East Tamaki - a great place to do business I S S U E 5 2 0 1 3 U P D AT I N G A N D I N F O R M I N G T H E G R E AT E R E A S T TA M A K I B U S I N E S S C O M M U N I T Y
In this issue 02 From the Chair
03 Buying
and selling a business
04 Technology: a whole new world 08 Transport / Roading update 10 Recent events photos 12 Crime prevention
13 Wastewater tariff changes
14 Business growth
16 Youth
Unemployment
18 Wero Sporting Complex 20 Property update
Upcoming events 9 July, 2013 Property Owners Forum: Building Policy Changes 6 August, 2013 Management Bites: Performance Reviews 14 August, 2013 Business Owners Forum 28 August, 2013 Breakfast: Watercare 3 September, 2013 Management Bites: Teams and Communication 10 September, 2013 Business Showcase: Waipuna Conference Suites Highbrook 25 September, 2013 Breakfast
LIGHTING UP ECOLight hosted the June Business Showcase for GETBA members at their Neilpark Drive warehouse, mixing drinks and nibbles with an explanation of how LEDs can bring businesses some serious financial and environmental savings. The first commercially available incandescent light bulb lasted just 13 and a half hours. Fast forward 133 years and the latest LED bulbs use just a fraction of the power and can last up to 20 years. These technological advances bring with them some serious savings – both financially and environmentally – and ECOLight is helping businesses in East Tamaki and beyond to take advantage of those benefits.
four years ago when he was CEO of the newly formed Tonga Power and he was approached to take part in a trial, swapping out ordinary sodium street lights for LEDs. The results were fantastic – in just the first 12 months McGill says they were looking at savings of 35,000L of diesel from just 100 LED street lights. He moved to ECOLight just over a year ago.
If the whole country converted to LEDs we are looking at a 15% energy saving and that is equivalent to one Tiwai Point.
A division of TransNet New Zealand Ltd, ECOLight has been operating in the LED sphere for about six years and has 55 staff working in warehouses in East Tamaki, Wellington, Perth and Tonga, as well as five staff on the ground in China.
General Manager Peter McGill first came into contact with the company about
The LED lights themselves use a far lower wattage – you can replace a 500W metal halide light with a 140W LED – which in itself saves money and extra savings come from the fact that LEDs don’t produce as much heat. An incandescent bulb converts just 5 per cent of the energy it uses into visible light. The rest is converted into heat. (continued on page 2…)
I S S U E 5 2 0 1 3 N E W S LE TTE R OF TH E G RE ATE R E AS T TAM AK I BU S IN E S S AS S OCI AT I O N I N C .
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LIGHTING UP
From the Chair Recent news of an increase in manufacturing activity is being touted by government and business lobby groups alike as a sign that manufacturing is on the rise. Christchurch has certainly added momentum, as well as Auckland, while many of our smaller cities and towns continue to struggle. Creating industry outside of Auckland and Christchurch is a challenge for government and one which is not going to go away. On the global front, the US economy is improving steadily and so is their housing market, which is good news for New Zealand, as is the recent drop in the US/NZ dollar exchange rate, something we hope will continue. Much of the focus in Auckland has been around the draft Unitary Plan, as this will set the scene for business and residential growth for years to come. At GETBA, we have been engaged with the Auckland Council to ensure our members’ interests are being heard. Our submission can be found on the GETBA website. Our website is also the best place to find a number of other updates. For instance, the transport initiative, which is aimed at encouraging people to use alternative means of transport in their commute, and progress on infrastructure issues and developments. We have been working hard on the GETBA Strategic Plan, which will determine our direction for the next three to five years, and this has involved meeting with members to hear your views on what GETBA should provide to the business community. We will be reporting back to you on this shortly.
(…continuing from page 1) “We work with a number of consultancies that look at the whole picture, including lighting, to create a total energy plan for a business,” McGill says. “It’s our understanding that with businesses that use cooling, every watt we save in LED lighting saves an equivalent wattage in air conditioning because of the heat normally generated by traditional lighting.” The key advantage of LEDs, however, comes from the controls you can put in place. LEDs are dimmable and don’t have to warm up to their full brightness, which means they’re ideal for implementing “daylight harvesting”. Put simply, the strategy involves using natural light wherever possible and having the lights come on only when they’re needed. “Natural light is the cheapest form of lighting available so it makes sense to take advantage of it,” McGill explains. “We have incorporated daylight harvesting into our own lighting controls at our East Tamaki warehouse and we’re approaching energy savings of 80 per cent. That has a big impact on the bottom line.” As another example McGill points out that security lights could be operated at 40 per cent through the night and ramped up to 100 per cent when the sensors detect certain conditions. LED technology itself is not brand new, but McGill says it’s now at the point where the extra money spent on buying and LEDs can be regained through energy savings. McGill says for a large commercial environment where the lights are on 24 hours a day, the payback can be less than two years, while for smaller businesses that use lighting for eight to 10 hours a day, five days a week, the payback is more like three to five years. In fact, prices are almost low enough to make it worthwhile for residential spaces as well. “A few years ago LED lamps cost $60 each, now we’re seeing LED lamps close to $20 each, plus they last up to 20 years. As the cost falls even further, the pace of change will increase dramatically.” It’s estimated that LEDs will have a 65 per cent penetration into the world’s commercial lighting by the year 2020. Environmentally, because LED lights use electronic chips they don’t contain the “nasties” – including lead and mercury – that traditional lights do, so they’re easily disposed of. To get an idea of the effect this could have, big operations have to replace their lights every two to three years, and all of the old lights have to be taken away by special waste companies. “Lighting causes about 70 per cent of the amount of greenhouse gases that vehicles emit,” McGill says. “If the whole country converted to LEDs we are looking at a 15 per cent energy saving and that is equivalent to one Tiwai Point.” www.ecolight.co.nz
RICHARD POOLE CHAIRMAN, GETBA
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Buying and selling a business There are many reasons to buy a business, but it’s quite a different process to buying… well, almost anything else you can think of. Conbrio managing director Brian Lawrence (left) and Business Owners Forum facilitator, Dr Mike Ashby (right)
Lawrence: Many of the staff will leave because it’s not the same business they signed up for, but the advantage of that is you end up with people in the business who want to be there and are good for the business.
