ernor Adrian Orr’s gloomy warnings late last year saw him talking up the prospects of a dismal 2023 economy and stressing the need to curb inflation.
But it wasn’t just a call for businesses to slow things down: he also warned the government to ease back on spending.
That will be difficult to do for the Labour Government when all the recent polls suggest it will face real problems winning the next election, and it has committed to maintaining generous spending to avoid defeat. The dismal economic predictions have also highlighted the country’s labour problems, and given the opposition parties a renewed opportunity to pitch their wares for the next election.
It is ironic of course that Orr himself could be considered a major cause of the
The chances are growing that the Reserve Bank has over-cooked policy restraint after keeping things
too easy.”
– Tony Alexander
inflation problem, given the government effectively encouraged him to relax spending controls to reduce pain for the beleaguered, Covid 19-affected electorate.
The reality now is that New Zealand inflation is estimated at 7.2 percent, well above what was typically considered extreme.
Facing up to economic reality
Orr appeared before Parliament’s Finance and Expenditure Select Committee late last year and effectively apologised for the state of interest rates, blaming the international situation. New Zealand had been buffeted by “very significant economic shocks” – namely Covid-19 supply chain disruptions and Russia’s invasion of Ukraine. And the bank was expecting well above its 1-3 percent target range, he acknowledged.
Green Party MP Chlöe Swarbrick reportedly asked Orr if commentary suggesting the Reserve Bank was “deliberating engineering a recession” to tame inflation was correct.
“We are deliberately trying to slow aggregate spending in the economy,” he responded.
Continued on page 3
Economic prospects in 2023
From page 1
“The quicker inflation expectations come down, the less work we need to do and the less likely it is that we have a prolonged period of low or negative growth.”
Inflation reduction likely
As Priority One Chief Executive Nigel Tutt commented recently, drastic action in the form of a sharp increase in interest rates should see inflation reduce over time, by increasing borrowing costs for individuals and businesses, leading them to less spending and cooling prices.
“High inflation is undoubtedly bad, but unfortunately, action taken to control inflation will also come with nasty side-effects,” he commented recently.
As we know, the Reserve Bank only really has one effective weapon to control inflation, the rather blunt tool of varying the official cash rate. Essentially, the Reserve Bank is warning of a recession in the coming year.
That is assuming the business sector and individuals respond as might be predicted to increased borrowing costs by spending less and cooling prices.
And while that may help struggling households nationwide, it also suggests that businesses may be employing less people, adding to unemployment.
So far that hasn’t been a major issue, given the relatively low supply of labour and visa controls, but the situation could change.
Leading economist and property specialist Tony Alexander noted in his recent “Tony’s View” column that for the moment psychology is negative courtesy of the Reserve Bank’s scary words and rate rise.
Businesses in Tauranga and the Western Bay have proved strong over the past couple of years, many of our exporters have good market positions and unemployment is arguably too low anyway.”
– Nigel Tutt
Negative sentiment will pass
“But the negative sentiment will pass, and I would expect the larger investors with good cash reserves built up after selling their crap last year to now be actively looking to capitalise on the pessimism and make some good long-term purchases,” he commented. Alexander added that this might be the best opportunity in a generation for first home buyers to get back into the market.
In Alexander’s view, current fixed mortgage rates are probably at their peaks for this cycle.
“Suffice to say, the chances are growing that the Reserve Bank has over-cooked policy restraint after keeping things too easy last year (2021),” he commented. “Offshore inflation is easing, NZ business and consumer confidence is newly falling, the NZ dollar is rising, and the labour market is weakening.”
Cautiously optimistic
Nigel Tutt takes the view that while the Bay will feel the impact of the slowdown, it won’t be quite as bad as some other regions experience.
“An obvious area where businesses will be uncomfortable is retail and hospitality, where consumers will be less likely to part with their money than we have seen in past years,” he commented.
Tutt expects construction to see the most pain however, as residential house sales dry up and commercial projects are harder to make work.
“On the positive side, businesses in Tauranga and the Western Bay have proved strong over the past couple of years, many of our exporters have good market positions and unemployment is arguably too low anyway.
“I expect that these factors will see us through the next year in reasonable shape.”
We are deliberately trying to slow aggregate spending in the economy.” – Adrian Orr
CHECKING THE PULSE OF ROTORUA BUSINESS
The operating environment that Rotorua businesses find themselves in has changed dramatically compared with the first Pulse survey conducted in April according to the region’s most recent six-monthly Business Pulse Report.
he Rotorua Business
TPulse programme is a joint initiative between RotoruaNZ and Rotorua Business Chamber. The programme provides Rotorua business leaders (owners, CEOs, GMs) an opportunity to share their thoughts on the local economy and how their business is faring across key metrics.
This survey was in field from 6-23 October 2022 and was completed by 82 Rotorua businesses. It is the second survey in the programme. The first survey was conducted in April 2022 and the programme will continue to run on a sixmonthly basis.
According to the report, macro conditions have shifted, from being Covid-19-centric and the resulting direct impacts of border uncertainty and operating restrictions, to being more complex due to global inflation, geopolitical forces and worldwide talent shortages.
Businesses will be watching debt levels closely as central banks around the world hike interest rates in an attempt to curb inflation. However, low rates of unemployment have negated the impact of these hikes, leading to steeper rate climbs.
Looking to 2023, homeowners refixing mortgages will be faced with higher interest rates, and consumers grappling with the continued rise in cost of living will likely see a rapidly reducing disposable income and spending propensity.
The threat of an economic downturn in 2023 is very real according to economists, which, coupled with inflation levels, will lead to a challenging business operating environment.
At a local level, confidence has been buoyed by the opening of borders and the return of international tourists, bringing with them not only economic activity but vibrancy and optimism.
The newly elected Council and mayor have added to this positivity, providing the business community with a much needed reset and way forward after an immensely challenging few years.
Rotorua business confidence has shifted in the right direction as international visitors return and a new Council takes the reins. Macro challenges weigh on businesses looking out to 2023 as staffing and inflationary pressures continue.
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. www.bopbusinessnews.co.nz
Bay of Plenty Business Publications
309/424 Maunganui Rd, Mt Maunganui, 3116
Bay of Plenty Business Publications specialises in business publishing, advertising, design, print and electronic media services.
The deluge may be unstoppable
As we approached the 2022 Christmas season, I was impelled to return to a subject I’ve addressed before. It is of vital importance, not only to our core business audience, but to people throughout the world.
The year’s widespread media reports of unseasonal typhoons, overthe-top monsoonal deluges and melting icecaps make it clear: climate change is not merely upon us, but is racing away and on the verge of being unstoppable.
It was gratifying to see the wide news coverage devoted to this year’s recently concluded COP27 conference. The figure 27 simply means it is the 27th annual international conference on climate change, this year hosted by Egypt.
Some encouraging signs
On one level, it was encouraging that COP27 focused attention on concerns over whether or not we can control the seemingly inexorable rise of climate change. And readers of the proceedings of COP27 may have taken some heart from the fact that protests by the most affected and vulnerable poor countries about the lack of progress at least pushed out the conference’s closing by an extra day.
David Porter
final communiqué. But following the hosannas that the needs of the poor countries were finally being taken seriously, it still remained unclear exactly how and when the practicalities of financing their needs would be achieved. These details will be addressed in future COP conferences.
In case you missed last month’s edition Scan to subscribe
The recent intergovernmental report on Climate Change suggests that Earth’s climate temperature will exceed the crucial rise of 1.5 degrees centigrade in coming decades, unless there are immediate and rapid reductions in greenhouse gas emissions. Failure to act will have a crippling effect on all countries, not just the low-lying islands or developing countries that are currently beset.
Developed countries have long resisted calls from the more obviously threatened low-lying countries in particular to have direct talks on financing their loss and damage from climate change. Our Pacific neighbour Tuvalu has already announced plans to effectively maintain its future existence as an online-only entity.
So it was indeed a major breakthrough that these concerns finally made it onto the
Still, the conference outcomes were seen as major public recognition of the dangers the world faces. But it turned out that COP27’s organisers already had a ‘final’ communiqué ready to release. And in a surprise to the endangered low-lying countries, the final statement contained hitherto largely unseen language referring to the inclusion of ‘low-emissions’ energy, alongside renewables, as energy sources of the future.
