Tauranga’s ambitious Sulphur Point-based Marine Precinct has shouldered its way through a challenging first couple of years in operation. The Precinct hit a new milestone in February when high end vessel painting company Super Yacht Coatings was finally able to begin building the foundations for its massive new paint shed.
BY DAVID PORTER
Despite
From page 1
They include Tauranga marine businesses and people that have had a long association with the area such as Don Mattson of Hutcheson Boat Builders, and Sean Kelly, now running Pacific 7.
Super Yacht Coatings, owned by Mark Hanna and Regan Woodward – originally from the Bay – expanded from their main operational base in Auckland. (see accompanying story)
Hanna told Bay of Plenty Business News that having grown up locally, the two directors were naturally keen to migrate back to the Bay sooner rather than later. The Precinct provided a perfect opportunity to do that, whilst also allowing
them to continue their Auckland operation where they have worked hard to build a really solid reputation.
“Our consent process was definitely challenging,” he said. “However, we are now focused on the future, and really excited at the prospect of attracting some pretty amazing yachts [and other vessels] to the region. This will be nothing but positive for the local marine industry, and the local business community generally.”
The Bay of Plenty Regional Council is the funding partner for the project, contributing $5 million to a total cost of around $12 million, mostly covered by the sale by Tauranga City Council of properties at and near the site to marine businesses.
Previously, the site was dogged for years by complaints from marine operators that they were unable to secure
long term tenancies to develop their businesses strategically in the area.
Some of the remaining issues relate to the views of some stakeholders over the TCC’s operational role in the Precinct. TCC operates the travel Continued on page 5
– Phil Wardale
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In this month’s cover story we revisit one of the Bay’s most significant infrastructure developments.
Tauranga’s ambitious Sulphur Point-based Marine Precinct has shouldered its way through a challenging first couple of years in operation.
The Precinct hit a new milestone in February when high end vessel painting company Super Yacht Coatings was finally able to begin building the foundations for its massive new paint shed.
Despite some negative reports last year on issues raised by a few stakeholders, the Precinct – which was several years in conception and construction and formally opened in August 2018 – now seems to have resolved many of the challenges it initially encountered.
Super Yacht Coatings is one of half a dozen or so marine companies now operating around the Precinct’s centrepiece high spec 6300 sqm hardstand, which features New Zealand’s biggest vessel travel hoist, the 350 tonne Hikinui.
They include Tauranga marine businesses and people that have had a long association with the area such as Don Mattson of Hutcheson Boat Builders, and Sean Kelly, now running Pacific 7. Super Yacht Coatings, owned by Mark Hanna and Regan Woodward – originally from the Bay – expanded from their main operational base in Auckland.
Hanna told Bay of Plenty Business News: “This will be nothing but positive for the local marine industry, and
the local business community generally.”
Meanwhile, Bay of Plenty beekeepers and honey producers are finding business tough as honey prices plunge to near record lows, with little sign of recovery. The price fall comes amid a flood of bulk Chinese-produced honey hitting global markets, leaving New Zealand producers incapable of matching it and making a profit at prices now as low as $3.50 a kg.
Russell Berry, head of family-owned and Rotorua-based Arataki Honey, said he fully expected a number of beekeepers to be out of business in the coming year as a result of the price slide.
Berry has spent more than 60 years involved in the industry. The high prices several years ago and the attention focused on Manuka honey had encouraged significant numbers of new beekeeping ventures to start, he said.
Today New Zealand has record high hive numbers, totalling 1.0 million, up from only 270,000 a decade ago and now has more hives than Australia.
After many years of delays and breeding challenges, Zespri has given the green light to growers wanting to trial the long-awaited Red variety of kiwifruit.
Prospects are that 150ha will initially be planted, depending upon budwood availability this autumn.
The pathway to Red’s commercialisation has been a long one. Initial hopes the launch would come almost a decade
ago were dashed by the arrival of Psa.
The impact on the varieties cultivated by Plant and Food Research was devastating, wiping out 80 percent of the fruit’s first-generation cultivars. Promises the fruit would be finally available three years ago stalled. But the marketer has now announced a soft launch for issuing the new variety to growers.
The latest iteration of the breed is sourced from the cultivars that survived the Psa outbreak. David Courtney, Zespri’s grower and alliance leader, said the latest cultivar had proved to be tolerant to Psa.
Another challenge has been ensuring the fruit had adequate shelf life to make it a viable exporting option.
Courtney said it was acknowledged the Red variety required softer handling and had a shorter shelf life. For this reason, Asia was most likely to be the first destination for the limited export volumes as production ramps up.
Trials will continue in other Zespri production regions in Northern Hemisphere to determine the commercial potential of the cultivar in different environments.
From page 3
hoist and hard stand through consultant Phil Wardale and his company. Some stakeholders would prefer to see the hard stand operations brought under the control of the marine businesses operating on the site.
One source who asked not to be named said it came down to whether the council should be in the business of being a business, and suggested there was a need for people with more direct experience in managing such a yard.
Paul Davidson, TCC general manager corporate services, said to make sure stakeholder’s concerns and ideas were heard, council had formed an Advisory Group to ensure future developments of the precinct were fit for purpose, and not only meet the needs of current stakeholders, but also future tenants.
“This new group includes a range of current precinct stake-
Our aim is to be one of New Zealand’s eminent marine precincts, putting Tauranga on the map as a destination for marine services.”
– Paul Davidson
holders, and their input will be vital in helping make decisions about future developments including the future wharf,” he said.
“While the Vessel Work’s design has changed over the course of the project, decisions have been made after engaging with stakeholders to ensure facilities meet the needs of the users, such as commercial vessels and fishing fleets.”
Raised profile for Bay capabilities
What no one appears to be disputing is the fact that the facility has sharply raised the region’s visibility as a key centre for servicing, repairs and refits for vessels that have ranged from Matakana Island’s log truck carrying barge, to high end superyachts, and legendary racing yachts such as Beau Geste, due to be relaunched in February after completing a lengthy stay.
Phil Wardale emphasized the Precinct wasn’t just attracting superyachts. He told Bay of Plenty Business News there had been 49 boats lifted last year, with a total tonnage of just over 5000 tonnes.
“The average stay was far longer than we expected and forecast,” said Wardale. “We’re doing a lot more bigger projects and people are staying longer.”
Wardale said the mixture of vessel types lifted had been just over 60 percent of “black” boats – commercial fishing boards, workboats and barges – compared to the balance of
superyachts and “white” recreational boats. in terms of number of lifts.
That included vessels such as local fishing boats in excess of 50 tonnes that were too big for local marinas and would otherwise have been forced to go to other centres for services, said Wardale.
One of the key drivers for councils’ support of the Precinct was to encourage the growth of the Bay’s marine sector, and business more generally in the Bay. And with vessels staying for weeks and in some cases several months, the facility has provided a welcome injection of revenue to the Bay – not just in direct marine costs, but also in accommodating and feeding crews.
All sites now settled
A major problem for many of the stakeholder investors in the Precinct during initial operations was the slow delivery of consent and other permissions necessary to allow the companies to finalise setting up their businesses at the new site.
According to Wardale, all sites have now been settled and the Precinct had reaffirmed the rationale for council and the Regional Infrastructure Fund’s investment and commitment to the industry.
“We’ve demonstrated that with careful management you can have a yard with both commercial and recreational vessels being lifted,” he said.
“And the big takeaway is that the Precinct has put Tauranga on the world stage in
I think that some of the detractors need to get behind the place now and support it positively, rather than being so negative.”
– Don Mattson
terms of it being a refit centre and facility and destination.”
One of the issues that surfaced last year was complaints from local fishing boats that the hard stand did not take into account their berthing and offloading needs, but this is being addressed through the inclusion of fishermen representatives on the Advisory Group.
Jim McManaway, director of Specialised Metal Fabricators Ltd (SMF), said there was activity at the site with boats being lifted and work undertaken by local companies.
He noted especially the role of Super Yacht Coatings in attracting major vessels to the Precinct.
“Well done Super Yacht
Coatings,” he said. “They’ve brought a lot of business to town and have done a fantastic job in bringing a lot of those big boats into town.”
