Issue 105 – July 2013
P ubl i cat i o n o f th e E m p lo y e rs & M a n u f a c t u re rs A s s o c i a t i o n In c
INDONESIA: SURPRISINGLY SIMPLE
20 hot tips from Innovest
Did the manufacturing inquiry miss its moment? In this issue: • • • •
More friendly GST coming How to make a power or gas complaint New OH&S system a work in progress Engage your employees and make more money
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BusinessPlus is published by : The Employers and Manufacturers Association (Northern) Inc 159 Khyber Pass Rd, Grafton, Private Bag 92066, Victoria Street West, Auckland 1142 Ph: 09 367 0909 or 0800 800 362 Email: firstname.lastname@example.org Website: www.ema.co.nz Chief Executive: Kim Campbell Advocacy Manager: Bruce Goldsworthy Manager, Employment: David Lowe Manager EMA Learning: David Foley Manager EMA Membership & Marketing: Mauro Barsi Whangarei Louise Morrison 09 459 1501 mob 027 6870604 Waikato Denis Quigan 07 823 9311 Russell Drake 07 838 0018
On the cover...
NZ's ambassador to Indonesia, HE David Taylor, Lance Sheppard of Cableways and mission leader Sir Ken Stevens of Glidepath sample some shrimp crisps at a factory visit in Surabaya, Indonesia. There's more on p24
EMA advocacy at work
Manufacturing inquiry a missed opportunity – By Kim Campbell, EMA CEO
Positive signs for business – By Phil O’Reilly
Employee committees not the whole answer to cutting workplace injury and death – By Paul Jarvie
BusinessNZ’s Phil O’Reilly appointed BIAC Chair
Become a DHB board member, a job worth doing
Improved, more user-friendly GST ﬁling service available
From The Innovest experience
Free resolution service for electricity and gas complaints
Have your say on proposed changes to NZ’s Internet structure
New health and safety system takes shape
An engaged workforce delivers higher proﬁt
Once listed, shout about yourself!
Should you own telecoms infrastructure?
Designer Bex Mikaere
Tru-Test wins tough test: Auckland Supreme Export Award
Advertising Sales Colin Gestro (09) 444 9158 colin@afﬁnityads.com
Twelve days tracking down trade: Indonesia report
Bay of Plenty Terry Arnold 07 575 8401
mob 027 203 0694 mob 021 686 621
mob 021 662 656
Rotorua / Taupo / South Waikato / Whakatane Clive Thomson 07 348 0334 mob 0274 372 808
BusinessPlus Editor Gilbert Peterson Ph: 09 367 0916 email@example.com Writer Mary MacKinven firstname.lastname@example.org Published by Mediaweb
Photo credit: Ruth Le Pla
ISSN No. 1176-4953
Employment chat: Flu jabs, OH&S and hazardous substances, and are there really entitlements for school hols?
How to recruit for competitive advantage
27 Our Vision. Your Success
EMA: advocacy at work TPP talks drill down to nitty gritty
Labour Party covers priority issues
New Zealand’s Lead Negotiator at Ministry of Foreign Affairs and Trade, David Walker, discussed the current state of play with the David Walker Trans Pacific Partnership Free Trade Agreement (TPP) negotiations at the latest EMA Trade and Foreign Policy Committee. Following the most recent round of negotiations in Chile, the talks get down to gritty areas in the next round being held in Malaysia this month. Issues to be resolved are around intellectual property, pharmaceuticals, state-owned enterprises and rules of origin for goods. He said with Japan a new member in the negotiations, the TPP’s terms will apply to 45% of New Zealand’s exports. He also compared the proposed 16-member Asian Regional Comprehensive Economic Partnership (RCEP) with the TPP. Traders can use the free trade agreement most favourable to them when faced with a choice which one to use eg CER or TPP. Trade agreements do not affect tax; only cross-border trade mechanisms.
Labour Party leader David Shearer, Finance spokesman David Parker, and Dr David Clark (Commerce and Small Business) David Shearer talked openly with members at EMA’s Policy Forum. The issues covered included: • 90 day probationary period • the New Zealanders’ low savings and repercussions for spending • trades training • capital gains tax • company tax • assistance or encouragement to the manufacturing sector • energy policy • government procurement • a longer parliamentary term and • Auckland’s growth All three have strong business backgrounds.
New look e-report Communication with members has been refreshed with EMA’s new look fortnightly email newsletter, e-report. E-report presents EMA news, our media releases and commentary, other EMA activities on members’ behalf and
Visit to inland port A tour of the inland port, MetroPort at Onehunga/Penrose in Auckland owned by the Port of Tauranga preceded the latest meeting of EMA’s Infrastructure and Local Government Committee. Participants then met at the nearby premises of the National Road Carriers Association to hear about the port’s business and plans, its use of truck and rail, and (l-r) Leonard Sampson of KiwiRail, Graeme Marshall for a discussion on freight of Port of Tauranga (POT) and Darcy Hart of Tapper transport for New Zealand Transport which is owned by the port. importers and exporters. BusinessPlus – Exclusive news, advice, learning and networking
government’s news on the business front that members might not see elsewhere in the media. From now on e-report will also list more courses and activities coming up from EMA and our partner organisations. E-report, and our monthly Business Plus magazine, which is all about news review and in depth commentary are provided at no cost to all member organisations. Plus, our Employer Bulletin is emailed weekly to individuals in member organisations with responsibilities for human resource management. Inquiries about these publications should go to 0800 300 362 in New Zealand and 1800 300 362 from Australia.Visit www.ema.co.nz to find out more.
IRD lunch June 11, 2013 Naomi Ferguson, Commissioner and Chief Executive of Inland Revenue, met a small group of EMA Board members and invited guests for a catch up on IRD’s priority issues early in June. Topics covered the opportunities for New Zealand participation in the department’s investment of over $1 billion on new IT systems, company tax rates, transfer pricing, the interpretation of IRD tax rulings, and the department’s priority issues.
By Kim Campbell, Chief Executive, EMA
Manufacturing inquiry a missed opportunity (First published in the NBR, June 21st)
The Independent Report on the Inquiry into Manufacturing rather missed a golden opportunity by diverting its focus onto the policy prescriptions of its sponsors, the opposition parties.
ut it was a pleasure seeing a group of our politicians with a newly discovered respect, even enthusiasm, for the role played by manufacturing in an advanced economy such as ours aspires to be. After all, the producers of New Zealand’s fine products from our farms, forests and seas would be much the poorer were it not for the value added by our manufacturers. Its even more true that our foodstuffs have to be processed, or manufactured in short order lest they start to deteriorate. On top of that, there’s the productivity enhancing machinery and equipment made and sold in New Zealand, which also earns some $3 billion a year in exports. The missed opportunity in the report is that it didn’t take adequate time to spell out this value, value which is in terms of innovation, skills development, exports, and in knowledge-rich jobs which pay far more than in sectors such as tourism or retailing. Its a pity because New Zealanders are by and large ignorant of the economics underpinning their standard of living, and the report’s publication could have used its moment in the media sun to help enlighten them. Instead it conveyed an idea to the public that manufacturing is on its knees, a sunset industry needing additional policy prescription hand-outs to keep it viable. Nothing could be further from the truth. The report also fails to articulate the exponential scale of change taking place to manufacturing processes worldwide, and the great strides being made in New Zealand to embrace these changes. They describe in brief that an increase in
the value of manufacturing output may not require a commensurate increase in the numbers of people directly employed in manufacturing. Forty years ago when post war manufacturing in New Zealand was enjoying a heyday it was not uncommon for manufacturing businesses to operate their own transport, accountancy,
“The report didn’t take adequate time to spell out this value, value which is in terms of innovation, skills development, exports, and in knowledge-rich jobs which pay far more than in sectors such as tourism or retailing.”
