Muller – who has been on leave but will be active in the run-up to the polls –spoke to the Bay of Plenty Business News for this issue, and emphasised the coming election was the most important in years.
“No matter what your political persuasion, this election is not ‘a business as usual’ election,” he said.
“The choice this September, will boil down to who has the breadth of policy, capability and in particular experience, to best run the country for the next three very tough three years,” he said.
“The current three party Coalition Government simply do not see the world through the same lens and their record over the last three years demonstrates it.
“All of their substantial priorities, be it housing, roading, child poverty, all have gone backwards or stalled.
“They inherited an economy with $19 billion in projected surpluses and by this last February – before Covid-19 hit – they were budgeting an annual deficit.”
Locally Muller said he saw a huge need for infrastructure and services
investment to support the city’s growth.
“My family moved here in 1974, it has been a huge part of my life and I feel very privileged to represent the Bay in parliament,” he said. “My recent personal experience has strengthened my resolve to walk alongside our many local families who are walking through very challenging journeys and make sure we have the services and support we need here in the Bay.”
I think we can provide answers to Tauranga’s growth.”
– Simon Bridges
Bridges told the Bay of Plenty Times he was happy in his new roles and keen to engage with the Government.
“I think we can provide answers to Tauranga’s growth,” he said. “If you’re a business it’s getting harder and harder to live in our city because of housing affordabilty, and it’s getting harder and harder to get around.”
National was also more likely to introduce business enabling policies if it won government, he added.
“We have more small to large businesspeople and entrepreneurs in our team than the Government and we show leadership on business issues. You can expect us to get in fast and cut the red tape.”
Todd Muller
Simon Bridges
Jacinda Ardern
Judith Collins
Party positions
of the most dangerous section of roads in the country,” she said.
“National knows that providing for themselves and their families is what matters most to New Zealanders, and they will put their trust in National because we will bring the leadership, experience and vision needed to get our economy back on track.”
National’s Finance Spokesperson Paul Goldsmith said recently that the best path back to prudent levels of debt in a decade or more is an absolute focus on economic growth, combined with disciplined spending.
“National recognises that during an economic crisis, when we are losing thousands of jobs and businesses are struggling, increased government spending and higher levels of debt are required here and now,” said Goldsmith.
“Our plan will allow for increased government spending on social services but would not involve the random excess spending that is Labour’s substitute for a growth plan,” he said.
“New Zealand can spend more now, as [Finance Minister] Grant Robertson always points out, because we had low levels of government debt coming into the crisis. We only had low levels of debt, following the Global Financial Crisis and Canterbury earthquakes, because of that combination of disciplined spending and the focus on growth delivered by the previous National government… Labour’s idea is only to keep spending more, borrowing more and taxing more, without a plan for it to stop.”
NZ First seeks distance
Coalition Government
partner New Zealand
First – along with the other leg of the triumvirate The Green Party – have been struggling in the polls recently.
NZ First leader Winston Peters in recent weeks has been increasingly distancing himself from the Government’s policies. As he remarked when launching the party’s election platform: “We have used our experience to help government through many crises, and
to avoid a number of pitfalls. We’ve used common-sense to hold Labour and the Greens to account. We’ve opposed woke pixie dust.”
According to NZ First MP, Fletcher Tabuteau, who looks after the party’s interests in the Bay, economic development is the smart way to move the region forward.
infrastructure projects happen, especially here in our region.”
He said it had been harder for councils and developers in the Bay of Plenty, and everywhere else in New Zealand to keep up with the demand for new homes.” We have already shown this will change, with more houses at lower costs,” he asserted.
“On behalf of Central Government, I have been and will continue to work with local councils, iwi, our business owners, and other stakeholders to ensure that when we do invest money into the Bay of Plenty, it is in the best place to grow business activity,” he said. He referred to the benefits conferred on the regions by the US$3 billion Provincial Growth Fund, which he asserted had ensured the provinces were at the heart of Government decision making and actions, and which National has labelled “a slush fund”.
“Good economic development means doing things smarter, one obvious outcome is more jobs. We need a strong focus on recovery postCovid,” said Tabuteau.
“The best way to do that is to carry on with what we have been doing, smart investment in infrastructure, and supporting local business. I want to continue my efforts to support all businesses at whatever stage of their development, to grow and thrive, thereby creating more jobs, and see large
The Green future
The Green Party’s policy platform Think Ahead, Act Now: Our Green Vision for Aotearoa was unveiled by co-leaders Marama Davidson and James Shaw in July. Said Davidson: “It’s a bold plan for Aotearoa, where everyone has what they need to thrive, our precious natural environment is protected, and communities are supported to be truly sustainable…. Covid19 has shone a light on the glaring holes in our system, but has also provided a rare opportunity to renew our communities and our relationship with nature.”
Centrepieces of the policy included the party’s proposed Guaranteed Minimum Income of $325 per week “for students and people out of work, no matter what”, various support credits, and the reform of the ACC as an Agency for Comprehensive Care, creating equitable social support for everyone with a work-impairing health condition or disability, with a minimum payment
of 80 percent of the full-time minimum wage.
Alarming the likes of National, and slammed by coalition party NZ First, was the Greens’ proposed one percent wealth tax for those with a networth over $1 million and two new top income tax brackets for a more progressive tax system that redistributes wealth. The taxes were described by many observers as being unreflective of the reality of income distribution in New Zealand.
ACT may gain traction
Long time National Party support party ACT has been making some inroads, largely as a result of leader David Seymour’s success in getting his End of Life Choice proposal on the elec-
tion ballot as a referendum item. Essentially, Seymour is in the business of trying get votes away from Labour’s coalition partners.
Whether he succeeds or not is an imponderable this far out, but on recent polling he could well bring an extra MP into parliament with him.
According to the party, key Bay issues include improving housing affordability by a clear commitment to replacing the Resource Management Act, also a National Party policy.
“For decades, councils have tied new housing developments up in red tape and underinvested in infrastructure. ACT believes New Zealanders must be free to build, and councils should be encouraged to invest in infrastructure, if we are to solve the housing crisis and
achieve housing affordability.”
ACT also favours action on the Regional Seasonal Employment Scheme, stating that although Covid-19 has closed the border, Government should be looking to open up to Covid-free countries like those in the Pacific Islands for seasonal workers.
The policy adds: “Governments have chosen where to build infrastructure based not on economic need, but political advantage. ACT would remove infrastructure decisions from Ministers and vest them in an independent Infrastructure Corporation.”
Says ACT: “Restarting the economy will require tax cuts, a reduction in low-value spending, a return to 90-day trials for all firms, and cutting red tape that holds us back, particularly the RMA.” According to Seymour, Government can do one of three things to get back to surplus and begin repaying the debt: tax more, spend less, or grow faster.
“New Zealand is already the most heavily-taxed economy in the Asia-Pacific,” he said. “As a proportion of GDP, we pay 32 percent to local and central government, more than Australia, Japan, Singapore and Korea. We can’t increase taxes and doing so will mean option 3 – growing faster – won’t happen. We must reduce low-value, politically motivated spending we can no longer afford.”
As noted above, it’s still early days for this campaign and the variables associated with MMP and the prevailing global uncertainty means we shouldn’t be surprised at whatever result emerges.
