New app takes headaches out of harvest
An employment app born out of a family accident is poised to make life easier for orchardists seeking staff over this season’s busy kiwifruit harvest.
By RICHARD RENNIE
Marlborough woman Gene-
vieve Griffin-George has already had strong uptake on her PICMI employment app from Bay of Plenty kiwifruit growers looking for a quicker and more seamless means of securing staff for this year’s harvest.
Griffin-George had the inspiration for the app after she was called back to her parent’s Marlborough kiwifruit orchard from France unexpectedly when her father was involved in a serious orchard accident.
With little previous experience she was required to run the orchard. She quickly found employing staff for the crucial harvest period was a time-consuming task that was as difficult for prospective staff as it was for their employers.
She partnered up with two technology developers to help devise a solution.
“The burst nature of seasonal hiring means that you have a limited time to secure the workers you need,” she said.
“From our field trials, we developed a tool that processes all the job-
seekers without effort. The employer just needs to tell them where and when to turn up.”
Matching up applications
With an estimated 24,000 seasonal positions to be filled across the Bay of Plenty this year for kiwifruit, and thousands more horticulture and viticulture positions around the country, she says a large amount of industry
Job seekers know straight away if they have a job or not with PICMI.”
time is unduly spent in the clumsy exercise of matching staff and jobs.
“PCMI avoids becoming stuck in the weeds of job boards, emailing and repetitious paperwork and chasing up details.”
The app’s standardised workflow, which includes a templated NZ Kiwi-
fruit Growers Incorporated seasonal employment contract, also captures induction, health and safety, IRD and employee details, removing the need for physical contact and paperwork.
Filling in details and agreeing to the contract can take as little as 20 minutes, and has sliced up to two hours off application time per employee.
“Our newest Bay of Plenty customer registered 670 jobseekers and 450 of them secured contracts to work this season. Of the contracts sighed 45 percent of them were signed within one hour, and 80 percent within one day.”
Delays in getting workers
Griffin-George said a big problem for employers are the delays between making contact with prospective
staff and getting them on the ground working.
“Job seekers know straight away if they have a job or not with PICMI. Most apply for many jobs and then wait, hoping to hear back. This causes frustration for both jobseekers and growers, who find that many applicants actually are not available.
“We can increase the capacity of our labour force by enabling jobseekers to find work that suits their needs and gives them the flexibility to choose, part-time, full-time based on location.”
The ability of the app to integrate with other business tools including payroll programmes improves compliance and transparency in a sector increasingly aware of the need to ensure staff are looked after.
Griffin-George received an innovation award for her app at the 2019
Employers can also see in real time how their recruitment programme is going, comparing actual uptake with required, detecting any impending shortfalls in particular skill areas, such as forklift operations, for example.
First time users of PICMI receive the first 10 staff sign ups for free, with each subsequent employee sign on costing $19 each. She says interest has been strong from overseas growers, particularly in Australia.
“The problems we are working to solve are not just going to impact farmers and growers in New Zealand, as they are global problems.”
Mystery Creek Fieldays, and has since worked closely with growers to fine tune its work-flow and ability to be customised to individual grower needs.
PICMI creator and accidental orchardist Genevieve Griffin-George. Photo/Supplied.
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From the editor
Tauranga is about to enter one of the most interesting phases of local governance for the city. As we are all aware, late last year the Tauranga City Council and mayor Tenby Powell were essentially dissolved. Despite protestations from some councillors, the central government was happy to begin again.
By the end of February the new look council has been confirmed.
A former National MP, two town planners and an infrastructure sector leader have been appointed to lead the new council.
Former long-serving East Coast MP Anne Tolley will chair the four-strong commission and will be joined by Bill Wasley, Shadrach Rolleston and Stephen Selwood.
Their term officially began on February 9, and will end after the next local body elections in 2022. However this could be extended.
Tolley said in a statement she was pleased to be appointed chair of the commission.
“As New Zealand’s fifth-largest city, it is important that Tauranga is governed effectively. This will be a big challenge for the commission.”
Tauranga City Council’s commissioners have now adopted an interim committee structure which will see the short term abandonment of most of the Council’s standing committees.
At late February’s first council meeting – the first involving the Commission earlier this month – the commissioners amended the existing standing orders to remove the time limit on their speaking rights and to increase the availability of public forum speaking slots.
Meanwhile, the Tangata
Whenua/Tauranga City Council Committee, City Plan Hearings Committee and Wastewater Management Review Committee will continue with the same terms of reference, but with new commissioner appointments to represent the Council.
Tolley said the Commission wanted to hear from as many members of the community as
possible as it worked towards the adoption of the city’s 202131 Long-term Plan.
“We’ll be going out to the community to hear what people want for their city and talk through the options in front of us,” she said.
“As part of that process, we also want to make our public forums more accessible for more people, so the length of time available at the start of each Council meeting will be at the Chair’s discretion, with people representing organisations provided with a minimum five-minute speaking opportunity. It will be very informal though.”
As New Zealand’s fifth-largest city, it is important that Tauranga is governed effectively. This will be a big challenge for the commission.” – Anne Tolley
So far the Finance, Audit and Risk; Policy; Projects, Services and Operations; Urban Form and Transport Development; Regulatory; and Chief Executive’s Performance committees have all been discharged and the Commission will consider whether to establish further standing committees at a later date. However, according to the commissioners, Council meetings will be held more frequently, and as needed.
Commissioner appointments have also been made to joint committees, including the Smartgrowth Leadership Group, Bay of Plenty Civil Defence Emergency Management Group, Te Maru o Kaituna (Kaituna River Authority), Regional Transport Committee and the Bay of Plenty Regional Council’s Public Transport Committee. Appointments to some key advisory groups were also confirmed.
Tolley said the Chair’s casting vote would be retained, but that she hoped that it would not be needed. Much remains to be seen in our new look council.
David Porter
Leading property developers join forces to advocate for positive change
The abrupt sacking of the Tauranga City Council has created major ructions in the local electoral system and more are likely to emerge.
TBy DAVID PORTER
he Council recently announced the official appointment of the four commissioners who will be taking over, for an - at this stage - undetermined period. They include chair Anne Tolley, and commissioners Bill Wasley. Stephen Selwood and Shadrach Rolleston.
Exactly how their role will evolve remains to be seen. But for Tauranga’s important property sector¸ leading specialists have moved aggressively to ensure access to the new commissioners.
Led by Scott Adams of Carrus Corporation, a group of around 50 or so leading property specialists has formed a new group, the Urban Task Force (UTF), created as an incorporated society.
When we went to print, UTF was due to meet with the commissioners in early March. Adams told the Bay of Plenty Business News that his understanding was that the commissioners’ mandate was to be cooperative.
Adams said he had not at this stage had contact with any other groups. However, it is understood representatives from various interests including the Smart Group entities, which in the past have played a large role in creating the current shape of Tauranga, would form groups to interact with the commissioners.
At a recent meeting at the University of Waikato - Tauranga, Adams led a group of 50 or so members of the new society and advised that it was set up to provide strong leadership, advocacy and positive change for the benefit of Tauranga.
“UTF is a group of Tauranga Property investors and developers who came together towards the end of 2020 with grave concerns for growth implementation for our
city. We wanted to combine forces to collaborate and get runs on the board for our great city,” Adams told the meeting.
Departures a key factor
He noted that the departure of former Mayor Tenby Powell and the previous TCC members was also a key factor.
Although Powell was unpopular with many members of the outgoing council, he was generally favoured by a large number of property specialists as someone who wanted to get things done.
“The city badly needs leadership,” said Adams. “Commissioners have now been appointed and intend to engage early with this group.”
Adams noted that the group needed to make sure they were not just swapping one group of politicians for another.
Adams was somewhat dismissive of the recent contribution of Smart Growth as having largely become a “talk fest” over the years.
“The rooms are full of bureaucrats and strategic advisers with a bob each way,” he suggested, stressing that here was no real brief for the property private sector.
“We all agree I’m sure that there’s been enough talk – we need action,” he said.
Property Council changes
Adams noted that changes in the NZ Property Council, which had merged the Bay of Plenty and Waikato branches because of Covid-19 concerns, was another key factor in setting up the UTF.
“The Property Council is still an important voice, but the focus is now wider,” he said.
“Given the dire straits our city now finds itself in, Tauranga needs its own action
group to provide leadership and change and deliver some results on the ground.”