financing, design and other services all included in the numbers of people they employed. Today services like these are typically ancillary to a manufacturer’s core business. Production and trading complexity, and specialization have seen them steadily outsourced, so much so that their proliferation elsewhere in the economy led to some commentators in the 1980s and 90s to proclaim the advent of the services economy. As if services could be delivered in a vacuum somehow independent of tangible goods being produced or the people producing them. As if we were all going to get rich serving each other burgers and fries. Outsourcing practices and quickly advancing automation meant the numbers employed in manufacturing steadily diminished, and the skills of
those employed changed, while the value delivered rose in dollar value terms. Employment in the sector reached a peak of 320,000 fulltime jobs in 1985; in the ensuing six years under the Labour government’s liberalization programme 80,000 jobs were axed from the sector. Now manufacturers employ about the same number as in the early 1990s while delivering 20 per cent more in GDP terms, the sort of productivity growth needed to lift our standards of living. The Inquiry Report, rather than examining in detail how manufacturing had changed and how that change is accelerating, or noting that manufacturing is to be lauded, and is delivering more value than ever in an economic environment that is much more open, unprotected and unsubsidized than just about anywhere else, tried to prove the reason for its commissioning, that there is a crisis. So I found it less than persuasive and the recommendations underwhelming. But there is good in it.The suggestions on government procurement have merit and should be examined further even if sound steps on this are underway right now. The emphasis placed on capital investment is laudable though the policy settings called for are basically unintelligible. Innovation and R&D are also well incentivized at present with the current regime less likely to be abused than a tax credits system. To complement them we recommend a blanket reduction in company tax to make us more competitive with comparator nations. Other recommendations in the report are also well catered for in our present policy settings. On monetary policy we are pleased to see the leader of the Greens has come to his senses and for reasons known only to him has withdrawn the idea of printing money to lower the currency. We are on record as fully supportive of the Reserve Bank Act in its present form and in the stewardship of the current Governor Graeme Wheeler. email@example.com
BusinessPlus – Exclusive news, advice, learning and networking
BusinessNZ’s Phil O’Reilly appointed BIAC Chair B
usinessNZ Chief Executive Phil O’Reilly has been elected Chair of the Business and Industry Advisory Council (BIAC) to the OECD. The BIAC is the voice of business at the OECD – the world’s foremost provider of integrated
statistics and fact-based policy recommendations. The BIAC network includes national business, industry and employer associations from OECD members and observer countries, as well as international sector-specific associate experts. Mr O’Reilly said it was
an honour to serve the BIAC, whose advocacy was vital for growth and employment internationally, and a great opportunity for New Zealand business to contribute to this work. Mr O’Reilly has been a member of the Board of the BIAC for three years. He will continue in his role as Chief Executive of BusinessNZ in addition to serving as BIAC Chair.
Become a DHB board member, a job worth doing E lections take place later this year for seven members to serve on the boards of the country’s 20 district health
HUMAN RESOURCES MANAGER Penrose, Auckland • 12 month ﬁxed term - parental leave • Flexible hours – 24 per week • Must be able to hit the ground running! As a key business partner for the Packaging New Zealand group this position works closely with ﬁve manufacturing sites inﬂuencing and advising within all areas of HR. This is a senior operational role with the support of a full time HR Co-ordinator. WHAT YOU NEED: To be effective in this role, you will hold a relevant tertiary qualiﬁcation, preferably have experience within manufacturing, FMCG, retail or logistics industries and be familiar with operating within a unionised environment. You must have a ﬂexible approach to the delivery of HR services and also be prepared to travel. (For more details please refer to the online listing on Seek) HOW TO APPLY: To submit your application, please email a copy of your CV and Cover Letter to firstname.lastname@example.org In accordance with Company Policy the successful candidate will be required to undergo a pre-employment medical examination, drug test and police check. CHH will meet these expenses. Please Note: We are taking Direct Applications only BusinessPlus – Exclusive news, advice, learning and networking
boards (DHBs) and the call is out for people with business knowledge to put their names forward. Mention DHBs and most people think of their public hospital, but the boards’ business ranges much wider, covering care in the community, aged care, pharmacies and GPs as well as addiction, contraceptive and mental health services, plus health promotion activities such as anti-smoking programmes. Retiring Waikato DHB chair Graeme Milne points out DHBs are large enterprises, up there with the big private sector organisations. His DHB has a budget of $1.2 billion and employs 6,000 staff directly and 17,000 indirectly through the health provider contracts it awards and administers. Some DHBs are even larger. “These are such complex organisations that if you don’t have some degree of financial literacy and an understanding of governance you will struggle. You really do need to understand balance sheets and cash flows to be effective,” he says. Greg Gent, who was appointed by the Minister of Health to Northland DHB agrees it is a challenging role. “Funds are limited and demand is ever increasing so ensuring each dollar is spent well is a very high priority.”
But he finds the job fascinating as well. “The public health system attracts people motivated to improve the lot of others and I have enjoyed seeing that.” From his time as Waikato DHB chair, Graeme Milne believes board membership is the sort of job some of the better directors in the land would find attractive. “I think people believe the Ministry of Health has fairly tight control over the DHBs – and to a certain extent it does. But considerable decision-making power is centred on the DHB board table and what members can do is quite powerful.” Graeme Milne admits the remuneration rates are not as good as in the private sector, but adds: “As an experienced director you have already put yourself into a reasonably comfortable financial position so isn’t it time to put something directly back into the community?” In Northland, Greg Gent says: “What I’ve learnt over many years in other governance roles I can use in this one for the betterment of my community and that actually feels good!” “I also think it’s important for people to realise they can expect no more from their health sector than the quality of governors they are prepared to elect to their DHB – the job is that important.”
Make a note Nominations for the DHB elections open July 19 and close at midday, August 16. Voting papers for the postal ballot will be sent to registered voters beginning 20 September. All votes must be in by noon on Saturday 12 October. For more information, go to www.health.govt.nz/dhbelections
Improved, more user-friendly GST ﬁling service now becomes available I
f you file your GST using the online form on Inland Revenue’s website, IRD advises that things are about to change! From 10 September that filing method is being replaced by the recently launched myIR secure online services GST filing service. Over 90,000 businesses are already using the service and they are reported to love the instant confirmation they get that their file has been received.
paper returns. But don’t worry you’ll get a reminder when your next return is due. If you’re still filing paper returns, it’s never been easier - switch to online filing now!
online services. This is just the start of Inland Revenue’s provision of digital services for businesses. You can expect to do more things digitally in the future. But don’t wait until September to set up your myIR account, do it now! www.ird.govt.nz/gstreturns/ ird-campaign-page-gst. html?id=homepage
Access other IR online services Once you have a myIR account, you’ll have access to Inland Revenue’s other
Features Other features of the improved service include: • many of your details are pre-populated in the return • you can save a copy for your own records • it saves you time in the long run by having all of your GST electronic records in one place • you can track a return’s status • it has built-in checks and calculations to help you get it right • you’ll get reminder emails, including one 3 days before the filing due date if you haven’t already filed it
Backing Job Creators. Receive a 20% discount on transaction fees on business banking accounts.
Of course, you can also use myIR to file Employer Monthly Schedule.
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If someone else in your business does the GST, the new service allows business owners to delegate responsibility for filing the return to another person. Or if your business owners are not actively involved in the business they can appoint an executive office holder who can then set up a myIR account and delegate filing responsibility to the person who does file the GST. Once the first GST return is filed using the new service, Inland Revenue will stop sending you
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BusinessPlus – Exclusive news, advice, learning and networking
By Gilbert Peterson
From The Innovest experience I
nnovest last month brought together several hundred prospective investors and entrepreneurs as well as an unparalleled presenter line up for the Innovest conference event. Top of the bill was David Berkus who has owned his own entertainment and software businesses for over 50 years. He is the managing partner of two private equity finds and chairmanDavid Burkis emeritus of Tech Coast Angels. While his investments have earned a 97% rate of return since 1981, just four of his businesses make up 90% of his wealth. The first company he started at age 15 put him through university and he’s been actively seeking out new enterprises to advise and invest in ever since. Along the way David has gathered many fascinating insights. Here’s 20 of them told in 20 minutes: 1. Where there’s mystery there’s magic. That is, there is a business opportunity where people, customers, can’t do something for themselves.
