INSPIRING BUSINESS IN HAWKE'S BAY
MAY - AUGUST 2017
THE
WAIROA SET TO ROCK
TREATY DEAL
Treaty group’s clear vision
EXPORT AWARDS
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SIR GRAEME AVERY
A vision for healthy living
EURO CITY
New home for luxury cars
Here for Hawke’s Bay
Anna LORCK For Tukituki
www.annalorck.co.nz
Stuart NASH
MP for Napier www.stuartnash.co.nz
Authorised by Anna Lorck 10 Donnelly Street, Havelock North
CONTENTS
INSPIRING BUSINESS IN HAWKE'S BAY
MAY - AUGUST 2017
THE
WAIROA SET TO ROCK
RELIABLE BROADBAND IS WORKING
PRO FEATURES
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Maungaharuru-TangitŪ Trust has clear vision
Wairoa steps into the spotlight A big move for Andrew Smid A wild ride for Zach and Ratima Young mechanic shop owner staying put Will Wairoa railway re-open? HB Export Awards launched Success for meat casing company HB Primary Sector Award winners
GET MOVING. TALK TO THE HAWKE’S BAY SPARK BUSINESS HUB TO FIND OUT IF WIRELESS BROADBAND IS AVAILABLE IN YOUR AREA. 0800 482 422
TREATY DEAL
Treaty group’s clear vision
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EXPORT AWARDS
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SIR GRAEME AVERY
A vision for healthy living
EURO CITY
New home for luxury cars
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EDITORIAL
Where are we all going to live? The region is stuck at a crossroads. We are in an economic boom period, which doesn’t look like it will abate soon, but we all know that booms don’t last forever. We’re attracting Aucklanders in their droves who, since they’re selling up in Auckland, have pockets lined with cash and are outbidding locals. Our councils are opening new facilities and amenities, such as the Napier Conference Centre and a popular playground at Havelock’s village domain, that make Hawke’s Bay an incredibly desirable place to live. But we’re fast running out of housing; for some, they think it’s only occurring at the high end of the market where people can’t find a four-bedroom house, with a pool and a garage for the boat, but it’s actually hitting the low end of the market as well. We’ve all seen the stories about people who are forced to live in motels and sadly, some in cars. There’s a massive housing shortage, both to buy and to rent. I’ve heard stories of 40 people trying to get a rental and when one family leaves a house, the rent gets whacked up significantly. It seems the solution is to release, via the Heretaunga Plains Urban Development Strategy (HPUDS), more land for development with Howard Street, Lyndhurst, Brookvale and Iona available in Hastings District and in Napier, Parklands, Park Island, Te Awa, Riverbend Road, South Pirimai and Mission Estate.
HPUDS was brought in by the Hastings, Napier and HBRC in 2010 as a long-term strategy, until 2045, for an integrated approach for residential, commercial and industrial land development and infrastructure management in Napier and Hastings. It’s now under a fiveyear review and new projections have surfaced. These include more people (16,455 by 2045, which is double the first projection), more households, reduced occupancy and, not surprisingly, more people aged over 65 years. I’m sure you can read between the lines of this … There are many players on both sides of the fence in the property and land-use game – developers, councils, real estate agents, trades, architects, lawyers, farmers, horticulturists, the list goes on and on. What I’m unsure of is how do we get everyone into the same camp to fix a housing problem that’s never been seen before? There’s obviously got to be some give and take from both sides but there also has to be innovative thinking. In a recent HB Today feature, I was struck by what I would call the more objective viewpoint of the HB Chamber of Commerce and local architects Pierre du Toit and Graham Linwood. The chamber said we need to go up (apartments) rather than out and have more people living in the inner city and this was supported by Pierre and Graham.
Pierre said we had to get over ourselves and stop measuring our success by the size of our property, and that there are many benefits in following Europe’s footsteps and developing the empty spaces in the CBD. He said: "… absolutely the solution is to build up. They should ring fence the city and not move an inch beyond it because there is heaps of land in the city.” Graham went a step further saying HB's expanding urban sprawl is unsustainable and local government needed to step in now. With an ever-transforming retail scene, we also can no longer rely on local retailers to be the stable influence in a CBD. We need to look at ensuring the centre of our cities remains the vibrant and that must include more inner-city living. I’m no expert on HPUDS but check out the column by Roger Wiffin of new planning firm Stradegy on page 34. Also in this issue, Sophie Price and I visited Wairoa to see how our northern-most town and district is faring. We were pleasantly surprised that Wairoa is strong and in fact, it is about to blast off. We met some young locals that are keen to put Wairoa on the global entertainment map, a young mechanic that bought the business he learnt his trade and a very positive Wairoa mayor Craig Little. The feature starts on page 14. damon@theprofit.co.nz
EDITOR/PUBLISHER: Damon Harvey 06 878 3196, 021 2886 772, damon@theprofit.co.nz, Twitter – @profithb
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PRO HB
Key Appointments Two new directors have been appointed to the Board of Unison Networks, by the Hawke’s Bay Power Consumers’ Trust. Rob Wheater has formal qualifications in Finance and experience as an Executive Director with Schneider Electric Global. His responsibilities have extended beyond financial roles to include broad exposure to the electrical industry both in NZ and internationally. The second appointment is Christine Spring, another experienced director and with qualification and experience as a Civil Engineer. Her current governance responsibilities are with Holmes Consulting Ltd and Auckland International Airport.
Roger Coleman has been appointed to the role of Chief Executive Officer for Hawke’s Bay YMCA. “Roger has some amazing skills, experience and local knowledge to bring to the role based on his previous leadership positions at Sport Hawke’s Bay, Pettigrew Green Arena and Hawke’s Bay Opera House,” said YMCA Board President, Rosie Marriott. The YMCA is a registered charity affiliated to the international movement of the same name. The Hawke’s Bay Board has a new three-year strategic plan and are investing significantly in local infrastructure to enable them to continue developing and empowering the next generation across the Bay.
Ben Gilmour has been appointed as a director of business advisory firm, Moore Stephens Markhams Hawkes Bay Ltd. Ben is a Chartered Accountant who has a strong background and expertise in farming and acts as advisor for most of the firm’s rural clients. He is also the firm’s resident Xero farming partner, expert in online rural accounting software, Figured, and has worked with the Figured team to help promote the software programme to the rural community around the country.
Education worth multi-millions to Bay Educating youngsters from across the world is worth $29 million a year to Hawke’s Bay. A lot of the success the region is having at attracting international students comes down to “selling” the benefits of the Bay to international education agents and journalists specialising in education. Two journalists from Brazil visited in Hawke’s Bay in March to writing articles for their respective mastheads: Huffington Post and Exame.com.
Earlier in the year, Woodford House and Napier Boys High School hosted Chinese education agents charged with finding suitable options for Chinese parents wanting a New Zealand education for their children. Education Hawke's Bay International Business Development Advisor Steph Kennard, who works from Hastings District Council, say the choices parents made were about lifestyle as well as education.
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“They know the education is excellent; what they want to know is what sort of an environment their child will be living in; things like pastoral care, safety, and outside of school activities.” And it is big business. In the 2015/16 financial year there were 1268 international students in Hawke’s Bay. They each paid an average $26,856 for their tuition and living costs, bringing $29.3m into the local economy. The industry employed 134 people directly and a further 78 indirectly.
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Profit The new Village Green in Havelock North The Napier Conference Centre Apple pioneer John Paynter Coffee shop at the Red Bridge
Major Airport intersection upgrade A major safety upgrade of what is regarded by New Zealand Transport Agency as "one of the North Island's highest risk intersections" has begun. The Meeanee Quay/Watchman Rd intersection with SH2 just south of Hawke's Bay Airport is set for a major revamp which is expected to take about 14 months to complete by Higgins Construction. The $13 million project will see a range of improvements to both the intersection, which has a poor safety record, and Watchman Rd which presently runs to the southern end of the airport.
Work will see the construction of a roundabout at the intersection, widening and strengthening of Watchman Rd, and the construction of a new entrance to Hawke's Bay Airport. The project is being jointly funded from the National Land Transport Fund, Hawke's Bay Airport and Napier City Council and is part of a $25 million package of road access improvements to Napier Port. The intersection is presently among the top 10 high-risk intersections in New Zealand.
Winter F.A.W.C events confirmed Winter F.A.W.C! kicks off on June 9 and runs through to July 9. Winter F.A.W.C! has been extended in 2017 to cater for visiting rugby fans from the UK. There will be five weekends of Winter F.A.W.C! F.A.W.C! database members will have special pre-sale access to buy tickets on Monday 1 May with tickets for the general public available from Tuesday 2 May 2017 at 9am via the F.A.W.C! website www.fawc.co.nz. This Winter Series marks the fifth winter F.A.W.C! event and with sixty-four events it is the largest Winter F.A.W.C! to date.This year we welcome Peter Gordon for the first time. London-based chef and restaurateur Peter Gordon, is one of New Zealand’s best-loved culinary exports and we are delighted he will join us at F.A.W.C! this year. Peter is cooking at two events the weekend of 16/17 June – “Fine Wine and Dine with Air New Zealand” and Peter Gordon and at “Savour with Peter Gordon at Sileni Estate”.
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Loss Housing (& lack of it) in Hawke’s Bay The big autumn wet Lake Tutira Roadworks on Napier Road
Events range from $20 to $275 in price and include everything from cooking classes, to dinners in private homes, truffle hunts, serious wine tastings and several events themed around rugby! Hawke’s Bay Tourism General Manager and F.A.W.C! organiser Annie Dundas said the organisation is excited to be celebrating F.A.W.C!’s fifth winter birthday, “The line-up of events for Winter is our best yet. Having Peter Gordon join us is truly fantastic and once again we are amazed by the creativity that Hawke’s Bay’s food and wine folk come up with in their event planning”. F.A.W.C! is organised by Hawke’s Bay Tourism and sponsored by Forsyth Barr, Electrolux, NZ Sotheby’s International, Air New Zealand, Hawke’s Bay BMW, the Hastings District Council and the Napier City Council.
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MAY - AUGUST 2017
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Q&A Q&A
Sir Graeme Avery Vision and passion drive a Knight to new ambitions
Sir Graeme Avery and wife Gabby moved to Hawke’s Bay in 1999. He had already become established as an international business leader in medical publishing. Upon arrival in the Bay Sir Graeme built a vineyard in the Bridge Pa Triangle, which has gone from producing 2000 cases to now over 700,000 cases. Sir Graeme established the home of high performance sport in Auckland in 1982 and is now set on creating a similar centre in Hawke’s Bay that aims to tackle our high obesity statistics as well as nurture the region’s sporting talent. The Profit caught up with a very busy Sir Graeme. 6
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What’s your business career background? (in brief)
My business career has involved creation of two start-up international companies. From 1963 to 1996 I established a world leading international medical publishing business Adis International with operations in 10 countries of the world. From the start of it's international establishment in 1970, Adis pioneered the evaluation of scientific data on prescription pharmaceuticals converting the information into knowledge and wisdom-based publications in print and digital formats. From late 1997, I set up the green fields vineyard and winery international business Sileni Estates in Hawkes Bay and later Marlborough. From a production of 2,000 cases in vintage 1998, it has grown to over 700,000 cases annually with it's brands distributed in 83 global markets.
PRO
Q&A
career
What concerns you about our region?
My sports background as a competitor was essentially at secondary school in athletics and first 15 rugby at Hutt Valley High School from 1954 to 1958. Provincial athletics and a few seasons of club rugby in Wellington and first grade rugby in Sydney in 1963 followed before the business interests with Adis in late 1963 became all consuming.
Lack of a single, cohesive vision for the region to enable it to maximise it's full economic potential. Associated smaller and more parochial local area thinking tends to prevail.
What’s your background?
sport
I began my sports administration and coaching career in athletics in 1960 in Lower Hutt, which continued in Auckland from 1974 with club, regional and later national organisation involvement. International athletic meeting promotion began in 1984 through 1998. From 1982 onwards, I have been involved in founding and the fundraising to build today's $85 mill AUT Millennium Institute of Sport & Health on Auckland's North Shore - now the National High Performance Training Centre and home to local sports clubs and National Sports Organisations, along with serving over 600,000 user visits annually in it's wide-ranging community health and wellbeing programmes. Why did you and your family move to HB?