Among the members of the society who took part in the meeting and will serve on the board, were experienced property specialists such as Simon Collins of Hobec Lawyers, Steve Cutfield from Classic Group, Morgan Jones from Veros, Buddy Mikaere, an historian and resource consent specialist, Scott McKenzie from PMG Funds, and Peter McCaw from Hawkins.
The purpose of the new society, said Adams, was to provide advocacy, leadership and positive change not just for local property developers and owners, but to create sustainable property for all living and working in the district.
Given the dire straits our city now finds itself in, Tauranga needs its own action group to provide leadership and change and deliver some results on the ground.”
– Scott Adams
WELCOME TO VANTAGE
The perfect mix of city and coast at your doorstep
Set to further enhance Tauranga’s growing inner-city, Vantage is a new premium mixed-use, seven storey development at 359 Cameron Road. The enviable location will provide access to the best of Tauranga and showcase sweeping water views towards the harbour and Mount Maunganui.
Vantage is a product of the dynamic collaboration between the award-wining team of developer, Black & Orange Property, architects Edwards White, and engineers, BCD Group. These consultant teams have a shared goal of providing high-quality building solutions that stand the test of time and offer positive outcomes for the community.
As described by the Development Manager of Black & Orange Property, Daniel Kirk, the development will offer “the ultimate in sophisticated CBD living and create a unique destination to live, work and play.”
The building will comprise of two levels of secure basement parking, one level of commercial space - including a cafeand four levels of residential apartments totalling 32 freehold apartments, including five luxury penthouses. Vantage features a mix of two and three bedroom residences with various bespoke configurations to suit numerous situations. With prices starting from $860,000, interest has been strong with 13 of the apartments already sold.
With Foster Construction awarded the construction contract late last year,
Black and Orange are confident they have appointed a company with a strong reputation of delivering high quality projects throughout the Bay of Plenty and Waikato, who will have no problem delivering on the aspirations for the development. Coming off the back of the recent completion of the Bayfair redevelopment amongst other projects, Foster Construction are proud to be able to add another high quality development to their portfolio.
“With excavation and ground works nearly complete the riskiest part of the construction programme is behind us and it feels great to provide purchasers firm completion dates they can have confidence in. There have been many apartment complexes marketed off the plans in Tauranga that haven’t made it to the start line, and we are proud that this is becoming a reality.”
“Vantage will offer a level of amenity rarely found in city living”, said lead architect, Brian White of Vantage’s convenient and accessible location. The development is within a short drive to some of the top highlights of the Bay of Plenty region, including Mount Maunganui’s Mauao, stunning beaches and
large-scale retail outlets – Tau ranga Crossing and Bayfair. Vantage is also a short walk from Tauranga’s harbourside and popular dining and entertainment area, The Strand.
Careful planning and attention to detail of each apartment aligns with the aspirations for the development to achieve timeless quality and easy-care living. The acoustic and thermal performance also aligns with the visual quality, being well in excess of standard building code requirements, allowing residents to enter tain with minimal disruption to other apartments. They will also retain heat during winter and keep cool during the warmer months for all year comfort. The over-height ceilings and doors combined with floor-to-ceiling glazing maximises natural light and allows residents of Vantage to enjoy
“
panoramic and unobstructed views over the harbour and hills beyond. High quality finishes and fixtures throughout complement the refined aesthetic of the holistically designed kitchens and bathrooms. These spaces achieve timeless elegance while offering a sense of calmness.
Large, sheltered decks offer protection from prevailing winds while capturing the outstanding views. All apartments have been elevated above the street, providing privacy from the city below.
Vantage will be the second instalment of mixed-use developments for developer, Black & Orange Property, following the success of their Hamilton mixed-
used development, Parkhaven. The five-storey development had all 21 apartments sold by the time the building was completed in early 2018.
Since its completion, the building has received numerous awards including the Property Council Waikato Urban Design and Supreme Excellence Awards, the Hamilton CBD Most Improved Site Over $500K Award and the Waikato/Bay of Plenty Architecture Multi-Unit Housing Award. Black & Orange Property look forward to delivering another outstanding project and are passionate about the revitalisation of Tauranga’s CBD and seeing the city thrive and grow.
Vantage is being marketed by the renowned Harcourts sales team of The Mount and Papamoa – Team Theo. “At Team Theo, we feel privileged to bring Vantage to the market. Working alongside the developers and architects, it’s rewarding to be the final element that will see this stunning complex come to fruition,” says Theo Smith.
“As this country’s fifth largest city and a major influence on today’s lifestyle, Tauranga answers every desire.
We believe Vantage completes that fulfilment. The position is key. This central location on the corner of Cameron Road and 4th Avenue is perfectly positioned to enjoy city life. Shopping, business, the university, entertainment, and waterfront recreation – it’s all right on the doorstep. Restaurants and cafes – across the road and beneath these apartments; with many more close to this address.”
“It’s a significant step up in terms of space and sophistication. Designed around enlightened luxury, these apartments capture the essence of Tauranga’s backbone belief in ‘live, work and play’. Outdoor flow is an integral element at Vantage.
“The lower levels enjoy vibrant urban views over the Tauranga CBD while the upper apartments boast some of the best views of Mount Maunganui, the harbour and beyond,” he says.
For inquiries and expressions of interest on the residential residences contact Theo Smith on 0274719770 or via email at theo.smith@harcourts.co.nz. You can also get further information on the apartments at vantagetauranga.nz.
PARKING OPTIONS A KEY FEATURE
The ground level of commercial and retail tenancies will be anchored by BCD Group with four other commercial tenancies available between 130 and 280 square metres in area. In addition to the top location and quality surrounding complex, the key item setting these apart for tenants is a full level of carparking solely for the
commercial tenants, in a city that has a shortage of such, with a basement level of 46 secure, covered carparks, allocated to the commercial and retail tenancies.
For more information on the commercial space contact Brendan Bradley on 021816600 or via email at brendon.bradley@bayleystauranga.co.nz.
Tauranga Port reports improved profits despite disruptions
By DAVID PORTER
New Zealand’s largest port and international freight gateway Tauranga Port in late February reported increased profitability for the first six months of the 2021 financial year, despite volatile cargo volumes and the and congestion issues at Ports of Auckland.
Group Net Profit After Tax for the six months to December 2020 was $49.4 million, a 2.3 percent increase on the previous year, despite a 1.3 percent decrease in total trade volumes, to 13.1 million tonnes. Container numbers decreased 4.6 percent compared with
the previous corresponding period, to 612,988 TEUs.
Port of Tauranga Chair, David Pilkington, said the mid-year financial results were very pleasing considering the volatility in cargo volumes over the period and reflected the stability offered by the diverse companies in the group.
“We have managed to maintain income throughout a challenging six months,” he said.
“Port of Tauranga handled near record volumes of containers in the months of October and December. However, lower-than previous demand from June to August, and
vessel delays in November, dragged down the year-to-date container volumes.”
It was a similar story when we look at overall cargo tonnes, he added. Volumes decreased 1.3 percent for the six month period, yet volumes in December 2020 were 15.1 percent higher than the same month in 2019.
Vessel delays Pilkington said severe vessel delays out of Auckland since September had significant flow-on impacts on Port of Tauranga.
The average cargo exchange per container ves-
sel was 21 percent higher in December 2020 compared with December 2019, due to the cargo bypassing Auckland. And late arriving vessels have been slow to pick up exports, exacerbating container yard congestion.
Retiring Port chief executive Mark Cairns, says the January 1 introduction of penalties for shippers rolling cargo or leaving their containers on the wharf for excessive time has provided some relief from yard congestion. The peak export season is now in full swing.
“We need all parts of the supply chain to do their bit and we are very grateful for
the cooperation of importers and exporters in improving terminal productivity. Unfortunately, the threat of congestion remains and is unlikely to dissipate until Ports of Auckland sorts out its operational problems. New Zealand’s ability to absorb the worldwide disruption caused by Covid-19 has been severely constrained.”
Port of Tauranga has applied for the Covid-19 recovery fast-track resource consenting process for its proposed berth extension at the Tauranga Container Terminal.
The fourth berth will be created by converting 220 metres of cargo storage land to the
Our inhouse designers pay special attention to the details of our homes, honouring that homes are a combination of comfort and functionality.
south of the existing wharves. The $68.5 million project will create an estimated 368 jobs through the construction phase and more than 81 permanent jobs after completion. No Government funding is sought for the project and it is frustrating that the consent process takes so long.
Cairns said the project could help ease congestion in the Upper North Island supply chain, especially with the prospect of the Ruakura Superhub and inland port at Hamilton coming on stream. The inland port, being developed in partnership by Tauranga and Tainui Group Holdings, is due to open in 2022.
