January/February 2013 - Rotorua Chamber of Commerce

usiness
rotorua
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BUILDING BETTER BUSINESS
ISSUE 13 - JANUARY/FEBRUARY 2013
PRICE $2.50
International Investor
Confidence in Rotorua
Hotels Invest for Tourism Growth
PAGE 4
Hi-Speed Fibre Smart Suite
PAGE 15
Supporting Young Jobseekers
PAGE 19

major sponsors
NEW MEMBERS
Black Stallion Photography
blackstallionphotography@igallopfree.com
0275494999
Kurien Koshy Yohannan
Zeald NZ Ltd
justin.cheyne@zeald.com
(09) 415 7575
Justin Cheyne
Wax Works Ltd
innestylenz@xtra.co.nz
343 6666
Geoff Innes
Free Business Information
Advice and Referrals
Make the Rotorua Chamber of Commerce your first
point of call when you require business information and
be ahead of your competition.
Chrysaliswomen.com
fionadieleman@gmail.com
573 8586
Fiona Dieleman
Shout Marketing
linda@shoutmarketing.co.nz
3456421
Linda Macpherson
Swim Rotorua
swim2XL@gmail.com
Alastair Johnson
Property Cycle
info@propertycycle.co.nz
3575628
Dan Christie
CNC Engineering Solutions Ltd
3496821
Darryl Aston
darryl@cncengineeringsolutions.co.nz
The Annual
Chamber of Commerce Golf Tournament
Sponsored by:
Springfield Golf Club - Friday 15th March 2013
12 noon for 12.30 pm shotgun tee off
$65 inc GST per person entry fee incl BBQ dinner
and Guest Speaker
A Multitude of Prizes in all Categories
NON GOLFER
AMBROSE tournament – no pressure, lots of fun
REGISTERED GOLFERS
Your choice of playing MEDAL round or AMBROSE
2

CONTACT DETAILS
contents
JANUARY/FEBRUARY 2013
Chamber of Commerce
PO Box 385, Rotorua 3040,
The Business Hub, 1209 Hinemaru Street, Rotorua 3010
Ph: 07 349 8365
Fax: 07 349 1388
E-mail: admin@rotoruachamber.co.nz
Staff Team
CEO: Roger Gordon
Office Manager: Angie Downs
Events/Training Co-ordinator: Kay Littler
Communications: Daniel Paddison
Regional Business Advisor: Alan Richards
Skills for Work Coordinator: Martina Wineera
Executive Members
President: Damien Radesic, Mainfreight Transport Ltd
Immediate Past President: Michelle Pleydell, Michelle Pleydell Consulting
Vice President: Bryce Heard, Bryce Heard Consulting
Margriet Theron, Margriet T Business Consultant
Kellie Hamlett, Talent ID
Colin Patchell, Roadmaster
Les Rees, Les Rees Limited
Steve Pinder, Westpac Rotorua
Kathy Hawker, Flying Start Centres
Nick Dallimore, Rotorua District Council
Margie Paris - 3D Signs
Alex Pearce - Resolve Accountants
David Gaines, International Coaching and Training Ltd
Co-opted Committee Member
Jo Douglas - East Brewster
articles
4 HOTELS INVEST FOR TOURISM GROWTH
15 HI-SPEED FIBRE SMART SUITE
features
6 human resources
HR Connect
7 SUSTAINABLE CHARTER NEWSLETTER
Rotorua Sustainable Business Charter
8 LEGALLY SPEAKING .....
East Brewster Lawyers
9 marketing
Tuskany
10 GROWING ROTORUA
Destination Rotorua
13 PROPERTY MANAGEMENT
Rotorua Rentals
14 ASSET PREPARATION
Affiliated Business Consultants Ltd
16 STRATEGIC management
Waikato Management School
19 CONNECTING TO BUSINESS
Work and Income
20 MANAGEMENT ACCOUNTING
Resolve Accountants
21 FINANCE
Westpac
22 BUSINESS EDUCATION
Waiariki Institute of Technology
23 BROADBAND INITIATIVES
Unison Fibre
24 INFORMATION TECHNOLOGIES
e-c Technologies
in every issue
18 Chamber Calendar
3

ARTICLE: HOTEL INDUSTRY
Hotels Invest For Tourism Growth
Rotorua’s ‘Big 8’ hotels are defying the tourism downturn
and investing millions of dollars in upgrades, both to
maintain attractiveness in a difficult market and in
preparation for increasing visitor numbers over the next
few years.
The latest tourism sector forecast from the Ministry of Business,
Innovation and Employment (MBIE) says visitor numbers and
tourism spending are forecast to grow by 9 per cent by the end of
2018 after a “challenging” period over the next 1-2 years until the
worst of the global financial crisis is past.
The Ministry says most of the growth will come from Australia and
China.
Tourism Industry Association chief executive Martin Sneddon said:
“The over-arching message that can be taken from these forecasts
is that if the industry, with Tourism New Zealand, can continue
to adapt effectively within this fast-changing environment, and if
we can keep improving the quality of the visitor experience, then
tourism will continue to be a strong contributor to New Zealand’s
economy.”
Typically, hotels receive the lions’ share of the visitor accommodation
business. Recent official figures show that while other commercial
accommodation types in Rotorua had static or shrinking guest
nights in the year to November 2012, hotels recorded a 2.8 per cent
rise to 716,823, with occupancy rates steady.
Rydges Rotorua
Actual guest numbers rose a reported 9.7
per cent, but their length of stay declined by
6.3 per cent - if we could tempt visitors to
stay a little longer the city would get
better value from the increase in guest
numbers.
A survey of the major hotels shows they are doing their part to
make staying in Rotorua more attractive.
Starting at the lakeside end of the city, the Accor-managed Novotel
Rotorua Lakeside (199 rooms) and Ibis Rotorua (145 rooms) have
had what General Manager Fraser McKenzie calls “a $2 million vote
of confidence in our operation and Rotorua tourism by international
investors”.
The Novotel’s foyer has been refurbished with a blend of cultural
and geothermal themes. A hand-crafted glass lighting feature is the
centrepiece, with a marble reception “pod” design incorporated to
welcome guests.
Designer Jan Macomber created an exclusive carpet weave matched
to new wall cladding in the seven conference and meeting rooms,
including an expanded Executive Boardroom.
The Atlas Restaurant has been revamped with new feature lighting,
comfortable seating and restaurant booths. “With up to 450
guests moving through the restaurant it was important to balance
practicality, comfort and aesthetics,” Mr McKenzie said.
The Novotel guest room sofas have been replaced and an upgraded
digital in-room movie system has been installed. All double rooms
are scheduled to get king-size beds by the end of March.
At the Ibis, an LCD TV upgrade is due for completion by the end
of February and duvet triple sheeting is to be introduced in all 145
rooms.
At the Millennium Hotel, General Manager Pipiana Whiston says
the significant investment in upgrading facilities shows the group’s
sudima lake rotorua hotel
4