Winston Peters
David Seymour
James Shaw and Marama Davidson
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Virus-economy tug-of-war
Investment market update (for the quarter ended 30 June, 2020)
Most countries are grappling with the tension between curbing the health effects of Covid-19 and minimising the economic damage of restrictions and lockdowns.
Whilst the virus does continue to disrupt most economies, lockdown measures are generally being eased. On balance, economic activity has generally been better than most feared two or three months ago.
That said, better-than-expected doesn’t mean great, and there are still uncertainties ahead. As an example, equity markets responded favourably to the latest US jobs report, with the unemployment rate dropping from around 16 percent to around 12 percent. But
12 percent is still very high, meaning two-thirds of those who’ve lost jobs since March remain unemployed.
The question being asked in the US and elsewhere around the world is the same one we’re asking in New Zealand. What does the economic picture look like once pent-up demand from lockdown has passed and government support for workers and businesses ends? Only in time will we get a clear view on the health of the underlying economy.
In places such as the US (in particular), Australia, Korea,
and Japan, challenges have been compounded by the rise or re-emergence of Covid-19 cases as lockdown measures have been eased, resulting in the reinstating of restrictions or slowing reopening plans. Fortunately, to date, outside of imported cases the virus has not re-emerged in New Zealand.
Equity markets continue to rally
Despite the challenging and uncertain backdrop, equity markets have continued to
WHAT TO DO WITH YOUR MONEY
Investment Adviser with Forsyth Barr Limited in Tauranga, and an Authorised Financial Adviser. Phone (07) 577 5725 or email brett.bell-booth@forsythbarr.co.nz.
rally. Since the 23 March trough, the MSCI World Index is up +39 percent helped by the aggressive responses from policymakers around the world, and steady easing of lockdown restrictions and opening up of economies.
In more defensive markets, such as the US and New Zealand, equity markets are now down only three percent and one percent respectively for the year.
More cyclical markets like Australia and Europe are down 10 percent and 12 percent. In our view, ultra-low interest rates remain a key support for equities. The low returns on offer from defensive investments such as bonds and term deposits are inducing people back into equities more quickly than they otherwise would have.
Stay prepared
Actions from governments and central banks have stabilised financial markets. But there is still plenty of uncertainty, and as we’ve seen over the past few months, sentiment can change quickly. There is potential for further market volatility ahead.
The past few months do reaffirm some important messages for investors. We don’t believe it’s possible to consistently time or predict shortterm movements in markets.
Markets oscillate between greed and fear. And they do not need a positive economic backdrop to bounce – markets expect a “less bad” outlook today than they did in March. The low returns on offer from cash and bonds will continue to encourage investors into equities.
Common themes for success
In recent articles I have written about things that can go wrong when buying a business, and identified risks that could be heightened for now. However, I think it’s important also to share my thoughts on when we see things go well – and whether there were any common themes for success.
IBETTER BUSINESS BUYING
> BY TOM BESWICK
Director at Ingham Mora Chartered Accountants in Tauranga, is a business advisor who specialises in buying and selling businesses. He can be contacted on 027-5744- 019 or tom@inghammora.co.nz
n my view new business owners tend to succeed when they bring new energy to the business, focus on the customers, set themselves up with the right finance and are prepared to learn.
1. New owners do well when they have the drive to reinvigorate the business.
Retirement appears to be the number one reason that businesses come up for sale.
In my experience, business owners often do not sprint to the finish line as they sell their business. They jog, slow to a brisk walk, and then have a leisurely stroll over the line as they look to sell.
This means that often a new owner has a tidy-up job at the beginning – but also that there is a lot of opportunity for the
owner to bring fresh ideas and energy. I worked with a couple who purchased a retail business. They knew nothing about the industry, but were prepared to learn and get stuck in.
The previous owner had let things slide with poorly performing employees and lazy stock management. After fixing these things up, the new owners now have a good business on their hands.
2. New owners do well when they are focused on the customer experience.
In many cases retiring owners are not as focused on looking after customers as a new owner will be. The exiting owner is just not as hungry. They have (hopefully) made their money already and it can mean that
sometimes service and quality slips.
A new owner that is committed to improvement will often find ways to do things better and it leads to better results for all.
I worked with a chap who bought a gym. The previous owners were distracted and not focused on the needs of their customers. As a personal
We all prefer positive news over negative. Investors generally feel better when markets go up, and it can be disconcerting when they go down. But unfortunately volatility is something investors will always have to bear. The key is managing your response to it. Working with your Adviser to formulate and stick to an investment plan with clear objectives, is one of the best ways to do so.
This column is general in nature and is not personalised investment advice. This column has been prepared in good faith based on information obtained from sources believed to be reliable and accurate. Disclosure Statements for Forsyth Barr Authorised Financial Advisers are available on request and free of charge.
3. New owners do well when they have the right finance backing in place.
This allows you to spend where you need and make investment decisions to improve
A new owner committed to improvement will often find ways to do things better and it leads to better results for all.”
trainer himself, he knew where the problems were and has worked to improve the whole experience for clients.
the business, rather than fight fires. When business buyers take the time to plan for different scenarios and understand
the “what could go wrong” areas then they are far less likely to be surprised.
4. New owners do well when they are prepared to learn.
As a retiring owner winds down, they often have taken their foot off the gas in terms of education and staying current. It is understandable –technology moves so quickly now that it takes effort to keep up. My clients who buy businesses that take the time to become more financially literate tend to find ways to save money by finding ways to do things better. It might only be a bit of
Xero training needed – but even an hour of that can generate huge savings. A few of my older clients say they know how their business is going in their head. That works great – until it doesn’t. Being able to drive your accounting system properly pays off in many ways through identifying problems earlier, getting paid earlier and being able to plan your cashflow properly.
While times now are far from certain, if a business buyer comes in hungry to drive the business forward, is committed to their customers, and is prepared to educate themselves, then they have every chance of success.
How do you know who to believe?
This last month has been a revelation to me in two different ways. Firstly, I have seen multiple businesses fall victim to a repeat credit offender who has been allegedly defrauding many businesses for years (the case is pending) when all of the evidence of why you would be remiss to trust this individual is easy to find online for even the most technophobic two finger typist.
WCREDIT CONTROL
> BY NICK KERR
Nick Kerr is Area Manager BOP for EC Credit Control NZ Ltd.
He is also a director of International Private Investigations Ltd.
Nick can be reached at nick.kerr@eccreditcontrol.co.nz
hen you look a little deeper you can find a trail of unpaid contractors, trumped-up disputes, fake trading names, blackmail, hiding behind a trust when it comes time to pay and a refusal to agree to terms of trade, and a horrendous credit history.
Basically all of the behavior that I have learned to recognise in many different repeat debtors – all in one glorious individual.
Before one starts to judge the creditors of the above financial train wreck it is important to mention that the businesses that he preyed upon
were established and wellknown, with access to the best practice in credit management tools and advice.
But this debtor knew what to say and when to approach the businesses to get the best chance of getting through.
The second part of my revelation was almost the exact opposite to the above.
This time it was me trying to convince a person to believe me.
Our investigation company has been assigned the amazing task of tracking down beneficiaries of wills that the executors of the wills can’t contact
and sometimes these “lost” beneficiaries are due hundreds of thousands of dollars bequeathed to them by family or friends that have passed away.
And it is truly my favourite task to find these people and facilitate a life-changing event by honouring the wishes of the deceased.
