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Business Plus<br />

n e w s , a d v i c e , l e a r n i n g a n d n e t w o r k i n g<br />

Official Publication of <strong>EMA</strong> Northern and Employers’ Chamber of Commerce (Central)<br />

Issue 72 - July 2010<br />

<strong>CELEBRATING</strong> <strong>EXPORT</strong> <strong>WINNERS</strong><br />

Budget 2010:<br />

Accounting implications<br />

<strong>In</strong> <strong>this</strong> <strong>issue</strong>:<br />

WECC/ ECCC Brand Consideration - Proposed Logo Variations<br />

Following on from our discussions and refinements to date, below are the proposed brand options to be used in all ongoing branded material & communication for WECC/ ECCC.<br />

Subject to your approval and confirmation of taglines for both entities, usage guidelines, final files in all standard formats and sample branded material will be prepared.<br />

WECC Version 1<br />

WELLINGTON<br />

E M P LOY E R S ’ C H A M E R<br />

O F CO M M E R C E<br />

■ How Fiji's economy is faring<br />

The voice of business in Wellington City<br />

■ Mediation, better than going to court<br />

■ How to buy/sell ETS credits<br />

WECC Version 2<br />

■ The 'P' word<br />

WELLINGTON<br />

E M P LOY E R S ’ C H A M E R<br />

O F CO M M E R C E<br />

The voice of business in Wellington City<br />

US fresh food exports<br />

ECCC Version 1<br />

face new barrier<br />

E M P LOY E R S ’ C H A M E R<br />

O F CO M M E R C E<br />

CENTRAL<br />

Your checklist for<br />

the GST changeover<br />

The voice of business in the Central Region<br />

ECCC Version 2<br />

E M P LOY E R S ’ C H A M E R<br />

O F CO M M E R C E<br />

CENTRAL<br />

The voice of business in the Central Region


No bull,<br />

and very little<br />

moolah.<br />

Ute RANGe*<br />

FRom<br />

$40,622 + ORC<br />

SpoRtwAGoN RANGe*<br />

FRom<br />

$43,087 + ORC<br />

CommoDoRe RANGe*<br />

FRom<br />

$41,217 + ORC<br />

CAptivA RANGe<br />

FRom<br />

$29,136 + ORC<br />

For a short time, we’re offering emA members incredible prices right across the Colorado and<br />

Ute ranges, plus great pricing across the range of Commodore Sedan, Sportwagon, Captiva<br />

and epica. No freebies, no gimmicks, no bull. Check it out at your local Holden Dealer today.<br />

holden.co.nz<br />

offers not available with any other offer or discount. offers valid while stocks last or until 31 July 2010<br />

at participating Holden Dealers. *excludes limited edition and special edition vehicles.


Business Plus<br />

is published for:<br />

<strong>EMA</strong> Northern<br />

159 Khyber Pass Rd, Grafton,<br />

Private Bag 92066 Auckland<br />

Ph: 09 367 0909 or 0800 800 362<br />

Email: ema@ema.co.nz Website: www.ema.co.nz<br />

Chief Executive: Alasdair Thompson<br />

Advocacy Manager: Bruce Goldsworthy<br />

Manager, Employment: David Lowe<br />

Manager <strong>EMA</strong> Learning: David Foley<br />

Manager <strong>EMA</strong> Events: Mauro Barsi<br />

Whangarei<br />

Myriam Heynen<br />

09 459 1501 mob 021 920 414<br />

Waikato<br />

Denis Quigan 07 839 2995 mob 027 203 0694<br />

Cor Speksnijder 07 853 0018 mob 027 203 0694<br />

Bay of Plenty<br />

Kim Stretton 07 577 9665<br />

Terry Arnold 07 575 8401 mob 021 662 656<br />

Rotorua<br />

Clive Thomson<br />

07 345 8122 mob 027 437 2808<br />

Employers Chamber of Commerce Central<br />

PO Box 1087 Wellington<br />

Ph: 04 473 7224 Fax: 04 473 4501<br />

Email: info@eccc.org.nz<br />

Website: www.eccc.org.nz<br />

Chief Executive: Paul Winter<br />

Gisborne: 06 863 2438<br />

Hawke’s Bay: 06 835 2522<br />

Taranaki: 06 759 4006<br />

Manawatu/Wanganui: 06 350 3395<br />

Nelson: 03 548 4528<br />

On the cover<br />

Bay of Plenty Polytech staff Anna-Marie Lawrence, Cynthia<br />

Verran and Kristina Nink came out to party for the Bay of Plenty<br />

Export New Zealand Awards late last month. The theme for the<br />

gala evening was the 'Roaring Twenties'. All the details of the<br />

winners are on page 23<br />

03<br />

12<br />

02<br />

04<br />

05<br />

06<br />

11<br />

20<br />

22<br />

23<br />

26<br />

08<br />

<strong>In</strong>terest, exchange rate holy grail no nearer<br />

Alasdair Thompson<br />

Growth consolidating<br />

Where/how do I get and sell credits for the ETS?<br />

Members save $275k in bulk buying tenders<br />

Job Ops 'very successful'<br />

Your checklist for the GST increase<br />

Music makes business hum<br />

Air freighted food to US faces new rule barrier<br />

Boats, beer and buildings: Fiji economy recovers<br />

BOP export award winners<br />

- Smartfoods Ltd<br />

- <strong>In</strong>terMed<br />

- GardyneHOLT<br />

Business Plus<br />

For <strong>this</strong> <strong>issue</strong> we are rebranding Business Plus in recognition of the<br />