Pacific 7’s Sean Kelly has a long association with the site before it became the Marine Precinct. He continues to operate a range of workboats and a year or so ago manufactured and launched an innovative electric boat now being leased by the Department of Conservation. He expects to launch a larger 10 m electric aluminium catamaran in the next couple of months.
Kelly has been outspoken about his dissatisfaction with aspects of the Precinct and told Bay of Plenty Business News he felt a new culture was required.
“I’ve got reservations about the management and level of service,” he said. “But we’re very slowly working through the problems. One way or another we will get there.”
High quality site
But Kelly acknowledged that physically the hard stand and hoist were of a high standard.
“There’s absolutely no question that it was a good decision to go ahead with building the facility.
“ Don Mattson of Hutcheson Boatbuilders is another veteran of the site and longtime campaigner for creating the Precinct.
He told Bay of Plenty Business News it had been worth it, despite the challenges, add-
Continued on page 6
Pachoud Yachts is an innovative boat-building company, specialising in the construction of luxury composite yachts, which has been operating in the Bay for more than three decades.
Pacific 7 is a marine contracting company that supplies marine services to local and central government, including piling, surveying, salvage and mooring, and is developing a range of electric workboats.
RMD Marine is a fishing company, fishing from the West Coast to the East Coast of the North Island. The company owns and operates fishing vessels ranging from 15mto 26m in size. RMD Marine have been working with Aotearoa Fisheries since 1993, the largest Iwi-owned fisheries company.
SYC specialises in fairing and painting large luxury vessels and has worked for numerous boat builders, shipyards and yacht owners worldwide since its formation in 2011.
SMF offers contract manufacturing, metal fabrication and machining services, including all types of marine stainless steel, aluminium and other metal-based work across the full range of boat hardware.
Matamata Motor Trimmers is a locally owned and operated business, which is a well-established specialist in clears, covers and upholstery. They cover anything from curtains, carpets, umbrellas, indoor and outdoor covers, clips and more, and occupy a corner site on Cross Road at Vessel Works.
Hutcheson Boatbuilders has been in the marine business since 1993 and is wellknown nationally for its high-quality boat building workmanship.
From page 5
ing that he had been sceptical when the Precinct planners opted for a larger hoist than was originally intended.
“But I retracted that when it opened. I think the bigger size has been worth it.”
Mattson acknowledged there had been some teething issues and some of the detractors had reasons to be disappointed.
But he said the stakeholders
would work through that.
“We’re seeing local boats getting serviced here, which has kept that money in town. There are some issues that need to be fixed, but I believe they’re being sorted.”
All of the marine service companies were getting work off the boats coming in, and Super Yacht Coatings’ new shed was now underway, which would help drive more business, said Mattson.
“I think that some of the
detractors need to get behind the place now and support it positively, rather than being so negative.”
TCC’s Paul Davidson said the goal for the Precinct was to drive economic growth in the sector, creating more jobs for people in the community.
“Our aim is to be one of New Zealand’s eminent marine precincts, putting Tauranga on the map as a destination for marine services,” he said.
A key element in the Marine Precinct’s development has been the commitment of Super Yacht Coatings and the major vessel projects it has already brought to the site. And the company’s presence is likely to become even more crucial with the longawaited launch this month of the construction of their massive 1300 sqm paint shed on the approximately 2400 sqm site.
By DAVID PORTER
Created by Bay of Plenty boys Regan Woodward and Mark Hanna, Super Yacht Coatings established a worldwide reputation for its superyacht finishing while based in Auckland.
The company signalled early in the planning of the Marine Precinct that it was keen to relocate major operations to the Bay as part of its overall business expansion. It currently has around 45 staff split between the Bay and Auckland.
Phil Wardale, manager of TCC-owned Vessel Works, which runs the hardstand and travel lift, said the precinct’s planners always knew that securing a good painter to the site would be key to its success.
“And they are very good,” said Wardale.
“When council selected them as a successful tenderer on the site and brought forward that area into stage one, the council knew it was going to be a benefit to the precinct.”
Woodward and Hanna have a combined 35-plus years’ experience and an international reputation that has helped draw clients to the Precinct and in turn has generated spin-off work for the many high quality marine service providers working both on and off site.
The new facility will allow the company to hit its “sweet spot” of providing top quality refits to superyachts in the 30m to 50m range, said general manager Ben Steele.
But it will also be handling smaller and some larger yachts, depending on tonnage, he said.
He added that Vessel
Works was working on improving the on-water refit wharf, which could bring large superyachts and megayachts to Tauranga to complete their refits.
“This would be huge for the region,” said Steele.
A major goal was reached this month with the formal beginning of foundation work for the shed, which Steele said will include full, protected, spray and refit facilities as well as office space.
Super Yacht Coatings, which has been operating out of a rented shed nearby, as well as on wrapped vessels on the hardstand itself, ran into a few challenges getting their Building Consent, which was finally approved last year.
It is understood the delays were largely because council had not previously had to approve a spray paint shed on such a large scale and wanted to ensure that all potential environmental and safety issues were properly addressed in the build.
“There have been a few teething problems and stumbling blocks,” said Steele.
But the company has still been involved in completing several major projects over the past year, he said. And now that the consent issues have been cleared up, Super Yacht Coatings was now in a position to begin heavily promoting its services.
Steele noted that Super Yacht Coatings was proud to have helped draw to the Precinct revenue in the millions of dollars for specialist local marine companies, that would otherwise have gone to other regions.
“The precinct is a great facility and we really enjoy being a part of it,” said Steele.
“Since the beginning of this year we’ve already noticed momentum building up.”
CONTACT INFORMATION
PUBLISHER
Alan Neben
TCheaper and faster court resolution for Intellectual Property (IP) disputes is on its way – maybe.
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n 16 December 2019,
the Rules Committee
EDITOR
David Porter
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– a statutory body that has responsibility for procedural rules in the Supreme Court, the Court of Appeal, the High Court and District Court – called for feedback on potential reforms to the rules governing civil trial procedures in the High Court and the District Court.
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he Bay of Plenty economy is expected to remain strong for the coming year with solid underlying growth and good prospects for 2020, say local business leaders. As reported in our cover story this month, the regional economy is still very strong and sentiment appears to be really good, with businesses cautiously optimistic about 2020.
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I won’t go into the specific proposals here, but my preliminary opinion is that they are a step in the right direction.
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The Committee is seeking feedback from the legal profession and “other courts users” (which I assume means businesses and members of the public) on reforms “to improve access to civil justice” by keeping the costs of coming to court proportionate to the nature and value of the issues in dispute.
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Something is missing though, in my view: a proposal to establish a specialist IP disputes tribunal.
At present, if you’re the owner of a registered trade mark, for example, and someone is infringing your rights in that trade mark, your options to resolve the dispute are limited.
Bay of Plenty Business News has a circulation of 8000, distributed throughout Bay of Plenty between Waihi and Opotiki including Rotorua and Taupo, and to a subscription base.
As your first move, you might call the person up and/or send them a letter demanding they stop infringing.
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The Committee is considering four specific proposals:*
1. Short form trial procedures;
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3. Summary judgment triage procedure; and
4. Streamlining pre-trial and trial processes.
It’s no secret that court proceedings can be expensive, too, with the unfortunate reality being that most businesses, especially SMEs, can’t afford court proceedings. As a result, SMEs don’t enforce their IP rights as they should and thus are deprived of access to justice. The current system of court-based IP dispute resolution is thus very unsatisfactory – as indirectly recognised by the Committee.
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If neither of those work, though, your only options –apart from doing nothing – are to sue the person in the District Court for breaching the Fair Trading Act or sue them in the High Court for trade mark infringement.
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A specialist IP disputes tribunal in New Zealand would be an affordable forum in which to decide uncomplicated “soft IP” disputes involving trade marks, copyright, designs, trade dress (or “get-up”’) and confidential information.
Email: pete@bopbusinessnews.co.nz
You cannot lodge a claim in the Disputes Tribunal, because the Disputes Tribunal is not allowed to hear intellectual property disputes.
Bay of Plenty Business Publications specialises in business publishing, advertising, design and print media services.
