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Bay of Plenty Business News December/January 2018

From mid-2016 Bay of Plenty businesses have a new voice, Bay of Plenty Business News. This new publication reflects the region’s growth and importance as part of the wider central North Island economy.

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<strong>Bay</strong> <strong>of</strong> plenty<br />

DECEMBER/JANUARY <strong>2018</strong> VOLUME 3: ISSUE 1 WWW.BOPBUSINESSNEWS.CO.NZ FACEBOOK.COM/BOPBUSINESSNEWS<br />

Crucial BOP forestry sector<br />

faces up to major changes<br />

Operator monitoring the fully automated sawline operation at Rotorua’s Red Stag<br />

Timber, one <strong>of</strong> the country’s most hi-tech wood processors. Photo: Red Stag Timber.<br />

The coalition government’s commitment to planting 1 billion<br />

trees in the next decade, and relocating the head <strong>of</strong>fice <strong>of</strong> a<br />

new ministry <strong>of</strong> forestry in Rotorua, have drawn wide attention<br />

in the region and generally been welcomed across the sector.<br />

The new ministry will be<br />

made responsible for<br />

developing and implementing<br />

a wide-ranging and<br />

comprehensive national forestry<br />

strategy. But it remains<br />

unclear exactly what form the<br />

new forest service will take<br />

and how it will operate.<br />

And wide-ranging interviews<br />

with industry sources<br />

indicate there will be a number<br />

<strong>of</strong> key challenges for the ministry<br />

to grapple with, including<br />

the availability <strong>of</strong> land and<br />

labour, and ongoing tensions<br />

between some <strong>of</strong> the wood<br />

processing, and log exporting<br />

sectors <strong>of</strong> the industry.<br />

(see pages 6 and 7 for further<br />

details)<br />

Julian Elder, chief executive<br />

<strong>of</strong> Rotorua-based Forest<br />

Research Institute Scion, said<br />

he was heartened by the focus<br />

put on forestry by the new<br />

government.<br />

“Scion has just celebrated<br />

its 70th year providing science<br />

to the forestry sector and we<br />

are excited about the opportunity<br />

that forests, trees and<br />

bioproducts <strong>of</strong>fer for New<br />

Zealand,” he said.<br />

“Rotorua is the hub <strong>of</strong> New<br />

Zealand forestry, and the Scion<br />

campus alone has 28 entities<br />

operating here. Establishment<br />

<strong>of</strong> a Forest Service to enable<br />

more trees to be planted and to<br />

help people do it right would<br />

benefit most from being located<br />

in Rotorua.”<br />

New Zealand Forest<br />

Owners Association chief<br />

executive David Rhodes said<br />

it would be a while before the<br />

new forestry ministry emerged<br />

and the industry saw what<br />

shape it would take.<br />

From an industry perspective,<br />

there was definitely a<br />

crucial role for the training<br />

and advisory work that used to<br />

be carried out by the old NZ<br />

Forest Service.<br />

“I think they’re going to be<br />

Scion’s Julian Elder.<br />

Photo: Scion.<br />

pretty crucial,” he said.<br />

Bryce Heard, chairman<br />

<strong>of</strong> the Central North Island<br />

Forestry and Wood Group,<br />

says relocating the ministry<br />

to Rotorua would be good for<br />

the region, and could also be<br />

expected to result in improved<br />

air services to Rotorua, particularly<br />

into Wellington.<br />

“There are benefits in having<br />

your operational people<br />

reasonably close to the action,”<br />

he said. “Rotorua is the hub<br />

<strong>of</strong> the industry. But we don’t<br />

know yet what shape or form<br />

the ministry’s going to take.”<br />

Marty Verry, chief exectutive<br />

<strong>of</strong> one <strong>of</strong> the industry’s<br />

most advanced wood processing<br />

companies Red Stag<br />

Timber, said he understood the<br />

ministry concept was to imbed<br />

a tranche <strong>of</strong> the bureaucracy<br />

in the industry to get real collaboration<br />

and mutual understanding<br />

going so all parts <strong>of</strong><br />

the sector could start working<br />

properly together on outcomes.<br />

Verry said the timber processing<br />

side <strong>of</strong> the industry<br />

would like to see building<br />

industry regulation <strong>of</strong> the quality<br />

and treatment <strong>of</strong> timber<br />

products brought back within<br />

the forestry service.<br />

“There’s bit <strong>of</strong> a wild west<br />

at the moment with the building<br />

industry,” he said, adding<br />

that it had been a mistake<br />

to bring building and construction<br />

within the Ministry<br />

<strong>of</strong> <strong>Business</strong> Innovation and<br />

Employment.<br />

Rotorua Mayor Steve<br />

Chadwick said the council was<br />

interested to see how it could<br />

support the government’s<br />

intention to base a ministry <strong>of</strong><br />

forestry in Rotorua.<br />

“It would obviously be a<br />

good fit for our district,” she<br />

said.<br />

“However, we don’t yet<br />

have a clear picture <strong>of</strong> what<br />

it will involve and therefore<br />

what it could mean for Rotorua<br />

or the wider <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>.<br />

We have no detail yet so we<br />

look forward to discussing it<br />

with [Forestry Minister Shane<br />

Jones] as soon as possible.”<br />

Stratus Blue wishes you a<br />

great Christmas<br />

& safe New Year<br />

TECHNOLOGY SOLUTIONS FROM<br />

NORTH POLE TO CHIMNEY<br />

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BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong> 3<br />

<strong>Bay</strong>fair wins sustainability awards<br />

Tauranga’s <strong>Bay</strong>fair Shopping Centre has taken out two awards<br />

at the 2017 NZI Sustainable <strong>Business</strong> Network Awards. The<br />

centre took out the top prize in the Hardwired for Social Good<br />

category and was also awarded the judges commendation for<br />

Revolutionising Energy.<br />

By DAVID PORTER<br />

<strong>Bay</strong>fair was also a finalist<br />

in the supreme category<br />

– the NZI Greatest<br />

Contribution to a Sustainable<br />

New Zealand Award.<br />

The Tauranga complex has<br />

a lengthy track record in sustainability<br />

and accessibility.<br />

The centre’s credentials<br />

include saving 370 tonnes <strong>of</strong><br />

paper, 60,000kgs <strong>of</strong> plastic,<br />

4 million kilowatts <strong>of</strong> energy<br />

and 1.8 million litres <strong>of</strong> potable<br />

water.<br />

Initiatives have included<br />

remodeling its food court to<br />

introduce organic/recyclable<br />

packaging, with a target <strong>of</strong><br />

achieving 100 percent waste<br />

diverted from landfuills by<br />

2020.<br />

<strong>Bay</strong>fair has also increased<br />

its grey and rainwater recycling<br />

catchment area and done<br />

a full centre LED retr<strong>of</strong>it.<br />

<strong>Bay</strong>fair’s centre manager<br />

Steve Ellingford is a member<br />

<strong>of</strong> Be. Accessible’ s esteemed<br />

Fab 50 group <strong>of</strong> influential<br />

business and social leaders<br />

advocating for a 100 percent<br />

accessible New Zealand.<br />

“Consumers are becoming<br />

increasingly eco-conscious,<br />

meaning businesses that ignore<br />

their environmental responsibilities<br />

could lose sales,” says<br />

Ellingford.<br />

“There are varying defi-<br />

nitions <strong>of</strong> sustainability as it<br />

relates to business, but in general<br />

it is about taking a longterm<br />

perspective, thinking<br />

about not just your bottom-line<br />

pr<strong>of</strong>it but the wider environmental<br />

and social impacts <strong>of</strong><br />

your business.”<br />

STEVE ELLINGFORD’S FIVE TIPS<br />

TO IMPROVE SUSTAINABILITY<br />

1. Little things add up: Begin<br />

with small changes. Survey your<br />

business and identify what tangible<br />

steps you can take to make a<br />

difference, no matter how small.<br />

2. Culture is key: Processes<br />

are only as good as the people<br />

following them. When you have<br />

a company culture that embraces<br />

sustainability, your staff will<br />

buy in and, in many cases, take<br />

the lead.<br />

3. Think long-term (but start<br />

now): The temptation is to wait<br />

until tomorrow to start your sustainability<br />

journey. Don’t.<br />

4. Sustainability increases<br />

pr<strong>of</strong>it: One <strong>of</strong> the myths that<br />

puts some businesses <strong>of</strong>f<br />

investing in sustainability is that<br />

it will cost them money. In fact,<br />

decreasing your environmental<br />

impact more <strong>of</strong>ten has a direct<br />

benefit for your bottom line.<br />

5. One size doesn’t fit all:<br />

Every business is different. For<br />

instance, one <strong>of</strong> <strong>Bay</strong>fair’s big<br />

initiatives has been reducing<br />

food and packaging waste from<br />

the food court. An important<br />

part <strong>of</strong> your sustainability stocktake<br />

is tailoring it to your business<br />

model and your industry.<br />

Summer Special at ASB <strong>Bay</strong>park<br />

In the spirit <strong>of</strong> Christmas,<br />

ASB <strong>Bay</strong>park have a<br />

Summer Special. Book<br />

and hold your meeting in one<br />

or more <strong>of</strong> our Arena suites<br />

anytime from now until end<br />

<strong>of</strong> March <strong>2018</strong> for complementary<br />

AV. (Please read the<br />

promotional advertisement<br />

below for details.)<br />

Pre-Christmas, Downtime<br />

Entertainment presents the<br />

SummerJam to quench the<br />

thirst <strong>of</strong> all the car enthusiasts<br />

on Saturday <strong>December</strong> 23.<br />

It’s a fitting way to round<br />

up a very successful ASB<br />

<strong>Bay</strong>park calendar <strong>of</strong> 2017<br />

events, with burnouts, cars,<br />

music and fun for all the<br />

family.<br />

Judging by the amount <strong>of</strong><br />

positive feedback regarding<br />

Downtown Entertainment’s<br />

WinterJam event earlier in<br />

July this will be a hugely<br />

popular event.<br />

The <strong>Bay</strong> Dreams Pre-<br />

Party on <strong>January</strong> 1 kicks <strong>of</strong>f<br />

the <strong>2018</strong> season with a host<br />

<strong>of</strong> popular artists including<br />

Danny Brown, Nao, The<br />

Black Seeds, State Of Mind<br />

and Summer Thieves.<br />

The main <strong>Bay</strong> Dreams<br />

premier event follows on<br />

<strong>January</strong> 2, keeping Mount<br />

Maunganui in the festive<br />

party mode and the place to<br />

enjoy a host <strong>of</strong> top artists performing,<br />

including D J Snake<br />

and Machine Gun Kelly.<br />

The much talked about<br />

and anticipated Bryan Adams<br />

concert follows close on<br />

the heels <strong>of</strong> <strong>Bay</strong> Dreams on<br />

<strong>January</strong> 5 and has rightly<br />

attracted huge media interest,<br />

especially with the likes<br />

<strong>of</strong> Dave Dobbyn, and the<br />

Jordon Luck Band as the support<br />

acts.<br />

<strong>Bay</strong>park will again host<br />

the first BA5 networking<br />

function for <strong>2018</strong> and we<br />

are pleased to be working<br />

with the Tauranga Chamber<br />

<strong>of</strong> Commerce again on this.<br />

To always keep it fresh<br />

and appealing, we will be<br />

announcing some new<br />

and exciting initiatives for<br />

<strong>Bay</strong>park at the function.<br />

The event is always popular,<br />

so early registration is<br />

recommended.<br />

Jetsprints is back on anniversary<br />

weekend starting<br />

Saturday, <strong>January</strong> 27, <strong>2018</strong>.<br />

The stadium will be transformed<br />

into a Jetsprint course<br />

like no other in NZ.<br />

The highly entertaining<br />

V8 Jetsprint boats will be<br />

in the main stadium and the<br />

newly created course will be<br />

throwing out a challenge testing<br />

the skill <strong>of</strong> the race crews<br />

to the limit.<br />

Following close after is<br />

D1NZ again in the Stadium.<br />

In a very short time, the<br />

field is turned from a canal<br />

course into a concrete drifting<br />

track.<br />

In <strong>2018</strong> for the first<br />

time D1NZ will include<br />

Rallycross with the course set<br />

both inside and outside the<br />

stadium, plus static displays<br />

and other activities. Several<br />

events all in one – over two<br />

days, Friday and Saturday,<br />

February 16, 17.<br />

The ASB <strong>Bay</strong>park team<br />

would like to thank all <strong>of</strong> its<br />

customers for their support<br />

through 2017.<br />

It brings us great pleasure<br />

to provide entertainment and<br />

activities for all the community<br />

<strong>of</strong> Tauranga. We wish<br />

you a joyful and safe festive<br />

season and a happy and prosperous<br />

New Year.<br />

We look forward to seeing<br />

you all again throughout<br />

<strong>2018</strong>.


