INSPIRING BUSINESS IN HAWKE'S BAY
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Meet our innovators David Trubridge Tow and Blow McLaren Stainless Phoenix Fire Pumps DISHED UP
Cuisine to you
Q&A
Milton Andrews
RUSH MUNRO’S
Still scooping at 90 years
APPLE PIONEER
John Paynter
Backed by BDO
www.bdo.nz
Backing Hawke’s Bay Business BDO Central, Chartered Accountants & Business Advisors
At BDO, we believe there is no substitute for local presence, experience and insight. That’s what you get with BDO, backed by the depth and breadth of resources you only find at a leading global accounting firm. If you’re looking for an exceptional local adviser, with the backing of a national and international network, then BDO Napier is the perfect firm for you.
Audit | Tax | Advisory P: 06 835 3364 E: napier@bdo.co.nz
CONTENTS
INSPIRING BUSINESS IN HAWKE'S BAY
Meet our innovators
PRO FEATURES 10-11 12-13 14-15 18-19 20-21 24-27 28-29 30-31 32-33
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Serving up Success on a plate Celebrating a Hawke's Bay icon Ashley Hartley – A legend passes on BHB –Collaborator Championing Economic Growth Top honours for Horticulturalist John Paynter Leading Light David Trubridge McLaren Stainless – A leader in the food industry Tow and Blow has many uses Phoenix Fire Pumps
David Trubridge Tow and Blow McLaren Stainless Phoenix Fire Pumps DISHED UP
Cuisine to you
Q&A
Milton Andrews
RUSH MUNRO’S
Still scooping at 90 years
APPLE PIONEER
John Paynter
Cover photo by Clinton Llewellyn
PRO EXPERTS 39 41 42 43 44 45 46 47 48
Pro Primary by Brent Paterson Pro Finance by Tobias Taylor Pro RMA by Cameron Drury Pro IT by Simon Fletcher Pro Education by EIT Pro HR by Kimberly McKay Pro Legal by Edward Bostock Pro Property by Paul Harvey Pro Business by Suzie Clifford
10-11 10-11
PRO REGULARS 4-5 6-7
Pro HB – What’s happening in the Bay Pro Q & A Milton Andrews
BUSINESS PROFILES 8 22
Monique Driving You enableBusiness 20-21
32-33
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EDITORIAL A farewell to a Legend During the course of my career I have been fortunate to meet some inspiring business, community and sport leaders. I’ve spent time with the likes of Sir Ralph Norris, Sir Stephen Tindall, Sir Graeme Henry as well as Zinzan Brooke and Michael Jones. They won’t remember me but in the short time I spent with them, I was able to observe their attitude and approach to life. There are many local leaders that I’ve looked up to, the likes of Kevin Atkinson, Graeme Lowe, Jenny Yule and Peter Dunkerley. It wasn’t their success that makes them different but their generosity, whether that be financially or giving of their time. Sadly Hawke’s Bay recently lost a leader that deserves to be held up with the best that Hawke’s Bay has produced. Ashley Hartley died while on a family holiday in the UK. Ashley had a successful career that spanned 50 years in the construction industry. His reputation for perfection is etched into the foundations of buildings such as Whakatu Freezing Works, Takapau Meat Plant, Hawke’s Bay Prison, the Regional Sports Park Grandstand and Farmers Hastings and Napier.
Editor Damon Harvey damon@theprofit.co.nz
He had a long career with Mackersey Construction and was then instrumental in the fast paced growth of Gemco Construction.
Ashley was one of a kind; a man that worked incredibly hard for Gemco but also for the industry. He was also a dedicated family man, who had fantastic time management skills that ensured his family came first, despite working up to 60-70 hours a week. In 2013 I wrote a profile on Ashley in The Profit which highlighted his many achievements. I spent a couple of hours with Ashley in his office where he shared some of his approach to work and home life. He talked about how we all should strive for perfection. Aiming for 100 percent, meant that you need to set your sights at 110 percent and that would ensure success. Attn! Marketing pr also did a ‘day in the life’ video of Ashley as part of his 65th birthday celebrations. The theme of the video was to create a clone of Ashley. I was given the responsibility of wearing an Ashley mask and we did everything that he would do during the normal course of a working day. This would start before dawn and finish late at night. The video was a huge hit at the birthday party. Unfortunately, there was a tragic twist that just three years later Ashley died at 68 years. Although we couldn’t clone Ashley, he made certain that he cloned himself. He passed on his knowledge to many of
the staff at Gemco as well as builders, construction managers and quantity surveyors throughout New Zealand. As well as sharing his knowledge, he also passed on his approach to life. He treated everyone as his equal, he was incredibly courteous, generous with his time and hard working. In this issue of The Profit, we publish an obituary to Ashley. See pages 13-14. Since the previous issue of The Profit, I have been successful in becoming a Hastings District Councillor. The campaign period was a lot of hard work and I would like to thank everyone that supported me during that time. The hard work now begins. I want to ensure Hastings has sustainable economic growth, that council is more engaged with its people and I also want to see our CBD revitalised. The Profit has played its role in telling the success stories of local businesses and this will continue. Inside we have a 10page feature on businesses that are exporting unique products to the world. We also meet Milton Andrews, the new president of the Havelock North Business Association and we celebrate 90 years of iconic ice cream maker Rush Munro's. Enjoy the read!
EDITOR/PUBLISHER: Damon Harvey 06 878 3196, 021 2886 772, damon@theprofit.co.nz, Twitter – @profithb
THE PROFIT is independently owned by Attn! Marketing PR and is published four times a year. Copyright ©2012: ATTN! Marketing PR
CONTRIBUTORS: Simon Fletcher, Clinton Llewellyn, Suzie Clifford, Paul Harvey, Brent Paterson, Kimberly McKay, Catherine Wedd, Edward Bostock, Cameron Drury, Catherine Wedd, Amy Shanks and Anna Lorck.
All material appearing in THE PROFIT is copyright and cannot be reproduced without prior
ADVERTISING SALES: Kem Ormond; sales@theprofit.co.nz, 027 272 4470
care and diligence has been taken to ensure accuracy, no responsibility will be taken by the
PHOTOGRAPHY: Julia Jameson, Damon Harvey, Simon Cartwright,
publishers for inaccurate information or for any consequences of reliance on this information.
Amy Shanks, Clinton Llewellyn DESIGN: Julia Jameson PRINTING: FORMAT DISTRIBUTOR: Reach Media
permission from the publisher. Neither editorial opinions expressed nor facts stated in advertisements are necessarily agreed to by the editor/publisher of The Profit. While all due
ATTN! Marketing PR p 06 878 3196 | f 06 878 3194 | www.attn.co.nz PO Box 8809, Havelock North 4157 Vol 27 • November – January 2017 ISSN 2253-5292
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was $4,995
HOT PRICE
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was $5,495
HOT PRICE
$4,395
*
PRO HB
Hawke's Bay firm raising the bench mark Hawke’s Bay business Heritage Hardware is pushing the boundaries of Kiwi kitchen design with world-leading Arborite laminates. The affordible, attractive benchtop solution brings fresh competition and greater choice to the New Zealand market. Laminates have been modernised, with new technology creating stylish designs and improving perceptions of the product. Heritage Hardware Sales Consultant Dion Fyfe says advances in digital imaging mean customers can get the look of a stone bench top for half the price.
Dion Fyfe
“We can provide durable laminate that has never looked so real. High definition imaging is closing the gap on stone and wood surfaces,” says Dion.
Arborite Vice President of Marketing and Sales Mike De Rita says the decision to partner with Heritage Hardware is simple.
“Photos are taken of stone slabs and a direct copy is made so you get the same appearance.”
“We share the same core values of building new markets with innovative high-quality products, supported by people who care, offering service our customers can count on.”
Cringing memories of grandmothers laminate benchtop are a thing of the past, as more people choose modern, high-pressure laminates over traditional benchtop materials. “We have come a long way from plastic-looking laminates of the 1970s, we offer more than 80 Arborite laminates in different colours and patterns with the added benefit of scratch and stain resistance.” Heritage Hardware is the exclusive New Zealand stockist of Montreal based Arborite premium laminates, which come in a variety of textures and on-trend decors. The product gives designers, architects, and specifiers a huge range of options for projects big and small. “It’s easy to install and affordable, we see a huge gap in the market where laminate has not seen much competition – that’s all set to change.”
Alongside the new laminates, Heritage Hardware sell more sinks than any other supplier in the country. Their range includes classic stainless steel, Shaw ceramic butler sinks and German designed EcoGranit sinks, bringing European flair to Kiwi kitchens. Taps, handles, Arborite and Eurostone engineered stone surfaces make up their cornerstone collection. The family owned business was established in 1986 and relies on solid relationships to manufacture and source products that are functional, reliable and beautiful. “We have been in business for 30 years and owe our success to New Zealand’s discerning architects and designers, who rely on our innovative hardware,” says Dion. “We strive to maintain an edge with competitive pricing and top-level customer service.”
TAKING CARE OF OUR ENVIRONMENT AND OUR ECONOMY REQUIRES
PARTNERSHIP We foster strong connections with the community Resource Consent Advice and Planning Transport Planning • Pollution Control • Biodiversity Online Irrigation Data • Water Management Want to know more? (06) 835 9200 / www.hbrc.govt.nz www.youtube.com/HBRegionalCouncil
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ContainerCo consolidates container depot operations
Cycle tourism business scoops top award Cycle tourism business Takaro Trails is the top tourism provider in the region. The business took out the supreme award at the fifth annual Hawke’s Bay Tourism Industry Awards held at MTG Theatre. Three prominent individuals who have made significant contributions were also acknowledged, Di Ross of Cottages of St Andrews was recognised as Ambassador for Tourism in Hawke’s Bay, Rebecca Tacon of Planit Event received the Rising Star Award, and Neil Fergus received a Services to Tourism Award. Hawke’s Bay Tourism General Manager Annie Dundas said “It’s important to recognise and celebrate the local businesses who work incredibly hard to deliver exceptional experiences for visitors to Hawke’s Bay. People’s Choice Award Winner: Bay Tours and Charters Small Accommodation Winner: Greenhill Lodge Large Accommodation Winner: Navigate Seaside Hotel and Apartments Activity and Attraction Winner: Bay Tours and Charters Small Business Award Winner: Takaro Trails Supreme Award Winner: Takaro Trails
NZ Digital
ContainerCo (NZL) Limited (ContainerCo), is moving its container depot operations from Battery Road. ContainerCo’s managing director Ken Harris says with the busy fruit export season now over, the company was in a better position to consolidate its container storage and maintenance services to its Onekawa site in Austin Street. It will also use part of its new site in Mersey Street, which is under construction. “We have been winding down the Battery Road site for the last couple of months and we’re now in a position to fully exit and consolidate on our other sites. Ken says the local export sector is growing in the region, and to support this growth both NZL and sister company ContainerCo (NZL) are committed to investing in both Hastings and Napier. Demand for facilities in Hastings is driving employment and investment thinking within the company but over the next two years CCNZL’s Mersey Street facility will also develop a range of facilities to meet shipper requirements. ContainerCo is New Zealand’s largest independent container depot operator with depots in Tauranga, Auckland, Napier and Christchurch; adjacent to the country’s four largest container ports. Its customers include some of the world’s largest shipping lines.
+ Profit
HB Arts Festival New energy on local councils Sir Graeme Avery and his vision for sport The Wairoa railway line Mahia's rocket base
Loss
The Water Crisis Water to China for free Chlorinated Water Buying bottled water Summer water restrictions?
Record crops call for more workers Pipfruit New Zealand’s new directors Cameron Taylor, Bruce Beaton and Peter Beaven, who was re-elected for another term, said the industry cannot reach its record breaking potential unless it attracts hundreds more people to join them. New Zealand grows the best apples and pears in the world, and over the coming five seasons will grow hundreds of great jobs offering promising futures and career opportunities, they said. Now ahead of forecast to becoming a billion-dollar export business by 2020, production will increase by 30 percent in five years and will need 4,000 permanent and seasonal jobs to harvest, market, and export the crop to more than 70 international markets. Pipfruit New Zealand is undertaking a major work project which includes developing an interactive tool that will identify and track all the new and different jobs available when they are coming on stream and their value, along with the qualifications, skills and experience required to match them. This industry-led tool will provide a real pathway for people wanting to learn and find out more about new opportunities available now and in the future and how to prepare and gain employment.
Websites, Digital Marketing & Strategy
www.spott.nz
Website Solution www.spott.nz NZ Digital were very professional in their approach to our project and we are pleased with the end result from the brief provided. Our new website is a much better reflection of who we are and the service we provide to our customers. We would recommend NZ Digital to others” - Jared Taylor, Spott Learn more about this project and others at www.nzdigital.co.nz
Wordpress Web Design | 21a Hastings St, Napier | p. 06 650 5754 | e. info@nzdigital.co.nz | www.nzdigital.co.nz
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PRO Q&A
Q&A
Milton Andrews Milton Andrews is the newly appointed president of the Havelock North Business Association. Milton is well known in the village, both for his hair styling skills, as the owner of Milton Andrews Hair Design, as well as the face of social media videos promoting Havelock North.
Where did you grow up? I grew up in Central Hawkes Bay, Waipukurau/Waipawa area. It was the period of big families and homes with unlocked doors. I feel very spoilt to have grown up with the abundance of community spirit and I think that is why I am so passionate about the village. Where did your career begin? My career started with one of the most talented and passionate hairstylists, Phillip Hunt (international award winning stylist) of Phillip Hunt Hair design in Hastings. A man known throughout the 80's and 90's for his upmarket hairdressing ability and business acumen. I owe him a lot not only for his teachings of the craft of hairdressing, but also his wisdom of life. I was a fresh 16-yearold with energy to burn and much to learn. I soaked it all in and I still use that knowledge and inspiration in my own salon. When did you set up your own business and what motivated you? I started my own business approximately 12 years ago. I always knew I was going to own a salon and Havelock was my destination for this because of the very essence of village life, the sense of community, the vibrancy. Why would you want to be anywhere else? Who has inspired you in business? Anyone you’ve looked up to or taken advice from? I have always been taught that in anything you do seek out the successful experts and learn, absorb and admire what makes them tick then always create your own beat. For me personally, I am continually inspired by people I meet, but the aspiration to be a business owner came from working with Phillip Hunt 6
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and the way he built a business around the strength of his team.
forget my 70k (downhill) electric bike – awesome!
What inspires you everyday?
You set up the short videos for Love Havelock North. What made you decide to do them?
Having had both my parents pass away in front of me at an early stage of life and not having that parental backstop (don't get me wrong I am a happy orphan) I have discovered that what challenges are put in front of you can also be the most rewarding. Every second counts and I don’t take anything for granted. You’re in a job where you talk all day – do you ever switch off ? Absolutely!!! I spend 2 hours a day, 1 in the morning and 1 at night reading to keep up to date with what’s important and relevant in today’s world and planning how to incorporate that learning into my everyday life. You love technology. What devices and apps etc do you use regularly? As most know I am a keen user of Facebook, however I do have some favourite apps. Medium - a networking app for writing that enables people to read, write and interact with stories that matter the most. It’s my number 1 go to app to stay current on trends. All the best experts are on it. Filmfilmic pro - by far the best money I have ever spent on an app, allows your iPhone camera to step up to next level videography and is what the professionals use when a mobile phone is needed. Mevo - my app for my latest 4k camera, allows you to edit whilst you film. iMovie - On the run video editing. My hardware devices I can’t do without; rhode audio gear, iPhone 6 plus, session go pros, 70d camera with wide angel lenses, gimbal stabilizer and not to
I was one of the first at the forefront locally to use periscope (live streaming app). I saw live streaming as a way of the future as the best form of engagement. Statistics were showing 1 in every 4 seconds on the Internet is spent on social media and raw unedited videos with great context was getting the best traction. You’ve recently become president of the Havelock North business association. Why? Havelock North gets in your blood. As a member of the Business Association for a couple of years now I could see the work that Sam Jackman and the team had done to raise the brand awareness of Havelock North and I really wanted to get stuck in and continue this great work. I wasn’t sure about leading the team but I had people around me who told me I could do it and it’s great to have the support and confidence of the association behind me. I can tell you, it is all go and the amount of knowledge I am gaining blows me away. We are a small village but there is a lot to learn and I am loving every minute of it. What are some initial plans or ideas that you would like to get rolling with? We have a five-year plan that we are working on which involves not only the marketing of Havelock North as a destination for both tourism and business opportunities but is focused on ensuring we have a strong platform for future growth and innovation. This includes ensuring we have the amenities to support a larger village community, such as parking, public toilets, seating
PRO
Q&A
How quickly will/or has Havelock recovered from the water crisis?
etc are provided for; the flow of the village as we expand; that we retain the character of the village despite growing in size and statue; that we continue to attract high profile events and that we continue to build business confidence and provide the tools for businesses to achieve success in the village. My key focuses from the strategic plan are: – Ensuring the association offers a strong value proposition to our members – Build on our promotional calendar to drive consumer traffic to the village businesses throughout the year – Provide the tools to our members to enable them to succeed as business owners and to build the vibrancy of our village. You have a large committee – how will you get the best out of everyone? The team is very new with only a few members of the previous executive involved. Committee’s like communities depend on diversities of talent not a singular concept of ability so with that in mind I am excited to have a diverse group of people who are equally passionate about building the association and the village. It’s important to me that we use each individual’s passion and talent where it’s needed, there is a lot to do and we need all hands on deck.
