The Profit Winter 2011 Issue

Page 1



PRO features 7


Pro Q & A: Adri Isbister


What businesses get World Cup Boost


Social Media - Can Facebook boost your business?


New Supermarkets for Havelock North and Flaxmere?


Get on it with UnisonFibre


Go Girls - Hawke’s Bay women on top of their game


Amalgamation - MPs give their views




PRO experts 16

PRO Techie by Wray Wilson


PRO Sales by Brett Burgess


PRO HR by Sue Whiteley


PRO Primary by Brent Paterson


PRO Biz advice by Cedric Knowles


PRO Finance by Nick Stewart


PRO Customer by Dr Virgil Troy


PRO Property by Paul Harvey


PRO Legal by Emma Dawson





VS 40


PRO regulars 4-5

PRO HB – what’s happening in the Bay


PRO Motoring – Damon Harvey reviews the new BMW 5 Series Sedan


PRO Out and About – photos of key events in the Bay


PRO Diary – upcoming events in Hawke’s Bay 33


For my brain to grow in my first three years I need:


Choose your own special PORSE Educator who will receive free PORSE Training in BabyCARES and Early Childhood Education. 0RUH NLZL SDUHQWV DUH FKRRVLQJ 3256( ,Q +RPH &KLOGFDUH WR JLYH WKHLU FKLOGUHQ WKH EHVW VWDUW LQ OLIH <RX FDQ WRR





EQUALITY EQUALS BETTER PERFOMANCE Gender should never be an issue ...

By Damon Harvey

Up until the beginning of this year our office had six females and one male (me!) and by the way that’s the same ratio I have at home.

I know from experience that having women in leading roles in a business is important and adds to the bottom line.

However we’ve now corrected the over balance in the office and now have equal representation (4 and 4) and it’s interesting to see the business’ dynamics change.

A Canadian study has tracked corporate performance and found that those companies with two or more women on their boards in 1995 were more likely to be industry leaders in revenues and profits six years later in 2001.

There’s more banter in the office, added creativity, perhaps less multi-tasking but more importantly I personally think that productivity has lifted from the equal and combined forces of men and women. A union CEO (now dismissed) recently made a big faux pas when he said women were less productive than men while there’s also been debate about lack of women representation on public and private boards.


Rob Fyfe of Air New Zealand recently spoke at a Leadership Summit and said the airline took a strong stance on equality.

Another report by McKinsey & Company, Women Matter, found that “the companies where women are most strongly represented at board or top management level are also the companies that perform best, on both organisational and financial performance” Up until now The Profit has featured more men than women. This has not


been on purpose but nonetheless has been the case. Well we’ve changed this in our winter issue and have unleashed a series of stories on Hawke’s Bay women succeeding in business, whether that’s locally, nationally or internationally. We meet business television presenter Nadine Chalmers-Ross, communications supremo Heather Shotter, Super Mum Jenni Giblin and Brisbane based Wendy McDonald.

Congratulations to category winners and if you have any suggestions for nominees please email me

We also sit down and meet the new Radius Medical CEO Adri Isbister.

See below some of the photos from the event.

We profile a local business that has been building one of the high profile Rugby World Cup complexes, and what’s happening on the local property development scene.

The Profit is the leading business publication for Hawke’s Bay. It is your opportunity to tell the success you are having in business. If you have a story idea or would like us to photograph your event please contact us at 878 3196 or

Also the last issue of The Profit celebrated our first birthday and the Profiteer Awards. We held a salubrious function at Elephant Hill with over 120 guests.

TANK 7241

You’re local, we’re local, let’s make

local calling for businesses

free! *

Since we’re a local business, we’d thought it would be nice to help other local businesses do business with other local businesses, locally. So we made local calling for businesses free – you can call any local business landline and it won’t cost you a cent. And hey, local residential numbers are also free, so get calling. Locally, of course!


ETn N R I A 0508ee, no-oblsigoantio **

r i for a fst comparf our o co one from al reps. c lo 38 0508

*Restricted to 2000 local, landline-to-landline minutes per month, per line. Available on all Airnet Orange Business Plans that include a phoneline. Subject to Airnet’s Orange Network coverage capability. Call 0508 AIRNET or visit to see if you are covered. **Comparing an Airnet Orange Broadband and Calling Business Plan with the broadband and calling business plan from your current supplier.


broadband + calling THE JULY - SEPTEMBER 2011



Hawke’s Bay

LOCAL BUSINESSMAN WINS DISTINGUISHED ALUMNI AWARD Local businessman Rod Drury has been honoured for his achievements in commerce, by Victoria University in Wellington. Rod graduated as a Bachelor of Commerce & Administration from Victoria in 1987. The Distinguished Alumni Award was presented to Rod at a gala celebration in the Old Town Hall, which was the scene of his original graduation. Rod was recognised as a skilful and successful entrepreneur who has started and grown a series of New Zealand technology companies and inspired many others to be entrepreneurial. He is passionate about New Zealand and building a strong high-tech business community. Rod said “Entrepreneurship is a journey. Each project builds more experience, capability, networks, capital and confidence, leading to repeatable success and bigger more significant businesses” His most recent venture is Xero, an accounting software company he founded and launched on the New Zealand Stock Exchange (NZX) in 2007, becoming one of the first high-tech firms to list on the NZX. Rod is CEO of Xero.

LOTTERIES COMMISSION BOARD Hastings chartered accountant and director TTony Mossman, of Barnes Mossman, has been appointed as a member of the New Zealand Lotteries Commission Board.

BUSINESS GROWTH FUND D BNZ and New Zealand Trade and Enterprise (NZTE) are providing up to $1.5 million to support the expansion of businesses. Owner-managers of Hawke’s Bay SMEs can now apply for funding, available from the BNZ andd NZTE, off the NZTE to t take t k advantage d t th successful Owner Manager Programme (OMP) run by The ICEHOUSE. The BNZ has committed $750,000 funding, while NZTE’s contribution will be through its Management Capability Vouchers. Business owner-managers can now apply to have the cost of The ICEHOUSE OMP reduced from $20,000 to $15,000. Additionally, eligible businesses working with a Regional Business Partner may be able to use Management Capability Vouchers from New Zealand Trade and Enterprise to reduce the cost of the course by a further $5000. For local information contact Jenny Brown at the Hawke’s Bay Regional Council or visit for contact information.



HARCOURTS HB ON A ROLL Hawke’s Bay real estate company Harcourts has bought Ray White’s property-management roll. Harcourts managing director Kaine Wilson said Harcourts is now the largest full-service property management company in Hawke’s Bay, managing more than $200 million of Hawke’s Bay property. Harcourts recently won all categories at the regional propertymanagement awards.

HASTINGS RETAIL ACTIVITY The Farmers 6000sq metre development being constructed by Gemco Construction in Heretaunga Street has begun and will open later this year. As a strong anchor tenant for the CBD, businesses surrounding Farmers look forward to an increase in foot traffic and activity including seven day trading. Other new developments include Cotton On which will open in Heretaunga St. Pagani has opened a new store in the former East Bay Finance site. Heavens Bakery has taken over the former Maine cafe site and Forme Hairdressing has opened next door to new bakery - Le Bon Bakery, the French baker from Greytown, which has taken over the former Zigialotto site. The east end of Heretaunga St is set to become a strong retail and hospitality area with the recent expansion from Taste Cornucopia into the evening cuisine market. The “Eat St” precinct along Russell St has also expanded with Kilim Turkish Cuisine, Cuisine Holy Guacamole Mexican Grill, Bread and Butter cafe and Bay Espresso on Market St opening in the former CBD Cafe site.


Hawke’s Bay



Westpac is taking a holistic view of its role in the economy, says general manager business banking, Ian Blair (right), who recently visited his expanded team of business bankers and key clients in Hawke's Bay. "Our role is to move money around the economy," he says. "It is important to get money back but it is also important we take opportunities presented at the back end of the recession." He says optimism is an important factor for growth but demand for borrowing has been soft. "Nationally we are working on a concept called Grow New Zealand that looks at impediments to investing." The bank was offering "thought leadership" to stimulate discussion and switch the mood from "caution to confidence”. [Looking at] what are the challenges, what do you need to gain confidence again," Mr Blair says. In Hawke's Bay, eight new business bankers have been appointed. "It may seem counter-cyclical, but when times are tough it is important to have local people alongside who understand the Bay well."



Speciality tours focussing on architecture and farming are two areas Hawke’s Bay could excel in when it comes to enticing international visitors to our region. That’s the word from wholesale travel operator Ruth Grau (right) who was among a group of buyers from the trade travel industry hosted in the region by Hawke’s Bay Tourism.

Business Hawke’s Bay’s first project could be helping redevelop Central Hawke’s Bay’s economy following the proposed closure of Ovation New Zealand in Waipukurau.

“I think looking at all the different aspects the area has to offer, we do a lot of speciality group business so I think there is some room there if people were looking at architectural groups or farming groups,” she says. Ruth and her husband run Springboard Vacations, a travel wholesale company in Los Angeles and specialise in vacations to Australia and New Zealand. “It sounds like Hawke’s Bay has a really good domestic profile so now it’s about raising that international profile”. “And I think for couples looking for a private romantic getaway, it has a lot to offer. The range of self-catering accommodation is a draw card, so are the speciality shops and the Farmers Market.”

“The chamber has offered the Central Hawke’s Bay District Council to be involved in helping businesses there work up new business plans to meet different outcomes in terms of discretionary spending.

Responding to interest in business training for those managing winemaking enterprises, the Eastern Institute of Technology has launched its Graduate Diploma in Business with a wine industry endorsement. EIT’s Applied Science Head of School, Diane Marshall, says EIT was aware than many wine business managers came from a background in science, and saw the need to broaden skills from this highly-specialised knowledge base.

The meat processing and marketing outfit was a “leading light” in business with export markets in Asia, Europe and the US, Hawke’s Bay Chamber of Commerce chief executive Murray Douglas says. And it’s loss will be devastating to the region.

Ruth has been working in the tourism industry for over 20 years and knows exactly what to look for when she’s hunting for a new destination. “Hawke’s Bay, with an international profile, can give people reason to leave the big four, Auckland, Rotorua, Wellington and Queenstown, to try something different in New Zealand.”

“The second is to work with them through Business Hawke’s Bay to rebuild the economy and deepen the economy which will take a little longer but will be more essential now,” he says. The Ovation closure is a sign the Hawke’s Bay economy needs to look at developing new industries along side the mainstay primary sector. “Commodities by definition fluctuate by price volatility of markets and other pressure such as drought, that’s the nature of the business you are in. “So for Hawke’s Bay to have a certain economic future we have to have a deeper economy, a wider more diverse one. And that’s what some in the private sector have been talking about over the past six months and that’s what you’ll see come through with Business Hawke’s Bay.”

The new qualification’s study programme covers wine business management, strategic management and marketing, international business and a wine business research project.

NAPIER RETAIL ACTIVITY Advanced Sports Nutrition is one of the new businesses which have moved into Napier during the past three months. The business entered Napier’s CBD in May and is located on Emerson Street. Other new businesses include Villa Candida, also on Emerson Street and ISytems on Dalton Street. A number of business have also relocated around the CBD, including Pacific Gifts and Souvenirs to Emerson Street, where Dymocks used to be, Surprise Surprise has moved across the road on Emerson Street. Shoes on Emerson, previously called Live Footage, has rebranded and relocated to Emerson Street. Photoworks has moved to Hastings Street and the Farmers redevelopment project in Hastings Street is in the pipeline this year.

Adding value to successful community projects

million stunning new facility opened in

Hastings in 2008

Over $ 7 million in funding secured for the Len Lye Centre in New Plymouth

$ 6 million government funding for the Hawke's Bay Museum & Art Gallery p. 878 5052 | THE



$ 13.5






The airport extension is due to be b completed this year but when will we see the benefits? By Lawrence Gullery

Hawke’s Bay Airport is investing in a business development manager responsible for generating revenue from its terminal and its planned business park.

All hopes are on the property market reaching the projected upswing in value and the business development will sell the idea of a business park to prospective tenants. “We’ve had some discussions with interested parties and want to take these to a greater level,” John says.

The Hawke’s Bay airport’s runway extension was due to be completed in June but poor weather put work on hold at various stages of the project over the past year.

Airport chairman John Palareit ruled out any notion of tacky “Wellywood” signs being constructed around the airport site but “reviving” revenue is firmly on the radar as the next financial year gets underway. “We’re looking at pushing a new road through into land up to the grass runway, just on the edge of the hangar facilities, to open up space for commercial development,” John says. “The initial intention is to budget a million dollars for that work. Ultimately we would like to push the road right through to Watchman Road at the (east) end of the airport but that could be some years away.

“We need to demonstrate what we can achieve with the business park, which could attract a business that has connections with an airline,

Twice the normal amount of rain fell around Hawke’s Bay during the first half of 2011 but John says contractors Higgins have worked well

logistics or distribution companies, those in transport, passenger services. “Tauranga airport is one example where there has been significant business park development close by its terminal.”

to keep the project on schedule. “The overall costs of the extension Is about $5.6 million. We will have some money left over in reserve which will be good heading into the new financial year,” John says.

“It’s a case of putting a reasonable amount of infrastructure in place and seeing what the demand is like and what we can do to developed the business park.”

John also likes the idea of an accommodation component to the business park although that could be some years away.

He likes to make the point that a longer runway does not automatically mean trans-tasman travel.


“That would have to be something taken up by a developer and we would provide the land.

HB Airport extensions underway

is domestic jet capability because to go to an international model would mean we would need another 200 meters and strengthening of the runway, that could cost about $17m. “It would also mean we would have to look at work around a significant extension to the terminal.

The intention is to have another domestic airline provide competition for airfares ... that’s not going to be easy now because there is one less entrant, “The intention is to have another with Pacific Blue not flying domestic routes domestic airline provide competition


“The business plan we’ve talked about

for airfares, which is always a bone of contention for travellers. “That’s not going to be easy now because there is one less entrant, with Pacific Blue not flying domestic routes,” John says. Passenger numbers recorded at the airport were 430,000 for the 12 months ending in May 2011, on the up and almost reaching the highs seen in 2008.