Clients in good hands thanks to Stratum’s approach
John Lewis always wanted to work in the rural sector and, as Stratum’s surveying director based in their Te Puke office, that’s exactly what he’s done.
Now it’s time to pass on the mantle with his retirement at the end of March, although as John says, he might be leaving but he’s leaving behind a lot of expertise in the business.
“I’ve always had an opendoor policy with my team. I tell them to always ask me anything because that way I can reduce mistakes, reduce time and share my knowledge. As a consequence, I feel like my 40 plus years of experience is available to my team every day, so when I leave it will still be here.
It’s this approach that has guided John in his career with Stratum.
“Surveying is a profession
where you simply can’t make mistakes.
“Everything you do must be independently checked and it’s not a profession where I like to see people trying to work things out themselves. That just costs our clients time and money and doesn’t facilitate a mentoring style environment in the workplace.”
Whilst Stratum have offices across the region, John has loved working in the close-knit
community of Te Puke.
“A successful business will always be about the relationships you have with your clients and in a small-town community like Te Puke, they
A successful business will always be about the relationships you have with your clients and in a small-town community like Te Puke, they certainly seem to run deeper.” – John Lewis
YOU CAN’T GET MORE LOCAL THAN STRATUM
We know this land like the back of our hand – which means better outcomes for you.
Our vast local knowledge and experience is why we are one of the leading land development and land utilisation consultants in the Bay of Plenty.
Every day we exceed expectations for our valued clients, delivering solutions that have a positive outcome for the places and communities that they, and we, call home.
Your local land experts
certainly seem to run deeper. It’s simple really, unless you become almost part of the furniture, you’re not going to be the go-to for the clients who want someone they know well and can trust.”
The Stratum Te Puke office boasts a team of seven surveyors and five support staff, all integral to the camaraderie and function of the office and team.
When John leaves, associate surveyor Matt Powdrell and surveyor Danny Underwood will head up the team. John says the clients are in the very best of hands.
“Matt’s family has been in the community for several generations. He certainly has his teeth in the job and he’s ambitious. That’s a good thing for us because he works damn hard and really looks after our clients.”
“Danny’s father used to be my solicitor so when he said Danny wanted to be a surveyor we gave him some work over the summer breaks.
“I didn’t favour him because of our family connection. It was his work ethos and abilities that landed him a job and he continues to impress us today.”
John says he feels very comfortable hanging up his surveying tools for the last time as he retires.
“With Matt and Danny in the Te Puke team I feel very comfortable retiring, knowing our clients will still be confident and pleased with our work and probably won’t even notice I’m gone!
“I think if you can retire doing that, then you know you’ve truly done a good job both in terms of looking after your clients but also handing on your expertise and experience to the new generation coming through.”
The Stratum team taking over the reins from John Lewis.
INDUSTRIAL
• High quality industrial units
• Excellent locations in the Tauriko Business Estate
• Contact us now for further information
Winners of 2020’s Ray White Commercial International Awards “Client Choice” for customer service – 4th year in a row!
Christy Arundel (Commercial and Industrial Specialist)
Philip Hunt (Managing Director)
IOPPORTUNITIES GOING FAST IN BOOMING TAURIKO
By DAVID PORTER
t’s no surprise that the remaining options for securing a position in Tauriko Business Estate are moving fast.
One key element is recent government action on industrial and commercial properties, with proposed imminent changes to the Loan To Value Ratios (LVR) likely to increase the appeal of non-residential property. Even more important, says Ray White Commercial Specialist Philip Hunt, is that available property in Tauriko is disappearing quickly.
“What I have noticed is an increase in demand and enquiries since early February, when it was announced that Tauriko Business Estate had no more land available for sale from the developer,” said Hunt.
“The demand has gone to a higher level because people have recognised the opportunities are coming to an end – basically people just aren’t making any more developable land in this area.”
Tauriko’s successful estate
Tauriko Business Estate has experienced unprecedented growth over past three years, to the extent that there is virtually no titled land available from the developers. The unique opportunity to own “your own” Industrial Unit is coming at a time when demand is very strong, said Hunt.
Tauriko Business Estate has been one of the city’s most successful industrial estates. Main developer Element IMF, with director Bryce Donne, has brought on a succession of new developments over the past few years.
And that’s not to mention the expansive project announced a year or so ago for Gib Wall Board’s new facility at Tauriko. The design phase of the new plasterboard manufacturing and distribution facility is now complete, and construction is underway.
It has a site over two-and-
What I have noticed is an increase in demand and enquiries since early February, when it was announced that Tauriko Business Estate had no more land available for sale from the developer.” – Philip Hunt
a-half times the size of the current Penrose, Auckland site, and excellent access to Tauranga’s port logistics and Tauriko’s roading networks. The new plant is scheduled to open in 2023 and is expected to ensure Winstone Wallboards can meet the growing demand for plasterboard, with around 100 new permanent jobs. Hunt, who is considered one of the most experienced estate agents in the park, is noted for keeping a close eye on what is attracting investors to Tauriko. He is currently in the process of bringing some of the few remaining available properties to market, with three developments currently under way.
These developments include Kaweroa Rise (452)
and the Tauriko Trade Hub (424), each of which has three units available, and a newer development Kaweroa Court (439),which is available now. Pricing ranges from $490,000 to $990,000. Kaweroa Rise and Tauriko Trade Hub are almost sold out.
Industrial specialist Christy Arundel
Providing support to Hunt is Christy Arundel, who specialises in leasing of industrial properties (including design build options), industrial developments and land sales within the Tauriko Business Estate. She is highly regarded for her client communications and customer service throughout each transaction. Christy and Philip
were both recently titled “Top Agent for Clients’ Choice”, which is awarded to only three individuals within Ray White Commercial (internationally).
Hunt said that he had noticed since early February the increase in demand and enquiries when Tauriko Business Estate advised it had no more land available for sale.
“We’re also seeing an increased demand from larger tenants and owner/occupiers as well as smaller investors and owner/occupiers and tenants for the area that I specialise in,” he said.
Hunt noted that the developments that he brings to the table from various developers, vary according to the snapshot demand that he knows is currently in the market.
Excellent records
“I keep very good records and have a very good understanding of where the demand is,” he said, adding that he brings on developments that are catering for the level of demand he is seeing.
“I’ve never known the level of demand to be this high.”
Hunt observed that a number of investors were making their first foray out of residential development and into commercial/industrial property.
“Tenants have seen what is happening at Tauriko Business Estate,” said Hunt. “They want to be out there where the roading and facilities are second to none.”
Kaweroa Court
Tauriko Trade Hub
Kaweroa Rise
Equities surged as last year ended
Investment market update (for the quarter ended 31 Jan, 2020)
Global equity markets surged in November and December last year fuelled by two key events: (1) positive progress on Covid-19 vaccines, and (2) the outcome in the US election and prospects for significant further stimulus from the new Biden regime. Prices generally paused for breath in January.
The vaccine rollout has begun
The biggest news of the quarter was the positive trial results and initial rollouts of Covid-19 vaccines.
Israel leads the way with 57 percent of the population vaccinated as at 1 February, with the early evidence suggesting that vaccines are at least as effective as the clinical trials concluded.
The UK at 15 percent and US at 10 percent are the leaders of the major economies.
We’ll see a ramp-up of vaccine production and distribution through 2021 supporting slow, but steady, progress toward more normal economic conditions.
Democrats consolidate power in the US
After winning the Presidency and the House of Representatives in November, the Democrats secured a “Blue Wave” in January with unexpected vic-
tories in both Georgia Senate runoffs.
Vice-President Kamala Harris represents the deciding vote in the 50-50 split 100 seat house. Securing a Blue Wave should better enable President Biden and the Democrats to advance their policy agenda.
Biden has proposed a huge US$1.9 trillion stimulus package that will provide financial support directly to individual Americans, as well as assist in the distribution and rollout of vaccines.
President Biden is expected to push for another stimulus package in February focused on longer-term investments such as infrastructure and climate change.
Growth indicators positive
Economic activity generally is bouncing back from easing lockdown restrictions.
In December, New Zealand’s third quarter GDP was reported up +14.0 percent
quarter on quarter, the largest quarterly rise on record.
Despite border restrictions likely largely remaining in place, at least through 2021, we remain optimistic on the outlook for the local economy.
The key drivers should continue to be the boom in housing construction, as well as the recovery in global trade and rise in commodity prices lifting our national income.