To be closer to the engine room of the Sileni business at the winery. My wife Gaby and I relocated to the Bay mid-1999 and have become fervent regionalists ever since. What does HB offer that’s difference from elsewhere?
A wonderful climate and simplicity of a rural, outdoors-oriented lifestyle. The fresh, local produce and superb range of individually unique cafes and restaurants, plus lifestyle shops, with ease of access and local sophistication that Aucklanders' marvel at when they visit. A very 'giving' community too. Great schools and full range of arts/cultural and sports activities make it a special place to bring up a young family. EIT extending the excellence into tertiary education.
What do you see as synergies between business and sport?
Today, business needs new and innovative thinking to succeed. The intense desire to be the best a business can be in its field. The exact same principles apply in high performance sport through a process of innovation and continuous small improvements. Synergies are innovation and team work in a relentless drive to be world class and world leading. What can they learn from each other?
Setting short and longer-term high achieving goals and getting there through great leadership, involvement and continuous development of the skills of all staff/team members. How do we ensure our younger generations continue to participate in sport?
By telling the individual that they have talent and then providing a long-term development pathway and support structure embracing family and friends, education, life and sports performance support. Health is an outcome of being active? What can we do better to improve the health and wellbeing of our community?
Inspiring a whole population to adopt a healthy lifestyle for enhanced health, education and socio-economic attainment.
wellbeing in our communities, we need to reduce the prevalence rates of obesity and physical inactivity by starting at the latest in pre-schools and primary schools with education on healthy eating, cooking and food shopping and a programme of physical activity each day at school. You’ve been very successful in business and also on large scale community projects – what has been your approach?
To set a visionary direction for a new future. A project or new product or new market to be established with very high goals. First establish a leadership group. Then inspire individuals on how it can be achieved through hard work and a step-by-step process of focusing on the ingredients for success. Everyone in the team striving to be the best they can be. Continual progress made by achieving milestones of on-going success. You are creating a range of health/ wellbeing programmes at the Sport Park – what will you see as measures of success of these in years to come?
The prevalence rates for obesity and physical inactivity in childhood, adolescent and adult age reduced by 50 to 75 percent over current levels in 10 to 20 years time. With the costs of obesity and its complications estimated at between $60 mill to $180 mill per annum in Hawke’s Bay, a significant saving to the healthcare system will result - assuming a current cost of $100 mill p.a., a saving of some $0.5 bill to 0.75 bill over first 10 years and $1.0 bill to $1.5 bill over 20 years. How do you keep active?
I was a fitness fanatic in my younger days, but now as a youthfully mature geriatric, I rely on a brisk walk of around 30 minutes or more each day.
Ideally, by starting with young mothers at the start of a pregnancy and providing education on healthy eating and active exercise through antenatal classes, the newborn infant to pre-school and primary school. International research clearly shows that to improve health and
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A long term vision sets Treaty Settlement group at forefront of quadruple bottomline
Photo courtesy Richard Brimer
Feature
WRITER: Damon Harvey
Shayne Walker
Late last year, at an Icehouse business event, I was given an insight into how a local business and Māori are collaborating for the future. The Taylor family owns Elwood Road Holdings Limited, which is establishing the Tomoana Food Hub in Elwood Road, Hastings. It had recently sold a 25 percent shareholding in the Food Hub to one of the region’s first HapŪ entities, MaungaharuruTangitŪ Trust (MTT), to receive a Crown Treaty Settlement. Stewart Taylor explained how the deal with MTT had come about and what it had taught him about the HapŪ’s long-term vision, which didn’t look out a decade but instead 1,000 years. Stewart admitted that his family business had never considered looking that far out but when sitting down and working out if a partnership with MTT would prosper, they were told that instead of looking at a 10 to 50-year plan, they would look at 100, 400 and 1,000 years. This may be bewildering for many business owners, especially small businesses owners, but as Maungaharuru-TangitŪ Trust Kaiwhakahaere Matua (general manager) Shayne Walker puts it: “We talk about our grandchildren’s grandchildren and what we want to put in place for them. “We can all trace our whakapapa back many generations, we are part of an evolving story,
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but in 65 generations’ time, what does that mean and what have we done to ensure a prosperous future for others yet to come?” In May 2014, the HapŪ received $25 million from the Crown as part of its treaty settlement, becoming one of the first HapŪ in the Bay to reach a settlement. There was never any doubt that the group was not going to squander the money or assets. Maungaharuru-TangitŪ Trust was established to hold, manage and administer the settlement for the benefit of its members (currently 5,900). Part of the trust’s role is to foster and promote amongst members of the HapŪ: • spiritual values, unity, support and cooperation; • recognition of traditional customs and values; and • physical, social and economic well-being and advancement. It set up an investment company, Maungaharuru-TangitŪ Limited, and appointed three directors: Dr Andrew West, chair and independent director; Tony Gray, independent director; and Tom Manaena, who is an MTT appointee. Their role is to provide advice to the MTT board in growing the investments and manage the assets under a robust investment framework. The Tomoana Food Hub investment is one of the group’s first forays into a business partnership.
MTT is an active shareholder, with the trust represented by Tom Manaena on the Tomoana Food Hub board, and they would like to see food innovation as part of the Food Hub as well as creating job opportunities for HapŪ members. “We would like to create an Innovation Food Park, similar to that of Waikato Innovation Park and the FoodBowl in Auckland. We hope to see some good tenants who bring good employment opportunities to the Bay. Ultimately, if we can be an enabler to develop and progress local Hawke’s Bay businesses, that will be great.” It’s from MTT’s office in Ahuriri that Shayne says they can look out over the traditional area of the HapŪ and make sound decisions for the benefit of their members. “We can sit in our boardroom and talk about our taonga, about our purpose, right out the window, its fabulous. And for our partners, when they come in we can explain this is what we represent and it resonates with what we are aiming to achieve.
Lead negotiators Kaumātua Bevan Taylor and Tania Hopmans sign the Deed of Settlement at Tangoio Marae, while Ministers and Kuia look on.
PRO
Feature
Caption goes here
MILESTONES FOR MTT “This is to act in the best interests of the members on such matters as social, cultural, environmental and financial and to advance and protect the interests of our people. “There is a responsibility and when it comes to business, generally the purpose or the function of the business is about financial return to its shareholders. For us, we are running a quadruple bottom line of financial, social, cultural and environmental aspects, all of which are equally important. Our reality is that we are also a political institution.” Shayne is well equipped for the role as general manager of MTT. The former Te Aute College student was brought up in Wairoa and worked at the local freezing works from the age of 17. “We would like to create an Innovation Food Park, similar to that of Waikato Innovation Park and the FoodBowl in Auckland. We hope to see some good tenants who bring good employment opportunities to the Bay." – Shayne Walker After six years at the works, an OE and a rugby stint in Europe, Shayne worked for nine years in Corrections Department New Zealand, managing operations and designing strategy, before taking a role with Hawke’s Bay District Health Board (HBDHB), where he managed the Māori Health Strategy.
While at the HBDHB, Shayne completed his Masters in Business from Massey University. He’s now been with MTT for over two years. To add to his CV, Shayne is the co-chair of the Matariki Regional Economic Strategy (REDS). He shares the role with Napier City Council chief executive Wayne Jack. Shayne is also a trustee and director for Te Awahohonu Forest Trust, represents Ngāti Kahungunu on the Department of Corrections Iwi Governance Board and recently joined the Hastings District Council Māori Joint Committee. A challenge he looks forward to in his role as trustee of Wharerangi Marae is “the rebuild of our Whare Tipuna”. Shayne is passionate about ensuring that the people and the once bountiful area of Maungaharuru to TangitŪ prosper again, reciting the HapŪ’s proverb: Ka tuwhera a Maungaharuru, ka kati a TangitŪ, When the season of Maungaharuru opens, the season of TangitŪ closes, Ka tuwhera a TangitŪ, ka kati a Maungaharuru. When the season of TangitŪ opens, the season of Maungaharuru closes. “That depicts hundreds of years ago how the HapŪ lived, so that they could sustain themselves within their own environment. The HapŪ of Maungaharuru to TangitŪ could survive between the mountain, bush, rivers, lakes and coastline and that’s quite unique.”
Facilitated 42 Rangatahi to get their learner driver's license – 98% success rate
Delivered specific Te Reo Māori programmes
Rangatahi leadership development programme Gifted four reserves to the people of Aotearoa New Zealand Invested in a project to improve Lake TŪtira Purchased 25 percent ownership of Tomoana Food Hub
ABOUT MAUNGAHARURU TANGITU The HapŪ of Maungaharuru (the mountain) to TangitŪ (the sea) are MarangatŪhetaua (also known as Ngāti TŪ), Ngāti Whakaari, Ngāi Tauira, Ngāti Kurumõkihi, Ngāi Te Ruruku ki Tangoio and Ngāi Tahu. Our marae is Tangoio Marae and our Kõhanga Reo is Punanga Te Wao. Our HapŪ are represented by the MaungaharuruTangitŪ Trust. Our takiwā (traditional area) is located in northern Te Matau-a-Māui (Hawke’s Bay). Our takiwā encompasses Keteketerau (the former outlet of Te Whanganui-ā-Orotu) in the south to the Waitaha River in the north, and from the Maungaharuru Range in the west to the coast and beyond to TangitŪ (the sea) in the east. MAY - AUGUST 2017
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Above: Lake TŪtira Left: Maungaharuru-TangitŪ Trust and Taylor Whānau partnership (left to right): Shayne Walker, Charmaine Butler, Cathy Spooner, Stewart Taylor, Logan Taylor, (seated) Tom Manaena, Trevor Taylor.
As part of the Crown’s land confiscation policy, the HapŪ went from being kaitiaki of 200,000 hectares to just 3 hectares, so getting nearly 6,000 hectares is seen as a start. Following the settlement signing, MTT also received from the Crown commercial properties Opouahi Station (2,550 hectares), which is leased to Landcorp Farming Limited, as well as 3,300 hectares of Esk Forest land, which is leased to Pan Pac Forest Products Ltd. After signing the settlement agreement, they also gifted back to New Zealand four reserve conservation areas – Boundary Stream Scenic Reserve, Bellbird Bush Scenic Reserve, the balance of Opouahi Scenic Reserve in the Maungaharuru Range as well as the coastal Whakaari Landing Place Reserve. “The settlement quantum is not as large as it should have been but the whole point of the treaty settlements is to resolve that to a point. The settlement packages are nowhere near the level of compensation justified but if you were to do that then the country would be bankrupt. So in a way, Māori are
saying they are prepared to settle at this value so we can all move forward and make the most of it. “The appropriate recognition as a treaty partner is that we can start working with central and local government and the community to advance the interests of our HapŪ collectively.” Shayne says they have some big issues to deal with, one of which is the deterioration of Lake TŪtira, which they regard as a spiritual healing area that was once abundant with kai (food). Accordingly, the physical and spiritual wellbeing of the HapŪ is closely linked to the well-being of the lake. MTT is partnering with the Hawke’s Bay Regional Council (HBRC) with the intent of improving the lake. The Ministry for the Environment is contributing $400,000 while MTT and HBRC are investing $240,000, with MTT leading the project. “The lake has reached a tipping point. I think it was always going to happen because all of the nutrients coming down, the legacy nutrients in the bottom of the lake, and
because the inlet and outlet are at the same end of the lake, so it doesn’t have good flow. “Everybody is up for the challenge of its restoration, including farmers, and it’s not about blaming anybody. It’s a significant issue and one that we all need to collaborate on.” “The appropriate recognition as a treaty partner is that we can start working with central and local government and the community to advance the interests of our HapŪ collectively.” – Shayne Walker
It’s no secret Māori will become an economic powerhouse throughout New Zealand via treaty settlements and Māori business and MTT has ambitions to be at the forefront of success, which will be measured not only in the growth of the investment but also by improving the well-being of all its members. www.tangoio.maori.nz
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Driving success in the Bay
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Feature
The doors are open and engines are revving at Euro City’s new luxury car dealership in Napier. WRITER: Sarah Thornton
Terry Elmsly
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For Euro City owner Terry Elmsly, the dealership is the culmination of three years of planning and a year of construction of the Prebensen Drive development, and signifies a new chapter in his business. Home to the motoring world’s coveted brands of Audi, Volkswagen and Skoda, Euro City’s architecturally designed building fronts the 9,000 m2 site, spanning the land around Ford Road and housing a selection of retailers including Complete Paints, Lollipups doggy day care and food retailer MYLK. The new dealership features a state-of-theart showroom for each of the vehicle brands, a dedicated parts and service department, plenty of car parking and an extensive range of used vehicles across all car manufacturers on display in the large outdoor space. “Over the past 14 years I have built up a successful business but I needed room for future growth, which our previous premises in Carlyle Street could not provide,” says Terry. “Demand for European vehicles is increasing, as is the growing demand by customers to have the complete package with us – somewhere they can buy their vehicle, finance it and have it maintained through regular servicing. “There has also been a global mandate that every dealership representing Audi, VW and Skoda must comply with new Corporate Identity requirements, which means having light, generous display space and the latest technology to showcase the vehicles. Most car franchises are looking for growth worldwide so you’ve got to keep up and advance your business. It’s a development like this one in Prebensen Drive that is boosting the economy and lifting the game in Hawke’s Bay, as well as attracting the attention of other motor vehicle dealers across the country.” The development has expanded Terry’s business interests outside of vehicles and finance to now include large-scale commercial property investment. He was keen to attract to the Prebensen Drive site retailers and businesses who would bring different energy to the site and who would complement Euro City. “It wasn’t hard to find like-minded retailers and commercial businesses to join us. I think the difference between this business and a lot of other car dealerships is that the Audi, Skoda and Volkswagen brands expose you to a lot of high-profile businesses. That factor, along with my large network of contacts built up over the years, meant space was quickly filled.” Terry often refers to his “very strong and capable team” across all parts of the business as being instrumental in the success of Euro City.