Due to their complexity, patent and plant variety rights disputes would be excluded. As to who would decide disputes before the tribunal, New Zealand has a plethora of appropriately qualified individuals to referee soft IP dis-
But there are two main factors that are likely to affect what sort of year we have. The first is, of course, external issues that are largely beyond New Zealand’s control. Recent years have been notable for a greater degree of international political and economic volatility than we have seen since the world emerged from the Global Financial Crisis.
The erratic US approach to trade by President Donald Trump’s government, the on-off trade wars with various major partners, and Britain’s protracted Brexit problems, as well as political changes and unrest in regions from South America to the Middle East have all played a part in heightening instability.
tion of a change in attitude has been Finance Minister Grant Robertson’s recent decision to take the advice of a range of economists and signal that he was willing to borrow cheaply and spend big on infrastructure in the coming years. We should not underestimate what a major change of policy this reflects for Labour. Robertson announced in December that the government would take advantage of historically low global interest rates - and New Zealand’s generally strong economy - to undertake “significant” spending on infrastructure.
The new Bay fund reflects the increasing focus globally on Impact Investing, where corporate foundation heavyweights and high net-worth individuals are combining forces with the philanthropic sector and family trusts to invest in innovative solutions to social and environment problems.
And David Pilkington, chair of key local business driver the Port of Tauranga, has been named Chairperson of the Year in the Deloitte Top 200 Business Awards.
Deloitte Top 200 judge
> BY BEN CAIN
Meanwhile, the Bay of Plenty-headquartered Purpose Capital Impact Fund (PCIF) has achieved its first close target of raising $20 million and is now ready to begin investing in projects nationwide. The fund was launched in March 2019 by Bill Murphy, founder of early stage investment group Enterprise Angels. (See our Bay of Plenty Business News cover story, May-June 2019).
The fund is now officially active, but will remain open for further investment and is aiming to reach $30 million.
Ben Cain is a Senior Associate at James & Wells and a Resolution Institute-accredited mediator. He can be contacted at 07 928 4470 (Tauranga), 07 957 5660 (Hamilton), and benc@jaws.co.nz.
putes; there is no shortage of expertise.
A specialist tribunal is not a novel idea. On the contrary, New Zealand already has specialist tribunals for employment disputes, motor vehicle dealer disputes, tenancy disputes and immigration-related disputes, for example.
We also have the Copyright Tribunal, but resolving copyright disputes is not within
The other major issue for New Zealand business is the fact that 2020 is an election year. There is a positive side to that. The New Zealand government, which has been regularly accused of incompetence during its term - think Kiwibuild - and of a lack of coherence and coordination between the three coalition parties, is likely to go out of its way to prime the economic pump in 2020.
The most obvious indica-
PCIF has already attracted several major investors, including the Tindall Foundation, K1W1, WEL Energy Trust, BayTrust, TECT and numerous private individuals and family trusts. K1W1’s Robbie Tindall said his family’s fund had always been about making a difference in New Zealand.
the current scope of its jurisdiction. It could be – but in my view it would be far better to have one tribunal, which could hear all types of IP disputes involving straightforward facts and straightforward legal issues – in other words, the vast majority of IP disputes in which SMEs might be involved.
To me, a specialist intellectual property disputes tri-
“Investing through Purpose Capital Impact Fund is another way for us to broaden and deepen our impact throughout the country.”
bunal in New Zealand is a no-brainer. Ultimately, however, it is you – businesses and members of the public – who need to push for such a tribunal if you agree. Are the times a-changin? We’ll see.
*See www.courtsofnz.govt. nz/about-the-judiciary/rules_ committee/access-to-civil-justice-consultation
Cathy Quinn said that any entity Pilkington chaired had performed financially and grown consistently during his tenure. Pilkington joined the Port of Tauranga Board in July 2005 and has been chair since 2013. Since then, Port of Tauranga has successfully completed its strategy to become “big ship capable” and is now by far New Zealand’s largest port. The company’s market capitalisation has more than doubled during his tenure to more than $4.6 billion. His win made it a hat trick for the port at the annual national business awards. Chief executive Mark Cairns won for Chief Executive of the Year in 2012, while Chief Financial Officer, Steve Gray, won CFO of the Year Award in 2017.
Since the launch of our monthly newspaper Bay of Plenty Business News in 2016, we have become the most credible and well-read source of business information in the region.
We felt there was also a need for a quality annual publication that celebrated the range and quality of the many businesses and benefits of the Bay and have been delighted by the support our first edition received from so many notable enterprises in the Bay region.
Year Book 2019-2020 will build on our successful, inaugural first edition. We invite you to profile your business in this prestigous annual that profiles and ‘Celebrates Bay Business’.
PRINT RUN: 6,000
DISTRIBUTION: All major businesses, business hubs, airports, across Tauranga, Western Bay, Eastern Bay, Rotorua and Whakatane.
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PDF/Print date: Monday, 20 April 2020
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The last quarter of 2019 heralded a stake shift in sentiment within financial markets. The mood lifted from cautiously wary, to a more optimistic outlook for the year ahead.
The uplift in sentiment was underpinned by the coordinated response of Central Banks to subdued inflationary pressures.
During the last few months of 2019, the major Central Banks including the Federal Reserve in the United States, European Central Bank (ECB), Bank of Japan (BOJ), and the People’s Bank of China (PBoC), all eased monetary policy by cutting interest rates and other measures. The Central Banks of New Zealand and Australia have also moved to lower interest rates, as did a host of other Central Banks around the world.
Low inflation and renewed stimulus by global Central Banks complemented an improved geopolitical and trade outlook. By the end of the year, a comprehensive victory at the polls for Boris Johnson and the UK’s Conservative Party went a long way to remove much of the uncertainty surrounding Brexit. And the trade war between the US and China de-escalated as a Phase 1 deal was agreed, scheduled to be signed in mid-January.
With low inflation keeping Central Bank policy in a stimulatory phase, the global consumer should continue to provide the heavy lifting for global growth. Not only have households benefited from lower debt servicing costs, lower interest rates have boosted asset valuations including equities, property and, until recently, bonds. The rising wealth effect of higher asset prices is contributing to the consumer’s ability to spend.
Low inflation is a longterm trend
Global inflation has been trending down since the late 1980’s. Investors have benefited handsomely. Since the Global Financial Crisis, Central Banks have pushed a lot of money into the global economy in an effort to re-stimulate growth and inflation. While consumer inflation has failed to materialise, the excess liquidity and low interest rates have provided a substantial boost to asset prices. In our opinion, these conditions look set to prevail for some time yet.
Stronger NZ dollar (NZD) reflects rising global demand for NZ Inc.
The NZD appreciated sharply (+7.6%) against the USD during the last quarter. The Australian dollar (AUD) also rose against the USD, but it was less buoyant than the NZD. While the stronger currency offsets some of the investment returns from international assets when translated to NZD, it reflects growing global demand for goods we produce, including our primary agricultural and seafood, as well as domestic assets such as government bonds and locally-listed companies. The latest New Zealand Current Account data confirms a surge of inward investment from international investors during the second half of 2019. At the same time, our terms of trade, which reflect the value of our exports over the cost of our imports, remains at a record high.
Deal fever benefited the aged care sector
Another consequence of low
> BY BRETT BELL-BOOTH
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.
interest rates and greater confidence in the economic outlook has been a sharp resurgence in corporate merger and acquisition (M&A) activity. 2019 saw a number of companies acquired and delisted from the NZX including TradeMe, Methven, Orion Healthcare, SLI Systems, and (pending shareholder approval) Abano Healthcare. Metlifecare is now the latest, with its board recommending a takeover offer late in December.
The Metlifecare takeover, plus an improving housing market, boosted New Zealand’s aged care sector. Metlifecare +53%, Summerset +34%, Arvida +31%, Oceania Healthcare +29%, and Ryman Healthcare +24% all delivered excellent gains over the quarter.
Conditions remain ripe for M&A activity to continue.
High stock prices provide companies with a strong takeover “currency”, interest rates and funding costs are low, and private equity funds around the world have record levels of cash they are looking to deploy.
Long-termism is the investor’s best friend
Economic expansions generally last for many quarters, or years, while recessions tend to be brief. The current economic expansion is now the longest on record, continuing for over 10 years in a number of countries. Expansions generate increased prosperity and wealth. This is reflected in rising equity prices. Recessions generally see a cor-
rection in equity markets, but in most instances these represent buying opportunities for longterm investors.
