The Eastern Bay of Plenty is intent on bucking the rather despondent mood that has prevailed across New Zealand in recent months as a result of Covid-19.
By DAVID PORTER
The region – which in-
cludes Opotoki and Kawerau as well as Whakatane - has seized upon the availability of government funding, in particular that from the Provincial Growth Fund, to put into practice multi-million infrastructure plans that have been more than two years in the planning.
Whakatane has been badly hit in recent years, with both the shocking Whakaari / White Island explosion at the end of last year, and the massive flooding of the Edgecumbe River in 2017 having a major impact on the community and its economy.
Whakatane District Council chief executive Steph O’Sullivan told Bay of Plenty Business News the Eastern Bay as a whole had worked really well together over the past two-and-a-half years to create a comprehensive plan, largely targeted at potential opportunities resulting from access to the Provincial Growth Fund (PGF).
“But we’ve also collabo-
rated very tightly on other opportunities that have presented themselves,” she said, noting that the BOP Regional Council had also been a key partner.
“We feel we’re on the cusp of something we’ve been waiting on for a long time,” she said. “We now have a once in a lifetime opportunity to fast-track these investment projects.”
First iwi-owned marina facility in NZ
One of the key projects in the Eastern Bay mix is the new boat harbour proposed for Whakatāne, which will be the first iwi/Māori-owned marina facility in New Zealand.
Phil Wardale, who was responsible for pulling together
Tauranga’s Marine Precinct, has taken up a new role in Whakatane with his team to advise on the project. It began just before lockdown, and Wardale is hoping to have Stage One completed within 18 months.
The yet-to-be-named Boat Harbour will be located adjacent to the Whakatāne River,
BAY IS BULLISH
on 11 ha of iwi land that has been unproductive for decades.
we first got involved, the idea was to try and get more berths alongside the river in town. But we took the council on a bit of a journey, and ended up identifying a piece of Māori land up the river.
“We had a good conversation with the land trustees [there are more than 1000 beneficial owners]. It was perfect in terms finding a piece of land that was not currently being very productive and our solution was to design a boat harbour on the land.”
Opportunities for the local community
We feel we’re on the cusp of something we’ve been waiting on for a long time. We now have a once in a lifetime opportunity to fast-track these investment projects.” – Steph O’Sullivan
“We got involved last April to draft a business case, which looked to deliver more commercial berthage,” he told Bay of Plenty Business News.
“It’s been at capacity for many years and the Council had looked at ways to accommodate more vessels. When
Wardale said the new boat harbour would provide commercial boat operators on the East Coast with access to new facilities and more berths, while increasing economic returns and providing opportunities for the local community. Of the funding, $19.6 million has been provided by the Provincial Growth Fund for the build of the boat harbour, and $9.8 million is contributed
Continued
CONTACT INFORMATION
PUBLISHER
Alan Neben
Ph: (07) 838 1333
Mob: 021 733 536
Email: alan@bopbusinessnews.co.nz
EDITOR
David Porter
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Email: david@bopbusinessnews.co.nz
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Times Media – Clare McGillivray
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Email: clare@times.co.nz
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Bay of Plenty Business Publications specialises in business publishing, advertising, design and print media services. www.bopbusinessnews.co.nz
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From the editor
In this month’s cover story of the Bay of Plenty Business News, we’re pleased to be able to report on a good news story about the Eastern Bay region’s fightback from natural disaster and the pandemic. There are great lessons here for all of us on the need for collaboration, strategic thinking, and the astute use of government and other funding.
Meanwhile, I have found that it is often the small, almost trivial things that bring home to us just how much our world has changed since the Covid19 pandemic came to dominate our thinking.
I was reflecting on the non-arrival of a small package ordered almost three months ago from the US. It sat in New York from early April until the end of May, at which time it was “consigned” to Auckland.
And according to the courier tracking, it remains somewhere between New York and Auckland. Whether it is airborne or not, I cannot say.
This parcel was nothing important. But I hate to think how typical this must be of millions of failed transactions disrupting the business of the company that had promptly responded to my order, and to many thousands of others that have been similarly affected.
All of which is to say that, instead of ordering a book from Amazon a week or so ago, I opted instead to patronise my excellent local Tauranga bookstore, which assured me the book was likely to arrive at the worst, within a month.
As with everyone else, I
am of course aware that the airline industry has taken a hammering.
But I have been shamefully slow to get my head around a much more worrying aspect of the pandemic’s consequences at the moment, namely the growing importance – and vulnerability – of sea freight.
I had failed to appreciate what a huge role shipping has been playing in keeping the world more or less functioning. It is sometimes overlooked that the great majority of the
There are great lessons here for all of us on the need for collaboration, strategic thinking, and the astute use of government and other funding.”
world’s trade by volume is still carried by ships – around 80 percent according to one online estimate.
But as noted in a recent report from CNN, the seafarers who crew the world’s cargo ships are in increasingly urgent need of relief.
Many crew members are suffering from isolation after weeks and months at sea awaiting repatriation.
Now – just as many econ-
David Porter
omies are tentatively beginning to reopen – an estimated 200,000 seafarers stranded for months by port closures and the collapse in long-haul aviation could refuse to keep working, according to CNN. Many seafarers had agreed to extend their contracts at the pandemic’s outset to help keep needed supplies moving
But with many airlines grounded and access to ports restricted and often subject to strict quarantine regulations, it has apparently become increasingly difficult to move seafarers from one part of the world to another and swap out crews.
The continuous months at sea are creating fatigue and mental problems with the International Transport Workers’ Federation recently noting that the emergency extensions to contracts have expired. According to the Federation, many governments have ignored the problem and have failed to take action to classify the crews as key workers and exempt them from restrictions. The federation is now saying it will do everything it can to help crew exercise their legal rights to stop working and return home. And that, says CNN, could cause slumping global trade to potentially grind to a halt. Watch this space.
Eastern Bay is bullish
From page 3
by Whakatane District Council. Wardale described the project as a “transformational partnership” between the Te Rāhui Lands Trust, the Crown, Ngāti Awa Group Holdings Limited, and the Whakatāne District Council.
The new Boat Harbour will provide for 800 new jobs, and retain 218 existing jobs in Whakatāne’s marine and tourism industries, said Wardale.
Around 30 to 35 people will be involved in its construction on a full-time basis, many of them Ngāti Awa people who will be reskilled or upskilled via training providers to support the project’s contractors.
Berthage in Whakatāne is currently restricted by the capacity of the town wharf.
Wardale said the new facility – which is being built just downstream from the main bridge which crosses the Edgecumbe River – would provide safe and reslient ber-
thage for around 60 vessels, from 14-30m in size, along with the large mussel barges that work in the region. (See graphic rendering above.)
Most vessels are expected to be working boats, whether for commercial charter or fishing.
It will also offer a travel lift, providing a new option for vessels to be hauled out and undergo maintenance on New Zealand’s east coast.
Wardale said current planning was for the lift to be in the 80 to 100 tonne lift capacity, depending on procurement options.
The region is already known as centre of excellence when it comes to building aluminium boats, with both Xtreme Boats and Surtees Boats based in the area, and there will also be a marine training school onsite.
Wardale said that to help support New Zealand’s recovery, all or most product used in construction will be made in New Zealand – from within
Whakatane or its neighbouring regions where possible.
Environmental improvements
The new Boat Harbour is expected to have an immediate improvement on local water quality, said Wardale, who was heavily involved in ensuring that the new Tauranga Marine Precint upgaded its processing and environmental controls to help future proof that facility.
In Whakatane, firstly, the riverside berths will be removed, which was expected to improve and restore river flow.
Vessels relocated to the boat harbour will also have access to in-berth sewage disposal –almost eliminating the need to dump at sea.
Stormwater treatment will improve discharges from both run off, and boat maintenance activities, and planted sea walls will assist a natural ecological balance as well as water filtration.
A sub-project associated with the Boat Harbour is the removal of contaminated land adjacent to the site, following historic dumping of wood waste. During construction,
earth works will be re-used.
“It’s a very exciting project,” said Wardale. “We’re really now focused in bringing everything together.”
Karl Gradon, GM Strategy
[The Boat Harbour] is a very exciting project. We’re really now focused in bringing everything together.” – Phil Wardale
for TOI EDA, the Eastern Bay of Plenty economic development agency, told the Bay of Plenty Business News that despite the recent challenges to the local and national economy, the Eastern Bay had good reason to see a bright future.