ADRI ISBISTER Adri Isbister is the CEO of Radius Medical, based in Napier. In 2007 she was voted CEO of the Year at the Westpac Waikato Chamber of Commerce Business Awards with LIFE Unlimited. She has worked as a drug and alcohol counsellor, managed her own independent insurance broker business, was head hunted into a personnel consultancy by Asset Personnel KPMG, and held a marketing role at Les Mills World of Fitness in Hamilton. Kate de Latour talks to Adri Isbister CEO of Radius Medical, Adri Isbister

You took up the post of RADIUS CEO in October 2010, how are you finding living in the Bay? I love it. We have family here including two grandsons. I’m keeping up with sporting interests, I’ve joined a gym and go running most mornings I’m here. I let go of my appointed position to the Waikato DHB and I resigned my positions on the Waikato Netball Board and the Waikato Bay of Plenty Magic Franchise board and I miss that activity. I’m sure I’ll make connections here in the Bay as I’m passionate about the community and supporting in a governance manner.

What experiences have best prepared you for the role with Radius? My years of leading organisations, no matter what field, have prepared me for this role. I’ve learnt to “pick my battles” - sometimes it’s fine to let things go. I’ve learnt to be prepared for the unexpected, that risk management is a balance of great performance and embedded quality systems and processes. I firmly believe that role modelling the behaviour I expect from my team creates a performing team.

How difficult/easy is it to manage a national

company from Napier?

contributed to your success?

It’s a challenge logistically as I try to be smart in terms of planning meetings and sometimes am racing to get from one meeting to another - Auckland traffic is a challenge! I am so proud to say to people that we run a national medical practice group from the Bay.

Expecting and communicating that “mediocre” is not acceptable and clearly stating what is expected. Networking and collaborating with appropriate “like” businesses. If it doesn’t work then change it - I like the

I’ve learnt to be prepared for the unexpected, that risk management is a balance of great performance and embedded quality systems and processes Who has inspired you? If you put good people around you, value their skills, plus create a culture of teamwork, they make you look good. There’s been a few mentors in my time, particularly Dr Jan White currently CEO of ACC - a really positive and energetic person with a wealth of knowledge. I’ve also been inspired in other ways like I did the New York marathon with a disabled guy; he had cerebral palsy. He walked with the use of crutches and it took us 26 hours to complete it.

What has been your key approach in business that has

word “transform”. Backing myself, sometimes decisions are not popular but necessary for organisation strategy and moving forward. Understanding the bottom line and “take action” - it’s so easy being a NATO (no action talk only) but there’s no place for that in a successful and sustainable business.

How has completing an MBA changed your approach to business? Apart from working 80 hours a week and weekends, the MBA expanded my knowledge of “the big picture”. It was a good boost to my competencies and my confidence and backed up my experience with theory.



The Port of Napier HB Business Hall of Fame features three new inductees who have made a lasting impression in the local business scene.

The Port of Napier HB Business Hall of Fame was initiated three years ago to further promote the spirit of business within the region and to honour the achievements of successful business people. The latest inductees are tobacco pioneer J. Gerhard Husheer, aerial mapping identity Henry Piet Drury van Asch (CBE) and legendary wine maker Thomas Bayne McDonald. They join the likes of Nathaniel Kettle and Frederick (FW) Williams, Sir Russell Pettigrew, Sir James Wattie CBE, JN Williams, Robert Holt and Graeme Eric Selby Lowe QSM, CNZM.

Mr Husheer was a German born businessman and philanthropist who formed the New Zealand Tobacco Company in 1913 and his presence is still felt today with the jewel in the Art Deco crown, the National Tobacco Company Building in Ahuriri. Mr van Asch founded Hastings based New Zealand Aerial Mapping in May 1936 and he is responsible for transforming New Zealand’s cadastral maps into accurate topographical maps. Mr McDonald was 14 when he started making wine and by the 1960s he was regarded as the ‘father’ of red wine in New Zealand. Port of Napier chairman Jim Scotland says the Hall of Fame provides a gallery of role models for the coming generations.

“The Port of Napier Business Hall of Fame provides us with a wonderful way of recognising enterprising Hawke’s Bay leaders. “It provide’s a focal point for enterprise and to reinforce that business provides the employment through which people and the community prosper.â€? Chamber CEO Murray Douglas noted that the criteria for selection into the Hall included putting a Hawke’s Bay business “on the mapâ€?. “The inductuees have all made a signiďŹ cant impact on Hawke’s Bay society and economy through enterprise over the last 150 years while also demonstrating community responsibility and involvement,â€? he said.


German-born businessman and philanthropist Gerhard Husheer was a leading ďŹ gure in New Zealand’s tobacco industry in the early-mid twentieth century. His drive, ability to innovate, enthusiasm and sound business thinking helped shape the industry nationally – and made him a signiďŹ cant ďŹ gure in Napier’s business world. Husheer arrived in New Zealand in 1911 with his Norwegian wife and three sons, and an ambition to found a tobacco production industry. He selected Hawke’s Bay as his base and leased farms ďŹ rst at Pakipaki, then Haumoana. In 1913 he formed the New Zealand Tobacco Company. The First World War provoked trouble; Husheer was German and in 1919 those tensions led his directors to rid themselves of him.

2011 Citations supplied by Matthew Wright historian



Husheer moved to Auckland, where he raised more capital and grew tobacco at Riverhead. He returned to Napier after the collapse of his former company and bought the building and equipment, forming the National Tobacco Company around 1923. After the devastating Hawke’s Bay quake of February 1931, Husheer had the damaged ofďŹ ce frontage replaced with an architectdesigned art deco structure that became iconic. Business success brought personal wealth. Although reclusive, Husheer sought to help those less fortunate than himself and became well known as a philanthropist, supporting local businesses, people and causes. (Incorporates comments from J. Husheer)


Piet van Asch was one of New Zealand’s aerial mapping pioneers, who founded and steered his business through the rocky waters of depression-era New Zealand and beyond.

Henry Piet Drury van Asch (left)

Van Asch had a long-standing interest in photography. He founded Hastings-based New Zealand Aerial Mapping in May 1936, and foundation shareholders included East Coast farmers who had seen his livestock photography. His ďŹ rst aircraft was a General Aircraft Monospar, which he travelled to Britain to buy – where he also gained experience as an aerial surveyor. Early work took van Asch and his team from Northland to Bluff. More work came with the Second World War and in 1943 the company

took delivery of a Beechcraft, which serviced the PaciďŹ c Islands. After the Second World War, van Asch continued to lead the company from the strength to strength, even tackling city surveys – always a tricky proposition. He retired in 1980, after having logged some 6700 commercial ying hours. Piet van Asch remains one of the prime ďŹ gures responsible for transforming New Zealand's cadastral maps into accurate topographical maps. He was made an honorary member of the New Zealand Institute of Surveyors. He also became a fellow of the Royal Aeronautical Society and received the CBE. (Incorporates comments from Hugh van Asch)


Tom McDonald was 14 when he began winemaking in the Taradale vineyard and winery under the tutelage of Batholomew Steinmetz. McDonald took over the winery in 1927 aged just 19 and later purchased the facility and associated vineyard. Times were initially difďŹ cult, and McDonald was forced to think laterally during his early years, even planting fruit and vegetables and running sheep. In 1949 he made New Zealand’s ďŹ rst commercial Cabernet Sauvignon, which he always referred to as the best. The quality of the red wine he was making by the 1960s was such that he became known as the ‘father’ of red wine in New Zealand.

McDonald’s achievement is given perspective by the fact that for much of the twentieth century, New Zealand was not a nation of wine-drinkers. Restrictive alcohol laws and a focus on sherry and beer made wine a niche market. He was also very active politically, and was President of the Hawke’s Bay Grape Winegrowers’ Association. His winery went through a number of hands, merging in 1962 with McWillliams wines. McDonald retired in 1976, but continued to make wine for the next ďŹ ve years. His winery was reopened by Montana Wines in 1989 as the Church Road winery. (Incorporates comments from Barrie Browne) Thomas Bayne McDonald (left)

2011 Citations supplied by Matthew Wright historian



World Cup Update



Our primary sector could get the biggest boost of the Rugby World Cup’s arrival in September while at least one Hawke’s Bay company gained pre-cup business opportunities. By La w rence Gul l er y

Hawke’s Bay will be one of six regions featuring in an expo highlighting New Zealand’s agri-

Classic Sheepskins. “The whole focus is to connect the New Zealand agribusiness sector with international businesses who have an interest in our operations. As part of the Hawke’s Bay expo, a tour

business during the

We want to provide them with an off the track experience to show people some of the worldleading work we are doing in agribusiness, in terms of animal genetics, viticulture technology, farm machinery and farm management systems

Rugby World Cup. The initiative set up by New Zealand Trade and Enterprise and the New Zealand 2011 office is being headed by Deborah Jack, from the Waikato, as the projects business development manager. It is called the New Zealand Agribusiness Showcase and will come to Hawke’s Bay on September 16. Other regions involved include Otago, Taranaki, Manawatu and Waikato. “We are looking at ways to show international companies New Zealand agribusinesses that are working well in export markets. We’re talking in terms of technology, innovation, research and development,” Deborah says. She talked to over 200 New Zealand businesses about being part of the showcase and there are between 30 to 40 Hawke’s Bay businesses involved, two of them include FarmQuip and

to orchards, farms and wineries to showcase the technology being used to produce food and then in the evening they have a chance to sample the produce themselves.”

will take place of wineries and wine making, pack houses and processing operations and the latest technology for fruit and vegetable growing. “We want to tell the whole story of Hawke’s Bay, take people out

‘The Cloud’ a Silver Lining for Red Steel Red Steel is one Hawke’s Bay firm to benefit from the Rugby World Cup but managing director Bob Hawley and his team have won the work on their own merits not by being a NZ 2011 Business Club member. The firm was among the successful contract bidders to work on “The Cloud”, a temporary structure which will be the party central spot for Rugby World Cup celebrations in Auckland. The overall project was led by Fabric Structure Systems with architects Jasmax and builder Fletcher Construction. Although over 300 HB companies have signed up to the NZ 2011

NZ 2011 Business Club The NZ 2011 Business Club connects local business people (hosts) with international business people while they’re in New Zealand for Rugby World Cup 2011.

aquaculture, education and food and beverages. The top three sectors international club members are from include food and beverages, tourism and health.

Business Club hosting ranges from having a BBQ, or taking a fishing trip, to attending large-scale events together such as the Auckland International Boat Show.

There are 318 domestic members of the NZ 2011 Business Club who are either from, or operate in Hawke’s Bay.

The top four activity themes international members are most interested in are wine and food, adventure activities, nature and the outdoors and Maori culture.

To join go to:

The top four sectors members are tourism,

20 Edmundson Street, Onekawa, Napier | 06 843 2001 | | 10



Proud to have been involved at every stage of The Cloud formation.


World Cup Update


FOR BAY BUSINESSES Business Club, which matches locals with international visitors, there’s little evidence at this stage, of any lucrative international business deals. Red Steel won the contract to build The Cloud in November 2010 and the job was completed on schedule and budget. The structural engineering ďŹ rm began work on the 180 metre The Cloud 18 months ago. Physical work began in January at

the ďŹ rm’s Napier base. The design engineer for the project was based in Brisbane and Red Steel used Skype and 3-D modeling to share progress on the project.

Auckland and assembled on site. Red Steel has about 24 staff and will move to a new and larger site in Ahuriri. Bob says the high proďŹ le of the project coupled with Red Steel’s design work on The Cloud has started to provide spin-off work.

The completed structure including 33 main trussses was transported to

We’ve got high skill level here which means tricky jobs like The Cloud, we can handle them with ease whereas others may not have the same level of skill as they are focused on automation “Building the structure of The Cloud was the main part of our contract but we were asked to do other work, including three stairways and other ďŹ nishing work,â€? he says. Bob says it’s not only raised the proďŹ le of the company but also of the type of structure used to build The Cloud. “We have completed work on a huge fabric tree inside Auckland International Airport along with a series of new avaries at Auckland Zoo - all projects that were accelerated to be ready for

The Cloud as it progresses from the Queens Wharf WebCam

The Cloud being assembled on Auckland’s Waterfront by Red Steel.

this year’s world cup.â€? In both cases, the ďŹ rm constructed a lightweight curved structure to support a fabric roof. It is now a sector Red Steel excels in. “We’ve got high skill levels here which means we can handle tricky jobs like The Cloud, with ease whereas others may not have the same level of skill as they are focused on automation,â€? Bob says.


(;3(5,(1&( 6(59,&(



‡ ‡ ‡ ‡








CUSTOMER BASE Three Hawke’s Bay businesses are embracing social media and are using the likes of Facebook and Twitter to promote goods and services to customers and clients. Setting up a Facebook page is probably the first step most businesses take when jumping into the Social Media scene. Having a Facebook presence is great but just setting up a page will not generate hundreds of new customers.

Hail the Thirsty Whale’. “The campaign was really succesful and eventually it got to the point where passersby would sing the tune to Spongy,� Josh says. Although the ad has long been off the airwaves, it was decided to reignite it via Facebook. The concept which has just been launched gets the bars Facebook fans to record and upload themselves singing their own version, with the winner winning a cash prize. The competition runs for six weeks and on August 12 the top versions will be played at the Whale with the audience voting for the best one.

Thirsty Whale builds fan base The Thirsty Whale already has a fan base of over 1000 but wanted to be more active with these fans. Social media experts SocialKiwi have devised an exciting concept that is expected to get more fans and more patronage through the Ahuriri based restaurant and bar. Keith ‘Spongy’ Price, owner of the Thirsty Whale is always on the look for new ideas and wanted a new campaign. SocialKiwi’s Josh Woodham said they decided on a Facebook campaign that virtualised one of Spongy’s most successful radio campaigns. “When the Thirsty Whale ďŹ rst opened, they launched a nifty radio ad jingle ‘All

“Throughout the campaign we expect there to be a lot of buzz on both Twitter and Facebook which should lead to some big nights at the Whale.� Josh says there are certain guidelines when running promotions on Facebook that you need to be weary of (see here “We build applications that allow you to run a viral promotion on Facebook and also allow you to capture your fans email addresses to join newsletters etc. for future marketing purposes.

Admin Plus gets targeted The team at Admin Plus offer business services such as answering phone calls and administrative roles such as payroll, GST returns, word processing and other administrative tasks to businesses in the Hawke’s Bay and beyond.

Their target demographic is key decision makers such as CEO’s and managers. Now Admin Plus can use tools like Facebook to micro-target to the right people. Josh explains that Facebook knows a lot about its members including demographics, which are made available to advertisers to tap into using Facebook’s self-service ad platform. “For example, for Admin Plus we will advertise to people who live here and are aged 30 and over. “The Facebook ad platform says there are about 17,000 people in this demographic. To deďŹ ne further we add in a few keywords like General Manager, Manager, CEO, Owner and Director,â€? he says. This narrowed the audience to 460 people age 30 and over. A Facebook ad costs between 10 cents to $1.50 per click, however you only get charged if the ads are clicked on. “This level of targeting may sound a little creepy, but what would you prefer? Being bombarded by dating sites and weight loss pills, or something more suited to you.â€? Once your targeted Facebook user clicks on the advert and directs through to your Facebook page, it is wise that to have the information they want. It’s also wise to regularly update your page with interesting content - not just a sales message. Facebook welcome pages designed

with attractive images, logos and links to your website ensure that potential customers are driven to the place where they are likely to contact you. There are plenty of free design applications but the functionality is limited.