The price
Hard work and skill go a long way towards making a successful business, but at some stage every business owner reaches a turning point – grow or get out. It may seem counter-intuitive but one way of funding growth is to buy another business.
sales, Tony van Camp. The two had several pieces of advice for anyone looking at buying a business.
Lawrence: Work out what the value is for you. Be prepared to walk away and go back to them. Quite often a seller’s expectations are too high and the only way they know that is when it doesn’t sell. Then they may ask you back. Never openly devalue the other person’s business, even if they are asking a ridiculous amount – never say their baby is ugly.
The business
After the settlement
That’s what happened with Conbrio Technology. “We had to decide between downsizing or growing the business in order to have a life outside of it,” managing director Brian Lawrence explains. “The cost of doing new things is high because you need people and equipment, as well as having to find new customers. Acquiring a new business gave us capabilities our competitors didn’t have.”
van Camp: There are a lot of questions you need to ask. What are the future maintainable earnings? A lot of people look at what the business has done in the past few years and assume that’s what it will do going forward. It’s a good indicator but you need to look at a lot more factors to work out what it’s going to do in one, two or three years. What is its potential for growth in its industry? How would it fare in a recession?
Lawrence: Meet all the customers of the new business as soon as you can. In previous experiences I left that part until later so that I could get the business going, and I lost customers because they were personally involved in the business. Don’t change too much too soon. Give the previous owner credit; they knew a certain amount about what they were doing.
The staff
Lawrence: Don’t give up if the last business acquisition didn’t go well, or didn’t go ahead. You’ll learn more about your own business and the process of buying another one by starting it rather than by not doing it all. It’s like when you’re standing at the top of a cliff looking down at the water below you – sometimes you’ve just got to hold your nose and jump.
It wasn’t just one acquisition. Since then Conbrio has added a security business, an intellectual property business, a wifi hotspot business, a couple of new computer manufacturing companies and a couple of niche software companies to their stable. Which is why Lawrence was on the panel at GETBA’s May Business Owners Forum alongside Bayleys’ manager of company
van Camp: We see a lot of businesses that are hugely reliant on key people. Look at the most valuable staff members. How long have they worked there? Have they been there so long because the owner is a good guy or because they’re paid a lot for doing nothing?
One final tip
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TECHNOLOGY
A WHOLE NEW WORLD Technology is changing the way we do business – from how we find and reach our customers to the systems within our businesses. Perhaps that’s why GETBA’s Business Owners Forum on technology had attendees talking long after the presenters had finished. The panel for the event was made up of TUANZ (Telecommunication Users Association of New Zealand) chief executive Paul Brislen, Peacock Bros NZ sales and marketing manager Tony Uren and owner of Snap Printing, Stephen Passmore, each of whom added their experiences of how technology has changed the way they do business. The “cloud” and ultra fast broadband (UFB) were two of hottest topics and prompted a fast and furious Q&A session that benefited from the experience of many of those in the audience, as well as the panel members themselves.
were based in the US, and use video to show off what they can do rather than relying on small digital photos. “UFB could potentially open up a whole new world of connectivity that’s only been touched on in years gone by,” Brislen says. “Most of us are on copper, and the download speed is okay but the upload speed is awful because it’s not designed for that. UFB means we finally have access to what the corporates have always had. That can change your business.”
TUANZ lobbies the telecommunications industry and government for things like better broadband, better access to it and more competition between telcos, something Brislen says is starting to make a difference. “Now it’s a question of what you actually do with the technology you get,” he says. “If it doesn’t make a difference to the business then we’re just giving you access to television, which is a waste of time. This is a golden opportunity for New Zealand businesses.” To illustrate his point, Brislen mentioned a business in Napier that used UFB access to win an international fitout bid before they even had an office. The difference was their ability to have a stable video conference with the potential clients, who
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It’s revolutionised the way we communicate with our [clients]. I can run the entire business from the airport, or Wellington, or at home with the kids.
Paul Brislen, Chief Executive TUANZ
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The one-man band Brislen says that originally TUANZ was spending more than $30,000 a year on the technology they were using to keep the organisation up and running. “We started with a bespoke website,” Brislen explains. “So every time something broke, the developer had to fix it. We were paying $5000 a year to host it and maintain it but it wasn’t doing what I wanted it to do. We were paying more for a CRM [customer relationship management] system that didn’t really work and didn’t really integrate with the rest of what we were doing. “Next year, if all goes to plan, I’ll be spending $500 and it will be the same cost from here on out.” Brislen says TUANZ has gone to the “cloud” for the replacement online tools, many of which are free: Wordpress for website hosting; Zoho for a CRM system; Mailchimp for sending out bulk emails; and Eventbrite for promoting events. “It’s revolutionised the way we communicate with our members. I can run the entire business from the airport, or Wellington, or at home with the kids.”
Heading to the cloud When Peacock Bros started back in 1888 it was an offset printing company and a cloud was something that floated across the sky. Now it provides businesses with labeling and data capture solutions and the “cloud” plays host to a lot of the company’s software and data. Using the cloud means they pay a hosting fee and store a lot of the company’s critical data, accounts, service manuals and legal documents, as well as a lot of the software they use on someone else’s servers. It’s essentially a virtual server and Uren says, as long as they have a decent internet connection, they have access to that information 24 hours a day 7 days a week, no matter where they are in the city, country or world. Despite all its advantages, Uren is quick to point out that he is not relying solely on the
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cloud. A traditional server box is still used for many processes and as a second backup. Brislen also uses the cloud with TUANZ to back up not just data, transactions and customer information, but also their whole operating system. “For a one-man band with few resources it’s perfect because I can access it from every device, if you don’t have anything too complicated then it’s ideal.”
minutes to upload a file, it was about a minute. I don’t have to drive over to Mt Wellington any more and we’re not getting the dropouts when we’re sending large files. Video is going to be a big part of the future and how we use UFB.” Passmore says the company pays about $140 a month instead of the $100 a month they were paying for their previous plan, and they’re experiencing performance of about 90 per cent of what they were promised.