Our “Covid-free” status is an advantage over many other economies in allowing normal domestic activity.
Globally, China’s economy was the first to rebound back to positive growth. The US economy has also recovered well with two back-to-back quarters of GDP growth in the second half of last year.
The rebound in US growth puts inflation-adjusted economic activity not far below the record high that was seen in late 2019.
The main impediment to a continued improvement in the global economy is, of course,
Covid-19.
WHAT TO DO WITH YOUR MONEY
> BY BRETT BELL-BOOTH
Investment Adviser with Forsyth Barr Limited in Tauranga, and an Authorised Financial Adviser. Phone (07) 577 5725 or email brett.bell-booth@forsythbarr.co.nz.
important:
While the third wave has been rampaging through much of the northern hemisphere, recent data indicates it crested in the middle of January with both new infections and hospitalisations starting to ease.
The distribution of vaccines will support the recovery in activity led by consumer spending, and residential and business investment.
The year ahead
Optimism about the development and distribution of several vaccines along with expected substantial fiscal support from governments is paving the way for a recovery in economic activity in the year ahead.
We remain generally positive but we also expect the recovery to be uneven, which could cause market volatility in the year ahead.
For investors we focus on a number of key thematics and believe the following will be
• Monetary and fiscal support to continue, which will underpin economic activity, rising employment, asset prices, and healthy consumer confidence.
• Vaccines to eventually dominate the virus, which will allow economies to re-open and some sectors, currently in survival mode, to re-start normal activities.
• Mergers and acquisitions will remain an active part of the equity market as very low funding costs and the attractiveness of certain assets listed in New Zealand continue to attract global capital.
• Climate change and the impact on the environment is now one of the dominant investment themes globally. Almost all major governments have signed up to some emission reduction targets and investment philosophies and mandates are rapidly changing to reflect this important trend.
• Geopolitics will become a more important consideration in investment strategy with particular interest in the Asia-Pacific zone. China’s assertiveness and New Zealand’s reliance on trade with the world’s second largest economy will pose risks and challenges that will need to be navigated carefully.
The start of a year is often a time to reflect on your financial goals. Your Forsyth Barr Investment Adviser is available to discuss your investment plans with you, at any time.
This column is general in nature and is not personalised investment advice. This column has been prepared in good faith based on information obtained from sources believed to be reliable and accurate. Disclosure Statements for Forsyth Barr Authorised Financial Advisers are available on request and free of charge.
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.
Growers settle on lower payment
The chief executive of the country’s largest kiwifruit operator has welcomed an out-of-court settlement with the Crown for Psa losseswith some mixed feelings.
By RICHARD RENNIE
Earlier in February, the Crown settled for $40 million with Seeka and Strathboss, a group of kiwifruit growers who took the government to court seeking recompense for the losses incurred from the 2010 Psa outbreak.
Strathboss and Seeka had sought $450 million in losses incurred due to claimed negligence by Ministry of Agriculture and Fisheries (MAF), now known as Ministry for Primary Industry (MPI). The growers’ claim to having a case was confirmed in the Court of Appeal, but was subject to a Supreme Court ruling that had been due to commence in mid-February.
Simple business case
Seeka chief executive Michael Franks said that, while the $40 million was only a percentage of the $450 million being sought, it remained a significant sum, and there was a simple business case for ensuring the settlement took place.
“This means the fund could get cash back and we could get a profit share of the payment.”
The class action had been launched with Seeka and 212 growers participating, each paying between $500 and $1500 to participate, based on their orchard size.
Seeka incurred multi-million losses in the wake of the Psa outbreak and was forced to lay off 62 staff. Overall the outbreak cost the New Zealand economy more than $800 million.
The plaintiffs had successfully proved a shipment arriving from China in 2009 contained pollen and other banned plant material infected with Psa. MAF admitted to the court the consignment should
was time to move on and bring a close to the legal challenges that have been running since 2014.
“The settlement acknowledges the grievance felt by the kiwifruit sector plaintiffs.”
But he noted the Court of Appeal ruling last April had also found it would not be fair or reasonable to make the Crown legally responsible for losses of this kind, and therefore no legal duty of case was
I firmly believe negligence was never going to be in doubt, it was really about whether liability and duty of care came back to the Crown.”
– John Cameron
have been inspected by agency staff at the border and biosecurity clearance should not have been granted, due to discrepancies in the shipment items.
Bringing action to a close
In a statement on the payment, MPI director general Ray Smith said all parties agreed it
owed by the relevant MAF staff to the plaintiffs.
“The staff were protected by a statutory immunity, as was the Crown.”
But Franks said he would have liked to have taken the case to the Supreme Court to prove the liability.
“But I would also have to say the MPI of today is not the MAF of 10 years ago.
Partners could define your business in 2021
Businesses and organisations continue to embrace the importance of technology to support operations and deliver efficiencies. We are increasingly being asked “Can you help us with our digital strategy?”
Clearly, the overarching business strategy of any organisation is the main driver for success. However, the digital workstream has become a core element of the overarching strategy that no business can ignore (even if they would like to).
To establish an effective digital strategy, you need to ensure you have an informed IT resource that also understands the needs of your business sitting at the board table (whether it’s in house resource or an outsourced IT partner).
There is so much to consider. One of the positive outcomes from Covid – lockdowns and distributed workforces – is that research has been able to take place and minds have been opened to the potential of the implementation of quite advanced digital solutions across a broad range of businesses.
As previously reported, there is definitely a growing awareness of the importance and risks associated with information security and data ownership; but there is also a trend for an increase in interest in more advanced technologies such as data analysis, business intelligence and interpretation, Business Process Auto-
mation (BPA) and robotic systemisation.
As technology changes, it can be difficult as business owners, directors, managers and decision-makers to keep up. Making decisions on implementing industry leading technology solutions, whilst maintaining existing mission critical systems that are built on more traditional platforms can be a difficult task. It is a delicate balance that could make a huge difference to the productivity and effectiveness of your business.
Having a partner, trusted supplier, dedicated employee or team, or IT coach is important and an aspect that some businesses continue to overlook. We have seen businesses delegate IT to the youngest member of staff as they are “up with the play in all that technical stuff”; or have a staff member’s second cousin’s nephew look after it (seriously).
Or a one person support company is engaged to look after a company with 80 users. It does depend on each company’s risk profile and the capacity of the provider, but are you looking for a provider of services or a partner in your business success? Here are some key things
to consider when assessing a potential technology partner or setting up and managing an internal IT team.
Agreement types
It sounds simple, but is it clear what services are covered as part of the agreement?
How long is the agreement term? What happens to data when the agreement finishes?
What happens if there is a breach or dispute?
Who actually owns the data and where is it? Can you get it back?
Are there measures to manage performance (KPI’s)?
Can you exit the agreement easily if performance is not satisfactory or the relationship is not working out?
What warranty agreements are in place? Who pays for what?
Back end support
Does your IT team (in house or outsourced) understand your support requirements, and can it meet the needs of your business?
Is it clear what support services are actually being provided?
What other support do they
“Their far more responsible approach to biosecurity is a contrast to the cavalier attitude to biosecurity taken by the last regime.”
Strathboss member spokesman and Bay of Plenty kiwifruit grower John Cameron said he was adamant the government was making an acknowledgement it held some responsibility over the issue.
“I believe 110 percent the government would not have paid out a cent had they thought they were not responsible.”
He said the decision to accept the offer had been adjudicated through a third party group to ensure it was an objective decision in the best interests of all parties.
“I firmly believe negligence was never going to be in doubt, it was really about whether liability and duty of care came back to the Crown.”
He said he and the other participating growers felt vindicated for taking the action, which at the time had not been wholly supported by all parties in the
industry.
Seeka remained the only post-harvest processor to participate in the action.
“But now we have been awarded more than what Zespri got after the Psa incursion.”
A dollar for dollar offer from the government in 2010 to help the industry cope with Psa had resulted in Zespri receiving $25 million.
Cameron said the amount each grower would receive has yet to be determined and approved by the High Court.
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.
offer, what is the privacy / security testing process, what reporting are you getting?
Knowledge and assistance of standards and ongoing training
Does your IT team have the required knowledge of your business systems and processes to apply effective technology solutions?
Is your IT team being proactive about what comes to the market and keep you informed regarding relevant technology solutions?
Are they acting on your behalf with developers or third
party vendors?
Are they part of your Strategic or operational team or both?
How is your IT team supporting you in ongoing training, keeping to best practice standards and ensuring your data is protected?
Do they know the best of breed or know the best people to talk to if there is an issue?
