Commerce Comment June/July 2012 - Nelson Tasman Chamber of ...

Commerce Comment
To advance business in the Nelson Tasman region
June/July 2012
Sir Ray Avery:
Aspire 2012
Keynote Speaker
Photo courtesy of Oliver Weber Photography
Cornerstone Sponsors
Top Shop 2012 | Aspire 2012 | Business Awards 2012

From the CEO
Relevance and credibility – keys to our success
The Chamber Board recently spent time
looking at how we maintain and improve
our relevance and credibility with members,
the wider business community and decision
makers. It is such an asset to have board
members with such a strong and diverse
range of skills from key sectors in our region
working together to improve what we do and
how we do it.
Two really clear messages came out:
• The Chamber is just as relevant and
credible today as it was over 150 years
ago. Today it provides the opportunity
for members to build business networks
and grow their business. It leads informed
discussion within the business community.
It advocates for better business conditions
and promotes our region as a great place
to do business in.
• The Chamber needs to connect the value
of what we do and what we offer back to
our members.
Over the coming months we will be looking
for specific feedback from members on how
we can do both these better. We need to
know the major challenges your business
is facing so can we see how your Chamber
membership can help. We need to know
how best to connect with you – is it email,
facebook, phone calls, visits….. We need to
know what value you get out of our current
mix of offerings – networking events, thought
leadership luncheons, practical workshops
and seminars, discounts with Office Max, Z
Energy and free services like our Employment
Relations Service and Business Assessments.
And we need to know what you would like us
to do more – or less of.
Your membership is important to us – we are
committed to delivering value to you and to
growing the Chamber – and we need your
involvement to achieve that.
This issue of Commerce Comment showcases
local and national talent - congratulations
to the finalists in the Nelson Top Shop 2012
(see pictures and story within) and thank you
to everyone who made Aspire 2012 such a
success this year.
Sir Ray Avery, one of the keynote speakers,
encouraged us to take notice of the moments
of inspiration that come from simple
observations. With a customer-centric focus,
and a kiwi can-do attitude, nothing can stop us.
He suggested looking offshore, but with
our feet firmly planted on New Zealand
soil. Navigating today’s turbulent global
waters is about harnessing our spirit
of discovery, being customer-centric,
concentrating on how it CAN be done and
not letting anyone stop us.
The cover of this issue of Commerce
Comment is photographer Oliver Weber’s
interpretation of Sir Ray Avery’s message:
harnessing our Kiwi pioneering spirit to
navigate through global turbulent waters.
Sir Ray Avery is peering through an antique
World War I telescope, which was kindly on
loan from Yelverton Antiques Ltd. in Motueka.
Thanks to Oliver Weber Photography for
creating this issue’s cover image.
The Chamber welcomes the
following new members:
• Ansco Engineering
• Event Audio
• GMD Partnerships
• Konica Minolta Business Solutions
• McCashins Brewery
• Positive Potential
• PKN Trading
• PricewaterhouseCoopers
• Sea Dragon Marine Oils
• Super Tyre
• Switch Lighting
• Titan Slicer
• York Logistics
The Chamber
Dot Kettle
Chief Executive
Michelle McCree
Operations & Events Manager
Trina Zimmerman
Business Support Coordinator
Miritza Vining
Accounts
Caroline Johns
Membership Support
Design / print
Lucid Design
Design / layout
Printhouse
Printer
Chamber Board
Gerard Praat
President – Knapps Lawyers
Craig Dennis
Past President – The Nelson Mail
John Murray
Vice President – WHK
Chris Bowater
Board Member – Bowater Motor Group
Gillian Wratt
Board Member – Gilando Limited
Darryl Wilson
Board Member – Wilsons Abel Tasman
Lees Seymour
Board Member – Nelson Forests
Patrick Smith
Board Member – Patrick Smith HR
For all enquiries please contact
Trina Zimmerman (03) 548 1363
Nelson Tasman Chamber of Commerce
63 Trafalgar Street
PO Box 1121, Nelson 7040
Phone 03 548 1363
Fax 03 546 8373
Email info@commerce.org.nz
Web www.commerce.org.nz
2
Commerce Comment

Proposed Tax Simplifications for Small
Business
The Tax Committee of the New
Zealand Institute of Chartered
Accountants recently presented
a paper to Peter Dunne, Minister
Of Revenue, to stimulate debate
around how tax compliance
requirements can be simplified
for small business. The
themes advanced in the paper
would probably be regarded
as fairly radical by New
Zealand standards.
Research indicates tax compliance costs
(time and effort and cost incurred in
preparing tax filings and complying with tax
obligations generally) fall disproportionately
on small businesses.
The premise of the Paper is that the
preparation of annual ‘tax accounts’ can
be a worthwhile and valuable exercise if
done with management decision-making
or reporting to shareholders in mind, or
for the purposes of obtaining funding
(and demonstrating adherence to related
covenants) etc. On the other hand if these
accounts are being prepared simply for
the purposes of being able to complete an
income tax return, it is questionable whether
there is any value add from the business’s
perspective from the costs incurred to
produce those accounts.
The proposals can be broadly summarised
as follows:
“Micro-business” tax – business with
no employees, turnover of less than
$60,000, and not GST-registered:
Income tax payable at set rate of turnover
(for example 14% for non-traders and 7% for
businesses trading in goods) – these would
include a component for ACC levies;
Tax payments to be made monthly or
any time;
No income tax returns to be filed;
Income for social policy commitment
purposes (child support, student loans, WFF
etc) would be a set percentage of gross
income (eg 50%);
No further tax to pay when the business
distributes funds or profits to the owner/s.
“Small business” tax – business with
turnover less than $600,000, GST
registered, and possibly with employees:
Income tax computed on the GST return on
a cash/payments basis;
Both income tax and GST computed and
paid two-monthly;
Income of “small” companies or partnerships
to be treated as taxable to the owners at
their personal rates, and not taxable to the
company or partnership;
Dividends and shareholder salaries become
irrelevant and don’t need to be considered;
Purchases of stock and capital assets are all
deductible when paid for, unlike under the
current rules which delay these deductions;
No provisional tax (as we currently know it),
FBT, or entertainment tax requirements;
No (or less) balance date reconciliations,
stock takes etc.
It would be the business’s choice whether
to adopt whichever of these methodologies
applied to it - in other words it could choose
to continue to apply to same rules as it does
now.
One can debate the merit of the specifics in
the proposals. However they are based on
some interesting general propositions, and
certainly depart from the usual ‘tinkering’
that so-called tax simplification usually
amounts to. One hopes this is just the
start of worthwhile debate on this subject,
because reduced compliance costs for SMEs
in a country so reliant on the SME sector
in an overall economic sense must be a
worthwhile goal.
Mark Davies
Principal – Tax Consulting
ph 03 548 2139
email Mark.Davies@whk.co.nz
Call us to find out more about our customised Tax Health Checks. Designed to give you
peace of mind it can be tailored to suit your specific need. A great way to ensure
you are not paying more than you have to, whilst still complying with the tax laws.
T 03 548 2139
nelson@whk.co.nz
better advice for a better life
www.whk.co.nz
www.commerce.org.nz
3