2. Management quality trumps a quality plan. 3. Believe in your gut instinct – the story here concerned a $38million investment in an internet company that went bust. 4. Never run out of money – when you do you become a victim. 5. Fight for balance on your board of advisors/directors. David told the tale where one board member’s view held sway on a business redirecting wifi systems for hotels, and ended up losing money as a consequence. 6. As an investor advise, but never run the business for its entrepreneur. “Noses in, fingers out.” 7. Solve the every $3million crisis before it happens. This is where a company builds up to employ about 20 people (at about $3 million revenue) at which point the owner must introduce another layer of management, and with it a degree of mistrust. Quality control can be lost and it can also manifest as a working capital crisis. 8. Review your data regularly and act on the results. You need to find the right data to grow
your business, for operations, marketing and finances. Hone your sense of urgency. Push on, lest your business is obviated before it has a chance to prove its value. Know the market before committing resources to meeting it. Eyeballs aren’t everything – though a game in Korea had four million users it could not be transferred to the US successfully. Hire for your core, partner for the rest. Never let go of the key idea but outsource the rest of what’s needed to build the business. These days a business can be built for far less than ever before. The person with the idea is the most important. For example, a person saying “ I ran for cancer” is far more telling than saying they attended an event. Complexity kills customers – keep it simple. There may be gold where you don’t expect it. The byproduct of a project may be the real oil, not what the project was set up to do. There are three kinds of business buyers: financial, strategic, and emotional. The last is the holy
EMA’s Caltex winner in May: Conlinx CONLINXX, a container logistics business is owned by the Ports of Auckland to operate the Wiri Freight Hub adjacent to rail and highway connections. CONLINXX is our winner this month of the Caltex $500 Starcard. Conlinxx uses a dedicated train, a fleet of container trucks, and its secure intermodal freight hub to bring the country’s largest container port to central Auckland’s doorway. The company lists its benefits as: • Avoiding peak traffic congestion • Staging and managing container flow efficiently and avoiding resource downtime BusinessPlus – Exclusive news, advice, learning and networking
To take advantage of flexible storage options • Eliminate demurrage • Importers can collect containers directly from the Wiri Freight Hub • Exporters can deliver containers to the Wiri Freight hub at the same cut off time as the sea port - CONLINXX will manage the shuttle to the port in time for the vessel. • To create a robust, secure Supply Chain • Remove waste in empty running and empty container equipment positioning The Wiri freight hub is well on the
way to achieving one of its original business goals of saving +100,000 truck movements a year to and from the sea port. For more contact : Stephen Owles Stephen.email@example.com Ph: 09 927 6888 -021 930 894
Conlinx GM Stephen Owles, left, and CEO Reinhold Goeschi
grail because they will always pay far more. 17. Timing is everything in the sale of a business. 18. Fail fast! If an idea is not
working get out fast. 19. Coach your entrepreneurs before attending any important meeting or event to avoid gaffes. 20. Some opportunities will get away.
Natural products mega trends Bob Burke from Boston, a natural products expert, enumerated the mega trends evident in the US foods market with statistics and anecdotes to back the story. Among the big trends are: • Dr Oz (You On A Diet et al) has eclipsed Oprah for clearing off the shelves • Whole foods • Non dairy drinks – oat milk, vegan not soy • Bean/legume snacks • Pop corn – 20 brands • Coconut oil – 5 of the top 10 slots in cooking oil • Ethnic – eg Indian food • Gluten free – certified, and seen as anti-inflammatory, giving more energy • Raw foods – dehydrated, not cooked, sprouts, chia seed (Mama Chia) • Vegan – celebrating green and
• • • • •
• • •
sustainable; ‘meatless Mondays’ Stevia and Monk fruit Bob Burke (BioVittoria) for sweeteners Probiotics – Bifudus Regularis Ancient Grains – Quinoa, spelt, millet Free range, anti biotic free, certified humane Verified Non GMO Project – 2100 retailers now participate Ethics in food production – rating animal welfare, sustainability, traceability and good stewardship Food as medicine Organic is a huge deal “The US consumer will pay a premium for grass fed pasture beef.”
Innovation changing Rob Trice covered changes in the innovation landscape: 1. Losing concentration as it was when driven by government and corporate R&D. 2. The financing model is changing with eg crowd funding 3. Markets are becoming ecosystems and competition evolving into blends 4. Shorter life spans; more disruption The drivers of change now are: • Less money and more start ups • Rising speed of change • Open innovation is increasing and so is global competition. • Moore’s law is holding up • Bandwidth is a commodity, energy costs are down and capital is abundant. He quoted Marc Andreesen (Netpay):
“Software is eating the world.” And “if you manage your performance incrementally you will lose your competitiveness exponentially."
There was more, much much more… From John Loughlin, Ross McKenzie (Hansells) David Drake (The Soho Loft), Michael Davies (Endeavour Partners), Craig Richardson (Wynyard Group), Kim Campbell (EMA), Bennett Medary (Simpl Group)…………….. BusinessPlus – Exclusive news, advice, learning and networking
Flu jabs, OH&S and hazardous substances, and Q. One of my employees has resigned and she says she is taking a personal grievance because I forced her and all the staff to have a flu vaccine or they would be fired. - Dan
instructions to prevent physical harm and stress to themselves and others. This applies only to circumstances that the employer knows about, or ought reasonably to know about. But it is never certain someone will get the flu. A person might believe flu vaccines are harmful, or be allergic to them and it is their right to hold whatever views they like for themselves. People smoke cigarettes, which one could argue should be banned for the harm they do, but in New Zealand people have the freedom to choose whether they smoke of not. There are of course restrictions around where people may smoke. The pressure you put on staff to have the flu vaccine could be considered to cause undue stress although in relation to stress, an employer will probably not be found in breach of the (OSH) legislation unless it shows itself in some identifi able way - as a physical illness, such as a heart condition or as some form of psychological trauma, for example. While you may encourage people to get the flu vaccine it is not recommended you put your employees under undue pressure to do so, as they should have the freedom to make their own informed choice.
Dear Dan Offering the flu vaccine has many benefits, however, if in fact you did force them to have the vaccine with a threat of dismissal, you may have some big problems. You need a lawyer and EMA has experienced employment lawyers in our EMA Legal team. The laws relating to OSH, employment and human rights would make this untenable in New Zealand; although there is no clause I know of in any law that says “thou shalt not vaccinate”. At court, a decision would be made – against you, I’m betting. And your reputation and employee retention levels will suffer even if nothing gets to court. Employers have to take “all practicable steps” to ensure employees are not harmed while at work. Yes you can require staff to be tested for taking drugs – if you have a policy in place. Yes, you can require staff to wear protective clothing and follow
Q. All this talk of health and safety law changing. What will it mean for us as a manufacturer? We use a lot of glues and chemicals? - Bob Dear Bob Existing law, the Hazardous Substances and New Organisms Act (HSNO), applies to much of what you do. It covers the safe moving, storage and handling of such goods. The legislation proposed aims to beef up employee committees and employee representation, so they have more power than now to insist on improvements where there is a health or safety risk, or an actual injury. The law might impose new penalties on negligent employers but also provide incentives to comply with the law and make workplaces safer. You can be sure there will be more compliance costs for all employers, not just manufacturers. EMA will keep business informed once the draft law is released for consultation, and offer training to meet any new requirements when it is enacted. Q. School holidays are coming up again and I dread them. Two staff regularly take more time off than they have paid leave entitlement to, and they are poor at telling me when they are coming back. - Sue
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WHAT EMPLOYERS ARE ASKING ADVICELINE THIS MONTH
are there really entitlements for school hols? Dear Sue If this is an ongoing issue you need to raise and discuss your concerns with both of your employees. Tell them why it matters to you and them, always approaching these issues in good faith. Ask what their plans are for this holiday (July 12 to 28 for most schools). Ask them for any leave requests to be put in writing now, and in future as soon as possible before the holidays. Consider any issues and options and let them know your response as soon as possible. It may be that you cannot manage with them away at that time and you need to ask them to make other arrangements at their homes. You can refuse leave, but it would be wise to consider having a policy on managing leave, and a plan for the year ahead so the issue does not arise every time the school holidays come along. If they continue to insist on being away without your approval, even unpaid, this could amount to misconduct and grounds for disciplinary action, with the possible outcome of terminating their employment. On the other hand you may allow them to take leave, even unpaid, and hire a replacement on a fixed term to cover the period of their absence.
the A-Z of Employing – a manager’s guide on more than 100 speciﬁc employment topics, at www.ema.co.nz
“You can refuse leave, but it would be wise to consider having a policy on managing leave, and a plan for the year ahead”
To inquire about becoming a member to gain access to this free AdviceLine service, please contact EMA Membership at the numbers above or through EMA.co.nz.