Liley’s gets web alternative Liley’s in Karamu Rd, Hastings are a supplier of wood burners and also offer a repair service. Simon from Liley’s hadn’t set up a website yet and didn’t have the budget to invest thousands into one. The alternative option is a Facebook welcome page with links to Google places for contact details and Facebook photo albums for a gallery of products. Facebook is unlikely to ever fully replace the extensive capabilities of a website but for less cost, Simon now has an online home (searchable in Google) to direct his customers who want to view his products. Simon also purchased a domain name which re-directs visitors to his Facebook page where even non-Facebook users can watch a video and view the photo gallery. SocialKiwi specializes in creating Social media marketing campaigns, Facebook welcome pages and provide Social media advice & training. To contact Josh email or phone 021 0299 7040

'(6,*1 38%/,6+,1* :(% ',*,7$/ ',5(&7 0(',$ &20081,&$7,216




Tips on how to get the best out of facebook Media/News/Publishing

Getting setup - Build a Facebook business page not a personal proďŹ le. Business pages are the area Facebook have business reporting and advertising capabilities that personal proďŹ les are missing. FREE ‘Using Facebook a a Page webinar: - Create a business page that reects the branding of your business so customers know they are in an area that is managed by the company.

Communicating - The communication style on Facebook is conversational. Ask questions, listen and look for opportunities on your business page and others to talk about what you do where it’s relevant. - If you want to speak to all of your fans, use your Facebook wall and they will see the update on the computer or mobile device. If you want to speak individually to a fan you can message them via their proďŹ le. - If you want fans to engage on your page, run a campaign and offer a prize in return for their input. These are even more successful where the campaign requires fans to upload a photo or video as media content is more likely to be shared. Great alternative to Grab One for getting people into your business to cross-sell and up-sell them. FREE ‘Running a campaign’ webinar - When placing posts on others businesses walls, there are some do’s and don’ts. Do join conversations by answering relevant questions or providing a valuable insight. Don’t write wall posts that are purely advertising based.

Growing your fan base - To increase the social growth and referrals of your page, add social network buttons to your website, blog and add social media site addresses to your print collateral. Customers are more likely to go to a Facebook address to ask a question than a website. - To grow your fan base the most cost effective way, tell your existing customers in the way you currently communicate with them. We’ve seen a customer add 20 fans a day through their email marketing. If you want to target new customers, use Facebook ads, they’re approx 8 times cheaper than Google AdWords for the same return. FREE ‘Setting up Facebook Ads’ webinar

Converting into sales 0,17

- Provide fans an easy way to get to buying your products. If your products are for sale on your website, you can generate trafďŹ c from facebook, twitter and youtube to there to convert into a sale. If your product is a service, direct them to your website booking area. Social = conversation+lead generation, Website = sales conversion.


- If you don’t have a website or your product isn’t purchasable online, use social media tools like facebook, twitter and youtube as a way to generate leads that you can follow up on through your business. Also make sure that you ask all your customers where they heard about you. Increasingly, the answer will be I heard about your business through social media, after all it is the online equivalent of word of mouth. -XO\ DW /LNH &RPPHQW 6KDUH

YES! YOU CAN HAVE A WOOD FIRE! Supply, installation & service of NZ’s cleanest woodfires including Pyroclassic IV, Firenzo, Metro, Masport, Milan, Osburn, Woodsman & Warmington. Did you know that: • Woodfires are designed to heat entire homes, using the No.1 sustainable “carbon neutralâ€? fuel - wood. • Wetbacks can be fitted to some woodfires, helping our households hot water power bill. • There are wood fires to suit all situations, urban &

rural, large or small. 811 Karamu Rd N, Hastings Ph 06 878 7940 . Fax: 06 876 8479 Email:







Supermarkets feature highly in the development of town centres, such is the case in Havelock North and Flaxmere where the country’s two food giants are looking to expand.

By Lawrence Gullery

Supermarket companies Progressive Enterprises and Foodstuffs are eyeing prime Hawke’s Bay sites but neither is willing to officially divulge future plans they may have for two key sites in the Hastings district.

wooing local community leaders for their tick of approval.

has nothing planned at the moment but is looking at options in the future�.

Foodstuffs own the New World supermarket on Porter Drive in Havelock North but would not conďŹ rm rumours it was interested in opening a new store across town on Martin Place, registered to Karanema Ltd, under Crighton

Likewise competitor Progressive did not respond to questions. Hastings District Council says no applications have been lodged to develop a supermarket in Havelock North but those in the real estate

One of the concerns with a new Supermarket outside the existing CB D, is that it would impact on the retail spend within the CB D and affect the viability of ex isting retailers, by drawing the customers away from the town centre

It leaves pundits wondering whether the on-going economic recession or council bylaws, or a combination of both is preventing the country’s two major supermarket companies from upping their presence in the region.

Stone, formerly Logan Stone. The site was occupied by Nimons.

It’s no secret both are considering plans for expansion into Havelock North while Flaxmere’s planned town centre redevelopment also has the companies

Foodstuffs did not answer questions submitted by The ProďŹ t around its possible redevelopment in the village, only to say through its PR ďŹ rm that “it

Wayne Bradshaw

industry believe both Foodstuffs and opponent Progressive Enterprises are keen on the village. Havelock North ward councilor Wayne Bradshaw says while talk of Foodstuffs upgrading in the village was common

Wayne Bradshaw

knowledge, he’s not aware of any interest from Progressive. â€œâ€Ś but on a business level I could see why they could be interested in locating here as it is a strong and vibrant community, with a great future. “One of the concerns with a new Supermarket outside the existing CBD is that it would impact on the retail


John Macpherson on from fr m Advintage












spend within the CBD and affect the viability of existing retailers, by drawing the customers away from the town centre,” he says.

and medium density housing and the fourth is an industrial precinct around Martin Place and Nimon’s former yard.

Wayne reckons the same arguments have been thrown up about the large format retail centre at Nelson Park and the impact it could have on the Hastings CBD.

Real Estate Institute of New Zealand Hawke’s Bay committee chairman Murray Keane says in his opinion, developing a retail centre, whether it be supermarkets or shops, away from the Havelock North’s main town centre would not be a good move.

“This could be a real concern and create a likely negative outcome for the existing (Havelock North) CBD.” The council’s proposed draft town planning document for the village encourages the retention and possibility of expanding the New World supermarket on its existing site, to retain “vitality in the heart of the village”. The document includes a single Havelock North Village Centre Zone that encompasses the entire commercial area which is divided into four precincts. The first is a CBD retail precinct which allows for some higher density residential activity on the Joll Road / Campbell Street corner. The residential component would front Campbell St and fill the majority of the site, while the Joll Road frontage is to be for commercial land uses (shops and cafes for example with the possibility of commercial or residential above. An employment precinct will include areas around Donnelly and Cooper streets. The third precinct is for “mixed use” to include commercial

town, as part of stage one of the town redevelopment. Mr O’Keefe says no decisions have been made on a preferred supermarket franchise and he thinks there might not be any action for at least two years. Construction firms like Gemco Construction have picked up significant contracts. Currently on its books are the Waipawa Town Hall, Hastings Murray Keane

I don’t think we should have a second shopping centre set up when you already have one across town, and that’s what could happen in this case “I don’t think we should have a second shopping centre set up when we already have one across town, and that’s what could happen in this case”. He says across Napier and Hastings, there are signs of more activity in the commercial sector, led by department store Farmers which is consolidating its two shops into a new site in the Hastings CBD and the new Home HQ retail park at the former Nelson Park site. In Flaxmere, Hastings district councilors Henare O’Keefe and Jacoby Poulain have met with supermarket companies as part of a new town centre redevelopment plan for the suburb.

Australia’s Gold Coast while there are others working well in the South Island.

Murray Keane

Farmers store, The Warehouse at Home HQ and the $18 million Hawke’s Bay Museum in Napier.

Residential Golf Park plans terminated Plans to build a residential development on the Hastings Golf Club in Bridge Pa were “terminated” a couple of years ago and do not look like being resurrected, according to the club’s president Howard Padman. He says a combination of council red tape and the cold real estate market had contributed to a developer walking away from the plans. Residential homes on golf developments are all the rage on

Murray Keane says he was not involved in the development proposed by the Hastings Golf Club but can understand its attraction. “I think there will always be demand for residential sites around green space, people like to be in a park and look at someone else cutting the grass but if you go into new subdivision urban areas, people are close and don’t like the fact they can reach out and touch their neighbours through the window. “I can see the (golf club) site is not too far out of town and I believe if they did that type of development (in the future), there would definitely be buyers,” he says.

The councilors are asking for an alcohol-free supermarket in their

Properties Of Interest Property Brokers has over

Colliers International

200 commercial and industrial properties on its books and one the most outstanding is the building currently occupied by Farmers in Hastings CBD, opposite the central city plaza.

had about 90 properties on its books in June its biggest ever offering of property to the Hawke’s Bay market, some of these include The KMart Plaza Shopping Centre in Hastings, The New Warehouse being built at Home HQ, The current Warehouse on Market St, Hastings and the Farmers also on Market St.

The building is owned by Wallace Development and is formerly the home of large format retailers, Woolworths and DEKA. The building has the potential to be easily redeveloped inside, for four or five tenants likely to be a mixture of retailers, depending on demand for floor space. Retail commentators have been critical of the number of banks and financial institutions along the main street of the city CBD and Murray Keane believes the introduction of more retailers may increase foot traffic in the middle of town.

A multi story property on the corner of Warren and Heretaunga St which houses tenants Duckworths, Furniture Direct and a café is being touted as a possible hotel/motel opportunity. Other prominent sites include the property tenanted by the ASB Bank, Hastings, a wine bottling and labeling business in Napier and the ex AMP building which houses the Wine Centre on 1 Shakespeare in Napier.





ON CLOUD 9 BUT WITHOUT A WORRY? Privacy and access to data is paramount if providers want to protect their customers. By Wray Wilson | Need a Nerd

Several years ago, a new buzz phrase entered the IT vocabulary “The Cloud”. Many companies have embraced cloud technology, however the vast majority haven’t and probably don’t know too much about it. A number of the big IT players are already into it (think Google, Microsoft and Amazon) and Apple has just announced the iCloud. So it’s probably worth stopping to draw breath for a moment, demystifying the cloud a little and consider the pros and cons.

So what is it? The cloud is a set of services and technologies that enable the delivery of computing services over the Internet in real-time, giving users instant access to data and applications from any device with Internet access. The cloud can be broken down into several categories but the main ones applicable to NZ businesses are software-as-a-service and infrastructure-as-a-service. These services can be used individually or in combination with existing in-house resources.

Software as a Service (SaaS) - applications delivered over the Internet, usually through a Web browser such as Internet Explorer or Firefox.

We come to your business / home and take care of all your technology. Product sales, set-up, advice and ongoing support.

Infrastructure as a Service (IaaS) - the use of remote computers and storage. The idea is that large, specialised players can operate powerful server facilities far more efficiently than you, so you can supplement or replace current servers without sourced resources. This allows users to scale up or scale down what you need quickly with minimal costs (for example additional storage).

The Pros: • You can access your applications and data at any time through any computer linked to the Internet. • It can bring your hardware costs down. You don’t need the fastest computer with the most memory or heaps of storage, because the cloud system takes care of it for you. • You only need a computer with enough processing power to connect to the cloud. • You can get company-wide access to expensive applications without the upfront cost of having to buy software licenses for every employee. Instead you pay a subscription fee and the software is supplied by the provider.

• You don’t need a specialist room to house sometimes bulky server infrastructure. • Someone else worries about the maintenance and replacement of expensive systems and backing up all of your data.

0800 NeedANerd (0800 63 33 26)


Examples of cloud applications are Microsoft Office 365 and Google Docs. With SaaS, the actual programme (for example PowerPoint) and your data (say your PowerPoint presentation) is stored remotely and delivered over the Internet through your browser. You generally pay on a per-user subscription model.


The Cons: • Perhaps the biggest concerns about cloud computing are security, privacy and access. The idea of handing over

your data to another company worries a lot of people. • Companies offering cloud computing services live and die by their reputations otherwise the service would lose all their clients. It’s in their interest to employ the most advanced techniques to protect their clients’ data and so you can expect them to have top notch security in place. That said recently Sony had their security breached twice in relation to Playstation 2 user credit card data size and reputation is no guarantee when it comes to sophisticated, determined hacking. • Privacy is another matter. If a client can log in from any location to access data and applications, it’s possible the client’s privacy could be compromised. This can be as simple as not logging out of your account when you are in an internet café or a keystroke logger being used to capture your username and password. • Some questions regarding cloud computing are more practical - would a cloud company deny you access to your data if you forget to pay your bill? • Finally, Cloud reliance can cause significant problems if you lose access to the internet – something that is not that uncommon in NZ. Internet access is becoming more reliable but depending on how crucial constant access to your data is to you, may not be reliable enough. • Whatever option you choose, it is worth considering the Cloud. It’s a rapidly developing area of computing and with the infrastructure and development resource going into it, will surely not just be a flash in the pan. Wray Wilson is the chief nerd and franchise owner of Need a Nerd Hawke’s Bay. Need a Nerd is a nationwide technical sales and support business to the SME and residential market. Email -

PRO Sales


EASY AS A.B.C Learn the best strategy around servicing those who are vital to your business.

By Brett Burgess | Sales Impact Group

How much actual selling time do you have ? A challenge I hear from many salespeople and business owners alike is that there is never enough time to keep in touch with all their clients and prospects. This in turn leads to lost opportunities and lost clients. There are just two areas salespeople and business owners need to focus their time on as far as sales are concerned. The ďŹ rst we will look at is retention of existing clients as they offer the best opportunity for future growth for a couple of very good reasons. Firstly we have already earned their trust as an advisor/supplier and are therefore more likely to be offered the ďŹ rst opportunity of further work and secondly in many cases we are only getting a percentage of their work.

reason for this is a lack of account strategies and planning, particularly in smaller businesses, which seem to believe if they look after the client they’ll automatically get all their business. So to maximise sales to our existing clients we need to develop an account strategy.

keep up a call frequency. You must decide which accounts are most important to your company. Categorising helps determine this. For every prospect or customer, there is a call frequency that will give you maximum return per call.