commitment to maintaining the high standards expected of a 4.5
star hotel.
The hotel has installed Wi-Fi serving all accommodation rooms,
guest areas and seven conference rooms.
The hotel’s Day Spa and surrounding leisure and fitness areas have
had a major refurbishment, with mosaic tiles used to renew the
communal spa pools, new decking throughout the leisure spa pool
and fitness area and new carpet, paint and track lighting to finish
the fresh look. The ladies area has stylish tile and glass showers
installed and the sauna floor has been retiled.
The main entry has been upgraded with Italian tiles and upstairs
the 5th Floor Club guest rooms have been furnished with new desk
and lounge chairs.
Ms Whiston says the Millennium Group will continue its investment
in the hotel in 2013, showing its continuing commitment to the
hotel and to Rotorua.
The Sudima Lake Rotorua Hotel has substantially refurbished its
three conference areas, with new furniture, a more modern look
and updated technology to match. Positive comments about the
change have led General Manager Gert Taljaard to re-launch the
Sudima’s conference services.
The Sudima’s public areas have been revamped, with a redesigned
entrance lobby to increase capacity and a cleaner, modern look in
the Lakes Restaurant and Mallards Bar. Importantly, the changes
provide more space near the picture windows overlooking the lake,
as well as new furniture and direct access between Mallards and
the restaurant.
At Rydges, General Manager Craig Simpson has overseen an
investment programme focused strongly on guest comfort – new
hotel beds in all 135 guest rooms, triple sheeting in all rooms, guest
bathrooms painted and new flat screen TVs throughout the hotel.
New menus have proved popular in the hotel’s range of restaurants.
The Holiday Inn has also met the demands of today’s guests with
the installation of a Wi-Fi system covering all guest rooms and the
ground floor public areas.
General Manager Marcus Keenan has overseen the replacement of
more than 100 beds in over 50 guest rooms, plus new restaurant
chairs and bar tables, an upgraded sound system in the main
conference room, four new data projectors in the Cultural Theatre,
and the beginning of a programme to replace old compressor
fridges with new, greener absorption fridges.
Behind the scenes a range of work has gone on,
including HVAC installation, new geothermal
systems, kitchen equipment and fire and other
safety measures.
CONTRIBUTOR:
Kevin O’Connor
Zeal Communication
millennium hotel
Rydges has introduced a new RISE breakfast concept “focusing on
the healthy and nutritious aspects of the most important meal of
the day”.
Rydges’ conference booking system has been upgraded, and plans
for 2013 include converting the lobby shop into a conference
boardroom, replacing all guest room curtains and painting the
outside of the building.
Just up Fenton Street, the former Kingsgate Hotel completed two
years of refurbishment and remodelling to gain a 4-star Qualmark
rating and was rebranded and re-launched as the Copthorne Hotel
Rotorua in November.
The Copthorne has 110 rooms and suites, five conference rooms,
the Jimmy Cook restaurant, lounge bar, heated swimming pool,
gym, tennis court, spa and sauna, as well as broadband and public
area Wi-Fi.
Announcing the re-launch, Millennium and Copthorne Hotels
NZ managing director B K Chiu said: “Rotorua is a key tourist
destination for our international visitors to New Zealand and our
Copthorne Hotel Rotorua will complement our highly regarded
Millennium Hotel Rotorua.”
The Distinction Rotorua Hotel is embarking on an extensive exterior
facelift, with a new colour scheme to modernise the look and feel
of the hotel.
The facelift follows a major internal refurbishment during the
winter that saw the hotel’s 50 superior rooms upgraded and new
high-capacity wireless internet system installed.
5
novotel rotorua lakeside

FEATURE: HUMAN RESOURCES
Getting it Right
- Hiring for Team Fit
Quick hiring, convenient hiring or ‘insider hiring’ rarely works. The quicker the hiring decision, the more likely the decision
will be a poor one. The more convenient the candidate (eg Sarah in Sales’ brother’s friend) the more likely it will haunt you
for a long period of time.
The old adage “marry in haste, repent at leisure” certainly applies
equally well to employing in haste and then being in the unenviable
position of removing from your company an unsatisfactory
employee. Let’s face it, it’s easier to hire someone than it is to get
rid of a bad employee. Bad employees are rarely bad because of a
lack of technical skills and are more likely bad because of attitudinal
skills, a lack of interpersonal skills or poor team fit. Insider hires
often blur the lines of accountability and ethics.
People are the number one concern for many private companies
ranking ahead of growth and profitability.
If you don’t have the right people working
for you, your business is at risk. So it pays to
look at all the factors when recruiting your
next hire.
A successful recruitment is much more than hiring someone with
the right skills and experience. Best practice recruitment techniques
tell us that we need to focus not only on the ‘technical skills’ but
also on behavioural competencies and motivational fit.
As a Manager, it is important to hire for fit within the existing team
and organisational culture. If the working environment is pretty low
key and soft spoken, will the hyper-aggressive, “I’m going to have
the boss’s job someday” type fit well? Will the quiet, understated
type work well with the team of creative marketing, social butterflies
you’ve assembled? Those are the considerations that effective
leadership considers when potentially placing a candidate.
Good interviewers search for growth and potential and not just a
quick fix. Think beyond today; what can the candidate become? Do
their career objectives fit within the framework of the company? Will
they continue to be challenged? Can you offer growth opportunities
to match their growth expectations?
So, how do you ensure you’re hiring a candidate that fits?
• Ask appropriate interview questions that will draw out the
candidate’s true self – not just their interview self. Ask for
examples of things they’ve done before, not what they would
do in a certain situation.
• Have the team members that will work closest with the person
be involved in the recruitment process – get them to sit in the
interview or take them on a tour of the office or factory.
• Set expectation for the candidate clearly. To avoid any
miscommunication, make sure the potential new teammate
has a clear idea of what the job entails and how the company
works as a whole.
• Have the candidate take a personality test. How do they handle
stress; what sort of team environment do they best respond to;
what type of management style brings out the best in them?
Remember you shouldn’t be afraid to start over. The job ad was
placed 10 days ago. 28 CVs have come in. Six interviews. No one
fits. No one has the interpersonal skill package to make a good fit.
A good Manager will start over and not just settle for the best of
a limited talent pool. They will expand the search criteria. They will
fish in a bigger pond.
The adding or replacement of team members is a significantly
important event for any company leader. It is one that requires
thought, planning and time. With a great approach, you can
continue a tradition of great results. With a rushed approach, you
are setting the stage for consistent problems and turnover and
discontentment for all parties.
CONTRIBUTOR:
Sandra Diekerhof
Director, HR Connect Ltd
www.hrconnect.co.nz
6