Top Shop 2012
This year’s joint Top Shop supreme winners come
from different ends of the retail spectrum – a
small specialist wool shop with two owners and
one employee, and a large scale DIY store that
employs over 100 people and wears a national
brand badge. But they both have one thing in
common –knowledge and skills are available for
free with every item sold.
Ruth Benge and Vicki McGhee of Nelson wool shop Cruellas both
admit that owning a yarn store was not on their list of ambitions
when they were in their twenties, but that they are more than happy
with the way things turned out. “We’re following our passion,” says
Vicki. “I recently returned from a holiday and walked into the shop
and realised how beautiful it is. It’s something to be proud of.”
Being a supreme winner of the Top Shop Award two years running
doesn’t happen overnight. Ruth and Vicki have been in the wool
business for over twenty years, having been the first importers of
alpacas in to New Zealand in 1989. Their yarn business, Rare Yarns,
was developed as an outlet for the fine soft alpaca fleeces. Cruellas,
at 155 Hardy Street, Nelson is the retail face of the business, and the
place where they help knitters old and new create something special.
Vicki and Ruth’s attitude to customer service involves doing their
best to make sure people leave the store with a smile on their face.
“We spend lots of time working out what the customer wants. We
have all our designs made up but it can be confusing so we go
through the options to see what’s best: yarn and a pattern, a finished
garment or made to order,” says Ruth. “Normally knitters are working
blind – but we make sure they know what they are going to end up
with, and that the size is right which is very important. If they are
in a hurry, we tell them if possible to come back when they have
more time.”
Team members are also chosen for their trade skills and experience.
“We have ex-plumbers in the plumbing department, ex-painters in
the paint department, so you always get good advice from someone
who knows what they are talking about. We’ve also got people who
have worked for the company for up to 36 years and I know a lot of
our customers appreciate seeing the same smiley face when they
come in.”
DIY training adds another dimension to Mitre 10 customer service.
The Easy As training programme enables them to advise customers
on the best way to go about their project. “There are also videos
available on YouTube,” says David. “People want to do things for
themselves - everything from growing vegetables to painting the
house. A big part of our customer service is knowing the right tools
to do the job, and giving the right advice on how to use them.”
David says being a finalist in the Top Shop competition was an
incredible achievement for a big store. “It’s fantastic really, a huge
effort on the part of our customer service team to get it right.”
Ruth Benge and Vicki McGhee of Cruella’s Natural Fibre Boutique
And if you can’t knit, or find yourself in a knot, then Ruth and Vicki
will help. “We have knitting groups and workshops, and if people get
stuck with one of our projects they come in and ask. It’s all part of
the service.”
Making DIY easy is the main focus of customer service at Mitre
10 Mega. Making that happen with a customer service team of
around 100 employees is an everyday reality for General Manager
David Richards.
“We have great customers, which helps,” says David. “We do our best
to get it right, and we work as a team – rather than having a fixed
hierarchy.” The business is locally owned by the Field family, which
has been in the hardware business for 132 years, and David says that
having that history and experience within the business means that
there’s a sense of ownership amongst the team members that is
reflected in the way they approach their work.
“It’s our people that give us a point of difference; we say that they
need to have 10 percent skill, 10 percent knowledge and 80 percent
attitude. You can’t train people to smile.”
David Richards and the team at Mitre 10 Mega Nelson
Article and photos courtesy of Caroline Crick
4
Commerce Comment