Are they straight up and saying “they don’t know”, if they don’t know?
Business information (data), intellectual property, and effective processes are critical for any business to continue and is where the true
value of the business lives. Who you have looking over it is a key decision to make.
To have the trust to invite your IT partner (either inhouse or contracted) to the board table, to have open discussions around IT strategy and operations that fits with the business strategy could be the difference between success or not.
If you don’t feel comfortable with this, then some underlying issues may be present and need to be addressed. With the new financial year coming up and running through budgets – what is the best solution for your business in the IT environment?
Should I purchase a greenfield or an existing franchise?
One of the first considerations for the franchisee entrepreneur is whether they should purchase an existing franchised business or a greenfield/start up franchise?
There is of course no universally correct answer and it depends on the individual buyer, their appetite for risk and their business ownership objectives.
The traditional paradigm has been relatively easy to understand.
The arguments for buying an existing franchise business
An existing franchised business has performance history. A potential purchaser can look at and analyse the performance and make some relatively sound projections around their likely performance moving forward.
Where the franchise component is so important is that a potential franchisee, as part of that analysis, can look at the particular business unit or franchise and evaluate it against others in the system, or the benchmarks – is it performing well due to the franchisee or location? Could they do a similar or better job?
This can also help with funding as history can be referred to. For many, they
consider it a safer purchase option.
Even an underperforming franchise can and often is the preference as the price may be less than replacement or establishment costs and may also allow an incoming franchisee entrepreneur to quickly and relatively easily increase goodwill and generate a capital return.
The potential downside for buying an existing franchise business is, of course, how much is the incoming purchaser paying for goodwill?
A more difficult evaluation is how much of that goodwill can be attributed to the particular franchisee versus the brand, and if and by how much this may be eroded.
The arguments for buying a greenfields/ start-up franchise business
The ability to generate goodwill versus purchasing it is usually the major driver for establishing a greenfield franchise business.
Usually this means that a start-up is less expensive to
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 ability to generate goodwill versus purchasing it is usually the major driver for establishing a greenfield franchise business.”
purchase than an existing one – particularly a profitable franchise business.
Not surprisingly, the franchisee entrepreneur that is more confident in their abilities and or has a higher risk appetite is likely to lean this way. The downside of establishing a greenfields business are of course the unknowns –how long will it take to get to breakeven and beyond, what is the magnitude of the opportunity or business?
Time for action
If you have considered selling your business, it really is time to take action. LINK has continued to have record enquiry levels on businesses for sale. Never have we seen a market so in favour of the seller. Quality buyers are plentiful, but there is not enough quality businesses to satisfy the demand. Our clear pinch point is finding businesses to sell. If you have considered selling your business, it really is time to act.
One thing that is in great supply for all of us is a giant pile of readymade excuses not to take action when it comes to selling a business. No matter what you do we are given reasons not to act, and right now, this is being delivered in spades.
We talk to hundreds of business owners every week and often hear the same thing, “It’s not a good time for me to sell right now”, and the rationale is often end of year financials, Covid-19, auspicious dates or perhaps a dodgy astronomy column!
If we put our lives on hold for things out of our control we lose the ability to make good decisions when they matter. Covid-19 is part of the world now and we have effective ways of managing this in sale process with very little impact on value in most cases.
Don’t miss this current window
to sell, as none of us know what tomorrow holds, but LINK can tell you what is happening today, and it’s very positive for business owners looking to exit.
Key indicators that relate to increased business buyer activity
• Low Interest Rates
• Government Policy – Potential for more focus on business lending. Returning Expats looking to acquire a business versus seeking employment.
• Business Confidence – The longer we remain COVID-19 free the more business confidence increases.
Corporate Unemployment – Professionals looking to acquire in the SME market.
• Migration to the Bay – The Bay
A less confident franchisee entrepreneur may also be concerned around their ability to build and grow versus maintain a business.
Challenging the traditional paradigm
In the current environment, you are unlikely to be surprised that an overwhelming number of new franchisee entrepreneurs are focused on purchasing an existing franchise business.
Subscribing to the traditional paradigm they are seeking to see history and proven performance, in particular how the businesses have performed over the past six to 12 months.
It could be considered riskaverse behaviour, but I would suggest that there are several new factors that need to be taken into consideration and perhaps challenge the traditional paradigm.
For example, has the disruption of the past year finished?
The old cliché that past performance is the best indicator we have for the future may no longer apply.
Disruption to some sectors like inbound travel is obvious and acute, but what about businesses that have traded well or even up over the past six-to-12 months – are they still to have their disruption?
Or what about those franchise businesses in either a category of location that have been impacted: will and when will they trend upwards?
How about completely new business concepts where there are no existing businesses for resale?
I do believe that there will be ongoing changes to consumer behaviour, how and where money is spent, category changes, new trends and whole new franchise business opportunities.
These will be both geographically in markets where there may not be existing franchise units and or in completely new markets for new products, services and systems. So, to answer the question of “Should I purchase a greenfield or an existing franchise business?” the traditional paradigm remains, but it can certainly be viewed through some new lenses.
of Plenty remains a lifestyle hotspot for nationals looking for a better quality of life.
• Zero CGT – At present there is no Capital Gains Tax on the sale of a business as a going concern.
• Attitude & Security – New Zealanders more than ever recognise the benefit and reward of building equity by running your own business. For the potential business buyers out there, we have a little advice for you too. It’s very hard for business brokers to ascertain who is serious and prepared, and with a huge number of buyers to work with, it’s important you are clear about your
Like everything in life, the opportunities are there for everyone, but only those who act will benefit.
intentions. What will make a broker really sit up and notice you? Let them know you have spoken to your bank
or other financier and are confident you can fund the acquisition, be clear what price range you are buying in, and that you are ready to move quickly if you find the right business.
No business is perfect and your willingness to make some compromises will put you in good stead also.
Like everything in life, the opportunities are there for everyone, but only those who act will benefit.
0800 225 999 linkbusiness.co.nz
Perfectly positioned as Tauranga’s premier venue
Trustpower Baypark has hit the ground running in 2021 with a busy calendar leading into the second quarter of the year.
Speedway
The speedway season is wrapping up with three more race nights - 6 March – Midgets and Sprint Cars, 13 March –Demolition Derby, 27 March – Fredrickson/Super Stock Rumble. The season will finish with a bang on 3 April with the Closing Night Fireworks Extravaganza.
To enjoy watching the races in style there are a number of exclusive, spacious Corporate Boxes available to entertain your guests comfortably. Please contact events@bayvenues.co.nz or 07 577 8593 for more information.
Netball
The Silver Ferns will face the Australian Diamonds in both matches for the first time in
over a year as part of the Cadbury Netball Series. The Constellation Cup, which was postponed due to Covid-19 last year, has been confirmed to be played in New Zealand with Christchurch hosting the first two matches before the action heads to Trustpower Baypark Arena on Saturday 6 and Sunday 7 March. Tickets can be purchased at www.ticketek.co.nz.
Bill Bailey – En Route To Normal
Following a thumbs-up from immigration, Bill Bailey has announced a 12-centre 2021 tour of New Zealand, landing in Tauranga on 25 March. How did we get here? How do we find our way through this? And exactly who are we
again? In Bill’s new show, En route to normal, Bill ponders these and other questions that this moment in history has thrown up and tries to see a way through the strange unreality of our new world. With his trademark blend of satire and surrealism, stories and dismantled jokes, crowd sing-alongs, weird instruments and musical showstoppers, don’t miss this legendary comedian, musician and actor. Tickets are on sale at www. ticketmaster.co.nz.
Madagascar – the Musical
Based on the smash-hit DreamWorks animated motion picture, Madagascar The Musical follows all your favourite cracka-lackin’ friends as they escape from their home in
New York’s Central Park Zoo.
Along the way they find themselves on an unexpected journey to the madcap world of King Julien’s Madagascar.
Alex the lion is the king of the urban jungle, the main attraction at New York’s Central Park Zoo.
He and his best friends –Marty the zebra, Melman the giraffe and Gloria the hippo – have spent their whole lives in blissful captivity before an admiring public and with regular meals provided for them.
When a group of penguins decide they’ve had enough of the zoo and decide to escape, Marty lets his curiosity of the outside world get the better of him and makes his escape too.
Join Alex the Lion, Marty the Zebra, Melman the Giraffe, Gloria the hip hip Hippo and those hilarious, plotting pen
guins as they bound onto the stage in the musical adventure of a lifetime.