Each business has been affected differently and the community as a whole was severely knocked by the water crisis. We cannot and should not down play the serious nature of the crisis on our businesses, our brand or our community. We have been working with council to ensure that our businesses are treated fairly throughout the recovery fund processes which they are running and Lee Neville from HDC has been fantastic to deal with to ensure businesses have the information and tools required to apply if appropriate to the HDC fund. The response from the wider business community was amazing to be part of and the sense of community which is grown is something positive that came out of the crisis. We can build on that sense of community. The only way now, is forward. What we do need to remember is that the crisis was a major issue, but we must rise with the occasion, not to it. The crisis was a new situation so we must think in new ways and act in new ways to bounce back. I believe that we are already achieving this. You are filming a fundraising walk from NP to Havelock – why? This is another hat I wear and an event I am very proud to be part of in memory of my great mate, Sam Gibson. The fundraiser is being organised by Neil from Peak Fitness and Health and Sam's cousin and best mate Hamish McBeth along with help from Sam's family and friends I’m really proud that he is continuing Sam’s vision and to be working alongside him to do so.
they will cover as it is about continuing the work that Sam had started and helping "those with disabilities to live out their dreams and live full lives". You can follow the journey via online at www. samuelgibson.co.nz Give me three words that describe Havelock North Community Vibrant Unique
What are some opportunities that will grow businesses and the vibrancy of the village? As noted above we are working on a number of initiatives to continue to build on the platform which each previous executive and president has achieved. It’s an exciting time in the village. Not only is Havelock North experiencing high national and international tourism but we are also becoming a strong commercial hub with exporting and distribution companies on Cooper Street and a number of large commercial enterprises moving into the new Village Exchange complex. The association has evolved significantly over the past few years, we are looked at as a model which other associations wish to replicate but I want to push us even further and create an association which delivers value through workshops and business promotions to our members, which delivers events that bring people into the village and a community people are proud to call home.
Neil, ultra marathon runner Lisa Tamati and Haisley O'Leary will run as a tag team 330km from Hawera to Havelock in memory of Sam and to launch his trust. The goal is greater than the 330km
recruitment intelligence 11 Donnelly Street, Havelock North, Hawke’s Bay. TEL. 06 877 6637
redconsultinggroup.co.nz
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BUSINESS PROFILE
Monique Buurmans, driver and PA, is on hand to collect Debbie Knight of World Travellers from the airport.
Giving a mobile PA service to business travellers Recognising a gap in the market, developing a business plan and service to meet the need, and now executing it successfully, is exciting stuff for Monique Buurmans, a Havelock North businesswoman who is no stranger to business start-ups. “It’s what keeps me humming. I guess I’ve got an entrepreneurial streak,” says the owner of Monique Driving You, who recently added a dedicated business driving and personal assistant service to her existing driving operation, and is taking bookings at a “very respectable rate”. Launched in August with a luxury MercedesBenz C300 dedicated for business travellers, the service already has steady demand, particularly with business people coming to the region. “Now that we have more frequent, and more affordable flights from Auckland, there’s been a definite increase in demand,” Monique says. Operating on a booked appointment basis, including weekends, as opposed to a corporate cab casual booking, Monique Driving You business drivers guarantee they are there at the time booked and are available to assist with any of the details to make doing business successful.
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“We can make accommodation and meeting room bookings, arrange catering or restaurant bookings, organise photocopying or even thank you gifts,” says Monique. “We’ve also been known to have a coffee and newspaper ready to meet people off the plane.” Ensuring that their charges don’t miss their flights, Monique has no qualms about doing what any good PA does. “I’ve had to interrupt a meeting and point out that unless I should rebook another flight, we needed to leave right then and there to get to the airport. We got there in time and there’s been repeat bookings since so our work was appreciated.” Local businesses are using the service for their out of town visitors and VIPs, freeing up their own staff from trips to the airport, but also providing a degree of independence that appears to be valued. “There’s a real advantage in not having to spend time booking and then returning a rental car, plus our drivers know the region well so there’s no time wasted getting lost.” A feature of the unique service is free WiFi in the car so people can work while they travel, and payment can be by credit card or invoiced back to the business. The service is also available to collect guests for business appointments or dining engagements. Monique Driving You was set up three years ago to provide a driving service throughout
“We can make accommodation and meeting room bookings, arrange catering or restaurant bookings, organise photocopying or even thank you gifts. We’ve also been known to have a coffee and newspaper ready to meet people off the plane.” – Monique Buurmans
Hawke’s Bay predominantly for the elderly, children, and those needing specialist mobility transport. In addition to introducing the business service, Monique has expanded a touring service around and, if need be, into and out of the region. “Sometimes people don’t want to fly or have more time and want to see a bit of the country side if they’re international visitors. We’re flexible to make things work for them.” MDY drivers understand the need for confidentiality and are all police checked, first aid trained, and comply with the passenger service safety standards controlled by the New Zealand Transport Agency. www.drivingyou.co.nz
Over 490 guests enjoyed a fantastic evening at the Hawke's Bay A&P Bayleys Wine Awards held at the Waikoko Gardens in Hastings.
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Kate Lester and Paul Greaney have launched online culinary service www.onyourplate.co.nz
Serving up success
one plate at a time WRITER: Amy Shanks
On Your Plate is answering the forecasting $135 million-plus revenue for call of busy home cooks – one 2017. mouth-watering meal at a time. Make no mistake, On Your Plate is no In an age where ‘click to buy’ rules, the concept of having groceries delivered to your doorstep is not unusual. What makes Hawke’s Bay business start-up On Your Plate unique is the combined force of catering guru Kate Lester and The Village Butcher Paul Greaney. Well-known in Hawke’s Bay hospitality circles, the pair bonded over a love of local ingredients and simple food philosophy. Enter On Your Plate, a service taking culinary convenience to new heights. Fresh, local produce and quality meat is delivered to your door weekly, complete with a nightly meal plan and all the extras needed to create every dish. “We are seeing that more people just have too much on their plates dealing with day-today life, hence the name,” says Paul. It’s Hawke’s Bay’s entrepreneurial answer to My Food Bag, a hugely successful model fronted by celebrity chef Nadia Lim. The Auckland-based business launched in 2012 and has seen phenomenal growth, 10
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copycat or cookie cutter and has been quick to put its own stamp on the concept of meals made easy. The main point of difference is that all produce and ingredients are sourced in Hawke’s Bay. "Why would you buy veges that have travelled hundreds of kilometres, when you can pick them fresh from the farm next door?” What started as a “soft launch” in September soon became a reality check for Paul and Kate with 60 orders flooding in over the first five days – substantially more than the 20odd they were expecting. One month into the project, they are preparing, packing and delivering almost 100 food parcels a week. Saturdays are spent sorting produce in a little room tucked behind Chalk and Cheese café, a space they had to rent after outgrowing their original premises in a fortnight. There's no fancy machinery or elaborate production lines here, just hand-stamped paper bags packed one at a time.
Kate and Paul quickly realised delivering a growing number of parcels between Dannevirke and Bayview would require an extra pair of hands and put out feelers for a new staff member. "Our family and friends have been wonderful but we are going to need help in order to grow and develop On Your Plate, we don't want to be turning people away," says Paul. "Where we live and what we do here in Hawke's Bay is so good, we saw a gap in the market to bring local food to busy people.” – Paul Greaney
Kate and Paul can’t afford to price themselves out of the market but need costing to reflect the personal service they provide. "We think it's fair and reasonable, given if you were to buy everything retail, you'd be spending a minimum of $20 extra." For the home cook it provides a stressfree dinner solution; for Kate and Paul, it provides a chance to boost business during typically quiet winter months.
PRO
Feature
“It gets really slow for us at that time of year so we put our heads together and came up with a solution,” says Kate. “We knew we had to get On Your Plate up and running before summer when the butchery gets busy for Christmas and I start catering weddings." Produce is sourced from various Hawke's Bay suppliers, keen home gardeners and even roadside stalls. They are always looking for new growers and would love to hear from anyone who would like to become a supplier. Paul selects and supplies meat from his own business The Village Butcher, while Kate injects inspiration with recipes from her back catalogue along with new creations. “When you order from us, it's like someone has gone to the butcher and the greengrocer and delivered it to your door, with mum's cookbook to boot,” says Kate. Recipes are tried and tested favourites that let quality ingredients shine – something she believes is key to their early success. “I’m not a complicated cook, I'm always looking to work with what's in season. You don't have to be a MasterChef to make and enjoy a meal with family and friends. “People always comment on the flavours of my food but you don't have any of that without good ingredients." Some of the star products to appear in On Your Plate so far include Orcona chillis, Origin Earth cheeses and Telegraph Hill olive oil. Kate celebrates Hawke’s Bay with every mouthful and sees huge scope to expand the business in future. "It’s pretty much endless; we could do a breakfast box, dessert boxes, get local wineries to come up with pairings for our dishes. We are really keen to explore some of those options for the future.” For more information on how to order and/or become a supplier visit: www.onyourplate.co.nz Paul Greaney
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years
Celebrat ing a Hawke's Bay Icon WRITER: Catherine Wedd
When you think ice cream and you think Hawke’s Bay, there is no going past the iconic Rush Munro’s Ice Cream Parlour! Fond memories have been shared throughout its 90-year history as New Zealand’s oldest ice cream. As the Hawke’s Bay company celebrates 90 years in business, The Profit looks back on the secrets to its success. The story began in 1926, when English-born founder Frederick Charles Rush Munro set up shop with his wife Catherine in Hastings with £10 in his pocket. They sold sweets, chocolates and ice cream for over 20 years. The business has always been privately owned and since had three other owners, John Caulton and then Alastair McSporman, before local grower and exporter John Bostock bought Rush Munro’s in 2001. Over the past decade John Bostock has helped successfully spread Rush Munro’s ice cream throughout the country, taking it into supermarkets, cafés, restaurants and ice cream parlours, and has played a big role in growing the iconic Rush Munro's brand.
“We ensure that we use local suppliers where we can. The heritage is important to the Rush Munro’s brand and we are proud to use only real fruit and natural ingredients,” says John. Rush Munro’s factory manager Graham Copp has been making the Rush Munro’s ice cream for the past 13 years and says the recipes are fundamentally the same, just tweaked slightly. “Getting the ice cream recipes right is complicated. Other ice cream companies couldn’t make our ice cream and we couldn’t make theirs; all ice cream is unique in taste and flavour.” Graham says he is proud to have kept Rush Munro’s natural because many of the other ice creams on the market have a lot of “E” number ingredients, which include colourings, preservatives and sodium nitrate. “There are just six ingredients in Rush Munro’s ice cream – milk, cream, sugar, egg yolk, gelatin and whatever the natural flavour is, whether it be strawberries, chocolate or feijoa,” says Graham.
“We are very proud of Rush Munro’s history. The ice cream represents Hawke’s Bay with many of the ingredients being fresh produce from local suppliers. It is 100 percent natural and we still use the same recipes that were crafted by Frederick Rush Munro 90 years ago.”
“WE ENSURE THAT WE USE LOCAL SUPPLIERS WHERE WE CAN. THE HERITAGE IS IMPORTANT TO THE RUSH MUNRO’S BRAND AND WE ARE PROUD TO ONLY USE REAL FRUIT AND NATURAL INGREDIENTS.” – JOHN BOSTOCK
The strawberries come from The Strawberry Patch, the chocolate is made by The Silky Oak Chocolate Company, the coffee is Bay Espresso and the manuka honey comes from Arataki Honey.
But being 100 percent natural comes at a cost and keeping the price down is one of the biggest challenges facing the business.
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Graham Copp
“It costs a lot to make natural ice cream. Our natural ingredients are more expensive than artificial flavouring and when we are competing against 20 other ice cream brands in New Zealand, it is tough.” The other unique point of difference for Rush Munro’s is that the ice cream is still batch churned and has been for the past 90 years. “The batch churning means we can only make one batch at a time so it takes longer. We also do everything by hand without a lot of machinery. We physically pour all the ingredients into the ice cream, and we peel the bananas, pulp the fruit and make our own syrups. There is certainly a lot of love that goes into Rush Munro’s,” says Graham.
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The Rush Munro's shop today
“Rush Munro’s ice cream is also low density at 60–100 percent, unlike other ice creams that have a lot more air, so this also makes it more expensive.” When it comes to flavour, Graham says there are currently 27 Rush Munro’s flavours but it’s the trusty traditionals that are the big sellers. “Vanilla Bean is the most popular, then Maple and Walnut, Passionfruit, Hokey Pokey and Feijoa. “There is always a balance between trying to stay modern and edgy by creating new flavours but when it comes to business, we find that the traditional flavours are the ones that sell best.” As part of the 90-year celebrations, Rush Munro’s is running a competition to create
a 90-Year Birthday Flavour. A party is planned for November 19th where the limited edition new flavour will be on sale. Rush Munro’s general manager Tom O’Sullivan says there are a lot of fun activities and promotions planned to celebrate 90 years of Rush Munro’s ice cream. “Most people who were raised and live in Hawke’s Bay have fond memories of the iconic Rush Munro’s Ice Cream Parlour with the fish ponds and gardens. We welcome people to share their stories and get excited about a product that represents everything Hawke’s Bay. “This 90-year celebration is an exciting time in both Rush Munro’s history and the future as we continue to lead New Zealand in the highly competitive ice cream market. “ John Bostock
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WE KNOW IT’S NOT ALWAYS A LOCAL BUYER THAT’S BEST. Competition between offshore and local buyer is the key for many properties. For over 40 years Bayleys has been travelling offshore to personally showcase properties for our clients. Our experience in marketing to foreign investors as well as the local market creates a competitive environment, which makes maximising the sale price possible. Contact us today to find out how Bayleys make more possible. NAPIER HAVELOCK NORTH WAIPUKURAU
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Coast to Coast Ltd, Bayleys, Licensed under the REAA 2008
A WORLD OF POSSIBILITIES NOVEMBER - JANUARY 2017
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A Legend passes on Writer: Damon Harvey He was a great builder, a great leader, a great husband, a great father to two daughters and the greatest supporter of the Hurricanes. It will also have given him great joy that after traveling from his home in Esk Valley, Napier to all the Hurricanes home games at Westpac Stadium since 1996 that his beloved team finally won the Super Rugby title this year. Ashley will be regarded as a giant within the construction industry. A builder, project manager, general manager and industry representative that always gave his time to others but at the same time ensured his own construction projects were always completed on time, to budget and to perfection. His adage was that “if you put in 110 percent, you’ll be certain to achieve 100 percent”. When you think about men that have shaped the Bay, the name Ashley Hartley probably doesn’t spring to mind, but he did just that – shape the bay. During his 50-year building career Ashley led the construction of prominent buildings such as Whakatu Freezing Works, Takapau Meat Plant, Hawke’s Bay Prison, Te Taiwhenua O Heretaunga (previously DB Heretaunga), UFS Pharmacy Napier, EIT Nursing Block, BNZ Hastings, Sacred Heart Church Hastings, HB Regional Hospital, Regional Sports Park Grandstand, Farmers Hastings and numerous others. For Ashley, construction wasn’t hard-labour, but more a labour of love. He was raised in Dannevirke and was always destined to be a builder, although rugby and music came close to unraveling those plans. The Hartley family were Country & Western musicians, touring A&P Shows and broadcasting on regional radio stations. One of Ashley’s first personal building projects was to shape his own guitar, with the neck built from a macrocarpa fence batten. At 18 years old he moved north to take up a building apprenticeship with John (JC) Mackersey in Hastings, who quickly noticed his talent, hard work ethic and willingness to learn. By the age of 21 years John gave him the responsibility of project managing the $15 million new freezing complex at Whakatu. With 60-80 staff as well as 100 sub-contractors on site, he embarked on a 3-year project. John Caccioppoli started at Mackersey’s five years earlier than Ashley. They struck up a competitive but strong relationship as they were both eager to deliver successful projects for John. “John was a perfectionist and a hard worker, and that rubbed off on both of us. “We soon worked out our place and John Mackersey showed his confidence in Ashley by giving him the project lead role at Whakatu at a very young age. “Ashley was meticulous and a workaholic but in a way that inspired others.” In 1989 Mackersey’s was part of a joint venture to build the $21m Mangaroa Prison. For much of the project John and Ashley worked seven days a week. When the job was completed in 1991, Ashley was determined to hand it over in perfect condition. Ashley Hartley
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“I finished checking over the site at about 2pm on a Sunday and I went to Ashley’s office and said it was ready for handover. Ashley suggested that together we do one more check of the site. As we walked around the site out of the corner of his eye he noticed a mark on a window pane, he quickly pulled out his handkerchief and cleaned it,” John said. In 1991 Ashley won two National Building Manager of the Year awards – the first for a project over $5 million (Mangaroa Prison) as well as the under $5m award for a job at Watties. Soon after the wins Ashley decided to take a break from the local building scene and joined Palmerston North based firm McMillan & Lockwood, commuting between Napier and the firm’s Wellington branch for the next five years. "Every day he would provide advice to builders and quantity surveyors around New Zealand, he was a mentor to many." – Darren Diack During this time a new construction firm, Gemco Construction, was getting up and running in Hawke’s Bay by a former Mackersey colleague John Sarten, businessman Terry Pratley and Darren Diack. When Darren started Gemco in 2003, he knew the key to the businesses success would be to recruit Ashley. The two men had crossed paths regularly when Darren worked at building suppliers Carter Holt and where Ashley’s attention to detail caught Darren out in costing up some building materials. “Ashley was building the Hawke’s Bay Regional Hospital at the time and asked us to price a couple of thousand bolts and nuts. I gave him the price, which he agreed to and then told me that I hadn’t allowed for washers, therefore they should be supplied as part of the deal. We ended up going halves in them.” As a new business, Darren knew they needed an all-rounder and someone that would ensure projects didn’t run at a financial loss. “He could price jobs accurately; got on well with everyone on site; was an accomplished builder; had strong morals and values and at the end of every day enjoyed a beer with us.” “He was always in control and would never let a client down and if something did go wrong he would make sure it was put right. “He was accurate right down to knowing how many toilet rolls, coffee, tea, milk and sugar would be used during a project.” Darren says the building industry is indebted to Ashley.