The new home of Euro City
Recently general manager Dwayne Bewley won Audi Sales Manager of the Year at the Audi Excellence Awards in Auckland. It’s another feather in Euro City’s cap and proof the business is focused on its customers. “To be acknowledged by Audi as having the most satisfied customers in the country is a real achievement and testament to the commitment of our team. “Our priority is to provide more service and choice to our clientele. The new dealership ensures we remain competitive as we can offer a far more comprehensive range of both new and second-hand vehicles. Our service department also has the space it needs, again to satisfy the growing demand. I’m lucky I’ve got fantastic people behind me who work incredibly hard,” says Terry. While Terry is involved in the property business and also Euro City’s finance company, he still enjoys being on the yard as it keeps him connected with his customers. It’s this natural rapport with people that has been an important element in Terry’s success, in a career that started when he sold his first car at age 15. “I lived in Auckland and in the weekends worked for an uncle who had a car yard. I started selling cars in my teens and haven’t stopped – it’s the only thing I know how to do!” In 1992, Terry moved from Auckland to Hawke’s Bay to take up the sales manager role at Bay Ford. Two years later, he bought into the business and in 2004, sold his interest and opened Euro City. While his business may have moved from selling Fords to Audis and Volkswagens, Terry admits to still having a passion for V8s that hasn’t dwindled since he was a teenager. “I spent many years driving Fords, XR8s and GT Falcons mostly. Now I drive Audi RS6, RS7, R8 and SQ7s. They’re more refined but still have serious grunt. I’m lucky, I get to drive what are essentially supercars in the car world.”
“Our priority is to provide more service and choice to our clientele. The new dealership ensures we remain competitive as we can offer a far more comprehensive range of both new and second-hand vehicles.” – Terry Elmsly Audi’s new A9 coupé is scheduled for delivery in two years’ time. “I’m really excited about the A9 – it’s a big coupé with a supercharged engine. Also on the release schedule is the new Audi Q8, a luxurious high-end V8 SUV, and shortly we will take delivery of the new Skoda Kodiaq seven-seat SUV. Skoda is really meeting the market and is well priced, which makes it an incredibly popular car brand with Kiwis,” says Terry. Terry says perception is changing around the affordability of European cars, evidenced by the huge number on the road. “We sell cars that five or ten years ago were maybe perceived as being unaffordable but I think we’ve turned that perception on its head. There are thousands of these cars being driven now and the market is more accepting of that. Add to that the competitive finance we can offer and the attention by manufacturers and distributors to make these brands accessible to everyday Kiwis, and they are now within most people’s reach.” Terry says seeing the new dealership open for business is immensely satisfying. “It was always my vision to be able to provide a high-quality place to do business and to provide a complete service for our customers.” While the cars may have got more powerful and luxurious, what remains the same is that after more than three decades in the business, Terry still loves selling cars. www.eurocity.co.nz MAY - AUGUST 2017
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THE LIGHT IS SHINING
And Wairoa’s open for Business WRITER: Damon Harvey
Zach Stark and Ratima Hauraki in front of the Wairoa Lighthouse
Before you leave, make sure you’ve turned the light off. That could easily have been the catch call for Wairoa, which according to Statistics New Zealand has suffered from a population decline in recent times. The 2013 census painted a picture that the population had dropped by 591 people, or seven percent from 2006 to 7,890 people. In fact, some may say the light was already turned off; the light they refer to being the town’s lighthouse on the edge of the Wairoa River and across the road from Wairoa’s main drag. Today the lighthouse light is beaming brightly and the coppertopped tower signals a desire by many locals to lead the district back into prosperity. Two locals who are at the forefront of changing the mood of the district are second-term Mayor Craig Little and his economic development and engagement manager Kitea Tipuna.
Wairoa Mayor Craig Little
“Symbolically the lighthouse is very important for Wairoa. I grew up here and I used to go to the lighthouse when I was a little kid and now that the light has been officially turned back on, it’s become a beacon for people who had left Wairoa, like me, to return home,” says Kitea. Like its lighthouse, Wairoa is determined to shine brightly. If the mayor has anything to do with it, Wairoa will not only be a vibrant provincial town but be the Cape Canaveral of the Southern Hemisphere. More on that later … You can’t underestimate the underdog nature of a small district of 8,000 people, many of whom said a big NO to amalgamating with its big brothers Hastings and Napier, saying “we’re better on our own”.
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Set to iroa Rock “I’M A FARMER FROM UP IN THE HILLS AND I WASN’T HAPPY WITH THE WAY THIS TOWN WAS GOING, WE WEREN’T IN A GOOD PLACE. I FIRSTLY BECAME A COUNCILLOR WHO STOOD ALONG WITH THREE OR FOUR ON A VOTE FOR CHANGE AND THAT’S WHAT WE’VE DONE. WE’VE STUCK TO OUR GUNS.” – CRAIG LITTLE Rocket Lab, Mahia
Back in 2015, when amalgamation was being fought out, Wairoa proved itself to be a kingmaker. With the likes of Craig Little and other anti-amalgamation crusaders, many of them young, they banded together to say a resounding no, at 87.68 percent. Craig was beating the drum that Wairoa could turn the tide on a declining population, high unemployment and an ageing population. “I’m a farmer from up in the hills and I wasn’t happy with the way this town was going, we weren’t in a good place. I firstly became a councillor who stood along with three or four on a vote for change and that’s what we’ve done. We’ve stuck to our guns. “The way Wairoa was, amalgamation could have been the right answer if the district continued to perform poorly, but because we could see through it, we wanted to be masters of our own destiny. Our community was ready for change and it just needed its leadership to pick up the mantle.”
Craig’s gusto has been backed up by a council-commissioned report by economic research, analysis and consultancy firm BERL, which was aimed to prove Statistics New Zealand and others wrong. The BERL report also found that the district’s economic prospects, which are likely to have a significant bearing on the size of the population, are relatively bright and that the economy turned a corner in 2013 with the number of full-time equivalent workers increasing by eight percent between 2013 and 2015. It also noted that if the district’s newest business, New Zealand rocket company Rocket Lab, which has set up a launching pad in Mahia, fulfils its potential it will have a significant impact on the local economy and the district’s population. “Rocket Lab provides an exciting opportunity to grow and diversify Wairoa’s economy,” the report says.
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MAY - AUGUST 2017
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Key Figures: Te Wairoa
From this modelling, which is based on a scenario of between 52 and 120 launches per year (after 5 years), Sapere estimated that Rocket Lab could contribute between $600– $1,550 million of value-add to New Zealand over 20 years, of which direct, indirect and induced effects could amount to between $400–$1,150 million. Craig says that the district came close to being outbid by Christchurch, the home city of Rocket Lab founder Peter Beck, but a speedy resource consent paved the way.
POPULATION (2015)
8,180
4,033
4,147
MALE
FEMALE
SCHOOLS
17
Although tourists won’t be able to get up close to watch rockets blasting off, the council has plans for a large screen, which they hope will attract tourists. “The biggest thing with Rocket Lab is that it’s such a big international business, it has put us on the international stage. We had a tourism expert visit us recently who said you have to have a point of difference and we have that now with Rocket Lab. “While we love our Lake Waikaremoana and Mahia’s beaches, every district has something similar, but Rocket Lab is something completely different.
EDUCATION
88.1
960
He would also rather see the strategy utilising the rail network from Napier to Gisborne, via Wairoa, being utilised for tourism opportunities, not transporting logs to Napier Port. “I’ve always said we will have to consider any opportunities to use the railway line but the best spin-off between Napier and Gisborne would be a cycleway, which would attract a range of boutique businesses opening up. It would be huge, just like down south (Otago Central Rail Trail) where the tourism cycleway has been a huge success. “If the rail line is used for moving logs then the train will only come up in the weekends 16
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5,943
73% OF TOTAL POPULATION
MEAN HOUSEHOLD INCOME (2015)
EMPLOYMENT RATE
FOR 2015
(2013 CENSUS)
%
MEAN WEEKLY RENT
$174
38.9 %
MEAN HOUSE VALUE
$143,500 (FOR 2015)
ATTAINED NCEA LEVEL 2 IN 2015
AGE DISTRIBUTION 65+ 16.7%
0 – 14 25.2%
25 - 64 46%
15 - 24 12%
QUALIFICATIONS (AGED 15 YEARS AND OVER)
68.9 % 6.1 %
WITH A FORMAL QUALIFICATION
HELD A BACHELOR'S DEGREE OR HIGHER (2013 CENSUS)
GDP PER CAPITA
$33,37 1
GDP ECONOMIC GROWTH ESTIMATE MARCH 2015
“Our biggest challenge with tourism is that we know we are currently behind the eight ball and you can’t expect people to come and invest [in tourism activities] until they can see what’s happening.” The council is currently developing a new economic strategy for council and Craig says that a rocket launching pad may be the new kid on the block, but it’s the primary industry sector that remains the backbone.
WORKING AGE POPULATION (15–64)
$44,530
Craig hopes to see jobs for locals created by the success of Rocket Lab and already three jobs have been advertised, but he believes tourism will be a huge money spinner. “For us, we can see the tourism spin-offs.”
BUSINESSES (2015)
Source: 2015 Ministry of Business Innovation and Employment
Another report, an Economic Impact Assessment by Sapere Research Group Ltd, modelled the expected economic benefits to New Zealand from the development of a rocket launch industry.
Information correct as at June 2016. www.greatthingsgrowhere.co.nz GTGHinfo_KTW0616
because they haven’t got the wagons or the rolling stock and the train drivers wouldn’t even be based here. So it’s a bit of a negative thing for us, we’re not going to get anything out of it. For me, it’s fix the road up. If there’s going to be more trucks on the road then let’s create more passing lanes and things like that,” Craig says. Shayne Walker is Wairoa born and proud. Shayne’s first job out of school at the age of 17 was at the local freezing works. He’s now the Kaiwhakahaere Mātua, general manager of Maungaharuru-TangitŪ Trust, which is based in Ahuriri, Napier. Shayne says there’s untapped potential in Wairoa, due to its isolation and extensive natural resources as well as its local talent.
“WAIROA, BECAUSE OF ITS ISOLATION, HAS HAD TO GET INNOVATIVE ABOUT ITS BUSINESS OPPORTUNITIES. YOU’VE GOT THE OPPORTUNITY TO LIVE IN WAIROA BUT DELIVER YOUR BUSINESS ELSEWHERE, NATIONALLY OR GLOBALLY." – SHAYNE WALKER
Wairoa
“Wairoa is in a better place because as a society, we understand more and know how to get more value out of things such as our natural resources, and at the same time make sure we do that in balance and harmony with our taonga, that’s why there’s an opportunity.