UFB: the early adopter Snap Printing was already looking around for a faster, more reliable alternative to their internet service provider when owner Passmore went along to the GETBA event about UFB in June last year. Their usage had not only increased in volume, the size of the files they were handling had tripled over the past five or six years and they had noticed a significant degradation in their service. “Upload times are very critical for us and we found that files were taking as long as 40 minutes to get to Mt Wellington. It wasn’t unknown for me to drive over with a USB stick to make sure it got there quicker.” Snap signed up in July last year and it was implemented in December. “What a difference it has made. Instead of 40
One technology bite at a time Following on from the success of the Business Owners Forum on technology, GETBA is developing a technology education series. “Technology Bites” is now taking shape and is set to spring into life in the next three months. After consultation with local businesses, we have identified areas that you are particularly interested in learning more about, including: • Cloud services • Online applications • Smart devices • Data storage • Client communications. Each workshop will take place in an interactive environment, with industry experts delivering valuable information on how these various facets of technology can be integrated or better utilized in your business. We are also keen to hear if you have any ideas or suggestions. Please email them through to Troy at project@getba.org.nz
N E W SLE TT E R O F T H E G REATER EAST TAM AKI BUSINESS ASSOCIATION IN C. I S S U E 5 2 0 1 3
Gl bal marketplace, local success Incorporating technology and online strategies into a business can lead to some unexpected developments. For Extreme Global it opened up a completely new revenue stream. Operating in a technology-driven market means the concept of buying big items internationally is not as inconceivable as it once was. It has also created new opportunities for businesses, East Tamaki’s Extreme Global included.
Extreme Global quickly realised that customers interested in shipping vehicles from overseas were comfortable with buying and selling online. As a result, the digital side of things is very much part of the company’s business strategy.
Extreme Global is an international freight forwarding company. Traditionally this has meant they arrange for goods to be collected, packed, moved, unloaded, unpacked and delivered to customers throughout New Zealand, and this process still accounts for 80 per cent of the company’s revenue.
“The old behaviour of going down the road and speaking to a dealer is just about gone,” owner Phil Mitchell says. “People are much more worldly than that. They compare prices and shop around online before they make any purchase decisions. Because our customers are spread all over New Zealand, we feel that digital is the place to get in touch.”
Now, however, it makes up just one part of the business. The other 20 per cent comes from shipping vehicles – from classic cars to boats, caravans, diggers and tractors – a revenue stream that didn’t even exist when the business began in 2006.
The strategy has also helped the company realise that reaching and supporting people through their planning phase makes them more likely to become a customer, something that online tools can help them achieve.
Mitchell says that the business receives the majority of its business leads via its website, however, he is now beginning to understand that it’s not just about people coming to you, you also have to seek out your customer. LinkedIn has been a powerful tool for Extreme Global. Mitchell uses it to connect with industry contacts and people within his target market, as well as to understand more about his customers, such as their profession and interest groups. Knowledge that could come in particularly handy in the future: Mitchell says the company might look to create niche online communities or forums for car enthusiasts. “When people are interested in cars, the level of information they research and the topics they discuss online are so detailed,” Mitchell says. “Social media is forming people’s opinions much more strongly because it’s reaching so many people. We want to be a part of that.” www.extremeglobal.co.nz
The old behaviour of going down the road and speaking to a dealer is just about gone. People are much more worldly than that.
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TRANSPORT
Big changes for East Tamaki’s bus network The latest round of public consultation offers the East Tamaki business community the opportunity to shape the future of its public transport system. Auckland Transport (AT) is in the process of restructuring the public transport network, and the first area to see these changes will be South Auckland. The proposed new Southern Network will see a reduction and changes to routes and changes to frequency. Public consultation on the proposed new routes and services will take place between June 19 and August 2 and GETBA is seeking feedback from businesses and employees within East Tamaki, especially when it comes to the proposed routes servicing their needs. GETBA has begun the process with an employer survey and will visit businesses and undertake an employee survey in the coming weeks. We want to find out how many employees use the current services, how many would be affected by the proposed new services, and how many would use public transport if the system was more efficient and walking distances to destinations were minimised. We will also be exploring whether there’s a demand for an alternative feeder service that could ferry employees to and from the main transportation hubs close to East Tamaki. These services could benefit anyone disadvantaged by the proposed
network changes and could provide an alternative for shift workers who start and/or finish outside the public transport operation hours. This is a critical time for East Tamaki as a business community – we have the opportunity to shape the future of our public transport services in order to ensure they best suit our needs as employers and employees.
The current public transport system struggles to adequately service our business precinct – a recent survey identified only 2 per cent of East Tamaki employees as using public transport to commute to work. Now is the time to change this statistic and start providing better transport options for our employees, which will result in better staff retention for employers, however, we will only have a chance to be heard if we speak as a collective voice. Once we have consulted with businesses and employees and collected all the relevant data, GETBA will compile a comprehensive report with any suggested changes to the proposed Southern Network. If applicable we will also create a business case for an alternative feeder service for the East Tamaki business community. We will then submit this information to AT, in order to ensure the interests of East Tamaki businesses are represented. To see maps of the new proposed routes go to getba.org.nz/advocacy/ transport-roading/ To speak with someone about the proposed changes, please contact Troy on 09 273 6274, or email commute@getba.org.nz.
Transpower Update Transpower advise that eastbound traffic along Ti Rakau Drive will be restricted to a single lane between Edgewater Drive and Ti Rakau Bridge until October, and traffic management will be in place around their worksites until the end of the year. We have received several calls from businesses in Burswood who are experiencing a reduction in custom, which they attribute to Transpower’s radio advertising campaign asking people to avoid Ti Rakau Drive. In response GETBA has negotiated with Transpower to advertise the following message in the local newspapers.
Road works on Ti Rakau Drive may be inconvenient, but the doors are still open – we appreciate your custom. Transpower thanks local businesses for their patience during underground cable installation on Ti Rakau Drive.
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EC 21613
BURSWOOD is OPEN for business
EAST-WEST LINK OPTIONS OFFERED It has been a very long process but Auckland Transport has arrived at four options to enable easier freight movements between Onehunga in the West and East Tamaki in the East. The purpose of the Link is to address the high traffic and freight movements on congested local roads in the large commercial industrial area from Onehunga and Mangere / Airport / MetroPort in the West across Penrose and Mt Wellington to East Tamaki in the East, areas which have some of the highest freight volumes in the country.
Option 1 Redistribute traffic away from the South Eastern Arterial Intersection (SEART). This includes a new road between the Highbrook interchange and Great South Road along with some upgrades to existing roads to the south of the harbour.
Option 2 Redistribute traffic away from SEART plus improved connections to the land based Metro Port.
Option 3 Focus on connecting the ‘industrial belt’ which would see a new road constructed along the northern edge of the Mangere inlet, over the Tamaki Estuary and linking to Highbrook.
Option 4 Decongest surrounding arterials and focus east west traffic in a high capacity corridor on the southern side of the inlet from Mangere/SH20 to Highbrook and Pakuranga. Over July and August, Auckland Transport will work with key stakeholders to determine the preferred outcome which will be finalised by November, and a business case presented to the Auckland Transport Board in December. There will be public consultation on the development of the preferred option during 2014, and construction, subject to funding, should start in 2015/2016. GETBA will involve local businesses in the initial stakeholder consultation process. If you would like to have input into GETBA’s feedback on the options please email Jane Tongatule at gm@getba.org.nz or Ph 273 6274 For more information and links to maps relating to the four options go to www.getba.org.nz
Progress on planned roading improvements for East Tamaki SMALES/ALLENS ROAD WIDENING We have been advised that the latest property report shows 86 per cent of property needed for this development has been purchased. Funding for the project’s design has been secured for the 2013/14 year and this is in the draft programme awaiting approval. Construction is set for 2016/17 and 2017/18 in the current version of the Long Term Plan. ORMISTON ROAD INTERSECTION UPGRADE The property purchase for the project is nearing completion; there is one appeal to the designation outstanding but a resolution is expected soon. Funding for the design of this project in the 2013/14 year has been secured. Construction is programmed for the 2015/16 and 2016/17 years in the current version of the Long Term Plan.
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PROPERTY OWNERS FORUM, DRAFT UNITARY PLAN
BUSINESS OWNERS FORUM, TECHNOLOGY Photographs provided by Mike Farrelly, Farrelly Photos, Ph 09 274 6868, photos@farrelly.co.nz, www.farrelly.co.nz
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ECOLIGHT SHOWCASE
BUSINESS OWNERS FORUM, BUYING AND SELLING A BUSINESS
I S S U E 5 2 0 1 3 N E W S LE TTE R OF TH E G RE ATE R E AS T TAM AK I BU S IN E S S AS S OCIAT I O N I N C .
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CRIME PREVENTION
Know Your Neighbours Information is an important tool when it comes to preventing crime. Neighbourhood Support Groups in residential communities have been one of the most successful Police partnerships. While we understand businesses have different needs and that the work environment doesn’t allow the system to work in quite the same way, the benefits of knowing your neighbour and sharing information is still one of the most effective weapons against crime.
opportunities in the same area, but if everybody else in the street or local area are immediately alerted by email or SMS, this will reduce those opportunities significantly. Lack of opportunity is the best crime prevention tool. With that in mind, GETBA have begun strengthening their existing information sharing system for East Tamaki businesses by creating “neighbourhood” contact lists within areas where crimes have become a problem.
Immediate information sharing by email or SMS
In addition Police will work closely with GETBA to offer crime prevention advice to the businesses affected and visit their immediate neighbours where appropriate, to help prevent further burglaries or crime in that neighbourhood.
If one of your neighbours is subject to an unwelcome opportunist thief, it is very likely that they will continue to look for more
Contact Coralee Carr at exec@getba.org.nz
Crime prevention in action Revisiting the Burswood precinct three years after the beginning of a crime prevention programme shows that very positive changes have been made. Beca’s Claire Green explains. June 2013 marks the conclusion of a three-year Ministry of Justice funded crime prevention programme focused on building resilience in the mixed retail commercial Burswood business area.
precinct have an increased awareness of the benefits of CPTED and there have also been some positive physical changes.
In addition to crime prevention resources, the programme included a Crime Prevention Through Environmental Design (CPTED) analysis of the area. CPTED is a discipline focused on removing the opportunity for criminal behavior through thoughtful application of design guidelines within the built environment.
Three of the significant successes are:
In June 2011 Beca did a CPTED site assessment, making recommendations for individual businesses as well as to enhance the public space, and it’s clear when revisiting the precinct that the CPTED education has largely been a success. Businesses within the
• Removal of 99 per cent of graffiti in the precinct through agreements with Manukau Beautification Trust.
• Approval of funding from the Howick Local Board to implement Burswood Business Area Enhancements; • Improvements to Chinatown led by the new owners, particularly when it comes to site tidiness and security;
Burswood businesses also made some improvements that contribute to creating a safer environment. Two examples are:
Fruit World has removed their enclosed awning built over the footpath. This has increased pedestrian safety by providing a designated place for pedestrians to walk round the car park edge and restricted entry and exit to one point. Sightlines into the corner of the group of shops are now clear reducing the chance of a hidden exit after shoplifting.
Repaving a back of house area off Torrens Road which had become overgrown and contributed to the uncared for appearance of the area. The new paving defines the ownership boundary, clearly outlining where the responsibility for keeping the area tidy lies.
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WASTEWATER TARIFF TO BE PHASED IN Businesses will have to choose one of four pricing plans as part of a new standardised wastewater tariff for businesses. Watercare will phase the tariff in over the next three years, something GETBA lobbied hard for in order to prevent any businesses being severely impacted by the changes. Watercare’s new non-domestic wastewater tariff will come into effect on July 1 next year, replacing the 44 different legacy council charging regimes with a standardised region-wide structure. “It’s an issue of fairness,” Watercare’s board chairman Ross Keegan says. “At the moment, the amount you pay depends on where your business located.” This means that the wastewater charges for some businesses don’t reflect the service they’re receiving while other similar businesses are being disadvantaged because they’re based in other parts of Auckland. Standardising the wastewater tariff for the 22,000 non-domestic customers in the Auckland region will not generate any additional revenue for Watercare, but it will mean cost increases for some customers and significant changes for some organisations with the volumetric charge incentivising water conservation. While the start date for the new tariff is July 1 this year, there will be no change to the existing tariff structure for the first year. The new tariff will then be phased in on a
one-third per annum basis during years two and three (1 July 2013 to 30 June 2016) until it’s fully implemented on 1 July 2016. The tariff offers a choice of four pricing plans – low, medium or high user, and an industry plan – presented through a threemonth consultation process (see table below). During that time Watercare will help businesses identify the tariff that best suits them and assist customers in finding ways to reduce their water usage. They will also continue to support businesses who have a higher than industry average percentage of water not being returned as waste.
GETBA recently met with Watercare to ensure we had a full understanding of the changes, including how they, and the accompanying trade waste bylaw review, will impact on trade waste customers. The review is looking at Watercare and Auckland Council’s proposal to replace Auckland’s four legacy trade waste bylaws with a single, region-wide one. In our submission, GETBA also lobbied for the removal of the business differential and Watercare says it intends to advocate Auckland Council to reduce the differential over time, as is being done with land rates. GETBA will continue to monitor this. Go to Watercare’s website for the new pricing plans and questions and answers: http://www.watercare.co.nz/ common-content/billing-and-payment/ water-and-wastewater-charges/Pages/ default.aspx
Pricing Plan
Annual fixed charge (per water meter)
Volumetric charge (per kL)
Suited to approximate annual wastewater volume
Low user plan
$197
$4.44
less than 1,320kL
Moderate user plan
$500
$4.21
1,320kL up to 10,000kL
High user plan
$7,000
$3.56
10,000kL up to 88,310kL
Industry plan
$75,000
$2.79
88,310kL or more
We are arranging for Watercare to speak at GETBA’s Breakfast event on August 28, once the decision on the trade waste bylaw review is made.
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Tapping into business growth Introducing a Crown agency and a change in focus when it comes to Research & Development grants. ATEED R&D specialist Paul Robinson explains. On 1 February 2013, the part of the Business Investment group that administers the Ministry of Business, Innovation and Employment’s (previously Ministry of Science and Innovation) business R&D investment programme became part of a new Crown agency – Callaghan Innovation. This new entity aims to better connect New Zealand firms with science and technology in order to drive the innovation and commercialisation of products and services and economic success. This means that all schemes, Futureintech and the Global Expert have transferred to Callaghan Innovation. As part of Budget 2013, the Government has announced changes to the business R&D grants schemes that Callaghan Innovation administrates.
What other changes are taking place to business R&D grants in the 2013 Budget? The Government is also investing $31.3 million over four years to provide repayable funding for start-ups and work with them to become investment-ready. Funding will be matched by private sector incubator funding and expertise. Further details of how start-ups can access grants as well as how this initiative will integrate with the current NZTE business incubator programme, are being finalised. Find out more about these changes and how to access R&D funding and business growth advice at ATEED’s R&D seminar (see right) this month. www.businessaucklandnz.com
UNLOCK THE PROFIT POTENTIAL OF YOUR BUSINESS Hear real life stories of how ATEED has helped businesses grow and how they can help you too. Join ATEED at a free seminar that will show you exactly how to access R&D funding and business growth advice. Tuesday 16 July 2013 3.30-5pm Level 1, Celsius Gastrobar, Cnr Ormiston Road and Te Irirangi Drive, Flat Bush, Manukau Register by emailing Anthea at anthea.holmes@aucklandnz.com
Contact Paul Robinson at paul.robinson@aucklandnz.com or Ph 09 354 0091
There will be three new policies for business R&D grants: 1. R&D Growth Grants A three-year grant programme replaces the Technology Development Grant and is targeted at substantial R&D performers. Businesses with a minimum of $300,000 of R&D spending in New Zealand and R&D spending of at least 1.5 per cent of revenue over the past two years (previously three years) will be eligible. 2. R&D Project Grants Project grants replace Project Funding, Capability Grants and Technology Transfer Vouchers and are targeted at firms with smaller R&D programmes as well as those that are new to R&D. Project grants will typically provide 30 to 50 per cent public co-funding. 3. R&D Student Grants Largely a renaming of the student internships programme, student grants are being retained and will provide support for undergraduate and post graduate students.
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R&D at work Support and advice around R&D from ATEED has helped LuxR Lighting turn a great idea into a reality. The East Tamaki-based company’s energy efficient LED lighting products are used in commercial, residential and outdoor projects and when they had an idea that had the potential to change the face of LED lighting, they turned to ATEED for support. The agency’s initial advice helped LuxR access funding for an international intellectual property trademark search from the Ministry of Business, Innovation and Employment. It was a move that also helped the company avoid intellectual property issues in some of their potential export markets. A subsequent R&D grant the company received through working with ATEED also provided crucial assistance as the company continued to grow. ATEED’s manager business growth (south), Yvette Hellyer, says LuxR Lighting is a great example of an innovative high-tech company taking advantage of ATEED’s free or low-cost programmes. “Smart companies take on board advice and leverage R&D funding sources available from central government. ATEED can help them understand and access those resources.” Hellyer adds that the R&D grants area aimed at increasing the capability of businesses across the Auckland region and, by extension, driving export-led economic growth. LuxR Lighting’s Ross Peden agrees. “Thanks to the R&D funding and business advisers at ATEED South’s office, we have been able to develop world-leading technology and innovative new products.”
N E WS LE TT E R O F T H E GREATER EAST TAM AKI BUSINESS ASS OCIATION IN C. I S S U E 5 2 0 1 3
VOX POPS
MANAGEMENT BITES We asked GETBA members what they think of our popular Management Bites series of practical “how to” workshops focused on managing staff, presented in partnership with Elephant HR and Training. Mike Read GENERAL MANAGER, AUSTCO
Taking the first step Finding that balance between working on the business and in it is a constant battle but asking for help can be the first step towards getting the best out of yourself and your business. Dave Wylie explains. The most common problem faced by SMEs is being busy just doing what is necessary to operate day by day. Initially that’s fine because that’s what brings in the money, unfortunately time tends to get away from us all and we end up with lots of ideas that we never get around to implementing. A quote from Albert Einstein expresses the dilemma perfectly: “Doing the same thing and expecting a different result is the definition of insanity.” Thinking time is critical for business owners and managers. Not only do we need time to think but we need someone to challenge our ideas, support our judgments and to bring out the best in us. Having a coach, mentor, confidante – call it what you will – is not a sign of weakness. It is a way for you to get the best out of your team by utilising the expertise of an experienced manager to provide an outside perspective that is particularly helpful in developing a strategic and tactical approach.
In my role as General Manager, I also have sole Human Resources responsibility for the company. The Management Bites series is delivered in bite-sized chunks in the early morning, which is easy to fit into my schedule. I find them well priced and I now have an HR reference manual on key HR issues. Lisa [the facilitator] is great; she knows her stuff and the interaction and questions from other participants gives relevancy to the topic under discussion. Regan Shirley PRODUCTION MANAGER, ROLLFORMING SERVICES LTD
I recently attended Managing Poor Performance and Employment Agreements and have found them to be a very useful tool in the workplace. I found the presenter very knowledgeable in her field, she’s able to answer questions on the spot, and it is a nice relaxed atmosphere. I will be attending these Management Bites seminars long term as I feel this will help me develop further in my management role. Ann Clarke OFFICE MANAGER, A TOUCH OF ITALY
As one half of a husband and wife team that owns a small business, I am responsible for all things HR. You can’t be good at everything so it’s really useful to gain the extra knowledge and keep up to date with changes in employment legislation. It’s also great to know that there is more help available if we need it.
Every business and every business owner is unique, able to call on different circumstances, experiences, skills, energy and resources. For many, taking that first step and asking for help is the biggest challenge, but do it now anyway because the rewards can be dramatic. Some of the many advantages that we have had the satisfaction of being involved in over eight and a half years include: • Catching a thief and recovering a substantial amount of money; • A 44 per cent increase in annual revenues; • Changing a management style from top down to bottom up and setting the business owner “free”; • Providing a 2840 per cent annual return on 12 months’ business development investment. You will get the best out of your business by getting the best out of yourself. Dave Wylie, Experience on Tap, registered provider NZTE/ATEED Capability Development Voucher Scheme. dave.wylie@experienceontap.co.nz
Maurice Hinton DIRECTOR, COMPASS BUILDING CONSULTANTS LTD
We have attended five Management Bite workshops and find them extremely valuable from a number of perspectives – from discovering what we don’t know or do, to how to do it better. The short sharp sessions make you question if you are doing it right and if not then shows you where to get assistance. The off-shoot is the opportunity to network with other similar business owners and managers who are willing to share their experiences. This factor alone cannot be underestimated. I would encourage everyone to attend simply as a means of taking stock and auditing your own practices and performance.
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BREAKING THE CYCLE A high youth unemployment rate costs the community more than what it pays out in benefits. Education and training is critical in bringing it down and the business community also has a part to play.
The cheapest solution is to do something. Much is made of how much this group costs the country in the benefits they receive, but there is also a great personal cost for those unable to support themselves or their families. Dr Middleton points to related statistics around housing and health, as well as the education possibilities for their own children.
Despite the fact that this generation of young people is arguably more educated than ever before, global youth unemployment rates have continued to rise. Altogether, it’s estimated that almost a quarter of the world’s youth population (aged between 15 and 24) is not participating in the labour market, most of them are in developing countries, but around 26 million of young people in the OECD (Organisation for Economic Co-operation and Development) fall into the NEET (not in education, employment or training) category.
“The cheapest solution is to do something.” Dr Middleton adds that the business community also has a big role to play by offering students internships and cadetships so they can experience working in a real workplace, something he says can’t be simulated. “It’s important that as many people who are unemployed as possible look to education,” Dr Middleton explains. “MIT is interested in both these groups and we have a big emphasis on doing something about that large pool of people. Not only do we offer different levels of courses but also different ways of working. The polytechnic system is open access – if they can present themselves then there is a place somewhere. The future is what they make of it.”
While New Zealand doesn’t have the astronomical rates of some of the European countries – Spain’s percentage has doubled to 20 per cent – the latest figures suggest around 12.5 per cent of the country’s young people are NEETs. In the Otara-Papatoetoe area the figure is 22.1 per cent. The figures by themselves don’t tell the whole story. Manukau Institute of Technology’s (MIT) external relations director Dr Stuart Middleton says there’s a different between being unemployed and unemployable. The first group are able to compete for jobs when they come up, but people in the second group don’t have the qualifications or the skills to fill specific roles even if they were available.
“We look to get students to the end of their qualifications in a highly employable state. It’s not just about the skills and knowledge they need to get a job, but also the skills to continue learning on the job; people who see themselves as lifelong learners and take the time to do a job well. “A very large number of our students are from South Auckland, so if we’re matching the skills we’re teaching with what the business community needs, then we should ideally be seeing more local businesses employing local people.”
Sources: http://www.cometauckland.org.nz/webfiles/CometNZ/files/2012ED_SNAP_OTARA_PAP.pdf http://www.economist.com/blogs/economist-explains/2013/05/economist-explains-whyyouth-unemployment-so-high Household Labour Survey March 13 Quarter
BY THE NUMBERS Overall it’s estimated there are as many as
290 million youths
not participating in the labour markets, that’s almost a quarter of the world’s youths It’s estimated that within the OECD there are 26 million people aged between 15 and 24 who are not in education, employment or training
30%
Youth unemployment has increased by across the OECD and in Spain it has doubled to 20%
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The seasonally adjusted NEET rate for those aged 15-24 in New Zealand was in the March 2013 quarter
12.5%
The Otara-Papatoetoe local board area has a youth NEET rate of 22.1%
10.5% MIT offers more than 1500 courses The youth NEET rate for Auckland is and has about 18,000 students
N E WS LE TT E R O F T H E GREATER EAST TAM AKI BUSINESS ASS OCIATION IN C. I S S U E 5 2 0 1 3
Well-connected The old saying goes “it’s not what you know, but who you know” and, while it’s not the be all and end all of finding a job, having the right connections certainly helps. And that’s where Youth Connections comes in. The initiative is aimed squarely at making a difference to Auckland’s rate of youth unemployment, especially those not in education, employment or training (NEETs) and aims to have all young people either working or earning, learning and training. As its name suggests, Youth Connections works with local businesses, youth services and schools to create connections between young people and employers, encouraging the business community to take a leading role in shaping the future of their local workforce. Championed by Mayor Len Brown and supported by Auckland Council, Youth Connections is operating in ten local board areas and launched in the Otara-Papatoetoe and Mangere-Otahuhu areas in November last year. These areas are funded by the Auckland Airport Community Trust and the Tindall Foundation, and Stephen Tindall says he believes there is an untapped talent out there who are not getting jobs. “What I’ve found is that getting young people and diversity into your business is really good for business,” he says. By becoming a Youth Connections employer, businesses work with the organisation to identify what they need from an employment perspective and match them with local young people who are “work fit”. Businesses that don’t have any vacancies can still contribute by speaking to school leavers about their
industry, conducting site visits for young people and holding mock interviews to help them prepare for the working world. Theresa Rorason is the local contact for Youth Connections in the Otara-Papatoetoe and Mangere-Otahuhu areas and knows first hand how much of a difference getting the right support and introductions can make. While she had a university qualification, she couldn’t find a job, so she went back to university to do her honours and still found she couldn’t get a job. It took a speech at a family function to catch the attention of a friend and local business owner, who then created a role for her. “They trained me in all the things I needed to be successful and then carried on supporting me through my entire career,” she says. “It’s just so satisfying to be able to work with young people to break down the specific barriers they have so you can help them get a job or an education pathway to employment.”
Rorason has worked for Youth Connections since October last year and says she knows it can be hard to overcome a difficult background, but the key rests in developing resilience, flexibility and adaptability. “That’s what I say to the young people I talk with. If one door shuts, you have to move on to the next door. And young people respond to that once you have their trust and they know you are trying to help them.” Tindall talked to GETBA members at the June breakfast event sponsored by MIT, sharing his enthusiasm for and belief in the difference Youth Connections can make and called on local businesses to get involved. “It’s not just about making profit in your business, it’s doing something that’s actually noble for the community and this way you’re going to enhance your business and help young people.” www.youthconnections.co.nz
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RUSHING INTO THE FUTURE The Wero sporting complex is about more than some white water, it’s about youth development. The land next to the Vodafone Events Centre may have been empty for many years but there was always a long-term vision for its use: an outdoor education centre and sports facility. There were concerns about the development to begin with, but after years of business planning, public debate and support, Auckland Council finally approved funding for Wero, a white water and cultural centre. Counties Manukau Pacific Trust (CMPT) directs the community facility and chairman Sir Noel Robinson says they always wanted to create a centre that would engage the city’s youth and be a highimpact draw card.
We want young people to have an experience at Wero that leaves them feeling proud about themselves. a deadline for private treaty of 5 June 2013. The land sale is expected to generate $20 to 30 million, with Regional Facilities Auckland allocating $20 million to Wero.
white water sports facility that puts kids in a controlled but perceptually risky environment, which is a vital component of youth development.
“CMPT will source sponsorship for an extra $10 to 15 million required for development of Stage Two but there was no point in turning to sponsors before we had the RFA funding approved,” Sir Noel says.
“We want young people to have an experience at Wero that leaves them feeling proud about themselves.”
The trust will go to the market to tender the project to determine the exact construction cost and eliminate financial risk. CMPT’s trust deed is to serve the community and to do so in the most selfsufficient manner possible.