As EY put it in a commentary: “Many believe [inclusion of] this undefined term to be a significant loophole, as it could be used to justify new fossil fuel development.”
Perhaps the simplest, and saddest reason for the slow progress, was evidenced by the fact that there were in fact more oil and gas lobbyists at COP27 than delegates, according to widespread media coverage. According to one report, there were 636 lobbyists from the oil and gas industries registered, which was higher than the 503 at the previous COP26. And they outnumbered the delegation of any single country. Many observers believe inclusion of the “low-emissions” term was a significant loophole that could be used to justify new fossil fuel development. One would have to be naïve to not understand the COP27 implementation plan that was finally revealed reflected the influence of fossil fuel lobbyists. Yes, progress was made and crucial attention was focused on the core issues. But there remains a very long way to go if we are to address the climate change problems that are facing Earth.
Making Quality IT, Simple
THE SHINE COLLECTIVE
Celebrating 10 years
The Shine Collective recently hosted clients, whānau and guests at their Tauranga office to celebrate 10 years in business. The award winning strategic communications consultancy has grown from a one-man band in 2012 to a thriving business of 11 professionals under the guidance of co-directors Jacky James and Meg Jones, with offices in both Tauranga and Rotorua. Photographer: Stephen Parker
1 6 10 3 5 4 9 2 7 8 13 12 11
“My Dale Carnegie journey started in 2009 attending the Course and realising how powerful it was to improving my performance, my relationships and helping me maintain a level of wellness and understanding of others. This course has had wide reaching effects in my work and at Waipuna Hospice with other staff attending the course – all with excellent feedback and changes in their personal outlook, development, and interactions with others. I cannot recommend the Dale Carnegie Course enough – I am always amazed that Dale’s findings from 1930’s are still so relevant today. Thank you Dale!” – Richard Thurlow, CEO Waipuna Hospice
Take Command
The Dale Carnegie Course: Effective Communications & Human Relations
• Build Greater Self-Confidence
• Strengthen People Skills
• Enhance Communication Skills
• Develop Leadership Skills
• Reduce Stress and Improve Our Attitude
Next Tauranga programme starts March 14th 2023
10. Mike James (TelferYoung), Cheryl Lewis (No3) & Jacky James (The Shine Collective). 11. Debbie McCauley (Heritage Consultant), Tarifa Laban & Aimee Driscoll (Ballance AgriNutrients). 12. Taite Smith & Jodie Snooks (Stuff). 13. Tegan Church (The Shine Collective) & Dean Howie (Bay of Connections).
1. Matt Cowley (Tauranga Chamber of Commerce) & Anne Blakeway (Tauranga City Council). 2. Niall Harley (Mount Brewing Co) & Jenny Jones (Auctus). 3. Meg Jones (The Shine Collective) & Peter Wales (BOP Business News). 4. Eva Wolf & Shae Skellern (The Shine Collective). 5. Brent Ireland & Erika Warne (Collab Digital).
6. Jennifer Pearson (Zest Consulting) & Katie Creamer (Bay of Plenty Regional Council). 7. Loretta Crawford (Tourism Bay of Plenty) & Gemma Bond (The Shine Collective).
8. Back row left to right, Eva Wolf, Shae Skellern, Stephanie Bennett, Jacky James, Wai Morrison, Tegan Church. Front row left to right, Tuihana Walker, Meg Jones, Sahana Jones, Gemma Bond. 9. Dean Prendergast (Priority One).
City centre revitalisation set to accelerate
Early last month, the Tauranga City Council Commissioners joined mana whenua, contractors and council staff for the karakia which marks the start of another major construction project in the city centre.
By ANNE TOLLEY, Tauranga Commission Chair
The Council’s future administration building at 90 Devonport Road will be New Zealand’s largest mass timber office building, setting a new precedent for sustainable design which minimises the structure’s embodied carbon (carbon emitted through the manufacturing, transportation and installation of building materials and components).
Targeting a 6 Green Star environmental rating, this 10,450m2 building will demonstrate sustainability leadership and when completed in around two years’ time, will bring all of the Council’s administration staff together under one roof for the first time since 2014.
It also features mātauranga Māori (Māori knowledge systems) design principles, which will influence its connection to the surrounding environment and strengthen the relationship between people and place.
The building will be leased from the developer, Willis Bond, and will activate another part of the city centre by helping to stimulate additional retail and commercial activity in this part of Devonport Road.
For the local business commu-
nity, the added impetus provided by the 38 Elizabeth development, the Craig Investment Partners building at the bottom of Devonport Road and the new council building will be considerable.
In reality though, that’s only part of a much bigger picture. The projects undertaken as part of the new civic precinct, Te Manawataki o Te Papa, as well as upgrades to the nearby waterfront reserve, Dive Crescent and the proposed coastal pathway linking the city centre with Memorial Park, are also set to revitalise our city’s heart, make it a place we can all be proud of and ensure that more people will want to live in and work, learn,
play and visit Tauranga’s cultural and heritage heartland.
Priority One has identified more than $1.5 billion of other committed or planned investments in the wider city centre, so the future of this area as the economic heart of the region is bright.
These include the Northern Quarter development on The Strand; the new High Court building that will be
part of the justice precinct redevelopment; ongoing development in the education precinct, together with new accommodation to house University of Waikato students; and the development of apartment blocks to meet the increasing demand for inner city living.
Developments on this scale don’t happen overnight, unfortunately, and there will some be construction-re-
lated inconveniences along the way, but any short-term pain will be more than offset by the long-term gain.
So the message for businesses in the city centre is that there is ‘light at the end of the tunnel’.
The metamorphosis of our city centre is underway and the significant investments referred to above will create the thriving future state we all want.
Telecoms 2023: There’s a lot to look forward to from 2degrees
Amidst the turbulence of 2022, many good things have happened within the telecommunications and technology industry, which will, in 2023, offer considerable benefits to customers across the Bay of Plenty.
Globally, technology and telco providers are putting the power in end users’ hands – so they can tailor make technology solutions on the fly as their business needs change.
Locally, the merger between 2degrees and Vocus, now well-underway with six months of work under our belt, is resulting in Flex, a platform that empowers every customer with management tools so you can control your telecoms services, spend, devices and more. We’re putting the power into your hands, so you don’t need a specialist.
We believe this is a necessary development from a wider market perspective for at least two very good reasons. The first is supporting and enabling businesses with digital technology to enhance productivity (and by digital technology, we mean fixed and mobile networks, a full range of devices, wide area networks, PBX, security and more).
The second is that as we all feel the pinch of digital skills challenges, platforms simplifying ICT procurement, management and billing let you get on with it yourself. The things you once needed ‘the IT
guy’ for can now be sorted out fast and easily.
In today’s environment, and the one we’re likely facing in 2023, where a recession is possible, every customer – from a one-person business to the largest organisation – wants flexibility. Whether for growth or contraction, flexibility means predicting the future isn’t necessary. Instead, if you need 100 phones, a PBX and a WAN connecting five offices this month, no problem. Go ahead, log on, it’s all there for you along with transparent billing. Added another branch? Configure it in, issue the new people with handsets and minutes. Scaling down? Scale down your services, too.
Traditionally, this sort of change came with a headache or two. You’d have an account manager and likely long-term contracts which would provide certainty at the cost of flexibility. Chopping or changing typically wasn’t an option, with contracts reviewed perhaps halfway through and in their last months before renewal.
So, what’s changed? One is that people in their 30s and 40s are generally digital natives. We want and often prefer self-service, choosing
it above a contact centre or even an account manager. Then there is the proliferation and popularity of accessing ‘as a service’ software and other commodities we use on a regular basis.
But the real enabler is back-end technology 2degrees has built in our Flex platform. This company wanted a way to manage a fleet of more than 1400 mobile devices –with different allowances for different users. We build a management tool that means they can manage it all in-house, in real time.
2023 will see this platform made available to every 2degrees customer so that you can manage your telecoms services directly. You don’t have to talk to us (though by all means, do if you prefer!)