It included the assets of the Wharerata and Patunamu forests, a number of Department of Conservation sites, and a social and economic revitalization strategy in partnership with government agencies.
“We now know more and have a clearer sight for what customers are looking for, which is a quality experience, be that a tourism, cultural or food and beverage experience.”
Shayne says tourism is an obvious opportunity and it has always been underdeveloped but with the likes of Lake Waikaremoana, Mahia, Morere and now Rocket Lab, it could take off if the district focussed on a strong brand.
He says Wairoa has one of the largest undeveloped Maori land ownerships in the country, a lot of it being fertile land. He points to 120 hectares of apples planted on Maori land recently and adds there’s likely to be more plantings, some which would be organically grown.
“Wairoa, because of its isolation, has had to get innovative about its business opportunities. You’ve got the opportunity to live in Wairoa but deliver your business elsewhere, nationally or globally. “We’ve got an opportunity for better branding for Wairoa and some conversations have started about this.
Last year the Crown signed a $100 million Treaty of Waitangi settlement with Te Tira Whakaemi o Te Wairoa, which provides for a stronger cultural and economic future.
“Wairoa is a very unique place in the world and I feel privileged to come from there.
The settlement is the fifth-largest ever in financial terms and covers seven cluster groups of iwi and hapu in northern Hawke's Bay, southern Gisborne, the town of Wairoa, Lake Waikaremoana and the Mahia Peninsula.
“The capability of Wairoa people is fantastic, we’ve got the ocean, the river (which is one of the best in New Zealand for rowing), the lake and plenty of water. “It’s a cool town.” www.wairoadc.govt.nz
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 MAY - AUGUST 2017
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Wairoa gamble pays off From the big smoke to the wide-open spaces of Wairoa. WRITER: Sophie Price
Andrew Smids
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Empowering Business in the Central Region
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“WE HAVE PROBABLY HALVED OUR INCOMES BUT THE FACT IS WE ARE ABLE TO AFFORD A LOVELY LITTLE LIFESTYLE PROPERTY AND THE LOVELY COUNTRY LIFE THAT GOES WITH IT.” – ANDREW SMIDS
Beyond his yearning to leave the city, another catalyst for the move was so Andrew could get on to the property ladder. “The move out of Auckland was to enable me to make that change, make sure I could cover the capital costs of the mortgage. I didn’t want a million-dollar mortgage hanging around my neck and even though it has been a tough transition, it has been a good one.” It has worked out well for the couple, especially for Andrew who is a true outdoors man. He loves the fact that Mahia is 15 minutes down the road, where he can golf, dive and ride. “It is a great little playground for me when I am not working.” Also, he is now more self-sufficient than he has ever had the opportunity to be. Their property boasts an orchard, organic vegetable garden, steers and a kunekune pig. But the change has come with its own challenges. “We have probably halved our incomes but the fact is we are able to afford a lovely little lifestyle property and the lovely country life that goes with it,” says Andrew. Despite the drawdown on income, he says they are better off in Wairoa.
When looking for a change away from the hustle and bustle of the big city, Wairoa may not be the first regional town people think of, but for Andrew Smids it was a gamble that so far has paid off in spades.
“Anyone who has been in Auckland has seen it change dramatically with the population increase, traffic congestion, infrastructure issues and house prices. I think you get to a point in your life where you want to live a simpler, quieter life.
Since landing a job with Sport Hawke’s Bay, Andrew has been in the district for the past 10 months, having swapped traffic congestion and crowds for tranquility and a two-acre lifestyle block in Morere, 30 minutes out of the northern Hawke’s Bay town of Wairoa, and he is loving it.
“The original thinking was we wanted to leave Auckland and we were looking at either Northland or Gisborne,” he says.
“It hasn’t been an easy change obviously. You probably couldn’t go to a further place from Auckland than to Wairoa,” he says. For Andrew, the move out of New Zealand’s biggest city had been on the cards for some years. Originally from Wellington, Andrew travelled the world playing rugby and as a member of the New Zealand bobsledding team before returning to Auckland, where he spent the past 16 years living and working as a personal trainer to lawyers, stockbrokers and politicians. However, at 52 years of age, he and his partner Lisa Scurrah decided they wanted out of the rat race.
It was then that the job at Sport Hawke’s Bay came up and so Andrew threw his hat in the ring. After a couple of interviews, the organisation saw him as a good fit for the role and he took it. “I saw the potential of it. I then had to go back to my partner in Auckland and have a serious discussion at that stage,” he says. So the couple sat down and looked for property in and around the town. They found a lifestyle block in Morere, nestled between Wairoa and Gisborne, and they quickly saw this as their little slice of paradise. It held potential for both of them as Lisa, a print and media veteran, found work at the Nuhaka store, just five minutes from their home.
“For me it was more about nature and lifestyle that have always been the driving factors. I love to tramp and I love to swim in the ocean and the mountains and the rivers and the lake – this is my playground.” Now that he is in Wairoa, Andrew wants to use his position as the fitness centre team leader to make a difference. He says that while it is unfortunate that the town’s history has tainted its reputation, there are good people there who are working hard to make a difference. This is something he wants to be a part of. “Why I accepted the job is because I feel I can make a difference because I am a firm believer that health and fitness is a lifestyle choice. And here is a chance with this facility to give the local people an asset that they can really use and it can make a difference.” While this move has worked in his favour, Andrew says he finds it difficult to recommend it to other people “because I don’t know what others want, but if it is what you want then go for it. I am hearing more and more success stories of people moving to the regions and making it work but you have to be brave and take a gamble.” MAY - AUGUST 2017
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UNLIKELY PARTNERSHIP HAS A UNIQUE RHYTHM TWO YOUNG MEN ARE CHANGING THE WAIROA LANDSCAPE BUT NOT IN THE WAY YOU MIGHT THINK. THEY ARE USING THEIR WORDS, LAYING DOWN A BACKING TRACK AND TELLING THE COUNTRY TOWN’S STORY.
WRITER: SOPHIE PRICE
What started out as a hip-hop collaboration between American Zach Stark and local boy Ratima Hauraki has become so much more, with potential business opportunities that won’t take a rocket to show people where Wairoa is on a map. The two met when Ratima, whose life had led him in many directions, found his way home to Wairoa. The one constant for him was his music so when he returned, his whanau told him about a recording studio that had opened up at the town’s Gaiety Theatre. “I said, ‘they would have nowhere to put it in the Gaiety Theatre, there are no rooms for it’. But they were adamant there was one in town,” he says. So, Ratima tracked down Zach and what he found was not so much a ’studio’ as a pakeha with a laptop and a microphone in a room. “We bumped heads and a week later we had laid down a song. We have been going for about a year now,” Ratima says. Despite having quite a different background to Ratima, Zach’s life has also led him in many directions. The freelance sound 20
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engineer has lived and worked all over the world, but it was an old cinema – the Gaiety Theatre – that brought him to Wairoa. Zach designed a 9.3 surround sound system for the theatre, the only one of its kind in New Zealand, and seeing that the establishment needed a manager and as his partner loved the area, they decided to stick around. And the collaboration that launched 5,000 likes and promising business ventures the music video Know Me Now by Rugged and Wylde, also known as Ratima and Zach, if nothing else, it showed both of them just how much can be accomplished with relatively little. Once set up in his ’studio’, Zach says that with a little self-learning from a few videos and what plug-ins and add-ons are now available online, “you can sound pretty topnotch. The big studios get you the last 10 percent but we get 90 percent of the way without much difficulty, if you have the time and patience to learn and really do the hard work.” It was then he realised that this could be bigger than one or two songs from Rugged and Wylde.
“Our bigger goal is to work as a region first to get people here on board,” he said. He used the example of Hollywood, how people don’t go there for Sony or Universal of MGM. “You go there because it is Hollywood and Los Angeles and movies. The whole region is promoted so it doesn’t rise and fall on one group.” – Zach Stark “Our bigger goal is to work as a region first to get people here on board,” he said. He used the example of Hollywood, how people don’t go there for Sony or Universal of MGM. “You go there because it is Hollywood and Los Angeles and movies. The whole region is promoted so it doesn’t rise and fall on one group.” This is their view for the Ikaroa-Rawhiti region, and not just for hip-hop but for all genres of music. “I would rather see the industry get bigger collaboratively, otherwise everybody walls off and nobody gets anywhere; there are so
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Set to iroa Rock Left and opposite page: American Zach Stark and Wairoa local Ratima Hauraki use music to put the district on the map.
to get started. We are happy to record people and teach them at the same time so they can take the skills with them.” Ratima and Zach’s vision is one that is long term. Through a planned multimedia hub, the duo plan to work on more than just music. This has thrown up other opportunities that – “depending on what the market dictates” – comprise a five-year plan. One proposed opportunity that sounds promising is working with the world’s movie industry. Zach explains that a lot of movies run out of funds during their post-production phase and he sees this as a prime opportunity where students can step into small suites in Wairoa and with their editing skills cost-effectively fix this problem. It is something he did when he worked in Hong Kong and it worked quite well. many talented people here and that shouldn’t happen,” Zach says. And so, with a little help from Zach’s family, the young entrepreneur went and bought the former Clyde Hotel, located along the town’s main road. He hopes to lure the big stars down to Wairoa with more than just his laptop, so they can record without the distractions big city life can bring. The family are busy restoring the old building. Having already fitted out an apartment, they are now working on recording studios, not only to draw the big names in but so they can contribute to their region-wide vision. “Ratima is going to try and start recording people if I am busy at the theatre,” says Zach. “We are trying to find funds now that will pay Ratima a wage and then we will give a heavily reduced rate for people who want
“The movie gets finished and the students walk away with a real film credit and potentially get a piece of the pie if it ever goes to market, a small royalty perhaps.” He says what makes his and Ratima’s vision appealing is that there are very little overheads, whether it is in recording a song or editing a movie. “These are industries where we don’t have to pollute rivers, we don’t have to destroy mountain sides and we don’t need a lot of space,” he says. “There are such talented people here who just don’t have the connections, or maybe even the confidence, which is what we want to try and help with.” To watch Rugged and Wylde’s music videos 111 and Low Life, go to YouTube and type in Rugged and Wylde.
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Young mechanic driving his own destiny in Wairoa
WRITER: SOPHIE PRICE
Jake Whyte is a 26-yearold mechanic working in the heart of Wairoa. Not feeling the pull of the bright city lights that many people his age do, Jake bought the business that trained him and gave him a reason to continue to call the northern Hawke’s Bay town home, something that suits him just fine.
“I hate big cities,” he says. “I even cringe at going to Napier. I try and avoid the big cities unless you know something is going on.” And with all the work he has on at present, avoiding the crush of crowds is something he can do for the foreseeable future. Jake bought Crossroads Service Centre in November 2015. At that stage, he had worked for the business for almost a decade after what began as an after-school job led to an apprenticeship. “I have been working here for 10 years and Gareth, the boss man, decided he wanted to finally sell up. I was ready for a change, I almost moved to do a heavy diesel apprenticeship but then this place came up for sale. “So I went out and talked to the old man and asked, ‘well, what do you reckon?’. I was ready for a change so I thought bugger it, I will give it a go.” It was a good business decision for the young man. The service centre on Paul Street has been a fixture on the Wairoa business scene for more than 25 years, so Jake had secured an established business that was already well known around the district.
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“It has always been a busy workshop but since I took over it has been even busier with everything else that is involved [in being a business owner],” he says. “We go from fixing old ladies’ wheelbarrows to brand new vehicles to forklifts and tractors and all sorts of stuff, which keeps it interesting.” There is a lot of work on, it just doesn’t stop. But it’s all good, I enjoy it.”
“I have been working here for 10 years and Gareth, the boss man, decided he wanted to finally sell up. I was ready for a change, I almost moved to do a heavy diesel apprenticeship but then this place came up for sale.” – Jake Whyte
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Even the tyranny of distance that small country towns are often victim to doesn’t seem to put Jake off. “We do struggle with [getting vehicle] parts as we are sort of in the middle of nowhere so we struggle with that sort of thing at times,” says Jake. “Couriers are pretty good. We get a day run out of Napier every day and if they haven’t got it, well, they haven’t got it and it is sort of overnight. We don’t have any big burdens, it operates like a workshop anywhere else.” So what are the downsides to owning a business in small town New Zealand? According to Jake, pretty much the same as anywhere else in New Zealand. “There are obviously the hard aspects to it but that is just normal business type things I guess. The big one would be getting people to pay their accounts I suppose but that happens everywhere. “Also, my main mechanic handed in his notice so I am sort of in the lurch there. I am struggling to find someone else big time. Apart from that, everything ticks along pretty smoothly.”