new name and structure of the Employers Chamber of Commerce<br />

Central, previously <strong>EMA</strong> Central.<br />

ADVOCACY<br />

NEWS<br />

ADVICE<br />

<strong>EMA</strong> member<br />

Proud Moments<br />

noticeboard<br />

Protecting your staff & recruiting on Skype?<br />

Wayne Tait Photography<br />

04<br />

Employment chat<br />

CONTENTS<br />

Business Plus<br />

Editor<br />

Gilbert Peterson 09 367 0916<br />

Writer<br />

Mary MacKinven<br />

Published by<br />

TPL Publishing Services<br />

Project Manager<br />

Anthony Stead 09 529 3921<br />

Advertising Sales<br />

Colin Gestro (09) 444 9158<br />

colin@affinityads.com<br />

ISSN No. 1176-4953<br />

14<br />

17<br />

18<br />

19<br />

Financially sorted people good for business<br />

The 'P' word<br />

More from Dr Graeme Washer on men's health<br />

Releasing the pressure gently, with mediation<br />

Accounting implications of Budget 2010<br />

TECHNOLOGY<br />

24 Stretching your IT budget could be bad for business health<br />

people<br />

28<br />

1<br />

29<br />

<strong>EMA</strong>'s<br />

TAX TIPS<br />

2<br />

2<br />

3<br />

4<br />

Our Vision. Your Success<br />

PAGE 1<br />

5


NEWS<br />

Business Plus<br />

Where/how do I get credits for the ETS?<br />

Emission units can come from any<br />

number of sources – both domestic<br />

and international.<br />

The Government is issuing units<br />

(New Zealand Units) to tradeexposed<br />

emissions intensive<br />

businesses, and to foresters. They<br />

can sell these on a willing buyer/<br />

willing seller basis either through<br />

over the counter (OTC), trades<br />

over the phone, via a broker, or<br />

via an exchange, and to domestic<br />

compliance buyers (ie the power<br />

companies), or to offshore buyers.<br />

While foresters are able to sell<br />

offshore, no-one else can because<br />

under a price cap they could buy<br />

cheap and sell dear offshore. Some<br />

foresters are already doing <strong>this</strong> (e.g.,<br />

Earnslaw, see <strong>EMA</strong>Business+, June).<br />

Buyers can also go offshore to<br />

purchase units they require to offset<br />

their emissions, and <strong>this</strong> is a good<br />

thing because, if they can buy units<br />

cheaper offshore, <strong>this</strong> will drive<br />

down the overall cost of compliance.<br />

There will be non-forestry<br />

businesses with surplus units to sell<br />

domestically andthere is also a range<br />

of Kyoto units that can be bought<br />

and sold (CERs, ERUs, AAUs, etc,<br />

though some are subject to trade<br />

restrictions).<br />

How or where can ETS units be<br />

sold?<br />

We listed two local ones in the<br />

two-pager we circulated (see centrespread,<br />

May <strong>issue</strong> of <strong>EMA</strong>Business+)<br />

but also Westpac has just commenced<br />

trading.<br />

“<strong>In</strong>ternationally, there are heaps<br />

of options, but the obvious one is<br />

the European Climate Exchange<br />

www.ecx.eu/. All the big financial<br />

institutions trade carbon e.g.,<br />

Standard Bank, Macquarie Bank<br />

Limited etc.<br />

New all-in-one business software launched for SMEs<br />

Attache Software has launched a<br />

business solution combining accounting,<br />

payroll, business intelligence, customer<br />

relationship management (CRM), training<br />

and support within a single integrated<br />

package.<br />

Attaché Accounts All-<strong>In</strong>-One has all the<br />

typical systems required in a modern<br />

business, with an unconditional six month<br />

money-back guarantee.<br />

Kiwi-born Mike Rich, Managing Director,<br />

Attaché Software said: “The success or<br />

failure of an SME often rests on how well it<br />

manages its cash flow, debtors, stock and<br />

expenses. The data needs to be monitored,<br />

analysed and compared to benchmarks to<br />

provide real value, but few SMEs have the<br />

time or resources to do <strong>this</strong>.<br />

“Our objective is to offer all SMEs<br />

access to a similar quality and depth of<br />

operational business intelligence that<br />

larger enterprises have long taken for<br />

granted.”<br />

Attaché Software has research and<br />

development centres in Auckland and<br />

Sydney and employs 200 consultants in<br />

both countries.<br />

BIG/VER606/<strong>EMA</strong>1<br />

A win, win, win, win, win, win situation for our customers.<br />

v<br />

VER606 Bull ad 260x87 EMU.indd 1<br />

PAGE 2<br />

Business Plus Magazine - Exclusive news, advice, learning and networking


By Alasdair Thompson, Chief Executive, <strong>EMA</strong> Northern<br />

Business Plus ADVOCACY<br />

<strong>In</strong>terest, exchange rate holy grail no nearer<br />

(First published in NZ Herald, 7/7/2010)<br />

It’s great to see Labour state that the<br />

key to turning the economy around<br />

is to encourage exporters. (Business<br />

Herald 5/7/2010).<br />

To do that, says Labour’s finance<br />

spokesman David Cunliffe, monetary<br />

policy must change.<br />

The change he wants is to achieve<br />

lower, more stable interest rates as<br />

a means to achieving a lower, more<br />

stable NZ dollar. Were it that simple<br />

we would already have measures to<br />

do it!<br />

To achieve Labour’s objective we<br />

might ask why Mr Cunliffe places so<br />

much emphasis on monetary policy<br />

when a focus on fiscal policy could<br />

achieve the desired outcome faster?<br />

That is, if the Government were to<br />

cut its demand for revenue via taxes,<br />

more New Zealanders could afford<br />

to save more in a (compulsory)<br />

KiwiSaver scheme, and <strong>this</strong> would<br />

achieve higher domestic savings<br />

which would help stabilise interest<br />

rates and the exchange rate, which<br />

Labour says is essential. But would<br />

Labour countenance reducing the<br />

tax take?<br />

It is true that high New Zealand<br />

interest rates in the past have<br />

encouraged foreigners to seek them<br />

through the carry trade and other<br />

ways of buying the NZ dollar. <strong>In</strong><br />

turn <strong>this</strong> has pushed the exchange<br />

rate up. But many other factors also<br />

affect the volatility and price of the<br />

NZ dollar, and the biggest of these is<br />

the change in prices of other major<br />

currencies.<br />

Also, we should bear in mind that<br />

the NZ dollar is attractive partly<br />

because we have stable government<br />

and relatively low inflation while our<br />

appetite for borrowing offshore also<br />

pushes up the price of the NZ dollar.<br />

<strong>In</strong>deed we have been finding out<br />

lately that achieving a lower OCR<br />

in New Zealand will not necessarily<br />

result in reducing our interest rates.<br />

Furthermore, Labour’s plan to<br />

have the Reserve Bank further<br />

regulate (“increase”) our banks’<br />

capital adequacy, and hold a higher<br />

proportion of their liabilities<br />

in domestic deposits may have<br />

the unintended consequence<br />

of increasing the interest rates<br />

demanded by local savers compared<br />

to foreigners. That is, it could<br />

increase interest rate stability but<br />

also stifle bank lending to grow<br />

businesses.<br />

Nevertheless Labour is right to<br />

review things like these that will<br />

lead to a greater reliance on our<br />

own savings funds rather than those<br />

of foreigners. Likewise, its view that<br />

inflows of foreign money could be<br />

taxed to discourage them bidding<br />

up the price of the NZ dollar isn’t<br />

new. Brazil, for example, has such a<br />

tax, but again it’s no silver bullet for<br />

them and it may also discourage the<br />

very type of foreign investment we<br />

want to help build our economy.<br />

One really important thing Mr<br />

Cunliffe did not mention is that<br />

monetary policy alone cannot<br />

simultaneously do all things. It needs<br />

friends in government so that the<br />

ever-increasing demand for more<br />

revenue is held back, and the value<br />

of government spending becomes<br />

more productive. These things,<br />

more than anything Mr Cunliffe has<br />

suggested, will help lower interest<br />

rates and maintain the NZ dollar<br />

within a reasonable, stable range of<br />

prices.<br />

Growing your business through R&D<br />

How to access Government Funding<br />

Register<br />

Now<br />

Breakfast Seminar<br />

The Government has committed an extra $234 million over<br />

four years to support businesses to undertake R & D.<br />

A total of $75 million for 2010/11 is available through the TechNZ business<br />

programme, delivered by the Foundation for Research, Science, and Technology.<br />

ero.co.nz/win<br />

Friday, July 16 2010, 7.15am - 9.00am<br />

$45.00 + GST ($50.63)<br />

The Pakuranga Hunt Room, Ellerslie Event Centre<br />

80-100 Ascot Ave, Greenlane East<br />

Please note: Free parking is available within the grounds<br />

Please register by July 14 to Julie Brough<br />

by email julie.brough@ema.co.nz or<br />

phone (09) 367 0913<br />

21/05/10 10:17 AM<br />

Our Vision. Your Success<br />

PAGE 3


NEWS<br />

Business Plus<br />

Members save $275K in bulk buying tenders<br />

<strong>In</strong> the last six months, members<br />

have cut their utilities costs by over<br />

$275,000 after joining <strong>EMA</strong>’s bulk<br />

utilities tenders. (Want to join them?)<br />

A rolling schedule of bulk tenders<br />

for electricity, gas/LPG and waste<br />

management services means even<br />

greater savings are up for grabs in the<br />

coming six months.<br />

“It doesn’t matter when your<br />

utilities contracts are up for renewal<br />

as you should register now for our<br />

bulk tenders and your company will<br />

be automatically included in the next<br />

tender closest to your renewal date,”<br />

said <strong>EMA</strong>’s Gilbert Peterson.<br />

“It means you can leave the<br />

experts to focus on the tender<br />

process while you get on with core<br />

business.”<br />

Mc<strong>In</strong>tosh Timber Laminates MD,<br />

Grant Mc<strong>In</strong>tosh appreciates the<br />

benefits from being involved in the<br />

second electricity tender. He said:<br />

“Using TUMG in conjunction with<br />

<strong>EMA</strong> bulk tender process to source<br />

our new electricity provider was a<br />

valuable experience for Mc<strong>In</strong>tosh<br />

Timber Laminates Ltd. Our<br />

predicted savings per annum are<br />

approximately 11%, which will more<br />

than cover our <strong>EMA</strong> membership<br />

for a year. The process was promoted<br />

well andwas pretty painless in terms<br />

of the time involved.”<br />

All you have to do to participate<br />

in the bulk tenders is register online<br />

at TUMG’s store on E-MArket<br />

(hosted on www.ema.co.nz). The<br />

process automatically verifies your<br />

<strong>EMA</strong> membership and qualifies<br />

you for a 20% discount off TUMG’s<br />

one-off brokering fee. The fee is<br />

performance related so if there are<br />

no savings there’s no fee.<br />

Then supply a copy of your<br />

monthly account and a signed<br />

authority form to TUMG and they<br />

will do the rest.<br />

David Blair, Support Services<br />

Manager at Kapiti Retirement Trust<br />

found the process straightforward.<br />

“Participating in the bulk tender<br />

was very easy and we achieved<br />

good savings. It’s great to see <strong>EMA</strong><br />

providing services that directly help<br />

members cut costs.”<br />

July four day specials (13th to 19th July) on <strong>EMA</strong>rket<br />

Ultra Slim 20” LG monitors for $229<br />

50 units available to members on a first come, first served basis over four days only.<br />

Full HD monitor that delivers the brilliant colors, deeper blacks and better energy efficiency of LED<br />

backlighting technology. And, with its Ultra Slim Design, it's as sleek as it smart.<br />

RRP $249 ex GST. Price excludes GST & Freight<br />

PRODUCT FEATURES: • LED Backlighting • 1600 x 800 Resolution • Photo Effect • 4:3 Wide<br />

• Energy Star Rated • 3 year onsite service<br />

Go to Maclean Computing’s storefront on <strong>EMA</strong>rket (hosted on www.ema.co.nz)<br />

Dynamix UPS for $133<br />

10 units available to members on a first come, first served basis over four days only. Protect your<br />

computer, data center, telecommunication and other equipment from data loss in the event of an<br />

unexpected power disruption.<br />

Model UPS1000CL<br />

RRP $195.55 ex GST. Price excludes GST & freight<br />

PRODUCT FEATURES: • Rated power 1000VA/600W • 4 sockets • Net weight 13kg • Dimensions<br />

120 x 300 x 190mm<br />

Go to Resolution AV’s storefront on <strong>EMA</strong>rket (hosted on www.ema.co.nz)<br />

16GB Flash drives for $58<br />

25 units available to members on a first come, first served basis over four days only.<br />

RRP $68.45 ex GST. Price excludes GST & freight<br />

PRODUCT FEATURES: • High speed USB 2.0 interface • Maximum Data Transfer Rate of<br />

480Mbit/s<br />

• Easily & conveniently transfer of files between computers • Plug and play, hot swappable • No drivers<br />

needed for Windows ME/2K/XP/Server2003/Vista<br />

Go to Resolution AV’s storefront on <strong>EMA</strong>rket (hosted on www.ema.co.nz)<br />