While the day-to-day headlines can be cause for concern, investors are well served by focussing on long-term trends. Investors that maintain sensibly diversified portfolios with a focus on quality companies and control of credit risk will be able to ride out most short-term corrections that happen from time to time. 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.
Meet at Baypark for your next event. Trustpower Baypark offers a complete package for any event with state of the art conference and meeting rooms, full Professional Conference Organiser (PCO) event management services, in-house catering, audio visual services and marketing/promotions.
The new decade started with 30,000 festival goers flocking into Tauranga for Bay Dreams.
Once again, tickets sold out and the venue was at capacity. The summer concert series also featured stand-alone concerts for Katchafire, Shapeshifter, Sticky Fingers and Tones and I during the end of December/ beginning of January.
Drifting
To satisfy the adrenaline junkies, Baypark Speedway continues to offer action-packed nights of racing for the whole family. Upcoming dates include: February 8 & 22, March 7 & 21.
If you are interested in watching the races from the comfort of one of our Corporate Boxes, contact events@ bayvenues.co.nz for more information. Check out www. bayparkspeedway.co.nz for further race details.
Back in early 2003, drifting in New Zealand was just emerging from the underground into the world of motorsport.
Several Drifting teams from all over New Zealand came together to organise and regulate events nationwide, developing competition formats on race circuits and bringing Drifting off the back-streets.
D1NZ has taken the lead in this unique automotive culture, with drifting recognised as the fastest-growing motor sports category in the world.
The Series has produced world-class competition with many of New Zealand’s top drivers representing the coun try overseas with podium fin ishes in Australia, Japan, The USA, Thailand, Malaysia, Singapore, China and Europe.
The up-coming 2020 Valvoline D1NZ Championship Series will continue to push boundaries and bring passionate car-loving Kiwis a high-octane entertainment spectacle, with a focus of educating and putting on a great drift show for fans. Round 3 of this series is on February 28 & 29 at Trustpower Stadium.
extravaganza
Tattoo & Art Extravaganza showcases the finest talent in a variety of creative fields from contemporary to traditional art form.
The New Zealand tattoo expo is back for 2020 on March 14 & 15! Mount Maunganui will be home to the top international and local tattoo
Come to Baypark to support the Waikato Bay of Plenty Magic Netball Team play against the Otago Northern Stars in Round 2 of the ANZ Premiership competition on 23 March. The thrill of watching a game of this calibre live is contagious and you will not be disappointed. The ANZ Premiership is the premier domestic netball league in New Zealand. The league was formed in 2016 as a successor to the trans-Tasman ANZ Championship, which was held from 2008 to 2016.
Active Retirees Bay of Plenty Expo
nous arts performances, wearable arts show, creative village, live entertainment and street artists. The Tattoo & Art Extravaganza celebrates culture, whanau, good vibes, contemporary and indigenous arts in many spectrums. This event is family friendly and is a candy store for art and creative enthusiasts.
The Active Retirees Bay of Plenty Expo returns on March 28 & 29.
This is your chance to meet like-minded people who can help you make the most of your retirement. Speak with experts in travel, learn more about trusts, wills and investing, join a walking group or just enjoy
a coffee with friends at the onsite cafe. Oh, and did we mention all this is FREE? The Expo will have Free Travel Seminars plus over 20 Group Tours to consider.
2020 Pacific Rim Gymnastics Championships
Gymnastics New Zealand is excited to host the 2020 Pacific Rim Gymnastics Championships at the Trustpower Arena on April 17-19. The international biennial event gathers the best of artistic, rhythmic and trampoline gymnastics from the Pacific Rim nations. It will feature Junior and Senior athletes from invited Pacific Rim countries competing in Men’s and Women’s Artistic Gymnastics, Trampoline and Rhythmic Gymnastics across three exciting days of competition including all around, team and apparatus finals.
Oceania Championships for Artistic and Trampoline will be held on Thursday April 16.
As we start a New Year and new decade there is no shortage of articles and trending social media posts on advice. High amongst them is the rise of executive or business coaching.
The analogies are that becoming a high performing professional in business is no different to a top athlete’s need to perfect their golf swing, swimming stroke or basketball lay-up shot.
The Cambridge definition of a coach is “someone whose job is to teach people to improve at a sport, skill, or school”. Makes sense, but how does their role relate to the franchise world and particularly the franchisor? They themselves are often seen as the coach.
So how does their role intersect with the often heard comment, “shouldn’t the franchisor provide or have that knowledge”?
Well, I would suggest franchisors would benefit from having coaches as much as any professional, the hint is in the dictionary definition – to improve. So in what areas should they seek and take some advice?
Many franchisors grow from being good at the doing of something – the classic economics example, say, of “building widgets”. First they build widgets, then a system around the widget building. This is the essence of franchising.
The professional and commercial backgrounds of franchise builders can vary significantly. And not surprisingly, their skill set may also vary
significantly.
But there are three common areas in which they could likely benefit from coaching. People management, leadership, and the traditional human resources management skill set are becoming increasingly valued and are all important for commercial success.
In other words, the franchisor’s core skills may be widget building when the business needs soft skills.
The often unrecognized point, however, is that a franchisor’s business is actually not based around the widget building, it is around engaging their franchisees to widget build. It is also about managing
> BY NATHAN BONNEY
Nathan Bonney is a director of Iridium Partners. He can be reached at nathan@iridium.net.nz or 0275-393-022
a franchise support team, a group of people with a hard job who need coaching and support themselves. Many franchisors simply do not have the support skill set required. It doesn’t matter how good their process for making widgets is, if they are unbearable to work with, do not develop their teams and cannot relate to their franchisees, they are going to have a lousy franchise business.
Don’t just wing it
At the risk of alienating some franchisors, I am going to say that many are winging their way through a marketing programme. There are some fran-
Manawa, a comprehensively designed residential development, is just one example of a project we are proud to put our name on.
In addition to meeting commercial objectives for Nga Potiki, the development of the site was undertaken in a way that is socially, culturally and environmentally responsible and also provided substantial housing for Nga Potiki members.
chisors who are savvy marketers and have well executed marketing and advertising programmes, but both groups could still benefit from a marketing coach.
Often franchisors – particularly founders – are either too close and protective of their own brand and or do not have the time and capacity to see a bigger picture.
Marketing is also often a point of contention between franchisors and franchisees, so bringing in an experienced, neutral external view can be highly beneficial.
Many franchisors develop relatively good skills in reading and understanding legal documents including their own
franchise agreement, leases and supply contracts. However, again they risk viewing these in isolation and without a broader context. Every franchisor should have a trusted legal advisor that they regularly review and discuss all things legal with. The law changes, as does the business climate and what was a good approach five years ago may not cut it today.
In 2020 it appears we all need coaches, not because we don’t have skills, but to hone the ones we have and deliver our best selves. Franchisors owe it to themselves, and their franchisees, to seek out the coaches they need, or they may end up with 2020 hindsight.
> 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
Mate’s Rates are more expensive than you think!
Of the debt situations that I see in my role, one of the more troubling yet increasingly common occurrences is F&F or friend and family debts. These seem to be more prevalent in the trades, but we are seeing it across all industries.
These kinds of debts have a particular set of challenges that we see time and time again.
They include emotional leverage, lack of documentation and lack of adherence to policy. In this article, I’ll look at why these issues are often not conducive to good business.
With F&F transactions, the work done is often unquoted as there is a feeling of “they will look after me”. And it’s often when the invoice arrives and it is more than was expected that the trouble begins.
Not having a quote – or better yet a rage of quotes – means that there is no defined value of works, making it impossible to ascertain what constitutes a “good” deal.
If you keep business business and friendship friendship, you should be able to keep one without it being at the expense of the other.”
Accurately assessing the value of work done after the fact, especially without market comparisons, is very difficult. Auditors and quantity surveyors train for years to be able to do this and still cost overruns and miscalculations occur even with this level of expertise.
How then can a layperson be able to know whether their mate “Bob” has looked after them or fleeced them. In cases like this, it often depends on the mood or current state of the relationship.