“It was designated a surge region by the Provincial Growth Fund (PGF) two years ago and has attracted significant investments,” he said in
Continued on page 6
Whakatane Boat Harbour project being created through a“transformational partnership”:Graphic rendering/Supplied.
Phil Wardale
Karl Gradon says the region originally identified that the biggest job growth opportunities would only be realised by working collaboratively across Maori businesses and Trusts, local government and private investors.
Eastern Bay is bullish
From page 5
comments to our sister publication the Bay of Plenty News Year Book 2020.
“With strong primary industry sectors, such as forestry, kiwifruit and dairy, the EBOP is poised to potentially slingshot out of the post-Covid-19 world with good momentum ahead of the rest of New Zealand. “
The initial 2017 Eastern Bay strategic development plan identified four key catalytic areas of focus to push for PGF support so that the outcome would be meaningful jobs for the local population.
with a new processing plant and harbour; and supporting the marine sector with the new commercial boat harbour in Whakatane, had all been successful in securing more than $200 million in PGF funding in recent months. And much of this came with matched funding from private and local government investment, said Gradon.
Working collaboratively with Maori
The region originally identified that the biggest job growth opportunities would be only realised by working collabora-
There is real hope in the region and a sense of positivity and can-do attitude is coming to the fore to make the most of these opportunities.” –
The Eastern Bay had been taking a long term and highly focused approach to growth, he said.
High Value Horticulture projects, such as irrigation for kiwifruit and the planting of blueberries; an “inland port” rail terminal built alongside the existing powerhouse manufacturing hub in Kawerau; supporting the high growth aquaculture industry in Opotiki
Karl Gradon
tively across Māori businesses and Trusts, local government and private investors, said Gradon.
“Some of the most successful local companies are Māori -owned and in a region with 48 percent of the population being Māori this bodes well for future economic leadership,” he said.
“This collaborative approach has delivered signifi-
cant outcomes for the region, with the confirmed PGF funds more than double the original targets.
“With a regional GDP of $1.9 billion, this scale of capital investment is a major economic outcome for a region that for many years lagged behind the rest of New Zealand’s growth rates.
“The key to this investment is making sure that the activities result in meaningful and sustainable job creation. The future is bright.”
Gradon said the region was surging ahead and had every right to be proud of the hard work put in over the past two years to now be in a position to create a generational difference.
“There is real hope in the region and a sense of positivity and can-do attitude is coming to the fore to make the most of these opportunities.”
Asked the key to the progress the Eastern Bay was making, Steph O’Sullivan said the region had been very clear in its conversations with government about where it was headed.
“We needed we put up strong projects and we have delivered on everything we promised. It’s about execution and building trusted relationships – it’s not the talk, it’s the delivery.
“I think we’ve continued to deliver for central government and that’s a really important part of the equation.”
Te ManukaTuTahi Marae Complex. Photo/Supplied.
Karl Gradon
Log rules not welcome
Forestry minister Shane Jones’ desire to regulate log exporters and forestry advisors has the industry wary about the risk of greater intervention in the valuable log export market.
By RICHARD RENNIE
Jones is proposing greater regulation around the exporting and supply of logs to ensure the domestic processing sector does not miss out, due to greater quantities of felled logs heading offshore to the more lucrative Chinese market.
It has been a long-standing mission of Jones to boost the employment numbers involved in forestry processing in New Zealand, rather than have timber exported as unprocessed logs offshore. The proposal includes a log registration scheme and practice standards, and was introduced within the budget 2020 legislation.
Log exports from New Zealand account for 60 percent of the sector’s total processed timber, with about 80 percent heading to China. In 2019 log exports were valued at $2.54 billion.
But the Forest Owners Association is concerned the move may put the industry on a slippery slope towards greater intervention, including a move to price controls and limits to harvest volumes and competition.
Bureaucratic intervention concerns
Phil Taylor, Forest Owners Association president says the industry is now anticipating an unacceptable and pointless bureaucratic cost to all parts of the sector, only now recovering from the impact of last year’s log price slump and then the sharp impact of Covid-19 on export markets earlier this year.
Committee.
Late in April Jones reassured the industry he had no intention to introduce a quota that limited log exports, but made clear he had “log mongers” firmly in his sights.
Log trading entities would be required to pass a “fit and proper person” test, and meet record keeping standards.
But some local processors are ambivalent about the need for a log exporting registration.
Sitting behind all this is a fear by forestry owners there could be some sort of quota or legislation or restriction on exports.” – Prue Younger
He says it is difficult to see how certifying an individual who buys and sells logs is going to lead to more logs being processed here in New Zealand.
Taylor predicted an “avalanche of clipboards” to accompany the decision, which has still to be finalised through the Environment Select
Marty Verry, CEO of Red Stag Timber said as long as processors here had a steady and reasonable supply of timber he advised exporters to “fill their boots” with the opportunity to export.
He said he felt the supply to his mill in Rotorua had not been compromised by competition for log exports, but ac-
knowledged there were some players who may seize the “one in a 25 year opportunity” to make more for their logs by export.
But the NZ Forestry Industry Contractors Association largely supported the move to qualify log exporters and advisors.
Greater professionalism welcomed
Chief executive Prue Younger said a greater level of professionalism in the sector could be a good thing.
“Sitting behind all this is a fear by forestry owners there could be some sort of quota or legislation or restriction on exports,” she said.
However, her members were also aware the bulk log export market was their bread and butter, and did not want to be supporting domestic processing businesses that were not being run well.
“But some are, like Red Stag and we know those members with a good domestic processor to supply were not hit as hard by the downturn as those in other areas supplying export markets.”
Like Phil Taylor she supported a clear, strong “wood first” policy from the government that required a high content of New Zealand timber in any government commissioned building projects.
Such a policy was promised in the last election, and industry sources say it appeared to have stalled in recent months.
“That is how to build demand for timber. You can’t make processors buy more logs without someone to sell their processed timber to. Someone with a clip-board register isn’t going to work,” said Taylor.
NZ Forestry Industry Contractors Association CEO PrueYounger
Zespri ends year on golden note
Zespri’s 2019-20 financial results have put the industry on a strong footing as it commenced its new season harvest amid the pressures of Covid-19 constraints and volatile market conditions.
By RICHARD RENNIE
The kiwifruit marketer announced its 2019-20 results in mid-June, with a record-breaking $3.36 billion turnover, including total fruit sales revenue of $3.14 billion. The results had the marketer returning almost $2 billion back to growers in payments, up eight percent on the year before.
Zespri chief executive Dan Mathieson said the results had proved encouraging and represented continuing strong growth in key markets of Japan, greater China and Europe.
Mathieson described 201920 as something of a milestone year that included the commercialising of Zespri Red kiwifruit, opening the new head office at Mount Maunganui, a brand re-launch and a focus on sustainability targets for coming years.
The industry had faced a major challenge heading into its new harvest season on the eve of the Covid-19 lockdown, forcing packhouses to close, re-configure and re-open with social distancing provisions in place.
Production good despite restrictions
Despite the restrictions almost all packhouse facilities had got back to 90-100 percent productivity on shifts, although some shifts had been compromised by a lack of staff to meet shift needs.
Mathieson praised the industry response to Covid-19.
“The coming season is one of our best-ever tasting crops and largest by volume, albeit with smaller Green due to the dry weather.
Demand around the world is significant, driven by investment in sales and marketing and by demand for safe healthy foods which are high in vitamin C.”
The total volume of trays processed in the past year also represented a record, with 164.4 million New Zealand and non-New Zealand trays sold, delivering a net profit after tax of $200.8 million. Dividend return for this profit is expected to be 94c a share.
Average Green returns were $6.67 a tray, putting average per ha return at a record high of $67,295, while SunGold averaged $11.86 a tray, with an average per ha return of $161.660.
Taste-testing lost in lockdown
An early stumble in the wake of the Covid-19 lockdown was the loss of the taste profile testing capabilities from company Eurofins NZ.
The company had determined it was unable to meet the lockdown protocols and abandoned its testing contract with packhouses, leaving the industry without the taste pro-
The coming season is one of our bestever tasting crops and largest by volume, albeit with smaller Green due to the dry weather. Demand around the world is significant, driven by investment in sales and marketing and by demand for safe healthy foods which are high in vitamin C.” – Dan Mathieson
file test for the harvest season, which helps establish the final pricing they get from Zespri.