All offers open at 9am on 13th July and close at 5pm on 19th July 2010.<br />

PAGE 4<br />

Business Plus Magazine - Exclusive news, advice, learning and networking


By Marie Hasler, <strong>EMA</strong><br />

Job Ops ‘very successful’<br />

The Job Ops scheme launched<br />

11 months ago has kept more<br />

than 5000 young people in<br />

work when they may have<br />

otherwise been unemployed<br />

and on a benefit.<br />

Employers have reported<br />

positive feedback on the<br />

scheme with many taking on<br />

a young person through Job<br />

Ops because they needed a<br />

worker but felt they couldn't<br />

afford it. So the subsidy was<br />

essential.<br />

Many say they felt they were<br />

taking a punt on a young<br />

person but were actually<br />

surprised at the results when<br />

young people stood up and<br />

engaged with the job, and<br />

impressed their employer and<br />

colleagues.<br />

Three-quarters of those<br />

who finished their placement<br />

remained in work, a positive<br />

result.<br />

Because of the success the<br />

Government announced in<br />

Budget 2010 an increase in<br />

funding of $26.7million to<br />

double the places available<br />

from 6,000 to 12,000.<br />

Though New Zealand<br />

is technically out of the<br />

recession, the latest benefit<br />

figures show 18,484 young<br />

people are currently on<br />

welfare.<br />

Last year employer demand<br />

started slowly but the<br />

scheme's popularity quickly<br />

grew and uptake since has<br />

been consistently strong.<br />

Business Plus NEWS<br />

Job Ops stats to 31 May 2010<br />

Job Ops targets unskilled and unemployed 16<br />

to 24 year olds with low or no qualifications and<br />

pays subsidises to employers of $5,000 for each<br />

young person hired into a newly created entry level<br />

position.<br />

Social Development Minister Paula Bennett<br />

announced an extra $26.7 million in Budget 2010<br />

to double the places available from 6,000 to 12,000.<br />

5,339 positions have been filled putting the scheme<br />

on track to fill 6,000 places by June 30. Of the 1247<br />

who completed the scheme:<br />

n 665 (53.3%) are employed full time by their Job<br />

Ops employer<br />

n 51 (4.1%) are employed part-time by their Job<br />

Ops employer<br />

n 203 (16.3%) are employed full-time elsewhere<br />

n 9 (0.7%) are employed part-time elsewhere<br />

A total of 928 (74.4%) of young people who<br />

completed their participation by 31 May 2010 had, as<br />

atJune 9, secured employment.<br />

Of the 815 who finished their participation<br />

early, 95 did so because they secured employment<br />

elsewhere and 45 because they were moving into<br />

training or education.<br />

Reducing your<br />

running around costs<br />

The Caltex StarCard ® * gives you competitive<br />

discounts off petrol and diesel at most Caltex<br />

and Challenge Service Stations and Diesel Stops.<br />

The Caltex StarCard ® system also gives you a<br />

variety of billing and reporting options to record<br />

your fleet’s transactions.<br />

The Caltex StarCard ® allows you to manage your<br />

cash flows and gives you up to 55 days free credit.<br />

To find out more contact Caltex Customer Services<br />

(on 0800 733 835 or nzservice@chevron.com)<br />

or download an application form from the<br />

<strong>EMA</strong>dvantage section of www.ema.co.nz.<br />

Caltex StarCard ® *<br />

terms and conditions apply, available from www.caltex.co.nz.<br />

CTX 1603 <strong>EMA</strong> StarCard Ad_04.indd 1<br />

Our Vision. Your Success<br />

5/5/10 3:31:59 PM PAGE 5


NEWS<br />

Business Plus<br />

Your checklist for the GST increase<br />

By Garth Wyllie, <strong>EMA</strong><br />

While some core <strong>issue</strong>s around the<br />

upcoming GST increase will perplex<br />

some businesses, two fundamental<br />

considerations apply to everyone. These<br />

are whether to:<br />

1. Pass on the increase which is<br />

actually a net increase of around<br />

2% on a current retail price, or<br />

2. Absorb the increase for now<br />

(through improved efficiencies,<br />

better buying of inputs/materials<br />

or products, and getting suppliers to<br />

take a hit on their prices.)<br />

As for the mechanics of applying the<br />

increase , every manufacturer, supplier,<br />

service provider and retailer needs to<br />

consider the following factors:<br />

1. Transition pricing (when you<br />

lift your prices to accommodate<br />

the increase)<br />

2. Physical pricing changes:<br />

(particularly for retailers who will<br />

need to re-price all shelf stock at<br />

the changeover time) and RRP<br />

pricing for suppliers/service<br />

providers<br />

3. Separation of the old GST inputs<br />

and the goods they apply to before<br />

the change date, from the new<br />

GST inputs and their supply after<br />

the GST implementation date<br />

(This may require stocktakes at the<br />

change date but also accommodate<br />

the accounting for goods where<br />

invoicing is ahead of the change<br />

but the physical supply is after it.)<br />

4. Advertising to show clear<br />

price changes if they occur<br />

in your advertising before the<br />

implementation date so consumers<br />

and those purchasing services are<br />

fully aware of the end date of your<br />

present advertised prices. Web site<br />

pricing will be a challenge for<br />

those that don’t have fully back<br />

end integration!<br />

5. Accounting/Software: Changes<br />

in accounting and POS systems<br />

are needed to ensure that, at<br />

the change date, there has been<br />

both a close off for the old rate,<br />

and an opening of the ledger<br />

with the new rate, with the data<br />

flowing through to POS. (This<br />

is particularly relevant for those<br />

in retail where errors may not be<br />

tolerated under the Fair Trading<br />

Act)<br />

6. Partial pricing: When part<br />

of a job or service or sale is<br />

charged at the old rate and part<br />

is charged at the new rate. This<br />

often applies to service agreements<br />

for domestic supply more than<br />

in the commercial arena, but it<br />

also affects layby, and may have an<br />

impact on quoted jobs where GST<br />

inclusive was stated, or in domestic<br />

building/renovation projects.<br />

For example standard quote terms<br />

may apply only for a period stipulated<br />

and they may need to be modified as<br />

the change date approaches, or if the<br />

likely performance of the quote is to<br />

take place after the change date.<br />

Quotes from now on should show<br />

two sets of GST to make <strong>this</strong> clear, or<br />

the GST amount not shown.<br />

A failure to show GST on a<br />

domestic quote may be in breach of<br />

the Fair Trading Act unless it is clear<br />

that GST will be charged and there<br />

is a reasonable understanding by the<br />

consumer that GST will be charged.<br />

None of <strong>this</strong> is rocket science but<br />

all <strong>issue</strong>s have to be considered and<br />

checked off in a tick box fashion.<br />

Business concerns about technical<br />

<strong>issue</strong>s involved with the increase<br />

of GST to 15 per cent got their first<br />

airing last month when a group of<br />

Government-appointed specialists met.<br />

Revenue minister Peter Dunne said<br />

the GST Advisory Panel would act as<br />

a conduit between business and the<br />

Government.<br />

Tax accountants have said larger firms<br />

and retailers with complex computer<br />

systems could struggle to meet the<br />

October 1 deadline for increasing GST.<br />

A dedicated website is being launched<br />

as well as an 0800 freephone number.<br />

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Nelson Maree Kirk Napier Elizabeth <strong>In</strong>ger<br />

Palmerston North Leile Sims<br />

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New Plymouth Mikaela Harker<br />

PAGE 6<br />

Business Plus Magazine - Exclusive news, advice, learning and networking


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Employment chat<br />

What employers are asking AdviceLine <strong>this</strong> month<br />

What you need to do to protect your staff and...<br />

Q. How much am I expected to<br />

protect my staff who work in frontline<br />

positions dealing with the public?<br />

What if someone comes in with a gun<br />

and demands money, for example? Am<br />

I liable if anything goes wrong and my<br />

employee gets hurt? What if they are<br />

just yelled at by a nasty customer and<br />

get stressed? – Marion<br />

Dear Marion,<br />

Basically, yes, you are required to<br />

protect your staff. Under the Health<br />

and Safety in Employment Act 1992<br />

you need to take “all practicable steps”<br />

to ensure employees are not harmed<br />

while at work which effectively means<br />

that everything that can be done<br />

should be done to keep employees<br />

safe.<br />

You need to identify workplace<br />

hazards and potential hazards and<br />

manage them. If a hazard cannot be<br />

eliminated it needs to be isolated<br />

or minimised. You also need to<br />

develop procedures for dealing with<br />

emergencies.<br />

Employees also have a role to play<br />

in health and safety so you need to<br />

involve them in health and safety in<br />

the workplace.<br />

Management of hazards takes many<br />

forms. What is appropriate will depend<br />

on the circumstances, but you need<br />

to be satisfied you have taken “all<br />

practicable steps” to ensure the safety<br />

of your employees.<br />

For example, if you are a bank or<br />

handling large amounts of cash (high<br />

risk) you may have bullet-proof glass<br />

around your cashiers and probably<br />

other physical barriers, and provide<br />

training for dealing with a potential<br />

incident.<br />

<strong>In</strong> a retail or café type situation, and<br />

certainly in health care, employees can<br />

be quite exposed to all types of assault.<br />

Providing appropriate training should<br />

assist.<br />

Training could include customer<br />

service courses that cover dealing with<br />

conflict and difficult people, and as<br />

well as tricky situations that can arise.<br />

The training should provide<br />

employees with skills to equip them<br />

to prevent most altercations if they<br />

escalate to a threatening level.<br />

Training would include an awareness<br />

of when to remove oneself before<br />

things got nasty. Staff should feel<br />

supported in doing what might<br />

superficially appear being rude to a<br />

client/patient.<br />

Terminal tax is a beast. Managed poorly it can savage your cashflow, with penalties for underpayment and lost returns<br />

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Call Tax Management NZ now on 0800 829 888 or for more information visit www.tmnz.co.nz<br />

TMNZ/G<br />

PAGE 8 Business Plus Magazine - Exclusive news, advice, learning and networking<br />

<strong>EMA</strong> H/P.indd 1<br />

25/1/10 10:48:55 AM


Employment chat<br />

What employers are asking AdviceLine <strong>this</strong> month<br />

...Recruiting on Skype?<br />

<strong>In</strong> relation to stress, the health and safety legislation<br />

defines the terms ‘hazard’ and ‘harm’, which includes<br />

physical and mental harm caused by work related<br />

stress and fatigue. Systems for handling complaints, and<br />

supporting stressed staff need to be adhered to and kept<br />

up to date.<br />

<strong>In</strong> terms of liability after a traumatic or stressful event,<br />

carefully debrief and support your staff – those directly<br />

involved in any incident as well as witnesses and perhaps<br />

all staff, or morale could suffer.<br />

Staff may need time off. You could offer post-incident<br />

support and counseling through, for example, Workplace<br />

Support. Afterwards, when your employee is ready and<br />

after any police interviews and urgent medical treatment<br />

– perhaps after a few days – you need to ask them<br />

what happened, and how it could have been prevented<br />

in their view. Changes to your physical workplace or<br />

procedures or training might be required.<br />

A range of insurance options are available to cover for<br />

key staff in their absence and for other people liabilities<br />

as well as for damaged physical assets.<br />

register on the site.<br />

Users contact each other via the site, so make sure your<br />

Skype ‘account’ settings show you are online and allow<br />

you to be seen and not just heard!<br />

The caller selects the receiver’s registered Skype name<br />

(often the person’s real name but it can be a pseudonym)<br />

or phone number. Select the ‘video’ option rather than<br />

‘call (voice only)’.<br />

By the <strong>EMA</strong> Advocacy team in consultation with <strong>EMA</strong> Advice,<br />

and based on real calls to <strong>EMA</strong>’s AdviceLine.<br />

The information in <strong>this</strong> article is a guide only and not to be<br />

used as business advice without further consultation.<br />

Start with our AdviceLine team at phone 0800 800 362 (within<br />

New Zealand), 1800 300 362 (from Australia) or 09-367 0909<br />

(for <strong>EMA</strong> Northern) or 04-473 7224 (for <strong>EMA</strong> Central), 8am-8pm<br />

weekdays. Alternatively, email adviceline@ema.co.nz, and<br />

read or download information such as the A-Z of Employing –<br />

a manager’s guide on more than 100 specific topics, at www.<br />

ema.co.nz/advice<br />

Q. I’m thinking of interviewing a candidate on a Skype<br />

video chat but am not familiar with Skype or <strong>this</strong> kind of<br />

‘distant’ communication. Can you give me any guidance?<br />

- Julie<br />

Dear Julie<br />

Online video chat is available free through Skype<br />

and Google and these are increasingly popular ways<br />

to interview candidates, e.g., if they are overseas. The<br />

technology is pretty good – the picture and sound very<br />

clear.<br />

Take account of the fact that you and possibly<br />

the candidate are new to <strong>this</strong>, which might add a<br />

nervousness factor to the communication.<br />

But it is one step better than a phone call in terms of<br />

‘getting close’ to each other; you have extra clues from<br />

body language such as smiling and eye contact, and<br />

dress/style.<br />

The experience is quite personal as there are just the<br />

two of you face-to-face (although you could fit others<br />

into the screen view, perhaps in the background and<br />

who could move closer to the web cam if they needed<br />

to take centre stage).<br />

Consider your own surrounding environment – what’s<br />

on the wall behind you, for example? And theirs.<br />

I’m not a techie but I can advise you that you just<br />

open skype.com and follow the instructions to sign up/<br />

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PAGE 9


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Music makes business (and employees) hum<br />

Music is clearly valuable for attracting<br />

and retaining customers, and motivating<br />

staff. It can even allow businesses in<br />

some circumstances to charge a premium<br />

for their product or service. So what<br />

would you think such a service is worth?<br />

What would you pay for it?<br />

A recent UK survey found over 80%<br />

of people like to hear music when<br />

they eat out in cafes and restaurants,<br />

visit retail stores, gyms or have a hair<br />

salon appointment.<br />

But are businesses prepared to pay<br />

recording artists and record labels for<br />

their contribution?<br />

Its easy to do. They simply apply for<br />

a PPNZ Public Performance Licence.<br />

The licence allows them to play music<br />

to their customers, knowing that those<br />

who performed and recorded it will be<br />

paid a royalty for their work.<br />

Like many small businesses,<br />

recording artists are increasingly “owner<br />

operated”. Many NZ based artists now<br />

record their own work and retain the<br />

copyright of their sound recordings.<br />

While they may sell their work<br />

on-line or in-store, and play to live<br />

audiences, they also rely on royalties<br />

from public performances to add to<br />

their overall income.<br />

One prominent local artist said:<br />

“Survival as a musician has always been<br />

challenging and it has become even<br />

harder over the last few years as the<br />

value of recorded music has declined.<br />

“A musician needs multiple income<br />

streams to survive and performance<br />

income and producer royalties are<br />

hugely important elements in the mix.”<br />

Through PPNZs Recording Artist<br />

and Producer Fund, NZ based artists<br />

and labels receive annual royalties direct.<br />

The scheme now has over 1,600 artists<br />

and labels.<br />

The PPNZ is not-for-profit. It<br />

distributes $9 out of every $10 back<br />

to its members each year. The cost of a<br />

music license for most small to medium<br />

sized businesses is just 43c per day.<br />

The online licence form at www.ppnz.<br />

co.nz takes few minutes to complete, or<br />

phone toll-free 0800 88 77 69 to talk with a<br />

PPNZ Licensing Rep.<br />

Our Vision. Your Success<br />

PAGE 11


By Business NZ’s CEO Phil O’Reilly<br />

The last thing you<br />

need is another<br />

benefit, but...<br />

You know the value<br />

of a meaningful<br />

employee benefits<br />

package in helping<br />

to attract and retain<br />

good employees.<br />

The good news for you is that at<br />

TOWER, we’ve rationalised the<br />

whole process by bringing a wide<br />

range of benefi ts together, making<br />

it simple for you – with one point<br />

of contact to manage an employee<br />

benefi ts package tailored to your<br />

organisation.<br />

We have experience in managing<br />

employee benefi ts solutions for over<br />

300 employers.<br />

You can choose a solution that suits<br />

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Trauma/Crisis cover<br />

To discuss how we can help you,<br />

contact us on 0800 755 556 (press 3)<br />

or employee.benefits@tower.co.nz<br />

Growth consolidating<br />

Growth is consolidating - <strong>this</strong> could be the main theme of New<br />