4 BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong><br />

CONTACT INFORMATION<br />

Publisher<br />

Alan Neben<br />

Ph: (07) 838 1333 Mob: 021 733 536<br />

Email: alan@nmmedia.co.nz<br />

Sales director<br />

Deidre Morris<br />

Ph: (07) 838 1333 Mob: 027 228 8442<br />

Email: deidre@nmmedia.co.nz<br />

Editor<br />

David Porter<br />

Mob: 021 884 858<br />

Email: david@nmmedia.co.nz<br />

Studio manager<br />

Tania Hogg<br />

Ph: (07) 838 1333<br />

Email: production@nmmedia.co.nz<br />

Graphic designer<br />

Kelly Milne<br />

Ph: (07) 838 1333<br />

Email: kelly@nmmedia.co.nz<br />

ADVERTISING INQUIRIES<br />

Please contact:<br />

<strong>Business</strong> development manager<br />

Jody Anderson<br />

Ph: (07) 838 1333 Mob: 027 236 7912<br />

Email: jody@nmmedia.co.nz<br />

<strong>Business</strong> director<br />

Pete Wales<br />

Mob: 022 495 9248<br />

Email: pete@nmmedia.co.nz<br />

Account manager<br />

Sonia Fredrick<br />

Mob: 022 075 0418<br />

Email: sonia@nmmedia.co.nz<br />

ELECTRONIC<br />

FORWARDING<br />

Editorial:<br />

<strong>News</strong> releases/Photos/Letters:<br />

david@nmmedia.co.nz<br />

Production:<br />

Copy/Pro<strong>of</strong>s:<br />

production@nmmedia.co.nz<br />

Subscriptions:<br />

info@nmmedia.co.nz<br />

Waikato <strong>Business</strong> Publications Ltd<br />

specialises in business publishing,<br />

advertising, design and print<br />

media services.<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> <strong>News</strong> has<br />

a circulation <strong>of</strong> 8000, distributed<br />

throughout <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> between<br />

Waihi and Opotiki including<br />

Rotorua and Taupo, and to a<br />

subscription base.<br />

12 Mill Street, Hamilton<br />

PO Box 1425, Hamilton, 3240.<br />

Ph: (07) 838 1333 Fax: (07) 838 2807<br />

www.nmmedia.co.nz<br />

www.bopbusinessnews.co.nz<br />

From the editor<br />

This month’s cover story<br />

examines the wide-ranging<br />

changes signalled by<br />

the new coalition government<br />

for forestry, a crucial sector in<br />

the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>’s economy.<br />

The new government’s<br />

commitment to planting one<br />

billion trees in the next decade,<br />

and to relocating the head<br />

<strong>of</strong>fice <strong>of</strong> a new ministry <strong>of</strong> forestry<br />

in Rotorua, have drawn<br />

wide attention in the region<br />

and generally welcomed across<br />

the sector.<br />

The new ministry will be<br />

responsible for developing and<br />

implementing a wide-ranging<br />

and comprehensive national<br />

forestry strategy.<br />

But our wide-ranging interviews<br />

with industry sources<br />

indicate there will be a number<br />

<strong>of</strong> key challenges for the ministry<br />

to grapple with, including<br />

the availability <strong>of</strong> land and<br />

labour, and ongoing tensions<br />

between some <strong>of</strong> the wood<br />

processing, and log exporting<br />

sectors <strong>of</strong> the industry.<br />

In this issue we also examine<br />

the disconnect between<br />

what seems to be a growing<br />

global enthusiasm for electric<br />

vehicles (EVs) and the failure<br />

so far for plug-in and charge<br />

David Porter<br />

cars to have significant uptake<br />

in the local market.<br />

The arrival <strong>of</strong> EVs is<br />

unlikely to do much about<br />

Tauranga’s traffic woes, but<br />

they have received significant<br />

media coverage over the past<br />

year or so as a potential game<br />

changer, in large part because<br />

<strong>of</strong> promised improvements<br />

related to carbon emissions.<br />

But they have so far failed<br />

to make a major impact on<br />

local driving habits.<br />

It was great to see<br />

Tauranga’s <strong>Bay</strong>fair Shopping<br />

Centre, which has a lengthy<br />

track record in sustainability<br />

and accessibility, win two<br />

categories at the 2017 NZI<br />

Sustainable <strong>Business</strong> Network<br />

Awards.<br />

The centre took out the<br />

top prize in the Hardwired for<br />

Social Good category and was<br />

also awarded the judges, commendation<br />

for Revolutionising<br />

Energy.<br />

<strong>Bay</strong>fair was also a finalist<br />

in the supreme category – the<br />

NZI Greatest Contribution to<br />

a Sustainable New Zealand<br />

Award.<br />

Check out <strong>Bay</strong>fair centre<br />

manager Steve Ellingford’s<br />

five tips to improve your company’s<br />

sustainability (Page 3).<br />

This is our final issue <strong>of</strong><br />

2017, with our next issue coming<br />

out at the end <strong>of</strong> <strong>January</strong>.<br />

We’d like to thank our readers<br />

and advertisers for their<br />

support throughout the year.<br />

We’ve been delighted by<br />

the positive feedback we’ve<br />

received since our launch last<br />

year as the only <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

newspaper focusing exclusively<br />

on the achievements <strong>of</strong> and<br />

challenges facing the region’s<br />

businesspeople.<br />

We wish you all a Happy<br />

Christmas and New Year and a<br />

successful <strong>2018</strong>.<br />

David Porter<br />

Editor<br />

<strong>Bay</strong> <strong>of</strong> plenty<br />

THE REGION’S BUSINESS VOICE<br />

Situation vacant:<br />

Advertising account manager<br />

The role is to manage and develop new business for the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

<strong>Business</strong> <strong>News</strong> in both our print and digital <strong>of</strong>fering.<br />

Achieving top results for clients and maintaining ongoing relationships<br />

are key factors in this position, whilst working alongside a very<br />

successful team. Experience selling both print and digital media would<br />

be a distinct advantage.<br />

• Ideally have advertising or similar sales experience within the<br />

media industry<br />

• Enjoy the challenge <strong>of</strong> cold calling as well as managing a very busy<br />

client base<br />

• Get a buzz out <strong>of</strong> meeting and exceeding sales targets<br />

• Sales and/or customer services experience is essential<br />

• A can do positive attitude and ability to work independently and<br />

self-manage your workload<br />

• Be able to work effectively and efficiently under pressure and meet<br />

tight deadlines<br />

• Good computer skills are important along with good typing skills -<br />

experience using a CRM system would be an advantage<br />

• Have the ability to follow processes with high organisation and time<br />

management skills<br />

• Possess an excellent phone manner that is always friendly and<br />

pr<strong>of</strong>essional<br />

• Have strong relationship building skills and a keen interest in<br />

achieving results<br />

• An ability to multi-task with a high level <strong>of</strong> accuracy<br />

The role is a full time position based in the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> preferably<br />

Tauranga.<br />

If you are looking for a challenging role in a positive and friendly<br />

pr<strong>of</strong>essional environment, plus the benefits <strong>of</strong> working with a<br />