We were given a case of tracking down a beneficiary of a will and were given a name and not much else.
After nine hours of solid investigation work, we found someone who matched the description and made contact with them via social media and
asked them to confirm some details of the deceased which they did correctly.
We then told them that they had an inheritance and we needed their other contact details and proof of identification for the executor.
At this point they got suspicious that we were scammers and asked for proof of our
credentials. We sent copies of our Ministry of Justice Certificates of Approval and the link to the MOJ database for verification, but no matter what we said or did the beneficiary refused to give us any information, in the end we asked them to send us a message on social media that stated “I [XXXXXX] relin-
quish my claim to the estate” and the funds were placed in the pool for distribution to the other beneficiaries.
After almost 15 years of experience studying debtor and creditor behaviour, it’s easy to think that I have seen it all. But sometimes people can still surprise me.
Just a thought.
Tauranga’s premier venue – post Covid-19
Trustpower Baypark moved into the new year with the knowledge that 2020 would be the most successful since the Arena opened in 2011.
The business contracted for 2020 reflected several years of major events secured in advance. Through marketing strategies and the increased sales activity in the Tauranga area, wider Bay of Plenty, Waikato, Auckland and Wellington, had resulted in us achieving a high level of enquiries/bookings for new business.
Then the unthinkable happened – Covid-19. Activities continued at a high level until early March, when event organisers and companies started to become concerned with events over the next few months. We were faced with short lead time postponements and cancellations.
Then as the levels moved quickly to lockdown, all events for the last quarter of the financial year had to be moved to alternative dates later this year where they were available, or in some cases 2021.
It became a juggling exercise with often two/three events backed up on dates with clients hopeful to secure a suitable date to hold their event.
During this time there was regular communication with all clients who were personally contacted – and as many were local clients with a strong relationship with Trustpower Baypark – this has only strengthened the existing goodwill.
There were so many decisions for event organisers to consider and we did everything possible to work with them and understand their concerns.
Once back into Level One, business confidence built strongly and from Armageddon, the last weekend in July, the level of business at Trustpower Baypark is back in full force through until the end of 2020, with 2021 already well booked.
The result has been that most significant events were able to be rescheduled. Major events were saved – such as the Pacific Rim International Gymnastics Event which will now take place April 2021, and Stormwater NZ National Conference, rescheduled to August 2020.
Trustpower Baypark thank all of the loyal clients/customers – and in particular the local organisations for working hard with us through this period.
Some examples:
Armageddon was one of the rescheduled events moved from June to 25 & 26 July. The promoter was particu larly courageous given the environment and this was scheduled as the first large event in Tauranga following Covid-19. We were delighted that this event was able to proceed and was a tremendous success.
The 1-day Junior Tough Guy and Gal Challenge 11 August was able to confirm once we were at Level 1. This is a chance for primary and intermediate aged kids to get involved in New Zealand’s biggest mud run series in a version tailored especially for them. This is the second year this event has been at Trustpower Baypark.
Devilskin will hit the road this August on a New Zealand wide tour to support their chart-topping new album RED. With European tour dates on hold, the band are keen to treat their homeland fans to the live debut of RED. Devilskin will be joined by special guests Shepherds Reign on 15 August. These rising stars from South Auck-
interact with delegates in conference at the Arena.
StormwaterNZ is a significant annual national conference with the objective to provide delegates with an opportunity to cultivate technical knowledge, hear new and cutting-edge stormwater information, upskill in various areas of stormwater science and man-
There were so many decisions for event organisers to consider and we did everything possible to work with them and understand their concerns.
land have already amassed 1,500,000 Youtube streams and International acclaim with their latest single Le Manu. Trustpower Baypark secured the StormwaterNZ Conference 2020. Attendance at the conference initially was expected to be in the vicinity of 450 – now with Covid-19 it is expected to be 350-plus. This will be a “Hybrid” Conference with some delegates and speakers linked remotely through our BayAudioVisual Technical capabilities to
agement and keep up to date with the latest innovations.
The Conference is three days and will have a considerable economic impact for the city. National stats are that domestic delegates attending conferences spend on average $460.00 per day – and some stay longer at destinations like Tauranga/Mount Maunganui. Therefore, the estimated economic impact to the city is in the vicinity of $500,000.
Blindspott rescheduled during lockdown and once
tickets were available sold out the Stadium Lounge. This concert has now been moved to the Trustpower Arena to accommodate the huge interest.
The boys will be revisiting the album that touched so many kiwis’ lives and instantly became a classic. Their first two albums – 2003’s self-titled Blindspott and 2006’s End the Silence topped the charts and established the band as one of the most respected and revered rock bands in Kiwi music history. Their hits, such as “Nil By Mouth”, “Room To Breathe” and “Phlex” are still radio station mainstays.
Don’t miss this one-off opportunity to witness one of our greatest rock bands performing live, one of NZ’s greatest rock albums.
Another rescheduled event is the Seriously Good Food Show 5 & 6 September. Build a relationship with your food! Bringing together regional and national businesses with over 150 exhibitors from around New Zealand, enjoy food and wine samples, exclusive show
discounts and new product launches.
Foodies meet suppliers face-to-face and learn more about what they’re eating, where it comes from and how it’s made. The Seriously Good Food Show encourages you to eat local, buy local, and support local businesses from established Kiwi brands to small family ventures.
This year’s Tauranga Gala Dinner’s special guest is the legendary Dan Carter. Enjoy a stellar night out and reconnect with staff, clients and friends as our community comes together once again. With incredible entertainment, new menus, charity auction and exclusive insights with Dan Carter, 25 September will be a much-needed celebration that you won’t want to miss.
Trustpower Baypark is Tauranga’s premier venue for conferences, meetings, entertainment and exhibitions. Offering a complete package in one convenient location that features state of the art meeting rooms, in-house catering, audio visual services, professional conference organiser (PCO) and marketing/promotional services. Meet at Baypark for your next event.
“Bring your events online” with our Virtual Meetings. The range of onsite and offsite services include: Remote Presentation, Video Conferencing, Web Streaming and Streamed Hybrid Conferences. The Virtual Meeting services also includes purpose-built studios to ‘broadcast standard’ offering competitive packages to enable you to continue to stay connected to your audience. Ask about our competitive packages today.
In acknowledgment of the times we’re in, and a thank you to the loyal guests over the years – and this will be the eighth year! – the promoter has offered a 10 percent discount for any return bookings this year. Join us for a special night out with one of NZ’s most successful athletes, and revel in an entertaining evening that you and your team deserve more than ever.
JuniorTough Kids in action. Photo/Supplied.
Gala Dinner speaker Dan Carter.
Seriously Good Food Show.
Established or greenfields?
The first consideration for a potential franchisee with a particular brand in mind is, do they look at purchasing an established franchise or starting a Greenfields or new franchise? Unfortunately, there is no single correct answer and what’s “right” for one potential franchisee will not be for another.
The well-performing existing franchise
An existing business has a number of unique aspects; if bricks and mortar – it is physically there, it can be touched and seen and most importantly it has a trading history. A profitable established franchised business has been through the trials and tribulations and the associated costs of a start-up. The value, and time of getting to this position is, and can often be, underestimated.
The potential purchaser can assess the actual, not the benchmarking or theoretical, financial performance of the business. On the assumption of the business continuing to perform in much the same way, the potential franchisee can plan from day one, including what earnings they are likely to be able to take from the business.