Sugar levels (brix) were used as a proxy indicator for fruit taste profile this season in place of the more specific taste test. But Dave Courtney, Zespri grower and alliances officer said the industry’s aim is to re-commence the taste test next season.
“There has been no compromise this year. Quality and taste have been good thanks to a dry season. We are having a conversation now about how we will set things up for the new season.”
Courtney said most growers have been accepting of the loss of the taste premium this year, but the industry was keen to reinstate it, given its priority as a parameter for consumer acceptance.
Record bump for latest Gold tender
Meantime the tender round for the latest tranche of SunGold kiwifruit has just closed off, with a record average of $400,000 a hectare plus GST on the licence cost.
The jump of 37 percent in value on last year’s offering reflected strong continuing de-
tal well ahead of other fruit licences, with the next closest being $100,000 per ha for Envy apples.
Courtney said Zespri has made no secret of the chal-
mand by growers for rights to grow the high value crop, with the offering oversubscribed by 900ha.
The tender included several large 20-plus ha bidders for the first time, reflecting the demand from larger scale investors on green-field or Green converted orchards prepared to pay above odds for access to the crop.
The average bid size reflects a continuing trend for orchards to increase in size, with this year’s average area of 2.4 ha up from 2.2 last year.
This year’s round also marked the first tender for the newly commercialised Zespri Red crop, with 150 ha allocated.
This was also over-subscribed, with 198 bids for 260 ha put forward. The licences averaged $62,500 per ha.
Courtney said the licence values reflect a level of on-going optimism by growers in the fruits’ future.
“We run a closed tender process and put out as much information as we can including a five- year outlook for people to make their own decision on wheat they value the licences at,” he said.
The value for SunGold licences puts it on a pedes-
lenges in growing Red, including a shorter shelf life, smaller fruit size and lower yields. However he was optimistic that in the hands of skilled growers these challenges could
be overcome.
“The taste is good and demand is strong. On a per tray basis we believe it could be equal to SunGold, or a bit above that.”
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Bell-Booth afa Paul O’Driscoll afa David McConnochie afa
Dan Mathieson
Armageddon is back:gaming,comics, collectibles and more. Photo/Supplied.
Trustpower Baypark is back in business
Trustpower Baypark is open and is gearing up for an exciting line-up of events.
Armageddon
Armageddon strikes again on 25 and 26 July, but in a good way. Don’t miss the return of the entertainment expo to the Bay of Plenty with gaming, comics, collectibles, anime, wargaming, pop culture and more.
The event will feature an array of international celebrity guests attending virtually on the event main stage, including stars from the Hit movie Aladdin, and TV Series Once Upon A Time, Lucifer, The Flash, Doctor Who and more. Tickets will be on sale from 1 July on www.iticket.co.nz.
Devilskin
With the lifting of crowd and venue restrictions, and due to massive demand, Devilskin will hit the road this August on a New Zealand-wide tour to support their chart-topping new album RED.
The response to the album release has been incredible right around the globe, with rave album reviews and fast additions to radio airplay at home and across the UK, Europe, Australia and the USA, Devilskin are amped to do what they do best – play live and will be in Tauranga on 15 August.
Stormwater NZ Conference
The Annual StormwaterNZ
Conference is being held from 26-28 August right here in Tauranga.
Held over three days, the conference will showcase the latest developments in Stormwater management. There will be two full days of paper presentations covering four parallel sessions.
The conference will also see the return of the innovation showcase where the latest in bright ideas are presented. The conference will showcase a number of success stories by way of case studies, and will conclude on the Friday morning with three separate site visits.
Bindspott is coming back
Just a week into the much anticipated 2020 Blindspott tour, it was stopped short as NZ went into lockdown. Now they’re back with a vengeance and frantic to get out there for their loyal fans, who’ve been nothing short of amazing.
The boys will be revisiting the album that touched so many kiwi’s lives and instantly made it a classic. Presented by The Rock, this massive tour will be at Baypark on 29 August.
2020 Seriously Good Food Show
Sick of the same old stuff from the supermarket? Celebrate your love of all things gourmet
Devilskin:Supporting new album. Photo/Supplied.
with food and beverage vendors, craft beer, New Zealand wine and liquor, food trucks, and cooking demonstrations at the 2020 Seriously Good Food Show on 5 and 6 September.
With more than 150 exhibitors from around New Zealand, you’re sure to find something new and delicious, grab some great deals and expand your culinary horizon.
Enjoy food and wine samples, exclusive show discounts and new product launches.
Baypark a complete package
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. Meet at Baypark for your next event.
Virtually there
“Bring your events online” with our Virtual Meetings. The range of onsite and offsite services include: Remote Presentation, Video Conferencing, Web Streaming and Streamed Hybrid Conferences.
The Virtual Meeting services also includes purpose built studios to broadcast standard offering competitive packages to enable you to continue to stay connected to your
audience. Ask about our competitive packages today. Under Alert Level 1, we are no longer required to contact trace visitors and maintain physical distancing. However, the Governments’ NZ COVID Tracer QR code poster is available for customers to scan.
Trustpower Baypark will continue to encourage best hygiene practices with commercial cleaning and sanitising of high-touch areas throughout the day by staff and users
2020 SUPPORT NETWORK COMMUNITY BUSINESS
outstanding community groups
The impact of Covid-19 has been felt by people, businesses and communities around New Zealand, including the many businesses and organisations who call the Bay of Plenty home.
We’re really proud to be based in this vibrant region, where around 80 percent of New Zealand’s kiwifruit is grown.
Alongside our growers and the wider kiwifruit industry, the Bay is made up of thousands of businesses who take pride in the high-quality goods and services they share, and who are contributing to the overall success of one of New Zealand’s fastest-growing regions.
Our region has grown together, and our joint sense of community, passion for our beautiful environment and commitment to looking out for one another is shared by Zespri and our industry.
It’s evident in the way the region pulled together to ensure that essential services like ours were able to safely operate this season – an effort that reflects the strengths of our collaborative industry approach and the support we continue to receive within the region.
The Bay is also home to a number of incredible local organisations who care for so many of our residents who need assistance. Their dedication to helping others is inspiring, and they are a major contributor to our region’s success and sense of community.
As a proud resident of the Bay, Zespri is delighted to partner with outstanding local community groups like Surf Live Saving New Zealand, the Ōtanewainuku
Kiwi Trust, Good Neighbour, and Youth Search and Rescue, who all do incredible work in our wider community.
And it’s in challenging times like those we face today with the ongoing threat and disruption from Covid-19, that we’re reminded of how important it is to continue to be there for one another.
That’s why we’ve increased the support we’re offering community groups
this year, reflecting our purpose of helping people, communities and the environment thrive through the goodness of kiwifruit.
The industry will provide increased financial support and donate 100 tonnes of nutritious kiwifruit to food rescue and charity organisations across New Zealand and throughout our growing regions this season.
It’s one way we can say thanks for the continued support of our industry and an acknowledgement that as we grow, so too must the contribution we make to our communities.
So, on behalf of Zespri, thank you to all of the local and national charities who continue to support New Zealanders in need, and who are providing many families with quality fresh and healthy food. We’re proud to be working with you, and look forward to making even greater contributions in the years ahead as our industry continues to grow.
Join community, industry and education in the BOP to unlock the door to a new facility that will enrich a community and help young people grow their horticultural passion with purpose. www.katikatiihp.com www.facebook.com/kihproject
HELP US GROW: www.givealittle.co.nz/cause/ innovative-horticulture-is-the-future
A big part of what we do at Kale Print is giving back to our community.
Recent events have seen many of our small local businesses struggling to navigate unchartered waters and we want to help. So we came up with this fantastic idea to offer one lucky local Bay of Plenty business the opportunity to win a brand refresh to kickstart their business in 2020.
WIN A BRAND REFRESH – ARE YOU LOOKING TO REJUVENATE YOUR BUSINESS?
Now is the time to take a look at your business and ensure it is sending the right message to your target market. Our team of helpful professionals can review and develop a new
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Valued at $1000, our small business brand refresh includes:
• A 1 hour consultation with our inhouse brand expert Development and refinement of your new logo
• Your new logo supplied in electronic formats for your use
• New print collateral concepts for business cards and letterhead
To qualify for the draw, contact Tessa at tessar@kaleprint.co.nz mention this advert, and send us a message telling us about your small local business.