FEATURE: SUSTAINABLE CHARTER
The Nine Sustainablity
Commandments
In previous articles for this column I discussed sustainability issues ranging
from procurement policies to carbon emissions. As this is the first article
for 2013 I thought we could go back to basics. With this in mind, here are
the nine things a business can do to start the sustainability journey.
1. Commit to becoming a sustainable business – this may
sound obvious but without a genuine desire to be sustainable
there is little point in starting the journey. Buy-in from
management and staff is essential!
2. Work with staff to identify significant issues for your
business – every business has a small number of significant
environmental and social issues and lots of less significant
issues. For a kitchen manufacturer the significant issues might
be energy consumption and waste to landfill while for a tourism
operator they might be fuel consumption and noise.
3. Work with staff to develop a Strategic Sustainability
Plan (SSP) for the business – you can’t get there if you don’t
know where you’re going! A high level plan should provide
broad but measurable goals which addresses significant issues
identified in Step Two.
4. Work with staff to develop an Action Plan – this is a To Do
list of specific actions to achieve each of the high level strategies
in the Strategic Sustainability Plan. Each action should identify
the people responsible for its implementation as well as a
budget and timeline for implementation. Be realistic! Start with
a limited number of actions and add new ones when original
actions have been implemented.
5. Measure your performance – you can’t manage what is
not being measured! Businesses always measure economic
performance such as profit and loss, return on investment, and
benefit/cost. The same applies to sustainability performance.
As a minimum you should start measuring elements associated
with significant sustainability issues identified in step 2.
6. Start developing an organisational culture that supports
sustainability – Communicate the SSP during recruitment
and induction activities. Regularly discuss the SSP at formal and
informal staff meetings. Reward staff for ideas that promote
sustainability. Hold sustainability events
7 Get your suppliers on board – suppliers have a significant
impact on your sustainability. Contact your key suppliers, tell
them about your SSP and ask them for support in achieving it.
8. Get your customers on board – Customer behaviour can
impact your sustainability. Share your SSP and ask for their
support. Customers can also be a valuable source of information
on sustainability actions you could be implementing.
9. Sort out your website – the company website reflects your
business’s core values. As you’ve decided to adopt sustainability
as a core value then this should be reflected on your website.
Have a separate webpage called ‘Environment’ or ‘Sustainability’
where stakeholders can go for any information associated with
your commitment to sustainability (eg a copy of your SSP, a
list of implemented sustainability actions, a list of community
organisations you support).
Current membership of the Rotorua Sustainable Business Charter:
Why not be part of the growing Rotorua Sustainable Business
Charter family and find out more about the above actions?
Contact the Chamber of Commerce on
3498365 info@rotoruachamber.co.nz or
Eldad Collins on 3498325
eldad.collins@apr.co.nz
CONTRIBUTOR:
Eldad Collins
• Birchall & Maunder Automotive • BNZ Partners Rotorua • Bright Wild & Thomas Accountants • Chris Smith Glass • Darryl Church Architecture • Early Birds Educare •
East Brewster, Lawyers • Interior Fittings Ltd • Laser Electrical Rotorua • McDonald’s Rotorua • Office Max Rotorua • Okere Falls Store • Orca Engineering & Marine • PF
Olsen Rotorua • Power Solutions Ltd • Resolve Accountants • Rotorua Chamber of Commerce • Rotorua District Council • Rotorua Taxis •Waiariki Institute of Technology
20
7

FEATURE: LEGALLY SPEAKING .....
More Employment Law
Changes In The Wind
This year we are expecting to see further amendments to
the Employment Relations Act (ERA) relating to collective
bargaining and dealing with vulnerable workers.
Protecting vulnerable workers
Part 6A of the ERA has been the subject of a lot of media coverage
from time to time. Part 6A provides for the working conditions of
protected employees to be preserved when the business they work
for is transferred or contracted out or sold. The protected persons
are those providing cleaning, catering and laundry services.
The imposition of Part 6A in practise has caused a number of
difficulties, particularly for small employers who have won tenders
for contracts in the protected areas where they could be required
to take over the outgoing contracted staff on their existing terms.
The government has indicated that the changes will include:
• Exempting businesses with fewer than 20 employees as
incoming employers under Part 6A.
• Introducing specific processes for reaching agreement on how
to apportion liabilities for accrued service-related entitlements
for transferring employees.
• Processes to require outgoing employers to provide employee
information to the incoming employer.
• Timeframes for employees to decide whether to transfer to the
incoming employer.
• Greater sanctions for non-compliance.
Any changes that reduce the complexity and uncertainty around
Part 6A are to be welcomed.
Collective Bargaining
Other changes to the ERA are also proposed. These predominantly
involve clarifications in the area of collective bargaining and provide
greater freedoms in that area. Key changes within this area are:
• Returning to the position where the duty of good faith does
not require parties to conclude a collective agreement.
• Repealing the rule whereby an employer could not offer
terms of employment inconsistent with a collective
agreement in the first 30 days of employment. Employees still
need to be provided with a copy of the collective terms and
can join the union at any time.
• Allowing employers to opt out of multi-employer bargaining.
• Allowing proportionate pay reductions as a response to partial
strikes.
Disclosure of personal information:
There are also changes relating to the disclosure of personal
information as a result of the University of Waikato decision in 2011
where the Court required disclosure of information in a redundancy
selection process which had been considered confidential by the
employer.
Flexible work arrangements
The flexible working arrangements (part 6AA of the Act) are proposed
to extend to all employees from the first day of employment.
Kiwisaver and minimum wage
Another development in the latter part of 2012 was a case involving
the total remuneration provisions of the Kiwisaver Act 2006. In
that case, employees claimed that their wages were wrongly being
paid at a rate below the minimum wage as a result of Kiwisaver
contributions having been deducted. The employer claimed
that “total remuneration” was permitted and that provided the
provisions of the Kiwisaver Act are met, Kiwisaver contributions
need not be paid in addition to the employee’s gross salary or
wages but can be deducted. There is nothing in the Kiwisaver Act
provisions which specifically refers to minimum wage.
The Employment Authority referred the matter straight to the
Employment Court upon the basis that it involved a question of law
of both general and public importance and the
Court has yet to determine the matter.
We will await the outcome of the litigation and
legislation with great interest.
CONTRIBUTOR:
Helen Nathan
Director, East Brewster
8

FEATURE: MARKETING
Are Your Team
Helping or
Hindering Your
Growth?
It’s a New Year - right? And this is the year you really
want to turn things around and get that sales growth you
need - right?
Well, answer me this – are your team (and that includes you) helping
or hindering your goals? Now most businesses will hopefully
choose the former option, but they may not be being completely
honest and there is always, always room for improvement.
Training isn’t the only solution
Yes, your team need to be well versed in their roles. They need solid
training and constant up-skilling so that your brand delivers beyond
expectation and over and above the competition. But it’s not just
training that will make the difference in your sales. It’s the big ‘A’ for
“ATTITUDE” And before you tune out and think: “Oh, here we go,
another article on Attitude is Everything”, consider this.
What if there was a simple tool that you could introduce to your
workplace that could consistently shift your team’s attitude to
ensure your business growth?
Choose to make 2013 your best yeast.
Understand that marketing is not just about advertising. It is just as
important to make sure you market to your team and that as a team
you are employing positive marketing tactics in everything you do,
from answering the phone to dealing with clients. If you’d like to
get your hands on a free copy of our Attitude
Chooser Exercise email me at sally@tuskany.
co.nz today. I’d love to hear from you.
CONTRIBUTOR:
Sally Cooke
Brand Strategist and Marketing
Specialist Tuskany Agency
www.tuskany.co.nz
Attitude > Approach > Actions > Outcomes
It is undeniable. Attitudes affect Actions and Actions effect
Outcomes. Simple.
Take a look around you. Take a look at
yourself. If you have a positive attitude
your approach will be entirely different to
a negative attitude and as a result of your
approach your actions and the ultimate
outcome will be different. Everytime.
And this simple chain of events has the potential to affect your
sales; grow or diminish your business and your brand.
Get a free copy of our simple Attitude Chooser Exercise
At Tuskany, we have developed a simple yet effective way for you to
support your team in choosing a positive attitude of success.
It’s a simple exercise and results form that can be used in your
business to allow your team to acknowledge your core values
and aims and to ensure, every day, they step up to the plate and
approach their day from a positive position of excellence.
You know the feeling you get when you walk into a store, phone a
business or wander into a café or restaurant and the staff just don’t
seem that excited to see you? Well this exercise will ensure your
business does not fall into this negative, sales depleting realm.
9