locally owned company then please email deidre@nmmedia.co.nz<br />

with your CV and Cover Letter. Only successful applicants will be<br />

contacted.<br />

0800 JIGSAW


6 BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong><br />

Challenges facing BoP’s crucial forestry sector<br />

The coalition government’s target <strong>of</strong><br />

planting 1 billion trees over the next<br />

decade is “doable”, say industry sources.<br />

However, there are two key challenges<br />

in meeting the target - finding enough<br />

suitable and accessible land, and the<br />

labour to carry out the planting.<br />

By DAVID PORTER<br />

Julian Elder, chief executive<br />

<strong>of</strong> Scion, the NZ<br />

Forest Research Institute,<br />

says the proposed amount<br />

<strong>of</strong> planting - approximately<br />

100,000 ha per annum - would<br />

approximately double current<br />

plantings to a level that was<br />

previously achieved during the<br />

1990s.<br />

“Major challenges to the<br />

government’s plan for tree<br />

planting are people and land,”<br />

said Elder.<br />

“I am sure this will be a significant<br />

focus for those implementing<br />

the plan. At Scion we<br />

see the opportunity from trees<br />

as very significant, not only for<br />

the whole economy, but also<br />

for regional economic development,<br />

regional communities,<br />

and also for the environment<br />

such as water quality, soil<br />

erosion and greenhouse gas<br />

reduction.”<br />

All sectors <strong>of</strong> the forestry<br />

sector have been broadly supportive<br />

<strong>of</strong> the government’s<br />

increased focus on the forestry<br />

sector, including imbedding a<br />

newly reconfigured ministry in<br />

Rotorua, one <strong>of</strong> the industry’s<br />

key regions.<br />

But although there has been<br />

better collaboration between<br />

the wood processing and the<br />

plantation sectors <strong>of</strong> the industry,<br />

tensions remain and could<br />

be exacerbated by the tendency<br />

<strong>of</strong> some wood processors to<br />

characterise log exports as low<br />

value “pillaging” <strong>of</strong> the sector.<br />

That is a viewpoint which<br />

seems to shared by new<br />

Forestry Minister Shane Jones<br />

- whose New Zealand First<br />

Party has favoured taxing log<br />

exports.<br />

During a November symposium<br />

in Northland, he told<br />

attendees he has had enough<br />

<strong>of</strong> raw logs being “scooped<br />

up and sent overseas, with<br />

no value added to the New<br />

Zealand economy.”<br />

Some national forestry<br />

leaders have welcomed a government<br />

move to make foreign<br />

forestry investors commit to<br />

processing more wood in New<br />

Zealand.<br />

But sources note that, while<br />

New Zealand has an internationally<br />

competitive plantation<br />

forestry industry, it no longer<br />

has a comparably competitive<br />

wood processing sector,<br />

with the exception <strong>of</strong> a few<br />

companies that have been<br />

investing for some years in<br />

Red Stag Timber chief executive Marty Verry: Pleased to see forestry<br />

come in out <strong>of</strong> the cold. Photo: Red Stag Timber.<br />

developing high tech facilities,<br />

such as Red Stag Timber,<br />

Pan Pac, Sequal Lumber and a<br />

few others.<br />

Bryce Heard, Rotoruabased<br />

chair <strong>of</strong> the Central<br />

North Island Forestry and<br />

Wood Group, says the majority<br />

<strong>of</strong> potential new commercial<br />

forestry land is not iwi land,<br />

but in freehold farming title.<br />

“I think government is<br />

under the misinterpretation<br />

they are going to get all this<br />

Maori land and plant it up. If<br />

they are, they are going to have<br />

to dig deep into the freehold<br />

pastoral land title to reach that<br />

target [<strong>of</strong> approximately 1 million<br />

ha over a decade].<br />

“And that can only be done<br />

if they stop meddling with log<br />

exports and using language<br />

like ‘scooping logs up and<br />

wasting them without creating<br />

any jobs’, which is rubbish.<br />

Trees don’t plant, grow, tend<br />

and harvest themselves without<br />

any labour.<br />

“Log exporters are no different<br />

from exporters selling<br />

kiwifruit, milk power, frozen<br />

meat or any other primary<br />

product.”<br />

The New Zealand logs<br />

exported tend to be lower grade<br />

and Heard says that while they<br />

could be processed in New<br />

Zealand, the sector would have<br />

to invest in world scale mills<br />

and a lot <strong>of</strong> automation.<br />

“The sawmills in this country<br />

make a lot <strong>of</strong> noise about<br />

log exports, but in fact all they<br />

are doing is trying to get people<br />

to intervene to protect an<br />

industry that - with a few notable<br />

exceptions like Red Stag<br />

and the like who are doing a<br />

great job - are out-<strong>of</strong>-date, too<br />

small and can’t compete internationally.<br />

Putting penalties on<br />

log exports is just going to<br />

discourage planting and ruin<br />

the growing side, which is very<br />

effective, very efficient and<br />

internationally competitive.”<br />

Long-time forestry consultant<br />

Dennis Neilson, <strong>of</strong> DANA,<br />

supports the view, saying that<br />

less efficient wood processors<br />

have been trying to prevent<br />

people exporting logs or make<br />

it so unattractive they have no<br />

choice but to sell to local timber<br />

saw mills.<br />

“But we are logging<br />

31 cubic metres a year and<br />

exporting 16-17 million cubic<br />

metres as logs. It’s an absolute<br />

fantasy to think that stopping<br />

log exports would be viable.<br />

“The processing industry<br />

can’t cope and a large percentage<br />

<strong>of</strong> logs exported are<br />

in grades not suitable for NZ<br />

sawmills or plywood mills.”<br />

Red Stag Timber chief executive<br />

Marty Verry says he doesn’t<br />

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Forestry: Could be more pr<strong>of</strong>itable for hill farmers than stock. Photo: Scion<br />