Media coverage during the Takapau plant construction.
“Every day he would provide advice to builders and quantity surveyors around New Zealand, he was a mentor to so many.” Most weeks Ashley dedicated 60 - 70 hours to his job. If he wasn’t costing up jobs or amending drawing plans at the office he would be doing site inspections, negotiating tenders or in his home office preparing for the next day. It was this dedication and drive for perfection, which on many occasions wife Denise said to him “you may as well take your sleeping bag to work!” John Caccioppoli recalled talking to Denise Hartley about Ashley’s work ethic, which extended to household chores. “Denise and I compared notes about Ashley once. She said he would arrive home and go straight to his office and continue to work. She would call him for dinner and before sitting down to eat he would go an inspect the already cleaned pots and pans and if they weren’t up to his expectations he would clean them again.” Anthony Leighs of Christchurch and Auckland based firm Leighs Construction first met Ashley about a decade ago when he was first appointed to the board of Registered Master Builders Federation. Ashley was a veteran of many building industry association groups and was the first to put out his hand and welcome Anthony into the fold. “He was one of the more approachable and open-minded members and he welcomed me as a young person into Master Builders. We became good friends and I gleaned a lot from my time with Ashley. “Our business was involved in some interesting projects including one in Antarctica and this fascinated Ashley, so we hit it off pretty quickly.
“There was no question that Ashley was meticulous. We could always rely on him to review documentation in incredible detail, I have no idea how he found the time. But he did, and he always made a hugely valuable contribution at a high level, while also correcting the grammar and spelling mistakes!” Ashley was made a Life Member of Master Builders in 2008, an organisation he became actively involved with in the early 1980s and remained hugely passionate about. He progressed from regional councillor roles through to vice president in 2005 and President in 2006-2007. “As president he was probably the first in that era to dedicate a lot of time to the role. Over his two years he probably spent about 200 days on the road each year meeting Master Builder branch members, while at the same time continuing his day job as general manager of Gemco. “It blew me away, as many people in general manager roles can quickly lose sight of the detail but that was his passion. “He was one of those guys that has always been there and given so much. So many people have and continued to rely on him for advice,” Anthony said. During his career Ashley held numerous industry roles with BCITO, BRANZ, NZ Institute of Quantity Surveyors and NZ Institute of Building. He was the author of the Guide to Building Administration Best Practice Manual. This manual has become an instrumental part of the Registered Master Builders Education platform. Ashley Hartley passed away on September 3 while on holiday in the United Kingdom with his wife Denise.
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Commercial property on a hot run in the Bay The housing market may be hogging all the headlines in Hawke’s Bay but Bayleys Havelock North manager Daniel Moffitt says the commercial and industrial sector deserves its time in the sun too. “Our commercial team is having considerable success both in strong sales but also leasing,” Mr Moffitt said. “Hastings has been leading the charge but there has been a noticeable uplift in Napier due the strong performance of the local economy. It has been riding a wave for the last 12-18 months and confidence in the business community is swelling.” 16
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Although businesses are naturally cautious in their outlook, employment intentions are up and this is assisting leasing activity.
Activity in the industrial real estate has been solid, with strong interest in food facilities within the booming pip fruit sector.
Economic growth for the region will be near the long-term average, which will keep the market stable at current growth rates.
The much delayed 40ha Irongate development on the outskirts of Hastings is now underway, Pick Me fruit company is to get a new packing facility and Bayleys has been involved in securing more industrial land for another Hawke’s Bay developer looking to build more cool stores for the region’s growing demand.
The region’s councils recently launched a collective economic strategy (REDS) to accelerate job growth. The joint initiative aims to create 5000 new jobs in five years and raise the region into the top quartile for regional economic growth. Daniel says sales and leasing activity in Hastings had been particularly strong, citing the sale of the Warehouse in The Park retail complex (one of the biggest sales in the region this year) and the lease of the 4,600m² former Warehouse site on the edge of the CBD to Bunnings. Bayleys has also sold a 4,336m² property at Heretaunga Street that was occupied by Rebel Sport and Briscoes, both of which have signed new leases at The Park through Bayleys. “This is good news, and will significantly boost retail activity on the edge of the CBD,” Daniel says. He adds that Bayleys completed more than $1 million worth of leasing in Hastings during August and September.
“The pipfruit sector is growing rapidly and there is strong demand for packing and cool store space. With this being at a premium, we are seeing investment in new facilities,” Daniel said. The wine sector is also pretty fluid, with some key wineries up for sale, including Yealands Estate Wines’ successful boutique winery Crossroads Winery. “We’ve got wide viticulture experience coupled with being a major sponsor of the HB Wine Awards. It’s therefore great when we get high-profile listings such as Crossroads,” Daniel says. Office market conditions across Hawke’s Bay picked up in 2016, with leasing activity outpacing the previous two years.
The hot run in commercial leasing and sales includes the ongoing addition of new retail outlets at The Park large format retail complex, back leasing the current Rebel Sport and Briscoes site,along with the largest commercial property sale in 2016 of The Warehouse. – Daniel Moffitt
“Hastings has been leading the charge but there has also been a noticeable uplift in Napier thanks to the performance of the local economy which has been riding a wave for the last 12-18 months, therefore there’s a lot of business confidence.” – Daniel Moffitt
Jack Lee (left) and Jake Smith (middle) have joined the team as part of the Bayleys Scholarship Programme while Rodger Howie (right) joins as a business broker.
Business HQ in Hastings is now fully tenanted with some of the region’s most prominent businesses, including Strata Group, IT provider Vo2, Markhams and Logan Stone.
in 2 Auckland Road, Greenmeadows and Waverley House also in Greenmeadows.
Daniel says the biggest issue was the demand for quality office space, which has left challenging conditions for owners of lower quality premises. Because of this, landlords will struggle to lift rents from their current rates.
The retail sector across Hawke’s Bay has performed well and retailers remain confident about their future.
Investors are looking for prime office spaces with yields of between 6 and 7 percent, and will only make exceptions for the right spot and a strong covenant. In Napier, recent sales include Scotsdale Steel in Onekawa, Flex Fitness 24/7 Gym
Office stock with short lease terms or requiring high levels of capital expenditure is trading above 8 percent.
The 9.4 percent annual increase in retail spending volumes and 5.6 percent increase in retail spending values, according to Paymark, highlight the strength of the sector. Retail sales activity is buoyant, but not all retailers are benefiting in the high-volume, low-margin operating environment. This is consistent with market leasing activity, with variation in performance across sectors
as well as locations. Both Hastings and Napier councils are also looking to invigorate their CBDs. This will possibly result in some contraction in size of the CBD and more alternative building use, including accommodation. To capitalise on the strong performance of the commercial and industrial property market in the region, Bayleys is looking to the future and developing talent. Jake Smith and Jack Lee join as agents via the Bayleys Scholarship Programme and Rodger Howie joins as a business broker. “They’ve got plenty of energy and motivation to succeed and we look forward to them prospering and creating a career at Bayleys,” Daniel says. NOVEMBER - JANUARY 2017
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Collaborator Championing Economic Growth
Business Hawke's Bay CEO Susan White in the Hawke's Bay Business Hub.
Three years down the track what has the region’s business-led economic development agency achieved? Ask Susan White, Business Hawke’s Bay CEO and you’ll need a reasonable amount of time to hear her answer. The short answer is “a significant impact “. “With tight resources, BHB is all about focus; whatever we do, we need to be credible and do it well,” Susan says. “We make judgement calls all the time about what we can deliver, where our energies will get best results.” Established in 2011, under the Hawke’s Bay Chamber of Commerce, BHB separated and became an incorporated society in July 2013, with Susan appointed as its CEO. The BHB board, made up of leaders of their own businesses with a vested interest in seeing this region grow, is a voluntary one with an expectation of giving active support to Susan and her small team.
“As a result, we bring a business perspective to what and how we deliver,” says Susan. BHB receives sponsorship support from various local businesses and is also funded through local government. Specific projects are funded through contracts with government agencies, sometimes with co-funding from business. While reporting to separate stakeholders can be time consuming, Susan believes having an independent EDA arms-length distance from any political agenda, is a positive benefit for the region. “It also means we can be agile, taking advantage of opportunities as they arise.” Set up as a collaborative model, BHB operates within a network of networks. Developing trusted relationships, leading initiatives, and demonstrating a willingness to participate in projects led by others, has been BHB’s modus operandi. So what’s been the focus for BHB to date?
The establishment of the Hawke’s Bay Business Hub, a co-location of 13 organisations based in the former Big Save store in Ahuriri, has been a massive effort that saw many of the BHB board actively involved. Our Story at www.hbbusinesshub.co.nz tells more. Celebrating its first anniversary in the middle of this year, Business Hub members pointed to a myriad of success stories where businesses had been helped to grow, new opportunities had been identified for economic development, and the accelerated access to information and advice of Business Hub colleagues was leading to deeper levels of collaboration beyond co-location. “We’re still each answerable to our own organisations but some of us are individually quite small so there’s real value in members being able to talk at the coffee machine or pull up a chair at the desk across the way. It’s just so much easier to develop relationships of trust and knowing who can do what to help.” The recent launch of the Matariki - Hawke’s Bay Regional Economic Development Strategy and Action Plan (REDS) was a milestone for BHB. When Susan joined BHB, refreshing the 2011 version was a KPI for BHB by Hawke’s Bay Regional Council. Advisors to the strategy development process included Alasdair Macleod, a former lead partner for economic development at Deloitte (a contact Susan met through her NZTE days) and Hamahona Ambler who was appointed by Te Kāhui Ohanga o Takitimu – a collective of Ngāti Kahungunu Iwi and HapŪ post treaty settlement groups committed to driving economic development in Hawke’s Bay. Project team and governance group members represented local and central government, Te Kāhui Ohanga o Takitimu, and business via BHB representatives and others. For BHB, the resource allocation to 18
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PARTNERSHIP IS NOT EASY AND TAKES TIME AND GOODWILL BY ALL PARTNERS BUT BHB BELIEVES THIS IS THE DIRECTION WE NEED TO HEAD. – SUSAN WHITE
productivity through High Performance Work Initiative and Better by Lean.
BHB Board – Jenni Giblin, Hamish Whyte, Chris Bain, Stuart McLauchlan, Allan Pollard, Mike Purchas, Doug Ducker, Michelle Turfrey, Chris Collins. Absent – Hamish White, Ken Sutherland, Robert Darroch.
REDS over the last two years reflects it as a key priority, and it will continue to be so during its delivery. Given Hawke’s Bay primary produce strengths, BHB has a dedicated food and beverage team member. A year-long marketled investigation into a whole new nutritional powders industry opportunity for Hawke’s Bay resulted in over 200 people attending a day-long conference. Presenters were from across the full spectrum, providing information from market drivers to livestock genetics to processing. Susan notes that they were able to demonstrate that goat and sheep dairy industry and processing is a global market opportunity and a good fit for the region. The key to establishing the value chain is to attract smart investment, she says. To this end, BHB has continued to liaise with potential investors interested in this region. Messaging and mentoring around the need to improve productivity and innovation is another priority. More than 30 businesses have undertaken customised training and mentoring to improve their
Acknowledging that a fair degree of local business success rests on the need for travel, BHB has been keen to see improved air travel business connectivity. It was part of collaborative lobbying to attract Jetstar to service Hawke’s Bay, and earlier this year established the Hawke’s Bay Landing Pad project to identify and implement ways to sustain competitiveness for all the region’s air carriers. Check out www.hblp.co.nz And as a core function, the BHB team is constantly connecting business people, both local and from outside of the region; putting them in touch with others to provide advice and expertise. What’s next?
A marketing and operations manager position will have been filled by the time of going to print, allowing Susan to focus more on BHB’s strategy, leadership, and the delivery of REDS actions. As a core participant in the region’s economic development framework, BHB will continue to work in partnership with business, TKO, local and central government to empower delivery of economic growth. The BHB board has been strengthened with three additional appointees augmenting skills and sector expertise and bringing more hands on to the ‘doing’. “Partnership is not easy and takes time and goodwill by all partners but BHB believes this is the direction we need to head. It’ll be a challenge but working together to co-design our growth is a huge opportunity for Hawke’s Bay.”
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CENTRAL
Empowering Business in the Central Region
36 Bridge Street, Ahuriri, Napier
Phone 06 650 1711
www.hbbusinesshub.co.nz NOVEMBER - JANUARY 2017
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Horticultural Pioneer John Paynter receives top honours WRITER: Anna Lorck Horticultural pioneer John Paynter, whose lifetime ambition is seeing Hastings Heretaunga Plains planted in fruit trees, is this year’s recipient of the Pipfruit New Zealand Award for Outstanding Contribution to the Pipfruit Industry.
John Paynter
John is the first grower in New Zealand to receive the award since it was established in 2013. He was presented with the award at the Horticultural Conference and Awards dinner held in Nelson – home to where his family first started growing apples in 1862. Accepting the award, John said all he has ever wanted to do is plant fruit trees and he will keep doing so. At 75, John, who has no plans to slow down, says he is as excited today about the industry as he was when he planted his first tree back in 1965. “No other industry puts more back into the local economy in Hawke’s Bay than horticulture – in terms of the thousands of jobs it has created, revenue returns, ongoing investment, along with science, innovation and education opportunities. “We are entering a great time in horticulture and our future is going to be even brighter as New Zealand leads the international market with premium quality fruit and new varieties.
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“No other industry puts more back into the local economy of Hawke’s Bay than horticulture – in terms of the thousands of jobs it has created, revenue returns, ongoing investment, along with science, innovation and education opportunities. – John Paynter
“I’ve lived the good times and the bad, experienced the highs of record returns and seen growers lose their livelihoods and Mother Nature destroy our crops, but beyond doubt New Zealand is the best place to grow apples and the world knows it.” John said while he had lived all his life in Hastings to be honoured in Nelson had special personal significance. “It was in Nelson that our family first started planting apples in 1862, it was Nelson growers, not Hawke’s Bay, who first backed me when I stood for the New Zealand Apple and Pear Marketing Board, and
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40 years ago it was in Nelson at this very same venue that we announced a record payout that saved our industry with a miraculous recovery.” Pipfruit New Zealand’s chief executive Alan Pollard says no one comes close to John’s achievements in planting 1400ha of fruit trees across Hastings’ Heretaunga plains. Along with John advising Brierley Investments to invest in horticulture which saw it acquire and plant 700ha which is now part of Mr Apple, his Johnny Appleseed Group has also planted around 700ha. John is the fourth of five generations of his family who been at the centre of the New Zealand pipfruit industry, from the 1860s, starting in Nelson and moving to Hawke’s Bay in the early 1900s. Today, John and his sons Paul and Jonathan’s business is still based at the original home block in St Georges Rd, Hastings where the packhouse and coolstores along with the international office work out of the homestead where he grew up. The company employs over 500 people at the peak of the season and 350 throughout the year. With his business partner Peter Andersen, he launched the Yummy brand in 1973, initially with stonefruit and from the deregulation of the domestic apple market in 1994, the company moved into apples. The Yummy brand leads the New Zealand domestic market and supplies apples and stonefruit through supermarkets and into schools and households across the country A key strategy from the start was to deliver superior eating quality of the same cosmetic standard as export fruit and a greater range of varieties to the consumer. Yummy was the first to individually label fruit in 1975. John played a critical role in establishing and was chairman of FIPIA (Fruit Industry Plant Improvement Agency) and was the original architect of the global variety development programme for ENZA. He was elected as a Director of the New Zealand Apple and Pear Marketing Board in 1976 and served three-year terms until 1985. He stood down for three years and then served a further nine years through to 1997. He has also served on the Boards of Napier Port, NZ Post, Plant and Food Research, New Zealand Kiwifruit Authority, a Kiwifruit Marketing Board and founding chairman of Zespri. Always interested in innovation to improve production and fruit quality, a notable milestone was his introduction
“John’s vision, leadership and thirst for innovation has made one of the greatest impacts in shaping Hastings’ landscape and the economy of Hawke’s Bay along with the ongoing success of New Zealand’s horticultural industry. “John has always been at the cutting edge of developing new varieties and marketing strategy and orchard innovation. He was the first grower to individually brand fruit in 1975, introduce wind machines to New Zealand and limestone tracks in orchards,” says Alan.