Zealand’s economy in mid-winter 2010.<br />

With the darkest days of the global financial downturn behind us,<br />

we’ve been eagerly awaiting the return of the golden weather.<br />

It’s not here yet, but the signs are at least reasonably promising.<br />

Sales are flat in many sectors - a situation that could well continue<br />

until the events of October shake things up.<br />

Many existing businesses weren’t around the last time GST<br />

was increased in 1989 and may be nervous of the impact of the<br />

upcoming GST increase in October.<br />

But in 1989 there wasn’t a big dip in sales, and moreover <strong>this</strong> time<br />

round the GST rise will be offset by tax cuts.<br />

Reductions in personal tax from October will mean more money<br />

in circulation, likely to be good for small businesses and retailers.<br />

The big question will be whether the stimulation of the tax cuts<br />

will be greater than the general buying caution we see now.<br />

<strong>In</strong> any case, New Zealanders’ prosperity is strongly affected by<br />

global events.<br />

By necessity we are an exporting nation, as our population of four<br />

million is too small, by itself, to sustain first world level growth.<br />

The big question will be<br />

whether the stimulation of the<br />

tax cuts will be greater than<br />

general buying caution.<br />

Fortunately, recent export returns have been reasonable even<br />

through the worst of the global economic downturn, and are likely<br />

to continue at least in the medium term.<br />

This year we experienced our first annual trade surplus since 2002.<br />

What’s more, our two largest trading partners, Australia and China,<br />

are in growth mode.<br />

China, which only recently became our second largest trading<br />

partner, occupies a pivotal position in terms of New Zealand’s<br />

economic future.<br />

There is some nervousness about a number of high profile<br />

Chinese attempts to buy New Zealand farms and other assets (despite<br />

similar New Zealand interest and involvement in commercial<br />

enterprises in China).<br />

This is something New Zealand is going to have to work through.<br />

Foreign investment and ownership is the inevitable result of New<br />

Zealand’s high debt levels.<br />

The Government is showing commendable fortitude in seeking to<br />

reduce public debt. Hopefully more businesses and individuals will<br />

follow <strong>this</strong> lead in reducing private debt.<br />

Higher export levels, higher productivity and reduced debt are the<br />

best way to help us invest more in enterprise both here and abroad.<br />

PAGE 12<br />

Business Plus Magazine - Exclusive news, advice, learning and networking


Foreigners have more than twice<br />

as much invested in New Zealand as<br />

we have invested overseas and turning<br />

<strong>this</strong> statistic around will be to our<br />

advantage.<br />

Also important for prosperity is<br />

keeping a tight rein on inflation.<br />

As the economy continues to pick<br />

up and as tax cuts flow through the<br />

economy, pressure on prices is likely to<br />

increase, so rising interest rates are likely<br />

to be part of the mix at least in the<br />

short term.<br />

<strong>In</strong> light of all <strong>this</strong>, what could we be<br />

doing better?<br />

The Government has made some<br />

positive moves, including tax cuts, plans<br />

to reduce debt and promises of reduced<br />

government spending. Also positive<br />

is the plan to set up a Productivity<br />

Commission – a much needed focus<br />

given New Zealand’s poor productivity<br />

record.<br />

Other areas for improvement should<br />

include doing something about the<br />

expensive Working for Families policy<br />

which can act as a disincentive to higher<br />

value enterprise, and the interest-free<br />

student loan policy which is a relatively<br />

unproductive use of taxpayer dollars.<br />

Another good move would be<br />

getting a Regulatory Responsibility<br />

Act to achieve adherence to principles<br />

of good law making and more use of<br />

cost-benefit analysis when determining<br />

whether new legislation is warranted.<br />

This would be a key measure in<br />

reducing low quality legislation that acts<br />

as a drag on the economy.<br />

What could we do better as<br />

businesses?<br />

Enhancing productivity levels - by<br />

innovation or improved efficiency -<br />

would go a long way towards improving<br />

economic growth. <strong>In</strong>vesting in skills<br />

Phil O’Reilly<br />

training and productivity-enhancing<br />

equipment is part of that.<br />

Reducing and retiring debt and<br />

seeking to turn more of our goods<br />

and services into high value, branded<br />

exports are essential.<br />

Our current situation is one of<br />

consolidating growth but we can do<br />

better by setting our sights on the things<br />

that will bring faster, more dynamic<br />

economic growth.<br />

BusinessNZ has launched a<br />

new online resource to help<br />

manufacturing businesses to<br />

raise their game. A key initial<br />

feature allows manufacturers to<br />

search the R&D, prototype work<br />

and business services carried<br />

out in the country’s Universities<br />

and Polytechnics through one<br />

website:<br />

www.manufacturingnz.org.nz.<br />

www.manufacturingnz.org.nz<br />

BusinessNZ CEO Phil O’Reilly says<br />

<strong>this</strong> is a first in New Zealand and<br />

will be a key tool to help build the<br />

capability of manufacturers and<br />

help them take on the world.<br />

“Over time, the aim is to make <strong>this</strong><br />

website the number one resource<br />

for our manufacturers.”<br />

Executive Director of<br />

Manufacturing at BusinessNZ,<br />

Catherine Beard, says that apart<br />

from the new search functions,<br />

manufacturing businesses<br />

will find a lot of other useful<br />

resources on the website.<br />

“Like any website, it will<br />

be a work of continuous<br />

improvement, but our goal is for<br />

it to be a one-stop-shop for NZ<br />

manufacturers and to make the<br />

commercialisation of innovation<br />

easier and quicker.”<br />

PAYROLL<br />

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PAYROLL<br />

Our Vision. Your Success<br />

PAGE 13


ADVICE<br />

Business Plus<br />

Financially sorted people good for business<br />

Helping your staff get their money<br />

sorted is good for profitability,<br />

productivity and workplace safety,<br />

according to three employers who<br />

have introduced financial education<br />

in their workplaces.<br />

The three businesses – a Wellington<br />

Pak ‘n Save store, New Zealand Post<br />

and Blue Star subsidiary Printlink<br />

– feature in a new Retirement<br />

Commission DVD on businesses<br />

offering staff financial education at<br />

work.<br />

<strong>In</strong> the DVD the businesses talk<br />

about why they have run seminars<br />

for their staff and offered them other<br />

resources and what it has meant for<br />

their businesses. The DVD was made<br />

available to <strong>EMA</strong> Northern and<br />

Central members attending member<br />

briefings in June and July.<br />

Pak’n Save<br />

Pak ‘n Save Petone owner-operator<br />

Leo O’Sullivan was initially skeptical<br />

about running seminars for his<br />

230-strong staff on topics like<br />

budgeting and managing debt.<br />

“I thought it was a waste of time<br />

initially. Then I realised people don’t<br />

know how to do budgeting and they<br />

don’t know how to save,” he says.<br />

Since then he has encouraged staff<br />

to attend Sorted seminars at Pak<br />

‘n Save and use the accompanying<br />

materials to sort out a budget,<br />

get on top of their debts and start<br />

regular saving.<br />

One of the most common<br />

problems he sees is staff trapped in<br />

a spiral of hire purchase and credit<br />

card debt. That causes financial<br />

stress, increased absenteeism, reduced<br />

productivity and in some cases,<br />

dishonesty and theft.<br />

“The biggest impact is on how<br />

people work and how much they<br />

produce. If they’re worrying about<br />

money it envelops them: they can’t<br />

see a way out and they can’t focus<br />

on their work.” he says.<br />

Leo O’Sullivan has had instances<br />

of senior managers with financial<br />

worries that have affected the<br />

profitability of the whole business.<br />

Helping a departmental manager to<br />

find a way out of financial trouble<br />

could improve their department’s<br />

bottom line by up to 10%.<br />

Blue Star<br />

Group General Manager at Blue Star<br />

Peter Ward says you only have to<br />

be in the payroll department to see<br />

how many employees are affected by<br />

financial problems.<br />

“Often the first inkling you get is<br />

when people are looking for some<br />

financial assistance – an advance on<br />

wages or a pay rise,” he says.<br />

“If people are anxious about<br />

whether their bills have been paid<br />

or whether the power’s been cut<br />

off they’re not thinking about what<br />

they’re doing at work.”<br />

<strong>In</strong> a workplace where people<br />

operate heavy equipment that<br />

distraction can be dangerous.<br />

“Taking the opportunity to help<br />

staff to gain a greater level of<br />

financial literacy is important,” he<br />

says.<br />

NZ Post<br />

Providing financial education at<br />

New Zealand Post fits well with<br />

the company’s focus on employee<br />

engagement and wellbeing. New<br />

Zealand Post Human Resources<br />

Manager Luke Southorn says the<br />

company wants a workplace where<br />

staff are highly engaged and enjoy<br />

coming to work.<br />

“We know from a range of<br />