The winner will be announced 15th July, 2020.
Proud to support local Bay of Plenty businesses
Doing good, yesterday, today and tomorrow!
Good Neighbour Charitable Trust is a Tauranga Charity that provides practical opportunities for people to support one another, so that lives and neighbourhoods are transformed. There are six unique arms to the charity:
Food Rescue
• Neighbourhood Projects
• Community Gardens Kitchen
• Firewood
• Care Team
Whanau Relational Team
LOCKDOWN DURING COVID-19
Good Neighbour collected food from 12 supermarkets that is good enough to eat, but not good enough to sell, while they had to scale volunteer numbers down they were still able
to support the community with over 21,000 meals made in the Kitchen all from rescued food! They also collected 87 tons of rescued food and redistributed it to over 10 local charities for better use. Currently they are processing about 2 tons a day and are now serving over 50 charities with this rescued food. They are projecting over 450 tons to be saved this year alone, which means the food is directly diverted from waste and landfill.
The projects team were able to deliver firewood to over 84 families to keep them warm and dry over the winter period too.
As part of the Rapid Response during the pandemic run by the TCC and Civil Defence Good Neighbour were also able to respond to community
needs as an Essential Service and were able to distribute 11 Tons of food parcels to people in need over and above their normal day to day operations.
THE FUTURE OF GOOD NEIGHBOUR
As they go from strength to strength with over 500 volunteers and 12 staff . They are going to be in a great position to be able to keep responding to the communities needs and react as needs arise as the modern face of charity. There are always opportunities for people to connect in an environment where their gifts and talents are utilised, and they can have a sense of belonging in a time where they may have found themselves unemployed and having never needing social services before.
If your looking for some inspiration for your staff, Good Neighbour will happily come and do a presentation about all the amazing things they do. Contact Angela@goodneighbour. co.nz for a booking or more information.
Check out our website on www.goodneighbour.co.nz or join us on FB Good Neighbour
BUSINESS
2020 SUPPORT NETWORK COMMUNITY
First Aid business PracMed NZ –a COVID recovery success story
NEED COACHING?
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In some cases your business maybe able to access some FREE Business Coaching. Book a free 30min session today to find out how. Phil Holland 027 669 5354 phil@loveyourbusiness.co.nz
Book a FREE 30 min session @ www.sessionwithphil.co.nz
PracMed NZ is a Tauranga based business providing realistic First Aid training to the public and businesses. PracMed was growing strongly until Covid-19 hit. Suddenly, they had no income, no leads coming in and had to refund courses – it was grim.
They, like many other business owners had no idea how or where to start to keep things rolling during the lockdown period. It could have been a gameender for the PracMed NZ team.
Luckily, they received a Covid Business Support grant via the Regional Business Partners Scheme and partnered with Phil Holland from Love Your Business.
This resulted in PracMed coming out of the lockdown in a far stronger position. Co-owner, Steph Davies said the company had bounced back, with many of its processes and structures far ahead of where they had planned.
“Rather than focusing on the big, impossible tasks, Phil has kept our attention on low hanging fruit, which
lead to those big tasks, and as such we’ve achieved a remarkable amount in a short amount of time,” says Davies.
Since the lockdown ended, the PracMed team has rescheduled their courses and sold out 3 of 8 courses.
They have created several other partnerships and lead generation tools and are working on some big initiatives that have come from the Business Coaching during the lockdown period.
Due to this, they have engaged another two trainers to cope with the growing demand and are feeling extremely confident about the future growth of the PracMed team.
For more info visit www.pracmednz.com
PracMed NZ’s trainers demonstrating practical haemorrhage control techniques.
The accountant’s role in buying a business
We are all aware our economy is being buffeted by Covid 19. But it does not mean that business sales have dried up – far from it. What it does mean is that it is now more important than ever for good homework (ie, “due diligence”) to be done on a potential business purchase.
Due diligence is the process involving all the tyre kicking and horse teeth checking necessary to ensure you are not sold a lemon. A weaker economic environment can mean there are more lemons out there – so care is needed.
Typically, a prospective business buyer will approach an accountant as someone has told them that they need to do “due diligence”.
It makes me think of Oliver Twist, you know “please sir, may I have some more” scene, in that clients are coming to the accountant in fear and supplication.
It is not like if you order a McChicken burger, but you get a Big Mac – then you know that something has gone awry and you can fix it.
For many people this is their first (likely to be their only) experience with “due
diligence” so they often do not know what is involved and the questions they should be asking.
Not just a checklist
Now many accountants will have a checklist that tells them what to do when approached to complete due diligence on a business. A checklist can help avoid risks and of course this is important.
But consider two scenarios regarding a recent building inspection: 1. The report confirms a po-
tential purchase is not a leaky home at the date of the report, or, 2. The report confirms that the house is not a leaker – but also advises that the house is designed in a fashion that is likely to leak, and that you should watch out for certain tell tales in specific parts of the building.
Of course, scenario two is the more valuable advice. It is the same with buying a business.
A typical due diligence process helps the clients avoid “gotcha” scenarios. i.e. seem-
Buyers need help understanding the true opportunities and risks of the business and the wider industry.”
Pandemic infects global economy
Investment market update (for the quarter ended 31 May, 2020)
Covid-19 has undoubtedly been the most dramatic black swan or unexpected shock since the 9/11 terrorist attack. The threat has rapidly shifted from an outbreak in China, where the principal economic concern was the impact of Chinese manufacturer shutdowns on the rest of the world, to a global pandemic.
Governments around the world responded. Many countries shut all but non-essential businesses. The economic and financial landscape has seen a dramatic shift. Interest rates have plunged. Policies to protect jobs and businesses have been enacted, but they haven’t prevented sizeable layoffs.
The outlook for corporate earnings remains highly uncertain. Many companies have suspended earnings guidance, with little clarity over the medium-term.
Despite the challenging backdrop, markets have bounced strongly.
Since the 23 March trough, the MSCI World Index is up +37 percent helped by the aggressive responses from policymakers around the world, and more recently, a slow but steady easing of lockdown restrictions and opening up of economies.
Policymakers have acted From late March onward, assertive responses by central banks and governments around the world shored-up financial markets.
Central banks have cut interest rates, provided liquidity to the banking system so banks can continue to lend to businesses, and have started or continued buying bonds to help stabilise credit markets. Governments have provided a range of support measures including wage subsidies to workers forced to stay at home, loans for banks to encourage financial support for businesses, mortgage holidays, and some tax relief. Looking forward, a number of governments are already planning to accelerate and expand investment in infrastructure as a key policy platform to help the economic recovery.
BETTER BUSINESS BUYING
> BY TOM BESWICK
Director at Ingham Mora Chartered Accountants in Tauranga, is a business advisor who specialises in buying and selling businesses. He can be contacted on 027-5744- 019 or tom@inghammora.co.nz
ingly obvious things that clients would be grumpy about if the issue were not highlighted. i.e. the business has no contracts with customers, the stock is all dated, all the key knowledge is in the heads of the exiting owners etc.
Of course, these kinds of things should always be checked.
But for many prospective buyers there are few things that are in a typical accountant’s due diligence checklist that will really help the client decide whether they should proceed with the purchase.
Look at all the information available
I believe the main role of an accountant is to help a client analyse all the information available so they can decide if they should go ahead with the purchase.
Buyers need help understanding the true opportunities and risks of the business and the wider industry, help to be aware of their own biases (rose tinted glasses etc) and help understanding the impact on the business if things do not go 100 percent
to plan (spoiler – nothing ever does).
I think if we accountants spent a little less time filling out checklists, and a little bit more time helping clients thoroughly understand what they are taking on, then clients are likely to be less stressed and succeed more often. If you know someone who is considering buying a business in the coming weeks and months, make sure they get proper advice. It is always easier to avoid a hole in the ground then it is to climb out of it.
WHAT TO DO WITH YOUR MONEY
Adviser with Forsyth Barr Limited in Tauranga, and an Authorised Financial Adviser. Phone (07) 577 5725 or email brett.bell-booth@forsythbarr.co.nz.
An early bounce in economic activity
Economies are tentatively emerging from lockdowns. As China reopened much of its economy and its factories reopened, demand for Australian coal and iron ore has surged. The oil price which dropped to less than US$20/barrel in April, has bounced back to $US35. The price of copper, which has widespread use in industrial manufacturing, has jumped more than 20 percent since late March. Financials or bank stocks rebounded late in May, along with smaller company stocks, which is typically a sign that investors are gaining greater confidence in the economic outlook.