FEATURE: GROWING ROTORUA
Our spirit of innovation
Leading the way
In January this year, we announced Rotorua’s “Wood First” initiative. This is
something we are proud to lead and as a local government body will be a New
Zealand first brought to fruition by working in partnership with key stakeholders like
yourself. As you may already be aware, ”changing perceptions” is a prime objective
to ”increasing Rotorua’s reputation as a leader in forestry and wood processing,
tourism, geothermal and agriculture” as per the Rotorua Sustainable Economic
Growth Strategy.
Rotorua’s “Wood First” is an exciting opportunity to further increase our destination’s
profile and leadership position, by maximising the amount of value added wood
used in the district’s development and upkeep.
“Wood First” acknowledges our past (as the birthplace of New Zealand forestry) and
it also celebrates our future (as being a living legacy). “Wood First” will encourage
a particular way of thinking and a new approach towards the implementation of
various projects. In doing so, it will remind us about Rotorua and the significance of
forestry and wood to our economy.
We aim to build on this position by not only promoting the use of wood, but in
particular, Rotorua wood products and services. The overall goal is to encourage
a cultural shift towards viewing wood as the first choice for construction, interior
design and daily living. Not only is wood durable, it is cost-effective and climate
friendly.
Rotorua’s “Wood First” initiative is also a step in the right direction towards making Rotorua a more sustainable city which is another priority for
us. With modern innovations in wood growing and harvesting, it is becoming a highly adaptable, sought-after organic and renewable resource.
There are many ways we will contribute to and drive this “Wood First” initiative. To start, we will lead this new way of thinking through our
own developments, in particular in the CBD revitalisation project. Here “Wood First” will be a fundamental component in not only improving
the appearance but also the form and function of the CBD. It make sense that Rotorua is seen and known as a world-class wood city and we
are confident that an initiative such as “Wood First” will be positively received as something visionary and leading across Australasia.
To find out more information email nick.dallimore@rdc.govt.nz or phone 3484199
Mark joins Grow Rotorua
Mark Smith joined Grow Rotorua at the beginning of January as Commercial Technology Manager. His role is focused on evaluating major new
technology and business opportunities that could be launched in the Rotorua district to grow the local economy. Here’s a quick bio about
Mark.
Mark has a PhD in Chemical and Materials Engineering from the University of Auckland. In the early part of his career he worked predominantly
in the aluminum and forest products industries in roles varying from technical/R&D to operational (Operations Manager at the Tasman Pulp
Mill) to strategic planning (Fletcher Paper). In recent years he has been involved in a number of roles relating to the commercialisation of
new technologies and running spin-out companies. These have involved products
as diverse as new wood product technologies (eg wood hardening, Thermowood),
in-line scanning equipment based on radiation and acoustics and, most recently,
telecare-based medical devices.
Francis Pauwells, CEO of Grow Rotorua, is pleased to have Mark on board and already
the two are working on a number of project investigations across the key four sectors
(Forestry, Tourism, Geothermal and Agriculture) within an overall strategic direction.
“These include the major role that iwi can and will play through investing in growth
opportunities and better utilisation of their precious resources. Most people would
agree that Rotorua is blessed with abundant resources and comparative advantages.
Our role is to work with many other organisations to develop and agree on the
investment initiatives that will underpin better GDP performance over the coming
years”, says Francis.
10

Our spirit of doing
Being proud of claiming our spaces
Rotorua is a leader in forestry, tourism, geothermal and agriculture. We need to promote more of our success stories, achievements and
competitive advantages to remind ourselves (as champions, leaders, employees and stakeholders) within each of these sectors how great
we are. It is also about educating audiences outside of each sector (the wider community, domestic and international). Creating ‘badges of
honour’ that can be used on printed and online media is one way of reinforcing this message.
The first badge acknowledges our forestry industry. These are not brands nor are they accreditation marks. The desired outcomes include:
• reinforcing our leadership position within NZ and overseas
• strengthening local pride and ownership
• complementing our local and external destination brands and campaigns
eg Rotorua-feel the spirit
• manaakitanga; Famously Rotorua
• local businesses, who also adopt a philosophy of “excellence and leadership”, can also the badge.
Rotorua is a centre of excellence and we’re going to claim it and be proud in doing so.
Other sector badges of honour will be rolled out over the next few months. To find out more email renee.nathan@rdc.govt.nz or ph 348 4199
Making it easier to access information
Providing you with relevant and timely business information is something we aim to
deliver on. We are working with Infometrics to receive reliable annual reports about
how Rotorua is performing across key economic indicators such as the economy, labour
market, productivity, business units, population and standard of living. You can access
the summary and full report of Rotorua’s Annual Economic Profile as at year ending
March 2012. Go to rotoruaNZ.com and click on the LIVE, WORK or INVEST tabs in the
top left corner. On the home page there is a direct link to the report under ‘Useful Tools’.
More than just way finding
Installation of the 17 Kia Ora Rotorua signs is currently underway. Each sign has a map
of the city and local history about the area or street.
All signs have a QR code offering specials, events and other relevant information within
that area. The purpose of these signs is to help increase traffic flow within the CBD,
help people find their way around the city and to learn more about Rotorua and what’s
on offer.
All 17 signs should installed by the end of February. Special thanks to Unison and
Waiariki’s School of Forestry for their involvement with this project.
11

Our community spirit
Proud and passionate about Rotorua
Did you know that we have New Zealand’s largest sporting event organiser
living in Rotorua?
Event Promotions is a professional event management company now based in
Rotorua after operating from Taupo since 1995. Event Promotions organise a
multitude of sporting events throughout the North Island each year including
running, walking, mountain biking and road cycling for individuals, teams and
people of all abilities attracting in excess of 35,000 competitors annually.
Murray Flemming is the owner of the company and he moved to Rotorua
because it has a more central base for their event portfolio. He is proud of
growing Event Promotions into the major event management company in
New Zealand it is today. As an event organiser Murray has found dealing with
Council and other Rotorua stakeholders pro-active and helpful. He’s finding
living in Rotorua to be outstanding and loves running and biking in the forest.
“Like many places there are positive and negative aspects, but for quality of life and the people, Rotorua is a great place” says Murray
Event Promotion Events:
Port of Tauranga Half, MOUNT MAUNGANUI
Prestigious and Iconic Half Ironman Distance Triathlon
Cateye Moonride – ROTORUA
Taupo Great Lake Relay – TAUPO
Kingsgate ROTORUA Off Road Half marathon & 10km
TAUPO to ROTORUA 100k Flyer
ROTORUA Marathon, half marathon & fun runs
Tough Guy & Gal Challenge
Mountain bike event
Running / walking event
Running / walking event
Road cycling event
Running / walking event
Extreme off road running event
PALMERSTON NORTH
AUCKLAND
WELLINGTON
ROTORUA
Jamis Day Night Thriller – TAUPO
Torpedo7 City to Surf 12km Fun Run / Walk - TAURANGA
Craigs’ Tinman Triathlon, MOUNT MAUNGANUI
Mountain bike event
Running / walking event
Olympic and Sprint Distance Triathlon
Share your story
We want to promote your story about why Rotorua is a great place to invest, work and live. If you would like your business to feature as a
profile story or have staff that love working for you and living in Rotorua, then we want to hear from you - email renee.nathan@rdc.govt.nz
CONTRIBUTOR:
Nick Dallimore
Economic Projects Manager,
Rotorua District Council
nick.dallimore@rdc.govt.nz
CONTRIBUTOR:
Renee Nathan
Economic Projects,
Rotorua District Council
renee.nathan@rdc.govt.nz
12