The international stage set, props and costumes from Madagascar The Musical’s world tour are in New Zealand with an all-star local cast of professional actors, bringing the excitement of the movie to the stage.
Filled with outlandish characters, adventure galore and an upbeat score, you’ll have no choice but to ‘Move It, Move It!’.
The show runs for 75 minutes and is appropriate for children and adults alike.
NEW APPOINTMENTS
Andrea Scatchard
Deloitte is pleased to announce the recent appointment of Andrea Scatchard as a Tax Partner. She has particular expertise in GST and employment tax.
Andrea joined Deloitte in 1995 and has been based in the Bay of Plenty since early 2005 – embracing flexible work options well before it was a common practice in New Zealand workplaces.
Patricia Buchanan
March for multiple shows over 3 days (www. eventfinda.co.nz).
Premier conference venue
Trustpower Baypark is Tauranga’s Premier Venue for conferences, meetings, entertainment and exhibitions. Offering a complete package in one convenient location that features state of the art meeting rooms, in-house catering, audio visual services, professional conference organiser (PCO) and marketing/promo-
Donaldson Brown are excited to announce that Patricia Buchanan has joined the Bay of Plenty team as a Risk Adviser.
unlock the potential of your property.
Andrea’s promotion to Partner is a recognition of both her skillset and the growing demand from businesses in Tauranga and surrounding areas. 1 April 2021 will see the implementation of a number of tax changes, including the increase in the top personal tax rate and corresponding raise of the default FBT rate. If your organisation needs assistance in navigating these changes then Andrea is your go-to expert in the region.
Patricia brings with her 15 years insurance experience, a passion for doing the right thing and a proven track record of delivering great customers experiences. These skills align completely with Donaldson Brown’s commitment to total transparency and customer focused solutions. Patricia is looking forward to providing business owners with unconflicted advice on the risks they face, rather than simply selling more insurance.
The doubleedged sword of subcontracting
With the boom in construction we as a nation have been experiencing during the last few years we have seen a proliferation of tradespeople who have taken the opportunity to jump from employment to self employment.
TCREDIT CONTROL
> BY NICK KERR
Nick Kerr is Area Manager BOP for EC Credit Control NZ Ltd.
He is also a director of International Private Investigations Ltd.
Nick can be reached at nick.kerr@eccreditcontrol.co.nz
his, however, is often a double-edged sword.
The “freedom” to choose your own hours , take advantage of tax benefits and make a name for yourself on your own rather than as part of a team can be a powerful motivation. But like any opportunity, caution is needed.
The way that the majority of self-employed tradespeople get a foothold in an already crowded market is to subcontract to larger “same-trade” companies and hope that their work will be noticed by the end clients and be offered the work directly after time or that their marketing efforts will pay
off with client enquiries.
Firstly, in my experience there are two types of employed tradespeople that go out on their own, those who understand the rigours and true cost implications of owning a business, and those that do not.
Many a time have I heard an employed tradesperson lamenting to friends over a cold beverage how their “Boss” is charging them out at $xxx per hour and they are only being paid half that and doing all the work.
That may seem unfair to the casual observer until you understand the costs of owning a business rather than work-
ing in one. Let’s just look at the basics of setting up a best practice business in the construction trades.
Set-Up: In my experience to set up any business you will need at least $5,000 just to get into it, with companies office set up costs, legal fees, basic website, terms of trade, H&S system, basic invoicing and CRM software, logo design, uniforms, business cards and vehicle signwriting.
Running: Any small business working in the trades needs to have comprehensive insurance that will cost around $200-400 per month, mobile phone plan $50-$150
In my experience to set up any business you will need at least $5,000 just to get into it, with companies office set up costs, legal fees, basic website, terms of trade, H&S system, basic invoicing and CRM software, logo design, uniforms, business cards and vehicle signwriting.”
per month, accountancy and bookkeeping services $120$400 per month, plus vehicle running costs $200-$500 per month – and that is with no active marketing.
If you spread the set up costs over the first year of business this gives an initial running cost of around $1570 per month, meaning that the new business will have to generate $7834 per month in gross profit just to break even.
In my experience, if the subcontractor does not have a considerable cash reserve all it can take is one client not to pay, a dispute that goes on for months, or some other unexpected cost for the whole situation to become untenable and the subcontractor has no choice but to once again become an employee, often times on less money than they were being paid when they left. There are many success
2degrees comes of age with major network expansion
One billion dollars. That’s the amount that 2degrees has invested in building its network since the telco first opened its doors to Kiwis in 2009.
What started as simple idea to disrupt the telco market and fight for fair for Kiwis has continued for well over a decade of building, innovating, and challenging the market.
Its services now cover 98.5% of the places Kiwi’s live and work, and received the award for New Zealand’s Best Network Experience from Tutela in 2019.
2degrees Chief Technology Officer Martin Sharrock says that because most Kiwis have fond memories of 2degrees as a start-up, most New Zealanders are unaware of how the 2degrees network has grown.
“The innovations 2degrees brought to the telecommunications market when we launched in 2009 broke up the Spark/Vodafone duopoly, bringing an end to unfair pricing for Kiwis. But for many years we used national roaming to provide a national network experience – that’s no longer the case,” he says.
In 2020 alone 2degrees switched on 341 cell sites – 33 new sites, 167 4G upgrades and 141 Rural Connectivity Group (RCG) sites taking its total sites to 1,669.
“Today our value to New Zealand’s economy is estimated at $3.4b and we have more than 1.6 million customers across pay monthly, prepay, broadband and business.
“We’re also the fastest growing broadband provider in the country, with 120,000 broadband customers,” says Martin.
While 2degrees has transformed and grown its network steadily over a decade, Martin says that the most significant innovations have happened in the last 12-months – and there’s a lot more still to come.
One of these moments of significance is the infrastructure sharing agreement 2degrees penned last year that will ensure all of its customers receive what Martin calls “the full 2degrees experience”, targeting the small pockets, mainly on regional roads or in rural areas.
“In 2020 we started enabling a new technology called Multi Operator Radio Access Network (MoRAN). Basically, it allows us to use 2degrees spectrum on another operator’s cell sites, which is like adding another motorway just for 2degrees customers in those areas.
“When MoRAN is complete
stories of tradespeople leaving employment to go it alone and it all working out great, but you will find that these are people that had a good understanding of all the facets of self-employment not just the allure of more money. I have seen too many good tradespeople become bad debtors, not by intention, but lack of preparation and a clear understanding of the above. Just a thought.
later this year, we won’t have to roam on other operators’ sites at all anymore and 2degrees 4G will cover 98% of the New Zealand’s population,” he says. The telco also recently confirmed its plans to build a 5G network, following the government’s decision to allocate early access 3.5GHz spectrum to the company.
“We’re excited about 5G and planning is well underway. We’re aiming to have our first sites live by the end of the year, but while we do so, for the vast majority of New Zealanders 4G and the ongoing improvements to our network will meet their needs. ”
“It’s an exciting time for us at 2degrees and there’s lots more to do,” says Martin. “Like we have for the last 11 years, we’ll keep building out and improving our network in 2021 and beyond.”
Inducting new employees the right way
The beginning of the year is often a time when we see the most movement in the employment market as people have generally taken some time to consider the year ahead and perhaps decide on a new approach to their career.
Having dealt with thousands of recruitment processes over the years, generally once the employment agreement is signed, my role with the company as a recruiter has finished.
However, recruiting a great candidate is only part of the process. The induction and on-boarding process for new employees is also an imperative part of what happens, but often it is glossed over or rushed. Creating positive first impressions and generating genuine engagement from your new employees will pave the way to a successful employee employer partnership.
Starting a new role within a new organisation is a daunting process. There are new managers, colleagues, systems and processes, values and cultures to get to know and learn. As an employer you are also wanting your new employee to be as productive as possible as quickly as possible.
Sink or swim
So often I hear of sink or swim type of scenarios with new employees, which can make those first few weeks incredibly difficult for a new recruit. Is that really what we want? We need to provide an
induction and on-boarding programme that adds to the excitement of a new role and creates passion, enthusiasm and engagement. This can even be generated from before the employee starts on day one.
One of the first areas you could commence with as part
Computers, log-ins, email addresses, phones, security passes, anything they need to do their job, should be organised and ready to go.
Impart knowledge
Arrange a tour of the facilities, introductions, health and
Having a clear process for inductions and on-boarding really makes a huge difference and paves the way for a successful partnership.”
of your induction process is contacting employees prior to their start date with any information they may find useful such as relevant organisation information, upcoming projects they may be able to read about, or research, and it may be that there is an opportunity for them to meet some of their colleagues prior to starting. The notice period can be long, so keeping in touch during this period is key.