No matter how selfless or generous a person is, we all
We partner with you to deliver endto-end property services to help you achieve your objectives.
have a ledger in our heads of favours done for and received from F&F.
And often the view on the deal received has more to do with the state of this mental ledger, rather than the true value received.
When preparing clients for disputes tribunal hearings against F&F it is always a struggle to keep the focus on the situation at hand without “well I gave him this (water blaster/ car part/ trailer, etc) so should we mention that?
If a quote and terms are received and accepted, these uncertainties are removed
from the situation and it doesn’t have to severely affect or even possibly destroy the relationship.
In larger organisations that have dedicated accounts or credit management staff, we see accounts for F&F of the owners or directors sitting outside of the normal credit procedure. This is usually be-
cause there is a fear of causing offence to the debtor or their F&F within the organisation.
Depending on their involvement in the credit management procedure, the first time that the director or owner hears of the overdue account could be 60 or 90 days down the track, making for a more uncomfortable conversation
than is necessary as the debtor may not have received any reminders that could have resolved the issue.
In summary, if you keep business business and friendship friendship, you should be able to keep one without it being at the expense of the other. Just a thought.
TThe inaugural Smarter Business Event 2020 to be held in Tauranga on 18th March, 2020 is getting off to a fast start with great support from the busi ness community looking to show case their businesses and learn from business leaders and experts on how to run their business smarter in 2020.
Three
Three great speakers, all respected, well known busi nesspeople in their field will be talking about effective Leadership, Directorship and Governance, Social Media and Content Mar keting designed to help business owners and decision makers with making smarter business decisions.
and Content
designed to help business
Three great speakers, all respected, well know businesspeople in their field will be talking about effective Leadership, Directorship and Governance,
and decision makers with making
The event is designed to provide every business that attends with a return on their investment at a very competitive price by bringing Bay of Plenty wide businesses together at one location for a day to hear
The is designed provide every business that attends with a return on their investment at a very competitive by Bay of Plenty wide businesses together one location for a day to
The event is designed to provide every business that attends with a return on their investment at a very competitive price by bringing Bay of Plenty wide businesses together at one location for a day to hear from leaders and well-respected business people to network, make contacts, build new relationships, find new business
The National Business Network – Smarter Business Event 2020 will bring together hundreds of businesses from corporates to SME’s in one location for one day across all business categories attracting
The National Business Network – Smarter Business Event 2020 will bring together hundreds of businesses from corporates to SME’s in one location for one day across all business categories attracting business owners, decision makers, managers and staff.
The purpose of the event is to bring Bay of Plenty wide businesses together annually at one location for a day to hear from leaders and well-respected business people to network, make contacts, build new relationships, find new business partners, contractors, suppliers and clients to do business.
do business.
The event is designed to provide every business that attends with a return on their investment by offering fantastic value at a very competitive price. This is a ticketed only event with all businesses attending being paid attendees.
The event is designed to provide every business that attends with a return on their investment by offering fantastic value at a very competitive price. This is a ticketed only event with all businesses attending being paid attendees.
Taking
The
The National Business Network – Smarter Business Event 2020 will bring together hundreds of businesses from corporates to SME’s in one location for one day across all business categories attracting business owners, decision makers, managers and staff.
The purpose of the event is to bring Bay of Plenty wide businesses
The purpose of the event is to bring Bay of Plenty wide businesses together annually at one location for a day to hear from leaders and well-respected business people to network, make contacts, build new relationships, find new business partners, contractors, suppliers and clients to do business.
at one location for a day to hear from leaders
business people to network, make contacts,
find new business partners, contractors,
The event is designed to provide every business that attends with a return on their investment by offering fantastic value at a very competitive price. This is a ticketed only event with all businesses attending being paid attendees.
The event is designed to provide every business that attends with a return on their investment by offering fantastic value at a very competitive price. This is a ticketed only event with all businesses attending being paid attendees.
only event. Each business gets a 1m x 1m table with entry for 2 people from that business.
Please bring a pull up banner, business cards and other collateral to promote your business.
B2B ticketed only event. Each business gets a 1m x 1m table with entry for 2 people from that business. Please bring a pull up banner, business cards and other collateral to promote your business.
Taking out a loan can be scary business. Let our team guide you through our hassle-free process.
For great deals on the following services leading up to and on the event day please see the event website for great deals/special offers from our promotional partners.
For great deals on the following services leading up to and on the event day please see the event website for great deals/special offers from our promotional partners.
We can help you get the loan you need with repayments you feel comfortable with, so you can borrow smart.
We can help you get the loan you need with repayments you feel comfortable with, so you can borrow
Taking out a loan can be scary business. Let our team guide you through our hassle-free process.
Talk to the friendly team at MTF Finance Mt Maunganui
07 577 6680
We can help you get the loan you need with repayments you feel comfortable with, so you can borrow smart.
2 Tay Street mtmaunganui@mtf.co.nz mtf.co.nz/mtmaunganui
Terms, conditions and lending criteria apply.
Last month I talked about why a business owner might consider bringing on a minority shareholder with a view to eventually having them take over. This month I consider things from the perspective of the buyer.
Iam seeing more businesses that are offering employees a slice of the business and the employee wanting advice on whether they should buy in.
So, from the perspective of the buyer, here are a few advantages and disadvantages to employees taking a share in a business.
Benefits of buying into a business
A key first benefit to becoming a shareholder employee (as opposed to any other investment) is the potential for favourable vendor finance terms.
This could mean that the employee might not have to put any money down to get the shares.
This can mean that employees who otherwise would not have the means to be a shareholder can afford to be. There are many ways to structure how the employee might eventually pay the shares off.
A second benefit is the value of buying into a successful business. Some staff come to me saying they have
> 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
been offered 10 percent of the business and need to decide whether to do the deal or go out on their own.
Of course, there are many factors to consider in order to answer this question – but clearly it may be better to buy into a successful existing business then it is to start your own one. The statistics for how many new businesses fail within five years are quite grim.
Thirdly, buying a small share in a business could be a pathway to full ownership. Lots of employees could never afford to buy the business from their boss outright. However, if they were buying it at 10-20 percent a year then this becomes a viable option.
Not only does the employee eventually get to buy a business they could not have afforded under this option – they have been building the business the whole time they have been a minority owner.
This is likely to make the transition to a new owner more stable – as compared to an outright sale.
Some of the downsides
Agreeing on the value can be tricky. I have seen several examples where an employee has been offered 10 percent of the business – at 10 percent of the business’ value.
Unfortunately (for a business owner) the 10 percent is worth proportionality less as it
has less control. If the majority shareholders want to do something – they do it.
The 10 percent owner gets dragged along for the ride. It can be hard for a business owner to stomach a discount of potentially up to half the value of the shares given the lack of control and marketability.
Of course, price is just one aspect of the negotiation – but is important for potential new shareholder employees to understand what their potential investment is worth.
Another downside to taking a minority shareholding in a business is going to be the business partner.
No matter how well you get on, once there are two or more shareholders involved there is
some risk that everything gets a bit more complicated.
Many businesses have systems that need strengthening when unrelated shareholders enter the picture. For example, in your own business you can take out cash whenever you like. But if you keep doing that after bringing in a 10 percent shareholder you could have a problem.
A third downside to buying a small shareholding is that as a shareholder you are tied to the history of that company.
It is important that you do your homework to make sure you are comfortable with that history and there are no skeletons in the closet that will reduce the value of your investment.
Buying into the business you are working in could be a great option – particularly for those with insufficient assets to consider an outright purchase. If you are ever offered a piece of the pie, make sure you get great advice before you bite in.
As a busy business owner, you may not have had time to consider what will happen when you want to exit your business.
That’s where Tabak can help.
A successful sale and smooth transition out of business ownership depends on achieving a clear understanding of market conditions and the potential sale value of your business.
Our team of business brokers are experts in guiding business owners through this process.
So if you are looking for expert, tailored advice on how to prepare your business for sale we want to hear from you.
Areas of plastic pollution accumulation are as vast as continents throughout the oceans of the world and the largest is in our Pacific Ocean. Known as the 7th continent, it is nearly six times the size of France (3.4 million sq km).