believe the government policy<br />

is aimed at a wholesale upgrade<br />

<strong>of</strong> the sawmilling sector. But he<br />

says the wood encouragement<br />

policy will generate demand<br />

for structural timber for a range<br />

<strong>of</strong> cross-laminated timber<br />

products.<br />

“Some <strong>of</strong> that will be met<br />

from existing operations, some<br />

<strong>of</strong> it will be met by investment<br />

in new or expanded operations<br />

in New Zealand,” he said.<br />

“I think there will be an<br />

upgrade as a result <strong>of</strong> the<br />

increased demand as the government<br />

implements its policies<br />

in recognition <strong>of</strong> wood’s<br />

role in climate change and<br />

meeting our commitments<br />

under the Paris Climate<br />

Accord.”<br />

Verry said he had interpreted<br />

the boost in planting as<br />

being led by the government,<br />

rather than carried out by it.<br />

“The difficulty is the<br />

low-hanging willing landowner<br />

fruit has been picked. The<br />

next tranches <strong>of</strong> land are where<br />

you’ve got more difficult to<br />

work with landowners or more<br />

remote areas. That’s going to<br />

be the challenge.<br />

“The momentum now and<br />

the price <strong>of</strong> carbon and the<br />

government facilitation is<br />

going to bring on tranches <strong>of</strong><br />

land that haven’t been economic<br />

before or where the<br />

landowners haven’t got their<br />

act together previously.”<br />

Generally, Verry said, the<br />

industry was pleased with the<br />

government’s approach and<br />

felt it had been “brought in<br />

from the cold”, after being<br />

bolted onto the Ministry <strong>of</strong><br />

Primary Industry with no real<br />

representation in cabinet in<br />

the past.<br />

New Zealand Forest<br />

Owners Association chief<br />

executive David Rhodes said<br />

the 1 billion tree target was<br />

doable. “But there are any<br />

number <strong>of</strong> challenges.”<br />

Rhodes says the problem <strong>of</strong><br />

accessing suitable labour was a<br />

major issue.<br />

He also said nurseries –<br />

especially small commercial<br />

nurseries that had been badly<br />

burned five or six years ago<br />

when they geared up for carbon-related<br />

plantings that<br />

didn’t really pan out – would<br />

be gunshy.<br />

“I’d expect a ramping up,<br />

but I wouldn’t think we will<br />

move to [an extra] 50,000 ha<br />

in the first two years. But it’s<br />

the direction <strong>of</strong> travel that’s<br />

important and we’re coming<br />

<strong>of</strong>f a very low base.”<br />

Rhodes acknowledged there<br />

was some tension between different<br />

sectors with the forestry<br />

industry, which now collaborates<br />

under an association <strong>of</strong><br />

associations called WoodCo.<br />

“It’s a commercial environment<br />

and there’s tension<br />

there,” he said.<br />

“WoodCo is important<br />

because it brings parties<br />

together and they can have<br />

these discussions.<br />

“What we need to do is, if<br />

we have timber here, ideally<br />

let’s use as much <strong>of</strong> what can<br />

be used onshore as possible,<br />

but recognise it isn’t all going<br />

to be suitable, and that having<br />

a log trade is pretty damn good<br />

for New Zealand as well.”<br />

NZFOA chair Peter Clark,<br />

who is chief executive <strong>of</strong><br />

major plantation management<br />

company PF Olsen, described<br />

the government target in a<br />

recent commentary as “entirely<br />

achievable.”<br />

But he noted that since the<br />

mid-1990s, pastoral land values<br />

had doubled and in some<br />

cases trebled.<br />

“That creates a challenge<br />

as the cost <strong>of</strong> land has a major<br />

impact on the investment<br />

returns from forestry,” he said.<br />

Land, labour and tree stocks<br />

were the three main blockages<br />

to overcome.<br />

“Of those land is by far<br />

the most challenging. To qualify<br />

under the Paris Accord the<br />

new forest must be on pasture<br />

land. Plantation forest owners<br />

do own pasture land.<br />

“The Crown has some that<br />

may be suitable, but by far the<br />

bulk is owned by farmers and<br />

iwi. These private landowners<br />

must be convinced that planting<br />

trees on their lands is a<br />

good idea.”<br />

Clark says entry <strong>of</strong> agriculture<br />

in the Emissions Trading<br />

Scheme (ETS) has been a good<br />

start because, especially if<br />

averaging is introduced, there<br />

was no need to wait 25 or more<br />

years for a cash return, meaning<br />

growers can see cash flow<br />

after five or six years.<br />

“Most hill country farmers<br />

do not yet appreciate that, in<br />

addition to <strong>of</strong>fering a natural<br />

hedge against a rising carbon<br />

price, well-located and managed<br />

woodlots are a more pr<strong>of</strong>itable<br />

land use than stock on<br />

that same land.”<br />

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Licensed REAA 2008


8 BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong><br />

Ten reasons to<br />

join the Tauranga<br />

Chamber in <strong>2018</strong><br />

The Tauranga Chamber <strong>of</strong> Commerce<br />

has been serving the local business<br />

community since 1904.<br />

By STAN GREGEC<br />

Chief Executive<br />

While times have<br />

changed hugely, there<br />

are still many good<br />

reasons to join a business association<br />

that exists wholly<br />

to support and represent the<br />

business owners <strong>of</strong> the region.<br />

Here’s 10 reasons to sign up as<br />

a member.<br />

1. Make new business<br />

contacts<br />

The Chamber sits at the very<br />

heart <strong>of</strong> what’s happening in<br />

the Tauranga business scene.<br />

We have by far the largest local<br />

networks and are also a<br />

doorway to many others. So if<br />

you’re looking for new business<br />

contacts, come to one <strong>of</strong> our<br />

many networking events and<br />

chances are you’ll be building<br />

your own network in no time.<br />

2. Stay informed<br />

Through our regular events<br />

and communications, we keep<br />

you up-to-date with what’s<br />

happening in the local business<br />

scene – as well as about<br />

national issues and legislative<br />

changes that can affect your<br />

business. The Chamber holds<br />

briefings on the most important<br />

changes.<br />

3. Be part <strong>of</strong> a collective<br />

business voice<br />

The Chamber takes its role<br />

seriously as the voice <strong>of</strong> local<br />

business, sounding our members<br />

out on their views on a<br />

range <strong>of</strong> issues <strong>of</strong> interest to<br />

business and putting forward<br />

submissions to local and central<br />

government on matters <strong>of</strong><br />

the greatest importance. The<br />

Chamber is very well connected<br />

and respected locally, and<br />

can open many doors for you<br />

when you need them.<br />

4. Upskill yourself and your<br />

team<br />

<strong>Business</strong> training and education<br />

are very much part <strong>of</strong> what<br />

we do, and we <strong>of</strong>fer an extensive<br />

programme <strong>of</strong> face-to-face<br />

courses, workshops and seminars<br />

on a multitude <strong>of</strong> topics<br />

that businesses need to keep<br />

abreast and tell us they want.<br />

Chamber members always get<br />

preferential access, and we are<br />

able to create and customize<br />

training for your specific inhouse<br />

needs.<br />

5. Get more business<br />

exposure<br />

Chamber membership provides<br />

instant credibility for your business<br />

and shows you are an active<br />

member <strong>of</strong> your local community.<br />

We also <strong>of</strong>fer multiple<br />

ways that you can showcase<br />

your business and promote<br />

yourself to our database <strong>of</strong><br />

8000+ local business contacts.<br />

6. Save on costs<br />

As a Chamber member you<br />

and your whole team can take<br />

advantage <strong>of</strong> exclusive deals<br />

and savings that have been negotiated<br />

on your behalf with a<br />

number <strong>of</strong> major national and<br />

local suppliers. Making use <strong>of</strong><br />

just a fraction <strong>of</strong> these can easily<br />

reimburse you for the total<br />

cost <strong>of</strong> your annual membership<br />

subscription.<br />

7. Get help for your business<br />

to grow<br />

The Chamber <strong>of</strong>fers a free<br />

business advice service and<br />

can help your business grow<br />

in a many ways. We are the<br />

local doorway to Government<br />

assistance to business including<br />

NZTE Capability Vouchers<br />

and Callaghan Innovation<br />

R&D grants, as well as access<br />

to a large pool <strong>of</strong> business<br />

mentors you can tap into.<br />

8. Recognise your business<br />

success<br />

We’re constantly on the lookout<br />

for talented individuals and<br />

business success stories, and<br />

have many ways <strong>of</strong> recognizing<br />

and celebrating business<br />

achievement in our community.<br />

The Chamber hosts the annual<br />

Westpac Tauranga <strong>Business</strong><br />

Awards as our region’s premier<br />

business awards event, and we<br />

also hold a separate event every<br />

year to recognize the contribution<br />

<strong>of</strong> younger pr<strong>of</strong>essionals<br />

and young people in business.<br />

9. Pay it forward<br />

For those individuals and businesses<br />

who would like to share<br />

their experience and knowledge<br />

with a newer generation, the<br />

Chamber provides an excellent<br />

platform for trainers, mentors,<br />

coaches, sponsors and those<br />

who would just like to give back<br />

to the community.<br />

10. Support Local<br />

Above all, the Chamber is<br />

about supporting and championing<br />

local business, and<br />

creating the best environment<br />

we can have to be in business<br />

and do business in our<br />

city and region. Most <strong>of</strong> our<br />

members are the small-tomedium<br />

sized battling businesses<br />

that <strong>of</strong>ten go under the<br />

radar but collectively make<br />

up the engine <strong>of</strong> growth in<br />

our community.<br />

There’s also an 11th reason<br />

for the start <strong>of</strong> the <strong>2018</strong> year.<br />

If you join in <strong>January</strong> or February,<br />

we’ll waive the normal<br />

joining fee as our way <strong>of</strong> welcoming<br />

you to the fold.<br />

New member <strong>of</strong>fer*<br />

Tauranga <strong>Business</strong> Training<br />

& Events Calendar Jan-Feb <strong>2018</strong><br />

Make business<br />

easier in <strong>2018</strong>...<br />

...by joining the Chamber.<br />

Join Tauranga Chamber members<br />

like Julie Hayes from BEENZ, Katikati<br />

Running a Successful One-Person <strong>Business</strong> (SBT)<br />

90 min workshop with Kamni Raju-Russell, B.A.B.E.<br />

The 5 Keys to Effective Networking (SBT)<br />

90 min workshop with Carmel Murphy, Networking Queen.<br />

Breakfast Connect in Welcome <strong>Bay</strong> (SBT)<br />

Guest speakers: Todd Muller MP and Bill Wasley (Smart Growth)<br />

Getting Ahead with Social Media<br />

½ day workshop with Mel Lee (Backchat Media)<br />

<strong>Business</strong> After 5 with <strong>Bay</strong> Venues<br />

Our premier monthly networking event<br />

Successful Engagement with your Maori <strong>Business</strong> Partners<br />

½ day workshop with Te Arahi Bryers (Taiaha Connect)<br />

Leading Effective Teams<br />

Full Day workshop with Claire Russell (Thinkplus)<br />

Navigating Digital Locally<br />

Workshop with Google NZ and NZME<br />

Breakfast Connect in Mt Maunganui (SBT)<br />

Hosted by Aviator Experience<br />

Te Hekenga III -National Maori <strong>Business</strong> Networks Conference<br />

2 Day conference at Trinity Wharf<br />

Surviving Your Small <strong>Business</strong> Start-up<br />

2hr seminar with Upshot NZ and partners<br />

BWN - <strong>Business</strong> Behind the Scenes<br />

Hosted by Ryan + Alexander Consultancy Ltd<br />

Plan for Success in <strong>2018</strong><br />

½ day workshop with Warwick McCormick (Learn.fast)<br />

Ultimate Motor Group / Chamber Annual Golf Tournament<br />

Omanu Golf Club, 11am-7pm<br />

Dealing with Difficult People<br />

½ day workshop with Charlie Dalton (Zest Training)<br />

Breakfast Connect in Papamoa (SBT)<br />

Hosted by Living <strong>Business</strong><br />

How to Hire Superstars<br />

½ day workshop with Senga Allen and Tani Hansen (Everest)<br />

23 Jan<br />

23 Jan<br />

26 Jan<br />

2 Feb<br />

7 Feb<br />

9 Feb<br />

13 Feb<br />

14 Feb<br />

14 Feb<br />

15-16 Feb<br />

16 Feb<br />

20 Feb<br />

20 Feb<br />

23 Feb<br />

27 Feb<br />

28 Feb<br />

28 Feb<br />

*Join the Tauranga Chamber in Jan-Feb <strong>2018</strong> and pay no additional joining fee.<br />

For new online subscriptions only. USE PROMO CODE: JOINNEWYEAR18<br />

For more details visit www.tauranga.org.nz<br />

Everyone is welcome to attend Chamber events. Special pricing for Chamber/SBT<br />

members. Some training events may be eligible for partial funding. For more information<br />

and to find out how the Chamber can support your business call our Bizhelp line on<br />

0800 249 482 or email bizhelp@tauranga.org.nz<br />

All events subject to change.<br />

For latest details and to register, visit:<br />

www.tauranga.org.nz


BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong> 9<br />

<strong>Business</strong> mentors make an impact<br />

Maker Design Studio’s Mat McMillan<br />

attributes a big part <strong>of</strong> the company’s<br />

success - it won the emerging business<br />

category at last month’s Westpac<br />

Tauranga Awards - to help from his<br />

business mentor Ian Kirkpatrick.<br />

By DAVID PORTER<br />

“My wife Cat, who had<br />

scaled down her<br />

own fulltime work<br />

commitment to help build up<br />

Maker, had the idea <strong>of</strong> entering<br />

the awards,” said McMillan.<br />

“And she was familiar with<br />

the awards process and did the<br />

paperwork and legwork. But<br />

Ian has been instrumental in<br />

helping us make the business<br />

the growth success it has been,<br />

which is effectively why we<br />

won the award.”<br />

McMillan started Maker<br />

Design Studio about three<br />

years ago to design and create<br />

hand-crafted wooden light fittings.<br />

By early 2016, he could<br />

see the business was beginning<br />

to take <strong>of</strong>f. But as essentially<br />

a one-man band craftsman in a<br />

shed, he was doing everything<br />

himself from scratch.<br />

“I had worked in other<br />

businesses, but I had no real<br />

business training. I’m from a<br />

craft background and I was<br />

transitioning from that hourly<br />

rate thinking to scaling up.”<br />

McMillan said his philosophy<br />

had always been that he<br />

didn’t want to take on too<br />

much risk in terms <strong>of</strong> increasing<br />

staff numbers.<br />

His wife’s decision to<br />

become involved boosted the<br />

admin and marketing side <strong>of</strong><br />

the business. but McMillan<br />

was still tied up with the operational<br />

side. He got in touch<br />

with <strong>Business</strong> Mentors NZ,<br />

which is one <strong>of</strong> the services<br />

available from the Tauranga<br />

Chamber <strong>of</strong> Commerce under<br />

its Regional <strong>Business</strong> Partner<br />

contract.<br />

The service provides access<br />

to local mentors who volunteer<br />

their time to assist small businesses.<br />

In return for an annual<br />

registration fee, local business<br />

people are paired up with a<br />

compatible mentor and usually<br />

get together monthly to discuss<br />

strategy, issues and challenges.<br />

McMillan was so pleased with<br />

the results that he signed up<br />

for a second year <strong>of</strong> mentoring<br />

with Kirkpatrick.<br />

A lot <strong>of</strong> it is a case<br />

<strong>of</strong> a problem shared<br />

being a problem<br />

halved. They all<br />

say it’s very helpful<br />

to run stuff past<br />

somebody else<br />

and get another<br />

perspective.<br />

“He really helped me make<br />

the transition from being a oneman<br />

band,” said McMillan,<br />

who also noted it had been<br />

very helpful to have someone<br />

outside the business to bounce<br />

ideas <strong>of</strong>f.<br />

Solutions have included<br />

outsourcing the production <strong>of</strong><br />

some <strong>of</strong> the components, and<br />

taking on a part-time contract<br />

employee to help with putting<br />

the lighting fixtures together.<br />

He is now adding a second<br />

contracted employee.<br />

Kirkpatrick decided to volunteer<br />

as a mentor when he<br />

retired after many years as a<br />

businessman and executive<br />

director <strong>of</strong> a company operating<br />

in the Asia Pacific region.<br />

“Mat has been very good<br />

with his marketing,” said<br />

Kirkpatrick.<br />

“I’ve mainly helped him<br />

Maker Design Studios’ Mat McMillan and mentor Ian Kirkpatrick: Learning from experience. Photo: Supplied.<br />

with business structure and<br />

strategies. We helped him set<br />

up his business in a way that<br />

was quite easy for him to manage.”<br />

Kirkpatrick said the small<br />

business owners he mentored<br />

were all different.<br />

“A lot <strong>of</strong> it is a case <strong>of</strong> a<br />

problem shared being a problem<br />

halved. They all say it’s<br />

very helpful to run stuff past<br />

somebody else and get another<br />

perspective.”<br />

Gail Hardie, <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

manager for <strong>Business</strong> Mentors<br />

NZ, said the organisation had<br />

been operating since 1991.<br />

“We rely on volunteer mentors<br />

to give their time and<br />

expertise to help business<br />

owners be more successful.<br />

Generally speaking they meet<br />

on a monthly basis, chew the<br />

fat, bounce ideas around and<br />

gain perspective.”<br />

There are about 170 volunteer<br />

mentors in <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

with approximately 150 cur-<br />

rent mentor clients.<br />

There is now also a separate<br />

organisation, Community mentors<br />

(see accompanying story).<br />

“We recognised there was a<br />

large number <strong>of</strong> not-for-pr<strong>of</strong>its<br />

that had business arms, but<br />

didn’t get any mentoring support,”<br />

said Hardie. There were<br />

already many mentors in the<br />

pool who had not-for-pr<strong>of</strong>it<br />

experience, and Community<br />

Mentors is looking to build up<br />

those numbers.<br />

More mentors with community<br />

experience needed<br />

Community Mentors<br />

is calling for <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> people with<br />

experience in the community<br />

and not-for-pr<strong>of</strong>it sector<br />

to volunteer their time<br />

to support the region’s<br />

charities and community<br />

organisations.<br />

Community Mentors provides<br />

support and guidance<br />

by leveraging key skills and<br />

experience in governance,<br />

management and operation<br />

<strong>of</strong> a business, charity, social<br />

enterprise or not-for-pr<strong>of</strong>it<br />

organisation.<br />

The organisation’s general<br />

manager Lisa Ford said<br />

mentors were passionate,<br />

committed individuals who<br />

wanted to see their communities<br />

prosper and grow in a<br />

sustainable way.<br />

“We’re looking for those<br />

with business and not-forpr<strong>of</strong>it<br />

management or governance<br />

experience who<br />

would be willing to share<br />

their knowledge with local<br />

community organisations<br />

in Rotorua, Whakatane and<br />

Tauranga,” she said.<br />

“Mentors don’t need to<br />

be experts, they just need<br />

to bring their real-life experience,<br />

know-how and be<br />

able to spare an hour or two<br />

a month.”<br />

There are currently 38 volunteer<br />

community mentors in<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, and they are<br />

looking to grow the pool to<br />

give the depth <strong>of</strong> knowledge<br />

and expertise needed to meet<br />

current demand.<br />

Alan Withy, who has<br />

been a community mentor<br />

<strong>of</strong>f-and-on for nearly 20<br />

years, uses his experience<br />

from working in management<br />

and governance <strong>of</strong><br />

commercial and not-forpr<strong>of</strong>it<br />

sectors to help organisations<br />

in need.<br />

“Being a mentor is<br />

incredibly rewarding,” said<br />

Withy.<br />

“Many organisations<br />

have good intentions but<br />

need refocusing from time<br />

to time. Often I’m just a<br />

person to bounce ideas <strong>of</strong>f<br />

but that’s <strong>of</strong>ten all someone<br />

needs.<br />

“Plus, I feel like I’m<br />

doing my bit for the community<br />

by passing on the<br />

experience and knowledge<br />

I’ve built up over the years,”<br />

he said.<br />

Anyone can become a<br />

community mentor, insists<br />

Ford.<br />

“Whatever the organisation<br />

you’re running and the<br />

type <strong>of</strong> support you need, we<br />

try and match an appropriate<br />

mentor to you. That’s why<br />

we need volunteer mentors<br />

from a range <strong>of</strong> backgrounds,”<br />

said Ford.<br />

Community Mentors<br />

are fully supported in their<br />

role to help overcome some<br />

<strong>of</strong> the challenges faced by<br />

charities, not-for-pr<strong>of</strong>its<br />

and social enterprises and<br />

to share and develop good<br />

practice principles.<br />

What we really<br />

need is a fresh<br />

perspective…<br />

Often small business owners get bogged down in day-to-day operating details and<br />

forget to “take the helicopter ride up” to look at their business from a distance.<br />