Alphabet soup
A word that has been used a lot recently is “unprecedented”. These are unprec-
edented times. There hasn’t been a global pandemic since the 1918 Spanish Flu, and the world is a very different place today than it was back then.
While equity markets have displayed more optimism in recent months, there remains a tremendous amount of uncertainty as to how economies and companies will fare.
Will there be a second wave of the virus? What damage has been done to economies while in lockdown? How many jobs have and will be lost? How many businesses will fail? Will a vaccine or medical treatment be found, and if so, when? Will US-China tensions simmer, or escalate into a new Cold War?
Forecasters are grappling with the very broad range of possible outcomes over the next few years.
What will a recovery look like? V, U, W, L? A rapid recovery is described as ‘V’
shaped – a sharp downturn followed by an equally sharp upturn. A ‘U’ is a longer period at the bottom before activity picks up gradually.
The most pessimistic are ‘W’, a double dip or an initial recovery that doesn’t prove sustainable, or ‘L’ where economic activity falls sharply and remains low for an extended period.
More volatility potentially ahead – be prepared
There is no doubt that actions from governments and central banks have stabilised financial markets. We think that market lows are most likely behind us. But there is still plenty of uncertainty, and as we’ve seen over the past few months, sentiment can change quickly. There is potential for further market volatility ahead. The past few months do
reaffirm some important messages for investors. We don’t believe it’s possible to consistently time or predict shortterm movements in markets. Markets oscillate between greed and fear. And they do not need a positive economic backdrop to bounce – markets expect a “less bad” outlook today than they did in March. The low returns on offer from cash and bonds will continue to encourage investors into equities.
We all prefer positive news over negative. Investors generally feel better when markets go up, and it can be disconcerting when they go down. But unfortunately volatility is something investors will always have to bear.
The key is managing your response to it. Working with your Forsyth Barr Investment Adviser to formulate and stick to an investment plan with clear objectives, is one of the best ways to do so.
This column is general in nature and is not personalised investment advice. This column has been prepared in good faith based on information obtained from sources believed to be reliable and accurate. Disclosure Statements for Forsyth Barr Authorised Financial Advisers are available on request and free of charge.
Do the due (diligence, that is)
It is a sad fact that the victims of Covid-19 are not just those who contracted the virus. The victims also include – as has been widely publicised – many businesses. From small, home-based businesses to large, international corporates, no-one has escaped unscathed.
As has been often cited in recent weeks, out of adversity comes opportunity. Thus, businesses which have suffered at the hands of Covid-19 may present attractive opportunities to investors, asset hunters or people made redundant looking to resurrect what, in better times, were thriving businesses.
Whichever category interested parties might fall into, the one thing they all must do – and do thoroughly – is comprehensive due diligence on the intended target. No metaphorical stone should be left unturned, everything should be checked.
This is one of the takehomes from a recent decision of the High Court of New Zealand concerning a dispute between Bradfields Limited and its directors, the Sullivans, (all together, “Bradfields”) on the one side, and Brookwater Investments Limited (formerly called Bradfield Marketing Limited) and its director, Paul Bradfield, on the other.
Also identified as a defendant was Christchurch-based
law firm, Malley & Co, which had advised Bradfields in the sale process.
The background to this case, in brief, is this: in September 2014, Bradfields purchased a business from Brookwater (then called Bradfield Marketing) which involved the manufacture and sale of natural pet care and air freshener products in New Zealand and Australia.
About 18 months after the
Whichever category interested parties might fall into, the one thing they all must do – and do thoroughly – is comprehensive due diligence on the intended target.”
sale was completed, Bradfields was told by regulators in Australia that most of its pet care products were required to be registered before they could be legally sold in Australia.
At around the same time, Bradfields was similarly told by regulators in New Zealand that some of its pet care products needed to be registered before they could be legally sold in New Zealand.
Having taken advice on the issue, Bradfields stopped selling all of its pet care products in Australia and most of its pet care products in New Zealand. Bradfields took Brookwater to court to try to claim for their losses.
In the High Court, Bradfields and its directors brought five claims against Brookwater and/or Mr Bradfield, including breach of terms of the Purchase Agreement, misrepresentation and breach of the Fair Trading Act 1986. Bradfields also claimed negligence against Malley & Co.
Central to the whole proceeding was Bradfields’ claim
INTELLECTUAL PROPERTY ISSUES
> BY BEN CAIN
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.
contract for the sale and purchase of the business, and that it was represented to them throughout the sale process, that the pet care products were being sold legally in Australia and New Zealand and did not require registration under applicable regulations in those countries.
Further, it relied on those representations in agreeing to purchase the business.
Crucial components of the due diligence process
Standing back, it is clear that the registration status of the pet care products was crucial to the success of the business and therefore was a crucial component of the due diligence phase.
Independent enquiries were
required to verify the accuracy of the representations made to Bradfields. No such enquiries were seemingly made, however, either by Bradfields or its solicitors.
For this oversight, the court was content to lay the blame at Bradfields’ solicitors’ feet, finding them liable for negligence through failing to advise Bradfields adequately.
With all due respect to the court, I think this is harsh: in my view, once the issue of regulatory compliance had been raised, it was incumbent on both Bradfields and their solicitors to ensure due diligence was properly undertaken.
Bradfields, then, should have shouldered some of the blame for failing to clearly define with its solicitors who was doing what in the due diligence phase.
To re-state the take-home: if you or someone you know is considering purchasing a business or a business’s assets, make sure you do your due diligence thoroughly. Draw up a list of every conceivable issue, and do not tick it off until you are 100 percent confident it has been dealt with.
The list should include identifying and verifying ownership of all intellectual property assets, such as registered and unregistered trade marks, domain names, trade secrets/ confidential information, copyright and patents, as well as any regulatory matters. Further, when seeking advice from a lawyer, including an IP lawyer if necessary, be sure to allocate responsibility for ticking off the items on the list.
TECT elections for three trustees coming up
The elections for TECT – one of the country’s leading charities with almost $1 billion in assets – have come around again. And there is strong interest from candidates for the three positions available on the Trust, according to Independent Returning Officer, Warwick Lampp.
TECT is governed by six trustees, three of whom retire by rotation this year.
Current trustee Amanda Sutcliffe has chosen not to stand, but Bill Holland and Natalie Bridges are re-standing.
Nominations were sought from eligible TECT beneficiaries for the election of three trustees to hold office for the next four years.
Nominations closed on 29 May, with 13 candidates nominated for the positions available. This compares to 19 in 2018, 11 candidates in 2016, and 19 candidates in 2014.
The election will be conducted by postal and internet voting using the First Past the
Post election method.
Voting papers, together with information about the candidates will be sent to eligible TECT beneficiaries from Monday, 22 June 2020.
Each eligible beneficiary is entitled to one vote irrespective of how many power connections they may have. Candidate names will be listed in alphabetical order on the voting documents.
The confirmed candidates for the 2020 election are:
WHITE Peter • WILSON Tommy Kapai
For more information on the Trust or election, please contact:
• Wayne Werder, TECT General Manager – wayne@ tect.org.nz
Moving from the big cities to the Bay of Plenty remains a hot topic of discussion, and as an ex-Aucklander myself, one I have had many a time.
It was once a trend associated with retirees, trading or winding down from their city property and lives, but is now increasingly involving younger individuals and families that are making or looking to make the exodus.
The questions remain, what’s driving the desire, what are the benefits – and the biggest one – what do they do when they move?
Lifestyle attractions
What do regions such as the Bay or Plenty offer over the big cities? More attractive property prices. While Tauranga has seen significant increase in property prices in recent years, the levels are still nowhere near the Auckland property market and on
a dollar for dollar basis, your money still goes a lot further. Less commuting. Along with the lower property pricing comes the reduction in commute times. A desire to avoid the commute is often cited by Aucklanders as the primary driver for looking to leave the City of Sails.
Add to these perhaps the most emotive and greatest driver, the elusive “work life balance”. Just the thought that you could go for a walk on the beach or a surf after work in itself makes the day a bit brighter.
Combined with easy access to the central North Island, an increased disposable income from not paying an Auckland mortgage, and the scales are tipping towards the “life” on the scales.