This is unique to 2degrees and in many respects reflects how we fight for fair, challenge the status quo and provide what customers want – and who doesn’t want simplicity, convenience, and flexibility, especially in an environment of uncertainty. In Flex, you get access, automation, and ease. Telecoms and related IT services are enablers. With Flex, you enable yourself with no fuss.
I’d also like to mention the
importance of networking and human interaction. I’ve seen the enormous value of being back in the office, engaging directly on concerns and opportunities or just generally building understanding.
I can’t overstate the importance of face-to-face time and it’s worth reflecting on increasing in-office time and maximising the learning and growth opportunities this brings. After all, whatever your business, like ours, it is about people. That’s also why we work closely
with the Chamber of Commerce and local organisations across the Bay. It isn’t about selling but understanding the challenges and pressures we all face. 2023 could be a tough year; we can make it easier the classic Kiwi way, and that’s by working together and getting the hard mahi done.
Andrew Fairgray,Chief Business Officer,2degrees
AnneTolley
An artist’s render of the Council administration building to be constructed at 90 Devonport Road.
Hey Government – at the very least, be kind to franchising!
Ibelieve it is fair to say business is generally not happy with the government. But there is one business sector, a significant contributor to the economy, which should not only be feeling unhappy, but should also be asking: “Hey Government, be kind, and start by being fair”; That sector is franchising.
I have previously written on Why Franchising Matters to the New Zealand Economy (BBN, June 2022). Sales in the franchise sector were estimated at $36.8 billion, or approximately 12 percent of New Zealand’s Gross Domestic Product in 2021. Add motor vehicle sales of $13.7 billion, and fuel retail sales of $8 billion, and sales for the entire franchising sector were estimated at $58.5 billion.
So, I find it staggering that the government not only largely ignores franchising, with parts of the bureaucracy ignorant about what franchising is or is not, but worse still, certain parts of the bureaucracy have chosen to unfairly target and penalize franchising.
Two areas in particular where there is different treatment applied to franchises are Accredited Employer Work Visa (AEWV) employer accreditation, and what feels like a targeted vendetta from the Labour Inspectorate.
AEWV Employer Accreditation
The Government has touted the AEWV employer accreditation program as a faster, easier and more efficient way
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
for businesses to employ staff requiring work visas. However, in their wisdom, through MBIE, franchised businesses are treated differently to their independent cousins.
Firstly, where accreditation for an independent business costs $740, for a similar business that is operating under a franchise model that cost is $1980. There’s no additional work on MBIEs part – none.
Secondly, the more significant difference in treatment is the requirement for franchise business owners to have “been trading as a franchisee for at least 12 months”.
This can have a major impact on both new and existing businesses. For a new franchisee this means that they cannot be accredited for 12 months, so are unable to employ anyone on a work visa. MBIE may argue that the business is new and they perhaps don’t have the experience – the very reason many people buy a franchise.
However, these added restrictions extend to where a new franchisee purchases an existing franchised business employing workers on visas. Those employees will lose their visas and in many cases be forced to leave the country.
Impacts of franchisees wishing to sell their businesses can be seen in their investment in accreditation and training staff (and the value they add to their business), as well as impacts on the economy and the community, which can all be eroded.
In essence, the goodwill and value they have built in their business will also be lost.
In some cases, these franchisees will either be unable to sell their businesses and or be forced to close.
Unwarranted focus from the Labour Inspectorate
There is another branch of government that has in my view been unbalanced in its treatment of franchises versus independent businesses: the Labour Inspectorate.
Based on a limited number of cases and a limited understanding of franchising, the Labour Inspectorate over the past few years has actively and vocally singled-out franchises as being poor employers, and effectively “put the sector on notice”.
The statistics don’t support the proposition that franchising promotes poor employment practices; In fact there
are often processes, checks and balances in a franchise that are not in place for an independent business.
Despite attempted positive engagement by the franchise sector, and its argument that the actions of one franchisee do not represent the thousands of good franchisees, the intense focus on the sector remains.
These two issues have been raised and commented on repeatedly in sector representation. This has largely fallen on deaf ears.
Just “be kind, be fair.”
What if the Government actually wanted to encourage and support SMEs through franchising?
When you’re treated unfairly, as a starting point it would be kind to be fair. Beyond that, what could the government do to support and encourage franchising?
Better understanding and engagement with the franchise sector
As mentioned, much of the bureaucracy does not understand franchising – greater
understanding and some appreciation of the significant economic contribution it makes to New Zealand would be a good start.
How about greater engagement from MBIE with the sector, perhaps even a dedicated ministerial appointment or portfolio?
Personally, I think it would have been wonderful if there was sector representation on one or more of the Prime Minister’s overseas trade missions.
Amongst the nearly 600 franchise systems (most home grown) operating in New Zealand there are some very bright people, creating some very interesting, and by their nature, very scalable businesses. Supporting and exporting some of those sounds like a good idea to me.
Create sympathetic immigration policy and settings
It will be interesting to see how many people ultimately immigrate to New Zealand and how many jobs are created by Minister Nash’s Active Investor Plus visa category.
How about a visa category for people willing to immigrate and invest in qualified or
accredited franchise systems? This could definitely encourage new businesses directly employing people, add to the economy and society. Don’t forget, statistically franchised businesses have higher success rates, so why not support and guide immigration investment that way? It could fit hand-in-glove with regional development plans: Qualified, guided and supported investment. Sounds good!
Create financial incentives for franchisees
Franchising is a significant contributor to GDP and franchised businesses have high success rates. Add to that, the New Zealand economy’s reliance of SMEs. So why not encourage entrepreneurship and SME development within the franchise framework? The options are many – targeted support could provide incentives around investment, tax and in particular depreciation. And don’t forget employment and training. The latter of course is part of the pathway for creating a more productive workforce – franchising is, at heart, an education and development framework.
MAKING IT EASIER FOR RSE WORKERS TO SEND MONEY HOME
As labour shortages continue to bite, and calls go out for greater numbers of immigrant workers in New Zealand, one progressive New Zealand business is forging ahead to ensure the overseas labour-force working here in Aotearoa is well served.
These overseas workers are unable to participate in NZ’s KiwiSaver superannuation and too often miss the opportunity to save for their retirement, whilst working in New Zealand. New Zealand owned fund administration specialist Appello Services Limited (who also administer KiwiSaver schemes) responded to an approach from the Ministry of Foreign Affairs and Trade in 2019 and designed and then ran a pilot programme for RSE workers to be able to contribute to their home country superannuation schemes whilst working in NZ. The resultant platform is known as the Seasonal Workers Superannuation Administration System (SWSAS). Nowhere in New Zealand is reliance on the Recognised Seasonal Employer scheme more acutely felt than in the Bay of Plenty, particularly in the horticulture sector. Large numbers of Pacific Island workers from Samoa, Vanuatu, Solomon Islands and Fiji are all beneficiaries of Appello’s service and the SWSAS platform.
Any mechanisms that can help foreign workers and their local employers are being embraced in the Bay of Plenty and nationally.
What is SWSAS and how does it work?
As a simple analogy, SWSAS provides an equivalent service to seasonal workers and Pacific Island superannuation funds to that provided by IRD for New Zealand KiwiSaver; SWSAS is a channel through which seasonal worker’s superannuation contributions can be filed and paid by employers, then aggregated, converted to appropriate foreign currencies and transferred to specified overseas
National Provident Funds.
SWSAS is principally used for seasonal worker’s superannuation contributions, however the platform is increasingly also being used by seasonal workers to make payroll deductions for regular remittances or bulk remittances back to their home country bank accounts.
“Several of the Pacific National Provident Funds are administered by Appello’s NPF software platform, so the SWSAS platform integrates seamlessly with the NPF’s business processes,” says Appello managing director Craig Nodder.
“We were not surprised, but certainly we were encouraged when the pilot was recognised as a resounding
success by all the stakeholders.”
“Progressively more and more Pacific Island National Provident Funds and Approved Employers have become SWSAS participants over the last two years, and SWSAS is now also being offered in Australia,” he says with a sense of pride.
Why has the platform been a success?