A <strong>Business</strong> Mentor can help you refocus on achieving your goals and objectives.<br />

www.businessmentors.org.nz<br />

P: 0800 209 209


10 BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong><br />

<strong>Bay</strong>’s attractions continue to lure new talent<br />

As we draw to the end <strong>of</strong> 2017 with our eyes fixed firmly upon<br />

<strong>2018</strong> it seems a logical time to reflect on the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> job<br />

market and how it has performed across the last 12 months.<br />

There’s no doubt that<br />

house prices, pressures<br />

<strong>of</strong> life in the large cities<br />

and the desire for lifestyle have<br />

seen numerous individuals and<br />

families choose to make our<br />

wonderful region home.<br />

HUMAN RESOURCES<br />

> BY CATHERINE BROWN<br />

Tauranga Branch Manager, Recruitment & HR Specialist,<br />

Talent ID Recruitment Ltd<br />

Many who have relocated<br />

from larger cities across New<br />

Zealand and have partnered<br />

with Talent ID Recruitment on<br />

their job search, have cited<br />

their reasons for the move<br />

being to become mortgage-free<br />

or even to swap renting for<br />

home-ownership.<br />

The continuation <strong>of</strong> this<br />

trend shouldn’t be a surprise<br />

to us given that we started<br />

the year with the news that<br />

Tauranga has moved past<br />

Dunedin as New Zealand’s<br />

fifth-largest city.<br />

Tauranga has not been the<br />

only city within the <strong>Bay</strong> to<br />

experience growth.<br />

In 2016 Rotorua marked<br />

its strongest annual growth in<br />

the last decade and it looks<br />

like 2017 is set to outperform<br />

again.<br />

We believe that as both<br />

economies continue to experience<br />

growth, large city dwellers<br />

continue to question and<br />

evaluate what life would be<br />

like if they exchanged big city<br />

life for a smaller city in the<br />

regions.<br />

For some it is a case <strong>of</strong><br />

returning home, for others<br />

making the move to their<br />

favourite holiday destination.<br />

And many are simply starting<br />

anew in the hope <strong>of</strong> striking<br />

a better balance between<br />

career and lifestyle.<br />

People across all different<br />

ages and stages with varying<br />

career backgrounds are<br />

opting to leave the big cities<br />

and Rotorua and Tauranga are<br />

now being viewed by many<br />

as much more than a holiday<br />

spot.<br />

Individuals have realised<br />

that the right career opportunities<br />

can be found outside <strong>of</strong> the<br />

large cities.<br />

In summary, this has been<br />

another year <strong>of</strong> growth for <strong>Bay</strong><br />

<strong>of</strong> <strong>Plenty</strong> employers and with<br />

the election behind us and a<br />

new year ahead, we expect<br />

businesses here will continue<br />

to receive inquiries from those<br />

wishing to make our region<br />

home.<br />

We encourage employers<br />

and locals to continue to welcome<br />

these newcomers to the<br />

region and to understand that<br />

our region will be stronger<br />

in the future as a result <strong>of</strong><br />

having access to a wider pool<br />

<strong>of</strong> talent.<br />

Looking ahead to <strong>2018</strong>,<br />

there will be plenty <strong>of</strong> challenges<br />

for employers to consider<br />

with a change <strong>of</strong> government<br />

and policies.<br />

There are already reported<br />

changes to immigration – further<br />

impacting on the current<br />

skill shortages, changes to<br />

employment law, such as the<br />

90 day trial period, and planning<br />

for the incremental rise in<br />

the minimum wage.<br />

<strong>2018</strong> will be a year <strong>of</strong><br />

change and challenges.<br />

Wishing you all the very<br />

best for the festive season.<br />

Making use <strong>of</strong> brand advocates<br />

We’ve all seen them. TV ads featuring Richie McCaw as the<br />

face <strong>of</strong> Fonterra, Brendon McCullum telling Kiwis to “Dream<br />

Big” for ANZ, and George Clooney using his well-practised<br />

charm to sell Nespresso c<strong>of</strong>fee machines.<br />

TELLING YOUR STORY<br />

> BY JAMES HEFFIELD<br />

Director <strong>of</strong> <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> communications consultancy Last Word<br />

Writing Services. To find out more visit lastwordwriting.co.nz or<br />

email james@lastwordwriting.co.nz.<br />

Getting a familiar and<br />

trusted name to champion<br />

your brand can<br />

be a powerful marketing tool,<br />

lending credibility to your<br />

business and the products and<br />

services it <strong>of</strong>fers.<br />

The technique isn’t new<br />

– it’s been used for decades,<br />

from Frank Sinatra championing<br />

Chesterfield cigarettes in<br />

the 1950s and Brooke Shields<br />

as the brand ambassador for<br />

Calvin Klein Jeans in the<br />

1980s, to David Beckham as<br />

the face <strong>of</strong> Adidas in the 2000s.<br />

But choosing a brand champion<br />

requires thought. It’s<br />

important their background,<br />

beliefs, appearance and the<br />

way they live their life align<br />

with your company’s message.<br />

Stephen Fleming works<br />

well for Fujitsu, whereas<br />

Brendon McCullum - who<br />

acknowledged in his autobiography<br />

that he couldn’t watch<br />

the end <strong>of</strong> the semifinal win<br />

over South Africa because he<br />

was smoking in the toilets -<br />

might not quite fit the mould<br />

for a company claiming to sell<br />

“New Zealand’s cleanest air”.<br />

Meanwhile, celebrities that<br />

seem like the perfect fit can<br />

become liabilities if they make<br />

morally questionable decisions.<br />

Lance Armstrong and Tiger<br />

Woods were ideal advocates<br />

for Nike for the bulk <strong>of</strong> their<br />

careers, but not after their<br />

respective indiscretions.<br />

You’ve also got to be realistic<br />

when choosing a brand<br />

champion.<br />

Unless you have a personal<br />

connection, convincing a wellknown<br />

celebrity to put their<br />

name on the line to endorse<br />

your product may not be easy.<br />

Some celebrities charge big<br />

money and others will want<br />

reassurance that the quality<br />

<strong>of</strong> your products and services<br />

won’t reflect badly on them.<br />

After all, celebrity endorsement<br />

is a two-way street – it’s<br />

about the celebrity’s brand as<br />

well as your own.<br />

Fortunately, brand advocacy<br />

isn’t all about celebrities<br />

talking your products and services<br />

up on TV.<br />

Some New Zealand companies<br />

have managed to make<br />

their employees into powerful<br />

ambassadors – think Bunnings<br />

and its staff-led TV ads – and<br />

everyday Kiwis can be powerful<br />

influencers too.<br />

The 2015 Nielsen Global<br />

Trust in Advertising study<br />

found that two-thirds <strong>of</strong> consumers<br />

(66 percent) trusted<br />

consumer opinions posted<br />

online. How many times have<br />

you looked online at reviews<br />

before you purchased that<br />

new car, washing machine, or<br />

microwave? People really do<br />

care about what their peers<br />

say about a company in online<br />

forums or on review websites.<br />

Some businesses feel they<br />

are powerless to influence<br />

customer reviews and online<br />

conversations, but that isn’t<br />

quite true.<br />

Firstly, they can provide a<br />

high-quality service or product<br />

– doing that will significantly<br />

increase the chances that<br />

online comments about you<br />

are positive.<br />

Secondly, they can encourage<br />

those who use their products<br />

or services to post reviews<br />

online, even incentivising<br />

people to post feedback on<br />

Facebook or review sites <strong>of</strong><br />

your choosing by <strong>of</strong>fering free<br />

giveaways for those who make<br />

the effort.<br />

And thirdly, if people do<br />

post negative feedback on<br />

review websites or social<br />

media, going above and<br />

beyond the call <strong>of</strong> duty to<br />

resolve their complaint can<br />

potentially transform critics<br />

into vocal advocates.<br />

It goes to show that even<br />

small businesses can make use<br />

<strong>of</strong> brand advocates, and sometimes<br />

create a few <strong>of</strong> their own.<br />

With some imagination and<br />

a bit <strong>of</strong> effort, it’s very possible<br />

to get others to champion your<br />

company - and that’s almost<br />

always more powerful than<br />

shouting from the ro<strong>of</strong>tops on<br />

your own.<br />

Cool Job • Hot Location<br />

For employment solutions across the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, partner with Talent ID<br />

Temporary & Contract Staff<br />

Permanent Recruitment Solutions<br />

Skill & Psychometric Assessments<br />

Redundancy & Outplacement<br />

Interview Coaching<br />

Human Resource Consulting<br />

• Tauranga • Rotorua • Taupo •<br />

0800 850 080<br />

J7083A


BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong> 11<br />

Four myths about<br />

finding the perfect<br />

commercial lease<br />

You may be currently hunting down the cheapest <strong>of</strong>fice out<br />

there with the determination <strong>of</strong> a detective, but securing your<br />

perfect brand base isn’t all about finding the lowest-priced<br />

lease. Here’s our list <strong>of</strong> commercial real estate myths – and<br />