The banks are also able to review and assess the historic performance of the business, and the ability for the busi-
ness to repay debt. This may facilitate bank funding. Both the bank and the purchaser also have a reasonable market value of the business based on actual historical performance.
The operational aspects of the business can also be evaluated; does the incoming franchisee think they can achieve the same or better performance? Where and how does it rate against other units in the system?
Of course, the value created by the current franchisee-owner is going to be captured in goodwill and reflected in the asking price of the business.
The underperforming existing franchise
What if the particular unit is underperforming; not yet profitable and or has been, but is no longer profitable? Should it be disregarded as a potential purchase? Well for the right franchisee buyer, they absolutely should consider it as a purchase option.
It comes down to three dynamics; the price, the performance of the business against benchmarking and the belief that the potential franchisee has the ability to alter the performance.
Underperforming franchise businesses create circumstances where an existing business can be purchased for less than establishment costs.
A lower investment cost alters the return on investment ratio, often making the investment work for the new owner. But usually, a potential franchisee will purchase an underperforming franchise because there is an obvious upside – eg, if the business is not hitting some or all of the franchise system benchmarks, and or if the potential franchisee believes that they are able influence or alter these.
There are numerous examples of highly successful franchisees that have purchased underperforming units. Some systems even have franchisees that specialize in fixer-uppers. Additionally, purchasing
FRANCHISING
> BY NATHAN BONNEY
Nathan Bonney is a director of Iridium Partners. He can be reached at nathan@iridium.net.nz or 0275-393-022
an underperforming franchise unit may be the only way to get into a particular market. That being said, the astute buyer would still need to consider the above.
The greenfields or start-up franchise
Why would a potential franchisee choose and what factors would tend them to lean the other way?
The first is usually cost, and often opportunity. With a Greenfields operation, there is no goodwill. The initial franchise fee for a well-developed and performing system is relatively low versus the accumulated know-how of a franchise.
Franchising provides not
only the blueprint for establishing new business units, it should provide a good idea of lead time to reach break-even and beyond.
Once the franchisee has a profitable business, they also have the possibility of re-selling with capital gains. Sometimes establishing a new franchise unit is the only option as the system is not in the market. This could be either a new system or a new market. There are also the less commercial and more emotive reasons. Some people are intrinsically motivated by the establishment and growth of a new business. It’s fun, and for serial entrepreneurs the franchise framework provides a faster development timeline.
Many of these serial entrepreneurial franchisees have specific skillsets suited to startups and development, versus ongoing running of a franchise business.
Preference, skillset and market conditions
While there is a myriad of factors influencing a potential purchaser’s decision or inclination towards a Greenfields or established franchise business, these can be evaluated on both the specific opportunity and also the individual’s skillsets and risk profile. What is critical is doing the due diligence on the opportunity and matching it with the individual.
How horticulture is responding to a Covid-19 world
The horticulture sector is in a unique position to accelerate the economic potential of the primary sector and aid a post-Covid19 recovery, says Mike Chapman, chief executive of Horticulture New Zealand (HortNZ).
By DAVID PORTER
HortNZ, which represents most of the sector, recently released the Horticulture post Covid recovery strategy report on how it hopes to work with government to unleash the sector’s potential.
The sector has a track record of growth that is expected to continue domestically and globally. The 2019 Fresh Facts reported that the value of horticulture then was $6.39 billion ($4.23 billion in export and $2.16 billion in domestic trade).
Pre Covid-19 it was forecast to grow to $10 billion by 2030. At this point, growth for all sectors is obviously uncertain, but the agricultural and farming sectors have been doing better than most and it seems likely demand will remain strong in export markets for food.
But the report notes that domestic and export figures are only part of the real value equation for the horticultural sector. “When you add in the multiplier effect of associated
or service industries in New Zealand and globally, IP royalties and the like the true value becomes much clearer,” the report says.
“The sector offers a diverse range of products, services, locations and end markets, and channels revenue and job opportunities into the regions where some of our largest social and economic challenges exist. Most importantly it has a justifiable reputation for safe, sustainable, healthy and ethically produced food.”
Strong sectoral growth
The horticulture sector has been growing more strongly than any other primary sector
in recent years and latest export growth figures are proving its resilience through the crisis, according to the report. Yet its true value is generally under recognised and under reported, as the significant global IP and the indirect benefits multiplier, are often not accounted for.
For example, research conducted by the New Zealand apple industry estimated that the true broader economic benefit of the industry at that time was three to five times its export value. If that is extrapolated, with horticulture exports (including wine) exceeding $6.2 billion in 2019, the economic benefit is huge – and it is primarily focused in the regions.
The industry’s potential for growth in the most sustainable, environmentally friendly, and ethical manner, makes it an ideal sector to lead the recovery with domestic growth and export earnings.”
“The industry’s potential for growth in the most sustainable, environmentally friendly, and ethical manner, makes it an ideal sector to lead the recovery with domestic growth and export earnings. Such growth has many benefits to New Zealand, from clean, green job growth to investment in regional areas and in a range of industries and communities,” the report says.
“It also reflects emerging consumer trends for healthy
produce grown in a way and by businesses, that reflect not only the values of today’s consumers, but position New Zealand well to meet the needs of consumers in the postCovid-19 world. Diversity of crops and produce in various locations provides strength, spreads risk and offers a brand and approach that adds even more value to New Zealand.”
In addition to the sector’s growth and economic potential, it has a vital role feeding
Win a $20,000 prize to boost your business
Our local businesses are vital to the recovery of Bay of Plenty’s economy.
During the Covid-19 restrictions our small business owners have shown initiative, hard work and resilience to keep afloat.
But many have been hit hard. We need to give them as much support as possible.
Local businesses create jobs that help us pay mortgages and keep food on the table. They provide us goods and services which means we don’t have to drive elsewhere to shop for what we need.
They help our local shopping strips feel vibrant hubs for our community, where we meet friends, pick up a coffee.
Shopping local brings us all greater benefit. It’s about more than the product or service you buy. It’s about keeping the money you spend in the local economy, and keeping it working to help us all.
Local businesses are generous sponsors of local events, clubs and charities.
That is why Stuff and 2degrees Business are launching Shop Local.
They first ran Shop Local last year in the regions and were delighted with how many businesses put their hand up to be considered for the competition.
Now they are extending it to the Bay of Plenty, along with Auckland and Waikato.
2degrees Business are offering five $20,000 advertising packages
to help businesses stay on top of whatever challenges Covid-19 has thrown them.
They could be your local favourite shop. A judging panel will decide on four of the winning businesses and a fifth winner will be decided through a people’s choice vote.
If you shop at a great local business, make sure you encourage them to enter. Any business can put their name in by going to 2degrees. nz/ShopLocal.
2degrees Chief Business Officer Andrew Fairgray says they are behind Shop Local because: “We know local businesses are at the heart of where we live and give our community its distinctive spirit.
“This is a great opportunity for a local business to raise their profile and get some tangible help in $20,000 worth of marketing and advertising. It also gives us the opportunity to celebrate the positive, hardworking business and encourage the local community to shop locally,” he says.