While new legislation is rolled out condemning single-use plastic bags at our supermarkets, recycling in NZ is still limited, with mega-tonnes going into landfills in our already glutted and geographically limited land.
Recycling will form a big part of the gallery’s education programme this year and will consider the health of our environment, and specifically the need to care for our oceans and waterways.
For decades, artists around the world have created work to draw attention to our interdependence with the environment.
Land Art became one of the hallmarks of the 1970s, taking work out of the commodity-driven gallery system into the environment with figures such as Alice Aycock, Robert Smithson and Michael Heizer.
Curating Aniwaniwa by artists Brett Graham and Rachael Rakena for the 2007 Venice Biennale was as much about promoting artists from Aotearoa and their epic magnum opus, as it was to raise awareness of cultural submersion and rising
> BY ALICE HUTCHINSON
Alice Hutchison is the director of the Tauranga Art Gallery. She can be reached on director@artgallery.org.nz.
sea levels in the Pacific But increasingly refugees are finding themselves forced to leave their submerged islands to settle in New Zealand. Venice is slowly sinking, while the bush fires raging in Australia have heightened the global focus on climate change and its effects.
As freshwater sources are drying up internationally with the ever-increasing climate emergency, glaciers disappearing, our precious water is being sold to offshore companies. There is ample room for innovative recycling and avoiding certain plastics and making conscious choices – and cer-
tainly educating our younger generations eager to find ways of creating sustainability for their futures.
The marine environment in which we live, Tauranga Moana, is a precious and delicate environment, which saw New Zealand’s most cata-
Land Art became one of the hallmarks of the 1970s, taking work out of the commodity-driven gallery system into the environment.”
strophic marine disaster 10 years ago with the sinking of the Rena.
The massive amounts of toxic waste that spilled into the ocean rendered Papamoa beach a vast black oil slick destroying ocean habitats and killing thousands of birds. The impact has been particularly egregious for local iwi and residents of Mōtītī island.
The series of exhibitions and public programmes the Tauranga Art Gallery is augmenting through 2020 delves into artists and the oceans, partnering with the University of Waikato.
It also includes histories of navigation, referenced in Matatoki – Mata ā Waka, bringing precious taonga out of storage from the Tauranga
Heritage Collection, and a partnership with The Elms in conjunction with a number of Aotearoa’s leading carvers.
Edwards’ exhibition addresses plastic impact
Lianne Edwards, an artist who has a background in marine science, conservation and resource management will present her first public gallery exhibition.
Using found material garnered from the oceans, Edwards specifically addresses the “plastic diet” of sea-life; fish, birds and plankton – becoming an inextricable part of the food chain.
Her exhibition will feature a selection of work melding art, science, and repurposed, discarded materials from the Pacific Ocean, articulating the “Beauty and chaos, transience and permanence” of nature and “its mindless destruction by humankind.”
Edwards’ artworks comment on our relationship with, and how we treat and value, the natural world.
Growing up in New Zea-
land, her strong connection to the Pacific region surrounded by the Pacific Ocean is made tangible through repurposing flotsam and jetsam, plastic rubbish, and the ill-fated creatures, such as swordfish, which make up her found materials from the ocean.
Microscopically delicate or commanding a strong physical presence as in the Wayfinding series of Sentinels and Sea Kraits, environmental messages and important themes are addressed in the artist’s concern for our oceans, our native plants and animals “and the future that we will be leaving for generations to come.”
Edwards has collaborated with organisations such as the Sea Cleaners initiative, and also with wildlife scientists to draw attention to our marine environment and with our critically endangered native bird populations.
Her work is in the collections of Auckland Art Gallery Toi o Tāmaki, Chartwell Collection, Ministry of Foreign Affairs, Wallace Arts Trust and many private and public collections.
By RICHARD RENNIE
After many years of delays and breeding challenges, Zespri has given the green light to growers wanting to trial the long-awaited Red variety of kiwifruit.
Prospects are that 150ha will initially be planted, depending upon budwood availability this autumn.
The pathway to Red’s commercialisation has been a long one. Initial hopes the launch would come almost a decade ago were dashed by the arrival of Psa.
The impact on the varieties cultivated by Plant and Food Research was devastating, wiping out 80 percent of the fruit’s first-generation cultivars. Promises the fruit would be finally available three years ago stalled. But the marketer has now announced a soft launch for issuing the new variety to growers.
The latest iteration of the breed is sourced from the cultivars that survived the Psa outbreak.
David Courtney, Zespri’s grower and alliance leader, said the latest cultivar had proved to be tolerant to Psa.
Another challenge has been ensuring the fruit had adequate shelf life to make it a viable exporting option.
Courtney said it was acknowledged the Red variety required softer handling and
had a shorter shelf life. For this reason, Asia was most likely to be the first destination for the limited export volumes as production ramps up.
Trials will continue in other Zespri production regions in Northern Hemisphere to determine the commercial potential of the cultivar in different environments.
Supply chain test to come
Courtney said the fruit could only be fully tested when it was exposed to the entire supply chain environment.
Zespri growers in the Northern Hemisphere have faced a challenging year dealing with
brown marmorated stink bug invasions and a deadly emerging fungal disease.
Meanwhile, consumers appear ready and waiting for a fruit described as having a “sweetish, berry like” flavour, with good reception from all exposed to it in sensory tests and early marketing trials.
The fruit’s red colour was linked to the pres-
Despite the strong success of Green and Gold kiwifruit, the industry will welcome more diversification.
ence of anthocyanin, a unique and naturally occurring pigment with the fruit linked to cardiovascular and cognitive health.
New Zealand consumers are expected to be able to enjoy the Red variety in selected supermarkets and fruit outlets in 2020 and 2021, as production volume increases.
New Zealand Kiwifruit Growers Incorporated chief executive Nikki Johnson welcomed a more diverse portfolio
for growers, and said the diversification would support the fruit securing and maintaining supermarket shelf space.
However, she also cautioned growers to carefully assess risks associated with the new variety to make an informed decision if they decided to participate in any tender process to allocate bud wood for the proposed 150ha.
SunGold prolific SunGold, the replacement gold kiwifruit for Hort 16a that was decimated by Psa, was initially available to growers at a licensing cost of about $7000 per ha in 2013. This year, the 700ha allocated is ex-
Another challenge has been ensuring the fruit had adequate shelf life to make it a viable exporting option.”
pected to cost $280,000 per ha. So far SunGold has surprised growers by its prolific cropping ability, with yields as high as 18,000 trays per ha achievable with good management. It has also proven capable of being grown well beyond the traditional Western Bay of Plenty kiwifruit region, extending into Eastern Bay of Plenty, Hawke’s Bay and even Waikato.
Courtney said Zespri had not yet decided what mechanism it would use to distribute the initial Red crop supply.
Courtney said so far Red was only under trial across the Bay of Plenty, but had proven to be performing well, if not cropping as prolifically as SunGold.
The launch of Red is hoped to help Zespri reach its ambition to achieve $4.5 billion of exports by 2025. This year, the company is expected to exceed $2.0 billion in export sales.
Honey companies are concerned about a glut of product hitting the market.
By RICHARD RENNIE
Bay of Plenty beekeepers and honey producers are finding business tough as honey prices plunge to near record lows, with little sign of recovery.
The price fall comes amid a flood of bulk Chinese-produced honey hitting global markets, leaving New Zealand producers incapable of matching it and making a profit at prices now as low as $3.50 a kg.
Russell Berry, head of family-owned and Rotorua-based Arataki Honey, said he fully expected a number of beekeepers to be out of business in the coming year as a result of the price slide.
Berry’s operation is one of the largest in the Southern Hemisphere, overseeing 20,000 hives across much of the country and supplying 32 percent of the honey sold in New Zealand supermarkets.
Berry has spent more than 60 years involved in the industry.
“It is understood a big portion of the honey coming out of China is fake and the volumes have pushed the price down from $12.50 a kg to $3.50 a kg,” he said.
“Beekeepers need about $7 a kg to break even. “
In a good season you will produce more honey with more hives, in an average year less, but in a poor year it will be significantly less.”
– Russell Berry
Propolis problems
Berry said New Zealand beekeepers also had a problem with Propolis, a resinous mix honey bees produce, which is typically used in wound healing and skin creams and is another important part of beekeepers’ income.