research that the higher the level<br />

of staff engagement the greater<br />

the level of productivity so it does<br />

feed through to the bottom line.<br />

Financial worries can be a major<br />

distraction.”<br />

“Once people have had access to<br />

some financial education they feel<br />

they really can take some control of<br />

<strong>this</strong> area,” Luke Southorn says.<br />

That’s been the case for<br />

Willamene Kerei, who works in<br />

New Zealand Post’s Wellington call<br />

centre. Since attending a Sorted<br />

seminar eight months ago she’s now<br />

saving enough to join New Zealand<br />

Post’s superannuation scheme,<br />

something she’s wanted to do since<br />

joining the company.<br />

She’s also planning her daughter’s<br />

21st birthday party. Unlike past<br />

family events she’s had to borrow<br />

for, <strong>this</strong> one she’ll pay for out of her<br />

recent savings.<br />

“I’ve set up my goals and plans<br />

using the calculators on the Sorted<br />

website and I keep going back to<br />

them. That gives me the reassurance<br />

that I’m on track and everything’s<br />

going correctly. Then I don’t need<br />

to worry,” she says.<br />

Now her workmates are asking<br />

her for advice about their finances.<br />

To find out more about free Sorted<br />

resources for employers go to sorted.<br />

org.nz. You can order Sorted booklets<br />

for your staff online at sorted.org.nz/<br />

ordering or by calling 0800 SORTED<br />

MONEY (767 866).<br />

Sorted seminars for you<br />

to run for your staff<br />

The Retirement Commission has<br />

developed five Sorted seminars for<br />

employers and managers to run with<br />

their staff.<br />

The free, independent seminars<br />

range from goal setting, budgeting<br />

and managing debt through to making<br />

decisions about KiwiSaver.<br />

All the material needed to run them<br />

can be downloaded from the Sorted<br />

website, sorted.org.nz/seminars.<br />

Each seminar takes about an hour and<br />

can be run by a company manager or<br />

an external facilitator. There is a list of<br />

facilitators on the Sorted website for<br />

employers wanting to engage external<br />

help.<br />

PAGE 14<br />

Business Plus Magazine - Exclusive news, advice, learning and networking


Business Plus MANUFACTURING<br />

How the PMI and PSI work; participate to benefit<br />

The Bank of NZ/ Business NZ<br />

Performance of Manufacturing <strong>In</strong>dex<br />

and for the Services sector are leading<br />

indicators of NZ's level of economic<br />

activity. They are also recognised around<br />

the world, so how do they work? Stephen<br />

Summers from Business NZ explains.<br />

When manufacturers and service<br />

industries complete the BNZ-Business<br />

NZ Performance of Manufacturing<br />

<strong>In</strong>dex (PMI) and PSI every month their<br />

data is collated to form the latest guides<br />

on how the economy is going.<br />

Manufacturers in the North Island<br />

make up the bulk of contributors to the<br />

PMI, which is a Business NZ owned<br />

survey that’s been running almost eight<br />

years. Its now the leading indicator of<br />

manufacturing in New Zealand and<br />

thereby for the economy overall.<br />

A lot of surveys take so long for their<br />

data to be collated that often <strong>issue</strong>s have<br />

moved on before the results are out.<br />

The PMI is different. Manufacturers<br />

are surveyed one week and the results<br />

are out the next.<br />

The PMI results are widely used.<br />

<strong>EMA</strong> and ECCC uses it as a pulse<br />

for understanding how manufacturers<br />

are performing. Business NZ uses it<br />

in submissions and discussions with<br />

politicians/Government on what<br />

policies need to be reviewed.<br />

Government agencies such as the<br />

Reserve Bank and Treasury monitor<br />

the results for their forecasts and state of<br />

play of the New Zealand economy.<br />

Most importantly, individual<br />

manufacturers make use of the<br />

information to better understand<br />

changing trends affecting them,<br />

especially in production, new orders and<br />

employment.<br />

Because the results are close to real<br />

time, the survey picks up points in time<br />

when production could be picking up,<br />

new orders from offshore becoming<br />

more prevalent, or manufacturers are<br />

looking to hire more people on the<br />

factory floor.<br />

Early signs of changing trends can<br />

be identified through it too. The graph<br />

below shows that, after a difficult 2008<br />

and 2009, activity in 2010 has steadily<br />

picked up. The latest result for April<br />

showed activity levels as strong as late<br />

2004, the best year for expansion in<br />

manufacturing.<br />

Average PMI Values for <strong>EMA</strong><br />

Northern, ECCC and Nationwide<br />

(2003– 2010)<br />

* A PMI reading above 50 indicates<br />

manufacturing is generally expanding: below<br />

50 signals decline. The distance from 50 is<br />

indicative of the strength of the expansion or<br />

decline.<br />

Looking forward, the main<br />

question is: How will the rest of 2010<br />

pan out? National, seasonally adjusted<br />

results are certainly off to a good start<br />

with an average of 55.4 for the first<br />

four months.<br />

Unadjusted results for <strong>EMA</strong><br />

Northern and Central average out<br />

at 51.8 and 50.7 respectively. The<br />

good news is that results for March<br />

and April were much improved from<br />

January and February, particularly for<br />

production and new orders.<br />

Benchmark offshore<br />

New Zealand’s PMI results also<br />

contribute to the NTC Global PMI,<br />

which covers manufacturing from 23<br />

countries, including the USA, UK,<br />

Australia, China and France. All of<br />

these run the same survey as ours.<br />

Collectively the Global PMI<br />

accounts for an estimated 82% of<br />

global manufacturing output. They<br />

are literally world leading and market<br />

changing in terms of providing<br />

up-to-date information on global<br />

growth.<br />

Enlisting<br />

<strong>EMA</strong> and Business NZ always<br />

want more manufacturers to come<br />

on board to fill in the survey every<br />

month. It is one of the simplest<br />

surveys and takes 1-2 minutes per<br />

month to complete.<br />

Please become a part of <strong>this</strong>, to assist<br />

both New Zealand manufacturing and<br />

contribute to a global indicator.<br />

$1 Million Available for Big Ideas<br />

The Entrepreneurs’ Challenge started with a generous $3 million foundation gift from<br />

Kiwi businessman Charles Bidwell.<br />

Competition winners receive up to $1 million in funding, available for a period of three<br />

years. More than money is on offer. Successful entrants also receive mentoring by<br />

highly-experienced entrepreneurs and business executives along with access to the<br />

Entrepreneurs’ Challenge’s partners and networks. Priority is given for placement in the<br />

Business School’s internship, consulting and experiential learning programmes.<br />

For instructions how to enter plus dates and terms and profiles of previous winners,<br />

please visit the Challenge website www.entrepreneurschallenge.co.nz<br />

Entries close on 19 July 2010.<br />

Our Vision. Your Success<br />

PAGE 15


HOW COME YOUR<br />

PHOTOCOPIER<br />

HAS A BETTER<br />

HEALTH PLAN<br />

THAN YOUR STAFF?<br />

It’s true: in many companies the health of<br />

the office photocopier is more important<br />

than that of their living, breathing<br />

employees.<br />

The photocopier almost certainly<br />

has a multi-year warranty, a regular<br />

-as-clockwork maintenance<br />

programme, and gets attended<br />

to in a heartbeat by<br />

high-priced repair folk<br />

should it begin to feel the<br />

slightest bit off-colour.<br />

Now, imagine how smoothly<br />

your business would run if<br />

your staff had the same kind<br />

of TLC. Faster treatment 1 ,<br />

a quicker return to work,<br />

greater loyalty, and less<br />

absence 2 - no wonder 93<br />

of New Zealand’s top 100<br />

companies 3 already provide their<br />

employees with health insurance from Southern<br />

Cross Health Society. And the cost can be as little<br />

as 1% of your annual payroll 4 . <strong>In</strong> these challenging<br />

economic times, with mounting pressure<br />

on your key personnel, their health and<br />

wellbeing is more critical to the health<br />

and wellbeing of your business than<br />

ever.<br />

Best of all, because Southern<br />

Cross is a not-for-profit organisation,<br />

our duty is to look after the health of<br />

New Zealanders not the pockets of<br />

shareholders. And we pass <strong>this</strong> value<br />

on by paying out 96.6 cents of every<br />

dollar received in premiums back to our<br />

members 5 . No other health insurance<br />

company comes close to our 843,000<br />

members or is as committed to the<br />

health of New Zealanders as Southern<br />

Cross.<br />

Talk to us today about the best way<br />

to look after what really makes your<br />

business tick. And no, we don’t mean<br />

the photocopier.<br />

To find out more, call Southern Cross Health<br />

Society on 0800 323 555 or visit our website<br />

www.healthybusiness.co.nz<br />

BC&F4771<br />

Southern Cross Medical Care Society, 181 Grafton Road, Grafton, Auckland 1010<br />

1. For elective surgical procedures. 2. TNS research 2004 3. Top 200 Companies, magazine, Dec 2008 4. Based on actual cost of Wellbeing One for a 41 year old as at 1 March 2010,<br />

calculated as a percentage of the average NZ salary of $45,000. 5. For the year ended 30 June 2009, Southern Cross Annual Report, 2009<br />