“We know it’s tough out there for business owners – now more than ever. Many of the business owners we’re talking to tell us it’s like a catch 22 – they need to get the word out to get more customers in the door, but cashflow is tight”
“I know small business owners have a lot on their plate right now and this is a way for them to get one
first New Zealand and then export consumers and potentially has significant health benefits.
“Recognition of this contribution to the country’s health and well-being as we recover from Covid-19, strongly reinforces the value proposition for additional growth acceleration programmes for the sector,” the report says.
Meeting the need for job creation
Post-Covid-19 New Zealand will be characterised by high unemployment but with a significant skills shortage, says the report. It suggests growth in permanent sustainable jobs will come from:
• Confidence of the industry to continue to invest and grow
• Increased domestic and overseas market demand for safe, ethical, fresh, healthy produce.
• Training and capability investment to deliver the skills that the industry needs for the future.
HortNZ says that production growth translates to jobs. For example, apple industry research conducted in 2018 showed:
• Industry export value is forecast to increase from $777 million in 2018 to $2 billion per annum by 2030.
• The area planted in apples and pears will grow from 10,250ha currently to
more thing ticked off their to do list, on us.
“We’ve made sure the application process is simple and straightforward so as many businesses as possible can enter,” Fairgray says. “2degrees has been fighting for
fair for Kiwi businesses for many years. We’ve got a NZ based call centre and a great range of products and services that allow business owners to get on with doing what they do best – running their business.”
Mike Chapman:horticulture can help the economic recovery. Photo/Supplied.
2degrees Chief Business Officer,Andrew Fairgray
15,000ha by 2030.
• The report estimates this will directly create 2,349 more permanent jobs:
with 891 more jobs in production
1,080 more jobs in post-harvest; and
378 more jobs in corporate services.
• This will also create 12,757 more seasonal jobs including: – 6,177 in harvest,
2,531 in packing,
2,910 in thinning, and
1,139 in pruning.
Regional advantages
Although HortNZ is based in Wellington, Chapman’s home is in the Bay and he served for a decade as chief executive of the New Zealand Kiwifruit Growers (NZKGI).
He knows well the important economic advantages that successful horticulture can bring to a region.
He told the BOP Business News on a recent visit home that the sector wanted to become an exemplar by providing a positive, cohesive, and constructive partner for government.
Chapman said there was significant potential to accelerate the sector’s contribution to post-Covid 19 recovery through a more cohesive style of “Industry-led Government enabled” partnership.
But for the plan to succeed both the government and the horticulture sector need to commit to working cohesively to implement the plan’s workstreams.
The purpose of the project outlined in the report has been to take a co-design approach between the horticulture sector and relevant government ministries to develop and agree on a plan which will accelerate the realisation of the significant potential the sector has, to generate jobs (especially in the regions), and support domestic and export growth, leading to economic and social recovery.
Chapman said the essence of the report was the need for all parties to embrace the opportunity and generate more jobs – especially in the regions - in a way that leveraged and enhanced New Zealand’s reputation here and overseas. The vision for this plan, states the report, is for horticulture to
lead New Zealand’s economic recovery from Covid-19. What the model requires in order to work, says the report, is that it be:
Industry led
Full support from all critical stakeholders for the sector plan.
• Accountability for actions and decisions required from the plan.
• Investment from industry to make progress as quickly as possible and show government the belief the sector has in its own potential.
• Alignment of actions and priorities with the plan. Individual industry plans aligning with the sector plan principles and priorities.
• Quality involvement in subsequent working groups, addressing the priority workstreams.
• A “greater good” approach and mindset.
• A collaborative partner for government acknowledging the work, support and value they provide. Leveraging and sharing knowledge, and domestic and global relationships.
• Working together in a collaborative and respectful manner, whilst acknowledging the individuality of each sector.
Government enabled
• Funding, including increased eligibility and prioritisation within existing programmes, and in areas which support the growth of the industry, but are harder to fund - i.e. where innovation is prohibitively expensive or risky for an industry sector or individual business to bear the burden, but for which the potential benefit for New Zealand could be significant (robotics and automation, plant genetics, etc).
• Consistent recognition from government of the value and contribution of the sector at all levels.
• Highest possible level support within each relevant Ministry for the plan and its implementation.
• Policy, resource allocation/ commitment and prioritisation decisions that reflect the sector wide plan.
Industry led
Strategy
Government enabled
LabourPromoting improved production practices Maximising education and systems to validate claims Plant food story
/ innovation/ automation Building on
• Openness to review existing regulatory and policy processes, decisions and frameworks with the objective of removing barriers to and better supporting growth.
• Improved inter-agency co-ordination within Government, including the NZ Government representa-
and information plan
tives in overseas markets.
• Commitment to the working groups and helping achieve results in as timely a manner as possible in the workstreams.
• Ministry plans that dovetail into and support the sector plan.
• Government officials at the highest level proactively
Partnership with Maori and Pasifika
engaged with industry, aware of and focused on industry potential and on collectively addressing industry challenges.
The report quotes the most recent report from NZTE research in May 2020 on its International Consumer Review, which showed that New
Certainty of access to natural resources/ energy efficiency
Zealand had received a strong, positive “halo effect” in the perception of the country being trusted to provide safe, healthy and sustainably produced food.
The potential for the sector to capitalise on this perception and reputation is limited only by its imagination, says HortNZ.
Source: HortNZ
More regulation could enhance IT infrastructure development
Alot happens in the tech world in three years.
New Zealand firms have sent rockets to space, developed autonomous vehicles and put faces to artificial intelligence.
This all occurs when we get the infrastructure and foundations in place for this type of technology to do its thing. But at the moment, the technology sector is not formally regulated. Ask 10 IT engineers to solve a problem and you would likely get a variety of answers.
In 2014, as part of NZTech’s policy platforms, a recommendation was made whereby the creation of a Chief Technology Advisor would report directly to the Prime Minister to advise on the strategic use of technology across government and throughout society. This was not backed by any party.
During NZTechs AGM in 2017, the idea of a tech advisor or NZ Chief Technology Officer was again mooted to government and a Ministry of
the future was conceptualised. This would be a pseudo-agency bringing government and the private sector together, led by a Chief Technology Advisor. Our government stated that they “recognise the strategic importance of digitisation and will appoint a CTO to ensure that digital development is planned to achieve the best national outcomes”. Unfortunately, a number of recruitment process issues did not result in this being formed. In 2019, a data ethics advisory group was formed to establish a decision around the use and protection of data. After a few false starts the Digital Economy and Digital Inclusion Advisory Group (DEDIMAG) was also formed in 2019.
DEDIMAG oversees SME adoption of ICT, digital opportunities within Maori businesses, and government regulation of ICT as areas that continue to require attention and effort across government. However, there is a lot of
work still to be done with the future of these groups and their impact on the New Zealand economy still to be ironed out.
Although unregulated, unlike other industries such as the Master Builders, or Chartered Accountants, the IT industry has nonetheless taken matters into its own hands.
Many IT companies have banded together to form alliances and advisory groups, not just for purchasing power, but also knowledge sharing and to create a code of conduct and standard of ethics.
ITPNZ (IT Professionals New Zealand) has been in existence for more than 56 years and champions and moderates on the industry’s behalf.
By creating chartered technology qualifications, and professional standards, it is getting easier to differentiate between the “cowboys” and those that are taking data, security and the technology of your business seriously.