All accounts, including those of prospects and customers, should be categorized to keep their call frequency as productive as possible The ďŹ rst step is to identify the services and products they are already buying, then work out what other needs we can fulďŹ l for them and build these into our call objectives. Another step is to work out a call cycle. This will depend largely on what type of client you are dealing with.

Some studies have shown that most of what we might consider to be “A� type clients are only in fact giving us slightly more than 50 percent of their potential business.

A trap is to categorise by turnover. It is therefore very important to look at a number of areas when categorising accounts, such as gross proďŹ t margin, lifetime value, wallet share and potential growth.

Secondly, and this may come as a surprise to many salespeople, the key

All accounts, including prospects and customers, should be categorised to

It is based on the belief that a greater portion of time should be spent on prospects or customers who offer larger volume potential. Less time should be spent on lower volume prospects or customers. You will categorise your prospects or customers as A, B, and C accounts. A accounts statistically number about 15 percent of your accounts and give you 65 percent of your volume. B accounts give you 20 percent of your total sales. C accounts are marginal accounts that give you 15 percent of total sales. These percentages apply in most

industries and are an excellent rule of thumb for determining account classiďŹ cation and setting sales-call frequency. You will ďŹ nd that a small number of accounts produce the majority of your sales dollars, whereas a majority of your prospects or customers provide you with a small percentage of your sales. The classic statement that “80 percent of your business comes from 20 percent of your customersâ€? is reďŹ ned somewhat in the three account classiďŹ cations – A.B.C. A good exercise is to go through your client database and categorise them as A, B or C. You can then manage your time more effectively and look after the 20 percent of your clients who are giving you 80 percent of your income and more importantly retain these valuable clients through regular call cycles. I will look at the second key area which is growth in my next article. Brett Burgess is a Sales Trainer and Programme Developer for Sales Impact Group Limited based in Hawke’s Bay. To contact Brett visit


&DOO WRGD\ 63(('<









HBS Bank’s announcement early this year that it wanted to be known as Hawke’s Bay’s only local bank continues to gain momentum as it opens it’s third Hawke’s Bay branch. Blair Cross | HBS Bank Manager

HBS Bank manager Blair Cross said in January’s issue of The Profit that the bank wanted to play the local parochial card and, in just seven months, it has completely refitted its flagship Hastings branch. As we go to print and to top it all off, HBS Bank has opened a new branch in Havelock North. It’s also snaffled a major Hawke’s Bay

professional yet comfortable and relaxed look and feel and Blair says there’s already been noticeable interest from new customers. “The layout is not like the banks of old and we don’t want people to just come in and do a transaction at the counter – it’s a more exclusive environment and there’s little that we do that’s hidden behind closed doors. It’s about our customers feeling comfortable and there’s always a hot coffee on offer too. “We’re also really excited about opening our doors in Havelock and bringing a new way of banking to the village. The community spirit evident in Havelock North aligns so well to the values of HBS Bank.”

We set out to show that we’re local and that’s exactly what we’ve done. We grabbed the naming rights sponsorship of the Hawks and staff and customers have embraced the team sponsorship by becoming naming rights sponsor of the HBS Bank Hawks basketball team. “We set out to show that we’re genuinely local and that’s exactly what we’ve done. We grabbed the naming rights sponsorship of the Hawks and the team has really been embraced by our staff, our customers and the Hawke’s Bay community alike. “We want Hawke’s Bay locals to know that we’re passionate about supporting the communities that support us.The Hawks sponsorship is one way of showing this but there are many others such as the HBS Bank Hastings City Business Awards and HBS Bank Christmas in the Park, just to name a couple of around 50 local sponsorship of all levels. The refurbishment at Hastings provides a


HBS Bank launch (above and below)

not-for-profit clubs and societies and is already proving a real winner in the market. It’s helping us show new customers just how different a banking experience with HBS Bank really is.” HBS merged with Invercargill-based SBS Bank in August 2010 and, as New Zealand’s only customer-owned bank, it has just reported a tax paid surplus of $14.25 million for the year to March 2011.

SBS Bank chief executive Ross Smith said the result was satisfying given the global economic crisis and after making special provision of $3.55 million for potential losses in relation to the Christchurch earthquakes. “Results like these during an extended global financial crisis are why we remain resolute about retaining our status as a New Zealand Bank owned by its customers.”

Local construction company Mackersey Construction has redeveloped the branches. Blair says the aim is to grow their customer base from around 4000 account holders to a position where HBS Bank is regarded as a major player on the local banking scene. This is by way of offering a full suite of everyday banking products and services that will motivate people to switch. HBS Bank has recently launched a new personal banking product range, including cheque accounts, insurance products and debit cards, along with telephone and internet banking. “At HBS Bank it’s not just about personal customers, we have a real focus on working with local non-profit community organisations as well. Our Star banking package is designed specifically for


Paul Henare gives an insight into professional basketball





UnisonFibre has launched a campaign to get businesses in Hawke’s Bay, Rotorua and Taupo connected to fibre. By Damon Harvey

The campaign called Get on it has been launched and will match businesses wanting the many benefits of fibre with their ‘best fit’ retailer service providers (RSP). Businesses are being offered a free installation as part of the campaign. An interactive website www.getonit. has been launched featuringg business leaders such as Xero founder Rod Drury and PORSE founderr Jenny Yule who are already

experiencing the benefits of fibre such as high quality teleconferencing, a more reliable connection and fibre broadband speeds up to 1GB. UnisonFibre sales and marketing manager Wayne Baird has announced the first nine RSP’s they will partner with local providers Airnet and Wasp joined by FX Networks, Solarix, ITCO, SafeNZ, Datacom, Modica and VIP. The RSP’s will offer a range of telecommunication solutions such as high speed Internet, data storage, cloud services and IP voice. The website matches a business with the best RSP’s based on the business’ telecommunication requirements.

“Some local businesses, schools and health providers are already seeing a transformation in how they use technology. As part of the campaign some of these businesses have come onboard to help educate other local businesses on the many benefits. Fibre has enabled Rod Drury, CEO of the NZX-listed cloud-based software accounting company Xero, new freedom and more time where he can now run a multi-national business while living and working in

On fibre, you are just a click away from doing business with anyone in New Zealand or overseas where distance is no longer a barrier, the opportunities are endless to growing your business “The average cost of an installation can be over $5000 but we want to make it as easy and accessible to as many businesses as possible. “ This is a great opportunity for Hawke’s Bay businesses to catch up with the rest of the world and become more competitive. We expect to see huge interest in what we are offering and urge businesses to register their interest at,” Mr Baird said. UnisonFibre has completed a 140 kilometre fibre loop through Hastings, Napier and Havelock North to improve its electricity network and they can now install a ‘tail’ into businesses along the route. UnisonFibre is also rolling out in Taupo and Rotorua. “We will be doing a staged installation, starting with Hastings central and

Rod Drury Xero founder and CEO

Onekawa. We urge all businesses to take up this offer now, regardless of when the installation will occur.

Hawke’s Bay. “I can have a great job and the best lifestyle with my family here in the Bay”. From his outdoor shed at home in Havelock North, he’s now having “live” meetings with Xero staff in Auckland, Wellington, Melbourne, Sydney and San Francisco, as if they were sitting in his office.

New Zealand or overseas because distance is no longer a barrier. The opportunities are endless to growing your business.” Hastings Boys High is one of the early adopters of fibre and both students and teachers are making the most of it. In fact, principal Rob Sturch is so excited about fibre and its benefits he takes a fibre cable example with him when recruiting new students. “Teachers are really excited about fibre and the opportunities it brings. Having the ability to get high quality information into their lessons is a step forward and is a part of the future. j love seeing ngg “The students just stuff on a computer n. There’s nothing screen. rabs the boys’ that grabs on more than high attention qualityy information. And that’s what fibre has been able too deliver to our l,” he says. school,” nFibre UnisonFibre nced that hat announced 29 urban ls schools so are also eligiblee ree or for a free dised subsidised ction. connection.

“Most Saturday mornings I'll do a Webinar to UnisonFibre will host business customers and breakfasts with a yet to be partners in the USA announced guest speaker in before taking the at the War Memorial in Napier kids to soccer or the on August 8, the Hawke’s Bay beach.” Opera House in Hastings on “On fibre, you are August 9. If you would like to just a click away attend please email from doing business with anyone in

Jenny Yule PORSE In-home Childcare Managing Director






HAWKE’S BAY Mercedes-Benz has made a welcome return to the Hawke’s Bay vehicle scene in time to celebrate 125 years on innovation and technological excellence.

The award winning Inghamdriven has opened a dedicated and exclusive Mercedes-Benz dealership in Carlyle Street Napier and the local business community have welcomed it with open arms. The Hawke’s Bay dealership adds to the 14 strong dealerships (including six Mercedes-Benz) within the Group and John Ingham said it made logical sense to open a dedicated new dealership in Hawke’s Bay. The previous dealership in Hastings closed in 2008 and since then we’ve sold and serviced Mercedes Benz vehicles in our other dealerships, so

enhances Inghamdriven and shows our longterm committment to the customers in this area,” John says. Inghamdriven has dealerships in Otorohanga, Te Awamutu, Hamilton, Tauranga, Auckland, Wellington, Taupo/ Rotorua and now Hawke’s Bay. Hawke’s Bay dealer principal Spencer Pallesen says sales have been strong since the dealership opened earlier this year.

“We’ve got access to a huge range of vehicles via Inghamdriven, so although we might not have it instore today, you’ll be able to test drive it pretty quickly!

“This is a positive investment in representation of Mercedes-Benz and Ingham in Hawke’s Bay. This dealership


Colin’s wife Sue has seven years experience with Mercedes-Benz and is the smiling face that meets and greets

He said the benefits of being part of a larger group is the ease of sourcing the

right vehicle for a customer.

it made sense to open a dealership in the Bay.

John truly appreciates the beauty of Mercedes-Benz vehicles and thoroughly enjoys helping people select vehicles at the premium end of the market. He enjoys working with an experienced team who together have a huge wealth of knowledge.

He’s joined by Dean Moss, who is well known to Mercedes-Benz clients as he previously worked in the former Mercedes-Benz dealership. Both very much enjoy the opportunity to work in a state of the art workshop, and have at the latest in computer technology for diagnosing faults.

“We’ve had some very good sales months and have had a fantastic response from existing MercedesBenz owners, who can come into the showroom to see the wide range of luxury cars in the fleet.

Hawke’s Bay buyers can now go to the local showroom with the confidence that their next Mercedes-Benz is either at the dealership, or through the dealership partnership just a website view away

Mercedes-Benz launch

John Brady and they’re both keen to demonstrate the beauty, the technology and the comfort of Mercedes-Benz automobiles.

The team at Mercedes-Benz Hawke’s Bay all have a great sense of pride in working with the world’s best vehicles and love to share their knowledge and enthusiasm for these premium vehicles. Spencer is joined in the sales team by


The team at Mercedes-Benz Hawke’s Bay

The future is exciting for MercedesBenz with no fewer than 11 new models or facelift releases this year and a raft of new models to be released over the next few years.

Service excellence After sales Manager Colin Bromley has over 30 years experience servicing Mercedes-Benz both here and overseas. Colin served his apprenticeship then operated his own business in Rhodesia specialising in servicing MercedesBenz vehicles before moving to New Zealand nine years ago.

visitors while also managing reception, administration and accounts. Kevin Bowman is the hard working car groomer who keeps the vehicles in tip top condition and mini-grooms all vehicles when they are serviced. John Ingham’s excited about the future of the local team and the many new vehicles due to be released over the next five years. “We’ve got a great team here in the Bay and many new models coming out, so it’s exciting to open this dealership and support business and the community in Hawke’s Bay,” he says.







HB WOMEN ON They are at the top of their game and considered red d to be leaders in g roup of impressive their respective careers. The Profit speaks to a group eirr powers. Hawke’s Bay women working at the peak of their By Lawrence wren nce Gullery and Damon Harvey

Girl power…go girls…whatever reference you want to give them, there are many female Hawke’s Bay business achievers either plying their trade in the region or somewhere else within New Zealand or internationally. In this feature we meet six “power women” that are at the forefront of business. Over the next four pages we feature Nadine ChalmersRoss, Anna-Mieke Anderson, Wendy MacDonald, Heather Shotter and Jenni Giblin. Nadine Chalmers-Ross

Power women in the Bay Below are a list of women in the Bay that are also making huge impressions and leading the charge. • Jenny Yule – managing director of PORSE In-home Childcare • Barbara Arnott – Napier City Mayor • Amanda Sye – No9 marketing director • Anna Lorck – director of Attn! marketing pr & HB Chamber board member • Wendy Harvey – General manager Unison Group • Ardri Isbister – Radius Medical Group CEO

Heather Shotter and Hastings deputy mayor Cynthia Bowers.

• Rachel Cornwall – Red Recruitment MD • Wendy Schollum – Xplore MD • Alayna Watene – CEO of Te Taiwhenua o Heretaunga • Annie Dundas – GM Hawke’s Bay Tourism

Babara Arnott



Jenny Yule


FFeature Fe ature


CHALMERS-ROSS Bay go-getter headlines Television One’s business programme

She’s 25 years old, schooled in Taradale and is asking the hard questions to some of New Zealand’s top business leaders. Nadine Chalmers-Ross is the fresh face of AMP Business, the early morning business television programme on TV1, a role she jumped into after proving she can foot if with the best business minds in the country. Nadine is driven to succeed and says the most important part of her role is to be as knowledgeable about business as possible. She say’s that 90 percent of the role is behind the scenes researching and preparing for the following morning’s show. “It’s important that I am knowledgeable. An audience picks up when you’re bluffing or you don’t know what you’re talking about. So my biggest challenge is to be well read, and researched and clear on the point I want to make or the question I want to ask. “It’s like any other round as a journalist, a political reporter is not a politician, a health reporter is not a doctor, so you learn your craft from the perspective of a journalist and you’re not meant to a be an insider, you’re meant to be a reporter and you need to learn the lingo, know the people and your subject area but you don’t need to be an insider,” she said. Nadine was born in Matamata but

attended Porritt Primary, Taradale Intermediate and Taradale High School and got her first taste of broadcasting at Hawke’s Bay’s Hot 93FM, now known as More FM. “I like to be in the know and while at high school I looked at either being a journalist or a lawyer. “I went to a career evening and listened to a journalist and a lawyer. “The lawyer was dry and boring while the journalist just fascinated me,” she said. Nadine started learning the ropes from local journalist Helen Shea at Hot 93FM then went on to Broadcasting School in Christchurch at 17 years of age before stints as a general news reporter with Radio New Zealand in both Wellington and Christchurch. Her fast emerging journalism talent was recognized with being awarded the Ian Templeton Scholarship, which provides a first hand experience of the parliamentary press gallery and she then had the opportunity to cover the 2008 elections. “I had my sights set on reporting on politics and I did get a chance to do this with Radio New Zealand and while doing the scholarship, but the opportunity with TVNZ came up. “I’ve always had an interest in economics, it was one of my best subjects at school and while at Radio New Zealand I discovered a passion for it.