Another really basic start is to have your new employees’ workspace and technology ready to go.
safety and HR inductions. It can be useful to get staff from different divisions within the organisation to give inductions relevant to their division. It can be a lot of information to absorb all at once, so spreading these out over the course of a week is a good approach. The relationships that your new employee builds in those first few days can be vital, so it’s great if there can be an opportunity for people to welcome and get to know the new employee and vice versa. It’s also a good opportunity to get the team together.
HUMAN RESOURCES
> BY KELLIE HAMLETT
Kellie Hamlett is Director and Recruitment & HR Specialist, Talent ID Recruitment Ltd. She can be contacted on kellie@talentid.co.nz
Get mentoring
In that first week a buddy or mentor system may be relevant – team the new employee up with the high achievers in your organisation as it can be a great way for that person to gain insight into how the business operates. We all know how nerve-wracking a new job can
be until we find our comfort zone.
Adding value and being valued are some of the top drivers for employees. Therefore, communicate your expectations – up to the first three months initially is a great start. Keep it simple. However, make it clear what you want them to achieve within the specified timeframe. It also
sets the benchmark for longer term expectations around
Having a clear process for inductions and on-boarding really makes a huge difference and paves the way for a successful partnership. They will feel welcomed and valued, and quickly have an understanding of the company brand, values, culture and strategy.
KPI’s.
When is it safe to disclose your invention?
When you have an idea for a new invention, it’s only natural you’d want to share it. Discussing your product or process with others can provide valuable feedback and help you work through any issues or concerns. But if you want to turn your idea into a profitable business, it’s essential to consider intellectual property protection before disclosing details.
Implications of disclosure
To secure a patent and/or registered design, the product or process in question must be ‘novel’, i.e. new or not previously known.
Once unprotected information has been made available to the public on a non-confidential basis, however, it is free to be used by anyone and cannot be patented, so disclosing details of your invention could hinder your chances of commercial success.
Common scenarios where this might occur include submitting your design to a competition, crowdfunding for investment, releasing teasers on social media, or discussing it with others online or in-person.
While it is obvious to see how public disclosure can be avoided, in some instances
it may be necessary to share details of your developments with a third party prior to filing a patent or design application.
For instance, when hiring people to assist in developing your prototype such as draughtsperson, engineers, or designers; when working with suppliers, accountants, manufacturers and distributors; and when engaging with potential buyers or investors.
These types of disclosure can also invalidate a subsequent patent or design registration as disclosure of information to anyone (even only a single person) might be deemed a public disclosure if there are no agreed constraints on how that information can subsequently be disseminated.
Registered Patent Attorneys like those at James & Wells are bound by law to keep client information confidential, so it
is safe to disclose your information to them without a written agreement.
Which tools can help?
Confidentiality – or non-disclosure – agreements can be used in situations when it is necessary to disclose details of your invention.
A disclosure in breach of an obligation of confidence will not invalidate a patent or registered design application. Also, you may have a legal remedy against anyone who discloses details of your developments in breach of the confidentiality agreement.
New Zealand law also offers a grace period for public disclosure and/or use allowing an invention to be made public (under certain conditions) provided that a complete patent application is filed within 12 months of disclosure.
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.
However, grace period provisions should not be relied on as a general strategy, particularly in companies seeking to obtain protection in multiple jurisdictions, as not every country offers grace periods and, if they do, the requirements and details can differ.
Disclosure following the filing of a patent application
Even after a patent application has been filed, disclosing your product may limit your future options.
You might continue to make improvements or modifications to your invention and may even discover new
uses that were unforeseen and therefore not covered in the initial patent application. These developments must also be protected by a further patent application before being disclosed.
If you need more time to develop your invention before filing a complete specification or before incurring the costs of overseas applications, it is sometimes possible to extend the deadline by post-dating a patent application by up to six months and forfeiting your original application date.
An alternative to buy more time is to withdraw your application and re-file it at a later date.
However, these options are
only available if there has been no public disclosure, use or sale of your product before the post-dated/new filing date.
What should you do?
The most prudent advice is not to make non-confidential disclosures of your product or process prior to filing a patent or design application, and even once a patent or design application has been filed. However, if commercial realities necessitate public disclosure, use or sale of your product, then options are available. But it is essential that you obtain further legal advice to minimise your risks and maximise your opportunities.
The 2021 Acorn Foundation’s Give Back and Get Back campaign is underway, which highlights the benefits that giving back to the community can provide. Supporters can receive a 33.3% tax credit this year for donations before 31 March.
“Many people like to contribute to their favourite causes at this time of year and receive an immediate tax credit,” says Lori Luke, Acorn Foundation General Manager. At Acorn, generous locals set up endowment funds to support causes in the community that are close to their hearts. The capital in the fund is invested in perpetuity, with a portion of the investment income distributed annually. Our donors support the Western Bay of Plenty in all sorts of ways, like:
n funding scholarships for Outward Bound, Dale Carnegie, tertiary education and international travel; n providing excellence awards for fiction writing, performing arts, creative arts and sports; n honouring family members who have died by supporting causes that would have been meaningful to them; n or by working with the Acorn Foundation to find just the right local cause to support. In the end, people give to the causes that they value most; the 33.3% tax credit just provides a really nice incentive to act before 31 March. For more information on how to give back to the community you love, visit www.acornfoundation.org.nz
First Mortgage Trust wins Best New Zealand Non-Bank of the Year
New Zealand owned First Mortgage Trust is celebrating its 25 year anniversary with the announcement that it has been judged the best New Zealand Non-Bank of the Year.
This award comes on the back of last year’s achievement, when the Trust reported that it had more than $1billion of investor funds under management, a figure which firmly cemented it as the largest non-bank first mortgage provider in New Zealand. CEO Tony Kinzett said that he was delighted with the February announcement from NZ Advisor, giving particular credit for the award to his hard-working team who are based in offices across the country.
“We have had a stellar year of continued growth in investor numbers and quality borrower enquiry, and it seems very fitting to receive silverware in our silver anniversary year,” he said.
“Crossing into the $1 billion category late last year was big news in itself, but to be recognised by our peers with this award is very satisfying, and I have no doubt that
it will give our investors and borrowers further confidence that they are dealing with the best of the best.”
Headquartered in Tauranga, and established in 1996, the company has maintained a resolute focus on its business fundamentals since the outset, with prudent risk
strongholds of New Zealand” Kinzett said.
Chair of First Mortgage Managers (the manager of the Trust), Michael Smith, said that achieving the award and surpassing $1 billion in funds ‘back to back’ marks the Trust as a true success story for Tauranga and the wider region.
Year after year, First Mortgage Trust has gone from strength to strength, both in terms of serving our investors and in meeting the needs and aspirations of borrowers and I’m delighted to see that recognised.” – Tony Kinzett
management and unwavering customer service at its core.
“The Trust has consistently delivered solid better than bank returns based on well-considered commercial, industrial, residential and rural property loans, secured by first mortgages, primarily located in the economic
“The Trust’s growth and recognition stems from the respect we’ve shown for our investors’ trust and confidence. Year after year, First Mortgage Trust has gone from strength to strength, both in terms of serving our investors and in meeting the needs and aspirations of borrowers
and I’m delighted to see that recognised.”
Looking to the future, Kinzett said that First Mortgage Trust aims to keep making good decisions, and to ensure that the organisation is optimally structured to look after its nearly 5000 investors and its nationwide network of advisors and borrowers.
“That means working smarter to ensure our client engagement and business performance are second-to-none. We want our investors and borrowers to continue to stay loyal and to tell our good news story to others”, he said.
Tony Kinzett, CEO,First Mortgage Managers Limited
CONNECTING BUYERS AND SELLERS OF QUALITY BUSINESSES
When is the right time to sell your business? Right now.
At TABAK, we promise to guide you through the sales process with focus, integrity and complete confidentiality.
First on the scene
TABAK Business Sales celebrates its Welcome to 2021 annual gathering with a networking event in Tauranga.
Photos courtesy of Salina Galvan
1 Daryl Bonney,Invisible Office,Kevin Kerr,Tabak,Sandra Bonney,Invisible Office and Steve Read,Young ReadWoudberg
2 Julie Paxie,Tabak, Glenda Warner,Tabak.
6 Tom Beswick,Ingham Mora,Glen Lindsey,YRW 7 PhillipWilkens,Computastyle Design,Tom Elvin,Mackenzie Elvin
3 DeanThompson,Holland Beckett Law,RhondaWisbey,Ingham Mora 4 Mike Rudd,UNO Magazine,MatTomlinson,UNO Magazine 5 Sam Williamson,Tabak.