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This makes Jake an anomaly in Wairoa, with the biggest enemy to the district’s economic development being slow population growth as the younger generations leave to seek their fortunes elsewhere. However, that just wasn’t on the cards for the young businessman. “I just love it here. All my family are here, all my mates are here, I just really enjoy it. And in a small town everyone knows everyone, everyone seems to get along, nothing is ever a huge drama. I am just a local boy I guess, I haven’t been off the North Island yet.” With the number of vehicles parked in his workshop, it doesn’t appear he will be getting off the island, or out of the district, anytime soon.
When asked why he thought more people his age didn’t hang around in Wairoa after school, Jake cited a lack of work.
Jake Whyte
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“There is the freezing works, they keep a fair chunk of people employed. But for a younger person, unless you are like me with a good decent job or opportunity, there is not a whole lot here.”
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Is the Napier-Wairoa rail line on track?
WRITER: SOPHIE PRICE
WRITER: Sophie Price
With the opening of the Napier– Wairoa rail line drawing closer, not everyone is on board with the idea. Announced last year, the joint Hawke’s Bay Regional Council – KiwiRail commercial venture will see Napier Port run a dedicated log service from Wairoa to the port twice daily on Saturdays and Sundays. While no firm date has been attached to the reopening of the line (just later this year), both companies are continuing to work together throughout the consultation process. At the time of the October 2016 announcement, KiwiRail chief executive Peter Reidy said the return of commercial rail services in the region was a very pleasing development. “This is a real boost to business growth in the region and KiwiRail is delighted to be able to support that,” he said. Peter’s words were echoed by Napier Port CEO Garth Cowie, who confirmed the port is a critical gateway for the central North Island and ensuring that the right transport links are in place is a crucial factor in moving East Coast export products to world markets. While no real progress update has been forthcoming from either party, Peter says KiwiRail considers the reopening of the
Napier–Wairoa rail link will boost business growth in the region, enhancing transport options for the region’s log exporters. Wairoa Mayor Craig Little says the line is “a bit of a negative” thing for his district as it would only be used on weekends and because Wairoa would not house the trains there, not even a driver would be housed in the town. “So it’s a bit of a negative thing for us, we’re not going to get anything out of it,” he says. “For me, it’s fix the road up. If there’s going to be more trucks on the road then let’s create more passing lanes and things like that.” Likewise Pan Pac Forest Products does not see any benefit in the line. As one of the region’s largest employers, which trucks anywhere between 700,000 and 800,000 tonnes of wood from the northern part of the region annually, its managing director Doug Ducker offers three reasons why the reopening of the link offers the business little to no benefit. Firstly, he says, it is not economically viable on the grounds that there is no rail siding at Pan Pac. So instead of trucks transporting logs from the Wairoa District directly to the company at Whirinaki, logs would have to be
trucked from the plantations to the station in Wairoa, transported down to the port, where they would then be offloaded and trucked to Pan Pac. According to Doug, while the company has got road access north and south it has no viable rail in the vicinity, as such there would need to be multiple transactions of logs on and off vehicles, which leads to time elapsing. “These are all negatives to the management of our business.”
“There is a tremendous amount of forest up there that is privately owned. The risk of this option being exercised is that the return for those forest owners may well be less than they would have had if the rail didn’t exist, because we would have the better roading and better delivery speeds.” – Doug Ducker, Pan Pac
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Wa
Set to iroa Rock
IMAGE HERE
A second reason offered by Doug is that if this limited part of the rail system is reactivated, he believes there will be a deferral of road works. “The roading system can continue to benefit from future capital being injected that is for the benefit of not only log transport but other transport of both a commercial nature and of a personal nature,” he says, citing the Napier–Taupo road as an example of this. Finally, if the line goes ahead, Doug argues it will reduce the competitiveness of those forest owners to optimise the value of their wood. “There is a tremendous amount of forest up there that is privately owned. The risk of this option being exercised is that the return for those forest owners may well be less than they would have had if the rail didn’t exist, because we would have the better roading and better delivery speeds.” These comments are in stark contrast to those from Forest Management NZ Ltd (FMNZ), which manages the 11,000 hectares of Roger Dickie forest in the greater Wairoa area.
At the time of last year’s announcement, joint CEO Steve Bell said his company was in support of the Napier–Wairoa rail link reopening since its closure in 2012. “With significant harvest volumes coming on stream, the rail link will provide both FMNZ as managers and the forest owners with greater options while strengthening links direct to the port,” Steve says. Whatever the outcome of the consultation between KiwiRail and the Napier Port, it seems regional ratepayers will be footing the bill, at least in the short term. According to the Hawke’s Bay Regional Council (HBRC), in addition to the $5 million plus upfront costs, the line itself won’t be financially viable until sometime into the next decade, with the break-even volume on the Wairoa line – 185,000 tonnes per annum – to be achieved no earlier than 2020. KiwiRail confirmed this. “Once agreed, the costs will be borne by the Napier Port,” says Peter. “This will ultimately be reflected in the log exporters’ charges for using the service.”
Peter wouldn’t be pushed further on the contract between the two companies, saying it was confidential and commercially sensitive. “As such, KiwiRail is unable to confirm the exact details.” However, the council was more forthcoming with this information in one of its Regional Transport Committee agendas. HBRC’s transport manager Anne Redgrave noted that the contract between the two companies can be terminated with three months’ notice. “Or immediately if excessive [and/or] unexpected track maintenance or reinstatement costs make continuing uneconomic.” If it does go ahead and is found not to be financially viable, Craig Little has another idea to link his town with the south. “The best spin-off between Napier and Gisborne would be to have a cycleway, which would attract a range of boutique businesses to open up along that corridor,” he says. “It would be huge, just like down south where the tourism cycleways have been a huge success.”
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Hawke’s Bay Exporter Award win provides platform for success Last year's winner David Trubridge
What Hawke’s Bay export business will follow in the footsteps of Designer and contemporary maker of furniture David Trubridge Design Studio and be awarded the ASB Exporter of the Year? Nominations are now open for the third edition of the awards which have two new categories added – Napier Port Industry Trail Blazer Award and NZL ContainerCo Emerging Exporter Award. These two new awards join other categories Tomoana Food Hub Innovation in Export Award, Marsh Insurance Most Sustainable in Business. The winners of the innovation, Trail Blazer and Most Sustainable in Business go on to contest the supreme award of the ASB Exporter of the Year. ExportNZ Hawke’s Bay Executive Officer Amanda Liddle says entries are open until June 9 and businesses from Gisborne to Waipukurau can enter. The winners will be announced at the Awards Gala Dinner in the Napier Conference Centre on Wednesday 28 June. The first two years were sold out. Entries are open to all exporters in the region, which runs from Gisborne
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to Waipukurau and businesses will be visited by experienced judges ExportNZ Hawke's Bay Chairman Alasdair MacLeod, ASB Head of International Trade Mike Atkins, Amanda Martin and new judge Wayne Norrie, Chairman of the Hi Tech Trust and Chairman of Online Republic. Sponsor and Judge Mike Atkins says the benefits of entering and potentially winning an export category award are far reaching. “By entering the awards businesses can boost staff morale by being actively involved in the awards process. It also provides an opportunity to undertake a health check to confirm strategic direction, reflect on achievements, evaluate sales and marketing and core business processes. “And if you win it will increase the businesses profile and recognition across communities, both public and industry and provides an opportunity to build network and collaboration partners through the process,” Mike says. David Trubridge entered the awards as a way of measuring how his business measured up alongside other local export companies,
and if they won, which they did, to use as a marketing tool. “I have always been proud that we can run an international company from Whakatu,” he said. “We joke about having our tagline as Milan, New York, Whakatu... but I do think it is important to promote this message that you can do this kind of thing without being in Auckland, let alone the middle of Europe.” Amanda says the awards are now regarded as one of the premier events on the local business calendar. “Exporting is a big and growing part of business in Hawke’s Bay and is crucial to the local economy, so we’re delighted we can again celebrate the best we have to offer. “Hawke’s Bay companies produce around 9 percent of New Zealand’s port exports worth more than $4.4 billion a year, and it’s great to be able to recognise those achievements. “The awards attract entries from our top companies as well as companies that sit under the radar, and I expect this year to be no exception. The first two awards evenings sold out early, so we have moved to a bigger venue”.
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Export
AWARD CATEGORIES Marsh Insurance Most Sustainable in Export Award The purpose of the Most Sustainable in Export Award is to select the Hawke's Bay exporter who can demonstrate sustainability in all aspects of their business. The winner of this award will demonstrate an outstanding approach which is financially, socially and environmentally sustainable in their business. NZL, ContainerCo, Emerging Exporter Award The NZL ContainerCo Emerging Exporter of the Year award celebrates companies which have made the most remarkable leap forward in start-up exporting. The award is not sector specific, and the company will have been exporting for less than 3 consecutive years, however it must be generating a turnover of over $100 000 p/a.
Napier Port Industry Trail Blazer Award The purpose of the Napier Port Industry Trail Blazer Award is to select a Hawke's Bay Exporter who is ahead of their game, who stands head and shoulders above the rest – not necessarily with other exporters within the region but within their sector. This category allows companies to showcase why they think they are at the forefront of their industry.
Alasdair MacLeod ExportNZ HB chairman
Amanda Martin NZTE customer director
Show us how you are a hero in the region, a trailblazer in your sector, and a business worth celebrating!
Mike Atkins ASB
Wayne Norrie High Tech Trust
ASB Exporter of the Year Award The winner of this award will be one of the winners from the previous 3 categories (excluding Emerging Exporter Award) and will have demonstrated sustained and outstanding performance and results in terms of: • Export earnings, growth and profit • Leadership and direction • Excellence in marketing • Export strategy and business planning • Commitment to quality management • Governance
Top tips from the judging panel The judging team of Alasdair McLeod, Amanda Martin, Mike Atkins, Wayne Norrie and have provided some tips to what they will be looking out for from entrants.