Her TV break came when she started as a reporter for Business and as a fill in to former presenter Corin Dann. When Corin moved across Breakfast last year, Nadine was given her chance and convinced TVNZ, regular guests and viewers, that she was the best choice.

calling guests for the following mornings show in the early evening. AMP Business has recently featured local businesses Goodtime Pies and Driving Miss Daisy and Nadine says other local businesses can get air time if they have the right pitch.

It’s important that I am knowledgeable. An audience picks up when you’re bluffing or you don’t know what you’re talking about. So my biggest challenge is to be well read, and researched and clear on the point I want to make or the question I want to ask “I’ve put going offshore on hold. I didn’t expect to get this role so early (in my career) so I want to make the most of it and there’s so many variables to the opportunities that could come my way here.” Nadine is driven to succeed and when most mid 20 year olds are looking at heading overseas, she’s weighing up what’s going to be her best career options, given her quick rise within television broadcasting. Nadine likes to get back to the Bay as often as possible to visit family including Mum Jan, but admits it’s pretty hard at the moment as she works long hours researching, reporting and fronting AMP Business. “I get up just after 3am to be am work by 4am, finish around noon before doing some preparation including

“We get plenty of stories ideas from businesses saying they’re bucking the trend but we’re really after a story with a point of difference. AMP Business has a ‘Growing Business’ segment on the programme and Nadine thinks this is a good spot for Bay businesses like Goodtime and Driving Miss Daisy. Nadine can really talk the talk when it comes to business and her impression of business in the Bay is that it needs quality communications to attract new businesses to the region, especially those with intangible products. “The introduction of ultrafast broadband will be an attractive prospect for businesses while the cost of flying to Hawke’s Bay is a bit expensive.





WENDY MACDONALD Relationships are paramount when it comes to generating new business opportunities. A Christchurch woman who came to Hawke’s Bay to help create a centre of excellence for food continues to promote our region’s export potential from Australia. Wendy Macdonald established Food Hawke’s Bay in 2003 and over the following years ran more than 20 programmes helping companies access Government funding for research and development, as well as secure businesses for its first export sale. Prior to her arrival in the Bay, Wendy worked for Industrial Research, the Crown Research Institute, in Japan. Armed with her experience in exporting and the food industry, she took on the Food Hawke’s Bay role until

her departure in 2005, when she decided to start a consulting business in Brisbane. Several years later, Queensland still cites Food Hawke’s Bay as “a model of best practice”. “We put Food Hawke’s Bay on the map both in New Zealand and in Australia,” Wendy says. She’s still keeps a tab on Food Hawke’s Bay and worked with artisan food companies to showcase the organisation’s work at a “high-end” function at a major law firm in Brisbane, Clayton Utz. It was organised by Kea New Zealand’s Brisbane branch, of which Wendy is now the chairperson. In 2009 she organised “Taste of Hawke’s Bay” to showcase our wine and food in Brisbane, which included Sileni Estates, Maimai Creek, Unison

Vineyard and Craggy Range wines. “We also had signature products from renowned Hawke’s Bay food producers, such as Aromatics, Hanna Berry Farm, Maison Therese and St Andrews Limes,” Wendy says. In 2010 Wendy headed a similar event, “Taste of Otago” and this year plans another around the “Taste of Canterbury” theme and a “New Zealand Showcase” to promote the country in Australia during the Rugby World Cup. Wendy started her consulting business because she wanted “the independence of working for myself” and to continue promoting New Zealand products in Australia. She has been involved with the Project Management Institute in New Zealand and Australia in volunteer roles for 10

years and was the marketing director of the Queensland version of the institute for two years. Wendy says her advice to those starting in business is to “nurture the contracts and networks you have” as business opportunities will come from people who know you and trust you. While working for Industrial Research in Japan, Wendy once asked the president of one of the companies what he thought was the difference doing business with companies in the US and New Zealand. He said: “Business is business, but United States does business with a cold heart, whereas New Zealand does business with a warm heart”. “I took from this the importance of relationships in business,” Wendy says.

HEATHER SHOTTER A Hawke’s Bay woman admits she now loves Auckland, where her business experience is in great demand

Her first job was as a public relations consultant in Wellington but Heather Shotter says it wasn’t the singular factor behind her successful career, which includes leading one of the largest companies across Australasia. Heather grew up near Lake Waikaremoana, later attending Iona College in Havelock North. She graduated from Victoria University with a Bachelor of Commerce in the early 1980s and began working for a PR firm in Wellington. “Working as a PR consultant, it didn’t set me on the path to where I am today but I think that all the roles you have in the beginning of your career help you form your future. 24

“You take all of those experiences which enhance everything you do and I guess if there’s one piece of advice I can give, it’s not to be too narrow in your ambitions,” she says. Heather is the executive director of The Committee for Auckland, a non-profit organisation which aims to make the City of Sails an exciting place to live and work. Prior to that she was general manager of group marketing operations for Sky City Limited in Auckland. Heather’s 12-year stint at Sky City is probably the period most people want to hear about as she began work at the company as an employee when it was “just a hole in the ground”. “I went from a very tight brief running communications in Auckland through to running three properties and being responsible for marketing, sales and


communications for all of its business in Australia and New Zealand.

a great difference to the development of the city.”’

“There I was being responsible for 3500 staff, an enormous responsibility. One of the things I feel strongly about being a CEO is that you need to lead your organisation, not manage it.

The Profit spoke to Heather just prior to her presentation at the Women in Business Breakfast in Hastings in July.

“That’s very important, to show leadership, and part of that is recognising talent and being able to nurture that talent to make your business grow.” Heather has lived in Auckland for 25 years and admits she is passionate about the city which she believes “is New Zealand’s only truly international city”. She hopes a change in the committee’s governance will grow its membership base to include a broad range of businesses and organisations. “… so it represents leading Auckland businesses and I really feel it can make

“I wanted to talk about the skills needed to run a commercial organisation and a non-for-profit group. “It’s about knowing your staff and knowing your customers, and being prepared to make tough calls and to stand by those decisions. “I also wanted to talk about seeing women achieve using their experience and not their gender to advance. And I would say to young people starting out in their careers, to keep your options open. “You may have done a degree in a particular area but end up working somewhere else, don’t be afraid to be open to other opportunities.”



JENNI GIBLIN Supermum gives lift to large infrastructure projects

When it comes to getting an infrastructure or community project completed, many local councils are turning to Jenni Giblin.

secured over $30 million in funding for public and private sector social infrastructure projects.

Jenni is all go – the wife of a CHB farmer and mother of ďŹ ve clocks up close to 1000 kilometres a week driving between Waipukurau and Hastings and then on to check up on the progress of projects like the multi million dollar Len Lye complex in New Plymouth and the War Memorial Theatre in Gisborne.

While at the Hastings District Council, Jenni secured $12 Million to build the stunning Hawke’s Bay Opera House.

In the last 18 months Jenni and her team at Giblin Group in Hastings have

Since then Jenni and her team have worked on the Regional Sports

Jenni says she takes great satisfaction in seeing a proposed community project come to life and seeing it fulďŹ ll the role it was set out to achieve.

It’s the project she’s most proud of being involved in. “We managed to bring in more money than targeted and the facility is now living up to what it promised.

Park, Hawke’s Bay Museum & Art Gallery, Marlborough Civic Theatre., the redevelopment of McLean Park, the Waipawa Town Hall and has just brought in $4 million for the Len Lye Art Centre in New Plymouth. Her business is so niche, there’s only one other like it in NZ. So conďŹ dent is Jenni that armed with the best funding models (private/public partnerships), strong local and central government contacts and a sense of building lasting relationships she’s securing more and more work in other regions and has her sights on Australia. “We’re looking at projects in Marlborough, Wanganui, New Plymouth and Taupo while there’s a lot of social

infrastructure to be redeveloped in Christchurch.â€? Powered with a BA from Massey and a BA Public Policy Honours from Victoria University, Jenni works long hours and juggles the lives of her ďŹ ve children aged from 3 through to 17. After completing her study she was a negotiator at parliament for the conďŹ dence and supply agreement between the Labour Government and the United Future Party. Iit was a role that helped build strong government contacts and the art of negotiating. “I don’t have work life balance. I try to ďŹ t everything in but my job is pretty demanding and requires travel and long hours. But it’s very rewarding!

ANNA-MIEKE ANDERSON Her niche in life and business found setting up a green farm of a unique type across the globe in Africa Sierra Leone is a long way from the glitz and glamour of Hollywood where movie stars and celebrities wear jewelry often harvested by African communities on the brink of destruction. But is it where Hastings-born AnnaMieke Anderson realised her dream setting up “The Greener Diamond Farm� which aims to reduce the impact mining has on its environment and people. She initially founded her business MiaDonna and Co in 2005 in

the Portland, Oregon, developing technology to make man-made diamond products as an alternative to conict diamonds, also known as “blood diamondsâ€? mined in Africa. Last year she set up The Greener Diamond Foundation which uses proďŹ ts from MiaDonna and Co to fund projects in Africa to repair the damage by the diamond trade. One of those is The Greener Diamond farm which is just over 100 acres (40 hectares) in the Kono District of Sierra Leone and employs over 500 people who are reformed child soldiers of street kids.

“I have not found any other companies doing this, at least not with the same passion and truth that we are doing it,â€? Anna-Mieke says. “I originally started MiaDonna and The Greener Diamond because I was a consumer that wanted a guaranteed conict-free diamond ring and I could not ďŹ nd one.â€? The number of American consumers supporting Mia Donna and Co continues to increase but the company also receives orders from NZ. “The Greener Diamond reminds consumers they need to be educated on the products they purchase, they

need to vote with their money because as consumers we hold the power.â€? Anna-Mieke never thought she’d be an advocate for diamond communities when she began her career as a makeup and special effects artist in Australia. She’s worked in fashion, ďŹ lm and television, on shows such as The Matrix, Babe, The Muse and The Jay Leno Show. She still has family in HB, Taupo and Auckland. “I feel it is important to remind my kids where they come from, so getting them ‘home’ is a wonderful treat for us.â€?

927( $11$ /25&.






It is inevitable we’ll wrestle with a variety of factors both inside and outside our organisations over time. By Sue Whiteley | Grow HR

Activity sometimes evolves over a long period of time and often we don’t recognise this gradual transition as “changeâ€?. However, when the going gets tough, organisations are often forced into revolutionary (and sometimes involuntary) change, such as mergers, acquisitions, restructures, process reengineering and so on. It’s a scary statistic that around 75 percent of such revolutionary changes fail! Imagine if you will, an employer who made 25 percent of its head ofďŹ ce staff redundant in a cost cutting exercise, paying out signiďŹ cant redundancy packages as a consequence, only to ďŹ nd that three months later most of those made redundant were back working in the organisation ‌what a waste of money and time, never mind the potential impact on organisational reputation and the motivation and output of remaining staff. This situation occurred because once the redundancies were concluded the organisation lost focus on completing

the change and failed to invest in the reengineering work that was required to enable those reductions in staff. That CEO didn’t stick around for long! Most projects fail as a result of • Lack of clarity • Lack of focus • Failure to provide resources or training • Poor change processes – lack of planning, measurement or appropriate project management • A static culture – resistance from staff, failure by staff to adapt or change fatigue.

So how ensure the changes we start achieve the results anticipated? A broad outline of the Grow HR change model is to the far right and tenaciously following the detail behind this approach will help. However, the calibre of leadership and the consideration given to the human responses to change will directly affect the outcome and no process can diminish the adverse impact of these

two factors where they are ignored. Leadership underpins all aspects of change largely because great leaders create great followers. As far as the human responses are concerned; people sometimes say that humans are uncomfortable with change, but in fact we frequently initiate it – we change our fashions, where we live, how our homes are decorated, what we eat, what car we drive, who we vote for and even who we live with. We are generally comfortable with most change if we have some control over it. The discomfort occurs when we feel that change is being imposed. Whilst employers have the right to require change when needed, the key to managing the human response is clarity around the reasons for the change. Constant communication and the provision of some real opportunity to contribute to what is changed and how. People will support what they have helped to achieve. The development of leadership capability and an in depth understanding of the change process by key staff is a wise investment prior to undertaking any signiďŹ cant change.

Make sure you’re ready to roll with the times • Key people identify and understand the need for change • Develop a vision for the future and a broad strategy for change • Determine who else is affected and who your opinion leaders are • Sell the vision to all concerned • Finalise the plan, involving affected parties • Effective and on-going project management • Continuous communication and celebration of progress • Retain clarity of focus until the plan is completed • Review change processes and outcomes • Report to staff on outcomes • Celebrate success and learn from mistakes • Start over again. Sue Whiteley is a Director of Grow HR. Sue has 20 years experience in all aspects of HR and has extensive knowledge of how to build a culture of high performance within large and small organisations. To contact Sue, email









NZ’s GRASS-LED RECOVERY It’s time to be business-smart if Hawke’s Bay is to show its leadership in the national economy. By Brent Paterson | Rural Directions

New Zealand is in the midst of a truly Grass-Led economic recovery. Add to this the exceptional season Hawke’s Bay is experiencing and it’s not hard to conclude we are one of the provinces contributing significantly to this recovery.

proud to be part of the industry. The feedback from various rural professionals throughout the country is that there is a serious re-balancing

change to the valuation of livestock on the Herd Scheme, farmers need to understand the implications of this scheme and the impact it can have on their forecasting.

Heartening to the region is the support that has been put together for those unfortunate farmers who were hit recently by the floods out on the coast


Heartening to the region is the support that has been put together for those unfortunate farmers who were hit recently by the floods out on the coast. It is testament to the fortitude of the people in the region when you hear the stories that are emerging from the worst effected farmers; it makes you

There is an excellent paper published on the Herd Scheme and its 2011 values by Price Waterhouse Coopers, please contact me for a copy. Now is the time to capitalise on this position and promote our region as a place to live and work. The employment opportunities are varied, from large scale dairy and sheep/beef farms through to the wide range of service industries supporting them.