C or p orate C hr istmas G ifts
of wind machines. Having seen them in working in the United States and he wanted to introduce them to New Zealand. However, the experts at the Department of Scientific and Industrial Research thought otherwise. He applied for a licence to introduce and trial a machine but was turned down twice. He could regularly be found during frosts, up the tallest ladder he owned, taking temperature readings. Convinced wind machines would work and he purchased and imported one from Orchard Rite in 1979 after losing his Granny Smith crop in each of the two previous years. Practical experience proved the point and now these wind machines are widespread across the region. John was instrumental in FIPIA (Fruit Industry Plant Improvement Agency) under his guidance in 1981. The company was charged with importation, testing and variety management of offshore and onshore material on behalf of all growers. FIPIA also introduced the budwood selection programme, which worked successfully for many years. FIPIA was ultimately absorbed into ENZATree and they cut the stonefruit components of the programme. In such a long term venture major changes in strategy or structure can be very disruptive and so it proved to be. John was the original architect of the global variety development programme for ENZA, originally with Pacific Rose and then refined with the inception of Jazz. He’d retired before he saw it come to fruition but he’s certainly pleased to see ENZA pursuing the concept now. His vision was to facilitate global plantings and year-round supply so as to establish varieties and brands of genuine scale and value – all the while allowing NZ to lead and other suppliers to be complementary. Even today, this is consistent with Pipfruit NZ’s objectives within Prevar Ltd.
Head Office:
15 Cadbury Road, Onekawa, Napier
Auckland Sales office:
118 Hugo Johnston Drive, Penrose, Auckland
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BUSINESS PROFILE
A passion for enabling business in the Bay Sam Ogle and Mike Price
Isn't it about time we threw out our preconceptions about accountants being boring bean counters who spend their days bent over a ledger with a blunt pencil? EnableBusiness isn’t such a firm; it takes a modern approach to bringing accounting and advisory services to businesses. Founded in the Hawke's Bay and Wellington over eight years ago it has expanded to support clients across New Zealand. The team is modern, young and highly motivated to take customers beyond basic compliance and into fresh new ways to think about business. Two great examples living working and breathing the business vibe in the Bay, are Sam Ogle and Mike Price, both could be cut from the same cloth, both accountants, both have a background working for the big four accounting firms, both married, and both of them have two children. Most importantly though they both have a passion for making businesses succeed, Sam and Mike have known each other for some years, and that passion has brought them back together to be the team that consistently delivers business value for their clients. Sam sums this up quite well with a view of commerce being fair, firm but friendly. "Even though what we do is commerce, it's personal, New Zealand is predominantly an SME market, so fair is what goes in the contract, the firm is making sure people stick to the agreement, friendly is to do it all with a smile as you want to get the next contract too.� Sam is so passionate about helping businesses succeed he's recently made a financial investment into enableBusiness and has some great examples of where his approach and the approach of enableBusiness has changed 22
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businesses for the better. We talked in detail about two companies in particular who were very different in term of markets they are in, but faced similar issues; one of the first clients Sam ever signed up was a builder, where the business partner decided to leave because the business wasn't going forward. By providing advisory services specifically focused on education around the financials, discipline and the commercial realities and necessary practices of the market, within a two-year period the business is flourishing and has progressed to becoming a profitable six-figure business. Now the owner is looking into succession planning options and seeing how they can take the business to the next level. The other great example we talked about is a client who was making small losses and had been for over a significant period and had been surviving through their use of an overdraft and lending, a scary thought. By bringing a new way of thinking and adding those financial and commercial disciplines and adding new technology (in this case Xero) to the business, the owner has not only fallen back in love with their business, now they are making a profit, and they have no overdraft. This example also brings up the use of technology and in particular the use of cloud-based software to help business see real time the financial data at the touch of a button. This technology has changed the face of accounting in the last ten years, and as a platinum partner for Xero, enableBusiness has pioneered that change. They realised early on that with software like Xero there was the ability to reduce compliance-related tasks and significantly increase transparency of the real time results for the business. This has then allowed enableBusiness to focus on
taking clients further with specialist help to develop their businesses and propel growth. This approach and thinking have resulted in enableBusiness becoming a Platinum partner of Xero and being awarded Partner of the Year for the last two years, just one of the accolades that show the great work they are doing to make kiwi business successful.
Sam lives by three fundamental values to bring clients success: Financial Discipline Planning the key focus areas Coaching and education
If this story resonates with you, why not give Sam, Mike or someone from the team at enableBusiness a call on 06 929 9172 and they can help take your business to the next level. www.enablebusiness.co.nz
FA R M I N G HOUSE 2 1 1 M A R K E T ST R E E T S O U T H , H A ST I N G S
AWARD-WINNING DESIGN
SAFETY-PROOF YOUR FUTURE
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Designed by renowned NZ architects Warren and Mahoney. The sustainable energy-efficient design has won local and national architectural awards. High-end interior finishes and feature artworks complement the interior common areas.
Flexible spaces ranging from 50m² - 1300m² with high quality existing fitouts available. Built to meet strict building code and earthquake safety standards, and with ample on-site car parking. Various tenant incentives on offer.
A major commercial hub providing international-grade office space for local and national companies from within the rural sector, but also from broader businesses including legal, finance, insurance, recruitment and investment.
WORLD CLASS DESIGN IN THE HEART OF HASTINGS. FARMING HOUSE SHOULD BE TOP OF THE LIST FOR ANY BUSINESS LOOKING TO RELOCATE OR UPGRADE THEIR OFFICE SPACE IN HAWKE’S BAY. VARIOUS OPTIONS AVAILABLE. DON’T MISS OUT, CONTACT US TODAY.
For more information visit farminghouse.co.nz or contact the exclusive agent: Danny Blair 021 826 496 danny.blair@colliers.com Tremain Commercial Limited, Colliers International, licensed under the REAA 2008 NOVEMBER - JANUARY 2017
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In August the ASB Bank Export Awards Hawke's Bay were held. The winners are all innovators that have built a global reputation for creating unique products. We profile the four category winners as well as the overall winner – David Trubridge.
LEADING LIGHT 2016 Hawke’s Bay Exporter of the Year and Most Sustainable in Export category winner, David Trubridge. WRITER & PHOTOGRAPHER: Clinton Llewellyn
Paris, Milan… Whakatu? His lighting designs hang in more than 50 countries, his installation ‘Icarus’ is part of the permanent collection of the largest museum of modern art in Europe, and earlier this year he recorded an important legal victory in his fight to stop knock-offs of his works being sold in Australia. But David Trubridge is looking forward to a time when we all have fewer possessions and treasure them for longer. 24
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Spending time with internationallyrenowned Whakatu-based lighting designer David Trubridge – the 2016 Hawke’s Bay Exporter of the Year – can be both sobering and illuminating. Take, for instance, the design of his latest lighting creation ‘Navicula’, due to be unveiled in Europe in early 2017. “It’s a diatom, a type of [photosynthesizing] plankton. One in every five breaths we take is made up of oxygen created by them, yet we are killing them off,” the 65-year-old says somberly as he examines the elongated, seed pod-looking structure hanging suspended above the floor of his Whakatu studio/factory. It’s this deeply held concern for the environment that pervades and permeates
most aspects of David’s life. It not only provides the inspiration for his designs but it’s one of the reasons why he designs. It also explains why he has a stringent waste minimisation policy in place at his base at Whakatu, pays more to manufacture his lights using more expensive plywood sourced from sustainably managed forests in China, and elects to export his creations in ready-to-assemble form in flat packs that reduce wasteful packaging. Given his preoccupation with the environment, it’s a little surprising when David reveals he gleaned more satisfaction from winning the supreme prize at the second annual Export NZ Hawke’s Bay Exporter of the Year awards than the Most Sustainable in Export category.
Photo: Clinton Llewellyn.
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might be beneath him. But David assures us he would have been in attendance if not for his son’s freediving feats. “Of course I would have been there. The Design Institute of New Zealand awards come around every year – they are happening up in Auckland in a few weeks’ time – and they always want me to go up. It’s not really my sort of thing; but the Hawke’s Bay export community is slightly more focused and I am happy to be a part of that,” he says. William’s world record and David’s recognition at the export awards followed on from another major success in April, when he reached an out-of-court settlement in Australia against eight companies – including two national retailers – that were selling fakes of his works. “So I knew we stacked up pretty well internationally on that front. I mean, there’s always more we could be doing and we could always be better but to win the overall award was a surprise." – David Trubridge
David Trubridge
“They came to us last year and asked us to enter and we thought, ‘well, why not?’ We didn’t win an award but they said at the time that if they had a sustainability award, we might have won because they were very impressed with what we were doing. “So I knew we stacked up pretty well internationally on that front. I mean, there’s always more we could be doing and we could always be better but to win the overall award was a surprise. I would have thought there would have been other companies in Hawke’s Bay who are doing pretty good things – and there are – so in a way it was more gratifying to win,” he says. However, David had to accept his exporting awards in absentia as early the next morning, son and multiple world record-
holding freediver William was getting ready to set a new world mark of 102 metres in the discipline of Constant Weight, No Fins. He and wife Linda were in Auckland to help inform TVNZ’s live coverage of William’s ultimately successful world record attempt at Dean’s Blue Hole in the Bahamas the next day, so the couple couldn’t attend the awards night in person. Given David was listed as one of the top 15 designers in the world by French magazine Express in 2008 and his lights hang in more than 50 countries around the globe – including the prestigious Pompidou Centre in Paris, the largest modern art museum in Europe where his Icarus installation is part of its permanent collection – you might think the Bay’s regional export awards
Not only were the knock-offs hurting the reputation he had worked hard to build over his 15 years as an international artist and designer, infringing on his intellectual property and jeopardizing the livelihoods of the approximate 20 design and production staff based at his facility at Whakatu, but David was equally as outraged by the wasteful amount of packaging the inferior products used. “But it wasn’t just about the packaging, it was everything about them. We go to a lot of effort to produce a product that we believe is as good as we can make it. And it means we make some sacrifices, it costs us more to do this sort of thing [be sustainable]. “Equally, we go to a lot of effort in getting the materials we use and pay more for more expensive plywood but because it’s got better credentials, we use it. But these ripoff products, they don’t give a s*#t about anything like that. All they want to do is get a cheap price and get bulk products out there and make lots of money. “And I’m not doing this to make money. I need to make money to make the business work but that’s not a prime goal. With them, it’s just grabbing everything they can and they’ll screw the environment as much
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as they can, too. So they are bad products in every respect.” Still, don’t call David an ‘eco-designer’. “I’m a bit wary of the label of ecodesigner,” he says. “I just prefer to say ‘good designer’. Design has to take into account environmental responsibility, otherwise it’s not good.” To that end, David makes his lights from plywood sourced from sustainably managed forests in China, which are grown to provide a moist, damp atmosphere in order for food – bamboo shoots – to be grown. “So the plywood is a secondary product,” he explains. He also spreads his pursuit of sustainability and waste minimization throughout the international design community via speaking engagements. On his North American ‘Hui’ Tour earlier this year – organised with help from some of the U.S. distributors that form part of his global network of 500 stockists, galleries, showrooms, retailers and distributors – David delivered his current speech ‘Beauty Matters’ to audiences that included designers and architects.
Trubridge’s world-renowned lighting designs hanging in his Whakatu studio/factory.
“I create objects I believe in and this is where my ‘Beauty Matters’ talks comes into it. We need to shift the emphasis of our consumerism away from volume and more stuff to better quality stuff,” he says.
“I draw a comparison to coffee cups. I drink from coffee cups made by ceramic artists, a couple made in South Africa as part of a scheme I was involved in and a few made locally. They’re beautiful and I love them and I’d be really sad if they broke. I keep them for as long as I can and because of that, I don’t drink my coffee from a plastic cup and then throw it away without even thinking about it. Yet millions of people on this planet do that every minute. “So I believe that we need to make products that people say, ‘they make me happy, they nourish me, they enrich my environment and I feel better for having them,’ so they don’t throw them away. “If we all had a beautiful coffee cup that we loved and kept and used then there wouldn’t be so much waste,” he says simply. Which is why David is proud his Whakatu facility can produce 10,000 of his lights every year, yet it is food packaging from the staff kitchen that accounts for the majority of waste going to landfill. Food scraps are composted, materials such as aluminium and cardboard are reused or recycled, and the company pays to have any plywood offcuts shipped to Pan Pac at Whirinaki where it is burned off and converted to electricity. All those thousands of lights created at his minimal waste-producing Whakatu facility have David’s business on track to turn over $3.5 million this year, with exports
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accounting for 86 percent of production, but he confesses to having no long-term growth plan. “To be honest, we’ve grown every year – even through the recession, though not massively – but it’s never been a goal. If we stayed this size, I’d be perfectly happy. I provide a good living for a whole bunch of people and myself, and this whole paradigm of growth is a failure. It can’t go on. Growth is exponential but the resources of the planet are finite. “We don’t need to grow. If you have zero growth it doesn’t mean you are going backwards, you’re just staying at a certain level. In real terms, you’re still increasing a little every year and it doesn’t imply the company won’t be doing this in 20, 30 years,” he states. David Trubridge Ltd has already been around for more than 20 years. He arrived in the region in the early 1990s after years of a “nomadic, nautical lifestyle” spent sailing the world on a yacht with Linda and sons William and Sam, a performance artist and sculptor in Wellington. Originally from the UK, the furniture maker, designer and artist spent six years in the Bay of Islands before heading to the Bay, where he was artist-in-residence at what became the Eastern Institute of Technology, before David Trubridge Ltd was formed in 1995. His furniture designs have now almost completely made way for his lighting fixtures, but it wasn’t until 2001 when Italian design house Cappellini bought the rights to his reclining furniture piece, ‘Body Raft 2000’, and put it into production that the business took off. Export market development funding early on from New Zealand Trade and Enterprise also enabled him to travel to Europe to exhibit. “There is no way I could have got to where I am today without it [the funding]. And it breaks my heart that the current National government canned all that,” David says, referring to the level of government financial assistance available to aspiring smallto-medium exporters.
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And as he readies to launch Navicula on the European market in early 2017, his advice to other businesses is to persevere with forging overseas distribution networks. “You’ve got to have that [unique] product, absolutely but equally, no matter how good your product, you’ve got to have that dogged persistence. You have to go to the shows, not just once but every year, to build up your presence and build that network. It’s just dogged persistence.” He’s proud to be a successful international design business from Whakatu and his other piece of advice is not to try and mimic overseas trends. “You don’t have to be based in Paris or Milan. One of the first lessons I learnt when I started [exhibiting] in Europe 15 years ago is that our difference is our value. You’ve got to have something different from here [Hawke’s Bay and New Zealand], which is part of our story, our culture, our place. And they’ll respond to that because they are looking for fresh stories. “You need to know what’s going on but don’t pander to fashion and trends because fashion will be gone tomorrow – and you along with it,” he says.
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McLaren Stainless, the Apple of the food industry
Rob McLaren
WRITER: Damon Harvey A Hawke’s Bay engineering business is revolutionising the meat industry in a similar way that Apple has done with computers and phones.
of flowed through to taking a sheet of steel, cutting it up, folding it and welding it together, and at the end of the day you have manufactured something from scratch.”
Apple has the iPad, iPhone and MacBook while McLaren Stainless has the iSERIES of meat processing equipment.
Rob always enjoyed the more manual subjects at school such as woodwork, metal work and technical drawing and he always knew he was going to end up in the engineering field.