Technology is constantly changing and keeping up for
TECH TALK
> BY TONY
SNOW
Tony Snow is chief executive and co-founder of Stratus Blue. He can be contacted at Tony@stratusblue.co.nz.
those within the industry is difficult enough let alone for the business owner or operator.
A standard of operations, professionalism and conduct is required to make sure that your data and business technology is in trusted and safe hands. The foundations need
to be right for you to be able to do the cool technology things that solve problems and challenges.
Make sure your current IT provider has these standards, groups, alliances and professional bodies as part of their business to see you right in the future. The last three years have taught us a number of things in the technology world (especially the last few months). The next three years may teach us – and whatever party (or parties) form the government –even more.
Westpac Tauranga Business Awards to go ahead in 2020
The Tauranga Chamber of Commerce’s annual awards celebration will be returning this year – with a twist and a few changes reflecting the impact of Covid-19. The chamber sees the Westpac Tauranga Business Awards as an opportunity to acknowledge, support and celebrate businesses that have performed well across all facets, including financial, sustainability, customer service and staff.
Given the impacts of Covid-19 on both the events sector and the business community generally, an event of this kind is needed now, more than ever, said event organiser Anne Pankhurst.
“It’s not about winning,” she said. “It’s about bringing the business community together, to acknowledge those who have done it tough, those who have been resilient and pushed through, and to celebrate in the company of their peers.
“Since lockdown, we have been advocating for a Love Local approach that highlights the skills, experience and expertise within our business community, and the Awards are an extension of this ethos.”
With a lockdown on largescale events until just a few months ago, the Westpac Tauranga Business Awards has not been immune to the effects of the pandemic and a number of changes are being made – both to the process and the event itself.
The traditional “mix-andmingle” launch night went
virtual, with a video launch held recently via the Chamber’s Facebook page.
New category
There is also a new category for 2020: The Productivity People and Ballance Agri-Nutrients Continuous Improvement-Lean Category. This category recognises those businesses that have adapted, and sought to streamline and improve their products, processes or services over the past year.
“We know that businesses have moved very rapidly, through digital transformation and innovation, to change their business model,” said Pankhurst.
“We will be taking a strong focus on these elements through the judging process, looking at businesses
that have adapted and that demonstrate creative, entrepreneurial or innovative processes, products or services, or a business model that has enhanced their success.”
The process of the Awards is largely unchanged, with each entrant requiring a self-audit and a rigorous judging process undertaken by an independent facilitator. This includes a visit to the entrant’s business, interviews with owner and staff, and a “pitch weekend”.
While thorough, Anne says
this – not the trophies - is the part of the Awards where businesses find the most value.
“So often businesses are too busy ‘doing the doing’ that they don’t have the time to stop and evaluate. This process gives them that opportunity, and to have their businesses reviewed and scrutinised by a professional business expert who can then give them feedback to improve and adapt.”
Then once the hard work is done, the Awards night is a way to take the team out for a celebration of all you have achieved.”
This year, the Awards event is undergoing a few changes.
To reflect the Love Local format and focus, the Awards dinner is now a degustation cocktail event. And it will be held at Trinity Wharf Hotel on Friday, 13 November, showcasing a
100 tonnes of kiwifruit donated to local communities
One hundred tonnes of Bay-grown kiwifruit is being distributed by the industry to food rescue organisations around the country this season, Zespri chief executive Dan Mathieson announced recently.
Despite the challenges posed by Covid-19, the completion of this season’s harvest reflected a huge effort across the industry to pick and pack the 2020 season crop in record time and the industry appreciated the support it had received in order to continue to operate, said Mathieson.
“This season really has demonstrated the sense of collaboration within the kiwifruit industry and the strong support we’ve received,” he said.
“Our supply chain has worked together to safely pick, pack and ship this season’s bumper crop and provide jobs to locals who had lost their roles in the hospitality and tourism sectors as a result of the impact of Covid-19.
Majority of harvest shipped
Mathieson said that, considering the uncertainty presented by the pandemic, the fact all of this season’s crop has already been picked and packed and the majority of the planned 48 charter vessels have already shipped fruit to market put the industry in the best possible position to tackle the challenges now being faced in markets.
With the impact of Covid19 putting greater strain on many community organisations, Zespri this season increased the support it offers its existing community partners and started working with several new organisations across the country.
“We can see significant growth opportunities ahead and we can do more to create a sustainable future by helping people, communities and the environment thrive through the goodness of kiwifruit,” said
Mathieson.
Zespri, already has partnerships with the likes of Surf Life Saving New Zealand, the Ōtanewainuku Kiwi Trust, Good Neighbour, Youth Search and Rescue (YSAR), and the scholarships and education programmes.
“This season, in recognition of the impact of Covid-19, we’re pleased to expand our support to partner with Kids Can, where we’ve provided financial support and donated one tonne of kiwifruit.”
KidsCan chief executive Julie Chapman said the partnership had come at a crucial time.
“We’re now feeding 44,000 children a day, which is up 30 percent on last term, as families struggle to make ends meet.
“We’re sending out thousands of warm raincoats and solid pairs of shoes to keep children warm and dry in what will be the toughest winter yet for many.”
Mathieson said that in addition, Zespri had formed strong relationships with a number of regional organisations.
“In the Bay, we’re proud to now be supporting a number of additional local organisations such as EmpowermentNZ, Love Soup Waikato and BOP and The Search Party Charitable Trust, on top of the support we continue to provide Good Neighbour.”
“Locally, the industry is donating 13 tonnes of quality Green and SunGold Kiwifruit, and 100 tonnes nationally, which is something we can all take great pride in.”
Mathieson said he was also looking forward to the commencement of the Zespri Young and Healthy Virtual Adventure, the organisation’s first nationwide community investment programme.
It encourages healthy lifestyles amongst young children and was being undertaken in partnership with ambassadors for Asics.
range of food and beverages from New Zealand companies.
“We’re calling it Shine Like A Diamond – so you still get to frock up, but the format is a little more relaxed to allow for great conversation and celebration,” she said.
“Covid-19 has thrown us many curve balls, but we think it is a great opportunity to try something different and most importantly give a big shout out to all local businesses who work tirelessly.”
Last year’sWestpacTauranga BusinessAwards. Photo/Salina Galvan Photography.
Bay robotics a focus for agritech roadmap
The Bay of Plenty is top of the list to benefit from a boost in the government’s commitment to the agritech sector, following the release of an industry transformation plan.
By RICHARD RENNIE
Aimed at boosting the sector’s $1.5 billion contribution to export earnings and broadening the global application of locally developed technology, the transformation plan is the first of several proposed by government for key sectors.
The others include forestry, food-beverage and construction.
Launched in Tauranga jointly by minister for economic development Phil Twyford and minister for agriculture Damien O’Connor, the plan will deliver $11.4 million of direct investment and a share of the $84 million Sustainable Food and Fibre Futures funding, bought forward after Covid-19.
Three key areas
At the heart of the plan sits three key investment areas – a horticultural robotics academy, the Farm 2050 project which supports technology aimed at reducing agriculture’s nutrient impact, and an investment fund targeting agritech startups.
New Zealand’s market is often too small to support some of the technology capable of being developed here.”
– Peter Wren-Hilton
pickers, sorting equipment and log volume scanners.
The company’s log-scanning technology was recently responsible for putting the company into the world’s Top 50 robotics companies. The technology cuts load calculations down from 40 minutes per truck to four minutes and is installed in eight sites around New Zealand.