the takeway tips that can help guide your decision.<br />

MYTH 1: Getting cheap rent<br />

is my first priority. When<br />

searching for somewhere to<br />

live, price is usually the first<br />

criteria. While you can handle<br />

a cheap, but small apartment,<br />

a cramped <strong>of</strong>fice can really<br />

affect your business – causing<br />

your best employees to look<br />

elsewhere and your best clients<br />

to follow suit.<br />

That’s why leasing a dark<br />

cube <strong>of</strong> an <strong>of</strong>fice for $200<br />

per month cheaper than a purpose-fitted<br />

one filled with natural<br />

light may not be a saving<br />

<strong>of</strong> $200 after all.<br />

Takeaway tip: Focus first<br />

on finding the right <strong>of</strong>fice for<br />

your business. Then look at<br />

the total occupancy cost over<br />

the entire lease term – including<br />

IT, cleaning, admin and<br />

furniture.<br />

You will find the total occupancy<br />

cost that works in your<br />

favour, in addition to providing<br />

non-tangible benefits such as<br />

maintaining healthy staff and a<br />

great brand pr<strong>of</strong>ile.<br />

MYTH 2: One contract fits all.<br />

Most <strong>of</strong> the residential renting<br />

laws don’t apply to commercial<br />

leases.<br />

And there are many more<br />

things to take into consideration<br />

than whether your couch<br />

will fit in the corner.<br />

Commercial leases are customisable.<br />

Suggest customising<br />

yours to both your and<br />

your landlord’s advantage.<br />

Takeaway tip: Instead <strong>of</strong><br />

looking for the perfect lease,<br />

look for a great landlord.<br />

A reasonable person who<br />

is willing to come to a deal<br />

that suits both <strong>of</strong> you, is far<br />

better than a piece <strong>of</strong> paper<br />

that reads well fresh out <strong>of</strong><br />

the mail but may not deliver<br />

longer term.<br />

MYTH 3: I’ll get a better deal<br />

if I don’t pay an agent’s commission.<br />

Leasing an <strong>of</strong>fice is<br />

nothing like buying a car.<br />

It’s a complicated process<br />

with many shades <strong>of</strong> grey –<br />

and the potential for running<br />

into the red if you make a big<br />

mistake.<br />

The language seen on your<br />

lease and used in negotiations<br />

isn’t found in the Oxford<br />

Dictionary. Best to get the help<br />

<strong>of</strong> someone who speaks the<br />

language.<br />

Takeaway tip: While it’s<br />

true that agents only get their<br />

fee after you sign, if you break<br />

that lease it will reflect as badly<br />

on them as it does on you.<br />

MYTH 4: I can find my own<br />

<strong>of</strong>fice space. Yes, you can<br />

probably find something on<br />

TradeMe – and line up down<br />

the hallway to see it along with<br />

20 others.<br />

Office spaces in desirable<br />

buildings and locations fill up<br />

fast, Getting in via a registered<br />

agent not only gives you the<br />

pick <strong>of</strong> the crop, it’s a lot less<br />

stressful.<br />

Takeaway tip: Think about<br />

appointing an agent who represents<br />

your best interests, so<br />

they can do the hard work<br />

searching the market and present<br />

options back to you.<br />

Find the right commer-<br />

<strong>Bay</strong> <strong>of</strong> plenty<br />

The team at <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

<strong>Business</strong> <strong>News</strong> wishes you all a<br />

safe and happy festive season.<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> <strong>News</strong><br />

<strong>of</strong>fices will be closed from:<br />

Friday, <strong>December</strong> 22, 2017<br />

until Monday, <strong>January</strong> 8, <strong>2018</strong><br />

cial leasing expert for you at<br />

<strong>Bay</strong>leys – and let that person<br />

get onto finding you your perfect<br />

<strong>of</strong>fice space.<br />

Abridged – www.bayleys.co.nz/<br />

workplace/articles/insights<br />

For urgent<br />

inquiries please call<br />

Deidre Morris<br />

027 228 8442<br />

- or -<br />

Jon Bentley<br />

021 222 7279<br />

Maximise the return on your<br />

commercial investment<br />

At <strong>Bay</strong>leys, we<br />

believe relationships<br />

are what businesses<br />

are built on and how<br />

they succeed.<br />

Speak to our<br />

<strong>Bay</strong>leys team today.<br />

SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008<br />

We understand that to maximise the return on your property you need:<br />

Pr<strong>of</strong>essional property management A business partner that understands your views and goals<br />

Jan Cooney<br />

Senior Commercial Property Manager<br />

B 07 579 0609 M 027 408 9339<br />

jan.cooney@bayleystauranga.co.nz<br />

Brodie Thomas<br />

Commercial Property Manager<br />

B 07 579 0608 M 027 746 9218<br />

brodie.thomas@bayleystauranga.co.nz<br />

Becky Jefferson<br />

Commercial Property Management Asst.<br />

B 07 579 0614<br />

becky.jefferson@bayleystauranga.co.nz


12 BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong><br />

Electric vehicle<br />

revolution slow to<br />

reach the <strong>Bay</strong><br />

Tauranga has the dubious honour<br />

<strong>of</strong> being New Zealand’s most cardependent<br />

city, with a significantly higher<br />

rate <strong>of</strong> traffic growth than the national<br />

average.<br />

By RICHARD RENNIE<br />

The arrival <strong>of</strong> electric<br />

vehicles (EVs) is unlikely<br />

to do much about<br />

Tauranga’s traffic woes (see<br />

box story), but they have<br />

received significant media<br />

coverage over the past year or<br />

so as a potential game changer.<br />

In large part, this is because<br />

<strong>of</strong> promised improvements<br />

related to carbon emissions.<br />

And a massive uptake <strong>of</strong> EV<br />

does promise to help contribute<br />

to New Zealand’s efforts<br />

to reduce emissions, a requirement<br />

under the 2015 Paris<br />

Accord agreement on climate<br />

change.<br />

Without some major effort<br />

around vehicle emissions,<br />

which accounts for 20 percent<br />

<strong>of</strong> total losses, New<br />

Zealand will struggle to make<br />

those commitments stick as<br />

the agricultural sector continues<br />

to grapple with livestock<br />

emissions.<br />

MP for Tauranga and<br />

former transport minister<br />

Simon Bridges<br />

But EVs have so far failed<br />

to make a major impact on<br />

local driving habits.<br />

MP for Tauranga and former<br />

transport minister Simon<br />

Bridges has long been an<br />

unabashed champion <strong>of</strong> EVs.<br />

Despite losing his post, he<br />

remains very positive about<br />

prospects for the new transport<br />

mode and the role Tauranga<br />

can play in leading the EV<br />

charge nationally.<br />

Bridges set a target <strong>of</strong><br />

two percent or 67,000 <strong>of</strong> the<br />

vehicle fleet being electric by<br />

2020. By November 2017,<br />

the country had 5000 registered<br />

based <strong>of</strong>f NZ Transport<br />

Agency data.<br />

“Yes, we are a very car-centric<br />

city, but we do have an<br />

excellent roading network,<br />

and we have bus lanes that<br />

are suitable for allowing EVs<br />

upon, should the council go<br />

that way.”<br />

While in government he<br />

had the law changed to enable<br />

councils to legalise EV use on<br />

busways.<br />

“In talking with Tauranga<br />

City Council, they are very<br />

open-minded about the idea. I<br />

would love to see Tauranga as<br />

the first city in New Zealand<br />

to do that.”<br />

In Auckland, EVs can<br />

already use bus lanes on<br />

motorways operated by the NZ<br />

Transport Agency. Approval to<br />

use council-owned routes is<br />

still in the pipeline.<br />

The Bridges’ family cars<br />

are an Audi e-Tron and a<br />

Mitsubishi PHEV Outlander<br />

(Plug in Hybrid Electric<br />

Vehicle).<br />

He says the savings on<br />

ownership aside from fuel -<br />

I only really hope the government keeps<br />

the changes we made, and in fact pushes<br />

harder. We were just at the point where<br />

government was going to start replacing<br />

its fleet with electric cars, with one-third<br />

being electric by 2021.<br />

which can be the equivalent <strong>of</strong><br />

a petrol price <strong>of</strong> only 30c a litre<br />

- kick in with other incentives.<br />

There is an ACC exemption<br />

<strong>of</strong> $68 a year, a Road User<br />

Charge exemption worth $600<br />

a year, then lower maintenance<br />

costs through its lifetime.<br />

“I only really hope the government<br />

keeps the changes we<br />

made, and in fact pushes harder.<br />

We were just at the point<br />

where government was going<br />

to start replacing its fleet with<br />

electric cars, with one-third<br />

being electric by 2021.”<br />

But queries to some <strong>of</strong><br />

Tauranga’s leading car dealerships<br />

picked up a range <strong>of</strong><br />

responses, from the deeply<br />

enthusiastic, to “interested, but<br />

wary” to “not on our radar”<br />

when it came to stocking EVs.<br />

Farmer Auto director Mike<br />

Farmer said he was excited<br />

about what the next two<br />

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BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong> 13<br />

GOING ELECTRIC<br />

– THE PROS AND CONS<br />

Pros<br />

• Super quiet - so much so<br />

you need to be wary around<br />

pedestrians.<br />

• Low maintenance – only<br />

about 20 moving parts in<br />

engine, versus 2000 in<br />

internal combustion engine.<br />

No oil required.<br />

• Cheap to fill – the AA<br />

calculates at equivalent <strong>of</strong><br />

30c a litre.<br />

• Low emissions- only 20%<br />

<strong>of</strong> a conventional car over<br />

its lifetime.<br />

Cons<br />

• Still relatively expensive<br />

compared to equivalent<br />

conventional car.<br />

• Slower to “fill” than a petrol<br />

vehicle.<br />

• Range remains limited,<br />

but is improving with battery<br />

technology. Remember, the<br />

average distance travelled<br />

in NZ is under 30km a day.<br />

• Battery life can be a<br />

concern, depending on the<br />

age <strong>of</strong> the vehicle and its<br />

battery quality.<br />

The Hyundai IONIQ is one <strong>of</strong> the electric vehicles<br />

available in New Zealand. Photo: Hyundai.<br />

years hold for electric cars in<br />

Tauranga, but cautioned that<br />

media enthusiasm may have<br />

run ahead <strong>of</strong> market realities.<br />

“The real issue globally is<br />

production levels are still relatively<br />

low. However, in about 12<br />

months’ time we are going to see<br />

a real increase in the number and<br />

variety <strong>of</strong> models available.”<br />

His dealership can <strong>of</strong>fer<br />

two purely electric cars, the<br />

Hyundai Ioniq and the e-Golf,<br />

a popular car in global short<br />

supply.<br />

For now, electric cars still<br />

hold appeal mainly to early<br />

adopters, said Farmer.<br />

And they will have become<br />

truly mainstream only when he<br />

has customers enter the dealership<br />

asking about a specific<br />

model first, then looking at an<br />

electric option, rather than the<br />

other way around.<br />

“We will see the selection<br />

and the price differential to<br />

internal combustion powered<br />

cars also drop, which will<br />

make a significant difference<br />

to buyer choice when they<br />

come into the showroom.”<br />

Long-time second-hand dealer<br />

Chris Verryt, <strong>of</strong> Tauranga’s<br />

Chris Verryt Cars, has had limited<br />

dealings with electric cars<br />

to date, with little inquiry from<br />

a local market that he said was<br />

relatively conservative.<br />

“But I am also conscious<br />

things are changing, and likely<br />

to change very fast in coming<br />

years. Like any new technology,<br />

people have questions<br />

around things like battery life,<br />

maintenance and range, but all<br />

are improving.”<br />

He noted the recent positive<br />

press received for vehicles like<br />

the Nissan Leaf being voted<br />

New Zealand’s most reliable<br />

car in Consumer magazine<br />

would only hasten the uptake<br />

<strong>of</strong> electric cars.<br />

Without a combustion<br />

engine or gearbox, the two<br />

most problematic aspects <strong>of</strong><br />

car reliability, 97 percent <strong>of</strong><br />

Leaf owners said they were<br />

“very satisfied” with their car.<br />

“But I think we need to<br />

see new electric cars fall to<br />

the $20,000-$30,000 bracket<br />

to really take <strong>of</strong>f.”<br />

At Ebbett Holden, dealer<br />

principal Julian Clements<br />

said the marquee had received<br />

very few inquiries for electric<br />

options, and there were no EVs<br />

Tauranga remains heavily car-dependent<br />

A<br />

recent New Zealand Transport<br />

Agency survey put Tauranga’s<br />

dependence on cars at 91 percent <strong>of</strong><br />

all journeys travelled. This compares with<br />

87 percent in Hamilton and a mere 54 percent<br />

in Wellington.<br />

It’s a dominance that, despite recent<br />

efforts in promoting walking or biking, has<br />

on the horizon for Holden at<br />

this time.<br />

Despite repeated requests,<br />

on going to print, <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> <strong>Business</strong> <strong>News</strong> was<br />