FEATURE: PROPERTY MANAGEMENT
In Admiration
of Property
Investors
I admire property investors…!
As a full time property manager and property
investor myself I am continually astonished at the
attacks, by some politicians, on owners of rental
property, so here is my (censored) response to them.
1. Property investors use their own capital; take the risk associated
with any investment- when the tenant doesn’t pay their rent
the owner still has a mortgage, rates and insurances to pay,
and the risk of losing all their equity becomes a possibility. I
regard non payment of rent as equal to shoplifting or burglary.
2. Investors are providing for their retirement and creating a nest
egg for their kids, reducing the likelihood they will become a
burden on the state.
or parasites getting fat on the back of the
downtrodden and less fortunate, but I suppose
in the current PC era I should not be holding
my breath!
CONTRIBUTOR:
Richard Evans
Director of Rotorua Investments Ltd.
Executive Director of The Leading
Managers of New Zealand Ltd.
3. They provide accommodation which might otherwise have
to be “State owned” to a population increasingly drawn
to renting, either by choice or necessity; State housing is a
massive drain on the Government coffers- if it were a business
it would gone into liquidation at birth!
4. Capital Gains Tax is an absolute charade designed by opposition
politicians to get cheap votes. The CGT would produce peanuts
in revenue as the vast majority of property investors never sell
(unless it’s a mortgagee sale and then there is no CG to tax) so
the fantasy figures being brandished are quite absurd.
5. The Labour and Green politicians have yet to grasp some real
home truths about a free market economy (actually I’m sure
they know the truth but choose to ignore it in the pursuit
of political power), so here are the truths and they are well
known, but well worth repeating here.
1. You cannot multiply wealth by dividing it.
2. You cannot legislate the poor into prosperity by legislating the
wealthy out of it.
3. What one person receives without working for, another
person has to work for without receiving.
4. Any government cannot give anything to anybody that the
government first has to take from someone else.
It’s a classic “politics of envy” assault which frankly brings into
disrepute those who choose to attack property investors. We
should be encouraging Investors to grow and expand and build and
help drive our economy forward, not putting them up as leeches
13

FEATURE: ASSET PREPARATION
Buying or Selling:
The Best Of Both Worlds
Most small and medium enterprises (SMEs) in NZ have 31 March
balance dates so most of us are rapidly closing in on the end
of another financial year. Most of us also have a pretty good
idea about how the year is going to finish up and how it will
compare to previous efforts.
Surprisingly, some business owners confess that they don’t know
how things are going until their accountants complete their end-ofyear
statements. Maybe this is blind indifference or just the classic
ostrich response to an uncomfortable situation. The results are
important for all sorts of reasons, not the least of which is how
the capital value of your asset is changing over time. If your sales,
margins and net profits are increasing, there’s a good chance that
the value of your business is improving. This in turn means better
access to finance deals with your bank, better opportunities to
consider acquisitions and a better price for your business when it’s
time to sell.
The reverse also applies and declining performance usually means
diminishing values, more difficult funding arrangements and fewer
buyers and sales opportunities. However, all is not lost. Sometimes
it can be demonstrated that, even if your business is not going as
well as it once did, there is still good value for a buyer who can see
how it may be a good strategic acquisition. Access to new products
or distribution channels, economies of scale, exclusivity agreements,
intellectual property – or simply taking out the competition - may be
good reason for your business to be a genuine target.
So it’s possible that you may find yourself on
either side of the buy/sell equation or even
with a foot in each camp.
Your desire and capacity to explore one or the other may be
determined by timing and by value and many business owners who
intended to buy or sell have ended up changing sides when an
alternate argument and an attractive offer are presented.
Either way, up-to-date information will be important, and being
well-prepared will pay off in the long run. First impressions count so
present your premises, your accounts and your aspirations as well
as possible. If you’re serious about buying or selling, make sure that
the other side knows it, as a perceived lack of desire to genuinely
reach an agreement can put others off.
Some business owners do not declare cash sales. $10,000 of
undeclared income in one year will save you $3,000 in tax but may
cost you around $30,000 in business value at sale time. It may also
give an impression of sub-par performance compared to industry
benchmarks, which may in turn invite more scrutiny and a less
favourable deal. This cost saving attempt is clearly false economy
and can be very dangerous tactically.
One of the biggest questions to be resolved is “How much?” What
value can you reasonably expect from the sale of your business
or what is a fair price to pay for someone else’s? These questions
do not have absolute, irrefutable answers. There are a myriad of
variables to consider and there is usually a significant amount of
negotiating to get to the result you want. Talking with a professional
who understands the vagaries of the SME market in NZ is a good
place to start.
At this time of year, buyer inquiry rates increase in anticipation of
full-year financial results being available. It can be a very good time
to be in the market and to take advantage of the greater numbers
of potential suitors for your business.
CONTRIBUTOR:
Paul Buer, Sales Manager
Affiliated Business Consultants Ltd
14

The Rotorua Chamber of Commerce and The
Business Hub in Hinemaru Street now offers
Hi-Speed Fibre
SMART SUITE
• 12 Networked Computers with additional master facilitator
computer with Windows 7, Office 2010, Skype, Headsets and
webcams on each computer.
• Interactive Smart Whiteboard overhead data projector.
• Skype-Pro installed for multi video audio conference
• Ultrafast Broadband for high speed internet access
• Technician available on request – a small additional charge may apply
Available for hire by any business: By the day $400 /
By the half-day $200 / By the Hour $100 per hour
What benefits can this facility be to your business:
Increasing your capability and productivity – Your trainer or Ours
up-skilling staff in Windows 7 and Office 2010
utilising today’s technology such as Cloud software and back-up storage systems.
Effectively using new presentation software such as Prezi.
Developing advanced budgeting and cash flow skills
using video clips and webinars
Buying in to a virtual office.
Increasing your connectivity by using Skype Pro for multi - participant video.
Conducting remote employment interviews
Engaging a remote international speaker
Conducting discussions with international trading partners
Coordinating a multi origin committee or board meeting
Seeking international specialist advice
To hire the Hi-speed Fibre Smart Suite
Contact Linda at the business Hub on 349 8333,
or the Chamber of Commerce on 349 8365
In association with Kinect, Ricoh and Principal Holdings, the Chamber has developed a high capability computer suite that
is available for hire by businesses in Rotorua. Rotorua is fortunate to have one of the best high speed fibre networks of any
provincial centre in New Zealand.
One of the Chamber’s family of sponsors, TrustPower and Kinect, provided high speed fibre in to the Business Hub. Principal
Holdings Limited, the property owner, has worked in partnership with the Chamber to install computer network and associated
display hardware to provide this advanced facility. Another of our family of sponsors, Ricoh came to the party to provide an
integrated document handler.
15

FEATURE: STRATEGIC MANAGEMENT
You’re Dreaming Mate!:
The New Zealand talent shortage and why top firms
are missing the point.
The results of the survey on talent shortage released by Manpower last year contained some extraordinary information
about New Zealand in comparison with the rest of the world.
The report highlighted that the most common global strategy for
overcoming the talent shortage is ‘providing additional training and
development to existing staff’ (25%), whereas in New Zealand the
most common strategy is ‘broadening search outside of country’
(19%). Only 17% of respondents are considering developing
existing staff, and another 17% don’t know what to do. Similarly,
whereas 12% of global respondents are appointing people without
job skills currently (but who have the potential to grow), only
6% of respondents in New Zealand are contemplating doing so.
Furthermore, although 9% of respondents are focussing on staff
retention, in New Zealand that strategy doesn’t appear, nor does
increasing the focus to improve the pipeline of talent (7% globally)
nor partnering with educational institutions to create curriculum
aligned to talent needs (7% globally).
Given the known shortage of skills, as featured in The NZ Herald
series of articles last year under the title “Skills crisis: tragic skills
mismatch shuts rising generation out of jobs”, this lack of forwardthinking
will have increasing negative consequences for New
Zealand.
Manpower conducted over 38,000 interviews with people in 41
countries. They found a global talent shortage – 34% on average –
and reported that the shortage is greatest in the Asia Pacific region.
Japan is in most deficit: 81% of respondents reported difficulty in
filling jobs. New Zealand is at 48%, the US at 49% and Australia
50%.
Yet, despite this global shortage of talent,
New Zealand companies apparently think that
sourcing offshore will be a more successful
strategy to reduce talent shortage than
developing and retaining staff.
As only 3% are considering increasing starting salaries, in contrast
with 8% overseas (and another 7% using benefits packages
including signing bonuses) it is difficult to see how New Zealand
companies would be successful in a global competition.
The mystery continues to be why New Zealand companies (those
surveyed anyway) are apparently so reluctant to develop staff. The
16