09/10


We’ve just had <strong>In</strong>ternational Men’s<br />

Health Week, when the topic of men and<br />

their health (or lack of it) gets publicised.<br />

Many organisations and celebrities speak<br />

their piece and top of the billing always<br />

seems to be the ‘P’ word – prostate<br />

cancer.<br />

Several other conditions – heart and<br />

blood vessel diseases, lung disease, non<br />

malignant and cancer, and colorectal<br />

cancer - kill more men each year. But<br />

a large group of men are alive at any<br />

given time diagnosed with prostate<br />

cancer, more so than for the other<br />

cancers.<br />

We fear prostate cancer because<br />

it attacks our sexual function and<br />

therefore strikes at the core of our<br />

maleness.<br />

Just because you have prostate<br />

symptoms (as discussed in Listen to<br />

Your Engine Part 2 - see last <strong>issue</strong> of<br />

<strong>EMA</strong>Business+) does not usually mean<br />

you have prostate cancer. It means you<br />

should be checked.<br />

One in 12<br />

Around one in 12 New Zealand<br />

men will develop prostate cancer in his<br />

lifetime and many elderly men with<br />

prostate cancer will die from another<br />

cause. Most men with early prostate<br />

cancer have absolutely no symptoms at<br />

all.<br />

The first fact to understand is it’s<br />

not a perfect science. We’re not as good<br />

as we would like to be at detecting<br />

prostate cancer and we have some<br />

difficulty sorting out the patients likely<br />

to have poorer outcomes from those<br />

who will do better.<br />

Huge amounts of research are<br />

ongoing; we will get better at it. One<br />

of the biggest steps we must take is to<br />

encourage all men to be checked. But<br />

even <strong>this</strong> statement is said cautiously, as<br />

many authorities worry that in trying<br />

to improve things we will needlessly<br />

treat some men who would have done<br />

By Dr Graeme Washer<br />

The ‘P’ word<br />

well if we didn’t find their tumor, or left<br />

them alone even with known cancer!<br />

The latter remark particularly applies to<br />

older and elderly men.<br />

None of <strong>this</strong> is much comfort to you<br />

as an individual, and recently two very<br />

large scientific studies of screening big<br />

groups of men for prostate cancer, then<br />

following them for long periods of time,<br />

produced disappointing results in terms<br />

of lives saved. This illustrates why our<br />

Government is not rushing to set up a<br />

prostate screening programme.<br />

Best advice<br />

It’s important, however, not to<br />

develop a pessimistic view. You and your<br />

doctor are concerned about YOU, not a<br />

statistical conclusion.<br />

With the limitations of our<br />

currently available methods it is still<br />

the best advice to have a PSA blood<br />

test annually after the age of 40, along<br />

with a yearly physical examination<br />

of the prostate gland (yes, a finger in<br />

the rectum, guys). These examinations<br />

should always BOTH be done because<br />

either can be misleading or falsely<br />

negative.<br />

The most important clue to trouble<br />

is CHANGE over time in either or<br />

both tests. Your doctor may speak of<br />

“PSA velocity” meaning rate of change<br />

of the blood test reading.<br />

Because of the uncertainties about<br />

diagnosis it is very important that<br />

negative tests are repeated in the future<br />

and that the interpretation of positive<br />

tests is done with great care.<br />

Looking after your prostate<br />

There’s good evidence that dietary<br />

and lifestyle measures (stress, exercise)<br />

and what’s good for your heart,<br />

especially lowering fat in your diet, are<br />

equally as good at reducing the risk of<br />

prostate cancer.<br />

If you have a family history your<br />

risk is considerably greater, so look after<br />

yourself and don’t put off the checks<br />

above.<br />

The other key difficult area you<br />

Business Plus ADVICE<br />

should know about is in the choice of<br />

treatment for prostate cancer. The basic<br />

principle is early diagnosis while the<br />

cancer is small and contained within the<br />

prostate itself.<br />

We are certainly getting a lot better<br />

at surgery to remove the whole prostate<br />

gland without damaging continence<br />

of urine or even erectile function,<br />

but there is still much debate on the<br />

optimum treatment at each particular<br />

stage of the disease.<br />

Today surgery is often done by<br />

laparoscopy (“keyhole”) or even using<br />

a surgical “robot” which allows the<br />

laparoscopic surgeon to do finer work<br />

while watching with 3-D vision.<br />

Treatments<br />

Some men have external radiation<br />

or internal radiation “seeds” instead of<br />

surgery and there are advantages and<br />

disadvantages to each choice. Drug<br />

treatments, usually by manipulating<br />

hormones and reducing testosterone,<br />

are also used. Some options will not be<br />

suitable for a particular individual for<br />

specific reasons.<br />

It is mandatory for patients to have<br />

a very full and frank discussion with at<br />

least one specialist before embarking<br />

on treatment. It is often a good idea to<br />

seek a second opinion, and a good GP<br />

can guide his patient in the selection of<br />

opinions to be sought.<br />

As always, knowledge is strength.<br />

Here are some sources from the myriad<br />

of places available online.<br />

www.prostate.org.nz - the NZ Prostate<br />

Cancer Foundation.<br />

www.cancer.gov/cancertopics/types/<br />

prostate - US National Cancer <strong>In</strong>stitute.<br />

www.medicinenet.com/prostate_cancer -<br />

Comprehensive information, US bias.<br />

Graeme Washer MB ChB FRACS gained his<br />

basic medical degrees at Otago University<br />

then Fellowships in Auckland, London,<br />

Canada and the US. He is a Trustee of the<br />

NZ Men’s Health Trust and involved with<br />

Medecins sans Frontieres (Doctors without<br />

Borders).<br />

Our Vision. Your Success<br />

PAGE 17


ADVICE<br />

Business Plus<br />

By Mary MacKinven<br />

Releasing the pressure gently, with mediation<br />

When disputes get out of control and<br />

you’re stressed to the max, “who you<br />

gonna call”? The Mediate team!<br />

Two mediators told <strong>EMA</strong> members<br />

at a seminar last month how<br />

mediation works and why it’s a<br />

smart alternative to adjudication,<br />

and especially to going to court, or<br />

litigation.<br />

Presenters Danny Gelb (Mediate<br />

co.nz) and John Isaac advised<br />

that mediation is defined as a<br />

confidential decision-making<br />

process where the mediator assists<br />

the parties to discuss the <strong>issue</strong> in<br />

dispute and find a solution (that<br />

could be multifaceted). They then<br />

document the parties’ agreement on<br />

how they will resolve the <strong>issue</strong>. The<br />

resulting document/contract might<br />

be drawn up with the help of a<br />

lawyer and is legally binding.<br />

Case study<br />

Because confidentiality<br />

is critical to the<br />

process, case studies<br />

are heavily altered to<br />

protect the identity of<br />

the parties. However,<br />

Danny provided the<br />

following example<br />

of how mediation is<br />

beneficial in resolving<br />

business-to business<br />

disputes.<br />

A dispute arose over payment for<br />

the re-print of a large printing job<br />

that had gone horribly wrong. <strong>In</strong><br />

the initial print the client had signed<br />

off the proof but later discovered<br />

the printer had run a wrong<br />

graphic, and as well the client’s<br />

proof-reading had not picked up<br />

a typographical error. Both errors<br />

contributed to the problem but the<br />

parties could not agree who was<br />

liable and therefore who should<br />

pay what for the re-print. Neither<br />

wanted to go to court as it was too<br />

expensive compared to the value of<br />

the dispute, and the uncertainty over<br />

what a court would decide.<br />

For a charge of $999 + GST and<br />

disbursements to each party per day,<br />

a mediator helped them resolve the<br />

conflict. The mediator does not<br />

decide the outcome; he or she helps<br />

the parties negotiate an agreement<br />

of their own making.<br />

Sharing the damage<br />

The parties ended up agreeing<br />

the client paid 75% of the reprint<br />

and the printer gave the client a<br />

credit on her account equivalent<br />

to 25% of the invoice for use on a<br />

future print job.<br />

“Effectively they split the cost<br />

50/50, but the printer secured<br />

further work and maintained the<br />

business relationship. Our courts<br />

cannot reach outcomes like <strong>this</strong>,”<br />

says Danny.<br />

"...litigation costs from<br />

$20-30,000, mediation<br />

costs $1000"<br />

Neutral facilitation<br />

A mediator is a neutral facilitator;<br />

the parties involved agree on the<br />

particular person to hire. The<br />

mediator is not a lawyer, though<br />

lawyers can be consulted, e.g., the<br />

parties might have already discussed<br />

the <strong>issue</strong> with their lawyers and they<br />

might provide useful information to<br />

the mediator, or suggest their clients<br />

use a mediator.<br />

Business disputes can arise for<br />

many different reasons: customer<br />

complaints, supplier <strong>issue</strong>s,<br />

property disputes with landlords<br />

or agents, and business partnership<br />

disagreements.<br />

The barriers to their resolution<br />

are commonly about money but also<br />

ego and emotion can be important<br />

– or all three.<br />

Special features of mediation<br />

Mediation is increasingly popular<br />

worldwide since it offers key<br />

advantages:<br />

n A neutral person (agreed by both<br />

parties) facilitates;<br />

n The entire process is confidential<br />

and uses the ‘without prejudice’<br />

process;<br />

n Good faith negotiations are<br />

integral. A good chance of<br />

preserving relationships to do<br />

future business is retained;<br />

n The consensual process decides<br />

the outcome;<br />

n Sessions are quick, e.g., they<br />

can take place in a couple of<br />

days from booking the mediator<br />

unlike a courtroom which can<br />

take six months or more to get a<br />

hearing.<br />

n It’s cost effective. For example,<br />

litigation costs from $20-30,000<br />

for each party, and offers little<br />

control over the outcome, and<br />

there is always a winner and a<br />

loser.<br />

Win win<br />

With mediation the outcome<br />

is often win-win, and at worst, a<br />

liveable solution and a quick end to<br />

the stress of conflict.<br />

Danny says mediators are<br />

trained to turn confrontation into<br />

co-operation, to attack the problem<br />

not the people and focus on the<br />

parties’ needs as opposed to their<br />

wants, as well as how to break<br />

stale-mates. Approximately 85% of<br />

mediations result in a settlement.<br />

To find a mediator, google “mediation”<br />

or select one from the Arbitrators and<br />

Mediators <strong>In</strong>stitute of New Zealand or<br />

LEADR NZ. Or go to www.mediate.co.nz<br />

PAGE 18<br />

Business Plus Magazine - Exclusive news, advice, learning and networking


<strong>EMA</strong>'s<br />

TAX TIPS<br />

Business Plus ADVICE<br />

Budget 2010: Major impacts<br />

Major implications from Budget 2010<br />

are expected arising from the loss of the<br />

depreciation deduction for buildings that<br />

an entity currently owns and holds with<br />

the intention of use in the future (rather<br />

than sale), and that have an estimated<br />

useful life of greater than 50 years. This<br />

is applicable for those entities with<br />

investment properties within the scope<br />

of NZ IAS 40 <strong>In</strong>vestment Property and<br />

for buildings held for own use under NZ<br />

IAS 16 Property, Plant and Equipment.<br />

Broadly speaking, entities were generally<br />

able to claim a tax deduction for<br />

depreciation on buildings they own.<br />

<strong>In</strong> the 2010 Budget the Government<br />

effectively removed <strong>this</strong> depreciation<br />

deduction on buildings with expected<br />

lives of 50 years or more.<br />

Repairs and maintenance<br />

expenditure by building owners will<br />

remain deductible for income tax<br />

purposes, and depreciation deductions<br />

will remain for "fit out" items not<br />

considered part of the taxpayer's<br />

building. A review of the tax treatment<br />

of commercial building "fit outs" is to<br />

come.<br />

Our comments:<br />

Accounting for deferred tax is a<br />

complex area of accounting, which can<br />

result in the need to recognise deferred<br />

tax liabilities that are hard to explain<br />

in economic terms – for many, the<br />

resulting deferred tax liabilities do not<br />

represent ‘real’ liabilities in an economic<br />

sense, particularly when any potential<br />

future tax liability is unlikely to<br />

crystallise for decades or even centuries.<br />

The removal of these depreciation<br />

deductions will therefore increase<br />

some existing deferred tax liabilities,<br />

while creating some new deferred tax<br />

liabilities for entities that may have<br />

not previously been faced with <strong>this</strong><br />

troublesome <strong>issue</strong>.<br />

The potentially large impact on<br />

after-tax profit and the balance sheet<br />

in the year of change will need to be<br />

assessed, and the wider commercial<br />

implications identified.<br />

The removal of the depreciation<br />

deduction will have the following<br />

implications for entities reporting under<br />

NZ IFRS:<br />

Existing Buildings: the impact of the<br />

removal of depreciation deductions will<br />

depend on an entity’s intended use of<br />

the building in the future which may<br />

be:<br />

n <strong>In</strong>tention to sell: the calculation<br />

of the deferred tax liability remains<br />

unchanged.<br />

n <strong>In</strong>tention to hold for use (either<br />

for own use or as an investment<br />

property): the calculation of the<br />