ARE YOU GETTING EXTRAORDINARY TEMPORARY BUSINESS SUPPORT? Horizon, Auckland’s temp and contract specialist, has a reputation for providing:
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Free resolution service electricity and gas complaints B
usiness people not able to resolve a complaint with an energy company but don’t want the cost of taking it to a tribunal or the courts can use the Electricity and Gas Complaints Commissioner Scheme (EGCC). The EGCC can look at complaints where the amount in dispute is up to $50,000, and up to $100,000 if the electricity or gas company agrees. There is no cost to complainants for using the service. Over 40% of the complaints the EGCC handles are about billing, with customer service, meters, supply, and disconnection making up the next 40%. Here’s two examples how the EGCC can help sort out complaints about billing. • A business owner got estimated bills from her electricity retailer for seven months because the meter reader could not find the business. She rang the retailer several times. After nine months the meter was read and the business owner got a back bill for $6,892.49. The EGCC helped the parties reach a settlement which
included a written apology from the retailer, a 40% discount to the back bill, and eight months to pay the balance of $4,135.49. • A business whose electricity supply was on half-hourly metering complained it was billed too much for electricity because the bills did not include a discounted rate for network charges. The business said the rate would reduce its bills by $3,500 over a four month period. The business complained to the network company, but it got bills from the electricity retailer. The EGCC worked with the parties to resolve the complaint, beginning by confirming the electricity retailer was responsible for managing the complaint. The business got a refund of $2,948 and the complaint was settled. If the parties to a complaint cannot settle it between them, they can ask the EGCC Commissioner to make a recommendation. The Commissioner has been asked to make recommendations also for a
number of complaints where business people sought compensation for loss after power outages. While the Commissioner says there is no entitlement to an uninterrupted supply of electricity, and therefore no basis for compensation, she has sometimes recommended a company make a customer service payment to a complainant where there was a failure to provide information. If a complainant accepts a recommendation but the member company does not, the Commissioner can issue a binding decision, meaning the member has to act on the recommendation. The EGCC is funded by a levy on member companies and since April 2010 has been compulsory for electricity and gas companies to be members. Anyone with a complaint about a member company can use the EGCC. You do not have to be the customer of a member company to make a complaint about it. Visit www.egcomplaints.co.nz, and search the case notes.
Changes proposed to NZ's Internet structure
usinesses with a .nz website or e-mail address should be aware of a proposal to change New Zealand’s Domain Name System (DNS). The Domain Name Commission Limited’s (DNCL) proposal, is to open domain name registrations directly at the second level. Should the proposal go ahead, this means businesses that want to register, say, anyname.co.nz might be able to simply register anyname.nz. The ‘.co’ portion is no longer included. This would mean domains like .co, .gen, .kiwi, .net and .org would no longer be required, though people could still opt for them if they wanted to. DNCL polls suggest New Zealand businesses support this change. In a 2012 study 59% said they supported the change. Only 14% were opposed. In the same study, 41% of businesses also said they would use a anyname.nz name in preference to their current domain if they were able to. 39% said they would stick with their current domain. DNCL Chair Joy Liddicoat says if the proposal went ahead, an advantage is it would offer more choice to .nz domain BusinessPlus – Exclusive news, advice, learning and networking
name holders. “One potential issue is that people might feel they need to register their domain names at both second and third levels, for example getting both anyname.co.nz and anyname.nz.” New Zealand businesses are urged tell DNCL their opinion through the
submission process. Full details of the consultation document and background material are at http://dnc.org.nz Online submissions can be made. The cut-off date for submissions is midday Wednesday 31 July, 2013. For further information contact email@example.com
New health and safety system takes shape I From 1 July, the health and safety inspectorate of the Ministry of Business, Innovation
n December the new, stand-alone Crown agency WorkSafe New Zealand will assume oversight of the workplace health and safety system; laying out the groundwork has begun. Group Deputy Chief Executive of MBIE, Lesley Haines said the ministry’s new inspectorate model started operating from July 1st. The biggest change is to proactively identify potential harmcausing practices before people get hurt, rather than just reacting to events. “Our inspectors will be spending more time out in workplaces –inspectors will undertake significantly more workplace assessments and over time the number of inspectors will increase,” she said. “Inspectors will focus on the sectors where we know the most deaths and other serious harm is happening and where required, businesses should expect a firmer regulatory stance from our
inspectors. “At least 80% of our workplace assessments will be targeted to industries outlined in the Health and Safety National Action Agenda 2010-2013. “For 2013/14, we will concentrate on safer forestry harvesting, safe use of machinery in manufacturing, preventing falls from height in construction, quad bike safety and the Canterbury rebuild. “Our hazardous substances focus will be automotive spray painting, and the boat building and metal finishing industries,” Ms Haines says. “We will still investigate accidents, but not respond in person to everything. This is a new approach for New Zealand and it will free up our resources to maintain focus on the highest risk areas, on systemwide analysis and planning, and improving the consistency and quality of our work.” For more: www.business.govt.nz/ healthandsafety
and Employment is placing greater focus on proactive and preventative work with workplaces. There will now be three separate and specialised teams of Health and Safety Inspectors: Response, Investigations and Assessment. Most inspectors will be in the Assessment Team carrying out planned assessments of workplaces, focused on the priority areas. From now on all Workplace Health and Safety notifications should be sent to their Response Team. Investigations will be undertaken by a specialist team of inspectors, separate from the assessment inspectors. You need to know … Your organisation’s responsibilities for notifying workplace health and safety matters have not changed, but now they should be sent to their central Response Team. Do this by calling 0800 20 90 20 Or go to: www.business.govt.nz/healthandsafety Or email healthsafety.notiﬁcation@dol.govt.nz.
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By Phil O’Reilly Reilly
Positive signs for business For business, a number of signs indicate the New Zealand economy is starting to gain momentum.
ver since the lowest point of the global financial crisis in 2008-9, business has been looking for signs of recovery. Now there are clear signs of an upswing. Business and consumer confidence is increasing, along with household spending. Both the manufacturing and services sectors are showing solid growth. The monthly survey of New Zealand manufacturers, the PMI (the BNZ–BusinessNZ Performance of Manufacturing Index) shows the manufacturing sector is well into expansion mode, and the service sector (the BNZ-BusinessNZ Performance of Services Index - PSI) not far behind. The farming sector came through last
“Premiums should be set independently of Government to ensure they reﬂect actual insurance principles rather than political considerations.”
summer’s drought in better shape than expected. Once the drought broke, it was followed by warm temperatures in late autumn, giving farmers a burst of grass growth before winter began. Agricultural exports are finding good prices in overseas markets. China, New Zealand’s largest export customer, continues its dominant position with solid growth
prospects of around 7.5% per year, providing good prospects for dairy and other product sales. However growth prospects for Australia, New Zealand’s second largest export customer, are more muted.
ACC levies reduce Business and households will be pleased with proposed reductions in ACC levies over the next three years – a move that will lift disposable incomes and provide some stimulus to the domestic economy. The scope of the ACC reductions is large. Levy reductions of around $300 million are forecast for 201415, rising to around $1 billion in 2015-16. While welcome, the reductions are simply a result of the Government keeping levies artificially high over the past couple of years, reinforcing the fact that premiums should be set independently of Government to ensure they reflect actual insurance principles rather than political considerations.
Employee committees not the whole answer to T
he Independent Taskforce on Workplace Health and Safety went to some lengths to present the case for developing even stronger employee participation in managing workplace health and safety, so much so their argument overbalanced. They seemed to overlook that for workplaces to be kept safe, managers as well as employees need to be deeply engaged in the planning, investment and implementation needed to make them so. The Taskforce took much from the Australian model where unions, employees and government develop and sign off on workplace safety measures but forgot that the big majority of New Zealand workplaces are not like those in Australia. The Taskforce report says ‘the evidence suggests’ that workplaces will become safer as a result of employee participation without identifying any facts supporting
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its case that this will happen. Surely it is unwise to put faith in recommendations not based on hard evidence. The 15 recommendations from the Taskforce aim to be game changing: a large increase in workplace health and safety inspectors; the new Crown agency WorkSafe New Zealand taking over from MBIE; and with written guidelines to help company directors ensure health and safety at work is taken very seriously. In the Taskforce’s eight recommendations on accountability the focus remains on employees and systems – no change there, though the whole safety review is about the need for change. A further three recommendations are about motivating people with incentive carrots for doing the right thing, and penalty sticks for getting it wrong. In all the report falls short of being a game changer because line managers, and in fact managers at all levels, are excluded
“Managers have a dearth of knowledge about how to make workplaces safer because for the last two decades they have been required to pass safety issues on to their employees’ workplace safety committees” from the discussion. Ironically the Taskforce noted managers have a dearth of knowledge about how to make workplaces safer because, by default, for the last two decades they have been required to pass safety issues on to their employees’ workplace safety committees for
Household debt One concern in the domestic economy is increasing household debt. While many households paid down debt during the latter part of the global financial crisis, enthusiasm for debt reduction has since gone off the boil. Rising house prices giving a ‘wealth effect’ offer a temptation to take on more debt, even though it doesn’t represent a real increase in wealth. It’s understandable debt should increase at a time when servicing costs are relatively low and interest rates are at historic lows, but there is a danger that when they rise again households may get into strife should the economy falter. We shouldn’t assume that interest rates will remain at 5-6% into the future, when on average over time they are more likely to have been close to double figures. The warning is to factor in increased debt servicing costs when making major purchases.