The plan represents a rare alignment of six government departments and is a refocusing by government in trying to target winning sectors of the economy.
Minister Twyford acknowledged “picking winners” had not been fashionable with government since the early ‘80s,but that those countries that had deliberately done so had considerably outperformed New Zealand in the productivity stakes.
He specified Ireland and Singapore as examples. Israel, with a population of only 8.8 million has managed to grow its agritech sector 10 times New Zealand’s over the past two decades.
Hand in glove approach needed
Robotics Plus has pioneered the autonomous kiwifruit picking machine, but has since moved into commercial production of robotic apple
Tauranga is firmly on top of the list for the robotic academy which will build on the high level of skill established by Bay company Robotics Plus, and the academic support of Waikato University’s robotics school.
However, Twyford cautioned that the plan would only offer success if government and industry were able to work
Bay impact fund’s inaugural investment goes to Ōpōtiki mussel farm
New Zealand’s largest impact investment fund, Bay-based Purpose Capital Fund, has announced its inaugural investment has been made into the country’s first deep water aquaculture project off the coast of Opotiki.
By DAVID PORTER
PCIF formed a syndicate including Eastern Bay Energy Trust and BayTrust and have invested $5.5 million into the $37 million project. Substantial funding of $19 million had already been secured from the Government’s Provincial Growth Fund. (PGF)
An estimated 230 new jobs will be created in the Eastern Bay of Plenty and future employees’ social and educational needs will be a top priority.
PCIF was established late last year – attracting a number of high-profile investors – to create positive social and environmental change as well as provide a return.
The project will see Whakatohea Mussels (Ōpōtiki) Ltd (WMOL) expand its blue water mussel farm and build a mussel processing factory in Opotiki.
‘A dream come true’ WMOL chairperson Ian Craig said he was pleased and relieved to get the long-awaited mussel processing factory over the finish line. “To see this project finally coming to life is a dream come true for Whakatōhea iwi and Ōpōtiki town,” he said.
Purpose Capital executive director Bill Murphy – founder of the largest member group angel investor group in New Zealand, Enterprise Angels –said what made the investment unique was the inclusion of comprehensive “impact terms” in the legal documentation
“We have worked closely with WMOL and the Whakatōhea Maori Trust Board to introduce terms relat-
ing to employment and the environment that will ensure the community and local residents will get long-lasting benefits from this project,” he said.
“It’s simplistic to just say ‘we’ll build this factory and employ a whole bunch of people’. Many of those who will work in the factory will be women and solo mums. They will face childcare issues, for example, which WMOL will address.”
Training pathways
We have worked closely with WMOL and the Whakatohea Maori Trust Board to introduce terms relating to employment and the environment that will ensure the community and local residents will get long-lasting benefits from this project.”
– Bill Murphy
Other requirements set out in the investment agreement include establishing formal training pathways (potentially to management level), and pro- viding ongoing education and advancement via scholarships, transportation support and/ or childcare subsidies, alongside a commitment to minimise the impact of operations on marine life. “We are now looking forward to supporting and working with WMOL and Whakatōhea Maori Trust Board so this project can have the truly transformative positive social and environmental impact we all desire,” said Murphy.
Now we have the opportunity to invest in our people and our community to build a better future for all.”
– Dickie
Farrar
Catalysing regional growth
EBET chairman Aaron Milne said he was excited by what lies ahead. “This investment is an opportunity to catalyse growth here in the Eastern Bay, by turning an area with a traditionally high level of unemployment into one of the largest aquaculture regions in New Zealand.”
Whakatōhea Māori Trust Board chief executive Dickie Farrar said the project was the realisation of a dream first
conceived by iwi elders back in 1996. “Now we have the opportunity to invest in our people and our community to build a better future for all,” he said.
Fisheries Minister Stuart Nash told an industry conference in Blenheim late last year that a lot of work was being done on the potential of offshore farming, adding that this was where the real potential lies.
Ōpōtiki’s open ocean aqua-
culture mussel farm represents the future of aquaculture in New Zealand as concern grows over the environmental impacts of inshore aquaculture, according to those involved in the project.
The farm is eight km off the coast of Ōpōtiki and comprises 3800ha. The mussel farm’s lines will now be expanded from 176 to 300-plus, and the processing factory will now be built. Once established, the fac-
tory will process standard live and half shell frozen mussels, but also plans in the future to move into higher value nutraceutical processing. Site works to build the processing factory are already underway and it’s hoped it will be up and running by early 2021. Said TOI EDA general manager Strategy Karl Gradon: “This is a real game changer for the region and for New Zealand.”
All parties working closely to ensure the community and local residents will get long-lasting benefits. Photo/Supplied
Comprising investment from the private and philanthropic sectors, PCIF is New Zealand’s largest impact investment fund. Major investors including the Tindall Foundation, K1W1, WEL Energy Trust, BayTrust, TECT and numerous private individuals and family trusts. PCIF leads investments, seeking to combine its $20 million-plus in capital with investment from the business, private, public, and philanthropic sectors into impact investment opportunities. PCIF aims to achieve permanent, systemic change in New Zealand.
BayTrust
BayTrust’s purpose is to provide charitable, cultural, philanthropic, recreational and other benefits to Bay of Plenty communities through accelerating bold meaningful change, assisting BOP communities and the environment to flourish. The Trust’s region extends from Katikati to Turangi to Te Kaha and includes the Eastern and Western Bay of Plenty, Rotorua and Taupo districts. BayTrust is also one of New Zealand’s leaders in impact investing and has allocated ~10% of its ~$200 million globally diversified investment portfolio to BOP Impact Investments.
Eastern Bay Energy Trust Eastern Bay Energy Trust (EBET) has been invested in the future of the Eastern Bay since its beginnings in 1994. As 100 percent shareholders of Horizon Energy Group, EBET’s main focus is on supporting a wide range of energy-related projects that directly benefit the local community. EBET and its trustees are committed to investing in projects that bring long-term, transformational change.
Approximate map of the mussel
CONNECTING BUYERS AND SELLERS OF QUALITY BUSINESSES
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At TABAK, we promise to guide you through the sales process with focus, integrity and complete confidentiality.
First on the scene
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3 2
WHY TABAK
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Networking photos from the Back in Business networking event held at CBK, Tauranga, hosted by Love Your Business in aid of the Graeme Dingle Foundation charity.
Photos by Laval Photo & Video.
1 Top Khamwanthong,Top Plastering,Lynda Lloyd,Burnett Piper Insurance Brokers and Jason Fox,Credit One Finance.
2 Anthony Hawes,Hawes Building Solutions and Rachelle Hawes,the 30-Day Positive Mindset Challenge.
6 Valerie Rowe-Mitchell, Emerald Business Advisors,Anna Fox, Generate Kiwisaver and Paulina Roach, LeavePass. 7 Billy Emeny,CBK Craft Bar KitchenTauranga and Cathy Drew,Share.
3 Phil Holland,LoveYour Business and Shula Newland,FULL Balance Financial Coaching. 4 Darren Cameron,Ultimate Coatings and Stephanie Olver,Yoga for Seniors. 5 Melissa Lawrence,The Good Local and LouiseWatson,LouiseWatson Fitness.