deferred tax liability will change.<br />

<strong>In</strong> <strong>this</strong> case, the use of the asset is<br />

expected to generate future taxable<br />

income and, in the absence of<br />

depreciation deductions to claim<br />

against that taxable income after the<br />

end of the 2011 tax year, a taxable<br />

temporary difference will arise based<br />

on the carrying value of the building<br />

less the remaining year’s deprecation<br />

deduction.<br />

Example<br />

An entity purchased a building two<br />

years ago for $10,000,000. For<br />

accounting and tax purposes it has been<br />

depreciated at 2% per annum. As at<br />

June 30, 2010, the carrying amount of<br />

the asset for accounting purposes was<br />

$9,600,000. Prior to the changes the<br />

tax base of the asset would have also<br />

been $9,600,000, meaning there is no<br />

difference between the accounting<br />

carrying amount and the tax base of<br />

the building. Hence, no deferred tax is<br />

recognised.<br />

However, with the change in tax<br />

legislation, the entity can now only<br />

claim a depreciation deduction for one<br />

further year before the tax legislation<br />

change takes effect. Therefore, the<br />

new tax base of the building is only<br />

$200,000, but its carrying amount for<br />

accounting purposes is $9,600,000. The<br />

difference between these two amounts<br />

is $9,400,000. This difference is referred<br />

to as a “taxable temporary difference” in<br />

NZ IAS 12. The deferred tax liability<br />

on <strong>this</strong> taxable temporary difference<br />

at the 28% company tax rate equals<br />

$2,632,000. An entity would thus be<br />

required to recognise a deferred tax<br />

liability of $2,632,000 and tax expense<br />

of the same amount.<br />

Change in the Company Tax Rate<br />

The other significant tax change<br />

with accounting implications is that to<br />

the company tax rate from 30% to 28%<br />

from the 2011/2012 tax year.<br />

This will impact differently<br />

depending on entities balance date as<br />

explained below:<br />

For balance dates before May<br />

21. The existing rate of 30% should<br />

be used when measuring deferred tax<br />

assets and liabilities.<br />

However, if the change in rate is<br />

expected to have a material impact on<br />

the measurement of deferred tax assets<br />

or liabilities, then disclosures about<br />

<strong>this</strong> post-balance-date event may be<br />

required under paragraph 21 of NZ<br />

IAS 10.<br />

For balance dates that fall after<br />

May 21 but before the new tax<br />

rate applies. The impact on deferred<br />

tax will depend on whether the<br />

temporary difference will reverse in the<br />

2010/2011 tax year when the 30% rate<br />

is applicable, or in the 2011/2012 tax<br />

year or later years, when the 28% rate is<br />

applicable.<br />

The resulting tax expense/income<br />

should be recorded either in profit or<br />

loss, or in other comprehensive income<br />

(reserves), depending on what the tax<br />

relates to.<br />

For example, if the deferred tax<br />

relates to the revaluation of buildings,<br />

the change in the deferred tax balance<br />

will be recognised in other comprehensive<br />

income (reserves). Conversely,<br />

if the deferred tax relates to a doubtful<br />

debts provision, the change should be<br />

recognised in profit or loss.<br />

We recommend that affected entities<br />

contact their Ernst & Young adviser to<br />

discuss <strong>this</strong> important <strong>issue</strong> further.<br />

Our Vision. Your Success<br />

PAGE 19


By Garth Wyllie<br />

Air freight exports to US face new inspection<br />

A new US airfreight border goods<br />

inspection rule is shaping up as a<br />

serious <strong>issue</strong> that will impact on<br />

exports of food products going to, or<br />

via, the US by airfreight.<br />

The new screening rule will see a US<br />

border security measure defy food<br />

product safety requirements.<br />

Since May 1 <strong>this</strong> year the mandatory<br />

screening of loose goods air freighted to<br />

and via the US was brought into force<br />

by the US Government’s Transportation<br />

Security Administration (TSA) under<br />

the 9/11 Commission Act of 2007<br />

to satisfy US concerns over safety of<br />

passenger planes.<br />

New Zealand did not oppose <strong>this</strong><br />

Certified Cargo Screening Programme<br />

as there was no evidence it would harm<br />

our export ability.<br />

However, <strong>this</strong> is not the case for<br />

containerised or palletised air cargo.<br />

Since May 1 the rule has meant a<br />

percentage of these goods have been<br />

examined, and that containers holding<br />

food or refrigerated/chilled foods<br />

were left sealed as required by the<br />

New Zealand Food Safety Authority<br />

(NZFSA).<br />

But from August 1 the screening is to<br />

be extended and applied to all airfreight,<br />

which means all containers must be<br />

opened and their contents individually<br />

screened. This requirement is contrary<br />

to the food safety requirements for such<br />

goods.<br />

Opening the containers of food-type<br />

products, particularly those that are<br />

chilled or refrigerated, places them at<br />

considerable risk of contamination, and<br />

<strong>this</strong> would jeopardise New Zealand<br />

fresh food industries using airfreight to<br />

supply international markets in the US,<br />

Europe and elsewhere.<br />

<strong>EMA</strong> has written to Transport<br />

Minister Steven Joyce asking for urgent<br />

attention to <strong>this</strong> matter.<br />

We understand the Board of Airline<br />

Representatives has already raised it<br />

with both the Ministry of Transport<br />

(MOT) and NZFSA. Neither agency<br />

appears willing to find a way to resolve<br />

it, and time is short.<br />

New Zealand Customs has offered<br />

to try and use its Secure Export<br />

Partnership agreement with the US<br />

to find a way forward, but <strong>this</strong> has not<br />

been taken up by the MOT, which<br />

must take the lead agency role for the<br />

<strong>issue</strong>.<br />

<strong>EMA</strong> is deeply concerned the <strong>issue</strong><br />

has not been actioned up by officials<br />

to date even though the rule has the<br />

potential to harm both New Zealand<br />

exports and New Zealand’s reputation<br />

for food quality.<br />

PAGE 20<br />

Business Plus Magazine - Exclusive news, advice, learning and networking


Our Vision. Your Success<br />

PAGE 21


Boats, beer and buildings: Fiji economy recovering<br />

Business confidence in Fiji is a lot<br />

more positive than during the thick<br />

of the global financial crisis last year,<br />

says Michael Greenslade, Pacific Trade<br />

Commissioner at New Zealand Trade<br />

and Enterprise.<br />

He’s full of news about new<br />

developments and business<br />

opportunities. He points out New<br />

Zealand and Fiji have never had<br />

trade sanctions against each other,<br />

and despite political upheaval in<br />

Fiji, business relations have always<br />

flourished.<br />

“The reality is trade has never been<br />

an <strong>issue</strong>,” Greenslade said.<br />

The region is New Zealand’s sixth<br />

biggest export market.<br />

Greenslade was previously Trade<br />

Commissioner for Fiji based in Suva<br />

for five years. <strong>In</strong> April he visited there<br />

with the recently appointed new<br />

Trade Commissioner for Fiji, Peter<br />

Lund.<br />

Among Fiji’s 333 islands, Denerau<br />

Island is the scene of much new<br />

business activity. Port Denerau<br />

company owned by the Skeggs family<br />

from Dunedin is at the heart of large<br />

improvements: Major dredging to<br />

allow super yachts to berth (two were<br />

in port at the time of Greenslade’s<br />

visit); and the re-establishment of<br />

the iconic Auckland to Suva Yacht<br />

Race under the new name of<br />

Auckland- Fiji Denerau Yacht Race<br />

2010. The company is also planning<br />

to build a yacht club on Denerau.<br />

Other major developments on<br />

Denerau include the sale of the<br />

last two hotel development sites<br />

ready for development. Another<br />

hotel’s foundations have begun<br />

for building on reclaimed land,<br />

with a new apartment block in the<br />

pipeline.<br />

A local, niche boat builder is<br />

building two large aluminum boats<br />

for New Zealand customers, using<br />

materials from Ullrich Aluminum.<br />

Furthermore, New Zealanders<br />

Jeremy and Jonathan Ullrich have<br />

set up the Fiji Island Brewing<br />

Company in Nadi; their Vonu brand<br />

beer is one of Fiji’s most popular, says<br />

Greenslade.<br />

<strong>In</strong> Suva a new head office has<br />

been built for Flour Mills of Fiji Ltd.<br />

Similarly Vinod Patel and the Tappoo<br />

group have built a new retail centre.<br />

Carpenters Fiji Group which has<br />

wide business interests, including a<br />

shipping agency, has moved directly<br />

into shipping and is operating four<br />

vessels on the Fiji-New Zealand-<br />

Australia-Papua New Guinea route,<br />

promising competitive cargo rates.<br />

“Everyone is watching closely!”<br />

There’s a movement back to Fiji’s<br />

duty free status of the 1960s and 70s.<br />

Additional licenses were recently<br />

granted for duty free shopping, to<br />

increase tourism.<br />

Greenslade concludes: “After my<br />

absence I noticed a lot of building<br />

as Fijian companies reposition<br />

themselves for the good times.<br />

“There are strong businesses in Fiji<br />

who are very aware of the cycles the<br />

country goes through.”<br />

During the ‘recession’ of 2009<br />

New Zealand’s global exports<br />

declined 7.5% and Australia’s<br />

similarly, but in the Pacific region<br />

where New Zealand’s export<br />

revenues reach $1.2 billion, exports<br />

declined by less than 1%.<br />

“The Pacific is a growing market<br />

even in times of recession because of<br />

tourism, growing wealth and middle<br />

class expectations, and a reliance<br />

on technology and food they don’t<br />

produce themselves.”<br />

<strong>EMA</strong> Northern provides<br />

secretarial services to the New<br />

Zealand Fiji Business Council<br />

established in 1988 to facilitate and<br />

support trade and investment links<br />

between New Zealand and Fiji.<br />

For more information contact mike.<br />

burgess@ema.co.nz<br />

PAGE 22<br />

Business Plus Magazine - Exclusive news, advice, learning and networking


BOP export award winners dress for success<br />

Winners in the Bank of NZ Partners<br />

Bay of Plenty Export Awards 2010<br />

were announced late June at a 'Roaring<br />

Twenties' themed celebration. They were:<br />

United Travel Emerging Exporter of<br />

the Year: Pollen-Plus<br />

Pollen-Plus is the world's largest<br />

producer and supplier of male kiwifruit<br />

pollen and pollination services for<br />

kiwifruit.<br />

The judges said:<br />

“Pollen Plus is leveraging their<br />

expertise, performance and ability to<br />

develop relationships with like-minded<br />

people in key markets globally to<br />

build a thriving export business, while<br />

retaining ownership of a key “IP”<br />

throughout the process.”<br />

Page Macrae <strong>In</strong>novation in Export<br />

Award: Trimax Mowing Systems<br />

Trimax designs, develops,<br />

manufactures, exports and markets<br />

tractor powered mowing equipment<br />

for applications including horticulture,<br />

parks and reserves, sports fields, golf<br />

courses, airports and roadsides. A full<br />

after-sales service is supplied in more<br />

than 15 countries.<br />

Their particular innovation is their<br />

ground-breaking tractor-powered,<br />

multi-spindled rotary, tri-deck<br />

roller mower called the Merlin, the<br />

first tractor-powered roller mower<br />

developed primarily for golf course<br />

mowing.<br />

The judges said:<br />

“Trimax have made a step-change.<br />

Feedback from users has confirmed the<br />

investment in R&D of <strong>this</strong> innovative<br />

Gemma Craven and Karen Littlewood of Moca<br />

product will definitely impact on their<br />

market.”<br />

BOP Polytech Export Achiever:<br />

Scott Coulter, sales and marketing<br />

manager at Comvita in Te Puke<br />

Comvita is a manufacturer of a<br />

unique range of natural health products<br />

marketed internationally for food,<br />

healthcare, skincare and wound care.<br />

Scott Coulter was nominated by Alan<br />

Bougen – director and co-founder<br />

of Comvita who said: Scott joined<br />

Comvita in 2003 as marketing manager<br />

and since then Comvita has grown<br />

its offshore business from $5m to its<br />

present level of $66m. “Scott is a skilful<br />

operator with well honed business skills<br />

and a ‘can-do’ attitude. ”<br />

The judges agreed!<br />

Sharp Tudhope Exporter of the Year:<br />

Allied <strong>In</strong>dustrial Engineering (AIE)<br />

in Kawerau<br />

Mark Lovegrove, managing director<br />

of Allied <strong>In</strong>dustrial Engineering<br />

winner of the Sharp Tudhope<br />

Exporter of the year Award<br />

Allied <strong>In</strong>dustrial<br />

Engineering (AIE) is<br />

a heavy mechanical<br />

engineering service<br />

company specialising in<br />

component manufacturing,<br />

maintenance and<br />

re-engineering services. It<br />

Scott Coulter from Comvita, winner of the Bay<br />

of Plenty Polytech Export Achiever Award<br />

targets pulp and paper, defence,<br />

marine, power generation, wood<br />

processing, steel manufacture, mining<br />

and food processing/dairy.<br />

AIE’s large capacity CNC milling<br />

machines and CNC centre lathes mean<br />

they can machine large complicated<br />

components and small production runs<br />

cost effectively.<br />

The judges said:<br />

“AIE has a vision of the future<br />

owned by everyone in the organisation<br />

and its team has an underlying passion<br />

for the business and an individual sense<br />

of accountability. It aims for success-bydesign.”<br />

Zespri Service to Export Award:<br />

Graeme Boyd<br />

Graeme is now his own boss as<br />

managing director of Boyd <strong>In</strong>sight Ltd<br />

management consultancy. He previously<br />