“… there is also a cheap imported source coming into the country and pulling the price down to the point we can’t sell ours anymore.”
Berry said the high prices several years ago and the attention focused on Manuka honey had encouraged significant numbers of new beekeeping ventures to start.
Today New Zealand has record high hive numbers, totalling 1.0 million, up from only 270,000 a decade ago and now has more hives than Australia.
“The banks have also been encouraging beekeeping ventures, lending money on hives which is something we had never seen before,” said Berry.
But as a result, the high number of hives meant the country was effectively overstocked with bees. He estimated New Zealand could afford to lose at least 25 percent of the hives and probably produce more honey.
“In a good season you will produce more honey with more hives, in an average year less, but in a poor year it will be significantly less.”
The industry has tended to blame poor weather for the past couple of season’s lower harvests, but Berry put it down to the higher beekeeper numbers.
“Some are going to have extreme difficulty in the coming year. The only thing saving
Manuka.”
Berry cautioned there were several processors around who had committed to very high value longer-term Manuka contracts, and they would find these too would be undermined by an easing of prices now being experienced.
Issues around Manuka standards were also meaning a portion was now being fed into the bulk honey market, further depressing prices.
Jane Lorimer, president of NZ Beekeeping, runs multiple hives from the Kaimais across the Waikato. She confirmed additional Manuka was not helping, and this was in part due to ambiguity over the Manuka standards.
“Much of it is Manuka that has not graded as Manuka according to the standards.”
She said beekeepers this year had to consider whether to even harvest and extracting honey.
“You can’t stop bees making honey, but you just don’t collect it. This comes as we are also starting to see good honey flows this season.”
Higher compliance costs were also impacting cashstrapped beekeepers, with risk management programmes now required twice a year, at close to twice the previous cost per completion.
Pollination options
Lorimer said many Bay of Plenty and Waikato beekeepers would at least have their income supplemented by sup-
plying bees for
However, she pre dicted the sector was up for a significant correction with fallout likely to impact for at least the next two seasons.
John Rawcliffe, spokesman for the Manuka Honey Appellation Society, said the poor prices proved New Zealand simply could not compete on the global bulk honey market and needed to focus on mono-floral high value varieties.
In September the Manuka honey industry welcomed an injection of almost $6 million to help maintain provenance claims for the variety.
Over $5 million went to the Manuka Honey Appellation Society and the society has applied to Chinese authorities to protect the variety there, having already gained that protection in the United Kingdom.
When is the right time to sell your business? Right now. At TABAK, we promise to guide you through the sales process with focus, integrity and complete confidentiality.
Networking photos from the Tauranga Chamber of Commerce’s end of the year Business After Five event, which was jointly hosted by Hotel Armitage, and Computastyle Signs, which was celebrating its 40th birthday.
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Long thought of as the organisation that can help you leave a gift to the community in your Will, Acorn has extended its offerings to enable locals to participate in community giving regardless of their age or stage of life. Giving options now include Living Giving, trust resettlements, regular giving to favourite Community Group Funds, collective giving in the form of Giving Circles, Workplace Giving and Corporate Giving involving businesses like Cooney Lees Morgan, Metro Marketing, NumberWorks’nWords and KPMG Tauranga.
Acorn Foundation, Craigs Investment Partners and the Community Foundations of NZ launched a national partnership in December.
A long-time supporter of communities across the country, Craigs Investment Partners developed a unique and strategic giving programme.
Donations to support the greatest needs in each of the 19 communities in which Craigs has a regional office will be made in conjunction with one of the 17 community foundations found around New Zealand.
The partnership is multifaceted including a combination of Christmas Giving, Workplace Giving and the establishment of a Community Fund.
Craigs’ Christmas Giving
Donations of more than $150,000 reached charitable organisations around the country before Christmas with $27,000 gifted locally.
The local recipients included: Good Neighbour, EmpowermentNZ (based in Te Puke), St. Peter’s House, KidsCan, Awhina House Women’s Night Shelter, and Tauranga Moana Men’s Night Shelter.
Each of the 19 Craigs branches have created a Giving Committee to choose recipients in conjunction with their local community foundation.
“We see a huge benefit to our communities by giving to those with the greatest needs at a time of the year when we know that many feel huge
pressure financially.” says Craigs Managing Director, Frank Aldridge.
Craigs’ Workplace Giving
Craigs employees around the country can now sign up for payroll Workplace Giving with the employee contribution matched by Craigs up to $500 per employee. Each Craigs branch’s Giving Committee will work with their local community foundation annually to determine the most deserving recipients in their area.
Craigs Community Fund
A giving fund has been established with the Acorn Foundation whereby in the future, a portion of the Craigs fund will be distributed to recipi-
ents of their choosing. Acorn Foundation General Manager, Lori Luke, says that the Craigs Community Fund will provide a welcome boost for local charities all across New Zealand, forever. “The benefit of these kinds of funds is that it provides yearly distributions to really deserving local charities. It is amazing to have a
national company like Craigs leading the way in this sort of strategic giving, and we hope other businesses will follow suit.”
Acorn is eager to work with other WBOP businesses to develop a Workplace or Corporate Giving programme that suits their needs. Community Foundations NZ EO, Eleanor Cater, says that thoughtful giving is the way of the future. “People like to give with purpose, since it’s a far more fulfilling way to give, both for companies and for individuals. Workplace Giving is a real win/win, nurturing a purposeful team-building culture at the same time as helping to build strong communities.”
New Zealand’s third annual National Coworking Day was celebrated around the country recently with coworking spaces opening their doors to showcase what they offer. The curious were able to tour the coworking spaces and experience first-hand what these collaborative, knowledge-sharing working environments are all about.
Arecent Bayleys Research report shows that Auckland’s coworking office sector has continued its state of expansion – growing in size, membership and occupancy throughout last year, with no sign of letting up.
Auckland’s coworking presence grew by around 10,000sqm over 2018 to a total footprint of 39,500 sqm which represents an estimated 1.2 percent of the total office market – below the Asia-Pacific average of 2.1 percent.
However, there’s an additional 18,000sqm of CBD stock in the pipeline and circa 20,000sqm in the wider Auckland pipeline with roughly half due for completion over the next 12 months.
Elsewhere around the country – particularly in Wellington and Christchurch – coworking hubs are finding favour with a segment of the market looking for fluid, and adaptable work-
ing environments.
Monthly dedicated/flexi desk rates have remained largely unchanged from the last Bayleys Research survey, with current rates ranging from $499 to $1,499 for larger operators and $400 to $900 for smaller operators. Casual rates typically range between $150 and $499 per month.
Globally, the coworking phenomenon continues on an upward trajectory,with an estimated 35,000 flexible workspaces providing 48 million square metres of flexible work environment for those committed to working in a different way.
Many of these coworking spaces are being purpose-built as part of new commercial and mixed-use developments, while others are being retro-fitted into existing commercial buildings close to transport networks and other amenities.
Bayleys Auckland direc-
tor of commercial real estate, Lloyd Budd says that, increasingly, bigger corporates are utilising coworking space for their staff which is “normalising” the cowork concept and making it an extension of the traditional workplace.
“There was a perception that coworking was just for freelancers, self-employed operators, entrepreneurs or startups looking to collaborate with like-minded people, share ideas, services and reduce rental costs,” says Budd.
“However, the concept has evolved and has attracted many in the corporate sector who want to tap into the start-up culture to win new talent and new clients, and also serves remote or travelling workers well.”
Corporate entities are also broadening their thinking and engaging workers outside of the core centres then facilitating work from a coworking
A recent Bayleys Research report shows that Auckland’s coworking office sector has continued its state of expansion – growing in size, membership and occupancy throughout last year, with no sign of letting up.”
hub, which minimises relocation costs and allows the workers to be part of a safe, professional and social working environment with built-in
flexibility and lower desk/operating costs.
The coworking spaces that are emerging in New Zealand are well-spec’d with fast inter-
net speeds, coffee machines, break-out meeting rooms, boardrooms, and well-planned networking calendars.
A cowork hub removes the isolation factor from remote working and establishes a sense of community for the “residents” choosing to be part of these innovative and flexible work spaces.