“Factor in increased debt servicing costs when making major purchases.”
The rising housing market A rising housing market traditionally results in increased consumer spending, which is measured today in increased electronic transactions and improved retail sales. This raises the risk of inflationary pressures and it could lead the Reserve Bank to raise interest rates. The risk makes it all the more important to be clear about the reasons
for rising house prices, and to ensure any artificial constraints on supply - such as local government planning restrictions are removed. In Auckland, several years of pentup demand for housing is now being reflected in higher house prices and greater construction activity. More immigration will also add to the upward pressures on housing demand. However a ‘hot’ housing market is not in New Zealand’s best economic interests, though hopefully we will escape any consequential interest rate increases which are unhelpful for both business and households. Overall, the improved economic indicators add up to good news. The last five years have been a difficult time for many businesses, which have nevertheless shown much resilience and fortitude in weathering the post-crisis economic storm. Phil O’Reilly is Chief Executive BusinessNZ www.businessnz.org.nz
cutting workplace injury and death By Paul Jarvie
resolving. Indeed the mantra has been to give employee workplace health and safety representatives the responsibility for making their workplaces safe, and workers have now been meeting in ‘health and safety committees’ to manage injury in their workplaces for many years. But the accident and death toll has not abated. By doing more of the same we risk getting more of the same – a poor workplace safety performance. It hasn’t worked. However the Taskforce is not to be dissuaded. It recommends giving employee safety committees even more power to persuade their bosses. It’s like putting a plaster on a burst pipe. Nevertheless the guidelines recommending company board directors consistently ask about, and monitor their firm’s adherence to sound safety practices are a good thing.
But the Taskforce was silent on what is required of the managers who are responsible for implementing change at the coalface, and for employing, and ultimately keeping people safe. Yet it’s the managers who arrange for the issuing of health and safety compliance certificates, investigate safety breaches, and employ and train workers to perform their duties in accordance with safety requirements. Safety systems are designed and implemented by managers, and safety information and gear is provided by them, and they are just as much in need of training and in the related resources to ensure workplaces are made and kept safe. But for the managers there are only possible penalties. On top of the oversight, technology and production processes are changing the safety profile of a business all the time and its managers are usually the first to
see how and where these impacts are occurring. EMA fully supports employee participation, but for the government’s new regulatory agency, Worksafe New Zealand, to be successful in its mission by drastically reducing workplace accidents, it will need to widen its stakeholder group to include all managers. They need to be engaged and brought into the picture. The old saying “if you’re not part of the solution you are part of the problem” squarely applies especially here. Employers want change, not business as usual, but they fear the trust being placed almost exclusively in employee participation and employee committees is misplaced. Paul Jarvie is Manager of Workplace Health and Safety for the Employers and Manufacturers Association. Paul.firstname.lastname@example.org
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by Ed Hurst, Consulting Practice Leader, Kenexa Australia/NZ
How to recruit for competitive advantage Kenexa clients have become very sophisticated in how they implement people solutions to drive strategic and commercial outcomes.
eople assessment and talent acquisition programmes usually start with a clear model of the organisation’s goals, skill/behavioural requirements, mission-critical jobs, likely gaps in their talent pipelines, and the consequent opportunities to achieve competitive advantage. Similarly, projects that seek to implement the results of employee engagement surveys often begin with the question: ‘What sort of organisation do we need to become?’ Then the questions to ask in their survey are decided to determine the solutions that will flow as a result. This is extremely encouraging; increasingly we find ourselves working with clients to ‘fine tune’ their business/ people in ways that make a tangible difference to the bottom line, rather than without a goal. However, one thing that endures is a tendency to allow people solutions to
remain in silos when, if brought together, far more value could be generated commercially and also in terms of creating smarter and fulfilling workforces. Some recent projects highlight the scale of this opportunity. In a large bank, we started noticing trends not only in how engaged people are, but also by what engages them. Traditionally the response to differences in the workplace and in the community would be to look at how to communicate better with staff, how to improve leadership, management, rewards and the like. But what if we could start hiring people for ‘engageability’? If we could understand individual traits associated with feeling engaged by the organisation’s environment/culture, rather than trying only to fix how we do things, we could start finding people who are likely to enjoy the place for what it is. In a specific project, we identified in one business unit that people are more
Strategic Business Goals
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TALENT SUCCESS METRICS
Establish Linkages Between Business, Talent and Solution Success Metrics
“Process to deliver strategic results by bring people solutions together”
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engaged if they are more autonomous, allowed to be forward thinking and motivated by challenges. We also found differences between people working in urban and regional locations – engagement for regionally located people were driven more by community factors and, in urban locations by a strategic vision of the future. These are only examples. The point is that considering individual traits/ talents/motivations in conjunction with engagement in your organisation’s context can open the possibility of a stronger culture, higher performance and tangible business outcomes. In another project, this time in a professional services firm, we started noticing another interesting thing – leadership styles/behaviours are associated with patterns of engagement. In one business unit, the leaders whose people are most engaged tend to exhibit an inspirational and empowering style; in another business unit, it was a higher level of practical support and structure from leaders that drove engagement. Suddenly, it becomes possible to shape leadership development, selection and reward around the practices/styles that drive employee engagement. We can build people solutions around engagement outcomes and leadership solutions that contribute to those outcomes –business results will accrue as a consequence. At its heart, this approach is very straightforward. Start with a clear picture of the commercial/strategic goals you are seeking; next define the people factors that drive the outcomes you seek. Keep an open mind – and recognise there will be variations in the answer across your organisation. Follow up with integrated solutions that target those outcomes. Finally, develop a focused set of outcome metrics to track results. This year, EMA is proud to be sponsoring Kenexa’s 14th annual Best Workplaces Survey, run in association with The New Zealand Herald and also supported by Kiwibank and MBIE. Visit www.bestworkplaces.co.nz to register now or for more information.
Its proven. An engaged workforce delivers higher proﬁt J
ack Wiley’s High Performance Institute is demonstrating with hard evidence that when employers gain the respect of their staff and can inspire them, the results are delivered in better workplace performance and higher profit. He put the proof of the case to the Kenexa Engagement Conference in Auckland on June 20. “Inspire, respect, reward” was the theme, and a better performing workplace will be the outcome, he said. Jack broke down the approach required into terms of what employers and employees want from their work relationships, to help grapple with the topic and to frame them as questions. What do employees most want from their managers and ceos? What is the most important thing you want from your top leader? Or the person you report to? When do ceos ask their people what they want from him/her?
Quoting Ralph Emerson, he said “Our chief want (from our managers) is someone who will inspire us to be the person we want to be.” The flow of responses from the floor articulated the type of characteristics sought, things like consistency, commitment, visibility, transparency, ability to communicate, to inspire, with humility, and who will walk the talk. Then came the numbers from the many studies, across a range of indices. For instance, the employee engagement of those with leaders who inspire, respect and reward their staff will be demonstrated in employees sense of pride in their work (90%), job satisfaction (89%), commitment (76%) and advocacy for their employer (86%). Amongst US companies rated the top quartile for engagement with their employees, the return on assets was 6.7 times compared to the bottom
quartile which Jack Wiley was 1.7 times. The operating margin of the top group was 14.9 times; the bottom quartile was 7.0 times. “There’re a lot of reasons why companies should work at this,” Jack said. “Recognising and respecting employees doesn’t cost anything for the type of respect and recognition they are looking for. “Employees globally are not satisfied with the recognition they get for their work.” But while their own pay level (as part of appropriate and fair compensation) accounts for only 10% of their concern, the actual pay practices do matter, as does how they’re implemented, because the issue is about fair pay. Jack said, given the pay back from having leaders who can inspire, respect and reward, when selecting candidates for leadership positions should not these attributes be taken into account?