According to Nodder, SWSAS has been successful not only because it is simple, secure and easy for both workers and employers to use, but because it also allows workers to send money home far more cheaply than if they used traditional wire transfer service providers.
“SWSAS provides a safe and secure pathway for workers to make voluntary superannuation contributions and send money home conveniently, cheaply and with full transparency,” he explains. “The SWSAS
system workflows, multiple levels of reporting and audit tracing we have developed make the platform an absolute stand-out in my mind.”
The development and successful take-up of SWSAS has been an exceptional achievement considering the challenges Covid-19 has presented all sectors in since 2019.
NZ Immigration has also endorsed SWSAS for use by Approved Employers here in NZ. The platform is also compliant with New Zealand’s antimoney laundering laws.
Appello’s strong presence and rapid growth in the Bay of Plenty led to the business’ recent sponsorship of the PMG Charitable Trust.
According to Nodder, “It seemed like a natural fit and a great way to give back to the community we work in.”
For more information go to: www.appelloservices.co.nz or send an email to swsas.operations@ appelloservices.co.nz
Pressure can make diamonds, but it can also make dust
CREDIT CONTROL
> BY NICK KERR
Nick Kerr is regional manager for DebtFree NZ Ltd and director of International Private Investigations Ltd. He can be reached on 021 876 527 and Nick@debtfreenz.com
As we start the new year, hopefully refreshed and having shaken a bit of the 2021-23 dust from our heels, I think it is important we recognise how the business landscape has changed so that we will be well placed to respond accordingly.
There are unprecedented financial pressures on people from all parts of society, labour shortages in key industries and whole sectors of the economy brought to their knees because by the pandemic and the response to it. Being locked down with people who we may not have been completely sure we liked, unable to rely on even the most stable of incomes, and for many business owners the very real possibility that they may not ultimately have a business to return to, has brought to light behaviors and a frequency of financial offending that I have never seen in my career.
In the last few months we have seen millions of dollars stolen/diverted from employers by otherwise loyal employees, business partners setting up competing companies behind business their partner’s backs, and domestic partners filtering money into “escape funds”.
In one case we had to work to prevent a partici-
pant in a business from trying to arrange an “accident” that may have well killed the intended target simply for monetary gain.
In my experience, if you want to see someone behave in a way that they have never done before, put them in a position they have never been in before – unfortunately morality appears to have a price limit, and that limit seems to have fallen more sharply than a restaurant’s turnover during Covid.
With the stories of personal woe and hardship that are around – many genuine of course, but not all – it is easy to forget the belts and braces that exist to protect businesses from onboarding problem clients and problem staff.
When an attractive new client or potential staff member makes contact with you, verify their story and ask why they left the last supplier or employer?
If the reason given is, “Covid”, remember that covid gave employers and creditors
the best excuse ever to release its underperforming staff and badly conducted accounts; If the staff member or client was as good as you may think they are, ask why they are coming to you – are they the diamonds in the middle of the hard rock or are they the pulverized rock dust that didn’t make the cut?
It’s not a case of being untrusting and cynical (like a certain 42-year-old private investigator/business advisor I could mention), it’s about making prudent choices in what is probably a crucial rebuild period: Implement full credit checking of all key staff on application and of course all clients.
One method I recommend is reaching out to an external HR/credit consulting agency that can advise on best practice onboarding of both staff and clients. As I always say to my clients, a 15-minute process at the start of any business relationship is far more efficient than a three-day hearing at the end of it.
Just a thought.
Greening IT
TECH TALK
> BY YVONNE BLANCH
Yvonne Blanch is an Account Manager at Stratus Blue. She can be contacted at yvonne@stratusblue.co.nz
Green IT can be defined as the practice of environmentally sustainable and responsible computing. It involves not only being aware of the effect the operation of the physical components in an IT infrastructure has on the environment, but also involves the supply chain from the purchase to the disposal of those devices at end of life.
Many businesses are committed to minimising any negative impacts their operations, including their IT operations, may have on the environment. There are often economic benefits in doing so with potentially reduced disposal, operational and power costs.
Businesses can also support computer hardware manufacturers who demonstrate care in their choice of packaging. As end users you may not see the packaging that IT hardware comes in but IT sales and support companies are noticing that polystyrene and plastic are being replaced by cardboard and paper. Disposal costs are reduced as cardboard and paper can be recycled or even re-used – the large cardboard boxes are great flattened in no-dig vegetable gardening!
Computer hardware is built using many precious and semi-precious metals so ensuring our end-of-life computer hardware is sent to a recycler means so the metals can be retrieved and re-used. These metals include gold, silver, platinum, palladium, copper and more.
The EPA has estimated hat for every million cell phones that are recycled over 35,000 kilos of copper, 350 kilos of silver and 34 kilos of gold can be retrieved. That’s value that otherwise would just be landfill.
Many large IT companies are committed to reduce any negative impacts their manufacturing processes may have on the environment.
HP’s multi-pronged approach tackles carbon emissions, energy, waste, and water consumption across their oper-
ations and they aim to use 100% renewable electricity to power their global operations by 2025. By redesigning and shrinking the overall area of their motherboards Dell has estimated that they are reducing the carbon footprint of each motherboard by 50%. By better placement of componentry, they are reducing the power used in cooling the device.
Even something as simple as reducing the number of screws can have an effect not only on the manufacturing process but also on the costs for a repair.
New materials are being developed that utilise renewable products such as flax fibres. A new bio-based printed circuit board (PCB) is made with flax fibre in the base and water-soluble polymer as the glue.
The flax fibre replaces traditional plastic laminates and even better, the water-soluble polymer can dissolve – meaning recyclers can more easily separate metals and components from the boards. We are already seeing New Zealand’s most illustrious fibre,
NEW APPOINTMENTS
Car San Diego
Kermit said, “It’s not easy being green.” But he also said, “being green is what we want to be.”
wool, used in packaging – who knows what future uses that fabulous fibre will support.
There are still environmental costs to recycling so we also need to demand longer lifecycles for devices, extended manufacturers’ warranties and better repair options rather than just accepting the chuck and replace mentality we have grown used to.
It’s obvious when we look at hardware what we can do to reduce its impact, but how can computer software aid in the greening of IT?
Something as simple as the ability to work from home has been transformational to continued productivity and reduced environmental impact in a global pandemic. The applications that have enabled the new working paradigm have developed considerably in scope and usage.
Clever and judicious use of IT and its applications can support the greening of your business, reducing your carbon footprint and your costs.
Kermit said, “it’s not easy being green.” But he also said, “being green is what we want to be.”
Local team delivers ‘’world-class experience’’
When Bay of Plenty businesses host events, they host them at Trustpower Baypark. They host them with Trustpower Baypark.
Meetings, conferences, workshops, forums, symposiums, annual awards evenings, AGMs –there are rooms and spaces specifically designed to suit every type of event imaginable.
There is onsite catering to keep everyone well fed and watered throughout, there are audio visual experts on hand with top-of-therange media equipment, and there are experienced event staff who will help every step of the way.
Kristin Bainbridge from Realty Group organised three different events at Trustpower Baypark in 2022 – the EVES annual conference, the EVES annual awards evening, and the Bayleys annual awards evening.
She was ecstatic with the end result and the contribution of the Baypark events team.
“I know that without the world-class experience and professionalism from everybody at Baypark these events would not have been the success they were,” Bainbridge said.
“I had a vision of what these three events needed to be, and when I walked into the conference space the night before the events I was completely blown away.”
She said the catering was
Steve Daniels from BayAudioVisual & Kristin Bainbridge from Realty Group
“super impressive” and the level of customer service “impeccable”.
“I can still remember the guy with the stools wandering in with a smile when we needed them at short notice, everything was so easy,” Bainbridge said.
“No request I had was a problem and everyone pitched in and helped, even those team members on the day that I didn’t know.”
So, what are the options?
At Trustpower Arena there are the Arena Suites that can be configured for any occasion, whether your event has 100 people or 350 people.
The Lion Foundation Centre, on the other hand, is a first-class conference venue that can host up to 1,500 people for a banquet dinner or 4,400 people for a cocktail evening.
At Trustpower Stadium there
is the corporate lounge, the premium lounge, or the stadium lounge – all offering different outlooks and capacity options.