Since 2011 McLaren Stainless has been exporting its iSHRINK, iCHILL, iDRY, iFRENCH and iVAC meat processing equipment, which is based on the simplicity of “plug and play”, says managing director Rob McLaren. What started as rough concept drawings on the back of an airline sick bag are now being exported globally to meat plants in North America, Australia and Europe as well as domestically within New Zealand. McLaren Stainless is tucked away in the back of the Omahu industrial area and this thirdgeneration family business employs around 50 staff. The foundations of McLaren Stainless have existed since 1919, firstly with Rob’s grandfather Reginald McLaren and then father Bruce McLaren. Rob and his wife Cushla became sole owners of McLaren Stainless in 2014. The McLaren Stainless team is a multidisciplinary one comprising fabricators, CNC machine operators, electricians, office staff and senior management. Rob believes in educating the young and currently employs eight apprentices across various trades. As you walk around the award-winning multimillion-dollar state-of-the-art facility in Manchester Street, it is significantly different to what the company first started out as – a general engineering ‘jobbing’ shop. It has evolved into a global innovator primarily due to Rob’s direction and his can-do attitude. Rob was destined to be an engineer; as a child he was consumed by LEGO and building mega structures. He attended Karamu High School where he was the first (and quite possibly the last) student to build a mountain bike frame for his fifth form end of year project. Around the age of 16 years, he started a sheet metal engineering apprenticeship with his father at Price McLaren. “As a boy I was always playing with LEGO and building things from nothing. It sort 28
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Apart from a short overseas experience working in a sheet metal firm in London, Rob has worked at Price McLaren/McLaren Stainless his entire career. He was fortunate to complete his apprenticeship under an incredibly talented man, Ernie Ronner. “Ernie was an exceptional tradesman. He had the least number of tools in his two wooden crates but he could create absolutely anything from those tools.” In 1995 Rob represented New Zealand in Lyon, France at the World Skills Championships for Sheet Metal Fabrication. While Rob did not place in this event, he gained a desire for travel and an eagerness to strive for perfection. The business already had strong relationships with Hawke’s Bay food processing businesses, such as Heinz Wattie’s, McCain Foods, Progressive Meats and local wineries, but the work was seasonal. “We were busy during the harvesting period between Labour Weekend and Easter and quiet for the rest of the year. We wanted to grow our business and flatten out the peaks and troughs.” Bruce bought his ambitious son a car and Rob hit the road. He got a few knockbacks but he started securing general engineering work with Advanced Foods (now Ovation) at its Waipukurau plant and Richmond Meats (now Silver Fern Farms) in both Takapau and Dannevirke. “Back in those days it was simple work such as making/servicing conveyors, benches and hand washers, nothing technically challenging just a good introduction into the sector.” New Zealand meat companies were relying on international suppliers to provide the more technologically advanced meat processing equipment. McLaren Stainless became the preferred installer in New Zealand for an international packaging
company that saw them installing machines all over the country. However, Rob believed that his team could design and build better machinery to what was currently being supplied. “We would drive or fly back from an installation job knowing that we could do better and this is when the iSHRINK was created.” Rob and his right-hand man Craig Davies, better known as Pudd, sat down and started to work out a new innovative hot water shrink tunnel which vacuum packs meat and shrinks the excess plastic so that it is taut around the cut of meat.
"WE WERE BUSY DURING THE HARVEST PERIOD BETWEEN LABOUR WEEKEND AND EASTER AND QUIET FOR THE REST OF THE YEAR." – Rob McLaren “Pudd is an exceptionally clever, talented man and a left-field thinker,” says Rob. Together they got underway and started making a prototype, installing two machines in Fielding and Napier. Unfortunately, all did not go according to plan but they were determined to find perfection. “We chose to stand behind our work, support it and make it succeed.” At the time they did not fully realise the uniqueness of their design. Both meat plants needed a hot water shrink tunnel system with no flue attached to take excess steam from the machine. It was this innovation that has gained McLaren Stainless access to a global market. In May 2010 Rob and Pudd packed their bags and headed to the meat industry’s largest expo, IFFA, held every three years in Frankfurt, Germany. As they wandered around and looked at their potential competitors, they knew they were onto a winner with their flueless shrink machine. Another key feature was their simplified ‘plug and play’ set-up, which meant installation was quicker and more efficient. “The last thing a meat plant wants is downtime and we offered a solution that
quickly transitioned from their old equipment to our new modern alternative. “We left the show feeling very pleased with ourselves as all our competitors still had exhaust flues on their machines. We also learnt just how many meat machinery manufacturers there were globally, which increased our potential market enormously.” On their return flight from Germany, Rob and Pudd spent their time in the air designing an add-on piece of equipment to the iSHRINK. During the iSHRINK process, meat goes through the shrink tunnel leaving excess water that needs to be removed quickly. The iDRY was designed to eliminate this excess water while continuing on with the ‘plug and play’ design philosophy. Next came the iCHILL, a supercharged chilling system that cools meat before it is packed and stored in a chiller. The iCHILL machine won McLaren Stainless the Innovator of the year award at the Hawke’s Bay Export Awards 2016. Rob decided that their next visit to the show in 2013 would be as exhibitors, which was a huge financial cost for a small engineering firm from Hastings. He decided to make a statement; no simple stand and brochures for McLaren Stainless, they went full noise, packing four machines into a container and sending it off to Germany. “We met a North American customer who loved our equipment so much they have since ordered 50 machines over the last three years.”
Rob admits that the business would not be in the position it is today without some key factors: taking over a successful engineering firm from his father, employing talented and dedicated staff, receiving incredible support from his bank and undertaking the Icehouse Owner Manager Programme in 2013. “The biggest challenge for me has been completing the Icehouse course three years ago." Although the Icehouse training covered topics such as marketing, understanding financials and managing staff, the biggest learning curve for Rob was how to deal with issues and conflict. “I learnt not to put my head in the sand and hope the issues go away. Now I sort them out and move on, and I have gained confidence in backing myself during this process.” Within six to twelve months of finishing the course Rob had invested more than $1.5 million in new manufacturing machinery. He also consulted his staff regarding working conditions, which resulted in the entire McLaren Stainless staff working four-day weeks. “It’s working really well and everyone returns to work refreshed after their threeday weekend.” The McLaren Stainless business model continues to change with business going into a joint venture arrangement with Auckland firm MODA. The McLaren Stainless team will focus on manufacturing the iSeries range and will continue to develop new products
iCHILL, a supercharged chilling system
such as spiral conveyors for the wider food industry, while MODA will develop key relationships with meat companies. As McLaren Stainless continues to exhibit at a variety of trade shows industry leaders search out Pudd and Rob prompting questions such as “What’s new in the meat world? What have you guys been up to? What’s coming up? What can we expect to see from you next?” Customers know we strive for excellence, are continuously working on new products and we deliver these new products with pride. As Hawke’s Bay and New Zealand continue to build a reputation for quality food products, McLaren Stainless is eager to continue TO be the preferred supplier of food processing equipment to the world... watch this space. www.mclarenstainless.com
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Trade winds blow favourably for Tow & Blow WRITER & PHOTOGRAPHER : Clinton Llewellyn
Tow and Blow. A few short words that “once heard are never forgotten”, according to Tow and Blow creator Kim McAulay and his wife and fellow company director and shareholder, Janice Atkinson. And they are becoming increasingly wellknown words as the couple’s Hawke’s Bay designed-and-assembled portable frost protection fans proliferate around the globe – one Hollywood movie set at a time. When Janice accepted the Innovation in Export award on behalf of the company at The Old Church on July 21, she told the crowd about how, when Tow and Blow was launched in 2012, they sent out a press release and photos expecting most interest would come from the “usual suspects”, mainly orchardists and winegrowers. But it wasn’t long before the couple started fielding inquiries from around the world asking if Tow and Blow had other applications in industries other than horticulture and viticulture – including the movie-making business – setting the company on its path to becoming an exporting success story. “Yes, it’s true. The overseas market was far easier to crack than the New Zealand market. We exported in our first year of production,” recalls Janice, aged 54, also the company’s finance and administration manager.
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“They are used in the United States for cooling crowds at American football games and outdoor concerts and the like; and yes, Hollywood owns one for special effects, as does a local special effects guy,” says Janice, before rattling off examples of how Tow and Blow is used in more conventional ways. “They have been sold to piggeries to divert the smells away from local residents; they have been sold to contractors for keeping dust down in construction sites; they are used for drying filleted timber to reduce drying time and cost in the kiln; and they are used for drying crops prior to shipping and harvest, like kiwifruit and cherries.” While overseas interest was almost immediate, Tow and Blow managing director Kim McAulay, aged 55, says the company still faced significant challenges in the early days, namely overcoming the ill winds directed at the frost fans by his competitors. “The most difficult thing we had to overcome was the many ‘tales’ told about how the machines didn’t work, which of course hinders growth. Having said that, we have only just been able to keep pace with the rate of growth so we’re not complaining. It’s just sad that the competition felt so threatened that they had to bag the product and, of course, a lot of people listen.”
Janice Atkinson and Kim McAulay
The reason why Tow and Blow is a “genuine threat” to the other wind frost fan manufacturers, Kim explains, is because it simply improves on “well-known and well-researched” wind machine technology already in existence. Kim first came across wind machines more than 20 years ago when working in the United States. Coming from a background in orchards in New Zealand and well aware of the devastating effect of frosts on crops, he started importing used wind machines when he returned, then began importing new machines, before moving on to making his own. He successfully developed and began production of his first frost protection fan, 'The Frost Boss’, in 1998. He later sold the company in 2007 to NZ Frost Fans, the only other major frost fan manufacturer in New Zealand, before building the first Tow and Blow prototype in 2012. Despite being equipped with a 23 horsepower V-Twin Honda engine (relatively small compared to some open-
Above: Kim McAulay in workshop Below: Tow & Blow in situ.
“Everything is supplied to our design specifications. We use as many local suppliers as possible. If we have all of the parts here and all preparation work has been done, two men can assemble three machines every two days." – Kim McAulay
style frost fans boasting much larger 150 horsepower engines), Kim made a series of improvements, such as encasing Tow and Blow’s 2 metre wide impeller within a bell-mouthed duct, to ensure his frost fans were far more efficient and used only “a fraction” of the fuel than other fans on the market. “The duct acts like a vortex, so it is like turbo-charging the fan. Stators on the exit side of the fan have the purpose of taking the swirl out of the air, enabling the fan to send the airflow further across the field. “Tow and Blow simply takes well-known and well-researched technology about fan performance and incorporates them all into a machine that can be taken anywhere, used anytime and used for any purpose. “It can warm things up, cool things and people down, dry things, and blow things away, like noise, smells and dust. It can blow in any direction. It can do a full rotation or oscillate back and forth, or not at all. The fan head can be angled up and down. It can be positioned on unlevelled ground and on slopes.”
The versatility of his fans, and the fact the 8.5 metre high structures are portable anywhere, provides his customers with a greater return on their $37,000 (plus GST) investment, claims Kim. Another major advantage of his fans is that they are “easily exported, already fully assembled” by staff at Tow and Blow’s production factory in Niven St in Onekawa, where the couple and nine other employees work. “We don’t fabricate anything here. We bring in parts from overseas and New Zealand and assemble them,” says Kim, standing on the mezzanine level overlooking the factory floor where up to 20 fans are in various stages of construction. “Everything is supplied to our design specifications. We use as many local suppliers as possible. If we have all of the parts here and all preparation work has been done, two men can assemble three machines every two days. We have two assembly lines so can actually assemble three machines a day if required. In the future we can double that assembly capability if required.” And with demand growing, that extra production capacity should come in handy. Last year, 130 of the wind machines were produced, with 70 per cent of those destined for overseas. But this year the couple expects production to rise to 200 machines.
To sustain that growth, they are focusing on expanding their NZ and Australian markets, continuing with product improvement and investigating more uses and applications for Tow & Blow. For example, Janice says next autumn, Tow & Blow will be tested to drop temperatures at night to increase the colour of apples to enable an earlier harvest time. “There are now over 350 machines worldwide and within six months that is likely to be closer to 500,” she predicts. “Every year since we first set up has been profitable and exceeded targets. The business will only grow from strength to strength now.” www.towandblow.co.nz
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Ticking along nicely in Tikokino WRITER & PHOTOGRAPHER: Clinton Llewellyn Phoenix fire pump founder Mike Harrison
Inside a shed in the tiny rural township of Tikokino in Central Hawke’s Bay, three men are busy hand-assembling the Rolls-Royce of portable firefighting water pumps. The shed is situated next to the home of Phoenix Fire Pumps founder and company managing director Mike Harrison. With three fulltime staff in a town boasting a total population of just 2,718, and with only 700 souls living in the rural village itself, Mike chuckles at the thought he might be the biggest employer in Tikokino.
pumps of most of the brigades in Hawke’s Bay with new engines. As word got around, requests started coming in from brigades as far away as Palmerston North. He sold his mower business but continued to refurbish pumps before buying a lifestyle block and moving out to Tikokino, which aside from a short-lived two-year stint in Napier that ended in 2014 has been the base for his business since 1998. “At the end of the day, I just saw an opportunity. It was basically a part-time job and I enjoyed doing what I was doing, but I then realised there wasn’t going to be a lot of re-power work going forward as we’d sort of
“I thought it was a great idea because at the end of the day, the New Zealand market is limited, so it had to go global [to expand]. It was a real eye-opener. Funnily enough, the Italian company didn’t sell any pumps for me but I picked up a distributor, Angus Fire, in the United Kingdom. It was bizarre because Angus made some of the pumps that we had been fixing for the fire service and they are a pretty well-respected name around the world.” Under the deal, Mike’s pumps were originally rebadged and sold in the UK under the Angus Fire brand.
“Oh no, I’d say the local school would be,” “But they were pretty good to me and said: grins Mike, the winner of the Judge’s Choice ‘If you want to start selling under award at the 2016 Export NZ your own brand that’s fine, just as Hawke’s Bay Exporter of the Year “What we try to do here in Tikokino is to make the Rollslong as it’s not in our market’. So I awards. Royce of fire pumps. Now, you can make a Rolls-Royce, started looking for other markets Today, Tikokino is where between but we’ve still got to try and remain competitive on price and since then we’ve picked up 150 and 200 of Phoenix Fire as well, and that’s not always easy with the way the New Pump’s easy-to-use, reliable, high- Zealand dollar goes up and down but we manage to do it.” some really good distributors: India in particular has been really good spec water pumps are assembled – Mike Harrison for us, Indonesia is good for us, each year, destined to be used by Singapore and some of those places. fire crews in more than 20 farexhausted that market. But I could see there “We export to eight countries that we flung places around the world, such as India and Nigeria, all sold through a network of was good demand for a new pump, so we set know of but through our distributors our about casting a new pump and it all just went pumps have ended up in Egypt, Namibia, eight international distributors. from there.” South Africa, even Nigeria of all places … But the origins of the business stretch back We are looking at targeting a few places at Mike began selling new pumps to the NZ to the 1990s when Mike, a senior firefighter the moment like the UAE [United Arab Fire Service and then importantly won a with the Napier Fire Brigade who owned a Emirates]. We are going to a fire show over supply contract with the NZ Defence Force. mower shop on Kennedy Road in Napier, first ‘re-powered’ a portable fire pump for “I guess that was the big thing that got me there in January and then there’s some really his brigade by refurbishing it with a new going, that defence force contract. I think we good interest in places like Bangladesh – sold about 50 pumps, it was a massive order ‘third world’ countries, I guess you could call Briggs & Stratton mower engine. them, that a lot of other companies might “They loved it,” recalls Mike. “It was quite at the time,” he remembers. dismiss but countries that are desperately successful actually and increased the output He then created a website for his business, trying to modernise their fire services as which resulted in another turning point. much as they can.” on it.” Following that came a request from the In 2001, an Italian company contacted Mike says the fact that he can successfully Hastings Fire Brigade to refurbish their water him asking him to travel to that country to export equipment to countries such as India, pump. Before long, he had upgraded the demonstrate his pumps at a ”big fire show” where the cost of production is small in being held. comparison, is testament to the quality of his 32
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fire pumps. It’s his company’s “competitive advantage”, as he puts it. Phoenix Fire Pumps specializes in small bespoke production runs of up to 20 fire pumps at a time, which come equipped with various-sized engines imported from respected international manufacturers such as Briggs & Stratton, Kohler and Lombardini. The company currently produces nine models ranging in price from $6,000 to $21,500 – the largest being equipped with a 2.7 litre diesel engine capable of pumping 2,000 litres of water per minute, down to a single-cylinder diesel model that pumps out 500 litres per minute at 100 psi. The pumps themselves are cast in Dunedin but machined by SMB Productions in Napier and assembled on-site in Tikokino. Dannevirke firm Metalform makes all the stainless steel frames and while he used to do all his machining work, Mike now outsources most of that to SMB Productions and concentrates on assembly and sales.
With the business growing and new markets on the horizon, Mike hopes to be able to expand production to as many as 300 units next year. “Honestly, we have everything at our fingertips in Hawke’s Bay. We’ve got great firms like Metalform, SMB Productions and Classique Plastics who are all our suppliers who are more happy to get stuck in and provide ideas, and that’s all in Hawke’s Bay. “We have a good port and that helps, too. To be honest, most of our stuff is transported via air freight or gets shipped out of Tauranga depending on the customer, but when we sent some pumps to Chennai in India from Napier Port last year, they were there in three weeks. I was absolutely blown away at how quick they got there.”
The largest Phoenix Firepump.
The fact Mike is content to remain in Tikokino is good news for the local economy but also a safety perspective. He’s been the town’s chief fire officer since 2004 and when asked if it’s one of the best-equipped rural volunteer brigades in the country, he replies with a smile: “Yes. Yes, it is.” www.firepumps.co.nz
The difference is in the quality of the finish of his hand-built pumps and the attention to detail, according to Mike. “When there’s a fire in the middle of the night and there are flames everywhere and it’s just you, you need the pump to be easyto-use and reliable. “What we try to do here in Tikokino is to make the Rolls-Royce of fire pumps. Now, you can make a Rolls-Royce, but we’ve still got to try and remain competitive on price.”