REGISTER NOW Survey Available 1 May to 30 August 2013 www.bestworkplaces.co.nz (09) 378 2003
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Once listed, shout about yourself B
usinesses need to take the opportunity to shout about themselves if they list on the stock exchange, to make the most of their new public profile, said Tony Falkenstein ONZM, founder of Red Eagle Corporation and the listed company Just Water. He was speaking at the first workshop in the 2013 ‘Business Intelligence Breakfast Workshop’ series run by Lowndes Associates lawyers. EMA partners with Lowndes for the series. The topic: “New Zealand Stock Exchange (NZX): why list a mid-cap?” A mid capitalised business is a middle sized business with market capitalisation or value of about $75-300 million, said chief executive of the NZX Tim Bennett. He said that raising a company’s profile could be a benefit but some individuals don’t want the public prominence or to have their wealth disclosed. Some directors worry that continuous disclosure requirements could provide too much information to competitors. The other factors from a public listing can bring with it: • Fears of having independent directors who might inhibit the CEO’s plans or disagree with him; • Possible management team or style changes; • The costs, eg, of registering, of visiting offshore investors, and additional requirements for such as secretarial and ongoing audits. But the benefits include: • Provision of a valuation, and
Tony Falkenstein, Just Water; Tim Bennett, NZX; Chris Milne, Murray & Co; and Paul Hartley of Lowndes Associates
currency for acquisitions; Ability to offer easily tradable shares to employees; • Ability to raise additional capital is relatively straightforward and at much lower cost; • The business can be prepared for sale or succession by having been audited, having independent directors and a true market valuation. However, the process of listing takes several years of preparation; its not a way to make a quick sell. In New Zealand 30% of companies are listed compared to 68% in Australia. Mr Bennett said the NZX was working to educate business and investors about the costs and benefits of listing, with •
Making it Lean By Barry Nolan “It’s a good and relevant read. I would recommend it to anyone intent on maximising returns for their business” – Peter Townsend, CEO, Canterbury Employers' Chamber of Commerce It shows you how Lean is the way to go to achieve greater productivity and reduce costs.
structural changes underway such as to the finance market would make listing easier. Third speaker Chris Milne is director of corporate advisory services at Murray & Co. He said the effectiveness of listing depended on the liquidity the company could attract. With regard to public disclosure, he said that was no silver bullet as raising a company’s profile might not always be positive, for example if a company faced trading difficulties its brand could be damaged. Lowndes Associates partner Paul Hartley said the outlook overall was looking brighter; the NZX had new leadership, confidence was generally up, and equity markets were performing well.
$39.90 incl P&P and GST “I have been in the IT ERP space for over 30 years and this is the best book that I have seen on Lean. After reading the book I have a better understanding of Lean that I had developed over all the past years. The book presents the concepts and application of Lean very concisely and clearly.” – Michael Ligudzinski, Minneapolis, Minnesota USA
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Gilbert.Peterson@ema.co.nz BusinessPlus – Exclusive news, advice, learning and networking
Healthy staff means higher productivity
Covering staff with Southern Cross health insurance means less sick days, quicker return to work1 and it’s an attractive incentive for retaining and recruiting employees. It all adds up to a more productive and proﬁtable business. Your proﬁts, not ours.
To ﬁnd out more, call Southern Cross Health Society on 0800 323 555 or visit our website healthybusiness.co.nz
Healthy people healthy business 1. TNS research 2009.
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By David Spratt, ICT Associate for TUMG
Should you own telecoms infrastructure? I
t’s time for CIO’s and CFO’s to have a serious discussion around whether they continue to own infrastructure or even source from New Zealand providers using the traditional cost-up paradigm. TUMG’s experience in the marketplace shows that owning server hardware can be up to 10 times more costly than buying ‘Infrastructure as a Service’ from Google+, Amazon Web Services or similar. And out-sourcing storage infrastructure services to New Zealandbased companies can be up to 30 times more expensive than a global web-based solution provider. Of course, to go the way of the cloud, you need to be able to stomach some risk. With web-based services everything grinds to a halt if your internet service or connection goes down. The best way for CFO’s and CIO’s to put this business risk into
context is to use Eftpos NZ as a benchmark. If Eftpos goes down, even for a very short time the direct impacts on their bottom line are severe – both in terms of lost income and lost credibility. Few businesses need 100% connectivity 24 hours a day, seven days a week like Eftpos. So businesses need to ask, where is the risk threshold for you? New ‘Infrastructure as a Service’ offerings from the global players like Google, Amazon, Microsoft and RackSpace are challenging the more conventional options of owning storage infrastructure or out-sourcing to New Zealand-based providers. When you put this in the context, for example, of Google’s recent tripling of its free storage offer from 5GB to 15GB across cloud storage, Gmail and Google+ photos, the attractions multiplied. Since Google launched Google Drive
last year, it has also put competitive pressure on other smaller cloud storage suppliers like DropBox and YouSendIt. The trend is unlikely to reverse. Increasingly we find businesses are looking to the web to source their IT service and infrastructure, a phenomenon clearly demonstrated last month when Amazon found it had to change the venue of their annual Web Services conference last month. The company had to move its conference from its original venue to the Aotea Centre in response to an unprecedented 2000+ registrations. If you want to explore your IT storage options, Total Utilitities Management Group can give you an unbiased assessment of the range of services available and how they fit with your business model. For advice, call TUMG’s ICT associate David Spratt on 027 5749141
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Tru-Test wins tough test: Auckland Supreme Export Award
he New Zealand maker of scales for weighing cattle and meters for measuring animal milk output – Tru-Test Group – is doing such a fine job on distant shores with these and other agritech products that it won the Supreme Award in the Air New Zealand Cargo ExportNZ Auckland Awards 2013. The award was announced at a special event in Auckland on June 21st.
Zealand businesses and to “the ingenuity, courage, persistence, adaptability and enthusiasm of New Zealand exporters.” He said this year the panel of judges was of exceptional quality and experience, including the CEOs of some of Auckland largest and most successful companies. “Their willingness to contribute their time and knowledge for the betterment
The award categories winners were: Westpac Exporter of the Year (total sales over $25 million) Tru-Test Group – the world leading manufacturer of livestock scales and milk metering equipment. QBE Insurance Exporter of the Year (total sales under $25 million) Best Bars – designer and manufacturer of original equipment for a wide range of motor companies and new vehicle distributors. BDO Food & Beverage Exporter of the Year Greenshell New Zealand – engaged in farming, processing and marketing Greenshell™ Mussels under the Ikana brand. Prize: $10,000 use of The Food Bowl processing technology
CFO Ian Hadwin and the Tru Test team celebrate winning the Supreme Award accolade
The supreme winner, selected from amongst the winners of the categories outlined below, also won the Westpac Exporter of the Year (total sales over $25 million). A special presentation was made to Tony Nowell CNZM, as the NewstalkZB 2013 Exporters Champion. The award is made every year to an individual for services to exporters. Mr Nowell’s Queen’s Birthday honour was for services to business. He has contributed pro bono to many export-related and other not for profit organisations. He formerly held top and senior management roles in hotel management, L’Oreal and Sara Lee Corporation in Indonesia and Singapore, as well as chief executive of Griffin’s Foods and Zespri International in New Zealand. The convenor of judges, Barry Squires, head of international banking at Westpac Institutional Bank said he found the quality of the entrants a tribute to New
of the export community is greatly appreciated," Mr Squires said. Chairman of Export New Zealand, Auckland, Graham Kearns said once again he was amazed by the quality and variety of companies out in the export arena, taking calculated risks, pushing boundaries and achieving successes most New Zealanders know nothing about. “I congratulate all that had the courage to enter and tell their amazing stories, and especially the winners." The Supreme Award’s prizes include attending an invitation-only CEO Forum organised by New Zealand Trade and Enterprise, and the pleasure of driving the latest E-Class Mercedes car for six months, courtesy of Coutts Mercedes, Newmarket. The winners of each Award category receive a supply chain management consultancy review offered by the Awards sponsors Air New Zealand Cargo, BDO, Westpac Institutional Bank, Baldwins Intellectual Property and Douglas Pharmaceuticals.