With virtual events now a necessity, Trustpower Baypark is also the perfect venue for events with complex technological requirements. There are projectors, screens, sound-systems and high-speed internet available, as well as staff to set it all up and run it for you. Whatever tech you need for your event, Bay Audio Visual will have it ready.
Ballance AgriNutrients held five different events at Trustpower Baypark in 2022 and has already booked another 14 for 2023.
Maree Hall, business coordinator at Ballance, said the overall experience was “great”.
She said Trustpower Baypark is the only option for large conference rooms in Tauranga and she would recommend the venue to other businesses for their events, especially with all the different room sizes and car parking available.
And it’s not all business at Baypark, either. The entertainment options are endless.
Live music and sport, speedway, comedy, expos and exhibitions.
To find out what’s on at Trustpower Baypark, visit www.trustpowerbaypark.co.nz.
Monster Truck & FMX Spectacular
The Monsters are coming New Zealand! Four spectacular monster trucks will stun the crowds at Trustpower Baypark Stadium on Saturday 25 February as part of their North Island tour. They are going up against the locals from New Zealand. These monster trucks have just completed a sell-out tour of Australia and are keen to impress New Zealanders with their car-crushing, high-leaping antics in an allout Monster Freestyle Mayhem.
With names like Outback Thunda and Sharpshooter, you can expect a spectacular family show from these 900 horsepower, V8 powered monsters with their huge wheels. If having monsters isn’t enough, the line-up of entertainment acts runs long, with the FMX aerial antics of Brodie Carmichael and his team of Aussie FMX. There will be fire stunts with walls of fire and, not to be outdone, the flame-throwing Firestorm JetVan is the hottest show in town.
With a Viper fighter plane jet engine inside, this modified van bellows out intense 20 metre flame cannons from the huge tail pipe. To bring the laughs, the little comedy duo Dipsy and Tipsy – we never know what these two will get up to on the night, but they certainly entertain.
If this isn’t enough, monster truck rides will be operating, seating around 10 people in the back – something for the whole family. Plan now for this unmissable family show with some lucky kids getting the chance to ride on a Monster Truck!
Tickets are on sale at Eventfinda.
For more information on any events, enquiries for Trustpower Baypark venues, BayStation activities or service on/off site from BayCatering, BayAudioVisual visit trustpowerbaypark.co.nz or email events@bayvenues.co.nz.
Different tax rules for different festive choices
Not only is Christmas the time to unleash Mariah Carey and Michael Bublé on the masses, it’s also time for the annual work Christmas party and token of appreciation. After the last few years, I’m sure most of you have enjoyed relaxing with colleagues with a few fruit mince pies and cold beverages before heading off on holiday.
Regardless of what your business might have done in the lead up to Christmas, it’s important to remember that different tax rules will apply to different festive choices.
These tax implications are often overlooked when providing benefits to employees and clients and I warn you the results are not always logical!
So to save any uh-oh moments in the new year, let’s review the differences between the entertainment, FBT and PAYE regimes.
As a general rule of thumb, when it comes to food and drink for employees the entertainment regime overrides the FBT regime and typically applies, unless:
• The employee can choose when to enjoy the benefit, or the benefit is enjoyed outside New Zealand; and
• The benefit is not received or used in the course of, or as a necessary consequence
of, the employee’s employment duties.
On the other hand, food and drink enjoyed with clients or other business contacts will usually be subject to the entertainment regime.
Examples
Let’s consider some practical examples that your business may come across.
Costs associated with organising a Christmas party event off premises
Expenditure on venue hire, food and drink will be subject to the entertainment regime.
Expenditure also includes incidental costs such as hiring crockery, glassware or utensils, wait staff and music. Employers can only deduct 50% of the expenditure incurred.
Providing employees with food and drink Food and drink provided on premises at a party, reception, or celebratory meal, as well
as taking employees out for food and drink off premises at restaurants, would all be subject to the entertainment regime.
However, if an employer was to give employees vouchers for a restaurant meal as a gift, and the employee can choose when to use the voucher, the cost of the voucher will be subject to FBT. Providing employees with Christmas gifts
Most gifts, such as drink bottles and keep cups, would be subject to FBT in the first instance, as these benefits can be enjoyed at the employee’s discretion. Similarly, gift baskets containing food and drink, which typically fall within the entertainment regime, would also be subject to FBT for the same reason.
Note that any benefit subject to FBT may qualify for an FBT exemption, such as the de minimis exemption. The de minimis exemption excludes
TAXATION
> BY ANDREA SCATCHARD
Andrea Scatchard is a Tax Partner at Deloitte, based in the Bay of Plenty. She can be contacted on ascatchard@deloitte.co.nz
all unclassified benefits from FBT provided that:
• The total value of all unclassified benefits provide to all employees is less than $22,500 in the previous 12 months (this amount includes all benefits provided to all employees of associated employers); and
• No employee has received more than $300 of benefits in an individual FBT quarter (or $1,200 for annual filers).
Providing customers with Christmas gifts
An odd quirk of the entertainment regime is that Inland Revenue considers that it applies to the provision of any food and drink, not just to
food and drink consumed at a function.
Inland Revenue made this position clear with an operational position specifying that if a business provided a customer with a gift basket containing wine, cheese, tea towels and soap the tax outcome would be that the tea towel and soap were fully deductible but the wine and cheese was only 50% deductible.
Cash bonuses to employees
Cash bonuses paid by an employer to an employee are taxable under the PAYE regime, this is a payment made in connection with the employee’s employment and not a payment that is regularly included in the employee’s salary and wages.
A cash bonus should be taxed at the ‘extra pay’ rate. Vouchers given to staff will generally be subject to FBT. Donations in lieu of gifts
These days many businesses are opting to provide donations in lieu of physical gifts to staff and clients. Provided this is done as a corporate donation then the normal donation deductibility rules will apply and a deduction should be available provided the company has a taxable profit for the year. Hopefully this clarifies some of the Christmas expense fishhooks before you are snagged with an expensive mistake but if you have any questions please get in touch.
Vodafone and ‘One New Zealand’
… new year, new problem?
In my last article of 2022,1 I wrote about how trade marks should be ‘distinctive’ – that is, capable of distinguishing one business’s goods or services from those of other businesses. I referred to Vodafone New Zealand’s re-brand to ONE NEW ZEALAND this year and reported how the decision to change to ONE NEW ZEALAND was met with mixed reviews. Needless to say, that wouldn’t have been the response Vodafone wanted. Also what Vodafone would not want is advice that the 18 trade mark registrations it has obtained for the word marks ONE NEW ZEALAND and ONE NZ are possibly invalid; so too 9 applications to register the new ‘O one.nz’ logo mark and 4 applications to register the word mark ONE GOOD KIWI. Why? Because the applications to register these marks were not originally filed in Vodafone’s name. They were filed in the names of Baycity Communications Limited (ONE NEW ZEALAND/ONE
NZ/‘O one.nz’ marks) and Te Rourou, Vodafone Aotearoa Foundation Tāpui (Limited) (ONE GOOD KIWI marks). This fact is important because of another principle of trade mark law: that when a person applies to register a trade mark, that person (the applicant) must be the owner of all the rights in the trade mark and must, if they are not using the subject trade mark, have “a sufficiently definite intention to use the trade mark”. If an applicant is not the owner and/ or does not have “a sufficiently definite intention to use the trade mark”, registration of the subject mark can be refused or revoked.
In Vodafone’s case, it appears that Baycity Communications and Te Rourou – both of which are wholly owned by Vodafone – filed the applications pursuant to an arrangement whereby they were to act as nominees or trustees of Vodafone as the beneficial owner, with the intention that the applications be assigned/ transferred to Vodafone when
the appropriate time came.2
INTELLECTUAL PROPERTY ISSUES
> BY BEN CAIN
Ben Cain is a Senior Associate at James & Wells. He can be contacted at 07 928 4470 (Tauranga), 07 957 5660 (Hamilton), and ben.cain@jamesandwells.com
If this is correct, then, according to current legal principle and despite later assignment of the applications to Vodafone,3 it is possible that as at 1 September 2021, when the subject applications were filed with IPONZ, neither Baycity Communications nor Te Rourou could validly claim to be the owners of all the rights in the subject trade marks. It is also possible that as at 1 September 2021 neither Baycity Communications nor Te Rourou could validly claim to have had an intention to use the subject trade marks. On either basis, the registrations for the ONE NEW ZEALAND and ONE NZ word trade marks are
possibly invalid, and 9 applications to register the ‘O one.nz’ logo mark and 4 applications to register the ONE GOOD KIWI word mark similarly invalid.4
This is perhaps why, on the very date (28 September 2022) it announced the change to ONE NEW ZEALAND, Vodafone filed a swathe of new applications to register its ‘O one.nz’ logo and associated ONE trade marks (but not, interestingly, its ONE NEW ZEALAND or ONE NZ word trade marks).