Having just come through one of the best pasture growing autumns in memorable times, farmers in the region are in a ‘comfort zone’ that they are not too familiar with. Animal health challenges come with such seasons however most farmers would be happy to trade off having to monitor that closely, as opposed to having to feed supplements all season.

This is one example of an area where we can be smart with our business; positioning along with planning will assist in full capitalisation of these good times in farming.

A push to attract quality labour to our region can only be positive for Hawke’s Bay. of spreadsheets going on out there and farms have quickly returned to profitability. It is pleasing to hear that there is a true motivation to retire some debt and accountants fielding calls about making provisions for looming tax payments. My advice around this positioning is that planning early is the key. For example, there has been a significant

Why is this important? Announced values are important to livestock owners who have sold capital livestock, exited livestock farming in the current tax year, or have increased their total livestock holding. Use of the herd scheme enables the livestock owner to have greater certainty of tax costs. (extract from; PWC -May 2011 Agribusiness insights publication)

Brent Paterson is the founder and managing director of Rural Directions. His rural credentials are impressive from running a sheep stud and beef operation in Patoka, through to setting up Rural Directions HR and Rural Direction Primary Industry Management. To contact Brent email -

• Bach or holiday home • Secondary dwelling • Worker accommodation • Office buildings





EIT NOTCHES UP A STELLAR YEAR Annual report shows excellent results for the region’s biggest learning institution.

EIT crowned a year of significant achievements and new opportunities with an independent ranking that put it at the forefront of New Zealand’s tertiary educators, says council chair David Pearson. The annual report on ITP Quality’s 2010 External Evaluation and Review exercise marked EIT “highly confident” in educational performance and “confident” for its self-assessment capability. EIT received an “excellence” mark in nursing, foundation education,

business, computing, applied social sciences, fashion design and research. Other highlights in EIT’s 2010 year include: • 6 percent growth in equivalent full-time students (3298 EFTS). This represented nearly 9000 students, of whom 79 percent studied parttime. • EIT’s degree-level activity accounted for 35 percent of EFTS – the single highest area of programme enrolments. The number of Year 13 students starting degree study increased by 41 percent, and overall 61 percent of all EFTS studied at level 5 and above. • A new early childhood early education teaching degree attracted strong demand from the community and teaching profession and boosted the portfolio of bachelor degrees to 10. EIT also continued to offer a range of postgraduate qualifications. • Maori students represented 25 percent of enrolments, ahead of the regional population percentage. More than 440 international students came from 44 different countries to study at EIT.

David Pearson


• Places for the newly-launched Youth Guarantee programme,


which targets school-leavers not in training or education, filled quickly. Students enrolled in a wide range of programme offerings achieved a strong record of success. • Partnership programmes with local secondary schools increased, again with strong educational outcomes for students. • The Government approved the establishment of an EIT-based Hawke’s Bay Trades Academy, to operate from next year. EIT was chosen from a field of 113 applicants to be one of 11 academies nationwide.

• Research outputs increased by 15 percent and external research income by 38 percent. EIT achieved a $3.6m operating surplus for the year, and its strong financial performance bettered Government guidelines for public institutions. • It connected to the Kiwi Advanced Research Education Network, which provides high speed electronic connection to other research institutions, universities and institutes of technology throughout NZ and the world. David says 2010 had also been a year of significant change for EIT.

EIT received an “excellence” mark in nursing, foundation education, business, computing, applied social sciences, fashion design and research. • Prime Minister John Key opened EIT’s $8.5m project-based integrated trades and technology complex in August while the Minister of Tertiary Education Steven Joyce approved the merger of EIT Hawke’s Bay with Tairawhiti Polytechnic at the beginning of this year.

Government legislative amendments had moved councils from the large representative model to that of a smaller, focused business governance model. This had reduced the membership on EIT’s Council from 18 to eight.

Jeff Gray BMW

Hawkes Bay


6*' 0'9 $/9 5'4+'5 (41/





Economic development



Hawke’s Bay business leaders are being encouraged to enter in a private/public partnership to further Mãori economic development in the region. By Lawrence Gullery

project manager Karl Wixon.

Maori in business could be contributing $12 billion extra per annum to New Zealand’s GDP by 2060.

His presentation to business leaders was made following a review of the contribution Maori businesses make to national economy, which stands at $36.9b for 2010, compared to $16.b in 2006.

But it’ll only come to fruition if steps are made now to lift productivity and realise opportunities outside of the traditional “F” industries of fishing, forestry and farming. That is the message delivered by HB strategist and

Top Performers A review of the asset base of the 2010 Maori economy, the top industries are: 1. Agriculture, fishing and forestry, $11b. 2. Property services, $6.9b. 3. Transport and storage, $2.8b. 4. Manufacturing, $2.5b. 5. Communication, $2.2b.


The review was commissioned by the Maori Economic Taskforce to take stock of the Maori economy and look at its growth potential. “There has been a change in the method to access what the contribution is but the real exciting part is that there is a 4.3 percent annum year on year growth, outdoing the rest of the economy in the middle of a recession,” Karl says. The surprise growth areas are communication, transport and property sectors. Armed with this knowledge, Karl says it is time to pull together the positives in Maori business so the potential opportunities aren’t missed. “At the end of the day it comes down to

getting people who want to take some action and respond and that’s what we are hoping to do.

Business consultant Karl Wixon recently launched a new Maori economic development project called Te Haa.

“We need to find out who are the doers and who can implement change. Doing nothing is not an option,” Karl says.

under performing in terms of our net contribution to GDP, we’ve got to lift our production.

He’s promoting a regional business strategy called Te Haa, to bring a regional focus to Maori in business.

“Here in Hawke’s Bay we have under-used land, an aquifer and a strong regional 7( 381$ 3$.,+, profile but we really haven’t focused on or worked out The latest issue of how we can the HB Maori Business harness that Directory is now available. for For a copy contact Chan Collin at 06 876 5938. Maori yet.”

“Te Haa is the breath and we’re talking about the economy being the breath of the region and as soon as it stops or is restricted, we will be in poor shape. “To date the regional response has been uncoordinated and we’ve got fragments of the picture but don’t have a cohesive look at Maori business and so this is about gearing that up,” Karl says. Hawke’s Bay’s councils are being encouraged to be involved and Karl hopes for a public/private funding arrangement to advance the ideas. “While the results of the economic taskforce are excellent, we are still



Karl says there’s also merit helping to develop the many SMEs in the region and finding ways to “help them accelerate” when they hit “that ceiling of growth”.

Do you want independent, expert property advice? Williams’ Harvey is a firm of Registered Valuers who can provide expertise across all sectors of the property market. Our philosophy is simple - we aim to provide independent, expert property advice that is quick to obtain without compromising our professional standards.

So call us today or visit Hastings 871 0074 Napier 835 1617





TURNING HEADS IN 5 SERIES BMW Driving a BMW 5 Series not only turns heads but getss u! strangers wanting to start up a conversation with you! By Damon Harveyy

It took me a couple of weeks to finally get behind the driving wheel but boy was the wait worth it. The test drive of the latest 535d all alloy 3 litre twin turbo diesel coincided with Napier MP Chris Tremain’s charity golf day and by being fashionably late to the course, we set tongues wagging that just perhaps I was making a bucket load of money. Although I reviewed a petrol model of this last year, the diesel equivalent M Sport with 220 kW and 600 Nm of torque was more than impressive. One of the first things we noticed was

As long as you had it on you or nearby you could start the car. The locking and unlocking of the car was also novel. All you had to do was either put your hand inside the door handle (to open) or touch the door handle (to lock).

continued to marvel at the car for at least the next 100 metres.

Having being entrusted with a car worth over $150K meant I couldn’t indulge in our success of 5th place (out of 38) and the car wasn’t left at the club but returned home for more admiration.

Furthermore over the weekend we continued living the high life with lunch at Mission Estate (thanks to the $100 voucher from golf).

The following morning it was off to netball and then a coffee and a fluffy (for the 2 year old) at Opera Kitchen and then a swing by the office in Havelock North. Well this is when it all came home, that a car like this gets real attention. The

It was quiet, smooth, effortless and exciting to drive. The average fuel consumption is reported to be 6.1L/100km yet can hit 100km/h in just 5.7 seconds that it had ample boot space and was able to easily store two sets of golf clubs – a must in any luxury car. The most challenging invention to get my head around was the lack of a need for a key.

village has a proliferation of luxury cars, probably more than any other town per head of population, yet the 5 Series just stopped people in their tracks. I actually kept an eye on a group of five men, who after I passed them, they

It was then that I had a real feeling of importance, status and then a realisation of car envy (I wish it was mine!).

Over the course of the weekend I could not find too much to fault of the car. It was quiet, smooth, effortless and exciting to drive. The average fuel consumption is reported to be 6.1L/100km yet can hit 100km/h in just 5.7 seconds. Engine, tyre and suspension noise are close to non-existent and with six airbags and a host of electronic driver aids including stability control and a system that readies the safety gear if a crash is sensed there’s a five star NCAP rating. Inside, the 3D like speedo (head up display), sitting off the bonnet made keeping to the speed easy as it had your current speed and the legal speed displayed. The BMW Professional navigational

system (iDrive) was impressive with its navigation and entertainment system. It was a breeze to use and it could Bluetooth sync with my i-phone. Every three months I get the opportunity drive a top of the line luxury car. It’s a real treat and if they’re all like the 5 Series then I can’t wait for Jonathan Strong’s next drive suggestion. Bring it on!

At A Glance

Rating For: Styling, great interior, star struck adulation, economy of diesel, key less start and open and close, boot storage


Against: Nothing really to complain about – the shape of the back window did allow some rain to get into the boot when opened – but only minor issue






UNISON-A YEAR The role Hawke’s Bay’s consumer-owned network company Unison plays in our region is becoming a far more powerful one.

By Anna Lorck

Unison is building an electricity network for the future, one that will place greater power in the hands of consumers in how they choose, manage and use electricity. This year, Unison is gearing itself for the next stage of its Smart Grid Initiative which will see the company engaging even more closely with customers and their communities as the company begins to deliver these solutions to their homes and connect them to the Smart Grid. And, as it takes on what it calls “a challenging and exciting journey”, Unison will lead the power distribution industry, both in New Zealand and internationally.

with confidence,” Mr Atkinson said.

of putting its customer first.

“Unison is leading our network regions of Hawke’s Bay, Taupo and Rotorua forward in technology, innovation and communications, which are all key drivers for improving growth and productivity to support a stronger local economy and improve social wellbeing.

“We have remained true to our word and are totally focused on making sure our work will result in customer service excellence.

“We are on the journey, and our communities are coming with us,” Mr Atkinson said. Unison has moved from being a traditional provider of electricity distribution to a provider of energy and infrastructure solutions. It has set, and is delivering on, a long-term strategic direction to deliver greater value, choice and reliability to the customer. In 2010, Unison built a superior ultrafast fibre communications network to support the Smart Grid that is delivering a safer and more reliable electricity network. “Ultra-fast broadband is a key enabler of economic growth and through leveraging our fibre infrastructure we are also providing an open access platform for connecting businesses and other strategic organisations such as councils, district health boards and schools,” Mr Atkinson said.

Kevin Atkinson | Unison Chairman

We are on the journey, and our communities are coming with us Unison Chairman Kevin Atkinson announced this week an $18.5 million after tax profit result (slightly down on last year’s record), and an $8 million dividend to its shareholder, the Hawke’s


Bay Power Consumers’ Trust. “The company achieved a solid result despite the impact of the global financial crisis and is moving forward


Unison Group Chief Executive Ken Sutherland said Unison was confident in its outlook. “As we continue to prove our credentials and capability, we will transform our business and stamp our mark on the future of electricity distribution.” At the start of the decade Unison committed to building a strong culture

“Through a year of quiet achievement, Unison has reaped the first rewards of our work. We are beginning to see evidence of the paradigm shift we have made on the network and in our company performance.” Already, Unison’s investment in smart network technologies, such as distributed sensors and advanced protection systems, were providing the business with the information it needed to make better, more informed network decisions to drive efficiencies and deliver on customer expectations. “Knowing that our customers are experiencing the quiet enjoyment of electricity gives us the greatest satisfaction. In providing the most secure electricity supply we have ever had, we are delivering more,” he said. The Smart Grid Initiative has given Unison a vehicle to encourage far greater participation across the industry. “While many players in our sector remain challenged by their current business model, this year we hope through proving our credentials and demonstrating the benefits of our Smart Grid, we will take others with us. “We want the electricity distribution industry to share in the benefits because an excellent customer experience is what New Zealanders deserve,” he said.




IN REVIEW In review – 2010 was a year of solid performance. Unison has leveraged the synergies of its fibre, contracting and transformer manufacturing subsidiaries, to be in a strong financial position. UnisonFibre produced steady growth, with over 140km of fibre being built across Hawke’s Bay, Taupo and Rotorua to enable business, healthcare and education providers to enjoy a more reliable and faster service. Unison expanded its fibre network to meet market demand for superior, ultra-fast services and is now strongly positioned to deliver even more for business - opening the door to greater competition and opportunity. Unison Contracting Services Ltd

diversified in to the civil engineering, fibre and vegetation sectors to support Unison’s core electricity business and the subsidiary is now a major local employer with over 130 staff. ETEL, Unison’s distribution transformer manufacturing business, performed well. While the New Zealand market was relatively flat, ETEL experienced solid growth in the Australian market which saw the company supplying transformers into Queensland, Victoria and Tasmania. Network performance and reliability, even in the face of four major weather events, highlighted Unison’s investment to improve and maintain its assets.

Hawke’s Bay Power Consumers’ Trust Report: Hawke’s Bay Power Consumers’ Trust Chairman, John Newland commended Unison’s success for the year.

“We commend the directors, management and all employees for their achievements over the past year. “The Company is responding very capably in changing times and conditions within the electricity sector, and there will be ongoing challenges and opportunities ahead.” Shareholder value improved to $289.2 million, an increase of $4.0 million, or 1.4% over last year.

John Newland | Hawke’s Bay Power Consumers’ Trust Chairman

“The Trustees will continue to support initiatives that will improve Unison’s business to meet the needs of consumers and which also enhance the value returns to the shareholders,” said Mr Newland.