However, the employment opportunities available in the big cities may not be available in the regions, which leads many to their own business, often in franchising. And this is where the work life equation gets very interesting, with many franchise systems having some of their highest performing units and franchisees in the regions.
Better business fundamentals
Statistically, regional businesses have a 30 percent higher chance of being successful than big city businesses. And statistically franchises have a higher success rate than independent business units. That makes it seem like a lot of sense to start or purchase
a regional franchise.
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
The factors that bolster franchised businesses’ performance in the regions include lower rentals and lower wage costs, which are two of the largest costs for most businesses.
Lower operating costs are often matched by less competition due to the size of the market, making it easier to penetrate and stand out. A national or international franchise comes with the power of brand and marketing machine, adding further fuel to the mix.
It’s not just the individual
franchise units that do well in the regions, The Bay of Plenty is home to major national franchise brands in the building, home services and business to business sectors.
So who’s coming?
In recent years we could categorize a majority of our movers and new entrant franchisees as the lifestylers as discussed. This trend will only increase in a post Covid world where many have had their first taste of work life balance via work from home and are not eager to
go back to the daily commute or structured grind. There are two additional groups that I expect to start to look at the region as a desirable franchise business opportunity: returning expat Kiwis, looking to avoid the cities and the ex-corporate redundancies, looking for opportunities that match their skill sets. So, whether the motivation is a work life balance, securing a high-performing franchised business or escaping the corporate world, franchising in the Bay of Plenty looks a great option for many.
Ten insights on moving forward post-pandemic
STRATEGIES
> BY DERYCK SHAW
Deryck Shaw is Director of APR Consultants and a former Rotorua business person of the year. He can be reached on deryck.shaw@apr.co.nz
New Zealand is in a unique situation thanks to its globally distant location, cohesive culture, strong leadership and willingness to learn. None of us has a crystal ball to predict the future, so what are some of the learnings we need to consider to enable us, as a small country of diverse communities, to move forward with confidence?
One
Appreciating the importance of New Zealand’s integrated health, social and economic policy, planning and implementation.
This has been critical in taking a whole of population approach. It has enabled significant positive health outcomes, and mitigated losses and grief for our whānau/families, while acknowledging the tough times this has created for social and economic outcomes.
This aligned approach now needs to shift up a gear to enable businesses to respond to the new challenges, while continuing to be the engine-room of the economy. Gains for the economy need to be enabled at a micro level through the decisions, investments and activities of businesses.
Two
Ongoing learning and development at an individual, organisational and industry level has never been more important.
It has been very evident that the work of many professional bodies and industry organisations has enabled more considered and joined-up approaches to mitigating some of the impacts of the crisis.
Industries that have more engrained approaches are able to ensure that individuals and firms are able to respond smarter.
Three
There are some good news research snippets showing that New Zealanders during the lockdown have been eating more healthy food, that we are reading more and connecting through phone and online with friends and family. Conversely, we seem to be drinking more alcohol at home, although this may be a displacement from cafes and other establishments. This period has given us more time for reflection, enabling people to consider online career development, career changes and savings to provide more resilience.
Four
Online activity is now deeper, more entrenched and more pervasive for industry and sector groups and individual businesses.
The challenge for businesses is how to use this to enable stronger and more resilient business outcomes on a sustainable basis.
This can be through connecting more closely with customers, changing the way that staff work and ensuring the business can connect with multiple resources available online for the development of staff and the business.
Five
The markets for many businesses have changed fundamentally, for example in tourism, hospitality and to an extent retail.
Even for those businesses that might have a focus on domestic tourism, businesses are now endeavouring to understand what this will mean for their goods and services and
This crisis has shown us who the real rock stars in our communities are, from the doctors, nurses, emergency workers and police to the many council and community workers who keep the social, economic, cultural and environmental fabric of our country together. ‘He waka eke noa – A waka which we are all in’.”
what needs to change.
Some businesses will likely adopt a combination of approaches depending on their goods or services. Transformation is the next paradigm in how we need to work.
Six
The roles of business leaders, whether at a chief executive, director or manager level, have become more visible.
Leaders need to demonstrate the values of their business, particularly within those industries more impacted.
Therefore, it is critical for them to take the time to work closely with their teams to understand the state of the business, formulate plans and evaluate the range of scenarios and implications of these before they are implemented.
Plans need be considered in terms of what we need to do to sustain the business, employees and all customer-facing experiences from the business. This is not easy, as many of these decisions will have enduring implications for staff and customers.
Seven
The responses from different stakeholders and partners
through this process is critical. Government needs to provide as much certainty as it can, given the hardship that many businesses and staff are currently enduring. The effects of the Covid19 public health response are becoming clearer in terms of their differential impacts across industry sector groups.
This creates an opportunity to target these to provide the opportunity for these businesses to reset their product and service offers closer to potential market preferences.
Eight
We know as a nation that we are resourceful and innovative, and evidence shows that we have supported the clear leadership of our Prime Minister and health professionals.
While the mood of the nation is very positive, we need an evidential basis to continue to lock in the health gains on an ongoing basis.
Nine
The crisis has shown the importance of diversity or spread of business markets to ensure that companies are not overly dependent on specific markets.
On a similar principle of
diversity, we need to reflect the diverse Māori, Pacifica and other ethnic communities and how impacts of this crisis have not been equal in our populations.
Evidence shows that in times of crisis, extremes in wealth and wellbeing become more pronounced and we know that we have significant disparities in health outcomes already.
We need to ensure that these disparities do not become more pronounced.
Ten
We have shown our ability to work together and mobilise people, particularly our public agencies involved in health, education, police and civil defence.
We need to lock in these on a systemic basis so that the different elements of the sectors connect (eg, the availability of PPE has shown how critical supply chains are) and we put our people, whānau/families and communities at the centre of these.
This will likely mean greater alignment and direction between matters of national importance and those that can be resolved at a community level.
BEWARE OF FOREIGN IMITATIONS.
There’s no shortage of great ideas in New Zealand. But for an innovative bunch, we’re not the best at realising the full potential of our innovations, particularly when exporting them.
At James & Wells, we can identify your competitive edge, offer business strategies for specific markets and help you own and leverage your intellectual property to ensure no one steals the fruit of your labour.
Some people just won’t hear your advice, no matter what
One of the most frustrating things about being a professional business advisor is when you are paid to give expert advice to clients that you genuinely care about, only to watch them do the exact opposite and suffer the exact consequences that you warned them about.
Ihave been guilty of this myself. As a 120kg slightly younger man, I employed the services of a nutritionist and a personal trainer at a not inconsiderable expense to lose a bit of heft. Six months later as a slightly older 135kg man I disengaged from these services, heavier, poorer, less healthy and very disappointed.
I know top accountants who have clients that have been convicted of tax fraud, driving instructors that have visited the hospital beds of “at fault” crash victims, and quit smoking consultants that have attended the funerals of longterm clients after they died of lung cancer. So I know that I am not alone in my plight.
Sometimes the most respectful thing you can do is allow your clients to learn their lessons the only way that works for them.”
Some people don’t listen
In the past year I have had a couple of such experiences that have made me question whether my grasp of English is adequate or whether I should be more forceful with my advice, I have come to realise that no matter what is said or how it is said, some people just don’t listen.
GHD goes a further step in creating community benefit
Professional services company GHD is passionate about the Bay of Plenty region, and providing lasting benefit within communities it operates in.
By DAVID PORTER
GHD’s Tauranga office’s employee-owners say they are committed to supporting the region’s people and economy. That approach drove GHD’s reemergence in the Bay of Plenty region, when they reestablished a local office in 2017. Their local presence has since enabled a greater understanding of the community’s challenges and opportunities, which has created improved outcomes and meaningful relationships with local clients.
The move led to them debut Smart Seeds Tauranga in 2019, a design-led innovation programme. Senior industry mentors supported emerging
leaders to tackle The Bay of Plenty’s most pressing social, economic, and environmental challenges, through developing innovation, presentation, and teamwork skills.
The GHD-led programme brought together change-makers, innovators, and future-focused thinkers. Smart Seeds nurtures collective creativity and problem-solving. Staying true to its local ethos, GHD is now supporting the local economy and is among those companies fostering a sense of community by shopping local. Following on from the “Buy Local” campaign, GHD will add a number of additional office supplies to the list of products sourced from local suppliers.
For example, I met with a construction contractor who was quoting on a large job ($400,000+) for a nationwide construction company and asked me for my input.