Finalists for the 2012 Nelson Mail
Top Shop Awards
Health Beauty & Wellness
Food Beverage & Hospitality
Homeware, Giftware & Speciality
• Aboki Hairdressers Ltd
• Body Shop Nelson
• Haircraft
• McGlashen Pharmacy - Winners
• Nelson City Pharmacy
• Ellis St Takeaways
• Guytons Fresh Seafood (Richmond)
• McCashins Brewery Café - Winners
• New World Stoke
• Talley’s Fish Shop
• Eyebright
• Franks Trees
• Global Soap
• Pottering About - Winners
• Woodlea Floral Studio
Health, Beauty and Wellness Category – winner
McGlashen Pharmacy with Craig Dennis from
The Nelson Mail
Food, Beverage and Hospitality Category – winner
McCashins Brewery Café with Bryn Stephenson from
Office Max
Homeware, Giftware and Speciality Store Category –
winner Pottering About with Erik Roeper from
Air New Zealand Holidays
Recreation, Lifestyle &
Information Services
• Creations Unlimited
• Mitre 10 Mega Nelson - Winners
• Page & Blackmore
• United Travel Nelson – 100% for the
First Mystery Shop Survey
Recreation, Lifestyle and Information Services category –
winner Mitre 10 Mega Nelson with Chris Bowater from
Bowater Motor Group
Fashion, Footwear & Accessories
• Cheapskates
• Coastal Merchant
• Cruella’s Natural Fibre
Boutique - Winners
• Dames
• Hogeys Surf
• Overland Footwear
Fashion, Footwear and Accessories category – winner
Cruella’s Natural Fibre Boutique with Rowena Richards
from The Radio Network
The Nelson Mail Top Shop is all about recognising
and celebrating superior customer service.
Research shows that only 14% of customers
will leave because they were dissatisfied with
a product or service. And only 9% will leave
because they get enticed by the competition. But
a whopping 68% of customers leave because of
indifference. All the finalists showed they know
how to make customers feel special. To qualify
as a finalist a business needed to be in the top
ten in their category from both the results of the
independent mystery shop AND in the top ten in
their category for the number of customers who
voted for them as their top shop. Congratulations
to all the finalists this year. Top Shop 2012 was a
fantastic celebration. The only disappointment
for us was the error in two Independent Mystery
Shopping Surveys. We sincerely apologise for
that mistake and have really taken to heart the
importance of 100% accuracy – and have insisted
we get this in future from our Mystery Shopping
company – every time.
Photos courtesy of The Nelson Mail
Past Top Shop Winners
2011 Cruella’s Natural Fibre Boutique
2010 Global Soap
2009 Unichem Nelson City Pharmacy
2008 Village Cycles
2007 Bin Inn Nelson
2006 The Body Shop Richmond
2005 Tessa Mae’s with Attitude
2004 Bay Nurseries
2003 Nikau Gallery
2002 Seabreeze Takeaways
2001 Aboki Hairdressers
2000 Haven Road Store
1999 Queen Street Pharmacy
1998 Monterrey Hair
1997 Buddens Bookshop
1996 177 Clothing for Men
1995 Bodywise
1994 Serendipity
1993 Cardells
1992 Wakefield Pharmacy
www.commerce.org.nz
5

Students put their Hospitality on Show
Nelson Marlborough Institute of
Technology’s training restaurant
– The Rata Room gives students
the chance to showcase their
hospitality skills and the public
fine dining at a reduced cost.
NMIT’s Programme Area Leader for
Hospitality and Wellbeing Mark Bruce-Miller
says the Rata Room’s primary aim is to
provide a realistic environment to prepare
students for careers in hospitality.
“It’s NMIT’s way of showcasing the work of
our trainee chefs and restaurant, wine and
bar students and giving them hands-on
experience under the guidance of NMIT
tutors,” Mark says.
“It’s also a chance for the public to support
local students by giving them some work
experience, while trying something new and
having a fantastic meal for a fraction of the
price you’d pay elsewhere.”
The restaurant is served by year one
students studying NMIT’s Hospitality
and Cookery programmes. Second year
hospitality students are on hand as sous
chefs and mentors. All cooking is under the
guidance of a fully-qualified head chef.
One of the students’ first big functions for
the year was to prepare a graduation dinner
on 29 March for 23 Swedish students who
have been studying cultural tourism at NMIT.
Certificate in Cookery students in the classroom
The Rata Room Restaurant - NMIT’s Hospitality and Cookery Training Restaurant
The restaurant and its menu evolves through seminars run by suppliers and partners, as
the year depending on what students
well as master classes with visiting chefs
are learning. Meals start as casual, buffet and seasonal activities based around food
style lunches and dinners and progress to and wine. Winemakers Seifried Estates
restaurant service and fine dining later in the and Kaimira Estate Wines have sponsored
year as the students gain more experience the restaurant, and their wines will be
and their skills and knowledge improves. showcased through various wine courses.
Mark says the highlight of the year for diners Mark says the Rata Room may be a training
and students is the degustation dinners restaurant but the meals prepared by the
which are hosted by a local guest chef and students are of a very high standard.
wine expert, and include around six courses
“I can hand on heart say that the Rata Room
matched to local wines.
offers some of the best food in the Nelson
“NMIT’s hospitality and cookery students region. If you haven’t tried it yet – you need
experience the full spectrum of dining and to,” Mark says. “The feedback from the
cooking styles and techniques during their majority of people who’ve been here before
training,” Mark says. “The training restaurant is that the food is fantastic and well above
is an excellent way for students to apply what they would have expected from a
their skills and knowledge and to prepare training restaurant.”
them for work in a professional kitchen and
Opening hours are:
dining environment.”
Wednesday – Lunch, 12pm onwards
The Rata Room has been operating at
Wednesday – Dinner, 6pm onwards
NMIT for several years but only out of its
Thursday – Dinner, 6pm onwards
current premises in the new Hospitality and
Wellbeing building for three years.
Future plans for the Rata Room include more
community interaction with workshops and
See nmit.ac.nz
or or call 0800 422 733
for for more information
See nmit.ac.nzSee nmit.ac.nz
or call 0800 422 or 733 call 0800 422 733
for more information
more information
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NMIT Brings the World to Nelson
Nelson Marlborough Institute
of Technology is helping
bring an international flavour
to our businesses and wider
community through its
students.
More than 500 international students
study at NMIT each year from countries as
diverse as Sweden, Germany, China, India
and throughout the Pacific Islands. NMIT
helps prepare those students for work
through work experience opportunities,
unpaid internships or part-time jobs in
local businesses and organisations. Many
students go on to full-time work locally once
they graduate.
Recent research conducted by NMIT showed
international students who come to the top
of the South Island have a huge impact on
the local economy - spending over $21.5
million in the region during 2010 alone.
However, NMIT Chief Executive Tony Gray
says international students contribute more
to our region than just economic benefits.
“They bring a richness of cultural diversity,
knowledge and experience to our
communities while they’re here, which
we should neither underestimate nor
undervalue.”
Among those students is second year NMIT
Bachelor of Nursing student Wen Ting
Hu who, in between her study, works as a
caregiver at the Wood Retirement Village
and at a Chinese Restaurant in Nelson. “I
love to help people,” she says.
Wood Retirement Village offers placements
to New Zealand and international trainee
nurses studying the Bachelor of Nursing
degree and Certificate in Contemporary
New Zealand Nursing Practice at NMIT. The
company’s manager Correne Berryman says
it takes a special person to be a caregiver.
“You have got to have a kind caring attitude
to do this job,” she says. “I find that
international students are very dedicated
workers, very motivated and very reliable.”
She says the students have added an
important dimension to the village. “We
have enjoyed having international students
working here. They fit in very well and
become part of the family.”
Ms Hu has worked at the Wood Retirement
Village for more than a year and has found it
a rewarding and worthwhile experience. “It
also helps to improve my English and helps
me understand different cultures as well. I
love working in the rest home and being
with (the residents) and looking after them.”
Arun Kumar is another international student
making a positive difference in Nelson. Mr
Kumar graduated from NMIT’s Diploma in
Information Technology and now works as
a programmer and analyst at Nelson Bays
Primary Health (NBPH) helping looking after
the IT side of the organisation.
NBPH’s Information Systems coordinator
Nathan Bell says Mr Kumar was selected for
the job based on his attitude and expertise
– the fact he came from another country
was irrelevant.
“We took the best candidate and that was
Arun, it wasn’t important where that person
came from. We weren’t specifically looking
for a New Zealander or non-New Zealander –
we just wanted the best fit for the role.”
Mr Kumar says the most difficult part of
being a foreign student working in Nelson is
the language barrier.
“Students should focus on their English
before they come to New Zealand. My
NMIT graduate Arun Kumar who is employed as a
Programmer/Analyst at Nelson Bays Primary Health
English isn’t top level but it’s good enough
to communicate and make them understand
what I’m trying to say.”
NMIT works closely with New Zealand
Settlement Support to ensure newcomers
settle into the region and feel welcome here.
Nelson Tasman Settlement Support advisor
Sonny Alesana says the agency works
to connect international students with
potential employers and provides on-going
support where needed.
“We’ve been able to connect with employers
around using the skills of our international
students in the local market,” he says. “New
Zealand Settlement Support plays an
important role in ensuring these students
have a positive experience while they are
studying and working in our region.”
See nmit.ac.nz
or call 0800 422 733
for more information
See nmit.ac.nz
or call 0800 422 733
for more information
COME AND JOIN OUR YOUTUBE CHANNEL, TWITTER AND FACEBOOK PAGE, SEARCH NMIT
COME AND JOIN OUR YOUTUBE CHANNEL, TWITTER AND FACEBOOK PAGE, SEARCH NMIT