unable to contact either<br />

Tauranga City Council transport<br />

manager Martin Parkes,<br />

or NZ Transport Agency <strong>Bay</strong><br />

<strong>of</strong> <strong>Plenty</strong> highway manager<br />

Niclas Johansson for comment<br />

about policies on EVs in <strong>Bay</strong><br />

<strong>of</strong> <strong>Plenty</strong>.<br />

The council’s webpage<br />

states a regional project is<br />

underway to establish a <strong>Bay</strong><br />

<strong>of</strong> <strong>Plenty</strong> charging network,<br />

connecting the main business<br />

centres throughout BoP and<br />

tourist destinations to “support<br />

reduced only slightly from 93 percent seven<br />

years ago.<br />

Meanwhile, traffic growth has increased<br />

at a very rapid pace. A March Quarterly<br />

Economic report identified a jump <strong>of</strong><br />

nine percent in the past year, almost double<br />

the national average increase for the<br />

same time.<br />

stress free travel.”<br />

At this stage Tauranga has<br />

charging points at <strong>Bay</strong>fair<br />

Shopping Centre, one <strong>of</strong> which<br />

is a rapid DC “user pays” charger,<br />

plus two funded by <strong>Bay</strong>fair.<br />

The southern end <strong>of</strong> the<br />

Strand has two AC chargers<br />

through the country’s first dedicated<br />

solar fed charging units.<br />

Seven IT projects for Christmas<br />

Depending on your type <strong>of</strong> business and industry, you<br />

may have reduced working hours over the festive and<br />

holiday season. This is a great time to do a number <strong>of</strong> IT<br />

projects while limiting business disruption.<br />

Supportive IT partners<br />

wont be closing down<br />

over this period, making<br />

it a great time to engage services<br />

for things that have been put<br />

<strong>of</strong>f “until you get round to it”.<br />

So what can you do or get<br />

your IT partner to do for your<br />

business, giving you peace <strong>of</strong><br />

mind for <strong>2018</strong> and making<br />

sure you have a successful and<br />

trouble-free year? Try some -<br />

or all - <strong>of</strong> these seven projects.<br />

1) Backups<br />

Ensure your backups are working.<br />

Test them and do a “res-<br />

toration test” by picking a file<br />

or a folder to try and recover.<br />

2) Disaster recovery plan<br />

Formulate a disaster recovery<br />

plan. Right from Internet connectivity<br />

issues and, hardware<br />

malfunction through to earthquake,<br />

flood and fire.<br />

3) Antivirus check<br />

Is your current antivirus up<br />

to date? Have you just been<br />

hitting close or later when the<br />

renewal reminder comes up?<br />

Update your programme and<br />

make sure everyone on the<br />

network has the same version.<br />

Better still, look at managed<br />

options.<br />

4) Network documentation<br />

and patch management<br />

Is your comms cabinet like spaghetti<br />

junction? Do you have<br />

a diagram/visual representation<br />

<strong>of</strong> how it all fits together?<br />

5) Maintenance and asset<br />

list<br />

Make sure all tools have the<br />

right security patches and are<br />

running the right versions<br />

across the business. And<br />

check to see whether you have<br />

an up-to-date asset list <strong>of</strong> hardware<br />

and s<strong>of</strong>tware applications<br />

in the business for insurance,<br />

accounting and support purposes.<br />

6) Pr<strong>of</strong>essionalism and<br />

digital marketing<br />

Does your small business have<br />

a gmail/Vodafone/ Hotmail<br />

address? Do you have a website?<br />

If the answer to both<br />

those questions is yes, consider<br />

TECH TALK<br />

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how much more pr<strong>of</strong>essional<br />

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hotmail.com. This is a simple<br />

and very economical fix for<br />

your business that can set up<br />

up well for your <strong>2018</strong> digital<br />

marketing plan.<br />

7) New phone system,<br />

server or cloud migration<br />

This is a good time undertake<br />

the bigger projects. Check out<br />

the latest technology in areas<br />

such as IoT, VR, AR, Ai and<br />

bots to see how they could<br />

assist your business. This may<br />

also be a fun thing to with the<br />

kids duringthe break.<br />

For those that want to stay<br />

away from technology over the<br />

festive season, talk to your IT<br />

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You can also visit our blogs<br />

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14 BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong><br />

Investment market post-election report card<br />

It has been more than two<br />

months since the General<br />

Election saw a Labour-led<br />

coalition replace the incumbent<br />

National Party as the<br />

New Zealand Government.<br />

What has been the impact on<br />

investment markets and what<br />

might the impact <strong>of</strong> proposed<br />

government policies be going<br />

forward?<br />

WHAT TO DO WITH YOUR MONEY<br />

> BY BRETT BELL-BOOTH<br />

Investment Advisor with Forsyth Barr Limited in Tauranga.<br />

Phone: (07) 577 5725 or email brett.bell-booth@forsythbarr.co.nz<br />

The leading indicator <strong>of</strong> the<br />

New Zealand stock exchange,<br />

the S&P NZX50, has risen<br />

from 7869 on September 25,<br />

to 8178 at time <strong>of</strong> writing,<br />

a rise <strong>of</strong> four percent. The<br />

index, (this is a gross index<br />

which includes dividends), is<br />

up 19 percent over the last 12<br />

months, so the rise since the<br />

election is a continuation <strong>of</strong> a<br />

Disclosure Statements are available on request and free <strong>of</strong> charge.<br />

Fees and charges will apply if you elect to have a continuing relationship with Forsyth Barr.<br />

strong upward trend, and indicates<br />

the market on the whole<br />

has not considered the election<br />

result to have had much<br />

impact.<br />

On the currency front, the<br />

New Zealand dollar to US<br />

dollar (NZD/USD) exchange<br />

rate has fallen from 0.7329 to<br />

0.6864, a fall <strong>of</strong> 6.3 percent.<br />

The New Zealand dollar to<br />

If you are considering your current<br />

investment arrangements, perhaps<br />

it’s time to get a complimentary review<br />

Forsyth Barr is a New Zealand owned firm with 21 <strong>of</strong>fices nationwide<br />

including three <strong>of</strong>fices in the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> and Waikato regions.<br />

Supported by Forsyth Barr’s research and investment expertise, our Authorised<br />

Financial Advisers can work with you to deliver a personalised approach taking<br />

into account your investment objectives, preferences and your tolerance for risk.<br />

To make an obligation free appointment to discuss your investment<br />

arrangements, contact your local Forsyth Barr <strong>of</strong>fice by calling 0800 367 227.<br />

We look forward to discussing how our investment advice can work for you.<br />

TAU5162-01 – © Forsyth Barr Limited August 2016<br />

Australian dollar (NZD/AUD)<br />

exchange rate has fallen from<br />

0.9215 to 0.9034, a fall <strong>of</strong><br />

2.0 percent. However, the New<br />

Zealand dollar has been on a<br />

downward trend since July, so<br />

our currency does not appear<br />

to have been solely influenced<br />

by the election result.<br />

Interest rates have barely<br />

moved since the date <strong>of</strong> the<br />

General Election. The Reserve<br />

Bank <strong>of</strong> New Zealand (RBNZ)<br />

has not altered the Official<br />

Cash Rate which remains at<br />

1.75 percent. Yields on new<br />

bond issues have reduced,<br />

which is more a function <strong>of</strong><br />

excess demand and a lack <strong>of</strong><br />

supply <strong>of</strong> bonds in the market<br />

place. This follows some large<br />

bond maturities, notably a<br />

Rabobank bond <strong>of</strong> $900 million<br />

repaid in October, leaving a lot<br />

<strong>of</strong> cash looking for a home.<br />

The residential property<br />

market has eased according<br />

to recently published median<br />

house prices. It is hard to<br />

know whether this easing is a<br />

symptom <strong>of</strong> an over-cooked<br />

housing market, or as a result<br />

<strong>of</strong> proposed government policies.<br />

The construction sector<br />

in New Zealand has already<br />

peaked following the winding<br />

down <strong>of</strong> the Christchurch<br />

earthquake re-build, but other<br />

parts <strong>of</strong> New Zealand are still<br />

experiencing good growth.<br />

The proposed government<br />

policy <strong>of</strong> a reduction in immigration<br />

may have a dampening<br />

effect on the residential property<br />

market. The extent <strong>of</strong> any<br />

impact will depend on how<br />

big a reduction actually occurs,<br />

given that in Auckland, the<br />

rate <strong>of</strong> residential build was<br />

not meeting demand for new<br />

houses anyway.<br />

The proposed policy on<br />

immigration favours skilled<br />

labour migrants, with a<br />

focused reduction affecting the<br />

unskilled migrant. However,<br />

calls from the tourism, horticulture,<br />

and aged care sectors<br />

in particular, that rely on this<br />

category <strong>of</strong> migrant to meet<br />

their demand for workers, may<br />

temper any significant policy<br />

shifts. In turn, this may reduce<br />

any flow-on effect on the residential<br />

housing market. With<br />

current unemployment figures<br />

at decade-lows <strong>of</strong> under five<br />

percent, a policy change would<br />

place more pressure on those<br />

sectors relying on migrant<br />

workers.<br />

Another proposed policy is<br />

increasing the minimum wage.<br />

The sectors <strong>of</strong> greatest impact<br />

are those already mentioned<br />

- tourism, horticulture, aged<br />

care, and also retail. Increasing<br />

the minimum wage may result<br />

in increased consumer spending,<br />

which the retail sector<br />

benefits from, but may be <strong>of</strong>fset<br />

by higher costs <strong>of</strong> labour.<br />

Companies in the retail<br />

sector listed on the sharemarket<br />

include The Warehouse,<br />

Briscoes Group, Kathmandu,<br />

HallensteinGlasson, and fast<br />

food operator Restaurant<br />

Brands. Other companies that<br />

may be affected by an increased<br />

minimum wage are transport<br />

companies Freightways and<br />

Mainfreight. The fact that the<br />

minimum wage has been rising<br />

on a regular basis (suggesting<br />

any impact from the proposed<br />

rate will be marginal), seems to<br />

have escaped media attention.<br />

The new government has<br />

also proposed changes to the<br />

way the RBNZ sets the Official<br />

Cash Rate. It is proposed that<br />

they take into account other<br />

factors such as full-employment,<br />

in addition to the existing<br />

sole focus <strong>of</strong> keeping inflation<br />

within a one-to-three percent<br />

band. Although this has the<br />

potential to result in increased<br />

interest rates, the actual impact<br />

is likely to be negligible due<br />

to existing RBNZ commentary<br />

already having reference<br />

to these other factors.<br />

Other proposed policies<br />

include the planting <strong>of</strong> one billion<br />

trees over the next 10 years,<br />

a regional development focus,<br />

and increased government low<br />

cost housing. All <strong>of</strong> these policies<br />

would result in increased<br />

spending, presumably funded<br />

by increased government borrowing,<br />

which is potentially<br />

inflationary. Pressure on the<br />

government to keep borrowing<br />

under control may well temper<br />

these policy initiatives.<br />

In summary it appears that<br />

investment markets have to a<br />

large extent ignored the election<br />

result, with a “business<br />

as usual” approach underpinned<br />

by continued strong<br />

economic growth. The impact<br />

<strong>of</strong> proposed government policies<br />

will depend on the extent<br />

<strong>of</strong> the policy implemented,<br />

with signs that any significant<br />

moves, particularly on the<br />

immigration front may already<br />

be watered down due to political<br />

pragmatism.<br />

Brett Bell-Booth is an<br />

Investment Adviser with<br />

Forsyth Barr Limited in<br />

Tauranga and is an Authorised<br />

Financial Adviser. To arrange<br />

a meeting to discuss your<br />

investment objectives in<br />

confidence call (07) 577 5725<br />

or email brett.bell-booth@<br />

forsythbarr.co.nz<br />

Can’t quite get that job?<br />

We’ll HOOK you up with job advice,<br />

and even help you CATCH a job!<br />

N E W Z E A L A N D<br />

TAURANGA<br />

07 571 0283<br />

tgaadmin@nz.drakein.com


BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong> 15<br />

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PILLARCONSULTING.CO.NZ


16 BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong><br />

Is co-working for you?<br />

The co-working phenomenon has risen exponentially since<br />

2011. It is estimated currently 1.2 million people use co-working<br />

spaces around the world and that is projected to increase to<br />

3.8 million by 2020.<br />

GROWING YOUR BUSINESS<br />

> BY DARREN MCGARVIE<br />

Darren McGarvie is co-founder and Chief Coach <strong>of</strong> the<br />

Firestation, the <strong>Bay</strong>’s only business growth centre. To find out<br />