After doing my due diligence on the company in question I came back with my findings.
I had discovered that the company was severely overdue with major suppliers, was experiencing a hemorrhaging of key staff and had received a statutory demand from an institutional lender, by my calculations the company had a more than 80 percent chance of experiencing a catastrophic insolvency event over the next 12 months.
I tabled my concerns and gave him my strongest recommendation not to proceed with the job without either a corpo-
CREDIT CONTROL
> BY NICK KERR
Nick can be reached at nick.kerr@eccreditcontrol.co.nz
rate guarantee from the solvent parent company of the entity or some kind of bank bond. I also informed him that his documentation was not at all suited for such a large job and that the subcontractor agreement that he was being asked to sign was very uneven form a leverage perspective.
After meeting with the entity and hearing about the amazing amount of work coming his way if he played his cards right, the contractor signed up to the job and ordered around $200,000 worth of engineered materials specifically for the job.
Fast forward eight months and I was called into the contractor’s office to read the liq-
uidator’s letter that he received after his staff turned up to a locked site guarded by security staff.
As an unsecured creditor, not only was the contractor at the very end of a very long list of creditors, he couldn’t even get the materials back that were uninstalled on site. And although he had received 2x $50,000 progress payments, he came away from the experience with a net loss of $150,000 including labour and no real prospect of recovering any of the owed funds. I came away from the meeting feeling like I had failed myself and the contractor. Surely there was something I could have said or done to make a difference? On reflection, I realised that the contractor saw me as a roadblock who wanted to stop him succeeding rather than a safety net wanting to protect him from pain, and no matter what I did or said he would have always taken the path that he did.
As a professional advisor if you advise clients honestly, find real and relevant data to support your recommendations and advise from a place of genuine concern for your clients’ wellbeing then you are doing all you can. Sometimes the most respectful thing you can do is allow your clients to learn their lessons the only way that works for them. Just a thought.
“Supporting our local economy is as important to us as individuals, as it is as a business. We’re committed to the Bay of Plenty, so are transitioning to as many local suppliers as possible,” said Ryan Orr, manager – Bay of Plenty.
It takes lots of energy to deliver innovative projects across local water, environment, property and buildings, and transport markets, and the team can expect a good brew from Ground Zero Coffee once
they return to the office.
“The quality of local products, and the service from the suppliers we’ve contacted has been outstanding, which has made buying local an easy decision,” says Ryan.
“We’ve had products personally delivered within hours of purchasing, which you just wouldn’t get sourcing things from elsewhere. There’s a real sense of community too. I enjoy supporting our neighbours, and knowing that what
we spend is going directly back into a local business.”
“Our vision was to create a hub for passionate locals to experience the full spectrum of coffee, in a positive and uplifting environment,” says Taylor, co-owner of Ground Zero Coffee.
“Our ability to directly engage with our local customers, and receive and act on feedback gives us huge satisfaction.”
GHD uses supplies and ser-
vices from a variety of other local businesses, including weekly deliveries of milk and fruit from My Greengrocer, catering from Blank Canvas Catering, and plants hired from Living Décor in Katikati. They’re encouraging other corporates to consider their supply chain, and make the change to buying local. GDH believes that with businesses open again, economic stimulus will come from profits flowing back into local economies.
Ryan Orr,Manager – Bay of Plenty,GHD (left) withTaylor Shea, co-owner,Ground Zero Coffee. Photo/Supplied
CONNECTING BUYERS AND SELLERS OF
BUSINESSES
When is the right time to sell your business? Right now.
TABAK,
promise
guide you through the sales process with focus, integrity and complete confidentiality.
YEAR BOOK
F ORSYTH BARR – DAVID MCCONNOCHIE, PAUL O’DRISCOLL, BRETT BELL-BOOTH, PHILIP KILPATRICK AND ANDREW DAVIS.
HAWKINS – PETER MCCAWE.
JENKINS FRESHPAC SYSTEMS – JAMIE LUNAM AND ANN CAMERON.
KPMG – ROB HILL AND GLENN KEANEY.
HOLLIS
BAYLEYS – TOP: HEATH YOUNG, DAVID MARTIN, MARK WALTON, BETH MILLARD. BOTTOM: LINDA GREENSLADE, MATT CLUTERBUCK, DICKIE BURMAN, JAN COONEY.
SHARP TUDHOPE LAYWERS – TOP: ALASDAIR CHRISTIE, BILL CHAPMAN, BROOKE COURTNEY, DUNCAN COOK, HAMISH MURRAY, BOTTOM: JOHN GORDON, MATTHEW BILLETT, RICHARD HOARE, RICHARD KETTELWELL, SHIMA GRICE.
JENKINS FRESHPAC SYSTEMS: CAMERON MCINNESS AND MELISSA YATES.
CROMBIE LOCKWOOD – THE TAURANGA TEAM’S 2019 SHORTS DAY FUNDRAISING FOR HOSPICE.
CRAIG S – LORI LUKE, ACORN GENERAL MANAGER AND FRANK ALDRIDGE, CRAIGS MANAGING DIRECTOR.
PMG – SCOTT MCKENZIE.
ENTERPRISE ANGELS – LEFT TO RIGHT, 1ST ROW: BILL, NINA, JAKE, COURTNEY, JORDAN; 2ND ROW: KELLY, JOSH, KIRSTEN, JULIAN, LARA.
TRUSTPOWER – APOLLO PROGRAMME: ENCOURAGING YOUNG PEOPLE.
THE STAFF ROOM – JILL CACHEMAILLE AND NATALIE BRANT.
EC CREDIT CONTROL – NICK KERR.
THE STRATEGIC PAY TEAM.
STRATEGIC PAY –CATHY HENDRY.
Stay vigilant to resist changing face of cyber attacks
It is a matter of fact that technology has a large role in our day to day lives. And with the separation of work forces and the activity of working remotely – using home security and home internet services, away from the workplace environment – today’s cyber criminals are more empowered than ever before.
Whether for political reasons, financial or personal gain, hackers can use their skills to disrupt businesses and organisations. Here are some of the types of attacks that could affect your business at any time.
Social engineering attack – phishing
In a social engineering attack, an attacker uses human interaction (social skills) to obtain or compromise information about an organisation or its computer systems. An attacker may seem unassuming and respectable, possibly claiming to be a new employee, repair person, or researcher and even offering credentials to support that identity. However, by asking questions, he or she may be able to piece together enough information to infiltrate an organisation’s
network.
Phishing is a form of social engineering. Phishing attacks use email or malicious websites to solicit personal information by posing as a trustworthy organisation. For example, an attacker may send an email seemingly from a reputable credit card company or financial institution that requests account information, often suggesting that there is a problem. When users respond with the requested information, attackers can use it to gain access to the accounts.
Phishing attacks may also appear to come from other types of organisations, such as charities or utilities suppliers. Attackers often take advantage of current events and certain times of the year, such as • epidemics and health scares (e.g. Covid-19) • natural disasters
economic concerns
To avoid becoming a victim, we suggest that you:
• Be suspicious of unsolicited phone calls, visits, or email messages from individuals asking about employees or other internal information. If an unknown individual claims to be from a legitimate organisation, try to verify his or her identity directly with the company before engaging further.
• Do not provide sensitive information over the Internet before checking a website’s security. Pay attention to the URL of a website. Malicious websites may look identical to a legitimate site, but the URL may use a variation in spelling or a different domain.
• If you are unsure whether an email request is legitimate, try to verify it by
TECH TALK
> BY TONY SNOW
Tony Snow is chief executive and co-founder of Stratus Blue. He can be contacted at Tony@stratusblue.co.nz.
contacting the company directly. Do not use contact information provided on a website connected to the request; instead, check previous statements for contact information.
• Install and maintain anti-virus software, firewalls, and email filters to reduce some of this traffic or use any anti-phishing features offered by your email client and web browser.
What
do you do if you think you are a victim?
• If you believe you might have revealed sensitive information about your organisation, report it to the appropriate people within the organisation, including
network administrators or your IT partner. They can be alert for any suspicious or unusual activity and mitigate any additional risks.
• Immediately change any passwords you might have revealed. If you used the same password for multiple resources, make sure to change it for each account, and do not use that password in the future.
• Consider reporting the attack to the police. You can check your own security passwords at www. haveibeenpwned.com to see if your email credentials have been compromised. Other checks, such as dark web analysis, can be done by a recognised and registered managed security provider.