Ministry of Economic Development paper Management Matters
in New Zealand (released March 2011) reported a link between
enterprise productivity and the quality of management. It also
reported that New Zealand managers surveyed were ”average
to middling” by global standards – ranking tenth among the 17
countries in the survey. People management emerged as the
weakest area. The MED report suggested that management of
human capital through attracting, developing and retaining talent
is where most attention is required from both corporate leaders
and public policy.
The Mayor’s BA5
Although it takes time to change, and money is tight, money would
be more available if things changed – that is the conclusion of the
Boston Consulting Group (BCG). The report ”Realizing the Value of
People Management” acknowledges the difficulty of quantifying
the return on investment in people during budgetary cuts. However,
with the growing scarcity of talent and working relationships frayed
by economic pressures, the BCG suggested that it is more important
than ever that companies look after and invest in their staff.
The BCG research involved interviews with 4,288 managers. For
recruiting, ”on-boarding” new recruits, employee retention, talent
management, employer branding, performance management and
rewards, and leadership development, there was a strong correlation
between capability and economic performance. Companies with
good talent management, for example, experienced twice the
revenue growth and twice the profit margin of companies poor at
talent management.
Similarly, high performing companies are 1.7 times more likely to
have a leadership model which guides talent selection, promotion
decisions and talent development activities than low-performing
companies. This means that managers are promoted on the basis
of their individual performance as well as their people-development
activities. Of even more significance is that the top performing
companies make leaders’ compensation dependent in part on
the leaders’ people-development efforts approximately 3.4 times
as often as poor performing companies. In other words, the top
companies view their leaders as the frontline developers of talent.
It is clear then that New Zealand is lagging in the talent
competition. To achieve the global talent advantage indicated in
the ‘search offshore strategy’ requires a major change in mind
set and processes. Talent management needs to become a core
activity equal to strategic planning and corporate finance. Overseas
companies are working on a three to five year talent plan and
making links with tertiary education institutions in order to recruit
top students; they are also ensuring their employees are developed
and rewarded so that engagement is high.
District Plan Meeting
A COMPLETELY
DIFFERENT BREED OF
PRINTER
Engagement in New Zealand is low, falling from 42% in 2009 to
36% in 2012. A Right Management engagement benchmarking
survey of more than 2000 New Zealanders indicated last year that
disengagement in workers was extremely high. In the public sector
only 31% of employees are engaged, and in central government
that figure is 28%.
Disengaged people will be marking time and looking for other
opportunities – and there are many of them overseas. Fifty-three
thousand New Zealanders emigrated for a better lifestyle last year.
All the pointers indicate the same thing – New
Zealand managers need a shake up for the
benefit of everybody.
www.bcgperspectives.com
CONTRIBUTOR:
Jacqueline Rowarth is Professor of Agribusiness
at the University of Waikato Management School
a 248 Fenton Street, Rotorua I PO Box 1398, Rotorua 3040
p 07 347 8822 f 07 346 3006 e info@advocateprinting.co.nz
stand
ou !
t
17

chamber calendar
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
SUNDAY
events calendar
march
1
2
3
4
5
6
Women in
Business
Judith Stanway
7
8
9
10
11
18
12
BA5
Lakes Lodge
Okataina
19
13
14
15
Golf
Tournament
Kikstart
Aunty Annies
Cafe
20 21 23 24
22
16
17
25
26 27 28 29 31 31
BA5
Agrodome
Good
Friday
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
SUNDAY
1 2
3 4 5
Easter
Monday
Learnfast
6
7
8
15
9
BA5
Dudfield Bryce
16
10
Women in
Business
Dame Rosie
Horton
17
11
18
12
19
Kikstart
Princes Gate
13
20
14
21
22
29
23 25 26 27 28
30
BA5
QE Health
events calendar
april
18

FEATURE: CONNECTING WITH BUSINESS
Supporting
Young
Jobseekers
Until a few months ago, sleeping through the day then
sitting up all night eating junk food and playing X-Box was
a way of life for Raymond Johnson-Loye.
Alby Tipiwai and Raymond Johnson-Loye
The 19 year old says: “I felt crappy. Every day was the same as the
day before. The games kept my mind off the fact that I didn’t have
a job or money. I felt like I was losing faith in the future”.
Raymond’s Work and Income case manager referred him to Te
Waiariki Purea Trust’s Youth Placement Service. The service is
contracted by Work and Income to assist young people aged 18-
24 to find employment by providing work-focussed skills and
motivation.
After successfully completing the ten-day programme Raymond
was armed with the motivation and confidence to approach
potential employers. He approached Rotorua’s Copthorne Hotel to
offer himself as a potential employee.
“There was a job going in housekeeping and I got it! Now I have
something to wake up for”, he says. “Having a job makes me feel
good. It’s given me a great sense of accomplishment”.
Youth can access these training courses as well as Limited Service
Volunteers and Outward Bound.
Now is a good time for those employers looking to recruit as Work
and Income have a pool of motivated, work-ready people currently
available. In addition to the employment placement assistance
provided by contracted training providers, Work and Income has a
team of work brokers who work closely with employers. The service
is free.
If you are interested in employing a young person, wish to recruit
staff or to lodge a vacancy just give Sharlene McGregor a call on
(07) 921 8066.
CONTRIBUTOR:
Annie Ross
Work and Income
Raymond doesn’t have much time to play games now. If he is up
during the night it’ll be because the hotel’s only male housekeeper
is working shifts.
Te Waiariki Purea Trust’s course facilitator Alby Tipiwai says most of
the young people who participate in the Youth Placement Service
want to work. “They usually have a pretty good idea about what
they want to do, but aren’t sure about how to actually go about
getting a job”.
When referred to Alby, an initial assessment is carried out. This
provides a good idea of what the young person wants to do, and
gives Alby a platform to work from. “We then cover the basics
like how to complete a job application and how to dress for an
interview, right through to conquering the fear of cold-calling”.
The course doesn’t stop when the young person gets a job. “We
continue to support them through mentoring and in-work support,”
Alby said.
Raymond is one of many Bay of Plenty young people who have
participated or are currently participating in Work and Incomecontracted
training courses. Reducing unemployment, and
particularly youth unemployment, is a priority.
Work and Income jobseekers have a range of training and industry
partnership programmes available to them including Straight to
Work and TOPS foundation programmes. Under Job Streams, Skills
for Industry and Flexi-Wage employment programmes provide
short job-focused training for specific employment opportunities.
19