Longtime employee Tony Spargo works on a mid-sized Phoenix Firepump model.
We’ve got more tarmac for you to park on Hawke’s Bay Airport is growing and to cater for the growth we’ve added 140 new car parks. Additional car parking is planned with the revenue generated from the price increase set to deliver customers with a higher level of service.
Watch this space for further announcements
For more information visit www.hawkesbay-airport.co.nz NOVEMBER - JANUARY 2017
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HAWKE’S BAY LEADS IN GREATEST RANGE OF WINE Hawke’s Bay is leading New Zealand as the region producing the greatest range of champion wine styles. Chairman of Judges, Warren Gibson, chief Winemaker for Trinity Hill says this is a tremendous accolade for Hawke’s Bay. Speaking to the 500 sell out crowd who filled a glass-top marque at the Waikoko Gardens Warren toasted the huge success of the 16th Hawke’s Bay A&P Bayleys Wine Awards which launched the beginning of the region’s biggest event in town – the 2016 Royal A&P Show of New Zealand. “Nowhere else in this country, or even perhaps many other countries in the world, is there a region producing a wider range of wine styles at this outstanding level of excellence”.
With four great vintages in a row, Warren says it’s fair to proclaim that in 16 years of the Awards, this was the strongest line of wines put forward. “After outstanding successive vintages, starting with the 2013 so-called ‘vintage of the century’, we are seeing the evolution of Hawke’s Bay as a wine region, through its vineyards and winemakers and the quality of wines across all categories.” The Champion Wine of Show, Pernod Ricard Boundary Vineyards Farm Lane Hawke's Bay Syrah 2015, says “I’m from Hawke’s Bay”, showcasing the personality of the region with its juicy drinkability and characteristic pepper and red licorice," says Warren. Sparkling all night, the Reserve Champion Wine of Show Church Road’s Blanc de Noirs
CONGRATULATIONS TO OUR
WINNERS Champion Wine of Show
Pernod Ricard Boundary Vineyards Farm Lane Hawke's Bay Syrah 2015
Warren Gibson
2006 highlighted the ageability of the style and also just simply how delicious it was to drink. “These Champions of Champions wines highlight the versatility of our region and together with the great range of tonight’s award winning wines, it takes Hawke’s Bay well beyond the traditional Merlot/ Cabernet Sauvignon, Chardonnay and Syrah styles we have become known for in the wine world.” Presented for the first time in a new category was the Outstanding Wine of Provenance Award to Newton Forrest Cornerstone. The idea of the Outstanding Wine of Provenance Award is to reward a Hawke’s CHAMPION WINE OF SHOW Pernod Ricard Boundary Vineyards Farm Lane Hawke's Bay Syrah 2015 RESERVE CHAMPION WINE OF SHOW Church Road Blanc de Noirs 2006
Reserve Champion Wine of Show
Church Road Blanc de Noirs 2006
CHAMPION COMMERCIAL RED WINE Pernod Ricard Boundary Vineyards Farm Lane Hawke's Bay Syrah 2015 CHAMPION COMMERCIAL WHITE WINE Junction Pastime Pinot Gris CHAMPION EXPORT WINE OF SHOW Villa Maria Private Bin Hawkes Bay Rosé 2016
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Wine Champion award winners Chris Scott & Craig Thomas from Pernod Ricard with Bayleys chief executive Greg Hornblow.
Opera singers Prima Volta captivated the crowd.
Bay winery that, for more than a decade, has shown consistent delivery of a wine and brand that gives consumers total confidence in purchasing and cellaring. “The Cornerstone delivers a dynamic, unique Cabernet/Merlot from the Gimblett Gravels that shines as a wine style,” says Warren. Boundary Vineyards Farm Lane Champion Wine of Show Hawke’s Bay Syrah 2015 wine maker Craig Thomas says the winery had aimed to produce an elegant but
approachable wine that is dark, savoury and has that peppery spice finish that so typifies Syrah from the Hawke's Bay region.
Hawke's Bay A & P Society general manager Brent Linn said says once again the atmosphere was “simply amazing”
The fruit for the wine came from vineyard sites within the Bridge Pa Triangle area of Hawkes Bay. The soil type is Ngatarawa sandy loam on gravel that typically produces ripe, opulent fruit at low sugar levels, making the wine flavourful without high alcohol. Syrah from this sub-region often exhibit signature white pepper and floral aromatics.
“These awards are a great opportunity for Hawke’s Bay’s wine industry and business community to get together and celebrate success. Our purpose is to champion industries and wine as a sigificant land use in Hawke’s Bay,” he said.
BEST STUDENT WINE Jascha Oldham-Selak Jos
RED BLENDS - MERLOT DOMINANT Pask Small Batch Trilliant 2014 (Trophy)
HAWKE'S BAY A&P SOCIETY YOUNG VINTNERS SCHOLARSHIP Ben Jones
SYRAH Pernod Ricard, Boundary Vineyards Farm Lane Hawke's Bay Syrah 2015 (Trophy)
HOUSE OF TRAVEL HASTINGS & HAVELOCK NORTH HAWKE'S BAY CELLAR DOOR OF THE YEAR Black Barn Vineyards MERLOT Church Road McDonald Series Merlot 2013 (Trophy) RED BLENDS CABERNET SAUVIGNON DOMINANT Beach House Cabernet Malbec 2014 (Trophy)
SAUVIGNON BLANC AND/OR SEMILLON Sileni Cellar Selection Cape Sauvignon Blanc 2015 (Trophy)
ROSE Villa Maria Private Bin Hawkes Bay Rosé 2016 (Trophy)
PINOT GRIS Petane Station Pinot Gris 2015 (Trophy)
OUTSTANDING WINE OF PROVENANCE Newton Forrest Cornerstone (Trophy)
PINOT NOIR Sileni Cellar Selection Plateau Pinot Noir 2015 (Trophy)
VIOGNIER Saint Clair Hawke's Bay Premium Viognier 2015 (Best in Class)
SPARKLING Church Road Blanc de Noirs 2006 (Trophy)
OTHER PREMIUM RED VARIETALS AND BLENDS Beach House Cabernet Franc 2014 (Trophy)
PREMIUM WHITE VARIETALS Lime Rock Grüner Veltliner 2016 (Trophy)
CHARDONNAY Clearview Estate Reserve Chardonnay 2015 (Trophy)
SWEET WINE Alpha Domus AD Noble Selection 2015 (Trophy)
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THANKS to all our
SPONSORS Principal sponsor: Bayleys New Zealand
Hosted and event managed by Hawke's Bay A&P Society
As the leading seller of vineyards in Hawke’s Bay, Bayleys knows how important it is that the region’s wine maintains and grows its reputation for excellence. That is why we are proud to sponsor the awards that celebrate the outstanding quality of wines produced in the Bay. www.bayleys.co.nz
LOGAN STONE
WINEWORKS HAWKE’S BAY
Logan Stone is a leading valuation company for the Primary and Post Harvest Sectors throughout New Zealand. We have strong connections to the New Zealand and Hawke’s Bay wine sector and thoroughly enjoy this association. www.loganstone.co.nz
“WineWorks aims to be Trusted to Bottle New Zealand for the World. This means being living our values of Partnership, Value, Industry Commitment & Expertise” www.wineworks.co.nz
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Whether it’s a cosy sofa to curl up on with a glass of red or a stylish outdoor setting for your next summer dinner party, Big Save have all the furniture you need. www.bigsave.co.nz
Elevate your brand by creating meaningful experiences and connecting to what matters most. www.no9.co.nz
BAY MAZDA HAWKE’S BAY What a perfect fit, quality service, quality vehicles matched with quality wines. All your needs at Bay Mazda Hawke’s Bay. www.bayford.co.nz
FLUIDEX TRANSPORT LTD New Zealand’s leading bulk liquid and dry powder transport operator. Specialising in bulk liquid transportation, operating throughout New Zealand. Many years of experience dealing with unique transport requiring customised solutions. www.fluidex.co.nz
MOORE STEPHENS MARKHAMS Specialists in advising the wine and viticulture sector in Hawkes Bay. Our collective aim is to help winemakers, grape growers and industry – thrive in a competitive market. www.markhams.co.nz
ATI ENGINEERING Dedicated to design excellence, innovation, quality workmanship and efficiency, ATI specialises in tank manufacture for food processors and winemakers. www.ati.co.nz
SOMERSET SMITH PARTNERS Committed to supporting local businesses as well as recognising that Hawke’s Bay provides world class services and products. www somersetsmith.co.nz 36
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BIG SAVE FURNITURE
HAWKE’S BAY WINE COMPANY Taking the right people, toys, intuition, precision and knowledge to create great wines. One of the best-appointed wineries in the country, set up to handle large commercial volumes with a solid history of making some of Hawke’s Bay’s top wines. www.hawkesbaywineco.co.nz
FALCON Providing engineered electrical turn-key solutions plus switchboard design and manufacture; specialising in automation, for process control, production monitoring and management; everything to make that next vintage even more impeccable. www.falconltd.co.nz
KAURI NEW ZEALAND LTD Providing premium wine making products to the local wine industry, and assisting winemakers to make medal winning wines for 25 years" www.kauri.co.nz
HURFORD PARKER INSURANCE BROKERS Local, Personal and Professional. Hawkes Bay’s largest locally owned and operated insurance brokers- our Gold Medal Vintage insurance is a unique policy created specifically for wineries, acknowledging that wine is a truly unique product. www.hurfordparker.co.nz
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MARDIGRAS EVENT HIRE With a comprehensive range of marquees, furniture and catering equipment, our job is to make every occasion a special event and one to remember. www.mardigrasevents.co.nz
LANGLEY TWIGG LAW Toasting all of our clients including those in the wine industry, supporting them with sound legal advice and sponsoring excellence in Hawke’s Bay winemaking. www.langleytwigg.co.nz
NZ FROST FANS Manufacturing and servicing frost fans for the protection of crops from frost. The FrostBoss C49 is sold throughout NZ, Australia, Turkey, Canada and Europe. www.nzfrostfans.com
VINTECHPACIFIC WINE TECHNOLOGIES VintechPacific provides high technology mobile winemaking services to the winery door all over New Zealand, allowing wineries to improve efficiencies and conserve capital expenditure. Technology, where great ideas get real. www.vintechpacific.co.nz
O-I NEW ZEALAND The beauty, versatility and endless sustainability of glass inspire us to create innovative and modern glass containers with a functional elegance and quality that exceeds all other packaging materials. www.o-icatalogue.co.nz
EIT EIT offers the widest range of viticulture and wine qualifications both on-campus and by distance by highly knowledgeable and experienced lecturers in New Zealand’s premium wine growing regions. www.eit.ac.nz
MACVINE INTERNATIONAL LTD Sole importers and distributors of Spiegelau Stemware to NZ along with a range of international wine brands representing several NZ producers. www.macvine.co.nz
MR LABELS Producing labels and high quality specialised glassware for special occasions, large events or hospitality, be assured of high quality printing that stands the test of time. www.mrlabels.co.nz
JENNY NILSSON HOUSE OF TRAVEL We truly believe that travel enriches people’s lives and that the best holidays are created together. So bring your ideas into House of Travel and we’ll help you get there! www.hothawkesbay.co.nz
ATTN! MARKETING PR ATTN! marketing PR and digital takes your stories across New Zealand and to the world. We are a team of influencing reputation builders, delivering Attn! getting results with a full suite of communications, video and creative design services. www.attn.co.nz
NZME THE RADIO NETWORK AND HAWKE’S BAY TODAY Each week we connect with over 3.3million* kiwis. Whether they are reading, listening, or watching, we deliver them the content they need wherever and whenever they want it, across digital, print, radio and ondemand video platforms. www.hbtoday.co.nz
CRAGGY RANGE WINERY Each year the best winemaking student joins us for vintage – providing a budding winemaker with the chance to gain experience working alongside winemakers from around the world. www.craggyrange.com
NAPIER CITY COUNCIL Napier City Council has almost 500 employees who along with the Mayor and Councillors work to put the policies and aspirations of the Council and city into action. www.napier.govt.nz
GUTHRIE BOWRON Guthrie Bowron are New Zealand's home decorating specialists, trusted since 1896. We offer Kiwis everything they need to refresh their homes, as well as advice from experts in every store. www.guthriebowron.co.nz
HAWKE’S BAY WINEGROWERS Hawke's Bay Winegrowers Inc is the official regional wine industry organisation representing all wineries and growers. Formed in 2006, early growers and winemakers organisations amalgamated to form one industry body. www.hawkesbaywine.co.nz
ONE PURE To seek out NZ’s purest mineral water and bottle it direct at the source. Share the health benefits of natural mineral water with everyone. Supply NZ’s finest, untouched mineral water to the world. www.onepure.co.nz NOVEMBER - JANUARY 2017
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ARE YOU PREPARED? With so much of our busy, modern lives powered by electricity, a power outage can bring us to a standstill. So, it is important to consider whether you are prepared to get through – at work and at home.
PREPARE YOUR HOME FOR UNPLANNED POWER OUTAGES When the power is off, we become all too quickly aware of how many of our day-to-day activities rely on electricity. From the basics, like cooking the family meal and heating our homes, to key infrastructure services like petrol pumps and modern conveniences like automatic doors, the many ways in which electricity supports our daily lives quickly become challenges when the network is down. Stay prepared by making sure you have the basics sorted at home: • Keeping the gas bottle on your BBQ full will ensure you always have a cooking source in a power outage. Some fireplaces are also designed to be used as a hot plate, which provides another way to boil water or heat food.
• Unison has a range of tips on how to get through with no power at home – from how to get out of the house in the morning with no power, through to tips on keeping your kids entertained – check them out at: www.unison.co.nz/electricity-outages-lifehacks.
• If you rely on electricity for heating, consider getting a portable gas heater with a full gas bottle as a back-up heat source.
• Make sure you have plenty of warm blankets handy for winter outages and take all steps to conserve heat in your home by closing doors, windows and curtains, and using towels to block any drafts.
• Have a well-stocked emergency kit. For ideas, visit www.getthru.govt.nz. • Consider back-up generators that will operate during unplanned power outages to ensure vital lighting and equipment continues to operate.
• When the power comes back on, ensure you are aware of the equipment that needs re-setting. • Keep away from any power lines – treat them all as if they are live. If you spot any downed or damaged lines, call Unison on 0800 2 UNISON (0800 2 86476).
• Having a car charger for your phone is also a handy way to boost your battery while the electricity is out.
WHAT’S UNISON DOING TO KEEP MY POWER ON? Unison has a team of specialist engineers who research, test and deploy the latest costeffective technology so it can provide increased reliability and ensure customers have power every time they flick the switch: • Creating a smart network: Unison has deployed smart technology across the network that is automating much of the day-to-day management. This includes using fibre optic networks, radio transmitters and other technology to give the Control Room real-time data and automate aspects of network management.
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• Have an emergency plan in place so your staff are aware of, and understand what to do, during an unplanned outage.
• Consider the use of manual EFTPOS and credit card options.
• A battery-operated or wind-up radio is the best way to keep informed when the power is out.
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Here’s some tips for how you can help your office or business to get through when things don’t go to plan.
• Have back-up alternative locations to work from and ensure you are able to divert landlines to mobiles.
• For lighting, the best and safest option is an allweather torch with plenty of spare batteries.
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While Unison aims to deliver uninterrupted supply to its customers, there are times when unplanned outages are caused by external forces, which are out of Unison’s control.
• Ensure you have UPS and surge protection for critical computer systems. They will add protection for sensitive equipment and help prevent a computer crash if the power goes out.
• Don’t forget to have spare food for your pets in your emergency kit.
As part of its Smart Network strategy, Unison was the first company in the world to install and commission a Silver Spring Networks (SSN) Generation Four (Gen4) Distribution Automation (DA) mesh radio network, to provide communications to its smart devices.
PREPARE YOUR BUSINESS FOR UNPLANNED POWER OUTAGESS
• Minimising damage: Over 20 percent of network outages are caused by trees coming into contact with power lines. Unison annually surveys the network to monitor the growth of trees and has a team dedicated to working with landowners to keep vegetation well clear of the lines.
• Proactive asset management: Through careful management and maintenance of its assets, Unison has a thorough knowledge-base of its assets and their remaining life so the Company can replace them before they fail. • Maximising performance through design: Unison continually reviews its network design and its ability to restore supply to customers should a fault occur on the network. This includes building redundancy into the network where possible, so that if customers are cut off from one area of the network they can be reconnected using an alternative supply until repairs can be completed.