Readers will note that I have said Vodafone’s registrations and applications are ‘possibly invalid’, not ‘likely invalid’ or ‘are invalid’. The reasons
for this are two-fold: first, the law concerning assignment of trade mark applications in circumstances such as these is currently under scrutiny; and second, under the Trade Marks Act 2002, references in the Act to ‘use’ of a trade mark by the owner includes “use by a person other than the owner if that use is authorised by, and subject to, the control of the owner”. This is why the following statement appears on the Trade Marks Register among the details for most applications and registrations: The mark is being used or proposed to be used, by the applicant or with his/her consent, in relation to the goods/ services
If, under challenge, Vodafone could establish that the subject trade marks were proposed to be used by Vodafone with Baycity Communications’ and Te Rourou’s consent, then arguably the registrations and the applications are perfectly valid. This finding would accord with the practice of an IP holding company registering trade marks which it has no intention of using itself but which it authorises others to use under licence.
The first IP take home for 2023 then is this: if you are planning on starting a new business and are proposing to use an incorporated entity as your trading vehicle, you are best to incorporate that entity and then apply, in that entity’s name, to register your name or logo as a trade mark. If you don’t, and you apply to register the trade mark in your own personal name first, you could find your application successfully opposed or your registration subsequently invalidated by a third party. Neither is desirable.
Premises condition reports
Good paperwork and communication are the most important things in the landlord-occupier relationship.
Apremises condition report (PCR) is an invaluable document when committing to an office lease.
It records the condition of the premises at lease commencement, details what the landlord owns and what the tenant owns, outlines baseline tenant obligations around maintenance, and provides clarity around reinstatement or lease exit obligations.
Without a PCR, a landlord may lay claim that issues within the premises already present at the start of your lease, were your responsibility.
Will Stockley and David Guy of Bayleys’ building consultancy services’ team say to overlook getting an accurate PCR is to risk costly and lengthy disputes at lease end.
“Communication, or the lack of it, can be a downfall,” says Stockley.
“Smaller tenants particularly that fail to recognise the importance of a PCR and its reinstatement obligations at the start of the lease, often feel the biggest ‘sting’ at the end of the lease.
“Without evidence of premise condition when they took on the lease, they’re often held liable for the costs of making good the property when they leave.”
Bayleys commonly undertakes detailed PCRs for incoming office tenants prior to the commencement of the lease, providing a well-structured, clear and easy to follow document with both written and photographic components.
“We advise appointing an independent expert to prepare a PCR and to seek agreement from the other party that the schedule is a fair assessment of the property’s current condition,” explains Stockley.
“Bayleys’ real estate building surveyors are regulated by the Royal Institution of Chartered Surveyors (RICS) and we adhere to its strict rules of conduct and ethical standards, ensuring we act without bias to provide a fully accurate document that can be relied upon in the event of a dispute.
“We can also undertake and provide in-depth building condition assessments, highlighting essential works or deferred maintenance that should be rectified prior to entering into a lease with the landlord.”
Having a detailed PCR at the start of a lease helps with strategic planning and budgeting as all parties know what their obligations and costs are and minimises the likelihood of complex and more expensive claims at the end of the lease term.
“Importantly, unaltered standard ADSL leases favour landlords when there is no documented evidence of premise condition,” points out Guy.
“With a PCR, not only are you clearly defining the condition but mitigating valuable time and capital that would have gone into arguing what that condition was.”
Guy said there are two main types
of commercial leases in New Zealand: an internal repairing and insuring lease where the tenant has a narrower liability for maintenance, decorations, repairs and insurance confined to the internal parts of the property occupied by them; or a triple net or NNN where the tenant agrees to take on all costs for repairs and insurance for the property being leased from the landlord.
“You are strongly advised to seek professional advice before committing yourself to any liability, and to bear in mind that in some NNN leases, the repairing liabilities may result in the tenant having to repair existing defects.”
A make good assessment is prepared at the end of a tenancy to assess any repairs required to reinstate the premises to the condition it was in at the beginning of the tenancy, with landlord and tenant needing to work together and in a reasonable manner to ensure quick settlement.
“We regularly act on behalf of tenants to review a landlord’s make good claim and provide strategic advice to try and reduce the claim,” says Stockley.
“Having clear reinstatement responsibilities in a lease ensures that both parties are aware of their responsibilities and obligations, helping prevent expensive negotiations, which sometimes break down and potentially lead to conflict between the parties.”
UTF: BUILDING A BETTER FUTURE FOR TAURANGA WITH NEW SCHOLARSHIP
Tauranga’s property and business industry advocates, Urban Task Force (UTF) recently announced the winner of their first annual Leader Development Scholarship intended to encourage, support and retain skilled emerging business leaders in the region.
The 2022 scholarship has been awarded to Greg Steele, owner of Steele Projects, a construction project management consultant and owner of the Bay of Plenty franchise of Navigation Homes.
UTF Chairman Scott Adams says the application from Mr Steele stood out from the beginning of the shortlisting and interview process.
“Greg is a really strategic thinker. He came prepared and delivered his messages with a high degree of professionalism,” says Adams.
“His background is diverse with both the benefits of corporate training and the hands-on experience that comes from small business ownership. The Board were really impressed with his vision for the Bay of Plenty and his social awareness,” he says.
As the first beneficiary of the UTF Leader Development Scholarship, Mr Steele will receive a seat on the UTF Board, a career mentor in his field and a financial contribution towards further study.
“We’re looking forward to having Greg on the Board over the next twelve months. He has extensive experience in engineering underground utilities from his time with Downer Bay of Plenty and his passion for developing this critical infrastructure is a real
asset to our mission to improve the city’s facilities,” says Adams. UTF established the annual scholarship earlier this year to support the growth of Tauranga.
“Our work is guided by eight key priorities which include advocating for strong leadership of the city and investing in people. If we don’t retain quality emerging leaders in the city, we will return quickly to the limited, small-town thinking that has plagued Tauranga for years,” says Adams.
“I’d challenge any other business or organisation in the region to join us in doing this. It would be great to see other leaders do their bit to encourage our young people to build their careers in the Bay, to make Tauranga a longterm home for their families and have a real stake in the future of the city,” he says.
Adams believes innovation and partnerships are the key to resolving many of the city’s issues.
“We’ve all seen the problems Tauranga faces. UTF encourages all those who want the city to grow into its potential to work alongside our members advocating for strong working relationships between business, iwi, local government, and central government. Your skills are desperately needed to build a city that we can all enjoy and be proud of,” says Adams.
At Bayleys, we believe relationships are what businesses are built on and how they succeed. We understand that to maximise the return on your property you need:
What trends can local small businesses expect in 2023?
WORKPLACE WELLBEING
> BY BRIDGET SNELLING
Bridget
Snelling, Xero New Zealand Country Manager.
It’s looking like 2023 might be another challenging year for Aotearoa’s economy. Talk of recession and rising interest rates are likely to be putting the squeeze on households and small businesses alike.
When it comes to the economy, there are a few trends we expect Kiwi small business owners will encounter over the next 12 months.
Now’s the time for small business owners to figure out where they stand and what to anticipate in the next year. This all needs to be factored into their ongoing business plans.
Inflation or price rises?
One thing Bay of Plenty small business owners will need to ask themselves is how to walk the tightrope between inflation burden and passing these costs along to customers.
For businesses in local communities especially, owners can be slow to act because it’s a concern to pass expenses along to loyal customers.