Ken Sutherland | Unison Group CEO

Through a year of quiet achievement, Unison has reaped the first rewards of our work. We are beginning to see evidence of the paradigm shift we have made on the network and in our company performance Financial Performance • $18.5 million profit result, down slightly on last year’s record of $18.9 million • Revenue continued to grow, increasing $7.5 million over last year (up 4.8%) • Group borrowings increased $12.5 million to $240.6 million, reflecting continued investment in the network • Network infrastructure investment saw total Group assets increase by $23.4 million to $627.2 million • Shareholders’ funds were impacted by a downward revaluation of land and buildings, reflecting current market conditions and unrealised losses on financial derivatives. However, Unison’s gearing remains robust with shareholders’ funds over total assets at 46% • Dividend pay out $8 million THE JULY - SEPTEMBER 2011





Keeping tab of accounts instantly helps businesses change their game plan when needed. By Cedric Knowles | KNOWLedge Accountants

I have referred in previous articles to the ways in which business can be compared to sport, particularly how good leadership, coaching and teamwork produce the results on the scoreboard. Keeping the score is one of an accountant’s core competencies and a good accountant should provide a business with the tools to produce more than just the full-time score (otherwise known as “The Year End Books!”). Owners and managers need to know the statistics so they can modify the game plan, reallocate resources and analyse where the best results are coming from. Recently there has been some criticism of accountants as “number crunchers” and not business advisors. Over 25 years as an accountant, I have seen

the good and the bad when it comes to accountants. Invariably, the good accountants have some common characteristics. It includes making sure they interpret and advise on the numbers they produce in a way that supports clients’ decision-making process, showing the correlation between pricing and volume, gross margin, or understanding the drivers of cashflow and how it differs from “profit.” Another is ensuring financial information is produced in a timeframe, format and cost that suits the circumstances of the business. I see more and more small businesses using the likes of Xero to have instant online visibility of their performance. Good accountants are aware of the issues that impact on their compliance role for the business – tax and regulation changes, industry and economy changes that might change

profit and therefore tax commitments.

A one-stop-shop is OK for generic goods like a supermarket but not necessarily for something as personal and case-specific as business advice. I am a firm believer in the concept of business teamwork.

But more importantly, they understand business is made up of a number of inter-related disciplines, which every business must do well. It includes marketing, human resources, production and service delivery, supply chain management, research, ICT, administration, finance, legal and risk management.

A number of HB businesses are lifting their performance by doing just this, utilising advisory boards with significant experience or skills in areas that business owners feel they are lacking. I work with a number of small companies which still hold an AGM with their solicitor, accountant, banker and financial advisor.

Each of these requires a distinct set of skills and there are very few businesses that can afford to have internal expertise in all of them. The art to successful business management is to know how to pull the disparate skill sets and appropriate external advice from specialists together. The accountant will use their experience to optimise the financial outcomes across all the different disciplines.

This encourages and allows the business owner to focus their efforts with confidence. To use the sporting analogy, teamwork put the points on the board.

However, my view is that an accountant shouldn’t be providing employment agreements, marketing, insurance or investment advice.

Cedric Knowles is director of KNOWLedge Accountants, Hawke’s Bay. He has worked as an accountant in the Bay since 1987. Contact Cedric by email:




Be visible in your decision – Specify FSC or PEFC certified paper! Choose the right path and specify FSC or PEFC certified paper and GEON will ensure your printed communications carry the internationally accredited and recognised logo of FSC or PEFC for the appropriate paper. To find out more please visit or call us on 0800 GEON GROUP or 0800 436 647





Finance Disclaimer “The opinions expressed in this article are those of Stewart Group’s advisers. Investors should not rely solely on the information contained in this article when making an investment decision and should firstly obtain professional advice regarding their own financial circumstances and investment objectives. Under the Securities Markets Act 1988 and the Securities Markets (Investment Advisers and Brokers Regulations 2007) a copy of our Disclosure Statement is available on request and free of charge.”


TRADING LEGALLY? The new financial adviser regulations are now in play. By Nick Stewart | Stewart Group

The new financial adviser regulations have been introduced over six months to ensure that advisers had sufficient time to comply. Now all financial advisers (or the companies they work for) must be registered. Advisers who provide investment advice must also be authorised. Those advisers who are not registered or authorised are not legally allowed to operate their business or provide any advice to clients and those that do run the risk of incurring substantial penalties. The Financial Markets Authority ( is the new regulatory body responsible for enforcing the new legislation and adviser compilance. Many insurance companies and custodial providers have taken the additional precaution of asking advisers to confirm their adviser status and will now only accept new business from advisers who are registered or authorised. It means if your adviser does not comply with the regulations, your insurance or investment application cannot be processed, so check your adviser’s status before doing further business with them. The main features of the new financial adviser regime are:

Service Providers Register The Financial Service Providers Register - is available at www.fspr. where clients can search the register for an adviser or the name of the adviser’s firm they may be considering dealing with. The register provides details of the adviser, their status, the financial services they are qualified to provide advice in and the disputes resolution scheme they belong to.

Disputes and Complaints A registered adviser must belong to one of four approved dispute resolution schemes. This is designed to be the mechanism for resolving any issues a client might have with the service they have received from their adviser. Whilst complaints about an adviser’s conduct can be made directly to the Financial Markets Authority, the client should raise their concerns with their adviser.

code of professional conduct and any breach may result in the adviser facing disciplinary proceedings, including, but not limited to a fine, suspension or cancellation of their ability to provide advice. Authorised Advisers also have a high level of disclosure and must provide clients with both a primary and secondary Disclosure Statement. The primary statement allows investors to compare advisers and their services easily while the secondary statement

All advisers now have a statutory obligation to act with care, diligence and skill. This provides the client with an increased level of confidence that their adviser meets the relevant standards imposed by the legistlation Types of Advisers There are 3 types of advisers:

1. Registered Financial Adviser – must be registered These advisers will typically provide advice on insurance products, mortgages and bank term deposits. They must issue a Disclosure Statement to a client before providing advice, although this will be a simpler format to those provided by Authorised Financial Advisers.

2. Authorised Financial Adviser – must be registered and authorised These advisers will typically provide advice on more complex products such as investments, unit trusts and KiwiSaver.

outlines the products and services offered and any service fees.

professionals which do cross the boundaries and offer financial advice (which they feel is outside their qualifications and expertise) should refer on to a specialist. An interesting aspect to the new legislation (and fiduciary duties and obligations) is that NZ is one of the first countries in the world to enshrine fiduciary principles into its advice regulations; therefore it is a pioneering step for a country which has, until recently, had very little in the way of legislation around financial advice The basic principles surrounding fiduciary duties are: • The adviser is to act with the client foremost in their mind • Transparency and openness are binding principles • The advice is to be holistic and client goal and objective focused.

Care, Diligence & Skill

3. Qualifying Financial Entity Adviser – must be registered, Although the organisation the adviser works for will be registered rather than the individual adviser. These organisations are generally larger companies such as banks or insurance companies. A Qualifying Financial Entity undertakes responsibility for training and supervising the advisers it employs. Advisers are restricted on the products they can use and can only provide advice on the Qualifying Financial Entity’s own product.


Advisers had are qaulified via a combination of exams, existing qualifications and documentation that demonstrates their good character.

At the present time there are a number of professional exemptions for real estate agents, valuers, lawyers and accountants, who in their day to day operations, offer financial advice which is not part of their core business.

They also must abide by a very strict

The FMA has said they expect these

All advisers now have a statutory obligation to act with care, diligence and skill. This provides the client with an increased level of confidence that their adviser meets the relevant standards imposed by the legislation. So before you choose a financial adviser, put any further business with your current adviser, or refer your client to an adviser, check their status on the Financial Service Providers Register. That way you know you are dealing with a reputable adviser that is prepared to abide by the new regulations and is looking after your best interests. Nick Stewart is executive director, general manager and financial adviser, and specialises in providing advice for wealth management clients. To contact Nick email:






PERFORMANCE Benchmarking is a must-use tool if you want to record how well your business is travelling. By Virgil Troy | SIL Research

Most competitive events have a start and a finish line. Without a set measure of distance, speed, time or value many sports would lose their appeal. Imagine an Olympic sprint or long distance event where athletes had no start point or finish line. Now translate this scenario into business, picture the expensive branding campaign no one measured or the business initiative with no staring baseline, sales targets or objectives. Neither of these sports or business examples makes any sense; however in business the scenarios mentioned are more common than you may think.

A simple use of benchmarking would be to measure your brand awareness and customer perception before you start the marketing campaign, then measure brand awareness again at points throughout the campaign. Questions you might ask customers or your market could include:

show an initial brand awareness of 19 percent increasing to 26 percent mid way through the campaign and finishing at 30 percent at the end. Overall an increase of 11 percent brand awareness has been recorded, the results may be attributable to the marketing campaign.

Have you heard of XYZ organisation?

“Scenario B” shows a starting brand awareness point of 19 percent changing to 20 percent mid way through the campaign and finishing at 18 percent at the end. We can conclude that little to no difference in brand perception was recorded.

• Where did you see or hear about XYZ? • Who do you think XYZ customers are? • What do you think of XYZ as an organisation? The table below is an example of how the results of the first question might pan out when measured at three stages. The results of “Scenario A”

Finally “Scenario C” on the right of the chart shows a starting point of 19 percent, changing to 18 percent mid way through the campaign and

finishing at 15 percent at the end of the campaign cycle. In this instance the brand awareness saw a decrease during the campaign. Benchmarking before, during and after a campaign or business exercise can provide critical data to show whether your initiatives are delivering results. Without such information, it is difficult to “zero-in” on what is working and what isn’t. Remember: what you measure, you can improve. Dr Virgil Troy has a PhD in Customer Relationship Management and is Managing Director and principal researcher for Napier based market research firm, SIL Research. To contact Virgil email

Chart 1: Have you heard of XYZ organisation? (three scenarios)

This is where benchmarking is a valuable tool, it measures or compares performance or practices; research methodologies can provide valuable tools to enable you to measure what you need to manage. Let’s go back to the first business example above. Imagine you’re a commercial organisation and you decide to embark on a major market branding initiative.




ǁǁǁ͘ƐŝůƌĞƐĞĂƌĐŚ͘ĐŽ͘Ŷnj 36





AN ECONOMIC BOOST Hawke’s Bay received a huge boost as Heinz Wattie’s moves production from Australia. By Lawrence Gullery

The decision by the international food producer to consolidate production at its Hastings plant is being seen as a major bonus for the local economy.

Hastings Mayor Lawrence Yule says “the decision by Heinz Wattie’s will allow us to add signiďŹ cant value to the food that already comes from our fertile land while at the same time, building the local economy and creating stable employment for the people of Hawke’s Bayâ€?.

The company recently announced the production of sauces, beetroot and some canned products will move from plants in Victoria, Brisbane and New South Wales, to Hastings.

Lawrence says �this consolidation by Heinz Wattie’s along with a major investment by McCains in their plant in Hastings further cements the region as the food production capital of Australasia".

Heinz operates a number of factories across Australia and New Zealand and shares production between the two countries. The decision to consolidate part of the manufacturing here is being seen as a critical step to become more competitive in a challenging environment and to accelerate future growth.

Wattie’s to move production here, shows their conďŹ dence in our local economy and our ability to deliver on the world stage.â€? Heinz Wattie’s Chief Operating OfďŹ cer Michael Gibson says a number of jobs are likely to be created at the Hastings facility while the current infrastructure is sufďŹ cient to absorb the additional volume of produce. It’s expected that the changes will be implemented within 12 months.

Our Heretaunga Plains have long been regarded as some of the most fertile soils available, arguably the best food in the world is being grown here

Lawrence says the processing and manufacturing industry is important to the future growth of Hawke’s Bay and is an area Hastings in a “powerhouseâ€? in. An economic proďŹ le and trends report for the Hastings district in 2009/10, shows the sector had a nominal GDP of $739m and employed over 5,500 people.

Lawrence says“the decision by Heinz

“When we combine outstanding food

production capabilities with our broader regional infrastructure such as the Port of Napier, Hawke’s Bay is a world class proposition in what is a highly competitive international environment.� “We need a united and consolidated vision across the region to ensure that we simply don’t miss the boat. “Opportunities like this don’t come around the corner every day, so we must put our very best foot forward each and every time.�

Lawrence Yule








NATURAL DISASTERS ON PROPERTY VALUES Nature makes it a year for housing market to remember.

Waimarama bridge collapsed out after severe flooding throughout the region.

By Paul Harvey | Williams Harvey

This year has been an ‘annus horribilis’ with regard to natural disasters as we have witnessed mother nature indiscriminately unleash her fury overseas and more recently right on our doorstep. This article explores what may happen to the local property market in these affected areas, value levels, and also why the property markets respond in such a way. In the wake of any natural disaster there appears to be a knee jerk response and it would be no understatement to say the impact on property values is a negative one across the market in the affected areas. A disaster can leave some buildings damaged, some not, it can also leave some buildings unscathed but the land upon which they are built, impaired. Regardless of whether the land or building has been damaged the negative impact can leave property owners with mortgages worth much more than their homes. This is a result of property values being heavily influenced by consumer sentiment, and after a natural disaster it appears the negative sentiment is applied in a broad brushstroke approach with regard to values, regardless of any damage. The property market is always


driven by uncertainties, sentiment, fear, circumstance, timing, greed, confidence, panic – Christchurch will be no different and neither will our local market. Property values will recover, however this is dependent on many factors, important of which are improved consumer confidence and the responsibility taken to repair the damage incurred. Nevertheless,

to what values may do as there are simply no sales transactions to guide a valuer immediately after an event. It would be our recommendation to consider waiting until the property market returns to some normality, limiting any financial impact upon the sale of a property.

Reinstatement means reinstating the asset to an as new condition to the same scale as previously while indemnity value is the value of the item at the time of the loss clean ups are expensive, the local bill is estimated at $10 million¹. Even if insured, property owners have been frustrated by red tape and compliance issues involved in the insurance process, this year compounded by the scale and amount of disasters. This has been experienced in Christchurch where the volume of claims is outweighing the number of people able to assess and process the claims. What the insurance companies are prepared to underwrite and what property owners believe they have covered are not always the same. All these factors affect the impact of values. Therefore, the extent and speed of which a property market may readjust after a natural disaster is difficult to predict with regard


As valuers we are often asked to value property after a natural event for insurance purposes and this is a whole topic in itself (please refer to our latest newsletter The type of valuation is dependent upon the insured’s policy and whether they have full reinstatement cover or an indemnity cover. Reinstatement means reinstating the asset to an as new condition to the same scale as previously while indemnity value is the value of the item at the time of the loss. Payment of indemnity value is designed to put the insured in the same financial position they were in immediately before the loss occurred. In summary it appears that inspite of our

ever improving 21st Century technologies with regard to quake proofing, flood proofing and tsunami warning systems, Mother Nature can often still out do them. It can be acknowledged that such improvements to building codes have saved more lives and lessened the extent of the damage, however, natural disasters still leave properties impaired and undoubtedly impact on their values whether actual or perceived. The long term outlook is an acceptable one where after an initial stalling of the market, reaction from buyers due to the stigma, it will in time re-establish. The aftermath and recovery of any natural disaster is always challenging and it will take time to see how the value trends and patterns emerge. Like Christchurch our local markets will be in a holding pattern, recovery being the most expedient issue. On a positive note, history has showed in the face of great adversity ordinary people can go on to extraordinary things. Think Napier 1931, San Francisco 1989. Think Christchurch 2011. Paul Harvey is the Director of Williams’ Harvey Registered Valuers. He has a diverse and broad knowledge of the HB property market having worked both in Real Estate as well as being a Registered Valuer. To contact Paul email –

PRO Legal



Salvage what you can to restart business but remember the rules and regulations. By Emma Dawson | Bramwell Grossman Lawyers

Like the mythical bird, a phoenix company rises from the ashes of a failed, often insolvent company either before or after liquidation.