• An ability to articulate their story with real clarity and purpose • How well you know and understand your customers and how translates into your value proposition • Competition – how well you Tomoana Food Hub understand the competitive landscape you operate within Innovation in Export • How to make money and how clear Award you are about where the value lies in The Tomoana Food Hub Innovation in the business Export award recognises a Hawke's Bay Key Dates • Governance and external expertise – business displaying outstanding innovation June 9 Entries Close how open and how internationally you in exporting. Innovation means coming look at the business June 12-21 Judges visit businesses up with a product/ pathway/ positioning/ • Evidence of fast learn or fast fail promotion or pricing approach that is novel June 22 Finalists Announced • A clear and controlled strategy; and in the way in which it has been applied in the how can this be easily articulated business. The business must show how this June 28 Winners announced at • Awareness and of the big issues Awards Gala Dinner innovation allows it to capture more money, (data, technology, robotics/A.I.) that market share or to continue a sustainable are set to transform the way business position. operates in coming years/decades. • If you have future proofed your To enter go to www.hawkesbay.exportnz.org.nz business
Tomoana Food Hub proudly sponsors the Innovation in Export Award Grow your business at Tomoana Food Hub www.tomoanafoodhub.co.nz
“Thinking inside the box”
Ph: 0508 732 873 www.containerco.co.nz MAY - AUGUST 2017
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In three short years, New Zealand Casings Company (NZCC) has established itself as the premium sheep casing processing business in New Zealand. WRITER: Sarah Thornton
Luke Kavanagh
Established by industry stalwarts Luke Kavanagh and Ron Robbie in 2014, NZCC processes 300 kilometres of casings every day, destined for sausage manufacturers and specialty butchers around the world. It’s a business that adds value to the broader lamb industry in New Zealand. Changes to regulations in New Zealand around unprocessed, raw casings (or ‘green-runners’ as they’re known) that had seen exports to China banned meant Ron and Luke needed to move away from producing casings that could only be traded as a by-product commodity. “In New Zealand at the time there was no processing at all, casings were purely traded raw goods. We saw the opportunity that by cleaning and processing the casings we could get better returns. We believed that if we put expertise back into the industry, we 28
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could attract more customers, which would increase returns. And with our 100 percent natural grass-fed Halal casings, that has proven to be the case,” says Luke. NZCC currently has 40 staff working in its Whakatu plant. Production is quick and efficient but takes expert handling to ensure the integrity of the casing is maintained. “Green-runners arrive from slaughter houses every day and the first part of the cleaning process is fermentation, using only water and salt. The casing then gets processed and is cured overnight, making it shelf stable in that state. Casings come in many different thicknesses and lengths, depending on what customers ask for. Our processing has to be rigorous in terms of controls to produce a product that is totally natural, with no chemical or artificial additives,” he says. NZCC supplies mainly export customers, with around 95 percent of its casings going |
“Our future export plans include the United States, which we are currently scoping out with the help of NZ Trade and Enterprise. Our goal is to take this product out of the commodity scene and find more end users and ship it factory to factory.” – Luke Kavanagh offshore. The eating habits of Kiwis mean high-quality sheep casings are not as in demand in this country as they are overseas. “Kiwis eat bigger sausages, usually cooked on a barbecue, the majority of which have artificial collagen casings. Natural sheep casings are more suited to traditional breakfast sausages, which are predominately
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Feature
consumed by Europeans. Japan is also a really big market for us, along with Turkey, France, Korea, Singapore, Southeast Asia, Europe and Australia.” Luke says the uptake by specialist butchers and boutique smallgoods producers in New Zealand for the product is increasing however. “Provenance is an important part of the New Zealand meat story and also for its by-products. More and more people want to know where their food comes from and our processes mean we are able to trace our casings right through to a particular animal. “Many specialty butchers and smallgoods producers are making really high-quality product. And with the casing being such a significant cost in the production of a sausage – usually 30 to 40 percent of its total – you’re not going to compromise. A natural lamb casing has a thin texture so cooks well on a high heat. They don’t burst so the juices are contained but are porous enough to absorb the smoke. Plus, they ‘snap’ when you bite into them – it’s a great cooking and eating experience. “Although it’s more expensive to produce casings here than in China, the gap’s getting closer and our international customers are enjoying dealing with a company that receives, processes and ships from New Zealand.” As for the future, NZCC is in expansion mode. “Our future export plans include the United States, which we are currently scoping out with the help of NZ Trade and Enterprise. Our goal is to take this product out of the commodity scene and find more end users and ship it factory to factory. We have the skills and the raw material to do that. And being a small company, we have the flexibility to be responsive to demand and to changes in packaging and volume.” Recently NZCC extended a contract with one of Japan’s largest sausage manufacturer, and signed a new deal with Singapore Airlines to supply its sausage manufacturer with casings. “For us, it was unbelievable opportunity. It’s not a market we considered getting in to, but the opportunity came up. We are now keen to explore supplying other airlines.” Luke and Ron are happy to be living and working in the Bay. “With the port, a continuous raw material supply and the perfect location for this type of industry, Hawke’s Bay is the perfect place to do business. Our customers love visiting our plant due to its location. Hawke’s Bay also has a great climate and a strong history as a sheep farming region. The wine is excellent, too.” www.nzcasings.co.nz
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Silver Fern Farms HB Farmer of the Year of the year Paul and Marie Renton
Hastings District Council HB Primary sector industry leader John and Janice Paynter
Lawson Robinson HB A&P Scholarship Amy Hoogenboom Pan Pac – HB Farm Forester Award Greg and Rachel Hart
Celebrating Hawke's Bay Primary Sector Excellence Over 400 people came out in style for the Napier Port Hawke’s Bay Primary Sector Awards hosted by the Hawke’s Bay A&P Society at the showgrounds. The society's president Richard Chambers said recognising and celebrating primary sector excellence has reached a new level in Hawke’s Bay. “These awards celebrate our past, present and future leaders. They are working incredibly hard, they are all dedicated to their different sectors and they are all making a real difference in helping make our region successful.” “Hawke’s Bay’s primary sector is a phenomenal success story, it has grown through diversity and innovation and is the backbone of our economy supporting industry, business and growing jobs”. Fifth generation Hastings farmers Paul & Marie Renton, Glenmore, won the region's ultimate farming trophy, the Silver Fern Farms Hawke’s Bay Farmer of the Year. Awards committee chairman Peter Tod said the Rentons demonstrated real strengths in their business as it has evolved over the last 10 years. They farm 310ha, and according to judges, exhibited a "real passion" for their industry, with a vision well beyond the farm gate. The words pioneer, visionary, innovator and entrepreneur are used freely to describe this year’s humble but worthy recipient of the 30
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Bayleys HB Primary Sector Professional of the year award Ian Walker
Hastings District Council Primary Sector Leader Award for 2017- John Paynter. Credited with the planting of over 1400ha of fruit trees across the plains, from a young age John was always going to leave his mark on horticulture in New Zealand and the landscape of Hawke’s Bay Along with the Paynter’s export business Johnny Appleseed Group, his company’s Yummy brand leads the New Zealand domestic market. Today the family business, produces more than a million cartons of fruit and employs over 500 people at the peak of the season and 350 fulltime throughout the year. Greg and Rachel Hart, Mangarara Station came away with the Pan Pac Hawke’s Bay Farm Forester of the Year Award. The judges commenting that Greg and Rachel have a vision which includes extensive plantings of natives and varying other species. They are fully committed to creating a regenerative agricultural farming system and have an innovative approach to stock management and marketing. Fourth year Massey University student Amy Hoogenboom, who is studying a Bachelor of Veterinary Science has been awarded the Lawson Robinson Hawke’s Bay A&P Scholarship. Not coming from a farming family, Amy’s passion for the primary sector developed through the Future Beef New Zealand program, when she decided to focus more closely on a career as a production animal veterinarian.
Recipient Laurie Dowling Memorial Award
In a departure from tradition this year’s winner of the Laurie Dowling Memorial Award for Outstanding Contribution to Agriculture is a group and not an individual. The judges felt no one individual could be singled out in this organisation so presented it to all the volunteers, crew and staff who ensure the continuing existence and success of the Hawke’s Bay Rescue Helicopter Trust. This dedicated rescue helicopter service was established in 1984 and each year it flies more than 300 missions across the region helping those who need urgent medical care and transportation, many of them farmers and people living and working in rural communities. With 32 years as a consultant, farmer and practicing vet, this year’s Bayleys Hawke’s Bay Primary Sector Professional of the Year winner was Ian Walker, of Central Hawke’s Bay. “Ian is extremely well regarded amongst his peers and fellow industry experts both locally and nationally and has made an outstanding contribution through his knowledge, skill and application to improving the performance of primary sector businesses in Hawke’s Bay and beyond. “It was pleasing to see such a high caliber and depth of entries across all competitions within these awards. It shows the strength of the primary sector in Hawke’s Bay, and future leadership and innovation will continue to drive our economy,” said Peter.
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Advisory Services What’s important about Due Recruitment & HR Business Administration Diligence on land investments Recent events around the world have served as very timely reminders to us of how volatile the world actually is. A simple scan of any worthwhile newspaper on any given day highlights the variable and increasingly unpredictable nature of so many things that affect our lives. Here in New Zealand we are constantly reminded of the importance of currency and commodity markets, further afield the intrigue that surrounds aspects of governance in some of the globes more influential economies is truly unprecedented in contemporary societies. All these things have the potential to affect our quality of life now and in the future. Many people are reviewing their investment strategies seeking to buffer portfolios against excessive volatility induced risk. To many, the lure of investment in land has significant appeal. Productive land is a very tangible investment that is always (and it seems increasingly so) in demand. Even though buying land can be counter intuitive given the yield frequently seems underwhelming compared to its value, we are seeing strong demand for quality productive land. The smart operators are finding ways to improve the yield and reduce volatility. How do smart investors reduce their risk? Essentially the answer is simple. They conduct due diligence (DD). Would you buy a house or commercial investment without a building report? No, you wouldn’t and if you are geared your bankers would
or perhaps should insist on it. Why should www.ruraldirections.co.nz Due Diligence not be standard practice for
due diligence
investment in land. For the smart operators, it is.
noun
Implicit in the tangibility of productive land is the notion that it is hands on – it requires management. There are multiple potential risks that need to be understood for both buyers and sellers. Perhaps the most topical at present is the whole regulatory risk space. Ever since the National government pushed the National Policy Statement(NPS) for freshwater out the Beehives door in 2011 the game has changed for our land based industries. Land owners now face the inevitable prospect of some form of regulatory obligation that may have potential impacts on the productive potential of land. Both buyers and sellers need to be aware of this potential burdon on the type of systems that can be run on any piece of land within a regulatory constraint and how this will affect values. This requires a full system analysis from soils and stock to management and operational systems. Within these systems will be hidden potentials that smart investors getting relevant advice will unlock. Knowing a farms potential before the deal is done is the strongest position you can negotiate from. As with most things the best decisions are made by those who have the best information. The smart investors are those who seek the best information.
If you are considering investments in land you need to be informed. Rural Directions have the specialist skills, experience and empathy to help you make the right decision. Smart Due Diligence on land investments gives your business team the best chance to help you achieve your goals.
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 Certified Senior Land Management Advisors have a wealth of knowledge in Farm Environmental Management Planning, Nutrient Budgeting, Land Use Project Planning, Soil and Herbage Testing and Analysing and Soil Mapping. To contact the advisory team email us at advisory@ruraldirections.co.nz
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A comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evalute its commercial potential.
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Finance
Retirement Age & KiwiSaver The need to plan for moving goal posts. By Tobias Taylor | Spicers Portfolio Management
On March 6, Prime Minister Bill English announced that he will seek a mandate at the general election for superannuation changes which will affect every New Zealander born on or after July 1, 1972. In a major policy shift, English would like to raise the retirement age from 65 to 67 by 2040. The higher age of eligibility will be legislated for next year, but English has conceded that the age could stay at 65 if that is the bottom line of potential coalition partners after the September election. In another major policy change, that would apply as soon as the law was changed, immigrants will have to live in New Zealand for twice as long – 20 years – to get access to NZ Super, including five years after they turn 50. Despite how the above pans out over the next year or so, one thing is for sure. The cost of providing government superannuation and its place in people’s retirement plans is again coming to the fore. What is here today, may not be here tomorrow and the need for people to take ownership of their own financial future becomes paramount. Hopefully, from my perspective, this will create real discussions around the dinner table about the need to plan for retirement, whatever the age. AMP Financial Services Managing Director Blair Vernon says the debate around the age of eligibility for New Zealand Superannuation is the tip of the retirement savings iceberg and we have to go further. “All the data we see says we can’t rely solely on the government to fund our retirement, regardless of the age of eligibility. The question people need to ask themselves is ‘how much savings will I have by the time I want to retire and will it be enough to fund the things I aspire to be doing in retirement?’ For most of us the answer is ‘no’, or at best ‘I hope so, but I haven’t got round to figuring it out yet’. “The math’s gets pretty challenging pretty quickly – a married couple today gets roughly $30,000 per year on New Zealand Superannuation, but findings from a 2015 Massey University study suggest that at best that’s a bare minimum and leaves no capacity to deal with unexpected
costs. This together with other international research supports the same view that a married couple in retirement who want to have more than a ‘no frills’ lifestyle need more like $50,000 per year. “It’s not a magic bullet, but KiwiSaver is creating opportunities for savers and retirees to reach their retirement income goals and enjoy the retirement they dreamed of. It’s low cost, well governed and backed by the collective efforts of government, employers and employees. “Sadly over 40 per cent of KiwiSaver members don’t make regular contributions, and those who do contribute might not be saving enough. The key point is that without a clear plan you probably can’t even answer the question about how much you want or need in retirement. “We believe the best option is for every individual to look to take control of their own retirement outcomes. Many can take action today and over the next ten, twenty or thirty years to put themselves in a position where they get to make their own choices in retirement – isn’t that what most of us spend our working lives looking forward to?” Still, even 10 years after the launch of KiwiSaver, many people are not extracting the full value and benefits of the scheme. KiwiSaver is a long-term savings scheme, designed to help you save for your retirement. For most people, it’s work-based, with contributions from you and your employer deducted from your pay. Those contributions are invested into the fund(s) of your choice to deliver a return that could help boost your savings. Affordability and personal circumstances aside, KiwiSaver is now for a large portion of the population the first step towards savings and accumulating wealth for retirement. 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.