If you’re looking to restructure your business model to allow for more fluidity and to broaden your potential worker base, then adopting a coworking strand to your operation could be the answer.
As I write this, outdoors on the deck overlooking beautiful Waihi Beach, I can’t help but think the Bay of Plenty is an ideal spot for a business involved in writing and creativity.
> 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.
ocation matters – and not just for logistical reasons or because you want to be seen by as much traffic as possible. It can also play a role in establishing your point of difference, capturing the imagination of your customers, and cementing your credibility.
It’s for this reason that New Zealand Trade and Enterprise is so hot on the idea of Kiwi businesses telling a unified New Zealand story, rooted in the idea that the core values are integrity, ingenuity and kaitiaki – guardianship of our people and the place we call home.
If enough of us weave the New Zealand story into own business’ messaging, it builds
international recognition of what makes New Zealand businesses different and creates a point of difference for our products and services on the world stage.
‘It’s in our nature’
This approach can be equally valuable on a regional level, for Bay businesses that want to articulate what makes them stand out from those across the rest of the country. Bay of Plenty Tourism has captured the Bay brand nicely in the tagline “It’s in our nature”.
The organisation’s brand story begins with: “Ours is a place of positive energy. A rich coastal paradise blessed
with raw potential. Where cultures embrace and the natural generosity of our people is as abundant as our fertile land and open seas. A place of discovery – our ingenuity, determination and bold thinking connect us to the world”.
This is a powerful summation of some of the Bay’s renowned attributes. And it’s not hard to see how local businesses could weave elements of this regional story into their storytelling and marketing copy to make it more compelling and credible.
Just imagine you’re a local company selling technology for the kiwifruit industry. You’ll find it easier to engage prospective customers if you
mention that you are based in the Bay of Plenty – a region known for its fertile soils and kiwifruit success – than if you say you are based in Invercargill or Wellington. The same would be true for businesses in other sectors, such as surfing apparel or fishing equipment, which align closely with the attributes mentioned in the Bay of Plenty story.
There are also many less di-
Well hello 2020 –and where did the last 20 years go?
Here we are at the beginning of a brand-new year and no doubt there is an abundance of planning and goal-setting happening for the year ahead.
As I wrote this article on holiday, looking out to the beach, I certainly reflected on a) how fortunate I am, but also b) on how technology has progressed over this time, enough to allow me to work remotely, to have valuable extra time with family and friends and to have a little more balance in my own life.
It seems like only a few years ago there was no internet here or mobile reception for that matter, and I would have had to rush back to my office to check a huge amount of emails, while wondering if I had ever actually been away on holiday.
Technology has certainly provided a lot of flexibility for myself and my business.
Recruitment-wise, I believe that we have had a positive end to 2019, which leads to a good start to the year with many organisations proactively seeking talent to increase current capabilities, noticeably
> BY KELLIE HAMLETT Director, Recruitment
& HR
Specialist,
Talent ID Recruitment Ltd. She can be contacted on kellie@talentid.co.nz or 027 227 7736
through the increase of leadership roles. More and more businesses are embracing flexible working hours within their workforce, which is in turn widening the pool of candidates available to them and increasing capability.
Candidate market tight
As a nation and region we are still experiencing a very tight candidate market, which is causing employers across a variety of sectors a fair amount of pain, it’s hard to grow a business or even meet market demand if you can’t find employees.
It seems like a sensible option to consider all available options where possible to broaden the pool of candidates.
The Bay of Plenty employment market certainly seems to be holding up reasonably well with recruitment and employment stats over the Tauranga and Rotorua regions showing positive signs of growth, and
the region still being very much on point as a destination for candidates to relocate to despite the increasing house prices.
The New Year brings movement in the workforce –those who are either relocating to the region and looking for work, or those who are currently employed and looking for a career move.
February is the time where we traditionally experience an influx of candidates, which in turn will be extremely welcomed and good for employment sector.
I urge employers to really consider hiring based on future anticipated demand rather than just present need.
Recruitment processes are presently taking longer and are increasingly difficult due to talent shortages. My advice is, if you find someone good, hire them.
In a commercial sense we are all looking forward to a positive year ahead in which
business will sustainably grow and flourish. Typical of most years we have new legislation to navigate our way through.
On 1 April, the minimum wage is set to rise again, from $17.70 per hour to $18.90 per hour. Overall as an employer I feel that this is positive.
However, I am painfully aware of the increasing costs that employers are facing.
A rise in the minimum wage may also mean that it is timely (or expected) for you to review wages across your entire organisation – especially those that are now being paid at a similar rate to the minimum wage.
The election ahead this year could stimulate a unique environment, providing yet another challenge for businesses to navigate.
Typically the closer we come to the election, businesses tend to take a deep breath and hold. The economy slows a bit and business confidence can being a little less
rect ways to bring our region’s brand story into your business storytelling. In the case of my own business, or any other Bay business in a creative industry, telling your story with an emphasis on the inspiring location where we are based can add value.
The great Bob Dylan once famously said: “Get outside. Get out into the world, man… light a candle and write under the new moon. That’s when
The outdoors is at the heart of our lifestyle in the Bay, so if Bob’s right, we’re bound to be a more inspired bunch than most. If you’re not doing so already, it’s worth taking a moment to consider how you can use the Bay of Plenty story for the benefit of your own business. You might be surprised at the difference it can make.
and set
Bay of Plenty wide businesses together annually at one location for a day to hear from leaders and well-respected business people to network, make contacts, build new relationships, find new business partners, contractors, suppliers and clients to do business.
The event is designed to provide every business that attends with a return on their investment by offering fantastic value at a very competitive price. This is a ticketed only event with all businesses attending being paid attendees.
Format
B2B ticketed only event.
Each business gets a 1m x 1m table with entry for 2 people from that business.
Please bring a pull up banner, business cards and other collateral to promote your business.
Queen Elizabeth Youth Centre (QEYC) Cnr Devonport Rd & 11th Ave, Tauranga
When you want to buy an existing business, it’s hugely important to know for sure that the business you have your eye on is indeed profitable.
You’ll have to carefully establish that the projections of potential earnings that the seller has provided are achievable and realistic. That’s why you need due diligence.
“Essentially, due diligence is doing your homework and thoroughly investigating the business before you commit to buying it,” says Paula Lines from The Law Shop.
“You’ll need to get accounting advice on the past performance of the business, research council requirements, forecast future turnover and profitability, go over the lease and all other contracts, and check the condition of all the assets you are purchasing,” she explains.
“Your accountant has to check the financial records of the business you want to buy, including annual accounts and any management reports for the past three to five years.
“Potential tax implications of the purchase need to be explained, as well as the best ownership structure.”
Paula or one of the other Business Law specialists at The Law Shop can be consulted to review the sale and purchase agreement itself, as well as the various contracts that the business you want to purchase is party to such as the
lease, agreements with suppliers, employment contracts and terms of trade.
“We can check if all the licences and certifications that are needed to operate are in order, and we can look at registered intellectual property rights such as trademarks and make sure they are being transferred to you,” Paula says.
Some of the information that you’ll need to access for the due diligence process can be sensitive, so the seller may require that you sign a confidentiality or non-disclosure agreement.
This is common practise but do make sure that the agreement has been reviewed by your lawyer before you sign it. You must also focus on the business’ viability. You should investigate what customers love about this business, and make sure that it’s included
in the sale or otherwise built upon by you as the new owner.
If the previous owner’s skills and personality are key to the success of this business, you’ll have to make sure you are just as good if not better at providing that same service.
Paula explains that if you haven’t signed a sale and purchase agreement, you can just walk away from the sale if you aren’t satisfied with the
Essentially,
due diligence is doing your homework and thoroughly investigating the business before you commit to buying it.”
results of the due diligence investigation. You could also see it as an opportunity to negotiate a
lower price, considering the matters that need to be dealt with to get everything in order.
“Due diligence takes time
and costs money but if you don’t do it, you risk losing a lot more if you find out that the business doesn’t make the money you expect, or if you need to replace things soon after purchase,” Paula says. If you are looking at buying a business and have questions about the legal side of things, contact The Law Shop by phoning 0800 LAW SHOP. The friendly team is more than happy to help.
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