Aspire Conference 2012
The audience at this year’s
Aspire conference may have
missed an autumn day’s
sunshine, but in return they got
the benefit of listening to some
of the country’s top business
speakers and thinkers talking
about the opportunities and
challenges to be faced and the
tools that are on hand to deal
with them. It was a small price
to pay.
Headline speaker Sir Ray Avery survived
homelessness as a child in the UK to become
a successful pharmaceutical scientist and
philanthropist who has been behind world
changing health care technology and social
entrepreneurial initiatives. So he knows
something about challenges, and how best
to deal with them.
“You have to be customer-centric. Start with
what the customer wants. If you start with
an idea, you end up with a product but no
guarantee that anyone will want it. If you
start with a need, you have a market waiting
for you.
“People say “this can’t be done,” and I
respond, “So how are we going to do it then.”
With that attitude you learn how to get
around your problems.”
Sir Ray’s most successful health innovations
have come from asking the end users – i.e.
nurses in maternity wards in the developing
world – what problems they face in their
work, and then finding solutions to those
problems. He said that challenges such as
low economic growth facing New Zealand,
and more specifically Nelson, today, should
be faced through collaboration and
leverage off existing strengths. “Do an audit
of your assets. Bootstrap new ideas onto
existing successful products. Seek parallel
technology and ideas and keep your eyes
open for new technology that will solve
existing problems. And don’t forget to tell
the world about it.”
“Nelson has a stable workforce because of
its lifestyle – that’s a real asset that could
be exploited. Find new markets for your
existing tourism products and build scale.
There’s a need to attract new investment
and to do that the brand must be right. You
have to dare to dream”.
But of course along with expansion, growth
and new ideas comes risk. Lawyer Mai Chen,
founding partner of law firm Chen Palmer
and one of New Zealand’s top public lawyers,
specialises in managing business risk.
“Managing risk will give you market
advantage. Prevention is not a cure, you
have to get ahead of the game.”
Mai talked about the impact of regulation
on business.
“Regulatory risk is getting heavier and there
is an increased expectation to get it right
in terms of quality and ethics. If you get it
wrong, regulation can make it impossible
to operate. There is an increasing call for
accountability both in Government and the
private business sector.”
“Managing risk will give
you market advantage.
Prevention is not a cure,
you have to get ahead
of the game.”
Mai said that knowledge, “knowing the
numbers,” is integral to success. “There
is a lot of information out there about
Government issues and regulation, you just
have to know where to look for it.”
She also said that it is easier to influence the
business regulatory environment these days
“You can email the minister direct. Individuals
can change things! Talk to your Chamber of
Commerce, get them to lobby for you. Be
pro-active and see risk as opportunity. And
if you have an idea that will make the New
Zealand boat go faster, you might just get
some help from Government if you know
where to look.”
Someone who has first-hand experience
of managing business survival during
disruptive times is Richard Ballantyne,
Director and Executive Director of
Christchurch retailer J Ballantyne & Co Ltd.
His talk about resilience was underlined by
the survival of Ballantynes, not only through
the recent Christchurch earthquakes, but
through the terrible fire of 1947 that cost 41
lives and left the business insolvent. He said
that the strength of the company is very
much vested with its staff and that people
have been its priority throughout the
earthquake recovery period.
Innovation and collaboration play key roles
in developing new businesses and helping
existing organisations to survive. Simon
Stockdale, co-founder of Nelson-based Solar
City, believes that businesses should be
integrating innovative technology into their
strategic plans for the future.
“The question with technology is, are we
making it easier for the customer? They just
want stuff that works. Technology comes
in waves and mostly riding the wave is just
like surfing – a matter of timing. Technology
takes a long time to develop so you have to
be looking out for it to see what’s coming
down the pipeline. Otherwise by the time
you realise what’s coming it’s too late.”
Collaborative business models can
help private enterprise build scale and
productivity and stimulate value growth.
Gary Hooper is CEO of Aquaculture New
Zealand, a multi-company collaboration
marketing Pure New Zealand Greenshell
Mussels under a single brand through its
Shanghai based operation.
“NZ companies were competing with each
other in the US, so when the Chinese
market started to open up we approached
it with new thinking. The opportunities
in China are huge, with rapid GDP growth
and interest in marine products for beauty,
health and longevity. Food marketing needs
compelling reasoning as you are displacing
other foods out of the diet. But aquaculture
is set to supply 58% of global seafood
by 2020. Foresight and entrepreneurship
are inseparable when it comes managing
change and making the most of the business
opportunities out there.”
And for the future? Who will be paddling
the New Zealand boat and riding the waves
8
Commerce Comment