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Heretaunga Plains Urban Development Strategy (HPUDS) Review Update – to April 2017 By Roger Wiffin | Stradegy
The Heretaunga Plains Urban Development Strategy (HPUDS) was developed in 2010 by the Hastings District, Napier City and the Hawke’s Bay Regional councils. It replaces earlier growth strategies while responding to the need for a long term vision and integrated approach for residential, commercial and industrial land development and infrastructure management in and around the urban centres of Napier and Hastings through to 2045. HPUDS 2010 principles:
• • • • • •
established
following
key
promote a compact urban form in new ‘greenfield’ growth areas. intensify density in existing developed areas where appropriate. provide a range of housing options and opportunities. provide for social and economic wellbeing in an environmentally sustainable manner balance growth between Napier and Hastings. identify growth areas for housing and industrial activities.
HPUDS Review:
Over the past twelve months, a joint council working group (WG) has been overseeing the first 5-yearly review of HPUDS. The 5-yearly reviews are intended to keep HPUDS up-to-date and able to respond to changing local and national drivers for development, including population projections and development preferences. The working group (WG) comprises; the Regional Council Chairperson and the two Mayors, two elected members each from Hastings and Napier, the Council Chief Executives and mana whenua representatives. The WG is supported by a small number of technical advisory Council staff.
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Review Process and Key Drivers for Change:
Since HPUDS was adopted in 2010, key changes in growth drivers and trends include: • Higher projected population growth from 2009 to 2015, by an additional 1,080 people. • A projected population growth of 16,455 to 2045 - up from the original projection of 8,014 people. • An increased total number of ‘households’ – up an additional 545 households. • Reduced average household occupancy. From 2.6 (persons per household) in 2009 to 2.55 in 2016, with a a projected reduction to 2.38 to 2045. • An increased 65+ age group would likely result in retirement units being 30-40% of all future new build housing between now and 2045. Half of that is expected to be in ‘retirement villages’ requiring large greenfield sites rather than infill sites. Potentially resulting in release of nonretirement housing to younger families. Based on the above findings and further analysis, the WG concluded:
•
The existing identified residential and industrial greenfield growth areas have capacity to accommodate projected growth. • Establishment of new greenfield buffer areas (reserve areas) would add resilience to the Strategy if a preferred growth area proved unable to be developed. • Immediate residential greenfield land supply issues require attention (Havelock North/ Frimley (Lyndhurst) and potentially Te Awa). • Despite the growth of the retirement housing sector no immediate response is required in the Strategy with current greenfield areas able to support ‘retirement village’ development. Each Council is responsible for prioritizing growth areas for staged development over the next thirty year planning horizon. The respective council will undertake a more detailed assessment of the area’s suitability for development before
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proposing a district plan rezoning under the Resource Management Act. Recommendations:
The WG has recommended the following main changes to HPUDS as a consequence of the 2016 review: • Add Romanes Drive and Brookvale Road as a Greenfields Growth Area extending back to Thompson Road, with a yield of around 350 sites. • Reclassify the current Arataki Extension as a Reserve Area. Other Reserve Areas are Wall Road, Murdoch Road, Middle Road and South Pirimai. • Clarify the restricted circumstances for utilising “reserve areas” for development. • Remove south Clive from the list of areas classified as inappropriate for growth and identify the 4 hectares at the end of Read Crescent as being appropriate for growth (approximately 40 sites). • Remove Whirinaki from the list of areas classed as ‘inappropriate’ for development due to water supply infrastructure limitations. • Expand the Western Hills (Taradale Hills/ Mission Heights) area and increase indicative yield from 350 to 600 sites • Raymond Road to be assessed as part of Cape Coast master planning following the Clifton to Tangoio Coastal Hazards Strategy. Each of the three partner councils are currently considering the WG’s recommendations. For the revised HPUDS 2016 to be adopted, all three partner councils need to support the findings and recommendations of the review. Roger Wiffin is a full member of the New Zealand Planning Institute and a Principle Planner and Director with Stradegy. Email Roger at roger@stradegy. co.nz. Stradegy provide expert services in the field of Planning and work closely to coordinate across a range of supporting consultant disciplines across the region.
PRO IT
VoIP for Business A coming of age for Voice over Internet.
By Simon Fletcher | Spark Business Hub
I’ve talked previously of building foundations so our businesses are ready for the transformation ahead so it seems appropriate in the context of this that we talk about IP Telephony. What I’m going to discuss is neither product nor platform specific and should give you an insight into what VoIP is and how we might see this develop in the future. IP telephony, VoIP, or IP voice are the main names for the process of transmitting voice over the internet. This is transmitting voice via IP protocols enabled by a group of technologies and methodologies to enable voice to prioritise for effective communication. The transmission of voice over the internet isn’t new, many of us have used for some time products like Skype to not only carry voice but also video. Sometimes it’s clunky and not an ideal experience but most of us are happy to use it as it keeps us connected with loved ones wherever they may be in the world. For business however the demand is more critical and businesses demand a better solution. For business the phone can be the first contact we have with customers and it’s imperative that this first impression counts. I think that this has meant a lot of businesses have been reluctant to switch due to issues around the quality of call. A number of early adopters struggled with quality due to the speed and latency of the service over the copper lines at each end of the connection. At an extreme level I often wonder how much better scammers would be if they employed a better phone system when they pretend to be from Microsoft…excuse me sir but your pc has a virus…, In this instance he really gives you the impression of a third rate operator. But the network has evolved and so has the technology. There are two options for a VoIP system, either Hosted (via Cloud) or onsite hardware. There are advantages to both options. I have discussed before I’m a fan of moving my business to the cloud and VoIP delivered via the cloud is certainly favourable in my mind opposed to investing in onsite hardware. That said there isn’t anything wrong with on premise hardware and there are some very capable providers in the Hawkes Bay. Onsite hardware is probably what a lot of existing users are familiar with, these are either IP PBX systems or an open source piece of hardware. The main consideration in my mind is support. That support should take in account when you need that support, if you are a 9 to 5 operation then you would want support during that time but if you operate outside this time, like an international business you may want 24/7 support. Some of the cheaper options only provide business hour support and you can run into difficulty if you have issues outside those times.
Most of the benefits come in the functionality of the system and many of them like mobile twinning (have the desk number follow you) and auto attendant are well known. Where Voip stands alone is in the integration with office applications, like Office365. Integration with IoT (Internet of Thing) means the future of VoIP looks exciting. By 2020 there are expected to be over 50 to 200 billion connected IoT devices, that’s about 9 for every individual globally. These devices communicate wirelessly, virtually anywhere in the world that an Internet connection exists. Since VoIP is already Internet based, it provides the ideal platform for these "things" to fullfil their potential. If we think cross platform web based communication and the integration (or convergence) of this technology then it opens a plethora of opportunity. From your smartphone you could interact directly with a social media post (perhaps a promotion) and simultaneously (or at least seamlessly) book a restaurant and have that update your calendar automatically. The ability to connect with customers, suppliers, employees from anywhere at any time obviously has great potential. And in a world where people now expect almost immediate response its going to be critical for our businesses to accommodate them. Clearly VoIP has come of age and its certainly worth considering the next time you review your needs for your business. I look forward to the development of technologies that not only provide the functionality to operate my business today but also open up an unlimited number of potential opportunities that come from the integration with IoT. Simon Fletcher is the owner of the local Spark Business Hub and has over 20 years’ experience in the Utilities and communications industries. Email Simon at simon.fletcher@hubhawkesbay.co.nz MAY - AUGUST 2017
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EDUCATION
EIT business graduates boosting local economy EIT graduates are helping power Hawke’s Bay’s vibrant economy with most of those completing business qualifications last year securing jobs within the region. The vast majority of the 55 who completed degree and graduate diplomas in 2016 – a record number for EIT’s School of Business – are employed. The graduates studied EIT’s Bachelor of Business Studies – some conjointly with the Bachelor of Computing Systems – the Graduate Diploma of Professional Accounting and the Graduate Diploma in Business. Most are now working locally, and the businesses employing them are diverse. They include companies specialising in regional infrastructure, providers of business services, manufacturers, the public health sector, building firms, retirement villages, food packaging operations, retailers, hospitality businesses, event security services and chartered accountants. “That’s significant for our economy in all sorts of ways,” Head of School, Business and Computing, Rebekah Dinwoodie points out. “That these graduates were educated at EIT in itself supports this region’s highly interconnected economy. Students are also consumers and they use goods and services like everyone else. Many dovetail study with part-time work, helping fill local jobs. Dinwoodie says that, unlike those who leave the region for tertiary study, EIT’s graduates are much more likely to find work in Hawke’s Bay after gaining their qualifications. “The quality of our business school graduates also means they are increasingly in demand. Employers appreciate that they are well educated and also work ready. “We carefully consider what businesses have to say about our students and graduates and we’re also an ear for local industries represented
Lars Van Gestel completed EIT’s Bachelor of Business Studies last year and then secured a job with one of New Zealand’s big four accounting companies PricewaterhouseCoopers in Napier.
on our advisory committees. We value these inputs in continuing to fine-tune our study programmes.” The school’s final-year degree and graduate diploma students are required to gain real-world experience by undertaking industry projects or working as interns, generally with companies in Hawke’s Bay. The internships are opportunities for businesses to assess the suitability of potential employees and they commonly result in job offers. “That’s a win-win for both parties,” Dinwoodie says, “and it’s also validating for teaching staff, who work hard to ensure students are ready to move seamlessly into the workforce. “Hawke’s Bay was among New Zealand’s top-performing regions for economic growth last year. It’s important that we maintain that traction by continuing to turn out well-educated graduates for jobs coming on stream.”
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.
THE EXPERIENCE YOU NEED & THE SUPPORT TO SUCCEED 0800 22 55 348 | business.eit.ac.nz 36
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PRO HR
Drugs and Alcohol in the Workplace By Kimberly McKay | BDO Central
We have been aware for some time that our drinking culture in NZ is not always healthy. Now the increasing use of drugs, particularly among young people is a significant societal issue that we are discussing more frequently. It impacts on families, education, health, law enforcement and the workplace. It is an issue that more employers are having to grapple with, most often prompted by health and safety concerns. Not only are employers concerned with their staff being fit to work on their own premises but where you have staff working off-site they may have to satisfy the requirements of other organisations in relation to drugs and alcohol. As well as health and safety implications there can be other negative impacts including unacceptable behaviour with colleagues and customers, theft, absenteeism, and reduced productivity and performance. For small employers it can be hard to know where to start to address this issue. In a small team often there are few formal policies and expectations are discussed informally. As with other health and safety matters having documented processes is essential to enable employers to enforce expectations and defend their actions. The process starts with a sound policy around drugs and alcohol. This should be developed with staff involvement and consultation. Key elements of the policy including consent to testing in accordance with the policy should also be included in your employment agreements. There are a number of decisions to be made about the approach that is right for your business, particularly in relation to requirements around testing for drugs and alcohol. It is important that your policy spells out how this will be done, using a reputable testing agency, and when it will occur. There are different scenarios when you might require testing:
• Pre-employment testing – consider whether this is appropriate for your business. It incurs a cost and adds time to the recruitment process but particularly in safety sensitive occupations gives you assurance that employees are fit to start work and sends a clear message about this being a non-negotiable part of your workplace culture. • All policies should include testing for reasonable cause where there are signs of an employee being under the influence of alcohol or drugs. It is also prudent to require testing following accidents or incidents (near misses, injury, or damage to property). • Not all organisations include random testing in their policies. This needs to be based on a risk assessment and is generally applied to jobs or work areas that are deemed to be safety sensitive. • Consider whether it is necessary in your work environment to require testing of contractors working at your premises and include these expectations in your contract documentation. The consequences of getting a ‘not negative’ result from testing need to be very clear in your policy. You need to consider whether this will solely be treated as disciplinary matter or whether you wish to offer rehabilitation support. This could include time off (paid or unpaid) to attend a rehabilitation programme and/or a contribution to the cost of sessions with a substance abuse specialist. Generally where the employer supports rehabilitation there will be a requirement for testing before returning to work and periodically after return to work. Ideally the introduction of a drug and alcohol policy is supported by an education programme for employees covering the adverse effects of drug and alcohol use, abuse or dependency, and ensuring they are informed of how your policy will operate. Managers and supervisors need training and guidance in applying the policy and recognising signs of drug and alcohol use that might give reasonable cause for testing.