Employing some of these simple practices will go a long way to avoiding cyberattacks. However, nothing is full-proof when it comes to securing your online content. Most people put themselves at risk as a result of poor practices and simple mistakes which can be easily guarded against. Make sure you continue being kept up to date for potential threats and educate your colleagues against these threats.
Working with a trusted IT partner can help you remain vigilant and ensure that you continue to enjoy a safe and enjoyable online experience and letting you get on with what you do best – growing your business.
Communications lessons from NZ’s crisis response
The way the Government has managed New Zealand’s response to the Covid-19 pandemic has been remarkable. Not only has the health response been outstanding, but the communication has been clear and impactful enough to ensure the majority of New Zealanders have done what has been asked of them.
As of writing, the only known Covid-19 cases are among those in managed isolation as part of New Zealand’s border control process for Kiwis returning from overseas.
Many businesses are hurting due to the measures put in place by the Government to eliminate the virus – but the economic impact would likely have been at least as bad, and probably longer lasting, had New Zealand not taken the steps it has.
The learnings from New Zealand’s response to the virus make an ideal case study in effective crisis management and communications.
And they aren’t just applicable to Government. The learnings also apply to any business that’s looking to manage a crisis and preserve its brand and reputation.
Be decisive
Perhaps the largest factor in New Zealand’s success has been the Government’s decisiveness. In the early days of the Covid-19 outbreak in New Zealand, the Government moved swiftly, and often a few
days before the weight of public opinion required it to do so. This was courageous and ultimately paid off by preventing the virus from gaining a lasting foothold in our community.
The lesson for businesses is that acting early and decisively can be the difference between a great response, and one that will see you on the front page of the newspaper or the 6pm news, for all the wrong reasons.
If you get it right, making a decision early can minimise the impact of a crisis and enable you to shape the narrative. Waiting to see what others are doing before you act can result in missing your opportunity to play a leadership role. Keep in mind that you should never confuse decisiveness with stubbornness.
A good crisis management approach needs to be flexible enough to shift direction if fresh information comes to light or the situation changes.
When it became clear that Covid-19 was under control and community transmission was not occurring during Alert Level 2, the Government moved quickly down to Alert Level 1.
Be accountable
While the government’s response to Covid-19 has been good, it hasn’t been flawless. When two New Zealanders who had recently returned from overseas were granted compassionate leave to visit their dying mother before undergoing a Covid-19 test – a furore broke out. Both were found to have the virus and New Zealanders worried that their drive from Auckland to Wellington for the visit might have unleashed the virus back into the community.
This was a clear misstep and breach of process, but the reputational damage was minimised by early apologies from Prime Minister Jacinda Ardern and Director-General of Health Dr Ashley Bloomfield.
This was coupled with quick action aimed at preventing recurrences, including suspending compassionate exemptions from quarantine, the enlistment of the military to oversee border security and the appointment of Housing Minister Megan Woods to provide ministerial oversight of isolation and quarantine operations. Regardless of how much
THE LAST WORD
> 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.
difference these actions made in practice, the “optics” were good. The public perception was that changes had quickly been put in place to ensure there were no systems failures in future.
Be consistent
Did you notice how many times Ardern repeated key messages during her daily 1pm briefings? She left little to interpretation and most of us were in no doubt about the situation after each of her presentations. In answering questions she stuck to the script and answered questions in ways that
reiterated the key points she wanted to make.
In a crisis it’s vital to know the two of three key points you want to make in every communication – whether it is a press conference, media interview, staff update or even a social media post – and to bring all of your messaging back to those points to make sure they are reinforced.
Be real
Another key ingredient in the success of the Government’s response was its authenticity and personality. In responding to a crisis, it’s easy to rely
purely on facts and figures in an attempt to communicate key information quickly. Sticking to the facts and avoiding speculation is important, but it can also appear robotic and lacking in empathy.
Ardern humanised the response by acknowledging the hardship people were facing throughout the weeks of Government restrictions and even adding a few touches of humour. This humour could be seen in her response to NZ Herald journalist Jason Walls, who forgot his line of questioning during one of the Government’s press conferences – “We’ll come back to you – no problem. I do worry about your sleep at the moment though, Jason”. It was also present in her “I did a little dance” comment upon hearing the news that the (then thought to be) final person carrying Covid-19 in New Zealand had been cleared of the virus on 7 June.
Touches like these can make a big difference in how people relate to your message on an emotional level. If people can relate to those delivering the message, they are more likely to listen. What’s more, they also tend to be more willing to forgive the odd mistake, if you do make any.
JacindaArdern. Photo/ Hagen Hopkins Getty Images
A DIGITAL FESTIVAL OF INNOVATION
In collaboration with
27 July — 2 August
Showcasing how Tauranga’s organisations and people are leading the way through ground-breaking new ideas.
Also featured are local, national, and international Masterminds sharing their expert knowledge in a range of Masterclasses. Now is your chance to learn and upskill from the world’s best!
2020 ONLINE EVENTS
A MASTERCLASS BY JOHN OLSEN
27 JUL — 10:00AM — 11:00AM PAID
With vast experience in HR for Microsoft, GE, and Amazon, John will teach practical ideas for you to build a company culture that will help you keep the staff you need to make your business successful.
This event is proudly sponsored by
INNOVATIVE INSIGHTS IN RUNNING A VIRTUAL ORGANISATION
28 JUL — 1:00PM — 2:00PM FREE
Hosted by RHUBARB, you can hear how two key Executives, Gary Johnston from the Waikato District Health Board and Allan Lightbourne from Tauranga City Council experienced a large conversion into a virtual operational environment. Discover learnings and experiences from organisations that rely on many people.
WORK THAT’S WORTH IT: TECH FOR GOOD 2020
29 JUL — 5:00PM — 6:30PM FREE
Where tech tools, skills and purpose meet to create a flourishing future!! Join Venture Centre as they take you on a journey with innovative entrepreneurs who are working on solutions locally and nationally to solve challenges in our food, homes, waste, and capital/investment systems.
PIVOTS BUSINESSES THAT HAVE PIVOTED TO SURVIVE AND THRIVE
28 JUL — 10:00AM — 11:00AM FREE
Hosted by RHUBARB, you will hear from Dr Michelle Dickinson (aka Nanogirl) and Ben Kepes (Principal of Diversity) about how they have pivoted their businesses during recent events to survive and thrive. See how Dr Dickinson and her husband Iost their STEM business to COVID, then built a new one in 3 days! BWN PANEL — WOMEN IN INNOVATION
A MASTERCLASS BY ANGE WALLACE
28 JUL — 3:00PM — 4:00PM PAID
Ultimately business owners want to get to “The Guts” of their clients’ experience to improve! Hosted by Venture Centre, this Masterclass will take you on a deep dive to learn the art of client feedback. Ange will help you understand the benefits of having client insights and help you introduce client feedback into your company.
KELCY TARATOA: WHO AM I? EPISODE 001 PUBLICATION LAUNCH
29 JUL — 2 AUG FREE
Tauranga Art Gallery is hosting a range of creative activity online including virtual galleries, artist interviews, fun family activities and workshops. In collaboration with Toi Ohomai, they will also feature a special book launch “Who am I? Episode 1” by Maori pop culture artist Kelcy Taratoa.
28 JUL — 12:00PM — 1:00PM PAID
Join a panel-led discussion, hosted by the Business Women’s Network (BWN), a networking group formed by women for women as part of the Tauranga Chamber of Commerce. This event will bring together women from different sectors who are at the forefront of innovation. Free for Chamber members; Non-members: $25
A MASTERCLASS BY KATHRINE SWITZER
29 JUL — 10:00AM — 11:00AM PAID
Get inspired through a ground-breaking Masterclass by the woman who created moments that changed the world. Learn sports performance innovation and mental toughness as iconic athlete, author, Emmywinning broadcaster and social causes advocate, Kathrine Switzer gives insights into myths of limitation.
This event is proudly sponsored by
THOUGHT LEADERSHIP THURSDAY: INNOVATION IN THE BAY OF PLENTY
30 JUL — 11:00AM — 12:00PM PAID
Hosted by the Tauranga Chamber of Commerce, this thought-provoking event will bring together local leaders in the tech and innovation space to ask the big picture questions of their industry and beyond. Hear their stories, gain their insights, and discover their vision for the future. Free for Chamber members; Non-members: $25