8 Hilary Jacobs,Betta Inspect It and Eddie Groenewald,The Print People. 9 Martine Pierhagen,Sweet Orange PR and Chris Hurley,PremierAutomotive.
First on the scene
Photos from the first post-lockdown Chamber Alliance Partners BA5 event¸which was held at
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Trinity Wharf Hotel, Tauranga
Photos by Laval Photo & Video
1 Ben Oosthuizen Pine,TSB Bank,Anna Fox,Generate Kiwisaver –Tauranga and Jason Fox Credit One. 2 Carly Shorter,People Realm,with Charlie and Helen Dalton,ZestTraining. 3 Dale Koerner and Henrik Arlund, Blue Ocean.
4 Trevor and Shona Jones,Architectural Design Group. 5 Leanne Elder,Conor Quinn,BizStar International,Philipp and MariaWilkens,Computastyle Signs. 6 GraemeWilson and Mostyn Bowler,Video Plus Productions.
7 PeteWales,BOP Business News andAndy Bell,Elite Business Systems. 8 Paul Brljevich,TABAK Business Sales and Paul Belcaster,Jennian HomesTauranga. 9 Don Scrimgeour,Terra Firma Holdings andTaka Ino,DreamTube Media Creatives. 10 Julie Meek,Intellicard and GregThompson,Fixation Coffee Roastery and Expresso.
11 TrevorVile,Baytex,a division of Structureflex and Daniel Pereira,Noel Leeming. 12 Philip Brown,Audio Solutions and Mohi Palmer,Mo’s Matakana IslandTours. 13 Hamish Carter, Hereford Catering and Geoffrey Campbell,TheWhy Marketing. 14 Paul Billinghurst,Professionals NRG Realty and Ben Oosthuizen Pine,TSB Bank.
Harnessing election insights for success
THE LAST WORD
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BY JAMES HEFFIELD
Director of Bay of Plenty marketing and PR consultancy Last Word. To find out more visit lastwordmedia.co.nz or email james@lastwordmedia.co.nz.
The election is looming large and many Kiwi businesspeople will be keeping a close eye on which political party, or likely coalition, has its nose in front. The result will have implications for business and individual tax rates, as well as the support businesses might expect to receive over the term of the next government. But the election has another significance for businesses that are thinking strategically. It offers a vast array of insights into public opinion. Any business with a domestic focus should be using this as a yardstick for measuring how well its offerings, way of operating and marketing messages align with what matters most to New Zealanders.
The Covid-19 economic recovery and sustainability – both of economic systems and the environment – are shaping up to be major themes of election 2020.
The economic recovery
New Zealand is currently fighting to survive and bounce back from the economic shock caused by the global pandemic.
More than 200,000 New Zealanders are receiving JobSeeker Support benefit or the Covid-19 Income Relief Payment. And investment in roading and water infrastructure is sorely needed, particularly in Auckland, not to mention many parts of our own Bay of Plenty region.
It’s no surprise then that creating jobs, developing new infrastructure, and implementing changes to the tax system
If your business can demonstrate its contribution to “building New Zealand” or showcase how it is employing new people or making a significant economic impact – even locally – then there’s no better time to share that story.”
in order to pay for them are major themes of this election campaign.
If your business can demonstrate its contribution to “building New Zealand” or showcase how it is employing new people or making a significant economic impact – even locally – then there’s no better time to share that story.
New Zealanders are proud
of what we’ve achieved in the battle against Covid-19 and are looking for any excuse to back Kiwi businesses and help them get through.
Positioning your business as part of New Zealand’s recovery can significantly increase the willingness of consumers to spend money with your company, rather than your competitors.
A sustainable future
While the economic recovery is top of the list for most voters, there is also a growing acceptance that the world should not seek to return to the way things were before.
According to the July Ipsos New Zealand Issues Monitor Survey, poverty and inequality is ranked as one of the top three issues by 26 percent of New Zealanders, climate change was a top three issue for 16 percent of New Zealanders and environmental pollution a top three issue for 13 percent of New Zealanders.
It seems that Kiwis have realised just how lucky we are to enjoy our special piece of paradise away from it all in the South Pacific.
There is a growing appetite to protect our people and environment, and heal some of the
scars caused by mismanagement of our natural resources and outdoor spaces.
For businesses, demonstrating environmental credentials and commitment a sustainable future is more important than ever.
Now is the time to step up worker welfare and corporate social responsibility programmes, invest in green innovations and promote initiatives you’ve implemented to reduce carbon emissions and minimise the environmental impact of your operations.
Keep in mind that sustainability is about much more than the environment. People want to see a more resilient economy that leaves nobody behind and isn’t so beholden to tourism or offshore interests for its prosperity.
They want to see less boom and bust, and more economic
security. If your business can showcase its commitment to sustainability in a holistic sense, it will be well-positioned to win fans throughout the next four years.
Theory to action
Election night will reveal the mood of the nation, but if you want to position your business for the future, there’s no better time than now.
One of the easiest ways to plan ahead is to keep an eye on pre-election polling, including thematic surveys like the Ipsos Issues Monitor.
Keep in mind that you may appeal to a particular niche that holds different views from the majority of New Zealand, so keep that in mind when considering public opinion and what that means for your business.
Good talent hard to find HUMAN RESOURCES
Post-lockdown it’s interesting to look at the drastic effects on businesses and how that is reflecting in the current recruitment market. Currently, more than ever, the candidate pool of job seekers has never been bigger. But does this equate to more talent?
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BY KELLIE HAMLETT
Kellie Hamlett is Director and Recruitment & HR Specialist, Talent ID Recruitment Ltd. She can be contacted on kellie@talentid.co.nz
ertainly, from the perspective of our recruiters’ working in the professional sectors, the short answer is no.
Yes there are plenty of new candidates available on the market, but a majority of these are a result of the hospitality and tourism downturn and the suffering retail sector.
And while these candidates bring with them a certain set of skills, unfortunately they are not meeting the required skills that the market desperately requires, in this current professional job market.
There are plenty of inter-
national applicants, many already residing in New Zealand or possibly stuck here in limbo thanks to Covid-19, and now on extended work visas.
However, once again, many are lacking the required skillset that employers are seeking and they are not ideal for permanent job opportunities due to nature of their residency status.
We are seeing a slow stream of skilled and qualified candidates coming through, due to the onset of redundancies and wage subsidies coming to an end. However, frustratingly, the
trend has seen these candidates being extremely passive in their job search with many taking their time to have a breather or perhaps exhausting the wage subsidies and benefit options prior to seeking other opportunities at this time.
We’ve also lost a large portion of the candidate pool that we call “passive” candidates.
These are candidates that are in secure jobs at present and may have previously considered looking for another role or a change of environment.
However, the risk in changing jobs in this current climate is proving to be a big hurdle.
The old adage of “quality over quantity” or to paraphrase “lacking quality over quantity” certainly rings true in today’s current candidate market.
For this reason, as recruiters, it’s become harder to “head hunt” and leaves us lit-
tle room to engage with candidates outside of the current available candidate market.
The old adage of “quality over quantity” or to paraphrase “lacking quality over quantity” certainly rings true in today’s current candidate market. Our job as recruiters is always challenging.
Today’s challenges are extremely frustrating. But it is also pleasing to know that most businesses and organisations have remained resilient during these times, and are still on the hunt for exceptional talent.
Building New Zealand through economic recovery.
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