While this is a concern, we often find customers are much less sensitive to price changes than businesses imagine. After all, pricing is only one of the factors they consider. Given the current economic environment, many will be expecting prices to increase.
Jumping into e-commerce
The last three years have provided plenty of incentive to diversify how small businesses in Aotearoa operate. One of the key outcomes was the explosion of e-commerce off the back of Covid-19, and this trend isn’t going anywhere. Effectively, e-commerce is a low risk way for businesses to reach a broader audience.
The current climate is pushing for small business owners to get creative with reaching and delivering their goods or services to customers.
And for entrepreneurs who have a new business idea, trialling it through an online-only platform is a great way to get started. The lower running costs and wider net profit margins give more freedom to try something different.
Small business employment to grow
The current trends point to a reversal for small businesses who have typically found it harder to hire new staff.
During challenging economic times, medium and larger sized businesses may lay people off or cut hours as a fast way to reduce costs.
As new potential employees begin to look for new jobs, small businesses need to be ready to take advantage by understanding the roles they’d like to fill and being ready to offer the right candidate at short notice.
Brace for a challenging start to the year
We know small businesses go through a tricky revenue dip every year, as sales typically slow in January and February.
Recent Xero Small Business Insights data found New Zealand small businesses experience negative cash flow for about four months of the year.
Observing cash shortages, these tend to cluster around the
HAVE YOU EVER NOTICED?
...
To read Alan Neben’s irreverent expatiation of social changes affecting Kiwis, go to bopbusinessnews.co.nz and check out columns. This month he takes a light-hearted look at how Kiwis speak in his column NZ Spelling: consonants optional
First on the scene
CHAMBER HOSTS LUNCH WITH CHRISTOPHER LUXON
The Leader of the National Party spoke to almost 100 business leaders at the Tauranga Business Chamber’s ‘Lunch with Christopher Luxon’ last November.
At Trinity Wharf, Luxon shared his views on many of the challenges New Zealand is facing and discussed his Party’s vision for the social and economic development of the country in the future. This included improved productivity, investing in tech, research and innovation, less red tape for businesses, and
increasing international connections and trade. Afterward, there was an opportunity to meet and greet with Luxon, as well as Bay of Plenty MP Todd Muller, and Tauranga MP Sam Uffindell.
On Wednesday, 1 March the Chamber will roll out the welcome mat for a morning tea with Minister of Transport, Immigration, and Workplace Relations and Safety, Hon. Michael Wood. To register, visit Tauranga.org.nz
Photos: Tauranga Business Chamber
same periods - quieter Decembers and Januaries leave small businesses short of cash when February and March bills come in.
Strong, strategic cost management can help mitigate these impacts, while a solid business plan that outlines the annual operation can identify individual business pressure points.
Digitise to get paid faster
While the challenges have been numerous, over the last two years we’ve seen Kiwi small business invoices get paid faster than pre-pandemic.
In fact, invoices were paid in 23.6 days across the first 9 months of 2022, which is 2.9 days faster than in 2019.
One element of this can be attributed to the growth of digital invoicing and online payments.
We want to empower small business owners to look into investing in cloud-based invoicing software and e-invoicing, so they can get paid faster while staying on top of their own invoicing and payments
The main trends emerging for 2023 revolve around making smart decisions to weather the impending economic challenges of the next 12 months.
For any small business owners out there feeling particularly anxious about the new year, now’s the time to speak with an accountant or bookkeeper to get your house in order and put in place the plans to get through.
1 6 3 4 5 2 7
1 Rebecca Page and Shaun Burney (Classic Group). 2 Rob Dorey (BSP Advisory Group), Kevin Kerr (Tabak Business Sales).
3 Mark Wassung (Design Engine Architects), Christopher Luxon (National Party), Valerie Rowe-Mitchell (Emerald Business Advisors), Alan Neben & Peter Wales (BOP Business News), Tony Snow (Shared Workspaces).
4 Sam Uffindell (MP for Tauranga, National Party), Lyndon Settle (Quayside), Matt Young (Pacific Coast Lodge). 5 Christopher Luxon (Leader of the National Party).
6 Paul Brljevich (Tabak Business Sales), David and Kirsty Harwood (Harwood Homes).
7 Anne Pankhurst (Tauranga Business Chamber), Sir Paul Adams (Carrus Corporation), Todd Muller (Bay of Plenty MP, National Party).
It was truly an inspiring evening, where 350 guests and dignitaries came together to celebrate business success in the Bay at the Tauranga Business Awards last December.
This year’s entrants were all very strong businesses, which made for a robust and challenging selection process for the judges. Through the pandemic, most businesses had to adapt, and for the Chamber it was important to highlight that at this year’s awards. The Chamber wanted to celebrate those businesses who
and
Congratulations to Mount Maunganui-based business Kids Ride Shotgun on taking out this year’s Business of the Year Award at the Tauranga Business Awards 2022. Tauranga Business Chamber thanks all the sponsors for supporting business excellence and the judges for the huge contribution they make to the entrants. Congratulations to all the entrants for their hard work and achievements.
Photos: Salina Galvan Photography
7 Kids Ride Shotgun – Marketing & Communications Award – Sponsor Farmer Autovillage. 8 Purpose Capital
The Flatpack Co –Emerging Business Award – Sponsor Toi Ohomai – Te
kenga. 10 Bluelab
Want to be admired? Prepare to get fired
You can’t please all the people, all the time. Business leaders, managers and politicians learn this lesson the hard way. But what if you didn’t want to just ‘please’ people? If you want 2023 to be the year you finally get respected, admired and adored…then radical action is required. Warning: This might get you fired.
If you stand for nothing, you’ll fall for anything.
Trying to be ‘nice’, avoiding conflict, keeping your head down and appealing to everyone is a fast track to a career that’s less than you deserve.
Warning: I am a reformed ‘nice guy’. For decades, I believed the path to success in my business and relationships was paved with phrases like “let’s find a win-win situation” and “if you’re happy, I’m happy”.
I wasn’t aware at the time, but I was committing career suicide. Why? Because my desire to be ‘nice’ was preventing me from achieving my true potential.
No more Mr Nice Guy
Let’s get one thing straight: I am not claiming the secret to business success is to be rude, cruel, unprofessional or unethical. Quite the opposite, in fact.
But too many CEOs and their employees are sharing a common – yet flawed – script. It goes something like this:
“If I am ‘good’ and do everything ‘right’, clients and customers will want to work with me, I will be recognised, I’ll hit all my career goals and have a problem-free life.”
Why do we believe this? These thought patterns are formed in childhood (another thing to blame the parents for),
MINING BUSINESS WEALTH
> BY FREDDIE BENNETT
Guinness World Record Holder, podcast host and bestselling author, Freddie is known as ‘The Profit Hunter’. He helps business owners enjoy more time, money and freedom by discovering and extracting hidden profits in their companies. Freddie@conqueryourmedia.com
and reinforced in adulthood: Tall poppies get cut down to size, but ‘nice’ poppies make wonderful wallflowers.
I told myself I should bend over backwards to accommodate the needs of others. So far backwards, I became a doormat. The more I got walked over, the nicer I would become. After all, niceness is the key to success…isn’t it?
Truth is, the opposite happens. We get overlooked, ignored, humiliated and passed over for the sales, promotions, relationships and rewards we tried so hard to achieve. In fact, in your desire to be nice and be admired… you’re actually increasing your chances of getting fired.
Naughty but nice
How often have you met someone who went above and beyond to convince you how ‘nice’ they were…only to discover the opposite was true.
Everyone suffering from ‘Nice employee syndrome’’ will be unique, but they will probably display at least one of the following symptoms:
• Public acts of rescue: If a colleague is angry or sad, then the overly ‘Nice’ person will step in and try to fix the problem…usually very publicly and without being asked.
• Seek approval from others: Every action will be calculated to seek approval (or avoid disapproval) from a boss, employee or partner.
• Hide their flaws and mistakes: It will be the fault of the customer, supplier, colleague, teacher, child or careless driver on State Highway 2…but never their fault. They’re too ‘nice’ to be in the wrong.
• Struggle to put themselves first: The thought of doing something purely and indulgently for themselves
Happy New Year 2023!