of change? Terry Shubkin, CEO of Young
Enterprise Trust, said that the paddlers of
tomorrow, the ‘net generation,’ are more
demanding, less patient and look for instant
gratification.
“But they also have a lot to say. We don’t
know what technical skills we will need in 40
years time but we know that the best habits
are learned young and the best lessons are
those experienced.”
So the Young Enterprise scheme in schools
give young people a hands on experience
of business. “They learn financial literacy,
experience entrepreneurship, and learn in a
safe environment that it’s OK to fail.”
And how will those entrepreneurs of
tomorrow succeed? According to Ambrose
Blowfield of The Marketing Company, they
will need to plan their marketing better
than we do today, and use social media to
keep a close eye on what is happening in
the marketplace.
“Social media is just a new way of networking,
but it’s so quick that we are not always
the first to hear information. If we make a
mistake, our competitors may know about it
before we do.”
Ambrose said that networking and referral
marketing is the strongest way to build
business, and that marketing is the start of
the sales process not the end, so planning it
is essential.
“In New Zealand it’s all about building
relationships and trust. Focus on the long
term relationship and on what they want
from you.”
So that was Aspire 2012. Be innovative
and customer focused but look after
those around you. Be informed in terms of
government and technology. Plan ahead,
support tomorrow’s leaders and don’t be
afraid to tell everyone how good we are!
Article courtesy of Caroline Crick.
www.commerce.org.nz
9

meet the members
GMD Partnerships Ltd
GMD Partnerships Ltd specialises in
organisational development, learning and
performance. Based in Christchurch, Nelson
and Dunedin we develop and facilitate
bespoke solution packages for business clients
both here in New Zealand and overseas. Our
strength and focus is on assisting organisations
to achieve their desired results through people
and process.
We work with businesses to develop
workshops and programmes to grow
leadership and management capability. Our
solution packages focus on, leadership - from
team leader to executive level, coaching, and
improving processes and operations. We have
hands-on experience in a variety of industries,
working with some very large, multi-sited
organisations. Our robust evaluation, planning
and delivery of solutions enable us to ensure
we meet the needs of your organisation
and employees.
We use the Kirkpatrick Four Levels approach
to determine your needs, design, deliver and
evaluate our learning solutions. 1
1
The Kirkpatrick Model was created by Dr Donald
L. Kirkpatrick. Please visitkirkpatrickpartners.com
for more information.
Kirkpatrick Four Levels is used by permission of
Kirkpatrick Partners Ltd
Gail Foster-Bohm
General Manager
PO Box 13920
Armagh, Christchurch 8141
P 0800 463 012
M 027 602 7765
E gail@gmdpartnerships.co.nz
W www.gmdpartnerships.co.nz
McCashin’s Brewery
McCashin’s Brewery was started in 1981 by
Terry McCashin who has been credited as
starting the craft beer revolution in New
Zealand. Lion Nathan purchased the Macs
brand from the family in 1999. McCashin’s
Brewery was re-opened in 2009 by Terry’s
eldest son Dean.
McCashin’s Brewery is still housed in
the historic Rochdale Cider Factory and
Rochdale Cider is still brewed on site as well
as the McCashin Family’s new beer offering
“Stoke” Beer.
Other products brewed on site include Stoke
Ginger Beer and Lemon Lime and Bitters,
26000 Vodka, Palaeo Water and Frute Real
Fruit Cider.
The Brewery is a “must visit” for visitors
to Nelson, offering daily brewery tours at
11am and 2pm Mon-Sat, free tastings, cafe,
bottlestore and bar.
For the locals, there’s happy hour 2-4pm
weekdays, free quiz night every Thursday,
Texas Hold’em Poker on Friday nights,
McCashin’s Market every Saturday from
12-4pm, live music Saturday 1-5pm and
Sundays 2-6pm, family friendly atmosphere,
$10 woodfired pizzas Thurs-Sun and Sublime
coffee seven days a week from 7am.
A quirky venue for work functions, events and
Xmas parties.
660 Main Road
Stoke
P (03) 547 5357
E enquiries@mccashins.co.nz
W www.mccashins.co.nz
Giving you access to over 40 years business experience
Positive Potential
Positive Potential provides Business Mentoring
and People Skills support.
A Business Mentor helps guide, challenge and
inspire Business Owners / Leaders to create
positive outcomes which are effective and
enduring.
Mentoring Services include: Coaching,
Business Excellence, Strategic Goal Setting,
Process & Efficiency Challenge and Financial
Management & Planning.
Positive Potential’s Vision is “to realise the
best outcomes for Businesses and unlock each
Individuals true potential”.
David is an Accredited Coach, a Mentor
with Business Mentors New Zealand and a
Chartered Banker.
A Banking career, in Leadership roles, gives
him a range of skills which can be adapted
to suit any situation a Business faces. Helping
individuals to grow personally, is a strong
motivator for David.
People Skills Services include: Key Leadership
Styles, Coaching and Mentoring, Service
Quality Excellence, Managing Change for
Success and Powerful Negotiations.
Positive Potential is a Registered Training
Provider under the New Zealand Trade &
Enterprise “Capability Development Scheme”
which supports Businesses with up to
50 employees.
David H Taylor
Principal & Managing Director
22 Edgewater Place
Rarangi, Blenheim 7273
P (03) 570 5411
M 022 135 3642
E david@positivepotential.co.nz
W www.positivepotential.co.nz
10
Commerce Comment