FEATURE: MANAGEMENT ACCOUNTING
Financing Your Business
How much and what type of finance a business need to survive is
unquestionably one of the most important aspects of management.
It is also the least well understood.
As a business grows it requires more resources. The money used to
finance a business comes from two sources, generally referred to as
equity and debt.
Equity is the capital injected into the business by its owners and
consists not only of the initial and any subsequent capital invested,
but also retained profits - that is, profits earned by the business and
reinvested in it, rather than being withdrawn.
Debt capital refers to borrowings made by the business and includes
not only long and short-term cash loans obtained from banks or
finance companies, but also short term credit provided by suppliers
of goods and services to the business. Debt also includes finance
provided by the way of leases or hire purchase to acquire plant and
equipment.
It is possible for a business to be financed totally by means of
debt. This, however, would generally be a very risky form of capital
structure, because unless the business enjoys very high margins and
has excellent cash flow, any decline in sales could mean an inability
to service the debt and therefore the end of the business. At the
other extreme, a business could be financed totally by equity. While
this eliminates financial risk, it also reduces the return that the
owners of the business receive from their investment.
To explain this, consider the following example:
Suppose a business generates a profit of $50,000 with an asset
base of $250,000. In other words, it’s achieving a 20% ROI (return
on investment). If all the assets (plant and equipment, receivables,
stock, etc) are financed by owners’ equity, then the ROE (return on
their equity) is also 20%.
However, if say $100,000 of debt is used to finance assets, which
means the owners only have $150,000 of their own capital invested,
and assuming that the interest on the debt is 10%, then the net
profit after interest charges would be $40,000. This yields an ROI of
16% and an ROE of 26%.
All things being equal, you will maximise your investment return
from using more debt. But, since all things are not equal in business,
the more debt you have, the higher the risk. There is always a tradeoff
between risk and return.
The availability of capital for any business is limited, and it therefore
follows that the growth rate a business can sustain and still survive
is also limited. In other words, a business that grows too quickly
will fail, and a business that grows too slowly will deny its owners
potential returns.
The fundamental issues which determine how quickly a business
can grow are:
1. The magnitude of its net profit and hence, market demand and
cost structure.
2. The willingness of the owners of the business to reinvest aftertax
profit to finance the additional resources.
3. The availability of debt finance. This depends on the capacity
of the business to service the debt, and the security that can be
offered to lenders.
Many people in small and medium-sized businesses believe banks
have an obligation to lend them unlimited amounts of money
simply because they have excellent profit potential. In fact the
reluctance of banks to make unlimited funds available in many
cases is a blessing in disguise. Unfortunately, this reluctance also
means that some extremely well-managed businesses, which have
excellent potential, are denied access to much-needed funds.
To determine how fast you can grow your business, you need to
look at your projected cash flow. You can only grow your business
as fast as your cash flow allows.
To manage your business you need to be
monitoring on a monthly basis:
• profit
• cashflow
• the critical success factors for your business.
CONTRIBUTOR:
Michelle Hill
Resolve Accountants
FREE Payroll Seminar for Employers
Do you know your obligations?
Do you manage the payroll?
Do you know someone that’s new to employing staff but
doesn’t understand their obligations?
• An introduction to paying staff and payroll obligations.
• What to keep on file for each employee.
• Know the difference between a contractor, an employee,
casual or part time?
• Annual leave, public holiday, sick leave, parental leave.
• Terminating employees and understanding their
entitlements.
• KiwiSaver—what employers must do and what to advise
employees.
• ACC—what to do if an employee is injured either at work
or away from work.
Take advantage of experts who will be on hand to help with
any payroll or employment issues you may be having.
WHEN & WHERE?
5 March 2013 : 4pm - 6pm
Distinction Hotel, 390 Fenton St, Rotorua.
For a non obligatory one hour free consultation to
discuss these concepts and how they apply to your business,
call us today.
20

FEATURE: FINANCE
Canterbury wage
hikes may lead to
inflation
GDP figures released at the end of last year confirmed the New Zealand economy stuttered in mid-2012. However, growth
looks to have picked up again leading into Christmas – business and consumer confidence have risen, the housing market
is robust, and the Canterbury rebuild is hitting its straps. That bodes well for stronger growth in 2013 and 2014. But, this
growth may be at the expense of an increasingly imbalanced mix of activity, particularly from 2014.
The Canterbury rebuild is progressing roughly in line with
expectations. But, Treasury and the Reserve Bank now estimate
the rebuild cost at $30bn, up from $20bn. We expect residential
building activity to accelerate through 2013 and 2014, with overall
activity peaking in 2015.
We have highlighted that the rebuild is likely to generate inflation
pressures over coming years. To date, these pressures have been
contained. For instance, the cost of new housing has risen by 10%
in the last year in Canterbury, but only 1.5% in Auckland.
The rebuild is driving labour shortages in Canterbury, while elsewhere
unemployment remains high. This fact indicates that Canterbury
employers are struggling to attract workers to the region at current
wage rates and suggests that wages may rise further. Eventually, we
expect these wage pressures to feed through to general inflation.
some speculation that the RBNZ could deploy its ‘macroprudential’
tools in the near future.
The RBNZ has said that these tools remain under development, and
that they would be aimed at addressing risks to the stability of the
banking system – which is not a looming concern. RBNZ Governor
Wheeler has also stated that “it may be appropriate to use monetary
policy to lean against the build-up of financial imbalances”. That is,
interest rates are also a ‘macroprudential’ tool, and could even be
the first cab off the rank.
Our view remains that the OCR will need to rise in coming years,
and by more than the market is currently factoring in.
CONTRIBUTOR:
Westpac
Economic Advisory Section
For now, though, inflation is low. Annual inflation stayed below the
1-3% target range in the December quarter. Most of the surprise
came via tradable goods, reflecting the continued strength of the
New Zealand dollar. With this in mind, we have shifted our forecast
of the first OCR increase from September to December 2013.
We expect improving world commodity
prices over 2013, particularly in dairy and
beef markets, to lead to a solid year for the
agricultural sector.
However, tourism and manufacturing continue to bear the full
weight of the high currency as these industries are not receiving
offsetting high world prices.
We don’t see any currency relief in sight; our forecast is for the
NZD to average around US$0.86 in 2013. Driving the currency
higher is strong international interest in NZD-denominated assets.
This interest likely reflects New Zealand’s relatively strong growth
prospects, and concerns about the inflationary risks from monetary
policy stimulus in some countries.
While the currency is holding back some industries, low interest
rates continue to fuel the housing market. House prices rose 6% in
2012, and we expect that will accelerate to 9% this year. Auckland
and Canterbury saw the biggest price increases last year, reflecting
their respective supply shortages, but prices have turned higher in
most regions.
The RBNZ is mindful of the tension between low inflation and the
emerging price pressures and financial stability risks from another
property boom. Indeed, recent statements from the RBNZ, as well
as the return of housing affordability as a social issue, have led to
21

FEATURE: THE BUSINESS OF EDUCATION
Becoming the country’s
institute of choice
It is my great pleasure to introduce myself to the Rotorua community
and share my growth aspirations for the community through my work
as international education director at Waiariki Institute of Technology.
Firstly I am very pleased to join the Waiariki rohe and the Rotorua
community as a migrant from Wellington. Rotorua is the tourist
Mecca of New Zealand. The city attracts millions of tourists from all
over the world every year. The city gracefully embraces people from
all cultures and offers something to everyone.
Rotorua is not only vibrant as a tourist destination but also is
proving itself to be a hot education destination for thousands of
aspirant students from all over the globe. Tourism and education in
the city have not only brought rich diversity to the region but have
also grown the region socially, culturally and economically. There
is better awareness, tolerance and willingness to embrace people
from other cultures and welcome everyone with dignity and pride.
The export education industry contributes approximately NZ$2.4
billion to New Zealand’s economy. This is a very significant
contribution and currently is the fifth largest export earner to the
country. The current government has set an ambitious target to
double this revenue in 15 years. While it is an ambitious target
it is certainly not impossible provided all of us – the education
providers, the regional councils, the New Zealand government
and the business community – work together to provide the best
experience to our current students in the country. It is well known
that word of mouth is the best way of marketing and brings in
more business if our customers are satisfied. This is absolutely true
in the international education industry.
At Waiariki, we are focussing exactly on this and we are committed
to provide the best educational and living experience to our
international students, visitors, guests and delegates.
We believe in providing high quality experience throughout the
student lifecycle from the time they have thought about studying
at Waiariki while still in their home country to the time they have
graduated and settled with their dreams realised.
Waiariki has developed a five year internationalisation strategy that
incorporates all aspects of the international business opportunities
and student experience. It is a very exciting phase of growth for the
Institute with our new chief executive Professor Margaret Noble who
brings with her extensive experience in trans-national education and
is committed to supporting the growth of international business at
Waiariki. I am already enjoying working with her and sharing her
aspirations for Waiariki in the international space.
Currently Waiariki has more than 1,200
international students from 27 countries
contributing approximately NZ$25 million to
the region. We are the third largest Institute of
Technology or Polytechic in New Zealand in terms
of international students and I strongly believe
that it is only a matter of time before we become
number one if we all work together as a region
and community.
We want to continue this growth trend and increase
our revenue to NZ$40 million in five years. We are
committed to managing this growth by being
proactive in seeking business opportunities from
a range of countries, continually improving our
admissions systems and processes, and pastoral
care service to provide the best experience to our
students, agents, onshore and offshore partners
and graduates.
I am very excited about the opportunities for
Waiariki, Rotorua and our region from offshore
and look forward to working closely with the
wider community and businesses to make
our institution and city the
“institution and city of choice”
for our international students
and partners.
CONTRIBUTOR:
Prabha Ravi
International Education Director
Waiariki Institute of Technology
22