Most of us are well and truly ready for the New Year to begin, to close the 2022 chapter and embrace the new year with fresh optimism and energy. Last year there was a lot going on, employers had a variety of challenges to focus on and constant change. Whilst it should have been a recovery year, it was anything but.
Ihope that you’re having some time to rest, recover and relax a little over the Christmas period, recharge your batteries and fill your cup for the year ahead.
Commentary is telling us that 2023 will not be an easy year. Many of my clients have been asking my thoughts on where the market will head over the next 12 months, and while I don’t have a crystal ball, I will share some loose assumptions, along with where employment and HR trends are heading for the coming year.
The economy seems to be changing at a quicker pace than was initially expected, with consumers and businesses exercising caution, and already we are feeling the flow on from that, particularly through the construction and real estate sectors.
In the short to medium term at least, even with a recession, we will still experience skill shortages, particularly in technical roles. The employment
will make the nice individual feel overly ‘selfish’.
• Put others at their emotional centre: Does “I’ll go with whatever you decide” or “you choose, I’ll just follow your lead” sound familiar?
“But what’s wrong with being nice?” you might ask.
People who are obsessive about being seen as ‘nice’ are dishonest, secretive, manipulative, terrible at setting boundaries, experts in giving gifts with strings attached, and passive-agressive…
…and, all of a sudden, they don’t seem so ‘nice’ any more.
The issue here isn’t the behaviour itself – being a ‘nice’ person isn’t a crime. But the cracks appear when the desire to be ‘nice’ becomes a core belief system about how they’re seen, and how they see the world around them.
The solution?
It’s time to STOP being nice…and START being great.
crisis we currently have in New Zealand isn’t going to simply disappear. While we are beginning to see a few more immigrants come into the regions, it’s possible that we may also lose some of our much-needed talent to the lure of more attractive opportunities offshore, off-setting the positive impact of immigration.
As the economy tightens, we are likely to see less employee turnover as people decide to stay with their employers, opting for safe options employment-wise.
So, what will the employment and human resource landscape look like, and what trends will we see this coming year? As businesses we are still going to have to be creative in finding ways to do more with less. What does this mean?
There are three key factors that I think will shape human resources this year: Training and development, outsourcing and the smart use of technology.
Firstly, workforce planning and a skills analysis to identify what skills you currently have within your workforce, the skills you need and if targeted training and development of existing employees will meet the needs of the business, for both now and the future. What do you have, what do you need and how can you get there?
Secondly, can gaps in the workforce be filled by contractors? Can you outsource or automate these functions?
In the past couple of years, it has been noticeable how many sole operators, freelancers, VA’s and small businesses are out there offering fantastic cost-effective solutions to businesses. This potentially provides a cost-effective way of plugging gaps within your organisation, without the overheads of employing someone on a permanent basis. Finally, the smart use of technology. With a shortage of labour, how can we streamline systems and processes and or
Stop BEING SO ‘NICE’
Nice work…if you can get it
No one likes perfection. If you can embrace and share your flaws and rough edges, you will build true business and personal connections, not walk a tightrope of ‘pretending’ to be a successful leader, partner, friend or parent.
Tackle fears and issues head on. Remind yourself you got this far – so you can handle whatever comes your way today. You needn’t resort to the familiar fallbacks of asking for someone else’s permission. And yes, maybe you will screw up, but better to fail spectacularly than suffer in a purgatory of niceness.
Create a set of personal rules that you will not break under any circumstances. Boundaries help you stop feeling helpless and at the mercy of others. Let no-one overstep them.
And finally, put yourself first for once. It’s healthy to have needs, so start making life decisions as an individual, rather than by committee
HUMAN RESOURCES
> BY KELLIE
HAMLETT
Nice…but better
‘Nice’ individuals don’t finish last. They languish in middle management, constantly confused as to why they aren’t hitting the heights they know they are capable of achieving, despite being so ‘nice’ to everyone.
By losing your desire to be seen as ‘nice’, you gain a whole lot more: You win more, enjoy deeper relationships, gain confidence, become more productive, feel more in control of your life, and accept yourself for the person you are.
Remember: There is no ‘key’ to a smooth existence. Being ‘good’ or doing it ‘right’ does not insulate you from other people’s behaviours, or the chaotic, ever-changing realities of life.
2023 is almost here. You can either make changes now, or ignore this advice and see how another year of being ‘nice’ works out. Your choice. I’m just trying to be nice.
Talent ID are Recruitment Specialists and can support you through your recruitment process. Please feel free to talk to us about this by calling 07 349 1081 or emailing kellie@talentid.co.nz
functions within the business? Are there parts of the business which could be automated, saving valuable hours? I’ve said in previous articles that I feel the HR sector in particular is on the cusp of some really exciting change in this area. In an employee-led, fast-paced
market, there is real opportunity to look at some of the time-consuming and somewhat archaic processes we use to employ people.
To summarise, use the talent you have wisely – train, develop and retain. Contract-out key project or
areas where there are gaps –you’ll be surprised at how easy this is and the depth of expertise out there to assist your business. Finally, ask how can you do things better – what can you automate or streamline within your business?
“I must admit… I didn’t see how they (Fosters) were going to achieve it in the timeframe that we wanted, but they did.”
Julian Clements, Ebbett Tauranga Managing Director
Transforming an old building into a sleek new vehicle dealership in only three months was a big ask, but Fosters made it happen for Ebbett Motor Group.
Transforming an old building into a sleek new vehicle dealership in only three months was a big ask, but Fosters made it happen for Ebbett Motor Group.
Fosters was engaged early in the design phase to construct the new BYD electric vehicle showroom at 115 Third Avenue West in Tauranga.
Fosters was engaged early in the design phase to construct the new BYD electric vehicle showroom at 115 Third Avenue West in Tauranga.
“The Ebbett group already had a very positive relationship with Fosters, who have completed a number of projects, so they were the obvious choice,” Ebbett Tauranga managing director Julian Clements said.
“The Ebbett group already had a very positive relationship with Fosters, who have completed a number of projects, so they were the obvious choice,” Ebbett Tauranga managing director Julian Clements said.
“I must admit, going into it I didn’t see how they were going to achieve it in the timeframe that we wanted, but they did.”
“I must admit, going into it I didn’t see how they were going to achieve it in the timeframe that we wanted, but they did.”
The new, architecturally designed space incorporates a warehouse, yard, ofce space and a 170m² showroom. Stylish and inviting, it features polished concrete oors, a black suspended ceiling, designer lighting and a breglass faux brick wall.
The new, architecturally designed space incorporates a warehouse, yard, ofce space and a 170m² showroom. Stylish and inviting, it features polished concrete oors, a black suspended ceiling, designer lighting and a breglass faux brick wall.
to us about:
Fosters’ project management capabilities were pivotal to the project’s success, Julian said.
Fosters’ project management capabilities were pivotal to the project’s success, Julian said.
“The communication was excellent all the way through, and that’s probably one of my biggest takeaways, and a reason why I would choose Fosters again.
“The communication was excellent all the way through, and that’s probably one of my biggest takeaways, and a reason why I would choose Fosters again.
“Any queries we had were always met with a solution. Fosters handled everything, making the project an easy process.”
“Any queries we had were always met with a solution. Fosters handled everything, making the project an easy process.”
One of the world’s fastest growing electric vehicle brands, BYD are delighted with the new dealership.
One of the world’s fastest growing electric vehicle brands, BYD are delighted with the new dealership.
“It has provided, I would argue, one of the best experiences for BYD customers in New Zealand” says BYD Brand Manager Sheldon Humphries. “And the feedback we’re getting is that it’s providing a unique experience too - it’s an inviting space for people to walk into, with a very nice ambience and atmosphere.”
“It has provided, I would argue, one of the best experiences for BYD customers in New Zealand” says BYD Brand Manager Sheldon Humphries. “And the feedback we’re getting is that it’s providing a unique experience too - it’s an inviting space for people to walk into, with a very nice ambience and atmosphere.”
Fosters service offering is structured around the full cycle of commercial property. Talk
Fosters service offering is structured around the full cycle of commercial property. Talk to us about:
