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MAY 2015

Being sustainable from the ground up Drugs at work?

Learn what you can do PG 17

Cyber Security It’s all about you PG 18

Money Matters

Are you managing your FX risk? PG 21

How your business can reduce, recycle and reuse PG 12

Your Brand.

Your brand is a powerful thing. It’s a statement of values, it’s the essence of who you are, it’s a guarantee. It’s the symbol of the all the touchpoints that make you - well, you. If now is the time to make your brand matter, we would love to show you what we do, how we do it and what we have done to build and help other brands tell their story. So give Kathryn Dunn a call on 09 476 3063 or visit




ard to believe that here we are already one third of the way through another year. Feedback we hear is that 2015 has been frantically busy for most of our local businesses. Certainly the rate of change around the area is staggering although I’m sure anyone trapped in the congestion caused by the Albany Highway upgrade will be hoping for quicker progress on that project. NHBA has been heavily involved in the consultation and communication around this development. We will very soon pilot a scheme which we hope will alleviate some of the congestion in this area, but more on that later. One of the frustrations for the NHBA executive and board when considering the rapid pace of change is overcoming the seeming apathy of the broader community. It’s not an exaggeration to say that generational changes are underway in Auckland. Changes that will affect every aspect of our working and recreational lives as Auckland seeks to become the world-class city we all know it can be. Behind all the hype about the CRL and trams, high rise development and port encroachment there are decisions being made by council this year that will directly affect the way we get to work, what our businesses will be permitted to

do and ultimately bottom-line profitability. We have spent hundreds of hours attending hearings, reading reports and making submissions on your behalf. It’s a fundamental driver of our existence but I implore you to engage in the process. Together we are stronger. Council understands that we represent thousands of

There are decisions being made by council this year that will directly affect the way we get to work, what our businesses will be permitted to do and ultimately bottom-line profitability.

businesses and tens of thousands of workers. Tell us what you want. We have held meetings, canvassed opinion, and distributed information. Generally we’re lucky to get feedback from more than a dozen people. We represent our members. We’re making submissions on your behalf, but we’re having to make them based on what we believe you want, or would want, if you knew the options being canvassed. Together – Stronger. Let’s get Together! Two more innovations that I would like to draw your attention to. NHBA is organising

IN THIS ISSUE 3 4 6 7 8

From The Chair In Brief Diary Dates Events: Hon Tim Groser Nick Brown

9 10 12 14 15

an inorganic collection around the area. We see this as a real value-add to the community and a tangible way to supplement existing waste collection streams and hopefully reduce our collective waste footprint. See page 13 for details. Finally, you will see and hear a lot in the coming weeks about the NHBA Internship Programme. Leveraging off the MoU we signed with Massey University last year we are facilitating a scheme to enable a range of internships for Massey students. This will be simple, largely self-managing and will give local businesses the opportunity to tap into the knowledge reservoir on our doorstep at nominal cost. It’s a win-win. Businesses get much needed expertise, students get experience and life skills and Massey gets a programme that enriches its academic programme. There will be an event soon to meet prospective interns so register now.

Yours sincerely, Kevin Moore Chairman

Safe workplaces are good for business Who’s Who Being sustainable Telling the council what we think Transport

17 19 20 21 22 23

Crime Prevention Training Legal Foreign exchange Associate Members Gold Sponsors

NHBA GOLD SPONSORS 2014 – 2015 trade colour print

CONTACT FYI MAGAZINE General Manager - NHBA Janine Brinsdon

Editor Anne Gray

Advertising Sharron Drew

Design Lewis Hurst

Printer Trade Colour Print

North Harbour Business Association 12 Parkway Drive, North Harbour, 0632. PO Box 303 126, North Harbour 0751 Office 09 968 2222 Web The opinions expressed in this publication are not necessarily the views of the publishers.The publisher does not  endorse any person, company or organisation that advertises in this publication.



Could you qualify? North Harbour Business Association members who are looking to enhance their international professional development might want to apply for a 2016 Churchill Fellowship.


and funding is not normally granted for attending academic or professional conferences. Alongside the traditional Fellowships, this year emerging writers can apply for The Winston Churchill McNeish Writer’s Fellowship, and designers can apply for The Winston Churchill Hawke’s Bay Design Trust Fellowship. Two Anniversary Fellowships will also be offered to celebrate the 50th anniversary of the Trust. “This is a time for us to spot emerging talent, and to encourage New Zealanders to take their work to another level,” Jo Goodhew says. “We also want to encourage applicants to consider the research opportunities and experiences in the Pacific and Asia.” For more information and to apply, visit the government’s Community Matters website Funding-and-grants---Trust-and-fellowship-grants---New-Zealand-WinstonChurchill-Memorial-Trust

© Library of Congress


ommunity and Voluntary Sector Minister Jo Goodhew has announced that applications for the 2016 Churchill Fellowships are now open. These fellowships offer an opportunity for New Zealanders to travel abroad to enrich their personal and professional development. “The fellowships are open to New Zealanders at all stages of their career, in all professions, industries, occupations and trades,” she says. The Winston Churchill Memorial Trust was established 50 years ago following the death of Britain’s war-time Prime Minister Winston Churchill, who believed overseas travel led to greater international understanding and world peace. Winston Churchill Fellowships, which are offered every year, are for community workers, farmers, designers, scientists, business people, actors, teachers, scientists, artists and writers to conduct investigative research. All research topics and subject areas are considered. However the Trust Board does not make grants towards academic or professional qualifications


Networking: Finding the right work/life balance


ocal NHBA member, Fiona Clark, officially launched her BreakThrough Women in Business Programme with a champagne reception at the Bruce Mason Centre in March. As Fiona’s website notes nearly 75 percent of business women say they stress over work/life balance and her new programme combines teaching women the business skills they need to grow their companies while providing the coaching and support to help them make it happen. “Each seminar I sponsor women students from Massey University Business School. We had two students attend at no charge, and this is my way of helping future business women who will be the next generation of leaders and business owners.” You can keep informed about forthcoming events at and read Fiona’s recent article on the ‘Five Ways to Achieve Work/Life Balance on the Idealog website at workplace/2015/03/5-ways-achieve-worklife-balance-and-maybe-just-restore-your-sanity-process

From left to right: The BreakThrough Team – Bella Ericson, Fiona Clark and Mandy Burner.

YOUR FINANCIAL SECURITY IS OUR PEACE OF MIND Life’s path is subject to change and the changing of family’s needs impact not only on day-to-day money matters, but also stress the importance to plan for how to protect loved ones’ financial futures. We are passionate about helping people to plan for their future. We specialise in personal service, offering our clients peace of mind by protecting the financial security of their families through personal insurance cover.

Neil Tuffin CA AFA

We can help you chart your course to obtain cost effective insurance.

To arrange a meeting please contact us on: P. 09 414 6078 M. 021 0844 2524 E.

Paul Tuffin RFA



BY THE NUMBERS 20.7 billion

Litres of milk were processed by New Zealand dairy companies in 2014.

$3 billion

Air New Zealand’s planned investment in new planes

Diary Dates May 6 Cyber Security NHBA

Learn from NetSafe how to protect your business from the risk of cybercrime at this free security workshop. Promise – no jargon – just commonsense. You don’t have to be an IT expert to attend! See page 17 for more information on cyber security.

27 Credit Card Fraud workshop BNZ PARTNERS

17 Workplace excellence

within the next 6 years.


ANZ also expect a 12%

Guest speaker, Gerry Lynch is the CEO of Mars NZ. He will present on the core factors which resulted in Mars NZ winning the Best Workplace award 2013 and 2014.

increase in capacity within the next 6 months.


The coldest temperature recorded for the Southwest Pacific Region was observed at Eweburn, Ranfurly in New Zealand on July 17, 1903 according to a World Meteorological Organisation panel


International visitor arrivals at Auckland Airport for the year ending December.

$8 million

Lost in online fraud in 2014 within New Zealand.


New Zealanders over the age of 65 today. By the middle of this Century that figure will almost double. 6 MAY 2015 FYI NHBA.ORG.NZ

Annah Stretton

Delivered by experts from BNZ’s fraud centre, this workshop will help you detect stolen and fake credit cards. It could save you $1,000’s!

22 Pink Shirt Day An annual event celebrated in many countries around the world, Pink Shirt Day encourages people to talk about bullying and take action against it. On Pink Shirt Day, Friday 22 May 2015, New Zealanders are asked to Speak up. Stand together. Stop bullying.

23-31 Youth week | Ara Taiohi Ara Taiohi Youth Week is about recognising the amazing contributions and achievements of young people in New Zealand. The week is to inspire us to value, support, and affirm the diversity of young people in our society.

29 NHBA Women in Business AUT MILLENNIUM

Guest speaker: Annah Stretton – fashion designer, entrepreneur with a social conscience.

June 10 Business Luncheon Guest speaker: Hon Tim Groser Minister of Trade AUT MILLENNIUM

We are delighted to have Hon. Tim Groser as our guest speaker. Learn from the Minister how your business can benefit from ongoing Free Trade Agreement negotiations. See page 7 of this issue for our interview.

18 Drugs in the Workplace workshop NHBA

Hear from TDDA on how you can keep your workplace drug free. RSVP

23 NHBA Asian Business Community AUT MILLENNIUM

Worksafe will present, in Chinese and Korean, the impact of proposed changes with the Health and Safety Reform Bill. More information page 22. RSVP:


Join long time Albany business man – Andrew McKenzie and his team for a night of networking. While there, be one of the first in NZ to see the new look Corolla.

25-27 NHBA’s Inorganic Collection NHBID

Plan now to have your spare office furniture and other inorganic items picked up this month. See page 12 & 13 for further information. To keep up to date with what’s on please see If you’d like to feature your events in future editions of FYI Magazine please contact

© Amanda Bransgove

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with the Hon. Tim Groser We are delighted to confirm that the Hon Tim Groser, Minister of Trade, will speak at our next NHBA Business Luncheon on June 10 at AUT Millennium. Ahead of his address we asked the Minister how your business might benefit from the ongoing Free Trade Agreement negotiations.

If the Minister was a small to medium size business owner how would he go about leveraging the FTA with Korea and/or the ANZTEC agreement? [The Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation.]   Trade agreements help break down barriers to trade and provide useful frameworks for resolving trade issues. This saves exporters money and means they can look to invest in growing their presence in the market. It is therefore important that businesses understand how they can access the benefits of these agreements. Tariff finder tools are available on both the  and websites, which make it easier for businesses to research the tariff benefits for their products and the improved rules of origin procedures. From a commercial viewpoint, trade agreements also help to raise New Zealand’s profile in these markets. New Zealand products already have a good reputation as being safe and high quality, so it is important to take advantage of the current spotlight on New Zealand in both Korea and Chinese Taipei. For the Korea FTA, the Ministry of Foreign Affairs and Trade and New Zealand Trade and Enterprise will be holding roadshows throughout the country from May 25–28, where businesses can learn more about the FTA and the opportunities it provides. [More details shortly on korea. – Ed]

Where does the Minister see the most value in both these agreements for business owners around New Zealand? The elimination of tariffs makes New Zealand products more competitive with other international players in the market. Under ANZTEC in particular, New Zealand businesses have a distinct advantage compared to their international competitors. We were the first to secure such an agreement, which has already resulted in tariffs being eliminated on over 80 percent of New Zealand’s current exports. The Korea FTA, while not offering exactly the same first-mover advantages, helps to restore our position in the market relative to

our competitors who already have FTAs with Korea and still provides considerable savings on New Zealand exports. Once into force, current duty-free access will be ‘bound in’ and duties eliminated on approximately 48 percent of exports, saving about $65 million. There are many other aspects of these agreements that make it easier to do business with Korea and Chinese Taipei. Both provide exporters with the ability to claim preference through self-certification, which is more cost-effective than other certification methods. The investment provisions in the agreements offer improved protections and certainty for New Zealand investors, and also make New Zealand a more attractive investment destination.

One of the most significant areas where such higher value opportunities may exist is through participation in global value chains.

With the Minister’s extensive knowledge of world trade, where does he see opportunities for NZ businesses that perhaps are not being tapped into (or recognised) as yet? I think the first thing to recognise is that most New Zealand small to medium-size businesses are already fully committed pursuing their existing opportunities, so the issue is really about identification of higher value opportunities that businesses are not currently exploiting, and that they might move into. One of the most significant areas where such higher value opportunities may exist is through participation in global value chains. Almost 60 percent of all global trade is now in intermediate

manufactures and the figure is even higher for services. The figures are lower in New Zealand. Even in the agriculture and food and beverage sectors, the percentage of imported intermediate inputs that New Zealand businesses use in exports is only 54 percent and 45 percent, respectively. That is lower than, for example, Singapore, Viet Nam, the Netherlands or Ireland. We are still deepening our analysis of why this is the case and the implications. But these statistics (which are from the OECD) do highlight that if New Zealand businesses want to look for higher value opportunities, one area for them to focus on is to seek out global, or regional, value chains in which they can participate, and seek to extract greater value than they do currently.

4. Is there anything else about the current state of world trade that the Minister believes smaller business owners should be thinking about if they want to grow their export markets? We are living through a fundamentally important historical shift of economic and political power, from a small number of ‘developed’ countries to a more dispersed set of players in which the major ‘emerging’ economies will be increasingly significant. I think businesses in New Zealand should look at where this may produce valuable new markets in areas that they have not previously considered, for example in Latin America or in major emerging economies elsewhere in the world.

Save the date NHBA Business Luncheon Who: Hon Tim Groser Minister of Trade Where: AUT Millennium When: June 10 More info: NHBA.ORG.NZ FYI MAY 2015 7


Nick Brown

Nick Brown guest speake 2Comm. who kindly spo r, Kathryn Dunn, nsored the breakfast.

Building the most successful global rugby brand

You can’t build a reputation on what you are going to do,” Nick Brown, the general manager, commercial at New Zealand Rugby told nearly 100 North Harbour Business Association members recently at the association’s March Business Breakfast. Nick was quoting American Henry Ford as he explained that New Zealand Rugby’s ambition was to be a world-leading sports organisation with the vision of inspiring and unifying New Zealanders behind NZ Rugby.

The All Blacks have a formidable international reputation (of 526 tests played they have won 402 or around 76 percent) and Nick outlined the approach NZ Rugby takes to building and protecting its brand and reputation and the importance of stakeholder management. They take a consistent approach to reputational issues, they call it “issues jumping”, or identifying every issue that could impact on the brand. While people make mistakes, in rugby

it makes headlines and the organisation’s approach is to show care and concern for its people (front the issue); to take action (manage the situation) and keep everything in perspective (remember the big picture to give the situation a perspective). NZ Rugby also has a commitment to quality stakeholder engagement and if any issues arise, positive or negative, they spend as much time on their stakeholder plan as they do on their media plan.

NHBA Women in Business, Feb 24 and Massey University, NHBA Business After Five event, Feb 25 es and Siansiness bu nt from Forb Kim Bligna Gilrose – Women in Ar thur from

Kerry Cook and Jan Colliers and Nicky et Marshall from from Only Your Sk Wilson and Maryana in– Women in busin ess

and Marty Geoff Ashenden from Vital Health Composite Johanson and Sue Johanson fromFive Developments NZ Limited – After

KJ Grewal and Kathr yn Parry from Pumpt– Women in business

Heather x Medcare om Phoeni – After Five fr r ge od R ther Bradley Consult Hea Elliott from


Works i Waretini from Number After Five Dawn Bright, with Hem Massey University – and Dr Loren Srangi from

Rebecca Clarke fro Dr Kaye Thorn fro m Drake and University – After m Massey Five


Safe workplaces are good for business If your health and safety systems meet ACC’s Workplace Safety Discount audit standards, your business will receive a 10 percent work cover ACC levy reduction for three years.


safe and healthy workplace is one of the keys to business success. By establishing good health and safety practices in your workplace you’re likely to have more motivated and productive employees, lower absenteeism rates, fewer business disruptions, and reductions in the costs of sick pay and temporary replacement staff.

You’ll also help to reduce the sometimes serious impacts of injur y on employees, families and the wider community. Plus, you could qualify for one of ACC’s business incentive products. ACC’s Workplace Safety Discount is aimed at self-employed or small businesses (those with 10 or less employees). It starts with a self-assessment and application process, which includes you providing documents as evidence of your health and safety practices, followed by an audit of these by an ACC-approved auditor. If the auditor concludes that your health and safety systems and practices meet the Workplace Safety Discount audit standards, your business will receive a 10 percent work cover levy reduction for three years. ( ACC’s Workplace Safety Management Practices recognises medium to large (more than 10 employees) employers. If you qualify, you’ll receive a 10–20 percent reduction in your ACC work cover levies. The audit standards have 10 ‘critical elements’, which provide a framework for building successful and sustainable injury management practices in your workplace.

Each element comprises a number of requirements that need to be met. These requirements are listed according to the three health and safety performance levels that you can achieve: primary, secondary and tertiary. (

Need help? If you’d like to set up a health and safety management system but are not sure where to start we recommend you contact an independent health and safety consultant, your local industry body, industry safety organisation, industry training organisation, trade union office. Or contact ACC to speak to an Injury Prevention Management Consultant. There is a step-by-step guide How to implement safe workplace practices (ACC366) available to download or order from the publications page of the ACC website. This guide provides you with information and templates for setting up and supporting effective workplace health and safety management practices. For more information on and support for preventing and managing injuries in your workplace, visit

Understanding the difference between a body corporate manager and a property manager A lot of heartache can be avoided if you understand how your body corporate works before you buy. By Sue Hay.


body corporate is an entity made up of all the unit owners in a Strata Title development and is managed under the Unit Titles Act 2010 and Unit Title Regulations 2011. If you are a unit owner in this type of development, you are also a member of the body corporate. Properties registered as a Strata Title property usually engage a professional administrator to provide financial and administrative services to the body corporate. Buyers or owners within a Strata Title property should be aware of the body corporate functions, rules, the way the body corporate operates and is administered, and who takes responsibility for these functions, especially the maintenance of the common property. Engaging a body corporate manager who also provides maintenance assistance can be an advantage as owner committee members are volunteers, often busy with their own lives. A body corporate manager receives instruction from either the chairperson or the committee, whereas a property manager has responsibilities to the landlord and the tenant. A property manager will collect rent, rates and water costs

and manage the upkeep of the property, also negotiate new leases and/or rent increases. A property manager’s fee is usually based on a percentage of the rent and outgoings, and specified fees for other services. The body

corporate manager’s fee is based on market rates and is not based on the value of the properties but rather the schedule of agreed duties. Body corporates own and control the common property. The operational rules are about the control and management of the common property. Prospective buyers should check these rules do not include restraints that affect business operations or their way of life. A classic example for commercial businesses is loading, unloading and placement of containers on the common property. The rules governing this activity are based on either room constraints or perhaps the specification of the car park asphalt. Residential owners may find that their body corporate has a rule that does not allow pets in a unit or on the common property or requires approval from the Owners’ Committee. A lot of heartache can be avoided if these things are known before purchase. For further information please contact Sue Hay, Shay Solutions NHBA.ORG.NZ FYI MAY 2015 9


Flow Software’s entry into US market


lbany based integration and EDI specialists Flow Software’s plans to enter North America have taken a significant leap forward by entering into a collaborative agreement with San Diego State University (SDSU). The collaboration with the university will provide Flow Software with four months of in-depth USA market research by some of its top executive MBA students. Flow Software’s general manager and director David Masters says that having established a significant presence in New Zealand and Australia, with customers spread across South Africa, Hong Kong and United Kingdom, the US market is the company’s next market to target.  “The project’s aim will be to analyse relevant sectors and to identify potential distribution partners,” says Masters. “The timing of being selected for the programme couldn’t have been better for us. We acquired the

domain late last year and we are in the early stages of planning our US market entry. The Executive MBA programme will add significant value to this process.” Flow Software specialises in the development, marketing and support of Rapid Deployment Integration and EDI software. Its software facilitates the transfer of electronic information between software applications and between B2B trading partners. It works alongside almost any application and many of the most popular accounting, ERP, ecommerce, POS and CRM software packages. Martina Musteen, associate professor and director of the Centre for International Business Education and Research (CIBER) at San Diego State University will be overseeing the project and has been working with the MBA students in the context of her International Business Opportunity Development (IBOD) programme since 2007. In the last two years the programme was extended to also include the Executive MBA students. Flow was supported in its application by Auckland Tourism, Events and Economic Development (ATEED).

Flow Software’s general manager and director David Masters

About IBOD

The International Business Opportunities Development (IBOD) programme is a collaborative project between MBA students at the San Diego State University (USA) and SMEs in other countries (although US-based companies can also participate). The goal of the project is to pair small student teams with companies interested in developing business opportunities in the U.S. market (or occasionally in other countries) whereby the students undertake market research on behalf of such companies as a part of their coursework. See ibod.html for more information.

DEREK HANDLEY Your chance to hear this internationally successful entrepreneur right here on the Shore!

VENUE: Spencer on Byron Hotel, Takapuna. DATE & TIME: Friday 22nd May. 12 noon for 12.30pm.


Derek Handley is a speaker not to be missed. He was the Founding CEO of The B Team, which he helped set up alongside Sir Richard Branson and Jochen Zeitz. The B Team is a global leadership collective aimed at making business work better for people and the planet to meet the challenges of the 21st century. He is a Sir Peter Blake Trust Leader, KEA World Class New Zealander and a NZ Herald Business Leader of the Year. Derek started The Hyperfactory in 2001, one of the first strategic and technology houses in the world specialising in helping Fortune 500 brands navigate the mobile world. It was cited as Entrepreneur Magazine’s ‘Top 100 Brightest Ideas of 2010’ and Brandweek’s ‘10 Biggest Ideas of 2008,’ and was acquired by Meredith Corporation in 2010. He is also a committed astronaut-in-waiting with Virgin Galactic; an adjunct executive professor at AUT University in Auckland; chair and co-founder of NZAX-listed B-Corp Snakk Media; a board director at Sky Television; and a New Zealand Arts Foundation Trustee. He released his first book ‘Heart to Start’ in 2013, on the entrepreneurial journey and pursuing personal purpose.

TICKETS: $130 excl GST pp

(Special price for members available)


Courtney Jackson, 021 277 0699 or This event will sell out so secure your tickets now.

ALL PROCEEDS TO... The North Harbour Club’s annual AIMES Awards. The success of these fundraising events, through the purchase of tickets, is crucial to enabling the North Harbour Club to be able to reward the young people of our region who achieve excellence.


Keeping up with the changing face of business Men are from Mars, women are from Venus. It’s a saying we all know, however how many of us consider it when selecting the right business advisor?


any advisory firms continue to operate in the same black and white, “traditional” way while assuming this is what their client expects. In reality businesses are changing, adapting and growing. Women are often playing a more significant role in the running and ownership of businesses and all these factors mean clients actually require a more dynamic, modern approach. Although women aren’t from another planet, they do often think, interact, build relationships and make decisions differently. Recognising that a different perspective in business can

be a great advantage, here are a few tips for women in business:

• Don’t be afraid if you naturally approach things differently, it can be a strength!

• Ensure you charge what you’re worth, don’t undersell yourself.

• Your business should be in an area you are passionate about. Love what you do!

provide accounting, tax and advisory support. The team focus on delivering top class service and tailoring advice to meet the specific needs of every client. With vast experience, Hayes Knight provide assistance ranging from typical tax and accounting services, to help with matrimonial and business valuations, due diligence and start-ups.

• Choose a solution focused advisor who understands your needs and challenges. Hayes Knight have a dedicated senior team of forward thinking and highly capable women who

Discover how Hayes Knight can meet your needs in this evolving world – contact our expert advisors on 09 414 5444.

“I want to be all that I am capable of becoming” Katherine Mansfield

Hayes Knight recognises how important it is for you to ‘connect’ with your accountant. For accounting expertise and leading business advice, contact our North Shore team today on 09 414 5444.


Being sustainable from the ground up Sustainability in business can mean a myriad of things. From the really big stuff such as alleviating poverty in your community, working with DOC to save an endangered species or designing an environmentally sustainable building. Or it can be as simple as collecting rainwater to wash your business fleet and cycling to work instead of driving. And it can save you money.


hen some of the world’s leading corporate citizens are proudly informing their existing and potential clients about their environmental credentials it is probably time for even the smallest of companies to sit up and take notice. One example is the world’s leading hotel operator Accor, which has 480,000 rooms in 3,700 hotels across 14 brands in 92 countries including New Zealand. Annually the global company updates its stakeholders on its sustainable development achievements from both an environmental and social perspective. Its latest report notes proudly that almost 90 percent of all the group’s hotels recycle their waste which, in a group this large, is no mean feat. Another hotel chain, the Langham Hospitality Group, which again has a strong profile in New Zealand, runs a number of corporate responsibility programmes noting proudly on its website that the Langham Auckland has also adopted a cradle to cradle approach with all procurements. “Cradle to cradle involves looking at where all items (local or overseas) are sourced, what they are sourced from (recycled material or renewable resources), how they are manufactured (manufacturers processes and subsequent environmental impact), by whom and under what conditions (ethical labour practices and working conditions from reputable clients). Where possible all products used by The Langham


need to be either recyclable or degradable,” the company says. In turn the United Nations Global Compact notes that the connection between the bottom line and a company’s environmental, social and governance practices is becoming clear. “The well-being of workers, communities and the planet is inextricably tied to the health of the business.” So what can your business do and how might it impact on your bottom line? Earlier this month the New Zealand Green Building Council (NZGBC), based in Auckland, achieved a 5 Green Star rating for its own office fit-out proving, as it says in a media release, that “a modest budget is no barrier to sustainability”. The NZGBC, which is a not-for-profit industry organisation, has done a fit-out that takes account of people, resources and the environment. “Because of the choices we’ve made, our office uses less energy and water, and promotes health and productivity with great internal air quality,” says NZGBC chief executive Alex Cutler. Some of the ways they achieved the 5 Green Star rating are: Energy – lighting was reduced (from 56 light fittings to 20) and re-designed with presence detectors; new lights are either high-efficiency lights or LEDs. The fridge, dishwasher and IT hardware are Energy Star rated. There’s also a real-time energy monitoring display to help

NZGBC track and improve energy efficiency. Water – the dishwasher and hot-water dispenser were chosen for their high waterefficiency ratings. Materials – office furniture and computers were reused; any new furniture or cabinetry is certified by a recognised eco label. Existing Green Tag-certified carpet tiles were supplemented with new low-VOC carpet made from recycled fishing nets. Walls and doors were painted with low-VOC, certified product. Waste is separated and recycled, and food scraps are composted. Indoor Environment Quality – the office features planter pots and two small climbing walls; species were selected to help filter particles and toxins from the air. Management – construction and demolition waste was minimised and separated on-site. Recycling is measured, and eco-friendly cleaning products are used. NZGBC also included environmental management clauses within their lease with the landlord. Transport – They chose an office that was close to mass transport and many of its members. For more information see

Getting started Closer to home Jo Knight the CEO of Zerowaste NZ Ltd, which is based in Albany (see sidebar), also had some useful ways business owners could get started on their sustainable journey. 1. F irst up, she says, gaze into your rubbish bin so you can actually see what


Two local experts in waste minimisation Is there a way you could cooperate with neighbouring businesses to put all your plastic and film together to be sold and create an income stream?

you and your staff are throwing away. You need to think about where that has come from – is it coming into the business unnecessarily and could you eliminate it? Things like plastic bags, disposable coffee cups. Could these be replaced with reusable bags, and reusable coffee cups for takeout coffee. 2. Secondly, is there someone on your staff who keeps chooks who might take home the food waste? Or is there a keen gardener who might take the organic waste for their compost? Or could you start a worm farm out the back of your business premises and from that compost, plant a garden? 3. Is there a way you could cooperate with neighbouring businesses to put all your plastic and film together to be sold and create an income stream? Likewise with cardboard, could you cooperate with other businesses and compact it and again sell it on. 4. As for industrial waste is there somebody you can use to find another business


ZeroWaste NZ

Rosedale based WasteMINZ is the largest representative body of the waste and resource recovery sector in New Zealand. Formed in 1989 it is a membership-based organisation with more than 1,000 members – from small operators through to councils and large companies. Its website notes it is “the authoritative voice on waste and resource recovery in New Zealand and seeks to achieve ongoing and positive development of our industry through strengthening relationships, facilitating collaboration, knowledge sharing and championing the implementation of best practice standards”. CEO Paul Evans says more and more businesses are joining the organisation as waste becomes increasingly important for them in terms of both saving money and because their customers expect it.

ZeroWaste NZ started life as a not-forprofit and is now a limited liability company and specialist consultancy. It helps organisations to develop solutions in the area of waste minimisation, recycling, e-waste, export of hazardous waste, waste infrastructure and promotes sustainable practices and products. CEO Jo Knight says its activities fall into three areas. Consulting, where they help firms reduce their waste in a pragmatic way; the recycling of e-waste which it exports to Japan for the extraction of the metals; it also helps smaller business with networking and brings companies together which may be able to help each other reduce their waste.

that can use your waste. Items such as sawdust, empty containers, or food grade plastic 20 litre bins which can be re-used (although not for food products)? Jo Knight said some businesses could save a good amount of money by putting in a water retention system to collect rain water. She would encourage property management

companies to look at doing this for their tenants – the water can be used for washing vehicles and flushing toilets (although not for potable use). One business she advised had a lot of dirty trucks and was spending up to $5000 a year on water costs. Once the system was in the only tap water they used was in their staff tearoom.

Recycle and upcycle your inorganics NHBA is organising an inorganic collection in late June to help our members reduce their waste in a cost-effective way while benefiting local not-for-profit groups which may be able to upcycle some of the items collected. This pilot programme is an opportunity for members to collaborate in a way that will benefit the community as well as themselves. The inorganic collection will be uplifted from businesses on June 25 and 26 by our partners Junk Run with community groups able to come and collect items they want on June 26 and 27 from Massey University. Community organisations

in the Auckland North Area have been contacted and a number have identified their need for items. The PumpHouse Theatre is after chairs and couches in particular, De Paul House is looking for a number of different items and Bays Youth Trust is seeking office tables, chairs and couches. While local community organisations are being invited to participate first, others from the wider Auckland area will also be invited. The community organisations will have to register with NHBA prior to the collection and we’d encourage members who know of other groups

who might be interested, including schools and community organisations, to get in touch. As to the goods that are not required, NHBA will attempt to find a home for all items that are reusable and anything else will be taken for recycling. The collection is a pilot programme, funded by a grant from the Waste Minimisation and Innovation Fund. Members who want to be involved can either complete the registration form on our website http:// or email project manager, Anna Crane on NHBA.ORG.NZ FYI MAY 2015 13


Telling the council what we think


HBA put together a comprehensive submission to Auckland Council around its Long Term Plan 2015-2025 and its Draft Regional Land Transport Plan (DRLTP) 2015-2025 after we invited members to have their say throughout February and March. We collated your feedback to form the basis for our submission. Here we have highlighted three of the five questions which formed the basis of our submission. To read more, and to gain a more complete perspective of the issues which concern local business and commercial property owners, please refer to our submission uploaded under the Advocacy and Representation section,


Asked whether we supported the basic transport network or whether more should be invested to get the Auckland Plan transport network “that would address Auckland’s transport problems” we noted that funding the City Rail Link (CRL) is included in both the Basic and Auckland Transport Network and that funding this in advance of central Government commitments has placed significant pressures on Auckland Council funding other transport projects. “There is a $2.5 billion cost for the city rail link. We believe that this is not a project local government should be funding. It is ‘national’ infrastructure. There is a huge impact on other transport projects. The rail link accounts for 72 percent of the public transport budget, but 14 MAY 2015 FYI NHBA.ORG.NZ

will only move a small proportion of the travelling public. Our interest is the impact funding the CRL will have on other projects,” our submission said. We also noted that Albany has been one of the largest population growth areas in New Zealand over the past decade and this (along with Silverdale) is set to continue. We recognised the investment in stage 2 of the Silverdale Park and Ride, under the Auckland Plan proposal. In addition, significant upgrades to the parking facilities at Albany and Constellation Road Park and rides are required, but not provided for in the Basic Plan. We gave qualified support to the Auckland Plan, but drew council’s attention to our priority projects and noted any such support is dependent on the availability and affordability of funding. Our priority projects include the Albany Highway; Albany Highway South (Sunset to SH18) and the Northern Busway Extension Stations.

Motorway Toll

Asked about our positioning on a motorway toll versus a fuel tax to pay for the transport network we told the council that while the ‘Motorway User Charge’ is more complex to introduce, expensive to implement and requires legislative change, this option provides greater ability to manage transport demand and provides economic benefits more than three times greater than the other option. It aligns the costs with those who use it. However we are concerned that under this option, there are no non-tolled alternatives from North Shore to the south. We also asked for reassurance that the revenue generated will continue to be used solely for transport initiatives rather than falling into the common pot. Overall the NHBA supported a ‘Motorway User Charge’ because it will be a direct charge rather than a tax (despite businesses overall

paying more), but we wished to emphasise that local transport projects need to be advanced to avoid, or reduce, the effects of ‘rat running’ on local roads by people avoiding the motorway toll.

Property Rates

We were also asked about our support for gradually reducing business property rates from 32.8 percent of all rates to 25.8 percent over the next 10 years (the business differential). When Auckland Council was formed, businesses were contributing 34 percent of the overall rates even though their properties only made up 17 percent of Auckland’s total property value. Auckland Council committed to slowly reducing the share paid by business from 34 percent to 25.8 percent by 2022/23 because they were too high. Auckland businesses will pay 2.63 times more than other ratepayers, or $150 million more, than if there were no differential. Our submission said that the policy reasons for Auckland Council applying a business differential (i.e. that business ratepayers make more use of council services like transport and stormwater than residential ratepayers, and are better able to afford rates as they can claim back GST and rates can be claimed against income tax) are unsound, particularly when applied to small businesses. We asked that council keep to a reduction adjustment to reach 25.8 percent by 2022/23, and not extend the reduction period by a further two years. If the views expressed in our submission don’t reflect yours please take the time to participate next time we ask for feedback. If NHBA is to be a stronger voice for local business it’s important that our members engage and let us know your thoughts, comments and concerns. We can only be truly representative if we have your input.


Easy access at last


ssues surrounding a very steep driveway in Albany, which was causing problems for freight vehicles doing routine deliveries, has been solved. The gradient of a driveway leading into a property in Albany was too steep for the freight vehicles delivering to the premises. Freight companies were saying that they would no longer deliver to these premises as their vehicles were getting grounded on the driveway, affecting several property and business owners.

In turn, it was causing quite severe damage to the road and consequently Auckland Transport weren’t happy to continue to repair it when the damage was ongoing. In Dec 2012 NHBA called a meeting of business and property owners along with Auckland Transport and the solution was reached for the driveway to be lowered. Premium Properties (which manage the site) contacted the building owners and engaged consultants to ensure that lowering the driveway would actually solve the problem. In 2014, the project really got moving and early this year work was completed. The building owners have paid for the works but they now have a driveway suitable for all freight deliveries and some very happy tenants.

If anyone else has access issues then please let Brigid Rogers at NHBA know and we can try and help you resolve the issue.





PER WEEK *Conditions apply

09 414 0844

Is your business being affected by freight movements? The North Harbour Business Association has received some complaints from member businesses regarding ‘swing shifting’ taking place on the road, close to their premises. Swing shifting is when two freight vehicles park alongside each other and move containers from one vehicle to the other. We have spoken to both businesses and freight/transportation companies for their views. Businesses which are recipients of the freight say there is no alternative apart from transhipping at considerable costs. Transportation companies agree and highlight the impact of increased freight movements into the area as a result of transferring to smaller trucks. We want to understand how much of an issue this is for your business so please email transport@ with your comments and ideally photos.


New bus lane for SH1


temporar y bus/shoulder lane, southbound on State Highway 1 between Greville Road and Constellation Drive, is expected to reduce congestion. The New Zealand Transport Agency has finished Part 1 of the Northern Corridor improvements (replacement of roundabouts with traffic lights and extra lanes on SH1) but in order to improve traffic flow it is going to widen the current shoulder to create a bus/shoulder lane southbound. This is a temporary solution until the funding for the extension of the busway has been approved. NZTA’s acting Auckland and Northland highway manager, Mieszko Iwaskow, says that providing a continuous bus shoulder between Greville Road and the Upper Harbour Highway off-ramp will mean city-bound buses no longer have to merge in and out of traffic lanes heading to the Constellation Park and Ride. “These improvements, along with the upgrade of the Greville Road interchange, and the additional northbound lane between Upper Harbour Highway and Greville Road, will provide better journey time reliability for those travelling along the Northern Motorway.”  Due to be completed in June 2015, the shoulder widening is the final stage of the Upper Harbour Highway to Greville Road Northbound Three-Laning Project, which is part of the Northern Corridor Improvements programme.

BETWEEN GREVILLE ROAD AND THE UPPER HARBOUR HIGHWAY INTERCHANGE Email and request you are added WHANGAREI to the FYI e-newsletter database to be kept informed of future roading developments.

Albany Park & Ride



Local Roads State Highways Bus Shoulder Closed

Deklan Wynne

Leveraging the FIFA U-20 World Cup With less than 50 days remaining until the opening game of the FIFA U-20 World Cup, preparations are stepping up for the biggest extravaganza of football ever seen in New Zealand. And there may be real business opportunities around the event.


wenty four countries from six

• City bound shoulder Confederations have qualified lane closed March–June for the three week event, with • Expect travel delays the tournament opening and final at North Harbour (on May 30 and • Allow additional time June 20). While during the tournament may for your journey meanhours you need to keep an eye on peak wider transport issues, it is also a • wonderful opportunity to use this UHH-Greville or call international tournament as a chance 0800 72 74 74. to engage with your international

business We thankcounterparts. you for contenders for the touryourLeading patience.


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© NZ Football


nament will be the South American juggernauts Argentina and Brazil who, between them, have already won 11 of the previous 19 tournaments. European champions Germany will beEAST looking to emulate their senior COAST teamROAD that triumphed at the 2014 World Cup in Brazil, while even the less favoured contenders will provide no shortage of skill to the event. New Zealand has never won a game at this level and will be looking to qualify out of their group to the knockout phase of the competition. You can follow the tournament o n Fa c e b o o k : f a c e b o o k . c o m / fifau20worldcup​

FIFA U-20 marketing manager Samantha Copeland says a number of the players on show over May and June are already on the books of some of the world’s leading clubs “and this tournament has been the stepping stone for footballing greats like Diego Maradona, Lionel Messi and Thierry Henry. The next big thing in world football is more than likely to emerge from New Zealand 2015”.

Key Dates: Auckland Match Days 30 May Opening Ceremony NZ vs. Ukraine 2 June NZ vs USA 5 June Panama vs Ghana USA vs Ukraine 10 June Round of 16 14 June Quarter Finals 17 June Semi Finals 20 June Finals

Tickets & Transport Tickets available at tickets.fifanz2015. com/individual-matches/  Free buses for three hours before match start times and one hour post-match from organised zones.


How safe is your information? Raimond Donk explains why cyber-security is all about you.


emember a few years back when Sony’s CRM system was hacked? Information, including the names, addresses, account logins, passwords, birthdates, email addresses and credit card records of PlayStation subscribers was exposed. Sony was forced to disclose that accounts of all 77 million PSN subscribers had been hacked; a further 25 million online accounts were exposed; all estimated to cost Sony in excess of US$171 million. A breach of this magnitude may seem irrelevant to those of us operating smaller scale businesses. However, as the NZ National Cyber Policy Office (which is promoting Smart Connect Week in June) will tell you; with business becoming increasingly reliant on digital networks and computerised records, the risk of exposure to the criminal fraternity has never

been greater. Cyber attacks range from denial of service attacks to data thefts. In addition to Sony’s spectacular hacking; other organisations such as Target and Nieman Marcus have suffered major customer data breaches in recent times. Unlike the US, data breach notification is not mandatory in New Zealand, thus making it difficult to gauge how many similar attacks have occurred locally. However, New Zealand is far from immune from hacking. These types of crimes are by nature, very difficult to track. When a retailer’s credit card systems are hacked, banks can usually tell which merchants are affected soon after those card accounts become available for purchase at underground cybercrime shops. On the other hand, when companies that collect (and sell) sensitive consumer data get hacked or are tricked into giving information away, there is no easy way to tell who leaked it when it ends up for sale on the black market. By the way, the value of someone’s digital identity is between $2 and $5. Breaches occur in personal systems too. Only this month, the NZ Herald reported that a Hamilton man “watched powerlessly” as a hacker accessed his computer remotely; draining his PayPal account with online

purchases worth nearly $3000. So how does the SME operator manage a major threat to business security when web and digital channels have become core to modern business? First and foremost, it’s essential to keep software updated and protected against viruses, malware and spyware that can infect and corrupt it. If you are using Windows XP or an even earlier version, update to a later version immediately. The onus is firmly on individual users to update their software and ensure that adequate protection and firewalls are in place. Further, businesses must have clear and well-communicated policies regarding what information and sites may be accessed on work PCs; and guidelines that related to safe downloading of attachments. In this day and age, an ICT policy is essential. When it comes to software, cyber experts’ Krebson Security summarise;

• If you didn’t look for it, don’t install it; • If you installed it - update it; and • If you no longer need it, get rid of it! Please contact Janine Brinsdon if you have concerns over your cyber security. 968 2222 or email

The Alternative Board gives you access to the collective wisdom of other business owners in your local community. There is no need to feel alone anymore. Call Stephen James today

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Secure plates Take a minute


orth Harbour enjoys some of the lowest crime rates in Auckland. However we are not immune. Currently North Shore Police are seeing an increase in the number of vehicle registration plates being stolen. Stealing plates might seem like an annoyance and rather petty crime, says NHBA’s crime prevention support officer, Dave Loader, but these plates are used for getaway cars for more serious crimes or for “petrol drive-offs” at service stations. With the support of the Ministry of Justice, NHBA has invested in signage and secure number plate screws to help keep your company vehicles and staff cars safe and secure. We are offering to fit the security screws to your

Dave Loader makes one more vehicle safe

registration plates at no charge - on site, at your premises. Businesses in the NHBA district that would like this free service can contact Dave through 021 560 287 or

Is your workplace drug free? The impact of drugs in the workplace can be significant. Not only can it impact on productivity and safety but it can impact on other staff. And you do need to be aware as it can impact on staff safety. NHBA has invited The Drug Detection Agency on June 18 to provide an overview on what steps you can take to protect your business. They will provide tips on how to detect drug usage and will also cover the new Health and Safety legislation in relation to drugs, and provide some training on how to handle situations should they arise.

Save the date

Date: June 18 Venue: NHBA, 12 Parkway Drive, Albany. Time: 4.30 - 6pm Who should attend? Business owners, line managers, HR personnel managers, sales people and recruiters. Cost: Two members free, $25 for additional guests. Non-NHBA members welcome at $45 a person. RSVP now to secure your place. We only have room for 25 people. See:

A win:win


ant to save money, reduce clutter and protect your premises? Within the NHBA business district there are many companies that use pallets for their businsses and we are offering to facilitate a service whereby companies with surplus pallets can notify us and we will arrange to redistribute them to companies which are requiring pallets. Apart from saving money, and the planet, our pallet redistribution scheme helps keep your business area tidy and prevents crime by ensuring pallets are not left lying around for possible use as ladders to gain access to buildings.

More than 40 companies have already used this service so please give us a call if we can help you. Doug Rawlinson of Harvey Wholesale NZ Ltd has thanked the association for the help in getting him used pallets that he needed. “The service from NHBA has been outstanding. ... without the help from NHBA, I would be in major trouble in trying to get orders out, without pallets and the ongoing cost of having to buy pallets. Pallets are a very important part of our business, as about 80 percent of orders go out on pallets.” He says NHBA are doing a great job in trying to clean up the Albany area of pallets that were being dumped on the side of the road. “Thanks for the great service and I look forward to working with NHBA long term,” he says. Businesses which want to take advantage of this free service need to log into the NHBA web­site ( and complete the simple response form. Or feel free to contact Dave Loader on 021 560 287 or


Acting Inspector Scott Cunningham offers simple tips to ensure you can reduce the chance of becoming a victim of crime. As we start approaching the winter months and the hours of darkness increase, it is important to stay vigilant around security. Now is a good time to do a stock take of your security measures to ensure that you, your staff and property are not an easy target for opportunist offenders. The North Shore continues to be one of the safest cities in New Zealand, but this is not by accident. Police and community crime prevention activities play a big part in ensuring people are safe and feel safe while going about their business on the North Shore.  As a business owner, what can you do to reduce the chances of being the victim of a crime? Here are a few simple tips:

• Ensure that light fixtures, sensor lights and all light bulbs (both interior and exterior) are working. Lighting up your building and vehicle parking areas will provide a less inviting environment for offenders, but will also enhance and promote personal safety of your staff.

• Always ensure that your vehicles are left locked and secure even if you are only stepping away for a minute or two. Always remove highly desirable items such as wallets, laptops, bags and cellphones from the vehicle and if this is impractical then put them out of view, and remember always “Keep it locked”. We are still experiencing the theft of registration plates, these are then placed on other vehicles to disguise its true identity, allowing offenders to commit other offences such as burglaries, retail theft and petrol drive-offs. The theft of number plates is difficult to police, but a simple prevention tool is the fitting of tamper-proof screws to your vehicle, making the removal that much harder for the offender. These screws can be fitted to one vehicle or a fleet of vehicles by making contact with Dave Loader at the NHBA. If we all took these simple prevention measures it would have a significant impact on crime in the business area, making the North Shore an even safer community to live, work and play. Acting Inspector Scott Cunningham is the Area Prevention Manager (relieving), North Shore, Waitemata District, NZ Police.


How good is your attitude? Attitude affects your personal and business success. Change yours in 2015 says Sue Kohn-Taylor.


here’s nothing more energising than being around people who exude the energy of endless possibilities. These kind of people are needed in our lives if we wish to see what is achievable. But if we surround ourselves with people who believe in the harshness of life we are drained of energy and vitality. The choice is really up to us – do we want to reach the stars or do we want to stay on the ground constantly looking up, wishing we were among them? A strong, positive, resilient attitude will help elevate you to successful heights. What is attitude? It is the mental position you take about your work and personal life. It’s about how you think, which translates into how you act and for this reason it drives the formation of every event in your day. Your attitudes will determine your enjoyment of life or your disappointment in how things have turned out. I believe that attitude is everything and that it determines your success. A positive attitude is not about faking a happy face and a bright disposition. It is a positive way of responding. It gives you the power to be able to make a difference in your life and the people around you. When you can see things in a positive

light, you not only lift your own performance and satisfaction but you can influence other people’s attitudes and reactions as well. This becomes even more important within the workplace. Have you ever noticed how one person with a bad attitude can infect the whole team? Understanding that we are incredibly powerful and have the ability to influence others with our attitudes is an important concept for managers and business owners to understand. How can you create this culture within your organisation? A positive attitude in the workplace has been proven to create:

• a higher level of productivity • a solutions based focus • collaboration • creativity • openness to ideas • engagement • higher energy • strong team building. Each day, your attitude is challenged by

Life is 10 percent about what happens to, and around, you and 90 percent of how you manage it. people and by external factors. How will you react? Will you let your attitude stop you from moving forward? Will you let it ruin your day, make you angry, or influence you to give up? As I say to all my clients life is 10 percent about what happens to, and around, you and 90 percent of how you manage it. Attitude is a choice. We will always encounter challenging situations and people, however we have the ability to decide how to react and what our attitude will be. We can either react with anger, bitterness and frustration or we can stop, be self-aware, take a breath and choose to react in a more positive way and move forward. It’s your choice and under your control. Sue Kohn-Taylor Personal Development Coach Elevating Personal and Business Performance NHBA.ORG.NZ FYI MAY 2015 19


Understanding changes to the Fair Trading Act An amendment to the Fair Trading Act will make it possible for a court to strike out a term of a consumer contract which is “unfair”, notwithstanding both parties has agreed to that term. By Steve Barter.


erms of trade documentation forms an essential business protection. Without explicitly-agreed terms of contract you cannot obtain some obvious commercial advantages. Examples of such advantages are: i. Your right to recover interest on the debt and full legal costs if there is a default –a strategically vital provision; ii. limiting your liability for damages for negligence or breach of contract; iii. limiting (as far as legally possible) your warranty liability and clearly setting out the ground rules for warranty claims; iv. being able to register a security over delivered goods so that these can possibly be recovered if there is a default; v. recover a debt from a director of a company personally (by having a guarantee provision in your terms of trade). You don’t need too many otherwise-preventable bad debts to know that having well-constructed terms of trade (and having proper routines for the way they are signed) is a worth-while investment. And a business advantage that is under your control. Until now, you could legislate in these terms of trade as you saw fit, so long as you didn’t infringe consumer protection laws. However new legislation which came into force on March 17 will change that and introduce a new concept in contract bargaining. The amendment to the Fair Trading Act will make it possible for a Court to strike out a term of a consumer contract which is “unfair”, notwithstanding both parties have agreed to that term. The amendment applies to consumer contracts only – although a contract with a business may also be a consumer contract in


some circumstances. If one of the parties to the contract has most of the bargaining power and also prepared the contract, and there was little opportunity to negotiate it (almost always in a standard terms of trade) then a court can strike out a term which would cause a significant imbalance in the parties’ rights and obligations. Before you ring your business broker, you need to know this does not apply to the main subject matter of the agreement or to

terms which set the upfront price. The supposedly unfair term must be one which the trader can’t prove to be necessary to protect its legitimate interests and which would cause detriment to the other party. So where does that leave you with a provision requiring the payment of all legal costs when the usual scale of court fees for recovery is intended at recovering only two-thirds of these at best? Is it legitimate to deny the other party the right to recover damages in negligence that would

If one of the parties to the contract has most of the bargaining power and also prepared the contract, and there was little opportunity to negotiate it (almost always in a standard terms of trade) then a court can strike out a term which would cause a significant imbalance in the parties’ rights and obligations.

otherwise be recoverable? The Commerce Commission has already signalled the latter of these is probably “unfair”. The first paragraph of this article established that the major benefit of terms of trade documents was that they gave you commercial advantages that did not otherwise apply. Such terms may be the first in the firing line. Interestingly only the Commerce Commission can apply to the court for a ruling on a contract term. A consumer can certainly ask the commission to do so, but can’t make such an application itself. So there will be much to learn as this unfolds in the courts. Steve Barter is the director at Barter& Co, Commercial and Litigation lawyers, Albany


Foreign currency management and mitigation strategies Foreign exchange risk management is often thought of as a small part of business, yet for many it’s one that can have a large impact. By Neil Craigen and Tony Dench.


he New Zealand dollar is subject to large swings in value and the last nine months alone has seen a 13 cent range against the US dollar. Local importers and exporter are subject to significant FX (Foreign Currency) uncertainty as foreign exchange rates are continually changing, often without warning. FX rate volatility can have a major impact on a business’s cash flows and ultimately profit. A company doing all the right things in other areas but not managing their FX risk can experience large variations in costs and revenue due to factors not directly related to their business, industry or local economy. An unhedged importer could have seen a 14 percent increase in cost of goods over the last 12 months. Understanding a company’s business, cash flow certainty and cycle, competitor behaviour, exchange rate view and sensitivity to volatility are fundamental to managing FX risk and developing an appropriate policy. For example it may be too risky for a business to lock in exchange rates if no other competitors are hedging. Other considerations are the importance of flexibility and participation vs protection from FX rate fluctuations, as well as the ability and willingness of the business to actively or passively manage this risk. FX hedging possibilities include the simple vanilla forward exchange contracts (providing maximum protection but minimal flexibility and

participation), option based products as well as actively deciding to remain fully or partly unhedged. It is important to note that overhedging can be as risky as under-hedging. Tools to support customers in managing their FX risk include FX order boards, FX rate alerts and access to economic information and forecasts. Also important is the ability to transact deals and settlement safely and readily.

FX hedging possibilities include the simple vanilla forward exchange contracts (providing maximum protection but minimal flexibility and participation), option based products as well as actively deciding to remain fully or partly unhedged. It is important to note that over-hedging can be as risky as under-hedging.

Other risks related to foreign exchange include country, credit, fraud and settlement risk related to counterparties, financial providers/ systems and central banks. A topical example of this lies in the growing trade with China where importers and exporters alike are subject to ever changing rules and requirements in regard to local banking regu-

lations. Factors that need to be considered include what currency to send/receive, approved counterparties, documentation requirements and more. It is important to understand the various options and risks when dealing with mainland/offshore China and other markets. Trying to demystify all aspect of FX can be difficult. Foreign exchange risk management is often thought of as a small part of business, yet for many is one that can have a large impact. Banks are able to help customers manage their FX risk, allowing them to focus on core elements of the business. For example BNZ Markets Dealers help customers understand and decide on appropriate strategies and processes in a manner that’s suitable for their business, and their appetite for risk, certainty and simplicity. Customers have access to the FX Desk’s market info and risk management services, but also access to a seamless FX Online system which allows them to easily and quickly book FX deals, make and receive international payments and transfer across foreign currency accounts safely and conveniently. For further information please contact Neil Craigen ( on 09 924 3893 or Tony Dench (Tony_Dench@ on 09 415 3931 – your local Senior Partners based at the BNZ Partners Centre in Constellation Drive. NHBA.ORG.NZ FYI MAY 2015 21


WorkSafe event for the Asian business community The Health and Safety Reform Bill – what does it mean to me and my business? Information evening presented by WorkSafe in Chinese and Korean.


e are very pleased to announce a tailored event for NHBA’s Asian business community that highlights the implications of the new Health and Safety Act. The information will be presented by WorkSafe – the New Zealand Government organisation responsible for ensuring that everyone who goes to work comes back home healthy and safe.

Who should attend this event? All business owners or operators in the Asian Business Community as this legislation will directly impact your business and its profitability if you fail to comply. Penalties for significant breaches in legislation can include imprisonment

and steep fines close to $1 million, so it is essential that businesses act now to understand the changes. WorkSafe representatives will be available after the event to answer any individual queries and would welcome dialogue with individual business owners, by appointment, at their Albany premises. An added extra for those attending the event will be the opportunity to display information regarding their products and services coupled with an informal opportunity to network. Further details are to be made available soon.

Save the date When: 5.30-8pm, Tuesday 23 June Where: AUT Millennium Institute, 17 Antares Place, Albany RSVP:

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FYI May 2015  

The magazine of the North Harbour Business Association

FYI May 2015  

The magazine of the North Harbour Business Association