meet the members
PwC
PwC provides complete business solutions
for businesses of all sizes across the South
Island. From strategic planning and
succession planning through to accounting,
tax and audit requirements, we work with
local business to support their growth and
development. Whether you’re considering
hiring a professional services firm for the first
time, or looking to add to your pool of business
advisors, we invite you to experience our local
expertise and client focus backed by a national
and international network. Please visit our
website or call us to learn more about the
services we offer businesses like yours.
PwC services include: Strategic Planning,
management reporting, succession and exit
planning, governance models, company
and trust structuring, tax compliance and
consulting, financial statement preparation,
business appraisals, Inland Revenue disputes,
buying and selling businesses, share schemes
and capital raising.
To find out more, visit: www.pwc.co.nz or call
Peter Cody on 03 374 3039 or our office on 03
374 3000.
Peter Cody
Director
P (03) 374 3039
W www.pwc.co.nz
SUPER TYRE WAREHOUSE
SuperTyre imports commercial tyres direct
to port Nelson from China’s leading tyre
manufacturer. We sell direct to our customers
and, by missing out the middle men, we’re able
to offer some very competitive pricing.
SuperTyre cover the whole commercial range,
we import everything from van and 4x4 tyres
through to loader and dump truck tyres.
We have fully equipped service vehicles and
experienced service technicians on hand and
ready to visit your workplace or wherever your
vehicles may be to provide fittings and other
tyre servicing you may require.
We work closely with our customers to ensure
they’re getting the best tyre performance
while keeping tyre running costs to a minimum.
SuperTyre’s overriding policy is to provide our
customers with the most competitive tyre
pricing in New Zealand.
For a free quote and catalogue contact
SuperTyre via the contact details below.
Dayne Drummond
Sales & Marketing Manager
597 Lower Queen Street
Richmond 7081
P (03) 544 8360
M 027 661 8973
E dayne@supertyre.co.nz
Switch Lighting Ltd
Switch Lighting Ltd is a Nelson based company
specialising in the design, manufacture and
importation of high quality LED light products
for residential and commercial applications -
both interior and exterior. The majority of
our range is designed by us, we outsource
the machine work to New Zealand companies
and assembly is done at our Nelson base.
To complement our range, we import
select products from Lumoluce, a leading
European manufacturer.
Our product range is suited to both
new building and remodel applications.
Advantages of using LED:
• Long lasting – 50,000hrs, around 20yr +
lifetime per fitting
• Durable – solid state lighting, no moving
parts, no filaments, no gases
• Environmentally friendly – no mercury!
• Instant Start – no delay
• Energy efficient – save up to 80% on
traditional lighting energy consumption
• Cooler running – insulate right up to and
around, minimize any heat loss.
4/74 Quarantine Road
Nelson
P (03) 538 0151
E nelson.sales@redpaths.co.nz
W www.switch-lighting.co.nz
www.commerce.org.nz
11

meet the members
Trailways Hotel Nelson
Trailways Hotel offers three excellent venues in
the one conference centre for events, functions,
seminars, product launches, trade displays or
cocktail parties.
And now added to our portfolio of conference
rooms is the Lorenzo Room based at
Delorenzos Studio Apartments. This room is
ideal for product displays or day meetings and
offer the opportunity of interconnecting to an
accommodate suite.
The Service we offer for your next conference:
• Air conditioned, ground floor and sound
proofed conference rooms
• Audio Visual equipment for hire with
attentive staff to assist with audio
visual requirements
• Accommodation booking forms
and assistance
• Complimentary WIFI for all in house and
conference guests
• Full catering which can be enjoyed in The
Tides Restaurant
Recently installed in the Rivers Room is an
Interactive Whiteboard – the latest display
technology that combines the simplicity
of a whiteboard, power of a computer and
front projection
Please contact us so we can put together a
tailored package for your conference.
66 Trafalgar Street
Nelson
P (03) 548 7049
P 0800 872 459
E events@trailwayshotel.co.nz
W www.trailwayshotel.co.nz
Kelly Ogilvie – Travel Managers Nelson
Winner of Travel Managers Broker of the Year
Kelly has been in the travel industry for 12
years now. Her wealth of knowledge, expertise,
experience and her professionalism is what has
contributed to her winning the most prestige
award with Travel Managers New Zealand.
Since starting her own brokering company,
operating from her residential address,
Kelly has found that her clients appreciate
her efficient service and advice, which is
something, that is completely priceless when
you are planning a extensive itinerary.
She has also noticed that the Corporate Sector
are also wanting her professionalism and are
finding that the time she saves them is also
priceless for their business. She has proven to
a number of her corporate clients that she will
work so hard for them to make sure they get
exactly what is required.
Becoming a Travel Managers High Flyer and
also winning Broker of the Year while being
in her own business for only 18 months is a
huge achievement which has never been done
before.
Kelly Ogilvie
Travel Broker
54E Hunter Ave
Richmond
P (03) 544 4622
M 021 252 8686
E kelly@travelmanagers.co.nz
W www.ezytravel.co.nz
York Logistics
“Making Logistics Simple”
York Logistics was established in 2010 with the
vision to become one of New Zealand’s premier
boutique Logistics providers. We are a Nelson
based company with almost 20 years of industry
experience. We have the knowledge and contacts
to ensure that your freight moves in the most
cost effective manner whilst ensuring that your
deadlines are met. Our solutions are customized
for each customer to fully meet their needs. We
make your supply chain simple by taking away the
stress and time consuming tasks of sourcing the
best possible way to move your cargo allowing
you to focus on your core business.
Using our supply chain partners and industry
knowledge we are able to provide a customized
package to ensure that your freight needs are
fully met and that cost savings are achieved.
We understand the importance of your freight
needs and the reliance placed on your providers
to deliver a service package that suits you and
you customers.
We offer the full range of import and export
Logistics services from Couriers, Air Freight, Sea
Freight both full and part containers, Charter
services and customs brokerage. We also offer
house hold removals services to and from New
Zealand. Complimentary to this York Logistics
is able to insure your goods through our Marine
Insurance brokerage service. We offer a full and
comprehensive review of your current freighting
solutions with suggestions to stream line
your supply chain giving you cost savings and
effeicent freight movements.
We look forward to hearing from you and being
of service 0800 YORK LO.
Michael Sunderland
Managing Director
P 0800 YORK LO
M 021 0246 4144
W www.yorklogistics.co.nz
12
Commerce Comment