TNT Express Emerging Exporter of the Year Kagi Jewellery – New Zealand designer jewellery brand specialising in beautiful, versatile, affordable jewellery. Prize: a Golem Productions Ltd 5-minute marketing video valued at $5,000. Baldwins Intellectual Property Commercialisation of Innovation for Export Southern Spars – designer and manufacturer of yacht masts, booms and rigging. Endace Tech StartUp of the Year TranscribeMe – offering new generation voice-to-text transcription. Prize: Three months at the Kiwi Landing Pad, Silicon Valley, USA. www.hookedonexport.co.nz
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By Gilbert Peterson
Twelve days tracking down trade: Doing business in Indonesia, a recent trade mission found, is surprisingly easy.
n a first visit one delegate chalked up what he is sure will turn into a million dollar plus order. He returns there in August to follow up what is, from the outside looking in, the most promising contacts you could hope for. Indonesia’s reputation has been described as consistently difficult; its not. The people themselves are disarming and friendly; they acknowledge their country has a reputation for corruption, and they say over and again they are working to change that. There is plenty of trade to be done without getting involved, and many traders seem able to avoid it. One Kiwi with 20 years there told us he has never had to deal with it. Our smaller businesses were also able to interact easily and comfortably with counterparts often from very large enterprises. Besides the country’s fundamentals are too large and attractive for our traders to overlook any longer - 240 million people in an economy growing 6% a year, more in some areas. East and West Java enjoy competing with each other over which is growing faster. Their representatives highlight
The mission visited Sekar's large shrimp processing plant at Surabaya employing 3000 people with exacting international hygiene standards exporting to Japan and Europe
the numbers showing them off most favourably, because they all interested in attracting investment. From New Zealand that doesn’t necessarily mean food, even if Jakarta’s supermarket shelves are crammed with Australian dairy products. Why not New Zealand’s? Indonesia’s policy emphasis is on selfsufficiency, in food and other things and is perhaps more to do with conserving foreign exchange. Hence their sometimes erratic policy about turns. New Zealand beef, onions and potatoes have been on the receiving end of those. Nonetheless Indonesia imports $US12billion of food products annually from a total food and beverage market valued at $US112billion. The country is immensely fertile. They could feed more of their enormous population with some help from New Zealand technology adapted to their tropical climate On the roof 50 ﬂoors up at Paciﬁc Place, a major mall hosted by the project’s NZ engineer, BECA. needs.
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“We want your help from New Zealand to feed our people and grow our economy so we can afford to buy more
Paciﬁc Place mall, Jakarta
of your products,” was a refrain heard several times, from government officials and private sector business people. Food technology education, food safety – AsureQuality was on the trade mission, as were suppliers of refrigeration and other food production related technology – are
Indonesia report part of the opportunity. But of course it extends beyond food and food producing technology to building, telecommunications and a lot of other infrastructure. The modern buildings of Jakarta are impressive – the sector is a $US20billion market. New Zealand engineers BECA have been part of it for 40 years, as they have for geothermal development. Indonesia’s first geothermal power plant was designed and installed by New Zealanders and today just about all the expertise in the field was educated in New Zealand. It’s a record New Zealand wants to build upon – Indonesia is hard on the Pacific rim’s volcanic edge with extensive geothermal capacity available. And they want the power though progress has been indecipherably slow in getting new projects underway. The potential is said to be for 29GW with only 5% installed. Another sector itching to get started is aviation. Many new runways and 45 new airports are planned – it’s the world’s fastest growing aviation market, and similar for telecommunications. The country is leap frogging over the sort of legacy telecoms we use; there are 135 million internet users and 180 million mobile phone users, with 36% smart phone penetration. Indonesia has the world’s largest number of Facebook users – 17.4 million. The development of the nation’s fibre optic network is equally ambitious. “Indonesia is a contact market,” says New Zealand Trade Commissioner Tim
Anderson. Tim has been there for several years and is fluent in the language, a big bonus. “Don’t expect to build business here remotely,” he says. To which I can only agree. Get there. Remedy New Zealand’s under representation there for your products and services. You can’t do it from here, and the market is crying out for a wide range of New Zealand technology and know how. The experience itself will be a large part of the reward.
West Java's local government ofﬁce in Bandung is a legacy from the time of Dutch rule.
Trade delegation members chat with mission leader Hon. Maurice Williamson
Gilbert Peterson travelled to Indonesia as a manager of the trade mission organized by Export new Zealand Auckland and the ASEAN New Zealand Business Council from May 18 – 31st.
Indonesia Mission led by Minister Hon. Maurice Williamson and Sir Ken Stevens – a class experience Highlights: • 52 delegates including 20 from an NZTE convened aviation sector group. • 16 major business networking events/activities. • 4 cities – Jakarta, Bandung, Surabaya and Bali – the first NZ trade mission to travel beyond Jakarta. • A major conference in Jakarta on New Zealand was addressed by Indonesia’s Vice Minister Bayu, the chairman of Indonesia’s Chamber of Commerce (KADIN) Suryo Sulisto, Hon Maurice Williamson and Sir Ken. 200 attended. • Sales expectations directly from mission activities well over $1million • Numerous business contacts Our partners The mission enjoyed the wholehearted support and co-operation from NZ’s Ministry of Foreign Affairs, especially our Ambassador HE David Taylor, and equally from NZTE’s team in Jakarta led by Trade Commissioner Tim Anderson. Tim’s team of three Business Development managers were dedicated to the success of the mission for the duration. A huge vote of thanks is due them. Generous sponsorship from the ASB/Commonwealth Bank in Indonesia was made available to cover the major New Zealand Forum in Jakarta and the gala dinner. BusinessPlus – Exclusive news, advice, learning and networking
EMA MEMBER PROUD MOMENTS NOTICEBOARD
World’s top technology provider to SMEs Kinetics Group is proud to win the Worldwide 2013 Microsoft Small Business Partner of the Year Award. The company was honoured for demonstrating excellence in innovation and implementation of customer solutions based on Microsoft technology. The prestigious win comes on top of winning the Small Business Partner Award in New Zealand five times including the last three years in a row. Andrew Hunt, Kinetics CEO says, “We are absolutely delighted to be awarded on the global stage for doing something we regard as necessary to meeting our clients’ needs. “SME businesses must be nimble, agile and able to compete against the scale of larger businesses, and we love helping them do that with tailored, innovative solutions. “We are hugely proud of our team and our clients for giving us the opportunity to demonstrate our work locally is world class.” Microsoft officially presented the Award to Andrew at the Microsoft
Andrew Hunt receives the award from Microsoft NZ’s managing director Paul Muckleston (l) and director of small midmarket solutions and partner group, Chris Ichter (r).
Partner conference in Houston Texas early this month. Microsoft Corporation vice president World Wide SMB, Thomas Hansen, said: “Kinetics has a deep understanding of the needs of its small business customers and consistently provides the right mix of solutions to help them meet their unique business needs, save money and remain competitive.
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BusinessPlus – Exclusive news, advice, learning and networking
Kinetics Group Ltd was established by Andrew in 1986 to assist New Zealand businesses with proactive IT planning, networking support and computer coaching. The recognition from Microsoft has helped Kinetics drive growth and rapidly expand with new services nationally and especially with a recent expansion in Canterbury.