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Primary
Aligning Our Future By Brent Paterson | Rural Directions
2016 is shaping up to be a busy year in Hawke’s Bay! We have seen local elections, a notable rise in the use of social media commentary, water contamination issues and looming deadlines for the Ruataniwha Dam and Plan Change 6 – it is hard to recall when the future direction of Hawke’s Bay has been more hotly and publically debated. As a region we need to discover middle ground and recognise how to balance the environmental, social and economic opportunities and potential threats that lie ahead of us. I have been listening with interest and from where I sit it feels that the primary sector is often misrepresented or misunderstood – could this be the rural/ urban divide sidling into our region? Hopefully now that the elections have been and gone we can get back to dealing with some facts on these critical matters. Don’t get me wrong, I’m not just here to protect the farmers but this trial by social media is creating the wrong behaviours. Human nature is an interesting thing in terms of people making snap assumptions and often by the time a formal process has been followed to establish the facts the public have passed their perception vote and moved on. We are better to wrap our arms around those not doing as much as they should for the environment (urban and rural alike), hold them close and work with them to create an understanding of the impacts. I’m quite sure that when you get involved in a business model you pay much more attention to the contributing factors of that subject and never have I been more excited about our latest service offering, Rural Directions Advisory Services. We have taken on two Senior Land Management Advisors and working with them has changed the way that I look at my (our family trusts in partnership with the BNZ...) personal land resources. Understanding the impact on our land has really made us challenge our systems. We are currently going through the FEMP (Farm Environmental Management Plan) process with the guys and it is amazing how the small tweaks we can make to our systems will potentially have a positive fiscal impact on the business and a positive environmental outcome. We visited a large farming business in Taihape some weeks ago that has a plan in place and it has transformed managements thinking; without referring to the plan all of
the time, they now subconsciously consider what it says when making their business decisions. If we want these assets in our business long term we need to manage the impact they have. The key to a FEMP is that it is an interactive plan as having a static FEMP is like ticking the regulate box and missing the impact and conscience box. You can potentially do part of this alone but if you don’t have a true understanding of nutrient management and are not a Certified Nutrient Advisor you are likely going for that regulate box again. Farmers tend to be an easy target in many debates but to be fair we all need to play our part and understand the impact of today’s actions, or inaction on tomorrow. Everyone has a responsibility and through education and inevitable compliance we will all start to question and correct our behaviours. Policies are in place to ensure better disciplines and more considered practices are applied to the land and the deadlines for meeting new compliance regulations are nearing. My experience is that most landowners across the primary sector, including lifestyle blocks, vineyards, farming and the horticulture sector appreciate the asset under their care. It would be naïve to think they are all operating their businesses in the most environmentally friendly manner; however I venture to say if they were equipped with the right information and the positive outcomes were demonstrated there would be a high rate of behaviour change. Out of this thinking Rural Directions Advisory Services has evolved with a brand phrase to “Cultivate Thinking”. This is inspired by the fact that we are investors in the land ourselves and seek outcomes through the process of Farm Environmental Planning, adding value to businesses. We are driven to provide solutions to businesses through understanding the goals, the resource, the business models and then by applying our findings, knowledge and shared learnings. Rural Directions Advisory Services bridges the gap between the science behind the resource and the practicality of farming systems, while operating with 100% independence. Our two Certified Senior Land Management Advisors within the business have a wealth of knowledge in the space of Farm Environmental Management Planning, Nutrient Budgeting, Land Use
Project Planning, Soil and Herbage Testing and Analysing and Soil Mapping. The business also has strategic associations with specialist soil mapping, agribusiness and governance specialists. The challenge is to lead by example and no one is exempt from this. I’m in partnership with my Bank as I’m sure many are, so this needs to make fiscal sense to me also. I have been fortunate enough to be exposed to Rural Direction’s Advisors and now understand what can be gained from better resource management - even a simple improvement like a professionally developed soil map for the farm has challenged my thinking. Their role is to help landowners understand their resource better and arm them with more information so that they can make smart decisions for their businesses. I have concern that when, not if, the consumer comes back to the producer and asks for the environmental mitigation plan that the repercussions to our marketing leverage may be huge if it is not managed properly. Every photo and comment posted whether it be positive or negative has a direct line to our consumer anywhere in the world and we need to be aware of the impact this may have. Lets challenge ourselves to take the opportunity to post some outstanding photos demonstrating environmental care in our region across all sectors. I’m excited about the suite of products that we now offer at Rural Directions; if you understand your resource (RD Advisory), your people (RD Recruitment & HR) and your numbers (RD Business Administration) you have a business model which is well aligned for the future. Brent Paterson is the founder and Managing Director of Rural Directions Limited. He is involved in the Family Farming Entity in Patoka and the Agri-business Sector with the following Rural Directions Entities Rural Directions Recruitment & HR, Rural Directions Business Administration and Rural Directions Advisory. To contact Brent, email – brent@ruraldirections.co.nz. NOVEMBER - JANUARY 2017
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Technology for your pet Napier’s Vet Services is now a one stop shop for pampered pets and exotic animals alike. WRITER: Amy Shanks
Vet Dave Kruger with Oscar
Whether covered in fur, feather or scales – animals of all shapes and sizes will benefit from new technology at Vet Services in Napier.
"People like to get to know their vet, they want someone who is going to build rapport with their beloved pet and knows their history. – Dave Kruger
An equipment upgrade at the four-yearold clinic includes X-Ray and ultrasound, meaning vets are prepared to tackle any issue that walks through their doors.
"This particular machine is really great when working on old animals, or those with compromised health, to track how they are faring. Now we are fully equipped to handle anything that comes through our door, and can offer a full range of services in one place, without the need to transport animals.”
Vet Dave Kruger has been with the business for 21 years and is excited to offer Napier clients the latest technology for their pets. “Computer radiography is something we are now able to deliver at all of our sites in Napier, Hastings and Waipukurau," says Dave. "It's a great diagnostic tool for bone and works well alongside ultrasound which is used for anything to with soft tissue – from pregnancy to heart conditions." The main benefit for their dedicated team of vets and nurses is immediacy and ease of diagnosis. “Technology changes everything – if a dog comes in with a dislocated hip, we can X-Ray on the spot and pop it back in right away. "If an animal presents with a lump, we can tell using ultrasound whether it's filled with fluid or a solid mass, it can even be used to determine tendon strain. "I am very passionate about the possibilities this can offer, I think you need to have a passion for technology in this industry."
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Vet Veronika Pipe
Even dental conditions will show up on X-Ray, so Vet Services Napier can cater to common curses such as periodental disease in cats and dogs. An in-house laboratory is also new, providing the option to complete quick biomedical tests on site ahead of surgery. "This is yet another service that's really helpful, It allows us to test animals before they undergo an anaesthetic – it’s particularly important if they are old or have bad kidneys. "We can have an answer in just a few minutes, without waiting for an off-site lab to process the results." Finally, the introduction of a blood pressure monitor helps keep a watchuful eye on patients while on the operating table.
The clinic is built on the foundation of a great team, with a broad range of skills including experience with exotic animals and native birdlife such as Kiwi. Overall Vet Services strives to deliver consistent, quality care in a friendly environment. "People like to get to know their vet, they want someone who is going to build rapport with their beloved pet and knows their history. All of the vets here have worked in different areas, which means we are able to bounce ideas off one another in order to deliver the best outcome. “We continue our education and share that knowledge with one another, Veronica is great with rabbits, while Helen has worked with native birds, so it’s really diverse.” www.vshb.co.nz
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Finance
Finance
Responsible Investing Responsible investing rises on the back of solid returns. By Tobias Taylor | Spicers Portfolio Management
Investors’ appetite for funds that are aligned with their values and investment beliefs is growing across all demographics, particularly in the wake of publicity on divestment campaigns around fossil fuels and poor governance by some organisations. Ethical investing in New Zealand, which is responsible investing that takes into account environmental, social and governance factors, grew 28% in the past year to $78.7 billion in response to consumer demand and strong returns. The New Zealand Responsible Investment Benchmark Report 2016 shows that core responsible investment – ethical or socially responsible investment at the retail end of the market (including investments made by KiwiSaver schemes) – also increased by 18% over the year to $1.6 billion, reaching 2.6% of total assets under management. Competitive returns from ethical investing Dispelling the myth that socially responsible investment returns are weak compared to mainstream funds, the Australian Responsible Investment Benchmark Report 2016 shows that core responsible investment Australian equities funds outperformed both the ASX300 index and the average large cap Australian equities funds across one, three, five and 10 years. Consumer demand Recently in New Zealand we read in the media about some KiwiSaver scheme members who did not want to be part of funds that invested in cluster bombs and landmines. For the younger generation, demand may be driven more by concern for the environment and a need to know where their money is going. Older groups, such as boomers, are increasingly concerned about the kind of world they are leaving for younger generations and the kind of legacy that they will leave behind them. What responsible investment is right for you? If you’re like a growing number of New Zealanders who want to make a difference, while still enjoying the benefits of strongly performing investments, it is appropriate to ask your Adviser if you are invested into assets that may be contrary to your ethics and values. While everyone has a varying degree of views on number of issues, some categories such as land mines and cluster bombs are very consistent with most people. An excellent article appears in the New Zealand Herald on Friday 26th August from Fisher Funds. In this article, “The problem is, an index fund doesn’t choose its investments – it will own good companies and bad, in sin industries and not. The companies in an index are determined by their size, not by their goodness... As fund managers have embraced index funds, they have unwittingly invested more of their clients’ savings in industries and businesses that, elsewhere in their business, they have actively sought to avoid.
Passive funds are not only passive in selecting stocks but also in their treatment of companies they invest in. They don’t visit management, lobby companies or vote to change practices to encourage “good corporate citizenship”.” What’s changing? Again, in the New Zealand Herald, it was reported that “KiwiSaver providers dump $109m of weapon and tobacco investments” and noted that many of the main fund managers in New Zealand had an allocation to assets black listed by the New Zealand Superannuation Fund. This is largely now seen as the New Zealand fund managers benchmark. Vanguard is a global manager of index funds, whose holding is very popular in many portfolios, and many KiwiSaver funds, including as the passive global shares provider of choice for four of the default funds – Kiwi Wealth, Westpac, Grosvenor and ASB. ANZ, uses a BlackRock passive fund for international equities in its $1 billion default product. But the highlighted exposure to these investments have been shared by a number of other KiwiSaver providers. On September 11 it was reported that “…Vanguard is working with its NZ KiwiSaver clients to develop an “acceptable” passive global shares solution that excluded companies associated with cluster bomb and nuclear weapons manufacturing”. The above chart shows that consumer awareness and pressure can change many things. As KiwiSaver balances grow and become a corner stone to the funds management industry, it’s the everyday New Zealander with a KiwiSaver account that can apply pressure to ensure their money is managed in line with their values.
Tobias Taylor is an Authorised Financial Adviser (AFA) with Spicers Portfolio Management. He has more than 15 years’ experience providing financial advice and is based in the Hawkes Bay area. To contact Tobias email tobias@spicershb.co.nz Tobias Taylor has a disclosure document that is available on request and is free of charge. The information in this article is of a general nature only and is no substitute for personalised advice. To the extent that any of the above content constitutes financial advice, it is class advice only. If you would like advice that takes into account your particular financial situation or goals, please contact your Financial Adviser. NOVEMBER - JANUARY 2017
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PRO RMA
Resilience, and some of the realities and inevitabilities we need to consider By Cameron Drury | Cheal Consultants
I recently attended the New Zealand Association of Resource Management conference held here in Hawkes Bay. The conference theme was ‘building resilience to thrive in a volatile environment’. ‘Volatile’ strikes as me a strong word representing something that isn’t really that good, or something we should be cautious of. The word ‘resilience’ is probably over used in our sector, but it’s generally a word that describes a good thing, or something that seems like a good idea to have. This was where the irony of our expectations struck me – do we have any appreciation of the enormity of the issues we face? If it was only the ‘enormity’ of the challenge that was the issue, we could probably overcome that – the problem is the complexity of the issues and the volatility of the systems at play. While we try hard to understand these, we simply can’t provide all the answers. Our desire to achieve efficiency doesn’t help. To be resilient, which sounds like a good idea right – means building in some redundancy, or some flexibility. Apply this to a Plan Change process where people want certainty, or to a budgeting process where there is a desire to watch cost or limit investment, can we really expect to achieve any degree of resilience? It also struck me that the complexity and integrated nature of our issues makes anyone with a single agenda pretty un-worthwhile. Focusing on single agenda’s without a broader awareness of other influences and
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relationships is probably the key ingredient to an almighty fail. We need to sit back and listen to those who have expertise so that we can learn, and play a meaningful role in achieving a better outcome. There are a number of challenges confronting us in the resource management sector, and the scale of what we need to achieve to enact some degree of change or progress toward that resilient environment is massive. Everyone has a role to play and while the other buzz word at the moment is ‘collaboration’, this too will fail unless there is some understanding or appreciation of the context in which others live and think. The urban/rural divide is as much of a challenge as it’s always been. The world needs food, and what would be ironic is if we take a landscape that we protect from development in order sustain its life supporting soil capacity and then limit the use of the water over it – being the very tool and advantage we have to maximise its capacity. Sure there need to be limits, but surely I am not the only one who sees the potential irony here. Hopefully this potential won’t come to fruition and we can achieve a reasonable balance. Referring to our ‘advantage’, one could factor in the global citizen approach and consider this as a social advantage as well. Do we have a duty at a global scale to maximise the efficient use of our resources to assist those countries that aren’t as well off ? We still need to look after our environment, but if we want to be a global citizen, perhaps we should be factoring this into our thinking – or does that go against the resilience framework?
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It really is all about scale and to what extent we allow our thoughts to wander. The policy development side of the process is proving itself to represent only half the journey – if that. What’s revealing itself is the need to be prepared for a broad, long term, and probably costly implementation package to give effect to the outcomes sought through these public participatory planning processes. By their nature there will be concessions, and linkages and logic may be hard to retain in a clear and functional manner. This is where smart and strategic implementation is important, and the expertise of people on the ground and relationships with people will always prove to be any organisations greatest attribute. We do need to be ready to pay the costs of the frameworks we decide upon though. Coming back to the New Zealand Association of Resource Management conference, the Hawke's Bay Regional Council Land Management team did a great job in helping organise this, they secured some great speakers and presented some really interesting pieces themselves. Fortunate for our region, they demonstrated they weren’t only aware of the realities of our issues, they were well placed, innovative and motivated to take them on. Cameron Drury is a Full Member of the New Zealand Planning Institute and a Senior Planner with Cheal Consultants with the role of Regional Manager of the Hawkes Bay operation. Email Cameron at cameron@ cheal.co.nz. Cheal provides expert services in the fields of Planning, Surveying and Civil, Geotechnical and Traffic Engineering. Offices are located in Hawke's Bay, Taupo, Ohakune, Taumaranui and Rotorua.
PRO IT
Keeping up with the trends in technology By Simon Fletcher | Spark Business Hub
In my first column I’d like to take a look at the future and discuss a couple of key areas for business to consider. As someone who owns a “technology” business I’m exposed to technology trends and recognise its difficult to keep abreast of developments. So for business owners in Hawkes Bay hopefully I can help by focussing on a couple of trends to watch. So let’s start with some high level thoughts on the future. Gerd Leonhard is a well-respected futurist who has some thought provoking ideas about where technology is headed. He believes “that humanity will change more in the next 20 years than in the previous 300 years”. Wow, even if he is half right this will mean some of what your business does today, if not all of it could be obsolete or at a minimum automated in that time. So where will we see this change and what are a couple of trends to look at for our own businesses. The answer is everywhere and across all industry sectors. Locally, areas of relevant change are likely to be largely felt in agriculture and horticulture. These sectors are likely to see dramatic transformation through automation from the likes of Machine to Machine (M2M) and other on-farm technology programs in the next few years. M2M is a term related to connecting together devices to communicate. M2M and remote monitoring in our agriculture and horticulture industries is set to grow as more vendors and networks appear in the market. The benefits for the industry are huge and to date it has been somewhat cumbersome or applied simply as a standalone monitoring (or on/off) system. Often adding smarts to the system required multiple partnerships to find the ideal solution. This is changing and what we will see is connectivity and communication of those systems becoming smarter and more relevant to business need. Plenty of companies internationally are investing significantly in this space across multiple industries. The automotive industry essentially develops driverless cars around M2M technology. So the first key trend to look at from a business owner’s perspective should be M2M. Perhaps consider how this might add value to what you do now.