New 2012 CRV. By Honda
It's arrived at Bowater Honda.
From $39,900.00 plus on road cost
Lease from $569 per month plus GST *
Book your test drive today.
*45months/55,000kms. Honda Lease Direct lending criteria apply.
Bowater Honda:
108 Rutherford Street, Nelson 7040
Phone: (03) 548-7179 (General Enquires)
Nick: 0274 436 777 or Matt: 0272 434 312
www.honda.co.nz
Proud to be a Communication Sponsor of The Nelson Tasman Chamber of Commerce
“Commercial, Domestic, Life & Health Insurance – we have got it all
covered; have you?? Contact us now for a free, no-obligation quote.”
CROMBIE LOCKWOOD (NZ) LIMITED
14 Oxford Street, Richmond Phone: 03 543 9021 Website: www.crombielockwood.co.nz
www.commerce.org.nz
13

Trustee Duties
As there is no definitive record or register
of trusts in New Zealand it is difficult to
accurately determine the true number of
trusts in this country but let us just say that
they are popular; and that their popularity
does not appear to be fading.
It stands to reason that there are numerous
trustees out there, all subject to complicated
legal duties that require them to act in a
certain way. Are all trustees aware of their
obligations? Are they aware that failure to
adhere to any one of these duties could give
rise to the beneficiaries of the trust initiating
legal action against them personally?
The scope of the duties placed on trustees
are found partly in the Trustee Act 1956
but derive principally from case law. Such
duties are continually being debated but it is
generally accepted that there are core duties
which apply to all trusts no matter what the
terms of the trust deed as they go to the
heart of what makes a trust a trust. Trusts are
essentially the result of legal ownership of
property being transferred to trustees, not
for them to exploit for their own benefit, but
for them to deal with for the benefit of the
beneficiaries. The fundamental duties of
trustees have therefore been distilled as:
• a duty to perform the trust;
• a duty to act for the benefit of
the beneficiaries;
• a duty to ensure that the trust property
can be identified at any given time
(i.e. holding documents of title and
insurance); and
• a duty to act in good faith.
These core duties are mindful of the
distinction between trusteeship and
beneficial ownership of trust assets but
there are additional duties which have been
imposed on trustees which at a practical
level can give more guidance for trustees as
to how they are to fulfil their role adequately.
These are:
• to make acquaintance with the trust’s
terms (while this may be obvious, it
can be a problem. If you are a trustee
make sure that a copy of the trust deed
is made available to you, read it and
understand it);
• to adhere to the trust’s terms;
• to maintain impartiality between
beneficiaries (trustees must take
into account the interests of all the
beneficiaries and act even-handedly. This
can sometimes be a problem where a
family members or friends are involved);
• to act in the beneficiaries’ best interests
(including those not yet born);
• not to profit from trusteeship;
• to invest (under the Trustee Act 1956, a
trustee must exercise the care, diligence
and skill that a prudent person of
business when investing trust assets. It is
not uncommon for trustees to be sued by
beneficiaries for not acting in a prudent
manner if an investment of trust funds
goes awry);
• not to delegate;
• to be active (and not simply rely on cotrustees);
• to act unanimously; and
• to keep proper accounts and give
information as required (for instance,
a tax return must be filed and proper
records must be kept).
These duties run parallel with the rights of
the beneficiaries of the trust. For instance
a duty for a trustee to adhere to the terms
of the trust is directly connected with the
right of a beneficiary to enforce compliance
with the trust deed. If a trustee fails in its
obligations a beneficiary will inevitably have
the right to enforce compliance or seek
damages from the trustee resulting from
such a failure.
If you are a trustee it may be time to reexamine
your role and ensure that you are
aware of your obligations and are fulfilling
them correctly.
Contact:
Josh Boyce
Pitt & Moore Richmond
ph 03 543 9090
email josh.boyce@pittandmoore.co.nz
web www.pittandmoore.co.nz
Partners for success
Ph: nelson 03 548 8349, richmond 03 543 9090 W: www.pittandmoore.co.nz
14
Commerce Comment