FEATURE: BROADBAND INITIATIVES
Affordable Fibre
Set to Take Off
The Jargon, Demystified
UFB – Ultra Fast Broadband. Refers to the speed of the Internet
connection. There are many definitions of speed. The most common
one in New Zealand is anything above 25 Mbps (Megabits per second).
Fibre - A technology that uses glass threads (fibres) to transmit data.
A fibre optic cable consists of a bundle of glass threads, each of which
is capable of transmitting messages modulated onto light waves.
Cloud Computing – The practice of using a network of remote
servers hosted on the Internet to store, manage, and process data,
rather than a local server.
From medicine to mechanics, fibre offers benefits.
With the completion of its ultra-fast fibre optic network
in December, UnisonFibre is ensuring Rotorua has the
infrastructure to support economic growth in 2013 and
beyond. And with standard connection fees starting at
less than $200, fibre is an affordable option for businesses
both big and small.
UnisonFibre has completed construction of its ultra-fast broadband
(UFB) network in Rotorua, Hawke’s Bay and Taupo. Two-hundred
and twenty-three kilometres of high quality fibre optic cable has
been installed in the central business districts and industrial areas
of each region.
Unison Group Chief Executive Officer Ken Sutherland said the
Company is excited about the opportunities provided by the highspeed
network.
VoIP - Voice over Internet Protocol. VoIP is technology or set
of standards for delivery of telephone calls and other voice
communications over the Internet. It involves the conversion of
Analog voice signals to a digital form.
RSP - Retail Service Provider. A telecommunications or Internet
service provider selling retail products (phone, Internet packages,
storage, cloud computing solutions, etc.) to the market.
ADSL - Asymmetric Digital Subscriber
Line. ADSL is a method of transferring
data over copper telephone lines. It’s
what most businesses use now. ADSL
has limited speed based on distance
and will be phased out over time.
UnisonFibre’s quality standard
installation costs start at less
than $200.
CONTRIBUTOR:
Naomi Ferguson
Unison Fibre
“UnisonFibre’s superior fibre network is propelling businesses to
a new level with massive data capacity; allowing for enhanced
productivity through technology such as video conferencing, cloud
computing, Voice over Internet Protocol, disaster recovery planning,
and more.
“With over 300 customers already connected to the network, we
are confident that we will see more local businesses take up the
opportunity to further enhance their efficiency and profitability
through this great technology.”
Rotorua, Hawke’s Bay and Taupo are among the first regions in New
Zealand to have a completed business fibre optic network.
Mr Sutherland said continued support from the likes of Chambers
of Commerce and Councils will be key to growth in uptake and
realisation of the benefits afforded by the fibre network.
“With the completion of the fibre network in key areas of the
local economy, our regions are now positioned to take advantage
of current and future technologies to attract growth. People can
choose to base their office in a location to suit their lifestyle, while
remaining connected to the rest of New Zealand and the world.”
Around 6,000 businesses now have fibre passing by their door.
And for the majority of these customers, connection to the
network is straight forward and affordable. With ten retail service
providers (RSPs) now offering connection to UnisonFibre’s network,
businesses can source a competitive package that will best meet
their needs.
Many businesses that are using fibre for their total telecommunication
services are finding the switch to fibre cost-neutral, or in many
cases are even saving money.
23

FEATURE: INFORMATION TECHNOLOGIES
Online Backups
CONTRIBUTOR:
Russell Holland
e-vangelist with EC Websites
PO Box 42 Gisborne, NZ, 4010
In the Old Days there was an item of technology that lived in your corporate computer room called a tape
drive. This provided disaster recovery by writing the files on the computer system to a tape – which would
then be taken out of the tape drive and (in best practise) would be stored off-site in a safe place.
These tapes would hopefully never be called upon – but in some
cases of fire, earthquake or just a file being accidently deleted –
they would be used to recover the information and keep the
business running.
With the arrival of “zip drives” and portable hard drives a new way
of backing up information was presented – but even these drives
still need to be stored in a safe place away from your office to offer
the maximum in protection. There is little point in having backups
that stay in the same physical location as the computer that it backs
up – the event that causes the main computer to be useless could
also overtake the backup drive.
When broadband offered reasonable upload as well as download
speeds – web-based backup storage started to be used for
businesses to replace the tapes and portable hard drives.
An event such as the earthquakes in Christchurch showed many
businesses that their disaster recovery plans weren’t at their best
and the new versions of “cloud” backups are well worth considering
where your backup files are kept a long way from your office. There
are many providers that can be found with a simple Google search
for “online backups” but here are three that I use for my business:
• Dropbox.com – provides 2GB of free space which can be synced
automatically to a drive on your computer network and can
also be arranged in folders to keep things tidy. A folder (or just
a file) can be shared with other users too. The up-loader works
well and operates in the background.
• Google Drive – this used to be called Google Docs but now
caters for any sort of file that you want to upload to the service.
It offers 5GB of free space and can also be automatically synced
between your computer, smart phone or tablet and the cloud.
One of the better features of Google Drive is the ability to search
for text within a document stored in the system.
• Mega.co.nz – the new kid on the block. Mega provides 50GB of
free space and has a very simple and easy-to-use administration
system. It also secures your files with encryption so that Mega
itself can’t view them and any law enforcement agencies can’t
see them either. If you want to, you can still share your files with
others.
All three of the above offer paid upgrades for extra capacity and
Mega also has a great administration interface to tweak the upload
speed that you use when sending files to the service. With any of
these online backup providers you may need to watch the frequency
of the synchronisation that takes place – especially if you have your
mobile device logged into the service as well.
You may find that a file copied from your desk top up to the backup
provider – also gets copied to your mobile device through your
mobile data plan – not ideal if it is a large file.
From an order of operations or procedural process – simply copy
the files that you wish to back up to the “shared drive” of Dropbox
or Google Drive and the files will be copied up to the cloud. With
Mega – save the file and then login to the service and add that file
to your folders.
Each of these providers can give you some great peace of mind
when it comes to your off-site backups – regardless of the file type
that you want to save.
In the worst case scenario of losing your office to an event such as a
fire or earthquake – just buy a new PC or laptop, log into the backup
provider of choice and your files will be there – very quick and easy.
Let me know what you think at www.Facebook.com/WebfootNZ
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