Kingsland business opportunities highlighted in video A series of interviews has been cleverly crafted into a promotional video by a local production company and turned into a marketing opportunity for Kingsland, says Kingsland Business Society manager Christine Foley. The aim of the project was to present the Kingsland area in Auckland as a highly attractive destination for creative business innovation. It features a set of interviews with a range of locals from architects and rug designers to manufacturers. The film took several months of planning and was shot in high definition to capture the edgy, stylish essence of Kingsland. Kingsland Business Society commissioned the film to showcase the area for investors and business to create more opportunities for technology and creative industries. Mrs Foley says, "A lot of people are drawn to the idea of a creative hub and when they see cutting edge companies setting up here in ‘Berlin warehouse’ style, they want to relocate here as well.” Kingsland’s central location, transport
Kingsland business owners discuss the ﬁlm that promotes doing business in the area. From left: Jason Mills [Kingsland Print], John Arkley [Racebrakes], Carol Little [Woolskin Products/E B Tolley] and John Constable [Constable Hurst Architects].
connections plus an abundance of cafes and ethnic restaurants also act as drawcards, she says. Featured companies include EMA
member business Carol Little of Woolskin Products/E B Tolley. It can be found at www.kingslandnz.com
Revolutionising the briefcase A Hamilton company is producing aluminium presentation cases wowing businesses around the world. Fogi Ltd call their presentation case The Youmans Capsule, after company founder and case designer Rick Youman. The Youmans Capsule offers a new way to present work executives, sales people and creative professionals such as architects, designers, artists, photographers, developers, engineers and planners. Opening the capsule immediately showcases the work: the lid becomes the display stand. Designer and artist Rick couldn’t find a simple and stylish way to carry and present his work. It became a problem fellow creative professionals asked him to resolve. Photographers wanted a large carry case to present large and expensive
photographs. He set his mind to designing a solution to complement the creativity of the artist, satisfy the practicality of the designer, and the aesthetic demands of both. He says,“I started the journey with a friend who repaired and made special aircraft parts. I wanted to make a streamlined aluminium case that was selfhinging and able to stand up.” Over four years worked with Sydneybased kiwi industrial designer Adam Laws and a small team of manufacturers in New Zealand he created the elegant and functional presentation case. The capsule can be easily opened with one hand allowing the presenter to focus on his or her clients. “Whether using story boards or a laptop or tablet to present Rick Youman work, the Capsules allow the presenter to pitch to a client
The Youmans Capsule
seamlessly without fumbling around for product or trying to smooth out rolled up plans.” Stainless Design provided their precision engineering skills and Finex, their state of the art anodizing plant. Both are partners in the project. Another key partner is Axiam, a plastics company based in Wanganui that won an industry award in 2012 for the plastic components it produced for the Capsule. BusinessPlus – Exclusive news, advice, learning and networking
Out & About Eco Smart Business Workshop, Auckland
| 1 Neil Green [Rinnai NZ] | 2 Stephen Bean and Nitesh Dutt [Damen Office Furniture] | 3 Mohammad Thompson [Design Tints] and Nathan Hannam [Focus Digital Security Solutions] | 4 Alan Russell [Rinnai NZ] | 5 Hauke Pasche [International Certifications] and Alice Baillie [Focus Digital Security Solutions] | 6 Annette Lusk [Sustainable Edge] and Christopher Metcalfe [Finewood] | 7 Dave Wilkinson [IDS] | 8 Mike Cowie [IDS] | 9 Rear: Mark Dixon, Stanley Hebden and Nico Putter; front, Maggie Li and Tracey Appleton [Avis] | 10 Ross Wilson [International Certifications] and Thalia Evans [World Moving and Storage]
Go Global Exporters Conference, Auckland
| 1 Linda Everett [Onehunga High School] | 2 John Rigby [Otago Southland Employers Association], Trina Snow and Kelda Hunter [Buy NZ Made Campaign] | 3 Andrea Brady [Catalyst Communication Consulting] | 4 Josephine Rudkin-Binks and Andrea Fairclough [CarbonZero] | 5 Deidre Shea [Onehunga High School] | 6 Clare Birch [Bluelab Corporation] | 7 Andrew Nicol [Agoge] and Ben Simons [Ministry of Foreign Affairs and Trade] | 8 Greg Jarvis [Bluelab Corporation] | 9 Christopher Boys, Suzanne Chamberlain and Michael Pettigrew [Katabolt]
Team Leader 22 Toolbox Managing Team Productivity Issues Learn to manage issues around productivity within your team without ‘breaking the rules of engagement’. Hamilton | Deborah
Managing 29 Employee Leave
Leadership 24 An Introduction
Learning to identify the difference between a leader and a manager will help you to grow on either path in your career.
Develop your assertiveness skills to enhance your personal effectiveness and create more successful team outcomes.
Understand the legal obligations of employee leave entitlements as they relate to the various Acts in today’s workplace.
Auckland | Deborah
Hamilton | Craig
Auckland | Deborah
Delivering 30 Service Excellence An Introduction
Business Planning 30 With Business Dominoes Every manager and leader has to think strategically, but how do you do this and gain real, tangible outcomes to help your business profit and grow? This conference will give you practical tools to successfully strengthen your business and grow your market share. We will open your mind to new ways of thinking, strategising and re-sculpturing your business.
Conference Contacts Karen Joe | 09 367 0959 | email@example.com Training Contacts Kevin Chambers | 09 367 0958 | firstname.lastname@example.org
Learn the exceptional customer service skills that will take you to the top of your game.
Craig Garner | 09 367 0907 | email@example.com Deborah Law-Carruthers | 09 367 0947 firstname.lastname@example.org
Tauranga | Deborah
Caryn Leitgeb | 07 839 2710 | caryn.leitgeb.@ema.co.nz
Auckland | Karen
Did you know, EMA Tailored Training can deliver a wide range of workshops fully customized to reflect your workplace… at your workplace? Contact Deborah Law-Carruthers
email@example.com Ph 09 367 0947 | Mob 021 636 799
Finance and 8 Accounting The Fundamentals
Performance 1-2 Management The Fundamentals Gain insight into how you can use employee feedback and performance reviews to help achieve desired outcomes.
Auckland | Deborah
Presentation Skills Getting Your Message Across
Learn to provide best-practice operational health and safety guidelines to help minimise discomfort and injury in your organisation. This course is run as four 2-day blocks, 1 block a month.
Learn the fine art of effective presenting to become a more confident and persuasive speaker.
Auckland | Deborah
Auckland | Kevin
Auckland | Deborah
Lean Master 9 Class Business Process Improvement Learn how to run a more productive business by eliminating non-value-adding activities and encouraging value-adding activities.
Developing your knowledge of accounting fundamentals will enhance your financial understanding for a better bottom line.
National 5-6 Certificate in OSH (Workplace Safety) (Level 3)
Auckland | Deborah
Health & 12-13 Safety Representative Training (Stage 2) Review and build on the skills, knowledge and competencies developed in Stage 1 Health & Safety Representative Training.
Managers & Team 14-15 Leaders Conference This year’s conference looks at how to be an inspirational leader. Learn to read body language, manage a restructuring, deal with difficult people, plan strategy and more. Plus, hear a case study from The Warehouse’s group CEO, Mark Powell, and take part in helpful personal development break-out sessions! Auckland | Karen
Auckland | Craig
www.ema.co.nz | firstname.lastname@example.org
Membership Rewards Savings Your Business Can Actually Use! Being a member of New Zealand’s pre-eminent business association not only delivers vital support and advice to your business but also entitles you to an exclusive range of incentivised products and services. Our Rewards scheme is exclusively for you, our members, so take advantage of these great offers and start impacting your profitability today!
Buy NZ Made
Kiwibank Business Banking and the EMA are both passionate about New Zealand business and supporting our own. As an EMA member, receive a 20% discount on your transactional banking and 3% on business MasterCard interest rates. Find out more about our range of business products and services today.
The Buy NZ Made trademark is a great marketing tool for businesses. Providing a unique selling point and value to your brand. As a member you receive a 20% discount on your annual membership to the Buy NZ Made Campaign.
Southern Cross Healthy people. Healthy business. When you offer subsidised health insurance for your employees, your business benefits all the way to the bottom line. Telecom NZ Providing a full range of Internet, data, voice, mobile and fixed line calling services for customers in Australia and New Zealand. Caltex We have teamed up with Caltex to help minimising your fuel expenses and offering members 5.2 c/l off the pump price of Petrol and 10.5 c/l discount at dedicated Caltex Diesel stations nation wide. OfficeMax Members have told us that office supplies are an area where they would like to make significant savings, so we thought we would deliver just that. OfficeMax have come on board with EMA to bring members the very best deals available on the market.
Vero Members receive up-to 30% off your Quotable Value (QV) valuations and preferential valuation rates year after year on general insurance. Custom Fleet No matter what size of fleet you operate EMA have negotiated exclusive discounts for members across a vast array of models to suit all Kiwi business types. Horizon Recruitment As a ‘thank you’ for your loyalty Horizon Recruitment are offering a $300 gift voucher or charitable donation of your choice. Total Utilities Cut your utilities bills on a ‘no savings, no fee’ basis by joining Total Utilities and leverage buying muscle by collaborating with fellow members and participating in bulk buying tenders for electricity, LPG and waste services.
For more information on these great offers and to ensure you don’t miss out on the latest exclusive member only discounts, simply search ‘rewards’ on our website: www.ema.co.nz