worked at Trimax from 2006 and before<br />

that at Comvita till 2005 as GM then<br />

chief executive.<br />

The judges said:<br />

“Graeme inspires others to achieve<br />

by showing how it is done. When he<br />

speaks, people listen and the advice is<br />

always sound and clear.<br />

He is one of those people who gets<br />

on and makes exports happen. There<br />

are many millions of dollars of export<br />

earnings because of his influence, action<br />

and clear thinking.”<br />

Our Vision. Your Success<br />

PAGE 23


TECHNOLOGY<br />

Business Plus<br />

Stretching IT budgets could be bad<br />

By Andrew Charlesworth<br />

Over the last 18 months many firms<br />

have held off upgrading their IT to<br />

hold costs and stretch their budgets.<br />

When faced with cost cutting its<br />

often tempting to delay hardware<br />

refreshes and extend systems for<br />

four or more years. So what is an<br />

appropriate time you can keep your<br />

existing hardware?<br />

While a delay avoids acquisition<br />

costs, when the cost of support,<br />

maintenance, and user downtime is<br />

accounted for, short term savings<br />

can rapidly disappear and the<br />

decision to stop investing can turn<br />

out expensive.<br />

Compounding the <strong>issue</strong> of<br />

ageing hardware is the additional<br />

challenge represented by the 60%<br />

annual growth rate in data being<br />

experienced by many organisations.<br />

Stretch to your own limit<br />

To establish the breaking point<br />

to which you can stretch your<br />

hardware investment you need to<br />

consider all the elements involved<br />

in the ownership of your PCs and<br />

servers. The total cost of hardware<br />

goes well beyond its initial cost:<br />

installation, maintenance, the cost of<br />

peripherals, consumables, repairs and<br />

training generally surpass hardware<br />

costs.<br />

On average, the routine task of<br />

updating PCs is the greatest cost<br />

driver and failures relating to PC<br />

updates are very common<br />

and their manual resolution<br />

can be time consuming and<br />

costly. So ask:<br />

What is the cost to your<br />

business if your email,<br />

invoicing system or CRM is<br />

down for an hour, a day or<br />

a week?<br />

Ways to reduce total ownership<br />

costs<br />

1. The first and best method to<br />

control computer cost is to<br />

purchase an extended warranty<br />

for each system so you can utilise<br />

warranty services for on-going<br />

maintenance.<br />

2. The second way is to recognise<br />

the majority of repair costs often<br />

occur after the warranty has<br />

expired. If you retire a computer<br />

soon after the warranty expires,<br />

then the lifetime cost of<br />

your computer ownership<br />

will decrease dramatically.<br />

3. Ensure the environment<br />

is optimal for computers<br />

to work efficiently. Low<br />

dust, cooling air, and<br />

maybe even consider<br />

air moisture control are<br />

simple ways to achieve<br />

<strong>this</strong>.<br />

4. On-going maintenance<br />

and support of hardware<br />

will also extend the<br />

life and maintain the<br />

performance of the<br />

machines.<br />

Benefits of keeping it fresh<br />

Then you need to weigh up<br />

the positives from deploying new<br />

technology. Running the latest<br />

hardware has been shown to;<br />

1. Reduce overhead IT management<br />

costs by reducing time spent<br />

conducting patch and application<br />

deployments, PC inventory audits,<br />

and desk side visits to resolve <strong>issue</strong>s.<br />

2. <strong>In</strong>crease user productivity due<br />

to improved speed and machine<br />

performance.<br />

3. <strong>In</strong>crease efficiency by leapfrogging<br />

existing hardware in terms of<br />

technology, price, performance, and<br />

range of applications.<br />

4. Shorten server and PC lifecycles<br />

enabling companies to reduce energy<br />

consumption and their carbon<br />

footprints.<br />

Conclusion<br />

Everyone knows and understands<br />

that computers are a considerable<br />

investment. But it is often easy to<br />

underestimate the impact of underperforming<br />

and unreliable hardware on a<br />

business.<br />

The answer is to have a strategy<br />

around refresh cycles for your PCs<br />

and servers to take advantage of the<br />

continuous advancements in technology.<br />

This provides a more reliable operating<br />

environment and results in a lower total<br />

cost of ownership.<br />

Research provided by <strong>In</strong>tel & Wipro<br />

Technologies 2009<br />

Maclean Computing, the IT infrastructure<br />

experts.<br />

Ph: 0508 622 532<br />

www.maclean.co.nz<br />

PAGE 24<br />

Business Plus Magazine - Exclusive news, advice, learning and networking


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If you’re not happy with your experience on our XT Network simply return the mobile in good<br />

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up to an Extra. Excludes chargeable downloaded content. You can claim a refund once for each connection you make under the Risk Free Trial. However, once you make a claim, you cannot make any<br />

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<strong>EMA</strong> member Proud Moments noticeboard<br />

"Where <strong>EMA</strong> members show off their achievements"<br />

Sky no limit<br />

It’s exciting times for<br />

Smartfoods Ltd, maker of<br />

Vogel’s breakfast cereals and<br />

snacks.<br />

The company has celebrated<br />

the launch of its Vogel’s Tasty<br />

Little Clusters (TLCs) as an<br />

energy snack which has been<br />

available on Air New Zealand<br />

domestic jet flights as part of<br />

the free in-flight breakfast offer<br />

since May <strong>this</strong> year.<br />

General manager Vicky<br />

Taylor says: “All our team<br />

are incredibly proud to have<br />

our products served on Air<br />

New Zealand. And now we<br />

are working on producing a<br />

product to be sold through<br />

supermarkets, so Kiwis can<br />

enjoy Tasty Little Clusters on<br />

the ground.<br />

“Smartfoods is constantly<br />

creating new products made<br />

locally to meet the needs<br />

of discerning Kiwis which<br />

are sold in supermarkets<br />

throughout the country.<br />

“The business was started<br />

almost six years ago to take<br />

the well known Vogel’s brand<br />

into new categories and has<br />

grown significantly over that<br />

time.”<br />

Now based in St Johns,<br />

Auckland, Smartfoods employs<br />

20 people across production<br />

and office teams.<br />

Special offer to our<br />

readers:<br />

basket of goodies!<br />

We invite you to enter the draw to win a basket<br />

of Vogel’s snacks and breakfast cereals.<br />

Smartfoods has kindly donated the prize for<br />

a fellow <strong>EMA</strong> member to experience Vogel’s<br />

range of famously healthy and delicious food.<br />

Simply email your name, company name and<br />

courier address to myvoice@ema.co.nz with<br />

‘Vogel’s’ in the subject line (only valid entries<br />

will enter the draw).<br />

The winner will be drawn on July 20 and<br />

notified by <strong>EMA</strong>. We will send only the winner’s<br />

contact details to Smartfoods so the company<br />

can deliver the basket to the lucky person.<br />

30th birthday for 100% Kiwi-owned medical supplies firm<br />

Last month was party time for <strong>In</strong>terMed Medical Ltd in<br />

Albany, Auckland, as the company celebrated 30 years in<br />

business supplying equipment to the healthcare industry.<br />

Founder Geddes Weston set up the company in his<br />

home basement in Browns Bay selling nationwide<br />

(travelling all the North Island by car) while his wife<br />

Trish balanced office administration tasks around family<br />

needs. The first sale was a $2 vial of sensitivity discs, says<br />

Geddes.<br />

A year later, his fellow trainee laboratory<br />

medical technologist from their days at<br />

Auckland Hospital, Donn de Silva, joined<br />

the company (then called <strong>In</strong>terMed<br />

Scientific and Medical Sales Ltd) as a<br />

shareholder and director. The business<br />

moved to Newmarket.<br />

The pair recognised an opportunity to<br />

provide better and more responsive service<br />

than the dominant multi-national suppliers.<br />

They initially specialised in medical<br />

laboratory products as well as developing<br />

business in specialist hospital areas.<br />

However, they came to realise there was a<br />

wider scope and better future in medical<br />

equipment. When the laboratory part<br />

of the business was split off and ultimately sold, the<br />

company name changed to <strong>In</strong>terMed Medical Ltd.<br />

Company growth accelerated when partnerships<br />

were established with internationally recognised<br />

leaders such as US companies Arrow <strong>In</strong>ternational,<br />

Arizant Healthcare, Boston Scientific, Mallinckrodt and<br />

Snowden Pencer, as well as Wipak of Finland.<br />

Today the Albany-based company employs 65 staff.<br />

<strong>In</strong>terMed Medical directors, from left: Donn de Silva and wife Marieke Spruijt, Nigel<br />

Arkell, Trish and husband Geddes Weston (founding directors).<br />

PAGE 26<br />

Business Plus Magazine - Exclusive news, advice, learning and networking


<strong>EMA</strong> member Proud Moments noticeboard<br />

"Where <strong>EMA</strong> members show off their achievements"<br />

Designed to judge<br />

Judging design awards is commonplace for Fraser<br />

Gardyne of gardyneHOLT - design consultant<br />

partners of Central Auckland.<br />

Fraser judged 2000 logos in March for the<br />

worldwide logo competition WOLDA, along<br />

with nine other international design experts.<br />

The task took concentrated effort for part<br />

of every day for three weeks, he says. <strong>In</strong> some<br />

cases he had to dig deeper to see the logos in<br />

use and make sure he understood their cultural<br />

application in regions as varied as Iran, Korea,<br />

Spain and Africa.<br />

The overall winner – announced last month<br />

- was from the US and the Oceania winner was<br />

the Australian designer of the City of Melbourne<br />

logo – Fraser’s overall personal favourite.<br />

He says WOLDA used an<br />

interesting three-tiered judging<br />

system whereby the entries were<br />

first judged by 10 designers, then<br />

10 marketers judged their reduced<br />

list and finally 10 consumers<br />

judged a further reduced list.”<br />

Fraser has also been the<br />

convener of judges for the<br />

graphics discipline for NZ’s<br />

annual Best Design Awards since<br />

2003. Winners are announced late<br />

Fraser Gardyne<br />

September/early October. “Our<br />

successes go on to win international<br />

awards so I know our process is<br />

good,” he said.<br />

Westpac Manukau Business Excellence Finalists out <strong>this</strong> month<br />

Finalists in the 16th annual<br />

Westpac Manukau Business<br />

Excellence Awards will be announced<br />

on July 28. The winners will be<br />

celebrated at a glamorous black-tie<br />

Awards Gala Dinner, known locally as<br />

the “Oscars” of the business world, on<br />

September 17.<br />

“Everyone who takes part is a<br />

winner when they get feedback from<br />

the judges,” says Ian Blair, General<br />

Manager of Business Banking at<br />

Westpac, major sponsor of the Awards.<br />

Manukau Mayor Len Brown<br />

adds: “I’m inspired and awed by the<br />

brilliant stories Manukau businesses<br />

have to tell. And it’s important<br />

that these stories are heard and<br />

celebrated.”<br />

<strong>EMA</strong> is the sponsor of<br />

Manufacturing category of the<br />

Awards which are delivered on<br />

behalf of the council by Enterprising<br />

Manukau.<br />

Making it Lean By Barry Nolan<br />

Buy several – your managers need<br />

their own 'hymn' sheets!<br />

“It’s a good and relevant read. I would recommend it to anyone<br />

intent on maximising returns for their business”<br />

– Peter Townsend, CEO, Canterbury Employers' Chamber of Commerce<br />

$39.90 incl GST<br />

(add $3 for post and packing) per copy.<br />

It shows you how Lean is the way to<br />

go to achieve greater productivity<br />

and reduce costs.<br />

Best of all Nolan describes a straight<br />

forward, step by step practical approach<br />

for any business to lift its performance.<br />

TO ORDER <strong>EMA</strong>IL:<br />

Gilbert.Peterson@ema.co.nz<br />

Our Vision. Your Success<br />

PAGE 27


people<br />

1<br />

2<br />

2<br />

4<br />

3<br />

5<br />

7<br />

6<br />

8<br />

9<br />

BOP China Delegation & Rugby 2011 Business Club Launch with Hon John Key<br />

11<br />

1 Fiona Haiko [Asia NZ], Hon John Key [Prime Minister], Petrina Page [Tourism BOP]<br />

2 David Kirk [Rugby Ambassador], Angela Wallace [Export NZ BOP]<br />

3 Glen Chen [Kiwiseng], James Liu [Poseidon Services]<br />

4 Michael & Irmengard Deinlein [Distillerie Deinlein]<br />

5 Murray Hill [Sharp Tudhope], Ed Baggeley and<br />

Harvey Bryant [Aquasplash]<br />

6 Peter and Jaquie Wren-Hilton and Chris de Boer [Pingar]<br />

10<br />

7 Jenny Milson [NZTE], Hon John Key [Prime Minister]<br />

8 John Forbes [Mayor of Opotiki], Rob Jeffrey [ENZ Nat Board and Jeffco], Hon John Key [Prime Minister]<br />

9 Angela Tomazeski & Greg Knight [Florentines]<br />

10 Hon John Key [Prime Minister], Maia Millard [Export NZ BOP]<br />

11 Malcolm Douglas [Morton Estate ] & Karen Long [<strong>EMA</strong>]<br />

12 Tauranga Delegation heading to China<br />

13 Steve Wineti [NZ Customs], Grant Macvey [Port of Tauranga], Jamie Hickey [NZ Customs]<br />

12 13


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recruitment process and provide you with the tools to<br />

communicate with all applicants.<br />

Email, short list, request an interview and dismiss -<br />

all with the click of a button.<br />

We will place applicants that meet your minimum<br />

requirements in your online QJumpers account.<br />

Dismissed applicants will be viewable - just in case you<br />

decide to reconsider later.<br />

Visit www.QJumpers.co.nz<br />

or call 0800 QJUMPERS<br />

(0800 758 673)<br />

© Icon 6660 QJumpers

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