Sir Noel Robinson
“Further development had to create a destination of international significance and have a point of difference,” says Sir Noel. “The Vodafone Events Centre is cash positive every month and it’s run efficiently by business people not politicians.” CMPT analysed developing a rugby stadium on the land but the concept wasn’t strategically viable, whereas a white water sports facility is unique in New Zealand. The next critical component of the development is the sale of the surplus council land, which went on the market in May with
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“Wero is a sporting complex for youth development,” Sir Noel explains. “It’s no different from an athletic track or football field and the private sector doesn’t fund them because there’s no financial return on the capital. There is, however, a social return and that is what Wero is about – a
Counties Manukau Sport has committed $100,000 per annum to give thousands of local children free access to the white water experience. Wero will also be accessible for all schools and will host 45,000 students each year, including free access to Body Odyssey, an interactive health and well-being exhibition. If the business plan remains strategically sound the site will possibly be pre-loaded at the end of this year and construction should commence in early 2014. The first international event held at the new centre will be the 2017 World Masters Games. www.wero.org.nz
KEEP IT LOCAL SUPPORT LOCAL BUSINESSES! For just $150 plus GST, East Tamaki businesses can now promote their products and services to local businesses via our Keeping it Local emails. Each week we put the spotlight on a different local business. Email admin@getba.org.nz or phone us on 09 273 6274 to book your spot
N E WS LE TT E R O F T H E GREATER EAST TAM AKI BUSINESS ASS OCIATION IN C. I S S U E 5 2 0 1 3
OUR ASSOCIATE MEMBERS More than 50 businesses from outside the East Tamaki precinct have chosen to join GETBA as Associate Members. Here are four of them:
Fancy a 44% increase in turnover? How about a 2840% return on your investment in business development? That’s what two of our clients have achieved, how about you? Call Dave Wylie to talk about your opportunity
09 534 4844
FIND OUT whaT’s ImpOrTaNT TO yOUr cUsTOmers real research lets you know what your customers really think about what you offer. Guesswork is not a science and just won’t cut it. Take the time to ask... Do you know what your customers value from you? Do you deliver that value better than your competitors?
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NO or DON’T KNOW Do you have a plan to learn and IMPROVE the value you offer?
Do you have a plan to MAINTAIN the value you offer?
Give your customers the chance to have their say. Build stronger, more profitable partnerships using our expertise.
strengthening Business partnerships
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If you are an associate member of GETBA and want your ad here, email admin@getba.org.nz or phone us on 09 273 6274.
PROPERTY UPDATE PROPERTY OWNERS FORUM
All Shook Up!
Tuesday 9 July 2013, 4-6pm
Find out how the building policy review will affect your property or business.
Making our voices heard The Auckland Unitary Plan will be the rulebook that shapes the way the city grows, so it’s no surprise that the release of the draft plan drew so much feedback from all corners. The window for feedback has now closed and GETBA put its views across loud and clear. More than 60 East Tamaki business and property owners attended the GETBA Forum on the draft Unitary Plan in May to discuss its implications. Following the Forum, GETBA banded together with five other industrial business associations across Auckland to put forward a significant Feedback document representing the interests of thousands of light and heavy industrial businesses, including the 2000plus businesses in East Tamaki. Prepared by Grant Hewison, the Feedback started by raising concerns about the draft plan’s heavy residential focus, something that could lead to a heavier emphasis on residential issues during the feedback stage of the process. It noted concern over the scarcity of industrial land (particularly within the existing urban area of Auckland). Nearly one third of industrial land has been used for non-industrial purposes over the past decade – mainly for retail, office and residential use. Picking up on these issues, the Feedback pointed out the draft Unitary Plan did not adequately address the need to protect existing industrial land in Auckland or provide for more (especially inside the existing urban area) despite stating its importance in the Auckland Plan. However, compared with the district plans of the old councils, light and heavy industrial areas were appropriately simplified into two zones. Moreover, the list of activities allowed in the heavy and light industry zones were generally appropriate, while the activities not allowed in those areas were also about right.
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ISSUE 5 2013
The Feedback criticised the draft Unitary Plan in the following respects: • The Air Quality Industry Transition overlay designed to improve air quality would unduly restrict industrial activities. • Transport and land use development were not well integrated for industrial areas in the Plan. • The minimum 5-star Green Star rating for new industrial buildings was considered too high for industrial areas. A lower rating was preferred.
The next GETBA Property Owners Forum focuses on proposed changes which will have significant compliance code implications for the commercial industrial property sector and building owners. PANELLISTS: Ian Little, Senior Property Research Analyst, Bayleys Commercial Industrial will set the scene by outlining the proposed changes and the property sector market’s response. Andrew Thompson, Senior Structural Engineer, Harrison Grierson will explain what defines an earthquake-prone building, how engineers determine the rating for a building, what to be aware of with seismic ratings, and what changes are likely to occur in the Building Act. Paul McKay, General Manager Corporate Marketing, Aon Insurance will elaborate on property insurance costs and risk implications. Come along, be better informed and join in the discussion.
• An allowance also needed to be made for occasional late night industrial noise. • More flexible and smaller lot sizes should be provided for subdivision in industrial areas. • Parking minimums need to increase to 1 per 100m2 gross floor area. • Criticism was made of the 62m buffer zones under electricity transmission lines and recommended that these be removed for non-sensitive uses in industrial areas. • Certain heritage/tree protection in industrial areas appeared inappropriate. Finally, although this initial feedback process has closed, business owners should still check the Unitary Plan themselves or obtain advice in order to see what activities would be allowed on their land and what restrictions might be planned under the Unitary Plan.
Save the date: 9 JULY What Property Forum on the Building Policy Review implications When Tuesday 9 July 2013, 4-6pm Where BNZ Partners Business Centre, Level 1 86 Highbrook Drive Refreshments Beer, wine & pizza
If you have any questions, feel free to contact Grant Hewison: grant@granthewison.co.nz
Register by 5 July by phoning GETBA on 09 273 6274 or email admin@getba.org.nz
TH E G RE ATE R E AS T TAM AK I BU S IN E S S AS SO C I AT I O N I N C .
PO Box 58 260 Botany Manukau 2163 P 09 273 6274 E gm@getba.org.nz www.getba.org.nz