My second suggested trend to monitor is Cloud Computing. Cloud computing is essentially replacing what is stored or run on your local network or PC with an internet accessed system based off site. Cloud based storage early on was used mainly for Disaster Recovery, the ability to have your critical data managed off site in a secure facility. It was pretty simple and became commoditised quickly. That was until vendors started to add value as telecommunications networks became cheaper, faster and more accessible. Microsoft for example added value through Software as Service (SaaS), with Office365 with huge success and for a very good reason. Taking your day to day operations with Microsoft applications to the cloud made so much sense. Office365 completely removes the mundane management of software licences, gives the ability to manage policies on desktops and mobile devices, plus data backup for one monthly cost. So for the next few years I would expect this trend to exponentially grow as more vendors add offerings in this space. Think Google Play Store and Apple Store but with SaaS vendors offering software that is business centric and industry specific. Xero is a good example of a vendor that is customer centric and cloud based. As business owners what can we do today in anticipation of this transformation? It’s important that we start laying the foundations so we have the ability to move quickly and take advantage of the new opportunities. At a fundamental level moving the business to fibre, moving backups to the cloud and keeping abreast of M2M developments will give you the foundation required to exploit the future technologies. It is an exciting time and I feel lucky to have witnessed the evolution of technology to date and look forward to the next 10 years. In ending consider this, the last time the Australians held the Bledisloe Cup, Twitter and Facebook weren’t invented, so no Wallaby fan has ever tweeted or posted “We’ve won the Bledisloe Cup!” Simon Fletcher is the owner of the local Spark Business Hub and has over 20 years’ experience in the Utilities and communications industries. NOVEMBER - JANUARY 2017
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EIT reshapes business offerings EIT’s enhanced business programmes open up great new opportunities for anyone considering study options for next year. Responding to changes sought by the NZQA of tertiary educators nationwide, the School of Business has restructured its degree and diploma programmes – a move that will provide more flexibility for managing study and dovetailing it with other commitments. Students will now be offered either the one-year New Zealand Diploma in Business or the three-year Bachelor of Business Studies (BBS). With satisfactory progress in the diploma, they can staircase from the diploma into year two of the BBS and gain both qualifications. “In the past, diploma students took two years for their level six qualification and, if they chose to progress, another 1 ½ years to complete the degree,” says assistant head of school Nick Cordery. “In contrast, BBS students starting from year one take three years.” Also programme coordinator for the degree, Nick says the diploma is a popular entry point for many starting business studies at EIT. For those under 21 and lacking University Entrance, the diploma provides an alternative route into the degree. Also, for some uncertain of their academic capabilities, it can be a testing ground where they develop the confidence before moving on to higher study. “We currently have around 390 EFTS (equivalent fulltime students) studying our programmes with 80 EFTS studying at diploma level. Perhaps 30 percent of our degree students started with the diploma programme.” Head of school Rebekah Dinwoodie says EIT is one of just a handful of polytechnics to have aligned its business diploma and degree programmes so that students can complete both in just three years.
Flanked by financial accounting and taxation lecturer Alison Pavlovich (left), Bachelor of Business Studies student Elizabeth McNichol delivers her presentation on public benefit entities. Elizabeth, three-quarters of the way through her degree, works for BDO Napier and is studying part-time.
In a further initiative, EIT has taken the opportunity to redesign its Bachelor of Business Studies and the diploma to provide four entry points during the academic year. Previously there were just two – at the start of each semester. “That’s been made possible by condensing courses, which gives students more flexibility in managing their commitments,” Rebekah says. “They can complete a course in the first nine weeks of our academic year, for example, and then take the next term off.” “A student working in the horticultural industry may wish to study for just the winter terms,” says Nick. “In another example, it might work well for someone wanting to take a specific course so they can concentrate their study into a relatively short timeframe.” International research studies have shown better education outcomes for those adopting this approach, says Rebekah. “Students tend to stay more engaged.” A further factor in the school’s decision to adopt the more condensed course structure was the success rate achieved by those studying EIT’s short summer courses. EIT is again one of only a handful of polytechnics spearheading this approach. “It’s quite new,” Rebekah adds. A tighter focus on activity-based learning means students sit fewer exams. “More practical study has developed in tandem with EIT’s good connections with industry. This is building on that.” From next year, the school, responding to industry demand, is also adding two further offerings to its suite of programmes – the New Zealand Certificate in Business (Small Business) and the New Zealand Certificate in Business (Accounting Support Services). Both are being offered as night classes, ideal for those wanting to align work and other commitments with their study.
Real life, real learning, real business EIT School of Business is proud of its programme innovations starting in 2017. Our new courses will be shorter but more intense - this will provide an even better learning experience. Four start points per year will give more flexibility - start when you wish. Assessments have been redesigned to better match real world situations - so fewer exams! Our programmes are closely connected to the business and wider community so they are relevant and help you build your networks for the future.
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PRO HR
Receiving Critical Feedback Can you take it as well as dish it out? By Kimberly McKay | BDO Central
Managers and leaders generally get trained in how to give critical feedback effectively, but there is much less focus on developing the skills for receiving it. As our careers progress in experience, seniority or into ownership of a business we can perhaps become complacent about our own performance. We tend to spend quite a bit of time evaluating the performance of others in the workplace and giving feedback on how they can improve, but how often do we consider how we can improve ourselves?
Intellectually we know that this stifles initiative and improvement and has a detrimental effect on organisation performance and morale. However, in practice it is extremely hard to accept negative feedback and to encourage people to give it to us. No matter how experienced we are in our chosen field we are not perfect and missing opportunities to learn and improve is not good business practice. We all know that giving feedback can be extremely difficult so we need to learn to receive it in a way that makes the process easier for all concerned.
In a large organisation there may be structured processes to provide leaders with 360 degree feedback from peers and direct reports as part of performance review processes. There may also be periodic staff engagement surveys that provide more general feedback about the leadership team.
I encourage you to go forth and seek enlightenment - “We can’t just sit back and wait for feedback to be offered, particularly when we’re in a leadership role. If we want feedback to take root in the culture, we need to explicitly ask for it.” (Ed Batista executive coach, consultant and author)
It is important to consider this feedback carefully and respect that people took the time to provide it. It may hold some gems for improvement or self-awareness or at the very least give an insight into the way leaders are perceived by others.
Accept that others may see something we don’t. We know there is value in constructive criticism and if we approach it positively it can help us to be more successful, maintain relationships and be a more dynamic leader.
Kimberly McKay is a Human Resource Consultant with BDO Central (NI). She has extensive experience assisting both small and large employers with all aspects of their HR needs. BDO Central are Chartered Accountants and Business Advisors, with offices in Napier and Palmerston North. BDO is able to support clients with a comprehensive suite of accounting, information systems and HR services. The firm is an independent member of BDO New Zealand and part of the global BDO network. www.bdo.co.nz
• Acknowledge it’s uncomfortable – kick off by recognising the discussion may be uncomfortable, e.g. “I realise this could be awkward for both us but I really want to hear your thoughts.” Use humour to ease the tension if appropriate. • Control your reaction – if you become defensive or angry you won’t hear the message and you certainly won’t be encouraging any future feedback or maintaining relationships. Try not to be influenced by who is giving the feedback – we can learn something from everyone. • Don’t take it personally – this is easier said than done of course but try to focus on what you can learn from it. A suggestion for improvement does not reflect on your worth as a person. Feedback should be personalized but not personal. • Listen to understand – if you are thinking about how to respond to the criticism you are not listening carefully. Apply those active listening techniques you’ve learned before – don’t interrupt, repeat back what you heard, ask questions to clarify but don’t debate. • Evaluate the information – take the time to process the feedback and don’t dismiss it out of hand. Consider it alongside your existing knowledge or solicit input from other sources to give a bigger picture. Try to keep your ego from getting in the way of good advice. Look for things you can agree with rather than focusing on the aspects you don’t agree with. • Be grateful – express your thanks for the feedback. Acknowledge it’s not easy for the person giving it and that many people don’t bother.
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Creating an environment where people can give us informal feedback in person, and feel safe doing it can be more difficult when you hold a leadership position. We have probably all experienced work environments where criticising the boss was known to be a career limiting move and people were too scared to provide critical feedback, question decisions or challenge thinking.
Some steps to practice when receiving feedback:
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PRO Legal
Succession Planning By Edward Bostock | Bramwell Grossman Lawyers
Inter-generational asset planning (or succession planning as it is commonly known) is a term used to describe the process of transferring either the control or ownership of an asset from one generation to another. Consider the Issues Carefully
In the case of family businesses or farms, you first need to consider your goals and aspirations alongside those of each member of the family. This will include business, personal and financial goals. In planning for these goals you will need to consider the following issues:• At what age does the older generation wish to retire – are they going to slowly step-back from the management of the business; • Is there a need for “retirement income” and if so at what level; • Is the younger generation ready to take over and do they have the skills and commitment to run the business; • Will the younger generation have to and be willing to take on a debt burden; • What is fair to non-succeeding siblings; • What legal structure will allow an easy transition of the business and still provide adequate creditor protection for example, a Trust, Company, Partnership, or Joint Venture; • The distinction between the operation of the business and the ownership of significant assets – a division here could assist with the introduction of family members from a finance perspective; • Tax implications for all of the above.
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It is a complex process which involves several elements: management succession, estate planning, taxation and in the case of family successions, maintaining family unity and resolving disputes. The importance of having a succession plan can not be underestimated particularly for a family business or farm where often the hope is for the next generation to take over.
As you can see there are a number of matters to consider some of which may be more difficult to resolve such as the best ownership structure to assist the transition of the business while achieving the most tax effective outcome. Communication
Once you’ve considered the issues and determined what “you want”, you need to discuss this with the appropriate people which in a family business will be all of your children and your professional advisors (lawyer, accountant and banker). All sides of the puzzle need to be included – the business owner, the “successor/s” and (in family businesses) the non-succeeding family members. Invariably the most difficult and complex consideration can be how to treat the non-succeeding family members particularly where there is a want to treat family members fairly and equally – it is important to note that what is fair will not necessarily be equal. Begin the succession early
In some cases it will not be appropriate or possible but consideration should be given to involving the “successors” in the business early. This enables you to easily impart your knowledge and experience while giving them time to understand the business before taking control. Another benefit from early involvement is the different skills and perspectives that the younger generation will bring.
Be prepared to adapt
The hardest part will be creating a plan. The challenge is to ensure that the plan remains effective and does not become outdated – you need to be prepared to adapt your plans. This is particularly important in the family context where changes are inevitable be it through new additions to the family, relationships, children moving overseas or death. An outdated and ineffective plan may cause as many difficulties as no plan at all. Seek Advice Early
It is hoped that the above has provoked thought and will encourage action, however I want to highlight the importance of seeking advice from your professional advisors early in the process. They will be crucial in putting any plan into action and will be able to advise you on what may be possible as well as the advantages or disadvantages of a proposed plan. Throughout the whole process remember the key to success is careful, well informed consideration of all the issues, and effective and early communication between the parties and your professional advisers.
Edward Bostock is a Partner at Bramwell Grossman Lawyers in Hastings. To contact Edward, email edward@bglegal.co.nz
PRO
Property
Residential House Values are on the Up By Paul Harvey | Williams’ Harvey Registered Valuers
As I write this article there are officially 89 days to go until the end of the year, and even less by the time The Profit hits the press. So far confidence in our local residential property market for 2016 appears to have grown experientially with days to sell reducing and median prices rising. The latest real estate data from REINZ revealed the median house price (MSP) in Hawke’s Bay rose $45,000, to $320,000 last month, compared to August 2015, with prices rising 21% in Napier, 20% in Hastings and 5% per in Dannevirke. Compared to July this year the median price rose $10,000 with prices rising 7% in Hastings, 5% in Dannevirke and 2% in Napier. Sales volumes in Hawke’s Bay rose by 7% compared to July, with sales rising 30% in Hastings and 21% in Hawke’s Bay Country, but falling across the rest of the region. Compared to August 2015 sales volumes rose 2%, with sales rising 127% in Dannevirke, 30% in Hastings and 21% in Hawke’s Bay Country. The median days to sell for Hawke’s Bay improved by two days compared to July, from 31 days in July to 29 days in August. The number of days to sell improved by 14 days compared to August 2015. Therefore, as we head into Summer, Christmas and the New Year, a time that is typically associated with high levels of transactions, will this confidence continue and with it property values? I thought it would be interesting to see how Hawke’s Bay as a region compares with other property markets in terms of house values and growth. August is the most current data recorded for 2016. See table (right) of the MSP’s from around the country broken down by region as compared to August 2015. Williams’ Harvey is a member of ValGroup which is a network of independent valuation and property consultancy practices throughout New Zealand. ValGroup membership allows us to have access to nationwide property knowledge, as well as an information sharing network and referral systems that allow us to service our clients with the best professional property advice.
Recently we attended our annual ValGroup conference and it was interesting to hear that the feedback from offices in the regions was similar to our own market trend in terms of both confidence and increasing values and that much of this growth had come about in the last 12 months. Most confirmed that vendors are enjoying the benefits of a market that continues to experience declining levels of stock for sale, therefore driving up house prices. Bryan Thomson of REINZ commented that “Demand remains strong across the Hawke’s Bay region with first home buyers and investors active in the market. The supply of properties for sale remains restricted with less than 12 weeks supply available.” All the regions appear to be benefitting from the “spillover effect” with buyers looking further afield than the three main metropolitan areas being Auckland, Wellington and Christchurch to find better bang for their property buck. So as a region, Hawke’s Bay is faring well being about half way in the line-up nationally. However, we believe there is still plenty of potential for growth left in our region. Essentially this opinion is based on
affordability. Our MSP of $320,000 still sits well below the national MSP at $492,000, however the region presents far superior lifestyle options than most others. With continued low interest rates and strong net migration I do not see the residential market losing any pace in the near future.
Paul Harvey is the Director of Williams’ Harvey Registered Valuers. He has a diverse and broad knowledge of the HB property market. To contact Paul, email: paulharvey@williamsharvey.co.nz NOVEMBER - JANUARY 2017
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Protecting business secrets from cyber threats By Suzie Clifford | Associate BDO Central (NI)
A company was busily preparing its tender document for a major project – unaware spying eyes from a foreign country were watching through a cyber-security infiltration of their network. Leon Fouche, BDO’s leader in cyber-security, says this does not only happen in movies. This is a real cyber threat and is happening to New Zealand companies. “We have been involved in cyber intrusion investigations similar to this. In one of these investigations, our client was going through a large merger and acquisition process when we alerted them that a foreign state had been in their network for a number of months before they became aware of it.” The company was able to clean the intruder – which had been looking for information to advantage its own tender – out of the network.
two kinds of companies in the world – those who have experienced a data breach and those who don’t know they’ve already been breached. “What’s alarming to me is that it is a big problem, but so many companies just accept it as a fact of life and don’t do much about it. Yet a cyber breach can not only damage a business – it can close it. Business is about trust, and if you lose the trust of your customers because your data and their privacy has been breached, it can be fatal.” Fouche says many are lulled into a false sense of security because they don’t think their line of business is a target for one of the four main kinds of hackers – activists making a political or social point; cyber-criminals for whom money is the motivation; state-sponsored hackers seeking a political or commercial edge; and those who use disgruntled employees or human error to gain access to a company’s network and data.
Local BDO partner Matt Coulter says it’s not only large multinational companies that are at risk. He cited two recent examples to prove that any New Zealand entity is susceptible to these Internet security company Netsafe, in its 2015 attacks. “In July 2016, Fairfax Media reported report, estimated cyber-crime as totalling between that Hunting and Fishing’s website had been $250m and $400m annually. New Zealand law targeted by hackers who were seeking customer does not require companies to report cyber-crime, information. As a result their website was so many don’t. Few admit to a breach that could shutdown including all online trading activity. As damage their brand, business and customer trust. of the end of September, they were still offline as Netsafe reported 8,570 cyber attacks in New they have been unable to guarantee the security of Zealand last year, costing $13.4m – with the customer details, including payment information. biggest attack costing the target just over $2m. At the other end of the scale, a small Wairarapa But that only covers known breaches. Netsafe business was the target of a crypto-ransomware estimate that’s only about 4 per cent of all attack, where the hacker attempts to encrypt valuable files and demand a ransom in return for cyber-crime. Vehicle Graphics decrypting them.” Fouche has a long list of cyber-security Building / Shop Fronts credentials, including establishing and running One of the best defences against cryptoransomware attacks is ensuring your staff are a cyber-security programme forFootpath the Australian Signs Government’s hosting of the G20 summit in vigilant when receiving unsolicited emails with 2014. He says about cyber-crime: “There are only suspicious attachments. This is the most common The potential disaster was contained, but this and other forms of cyber-crime are already costing New Zealand millions of dollars.
method of infiltrating a business and antivirus software won’t always keep pace with the latest methods used by the hackers. An employee who opens a suspicious attachment can unknowingly release one of these viruses into the company’s network. BDO had a specific incidence of this, where one of our clients had exactly that happen to them. Luckily BDO’s in house IT specialist was able to recover their data with minimal disruption to the business. A potentially destructive event became nothing more than a minor headache. This was largely due to the ongoing relationship we have with the client and the backup processes that we had previously implemented for them in case of this type of event occurring. Coulter says the threat is now at the point where cyber insurance is just as important as building, general liability or professional indemnity insurance. Equally important is the implementation of robust backup procedures, appropriate malware and antivirus protection and keeping network infrastructure up to date. As noted above, staff are an important line of defence and password strength is also key to this. The more complex the password, including upper and lowercase letters, numbers and symbols, the more exponentially difficult it becomes for a hacker to crack. Written in conjunction with Leon Fouche – National Leader of Cyber Security, Brisbane. Suzie Clifford is an Associate with BDO Central (NI). She has extensive experience assisting both small and medium sized entities with a wide range of advisory services. BDO Central are Chartered Accountants and Business Advisors, with offices in Napier and Palmerston North. BDO is able to support clients with a comprehensive suite of accounting, information systems and HR services. The firm is an independent member of BDO New Zealand and part of the global BDO network. www.bdo.nz
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Cedric Knowles is a director of KNOWLedge Accountants, Hawke’s Bay. He has worked as an accountant in the Bay since 1987. Contact Cedric by email: cedric. knowles@knowles.net.nz
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