It may also preserve jobs.

Abuse of arrangements

The phoenix company continues on the business of the failed company, often with the same or similar name, employees, directors and assets of the old company. It gives the appearance of “business as usual�. In most cases, the failed company is heading towards liquidation due to crippling liabilities, but there are economic aspects the directors wish to preserve.

Problems arise when the phoenix company acquires the assets of the failed company below market value. The purpose of such arrangement is to defeat creditors as the failed company is left with less capital to repay creditors. Transfers at undervalue occur where the goodwill of the failed company is disregarded. Such transfers usually occur prior to liquidation and the supervisory eye of the liquidator who is required to act in the best interests of the creditors and obtain best price for the company’s assets.

Legitimate arrangements


While some say phoenix companies defeat creditors of the failed company or mislead the public into believing they are dealing with the same entity as before, legitimate phoenix arrangements can be beneďŹ cial. Provided the phoenix company acquires the assets of the failed company at full market value, creditors suffer no disadvantage. Phoenix companies can in fact be beneďŹ cial to creditors as they enable the preservation of the value of the company which could otherwise be lost during liquidation, for example goodwill.

In 2006, parliament introduced additional provisions to the Companies Act 1993 to prevent abuse. The principal section, is s 386A which Paulfor McCardle, BikeNZ of failed restricts 5 years directors companies from being a director of a phoenix company, directly or indirectly be concerned in the promotion, formation or management of a phoenix company or a business that has the same or similar name as the failed company’s pre-liquidation. This prevents the director of a failed company from nominating a spouse or any related person as a director of

the phoenix company and applies to a business rather than just a company. Therefore the director of a failed company cannot work as a sole trader or in a partnership using the same name. Any person who contravenes this section commits an offence and is liable on conviction to imprisonment of 5 years or a $200,000 ďŹ ne and is liable for any relevant debts of the phoenix company.

Phoenix companies can in fact be beneficial to creditors as they enable the preservation of the value of the company This also applies to managers who accept instructions from a person who the manager knows is in breach of the provision.

Exceptions The Companies Act provides exceptions allowing directors of failed companies to be involved in a phoenix company: (a) Where a liquidator or receiver

arranges the sale of the failed company, or the failed company is transferred by a deed of company arrangement, the acquiring company is known as a successor company. The successor company may issue a notice in accordance with the Act, permitting a director from the failed company to participate in management; or (b) The director applies to court for an exemption within ďŹ ve working days after the start of the liquidation of the failed company; or (c) if the phoenix company has been using a similar name to that of the failed company for 12 months before liquidation of the failed company and has not been dormant during those 12 months i.e. has been trading and keeping accounting records.

Conclusion A phoenix company arrangement can beneďŹ cial but directors, managers and business advisors of insolvent or nearly insolvent companies need to take these provisions into account when looking to restructure a failing business. Emma Dawson is a partner at Bramwell Grossman Lawyers in Hastings. She has a Bachelor of Laws from Otago University. Emma specialises in commercial law, asset planning, trusts and succession planning. To contact Emma –


&23,(5 35,17,1* 62/87,216






UNDER ONE COUNCIL The Profit asked three MPs in Hawke’s Bay what they believe are the pros and cons for business if Hawke’s Bay’s councils amalgamate. We asked if a super council will be good for business and tourism development and if the issue would spark any debate during their campaigns in the coming general election. By Lawrence Gullery When you ask business people how they came to work in Hawke’s Bay you get two principle answers, family connections and “I just stumbled across it�.

Once again amalgamation would ensure that medium to long-term goals were achieved without budgets pulled because there were no results in just a few months

That’s what Napier MP Chris Tremain believes when analysing the reasons why people move to the region. “Many of us think our lifestyle is why businesses move here. In the cold light of day the Hawke’s Bay’s lifestyle is arguably no better than similar lifestyles offered in Nelson, Marlborough, Waiheke Island, or Martinborough.� Chris says few new businesses are moving to the Bay from outside of the

Chris Tremain

land and services to accommodate businesses.�

region and there needs to be more compelling reasons for companies to relocate to the region. And the ďŹ rst step would be to unite the region in a common business growth strategy.

Chris supports the Hawke’s Bay Chamber of Commerce’s efforts to unite the region with a business development plan, however it must have the “full commitment� of councils who hold much of the “purse strings�.

“This requires a common district plan with the same rules for development across the province. It requires clarity about the types of businesses we wish to attract and ensures we have the

“This will do far more for jobs and wage growth in our province than subsidising a couple of low-wage tourist

attractions. Once again amalgamation would ensure that medium and longterm goals were achieved without budgets pulled because there were no results in just a few months.â€? Tukituki MP Craig Foss says it is difďŹ cult for businesses to deal with ďŹ ve different councils which is proving to be a major barier. He’ll continue promoting a “one Hawke’s Bayâ€? campaign to focus on regional priorities and agrees an initiative such as Business Hawke’s Bay could bring that focus. “The private sector certainly does need to make sure it is regionally focused leading by example. Councils need to ensure they are doing all they can, to maintain and grow existing business as well as attracting new investment.







VS Craig is all for using the region’s “traditional strengthsâ€? as the platform for further growth and attracting new business. “We should take conďŹ dence and pride knowing that Hawke’s Bay has all the world is demanding from food production, environmental integrity, tourism and related services. “Individuals with capital are moving

to the Bay, McCains and Watties are expanding, ultra fast broadband will deliver Hawke’s Bay to the world. The future for Hawke’s Bay in incredibly bright.â€? Labour’s list MP for Napier Stuart Nash says the challenges facing business in the Bay are the same ones which are challenging companies around the country. “For exporters, it’s the high dollar; for businesses hoping to expand, the highest cost of capital in the OECD; for all companies, ďŹ nding suitably qualiďŹ ed and experienced people with the right competencies needed to optimize proďŹ tability,â€? he says. Another major problem is the simple fact people aren’t spending. “Those on lower incomes haven’t any spare cash and those on upper incomes are either saving or retiring debt.â€?

Craig Foss

He says the solution could be a more exible monetary policy that promotes exchange rate stability, a fairer tax system that results in greater equity, reinstating R&D tax incentives and a greater emphasis on skills training.  Stuart says he supports “any serious initiativeâ€? which can grow business in the region, when asked about the formation of Business Hawke’s Bay. “While I am aware that Ron Massey from Napier City Council does a good job promoting Napier to prospective businesses, the various incarnations of our regional economic development organisation don’t appear to have been particularly successful at growing the economic pie.  Generating more jobs in the Bay comes down to the ability to attract more business to the region, particularly more industry, by being innovative. “For example, three year local and regional rates holidays to relocating or

Stuart Nash

new companies employing 10 or more people. Another initiative I would like to see is regulatory consistency across the region. I am against council amalgamation, but would like to see the various councils co-operating on a project that aligned RMA, building code regulations etc. Shouldn’t be too difďŹ cult I would have thought.â€?








Out & About

HBS Launch The new look HBS Bank branch in Hastings was recently opened. The bank is the major sponsor of the Hawks basketball team and guests got to test their ball spinning skills. New coach Paul Henare also gave an insight into the life of a professional sports person, having recently retired at the top of his game.

XPLORE Launch Xplore, a HB web company recently moved into new premises above Farmers in Napier. They celebrated by also launching a new look brand.

ICE Expo Innovation, Celebration and Education were the key phrases behind the ICE Expo held at the Hawke’s Bay Showgrounds in Hastings in June, showcasing a onestop shop for the latest technology and developments in the horticulture, fruit growing and viticulture industries.

MERCEDES LAUNCH Mercedes Benz Hawke’s Bay opened a new dealership in Napier and also showed off the latest CLS Class luxury car.




Out & About

Te Haa Business leaders heard a presentation from consultant Karl Wixon on the potential of the Maori economy nationally and the Bay’s Te Haa strategy.

KNOWLEDGE Xero founder and CEO Rod Drury was guest speaker at the KNOWLedge Accountants new offices in Queen Street, Hastings.


Grow Human Resources specialists in all employment and health & safety matters. Contact us today to discuss how we can help maximise your profits through your people!



Leadership Week was held recently and guest speaker at the women’s breakfast in Hastings was communications supremo Heather Shotter.


PRO Diary



Aug 2: The Great Wine Debate. Syrah or Pinot Noir New Zealand’s best red grape variety? Join Steve Smith MW (Craggy Range), Grant Taylor (Valli Wines) and others for a light hearted argument over dinner at The Great Wine Debate. For more information, Aug 3: Green Drinks. The Thirsty Whale, Harpoon Bar, Ahuriri, Napier Aug 4: Business After 5 at Crighton Stone. UPSTAIRS 205 Hastings Street (East), Hastings. Open to chamber members only. Aug 5: New Offices for HB Chamber A ‘soft’ launch of Business Hawke’s Bay will be held in the new Chamber offices to meet new members of the Chamber Board, the new Business Hawke’s Bay Board as well as a chance to look around the new offices. Venue 205 Hastings Street. RSVP to Aug 8 UnisonFibre Business Breakfast UnisonFibre will present the future of fibre at a breakfast at Napier’s War Memorial Centre. For info email Aug 9 UnisonFibre Business Breakfast. UnisonFibre will present the future of fibre at a breakfast at Hastings HB Opera House For info email Aug 24: Business After 5 at Kennedy Park Top 10 Resort. Storkey St, Marewa, Napier. Open to chamber members only. Aug 30: Hawke’s Bay HRINZ to be held at Opera House The next Hawke’s Bay HRINZ event will be held at The Opera House and promises to be an interactive session aimed at addressing the issues facing the long term economic wellbeing of the region, with the bold objective of delivering practical solutions and actions from the ground up. Tickets available through Gill Riley on 021 748 955, and event details through Branch President, Steve Evans on 833 6465 Sept 1: Breakfast with Prime Minister John Key Napier Golf Club, Waiohiki, Napier.

involved creating something for everyone.

Hosted by Plunket as a fundraiser for their new family centre in Onekawa.

Sept 14-15: International Takitimu Indigenous Peoples Business Conference. To be held at the Hawke’s Bay Opera House in Hastings. For more information

Tickets $45 available from Chris Tremain’s electoral office in Napier and Plunket’s Hawke’s Bay office in Hastings.

Sept 17: Spring Racing Carnival. Hawke’s Bay Racing Incorporated is one of New Zealand’s most high profile clubs and a leader in thoroughbred racing in this country. Day 2 of the Spring Carnival is September 17th and Day 3 is October 1, at the Hawke’s Bay Racing Centre, Hastings. For more information

Sept 7: Westpac Hawke’s Bay Chamber of Commerce Business award finalists announcement. The finalists of this year’s awards will be announced at a special function at the business expo.

Sept 18: Rugby World Cup Pool A match. France versus Canada, at McLean Park in Napier.

Sept 7-8: UnisonFibre HB Business Expo. This year’s event will be held at Taradale’s Pettigrew.Green Arena and will feature a wide range of guest speakers and exhibitors. For more information go to

Sept 21: Business After 5: Stewart Group. 204 Karamu Road, Hastings. Open to chamber of commerce members only. Sept 24: New Zealand Olive Festival. For the second consecutive year, Hawke’s Bay will host the New Zealand Olive Festival, a celebration of all things olive featuring the top olive makers/ growers in the country, as well as workshops and demonstrations.

Sept 8: Business breakfast with the stars of Maori music. Come and hear how musicians have made a living and a business out of their careers in the music industry. Featuring performers from this year’s National Waiata Maori Music Awards. Venue - the Hawke’s Bay Opera House, Hastings. For more information

Sept 27: Rugby World Cup Pool A match. Japan versus Canada, at McLean Park in Napier.

Sept 8: CHB The Festival. The annual celebration of art, music and food on he spectacular hilltop of Pukeora Estate in Central Hawke’s Bay. For more information Sept 9: Hawke’s Bay Regional Signature Dish Awards 2011. The best of HB produce will be presented around the region’s finest restaurants and cafes which will be presenting their Signature Dishes using local produce over a five week period. Vote in the people’s choice awards. Cafe, casual and formal restaurants are

Oct 18: Hawke’s Bay A&P Mercedes Benz Wine Awards. In recognition of the best wines and winemakers in Hawke’s Bay. Celebrate fine wine and be part of the prestigious awards, an evening with the best wines and winemakers in one of New Zealand’s leading wine regions.

EDITOR/PUBLISHER: Damon Harvey 06 878 3196, Twitter - @profithb

THE PROFIT is independently owned by Attn! marketing pr and is published four times a year. Copyright ©2011: Attn! marketing pr

SENIOR JOURNALIST: Lawrence Gullery 06 870 8008,

All material appearing in THE PROFIT is copyright and cannot be reproduced without prior permission from the publisher. Neither editorial opinions expressed nor facts stated in advertisements are necessarily agreed to by the editor or the publisher of The Profit. While all due care and diligence has been taken to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information or for any consequences of reliance on this information.

CONTRIBUTORS: Wray Wilson, Nick Stewart, Cedric Knowles, Brett Burgess, Paul Harvey, Brent Paterson, Sue Whiteley, Emma Dawson, Dr Virgil Troy, Anna Lorck. ADVERTISING SUPPORT: Gerard Cook 06 878 3196, PHOTOGRAPHY: Lawrence Gullery, Donna Elliott, John Cowpland. DESIGN: Adam Russ & Lawrence Gullery PRINTING: GEON DISTRIBUTOR: Reach Media SUBSCRIPTION ENQUIRIES:


Do you have a business event you want to tell the rest of the region about? Email your diary listing to


Attn! marketing pr Phone 06 878 3196, Fax 06 878 3194 PO Box 8809, Havelock North 4157 Vol 06 • July - September 2011

Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.