BNZ Business View
Understanding the
Commercial Property
Recession
The New Zealand commercial property market
has experienced its largest recession since the
early 1990s. The situation was been further
exacerbated given it coincided with the largest
global balance sheet recession since the 1930s.
When looking at commercial property, it
is important to consider returns on a total
basis - that is, the income received plus the
capital appreciation. Over last three years total
returns on an annualised basis fell to -3.8%
in September 2009, but grew to +8.4% by
December 2011, which is still short of the long
term historical average total return of 10%.
Mar-09
Sep-09
Mar-10
Sep-10
Mar-11
Sep-11
Total return for direct commercial property,
rolling annual return on a quarterly basis
– Source PCNZ/IPD/BNZ
As you can see, income returns have been
relatively stable, at around 8% p.a. But the
same cannot be said for the capital returns,
which have a high degree of volatility and
can have a material impact on total returns.
However, a bit like owning your own home,
the fluctuations in capital values are unrealised
until you transact, and thus can be largely
ignored by long-term inter-generational
investors. They do, however, become
problematic for owners who are forced to
meet the market during the wrong part of the
business cycle.
The commercial property cycle.
Generally, commercial property has tended
to operate on a cyclical basis, predominately
as a result of the long lead times involved in
delivering sufficient supply to satisfy demand.
In economics this is commonly referred to
as a ‘hog-cycle’, where the market is never
in equilibrium, but always in various stages
of fluctuation.
The length of a property cycle varies, with the
last positive run (1995-2007) being one of the
longest recorded. It is commonly thought
property operates in cycles, with a typical
cycle being around seven years. Other schools
of thought say it may even be 18 years.
Clearly we had a pretty good run up to 2006,
but this led us into a false sense of security.
In the final two years of the last property
cycle, we saw transactions occurring almost
exclusively driven on the speculation of capital
appreciation, with land prices increasing on
a nearly exponential basis. Extrapolating the
results put us all on a dangerous path, with
offshore financiers dwarfing local bankers
risk appetites, and winning bidders being
those who (in hindsight) made the greatest
upward error in assessing the property’s value.
It felt like nearly every transaction set a new
valuation benchmark. Unfortunately for some,
the success turned out to be a winner’s curse,
as evidenced by the numerous receiverships
and bankruptcies within the industry.
Despite losses, local banks stood up well.
All local banks incurred various levels of
lending losses stemming from the market
correction but, importantly, they were
manageable within credit provisioning and
risk management practices. Some offshore
financiers fared less well.
At BNZ, we are a major player in the
commercial property market and a proof
to our commitment is the $7 billion of
lending we currently have advanced to the
sector. As a bank we hold expertise in both
direct investment through our Property
Finance Partners and indirectly through our
Private Bankers.
Property as an investment.
Commercial property is generally a good way
of seeking an investment that, on a long-term
horizon, correlates very well with national GDP.
Correlation of Total Property Returns and GDP
YoY nominal GDP v YoY Total Property Returns
– Source RBNZ/ PCNZ/IPD/BNZ
When you think about it, the value of a
property is linked to its ability to generate cash
flow. That cash flow comes from either tenants
trading operations (for investment properties)
or from sale and purchase agreements (for
developments). Therefore, the state of the
economy directly impacts on the long run
returns. To add spice to property investment,
there may also be short-term ‘additional
upsides’ that can be a result of supply and
demand imbalances or change in land use
(e.g. an industrial site becoming residential,
or a dry land farm being irrigated and turned
into dairy).
Thus the property market and the national
macroeconomic position are generally interrelated.
Within specific market segments there
are strong correlations:
• office with employment growth
• retail with retail trade, and
• industrial with GDP.
Because of this correlation with GDP, nearly
all investment portfolios hold an exposure to
property, either directly or via listed property
trusts.
So to discuss Property Investment or look at
options call into your nearest BNZ and we’ll
discuss how we can help you to be better off.
Contact:
David Young
Property Partner - Nelson and Marlborough
BNZ Partners
ddi 03 546 3831
mob 021 240 7668
email david_r_young@bnz.co.nz
Bank of New Zealand
Level 1, 226 Trafalgar Street, Nelson
www.commerce.org.nz
15

Corporate Catering and Venue Hospitality
When in the process of planning an event or function, choose one of the following chamber members
to assist with your specific requirements.
Blinc Catering
If you’re serious about food, call us...
ph 03 548 4768
web www.blinc.co.nz
Café in the Vineyard
Café and cellar door for the Waimea Estates
winery. Open 7 days, 10am-5pm.
ph 03 544 4963
web www.cafeinthevineyard.co.nz
Café Olive
Mediterranean warmth in the city–breakfast,
lunch, dinner, tapas, office shouts/catering.
ph 03 548 8755
web www.cafeolivenelson.co.nz
Columbus Coffee
Great coffee, delicious cabinet food,
and an extensive brunch menu, at a
stunning location.
ph 03 545 6454
web www.columbuscoffee.co.nz
Kudos Food Design
Fabulous, fresh flavoursome food that will
make your occasion every time!
ph 03 545 8090
web www.kudosfooddesign.co.nz
Lydia’s Café
Seriously delicious food, all made on
premises. Excellent coffee. Licenced.
ph 03 544 1020
McCashin’s Brewery - Cafe
- Bar - Bottlestore
A quirky venue; brewery tours, tastings,
woodfired pizza, quiz nights, full bar &
takeaway sales
ph 03 547 5357
web www.mccashins.co.nz
Melrose House
Choose this beautiful, historic venue for your
celebrations and corporate functions.
ph 03 548 7269
web www.melrosehouse.co.nz
Monaco Resort
A range of fantastic venues for your next
function, plus off-site catering available.
ph 03 547 8233
web www.monacoresort.co.nz
Petite Fleur at Seifried Estate
Quality Corporate Functions, customised
menus to suit any budget.
ph 03 544 1555
web www.petitefleur.co.nz
The Rutherford Hotel
Nelson – A Heritage Hotel
Convenient central city venue to suit all your
meeting requirements.
ph 03 548 2299
web www.rutherfordhotel.co.nz
The Suburban Club
Meeting rooms available matching all your
private or corporate function requirements.
ph 03 548 6815
web www.nelsonsuburbanclub.co.nz
The Vic Brew Bar Upper Room
The Upper Room - A stunning three
room function space in central Nelson.
Catering available.
ph 03 548 7631
web www.vicbrewbar.co.nz
Up the Garden Path Café and Gallery
Great food and inspiring ambience… perfect
for events, meetings and special clients.
ph 03 528 9588
web www.upthegardenpath.co.nz