Marketing through uncertainty
The year ahead is one of hope for many businesses. The initial shock of Covid-19 is behind us and the tantalising prospect of a vaccine that could bring relative normality is on the horizon.
WTHE 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.
hile the future looks brighter, 2021 will still be filled with uncertainty. In addition to the usual winds of change that come with running a business, we all need to be conscious that a community outbreak of Covid-19 could occur at any time in New Zealand.
If that happens, many of us may again struggle to bring customers through our store doors. We may, once again, have to grapple with the logistics of goods and service delivery posed by disruptions to supply chains, limited courier availability and office closedowns.
Agility and gauging the mood of customers will be more important than ever this year, so it’s important to be prepared.
Communication with cus-
tomers will play an important role in your success, as well as the ability to quickly tweak your marketing messages if the need arises.
Have a Plan B
It’s sometimes said that running a business is a bit like chess. You need to think ahead, consider all the permutations and have a plan in mind for every eventuality.
As the spectre of Covid-19 continues to hang over us, this rings truer than ever. We need to have a plan B for all aspects of our operation.
When it comes to marketing, it’s worth giving thought to who we will promote our products or services too if Covid-19 limits our ability to reach our normal clientele.
The tourism operators that
have survived in the Bay of Plenty have found a way to shift their focus from the international market to the domestic. Many hospitality providers moved to a takeaway or delivery model during the New Zealand lockdown last year and this may once again be required.
The way we promote our products and services may also need to change at short notice. If your marketing is focused on the value of face-to-face interaction with friends or the excitement of being part of a large crowd, then it will likely need to pivot for the duration of any Covid-19 lockdown in future.
Read your audience
With anxiety levels high and uncertainty nagging on peo-
Tauranga Audiology independent and locally owned
Tauranga Audiology is locally owned by Audiologist Michael Coddington. We are an independent clinic, which means we are not part of a chain and do not belong to a hearing aid manufacturer.
We recommend from a wide range of choice, often at more reasonable prices.
Frontline staff form an expert team providing prompt excellent service.
Audiologist Paul Daniell was originally from Hamilton, and had experience working in Australia before deciding to move closer to home.
He enjoys working for Tauranga Audiology because he can use his professional expertise without bias, giving his absolute best to every client.
There is a wide range of hearing aids on the market and certainly not all are created equal.
The problem people have in hearing is in background noise, in groups, communicating with family, on the phone and listening to TV.
Modern discrete hearing aids use directional microphones to enhance the voice
you are listening to and cut down competing voices.
Different brands use different digital strategies, such as searching the room for voices, or focusing on the person in front of you. Many can connect wirelessly to TV, or handsfree to cell phones.
A recent development is hearing aids we can program remotely using an app on your cell phone. During lockdown we were able to adjust a clients’ hearing aids while he was in Australia –although we prefer seeing clients in person and enjoy
ple’s minds, authenticity is more important than ever.
Consider any new challenges your target customers are facing and tailor your marketing messages for the year ahead accordingly. If your target customers are likely to be going through a tough time – perhaps financially, or because of worry about their family members’ health – then acknowledge that in your messaging.
Keep it conversational, rather than salesy, and don’t be afraid to share your own challenges too. If your customers
feel like you understand them and you are all in it together, they will find it much easier to relate and your promotions will be much more likely to resonate.
Don’t forget to continually review any ongoing advertising you run to ensure it is placed in the best possible locations and written in language that will resonate with your customers. When times get tough people tend to think local, aiming to support businesses in their immediate area. And if we head into another lockdown,
then online shopping will skyrocket once more.
With this in mind, it’s worth focusing on digital marketing, your online store, and your locally focused marketing efforts, including ads in community newspapers and other promotions designed to engage with your local community.
The uncertainty caused by Covid-19 adds an extra layer of complexity to everything we do.
But with some thought and a bit of extra planning, 2021 can be the successful year we’ve all been hoping for.
their company!
We even have hearing aids that can translate 27 languages, help with health and monitor for falls, adjust differently when are sitting down or walking, or can analyse your listening environment (based on the experience of thousands of users.
What is your priority? Perhaps you just want to hear. We will give you honest advice for your situation, without pressure. Call us today. Experience the difference and improve your lifestyle – phone 07 577 6712.
Michael Coddington – Audiologist
The emancipation of the male car buyer: the evolution of ‘car guy’ to ‘car person’
Musings on luxury and leisure, post annus horribilis
It seems that with the restrictions in overseas travel and holidays we have had to focus on alternative luxury spend items. Car sales, for example, seem to have filled some of that luxury expenditure space. Which has me thinking, buying a car is not what it once was – luxury seems to have replaced utility as new criteria emerge for our bigticket car purchases.
The luxury of car buying was a traditionally macho ritual, like a mating dance where ‘he’ showed what ‘he’ was made of and thereby challenged other males in the herd. And it certainly wasn’t easy for all the ‘hims’, because when it came to cars, not all ‘hims’ were created equal.
Me buying a car, circa 1980
First, get some facts and figures: cc’s and mpg – cubic centimetres and miles per gallon (back then it was perfectly legit to mix up the metrics and imperials, though mpg never really mattered that much, not really).
Any oil drips? Is it blowing smoke? How long will I need to run-it-in?
OK. Check the radiator for leaks! Column-change? Elec-
tric-windows – nice! How much extra for the automatic I wonder?
Now, let’s open the bonnet and get down to business. Oil looks clean, no gasket leaks that I can see? All good. Must be pretty modern – there’s no choke. Compression test? – No way, it drives OK (mate!). Rust – not enough to worry about; My friend owns a garage so the WOF won’t be a problem (and rust is not really a WOF issue anyway).
In my case Dad was a pro and he taught me well; His two best tips: check for carbon (soot) on the back bumper (too much = not good) and, check if the wear on the clutch pedal cover matches the mileage on the odometer – if I have to explain that one, then don’t worry about it.
I’ll take it! Car bought! Manhood acquired/restored –no sweat.
Me buying a car, 2021
What have I become? Oh father please forgive me, for I have sinned: The last three cars I bought, I never looked under the bonnet. Not even once. Oil check, NO. Coolant check, NO. Reset the spark plugs (I’m not sure if they even had spark plugs – sure couldn’t see them), NO.
So what ‘do’ I look for when buying a car now?
It’s ‘the vibe’ I think – and yes I can hear dad now reading this and yelling: “tell him he’s dreamin’.” But really, it is ‘the vibe’, right?
GPS. Hybrid. Electric. Keyless entry. Side airbags. Self-parking. Self-everything. Bluetooth-enabled. Autonomous (no way). Tints, rims, detailing, sport or super sport? Auto was extra, now manual costs more – What’s that about?
LUXURY & LIFESTYLE
> BY ALAN NEBEN
Alan Neben is a Mount Maunganui local and experienced New Zealand publisher. He now mainly rides a bike. alan@bopbusinessnews.co.nz
OK here it comes, the admission: When it comes to car buying, I have become my wife. I look at the size and shape of the key and it excites me.
I look at the texture of the seat upholstery – how will it clean and how will it be in the summer? No longer content with a heater, I now need heated seats.
Are the window tints hip enough? Should I do the badging in matt black or will chrome be ‘in’ again soon?
I know the dope rims are extra but hey, they’re worth every cent. How good is the Bluetooth connectivity? Are there USB ports for the kids in the boot?
I want the flamingo burgundy tropicana sunset colour I’ve seen on the billboard for the Super Sport GT City Motion Eco X, blah, blah, blah! … and, most importantly, what is the cup holder situation: are there four up front? Four in the back? And four in the back back?
I don’t know about you, but I’m pleased I no longer have to park at the top of the hill in case she (yes, guilty, when it wasn’t working it was always “she”) won’t start in the morning and I need a downhill run to jump-start her. And I’m thankful I no longer have to do an all-points check before a longish journey – battery level, oil level, coolant level, map book. etc … I revel in not needing to check the oil whenever I gas up. No longer even a slight pang of guilt at my self-indulgent recklessness. How nice to have the engine start every morning, irrespective of the frost level on the lawn.
I admit it, buying a car now is no longer the ‘manly’ exercise it once was. The M’s and the F’s now have the same criteria in our house, and I’m good with that.
Though, I still have to check the tyre pressures – I guess that’s still part of my masculinity.