Any policy or health and safety procedure needs to be supported by a safety culture and the same applies to dealing with drugs and alcohol. Ensure you have clear messages around standards of behaviour, which are communicated regularly and consistent application of the policy is crucial. Leaders in the organisation must demonstrate their commitment if other staff are expected to take it seriously – it sends a strong message when leaders volunteer for random testing even if it’s not required for senior roles. It is important to role model appropriate behaviour with alcohol at work events and promote host responsibility. Consider ways to promote healthy lifestyle choices at work to support your stance on drugs and alcohol. Taking action on drugs and alcohol may seem daunting but there is support available to employers to confront these issues from testing agencies and other advisers. You will not be helping your employees or your business by ignoring the issue.
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 MAY - AUGUST 2017
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PRO Legal
Follow the Bright Line New government test ensures closer attention to taxation in property transactions. By Edward Bostock | Bramwell Bate Lawyers
Tax is not a topic that most of us frequently discuss however the Government’s introduction of the Bright Line Test in 2015, which relates to the sale of residential property, means that we all need to pay closer attention to taxation in property transactions. Put simply, the tax position for the sale of residential property is this: "If you’re selling a residential property and one of your intentions when you bought the property was to sell it, then you’ll have tax to pay on any profit you make from its resale” (from Selling property (Residential property) page on IRD website). That being said, in most cases you will not have to pay tax on the sale of your family home and may also not need to pay tax, where if you purchased a property as a longterm rental. Your intentions at the time of purchase and your history of buying and selling property are crucial: • If one of the firm intentions (not necessarily the main intention) is resale then you will have to pay tax on the profit. • If you have a history of buying and selling property then you may be classified as a property “dealer” and therefore have to pay tax on the profit even if it is your main home. If you are classified as a dealer, developer or builder then there are further tax implications that you would need to consider. For example you may be liable to pay tax on any property if the sale is within 10 years of the purchase and you were a property dealer or developer at the time you bought the property (regardless of whether the purchase was part of your property business or not). You may be required to pay tax if you are simply associated with • a dealer or developer when you purchased the property; or • a builder when significant improvements started on the property. These rules are not new and are unlikely to be relevant to the majority of us, however the introduction of Bright Line Test, which 38
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applies to residential land acquired on or after 1 October 2015, has (to an extent) changed this. Bright Line Test
There are exemptions to this “tax” however it provides that if a person buys and then sells that property within two years, they will have to pay tax on the income earned from the sale. The start and end dates (relevant for the two-year period) may vary depending on the situation however for a standard property purchase and sale: • The start date will be the date the title to the property is transferred to a person; and • The end date will be the date a person enters into an agreement to sell the property. As stated above the test applies to “residential land” and therefore does not include land used “predominately” as business premises or farm land. Exemptions
The test will not be applicable if one of the exemptions applies. The main exemption is when dealing with a person’s main home, which is the home that: • Is mainly used as a residence; and • With which a person has the greatest connection (relevant if they have more than one home).
The main home exemption can only apply to one home and will apply to the dwelling used “predominantly” (more than 50%) as a person’s main home for “most of the time” the person has owned the land. The test looks at actual use and not just a person’s intention to use it as a main home. The exemption can only be used twice in a 2-year period and will not apply if there is already a regular pattern of buying and selling property. The test will also not apply to property inherited as a beneficiary or to transfers of land between partners under a Relationship Property Agreement (however if the property is subsequently sold to a third party the test may apply). The introduction of the bright line test, and the disclosure requirements that accompany it, will also result in the IRD being more aware of a person’s activities than it may previously have been. For example, it will quickly become obvious if a person has a history of buying and selling property. This article is designed to draw attention to a complex area and should not be considered as legal advice. For further information or advice as to a potential property transactions, I recommend that specialist advice be obtained from an accountant and/or lawyer. Edward Bostock is a Director at Bramwell Bate Lawyers in Hastings. To contact Edward, email edward@bramwellbate.co.nz
PRO
PROPERTY
The Value of Lifestyle on Property By Paul Harvey | Williams’ Harvey Registered Valuers
Hawke’s Bay’s improving residential property market has been well documented in recent weeks. House value and the median sale prices (MSP’s) across both cities and their suburbs have all shown increases in both values and sales activity. Is the attraction of the Hawke’s Bay lifestyle, climate and comparative housing affordability impacting our property values as ‘out of towners’ relocate? Hawkes Bay Today claimed that as a region, “Hawke’s Bay is leading the charge with New Zealand’s highest property asking price increase in the past year”¹. Summer saw a slight dip in sales but this was more to do with lack of stock, lamented Real Estate Agents, rather than a lack of interest. As an office, we are seeing more and more evidence of buyers being from outside the region. Here the perception of value, that is, what a buyer is prepared to pay for a property is relative to the market they have been in. This factor, combined with a lack of stock has seen the value of properties being driven up across all locations and sectors of the Hawke’s Bay property market. One of the major contributing factors is the number of events held in the region which helps introduce ‘out of towners’ to what is on offer in our beautiful part of God zone. From the Mission Concert as well as a myriad of other winery concerts to Art Deco Weekend, Summer FAWC, a range of sports destination events such the Festival of Hockey, Horse of the Year and more recently the Air New Zealand marathon mean that a growing number of people experience our region and the lifestyle it has to offer. Another contributing factor is the prevalence of commuting to the city centres for work as well as the digital age and the ability to work remotely has allowed living and working to not necessarily be in the same geographical location. These contributing factors combined with escalating city prices for residential homes has had the trickledown
effect of getting more people to evaluate their current circumstances and relocate to the regions. Real Estate Institute of New Zealand (REINZ) statistics confirm that sales activity and values have increased across all the property sectors, both in the upper end of the market as well as the first-time home buyers in the $350,000 to $400,000 price bracket and investors looking to buy in the $250,000 to $350,000 price bracket. Whilst local buyers have contributed there is a growing number of ‘out of town’ buyers who are driving the prices up. Williams’ Harvey, as Valuers, and I am sure we are not alone, have provided valuation advice for more and more clients entering the market place, either as investors or buyers looking to relocate to the region. We are aware of two cases where in a Closed Tender an out of town buyer put in an offer, in one case $100,000 more than their closest competition and in another case nearly $200,000 above the nearest offer. If buyers are willing to pay the extra dollars to secure the sale it reveals that value is a perceived entity and for an ‘out of towner'
the amount paid is still considered value for money. Without the benefit of a valuation this is likely to occur more and more regularly as people want to buy into our region. For those yet to make the property investment, Ashley Church Property Institute of New Zealand CEO observes, "The continuing gap between demand and supply means that further price inflation is inevitable for the foreseeable future." This means that future residential home buyers will need to be organised and ready to act when they find the house they want. It is a competitive, fast paced market with increasing values at present. However, for those who have invested in a property(ies) the current trend will be welcome news. ¹ HB Today 17 March 2017
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 MAY - AUGUST 2017
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Business
Is Your Business Fit For Sale? By Matt Coulter | Partner at BDO Central (NI)
At some stage in their career, every business owner ponders how they can best exit their business and begin the next stage of their life. Whether it be handing the family business down to the next generation, selling to a trusted employee, or finding a buyer on the open market, there are a number of steps to go through and factors to consider. As the baby boomer generation continues to move towards retirement (currently aged 52 to 71), the number of business owners looking to exit their businesses is only going to grow. This makes the “fitness” of your business even more important, especially if you are considering finding a buyer on the open market. Before you consider how much your business might be worth, marketing it, or commencing discussions with potential successors, there are some preliminary steps that are essential to maximising its value. Ensure you clearly define your business as well as personal goals. When do you want to sell your business? What do you want to do with your time after the sale? What financial resources will you need to do it? Maybe this is just the first step to financial freedom and you plan to continue in the business in a consultancy capacity. If you own your premises, do you intend to sell these as part of the sale of the business or is your preference to retain the property as an ongoing income stream through retirement? The answers to these questions will help you determine the nature and timing of your planned exit or partial exit. You need to ensure your business is presented in the best light possible, maximising its value. You should also want to ensure your successor has a well-structured operation to start their career as a business owner. This is particularly important if your exit strategy involves family
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or you plan to continue as a consultant. But above all, it’s likely your name will continue to be associated with the business whether or not you are involved at an operational level, so personal pride will likely play a part as well. In terms of finding a buyer on the open market, there are an increasing group of corporates that are always looking to acquire additional branches to grow their operations. Typically, these types of buyers will look to maximise profits by moving the administration function to their corporate office and reduce operational costs where possible. These types of buyers are generally looking for a mature business with well-established customers and clear structures and procedures. Your business advisor should have the tools to take you through this process; however, don’t underestimate the personal time commitment you will need to make. For this reason, the planning process should start a number of years before any planned exit. The key areas to review prior to marketing your business for sale purposes are:
• Documentation of the organisational structure and role definitions; • Documentation of internal policies and procedures; • Up to date and complete employment agreements and files for all employees; • Documentation of agreements with key customers and suppliers; and • Reliable and up to date financial records including management reports and financial statements. Role definitions, policies and procedures should be documented with sufficient detail to allow the business to function without your input. Similarly, the arrangements you have with customers and suppliers may, to a large
extent, be linked to your involvement with the business. A potential purchaser should always be wary of the ability for them to continue these arrangements on the existing terms and conditions. Having the key areas of your business documented will provide a far greater degree of comfort to a purchaser and potentially increase the value of your business. Moving to formalise these areas can be time consuming and in the case of arrangements with long-term customers and supplies a potentially difficult process. The need to have up to date employee files shouldn’t be a surprise to any business owner. Any inaccuracies or omissions in this area could prove a stumbling block if the business sale sees a need for employees to be transferred to a new entity. Having detailed employment records also helps the business purchaser understand the value of the current employees and may help them decide whether they are going to retain the staff moving forward. Obviously, current and accurate financial information is a must for prospective purchasers to be able to assess the worth of the business. If you haven’t already thought about the future of your business, there’s no time like the present to get your business fit for sale. Matt Coulter is a Partner with BDO Central (NI). He has extensive experience assisting both small and medium sized entities with a wide range of audit and IT 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, business planning and HR services. The firm is an independent member of BDO New Zealand and part of the global BDO network. www.bdo.nz
Celebrating Excellence
Peter Tod (Chairman Napier Port HB Primary Sector Awards), Paul & Marie Renton (Winners Silver Fern Farms HB Farmer of the Year) & Dean Hamilton (Chief Executive Silver Fern Farms)
Peter Dunkerley (HB Rescue Helicopter Trust) Winner Laurie Dowling Memorial Award) & Roy Fraser (Laurie Dowling Memorial committee member)
Tim Forde (HB Farm Foresters), Greg & Rachel Hart (Winners of the Pan Pac – HB Farm Forester Award) & Doug Ducker (Pan Pac Managing Director)
Congratulations to all the winners Celebrating excellence in the primary sector in Hawke’s Bay
Lawrence Yule (Hastings Mayor) John Paynter (Winner Hastings District Council HB Primary Sector Industry Leader) and Janice Paynter
Gary Brooks (Bayleys), Alex Walker, (Mayor CHB) receiving the Bayleys HB Primary Sector Professional of the year award on behalf of her father Ian Walker
Matthew Lawson (Director Lawson Robinson), Amy Hoogenboom (Winner Lawson Robinson Hawke’s Bay A&P Scholarship)
Business Hub | Hawke’s Bay
RELIABLE BROADBAND IS WORKING
SMARTER If your business uses the internet, chances are you need a reliable connection. Using Spark’s 4G mobile network, Wireless Broadband gives businesses fast reliable broadband for a similar price to ADSL and VDSL. That means there’s no downside. There’s also no downtime, because installation’s a breeze. When you receive the new 4G wireless modem, just plug-in and you’re good to go.
GET MOVING. TALK TO THE HAWKE’S BAY SPARK BUSINESS HUB TO FIND OUT IF WIRELESS BROADBAND IS AVAILABLE IN YOUR AREA. 0800 482 422
info@hubhawkesbay.co.nz SPA3058
Terms and conditions apply. See spark.co.nz/businesshubs for more info.