more go to www.thefirestation.nz or email grow@thefirestation.nz<br />

Spaces range from entrepreneurs<br />

who <strong>of</strong>fer<br />

co-working to <strong>of</strong>fset<br />

their <strong>of</strong>fice costs, through to<br />

the largest co-working company<br />

in the world, Wework<br />

with spaces in 22 countries and<br />

valued at $US16 billion.<br />

So, what is co-working and<br />

is it something you should be<br />

considering if you’re a small<br />

business or freelancer?<br />

Co-working delivers a<br />

working environment as a service.<br />

It goes beyond the shared<br />

<strong>of</strong>fice concept where businesses<br />

reside in one location, share<br />

reception or communal areas<br />

and furnish their own area.<br />

Co-working provides all your<br />

amenities, usually in an open<br />

plan environment, although<br />

some places have a mix <strong>of</strong><br />

private <strong>of</strong>fices and open plan.<br />

When co-working, all<br />

you need is your laptop and<br />

mobile.You are charged a daily<br />

or monthly rate for your desk<br />

or <strong>of</strong>fice lease. Depending on<br />

the space, you can be casual,<br />

sign up for a couple <strong>of</strong> days a<br />

month, or take up fulltime 24/7<br />

access.<br />

There are more than 60<br />

co-working spaces around<br />

the country. While most are<br />

in main centres (Auckland,<br />

Wellington and Christchurch),<br />

there are co-working spaces<br />

in the regions from Dunedin<br />

through to Whangarei. In <strong>Bay</strong><br />

<strong>of</strong> <strong>Plenty</strong>, we have five in<br />

Tauranga and two in Rotorua.<br />

The benefits <strong>of</strong> co-working<br />

boil down to cost, convenience<br />

and being part <strong>of</strong> a community.<br />

For many entrepreneurs,<br />

freelancers and small business<br />

owners, co-working provides<br />

an easy one-stop solution <strong>of</strong><br />

moving out <strong>of</strong> the home <strong>of</strong>fice.<br />

For a fraction <strong>of</strong> the cost<br />

<strong>of</strong> setting up your own premises<br />

you have access to desk,<br />

laser printing, meeting rooms,<br />

hi-speed Wi-Fi and - usually<br />

- great c<strong>of</strong>fee. Security and<br />

cleaning are all taken care <strong>of</strong><br />

It’s not just digital nomads or<br />

entrepreneurs that are using co-working.<br />

Corporates with small teams in the<br />

regions find it is a fantastic way to have<br />

a pr<strong>of</strong>essional location without the hassle<br />

and cost <strong>of</strong> managing multiple sites<br />

across the country.<br />

for you. And depending on<br />

membership or licence terms,<br />

you only pay for the space<br />

when you use it.<br />

There is also the community<br />

aspect to co-working.<br />

Most spaces have communal<br />

areas, social events and business<br />

training. That removes the<br />

isolation some small business<br />

owners feel working by themselves<br />

or from home.<br />

A huge benefit <strong>of</strong> co-working<br />

is the meeting space. That<br />

provides an area to meet with<br />

clients and business associates<br />

without having to use cafes,<br />

which can be less than ideal.<br />

Research has also found<br />

that co-working can increase<br />

the effectiveness and energy<br />

<strong>of</strong> users and that you are more<br />

productive and have a better<br />

mindset when you use the<br />

space.<br />

Plus, people score work<br />

place happiness higher in a<br />

co-working environment than<br />

a traditional <strong>of</strong>fice.<br />

It’s not just digital nomads<br />

or entrepreneurs that are using<br />

co-working. Corporates with<br />

small teams in the regions find<br />

it is a fantastic way to have a<br />

pr<strong>of</strong>essional location without<br />

the hassle and cost <strong>of</strong> managing<br />

multiple sites across the<br />

country.<br />

Co-working isn’t for everyone.<br />

If you are thinking about<br />

using co-working in <strong>2018</strong>, try<br />

before you buy. Make sure you<br />

go several times.<br />

Most users <strong>of</strong> co-working<br />

spaces come and go throughout<br />

the day so to meet everyone<br />

and see how you gel with<br />

the other users you will need to<br />

visit multiple times.<br />

If you want to move out<br />

<strong>of</strong> your home <strong>of</strong>fice or you’re<br />

looking for new business premises<br />

for a small team, check out<br />

the co-working spaces in your<br />

area. It might save you money,<br />

be more convenient and grow<br />

your pr<strong>of</strong>essional networks.<br />

Our Tauranga<br />

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We are currently seeking a<br />

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BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong> 17<br />

The festive business<br />

For all businesses, Christmas is a time for careful planning as work<br />

rosters need to be juggled, sufficient stock (and the right stock) needs<br />

to be carried to ensure you have a good Christmas turnover, staff<br />

Christmas functions need organising - and cashflow remains king.<br />

MONEY MATTERS<br />

> BY STEPHEN GRAHAM<br />

Stephen Graham is director and managing partner at BDO<br />

Rotorua, Chartered Accountants and Advisers. To find out more<br />

visit bdorotorua.co.nz or email rotorua@bdo.co.nz<br />

The earlier you start to<br />

plan, the better prepared<br />

you will be.<br />

Following are some <strong>of</strong> the<br />

key elements you should be<br />

looking at. Break each point<br />

down and put your mind to each<br />

one individually. Satisfaction<br />

will be gained from ticking<br />

each one <strong>of</strong>f. What you should<br />

be considering:<br />

Work Rosters. Ensure you<br />

have sufficient staff to carry<br />

you through your busy days,<br />

hours or weeks. Take care<br />

when working around statutory<br />

holidays, and seek advice<br />

if you are unsure <strong>of</strong> your obligations<br />

when paying holidays.<br />

Stock levels. Are you carrying<br />

sufficient levels <strong>of</strong> the<br />

right stock to support a good<br />

Christmas turnover?<br />

Any stock that has been<br />

sitting on the shelves for a long<br />

period will continue to do so if<br />

you don’t discount for a sale<br />

or send it back to the supplier<br />

for a credit – after all stock is<br />

simply cash waiting to get to<br />

your bank and carrying excess<br />

impacts your cashflow.<br />

Arranging to send unsold<br />

items back to the supplier if it<br />

does not sell is a good backstop<br />

Lay-by. Do you <strong>of</strong>fer a<br />

lay-by option? This could be a<br />

useful tool to achieve an early<br />

sale for those organised individuals<br />

who do their Christmas<br />

shopping early.<br />

Also consider whether you<br />

can get longer payment terms<br />

from your supplier, ensuring<br />

you do not create a cash crisis<br />

post-Christmas when business<br />

may not be so busy.<br />

Cash is king. Get paid up<br />

front or <strong>of</strong>fer a lay-by service.<br />

Chase slow paying debtors<br />

and if you don’t get paid by<br />

Christmas, be prepared to wait<br />

for a further month or two in<br />

the New Year.<br />

Also be wary that pressure<br />

is put on cashflow by some<br />

suppliers shortening their credit<br />

terms e.g. seven days and holiday<br />

pay needing to be paid out.<br />

Banking. Ensure you’re in<br />

regular contact with your bank<br />

manager.<br />

They’re more likely to<br />

respond positively to any<br />

requests for financing or extra<br />

The PoweringON <strong>Business</strong><br />

Pitch event is set to take<br />

place as part <strong>of</strong> the <strong>Bay</strong><br />

<strong>of</strong> <strong>Plenty</strong>/Waikato <strong>Business</strong><br />

Expo running on the March 7,<br />

<strong>2018</strong> with the aim <strong>of</strong> bringing<br />

together likeminded innovators<br />

and entrepreneurs.<br />

The PoweringON <strong>Business</strong><br />

Pitch event will take place in the<br />

afternoon at the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>/<br />

Waikato <strong>Business</strong> Expo at ASB<br />

<strong>Bay</strong>park, Tauranga and has been<br />

co-designed and will be delivered<br />

by Venture Centre, Jigsaw<br />

Solutions and SODA Inc.<br />

The PoweringON <strong>Business</strong><br />

Pitch Event will provide an<br />

opportunity to raise the capabilities<br />

<strong>of</strong> B2B business owners.<br />

facilities to support cashflow if<br />

they’re informed early on.<br />

Tax. Don’t forget that GST<br />

and the second instalment<br />

<strong>of</strong> <strong>2018</strong> provisional tax are<br />

due on 15 <strong>January</strong> for March<br />

PoweringON <strong>Business</strong> Pitch event to launch at BoP <strong>Business</strong> Expo<br />

Jigsaw director Sharon<br />

Giblett with Venture<br />

Centre’s Pascale Hyboud-<br />

Peron. Photo: Supplied<br />

“There are some fantastic<br />

businesses operating in these<br />

balance date taxpayers. The<br />

PAYE for <strong>December</strong> is then<br />

due soon after on <strong>January</strong> 20.<br />

I reiterate that - like<br />

Christmas shopping - the earlier<br />

you start on these things,<br />

regions who don’t <strong>of</strong>ten get a<br />

chance to present their current<br />

plans and hear feedback from<br />

a range <strong>of</strong> high calibre judges.<br />

“The purpose <strong>of</strong> the<br />

PoweringON <strong>Business</strong> Pitch<br />

Event is to do just that”<br />

says Pascale Hyboud-Peron,<br />

co-founder <strong>of</strong> Venture Centre.<br />

Applications are encouraged<br />

from businesses focusing<br />

on utilising Artificial<br />

Intelligence, Augmented<br />

Reality, Blockchain, IoT,<br />

Space and Robotics, Biotech,<br />

Agtech, Healthtech, Virtual<br />

Reality, CleanEnergy and<br />

Cybersecurity technology to<br />

enhance, improve, protect and<br />

grow other business.<br />

the easier it is and the better the<br />

outcome. Admittedly, this may<br />

be easier said than done, so if<br />

you need help, get in touch with<br />

your bank, accountant or suppliers<br />

now and start planning.<br />

The winner <strong>of</strong> the<br />

PoweringOn <strong>Business</strong> Pitch<br />

will secure the opportunity to<br />

pitch to national and international<br />

business growth advisors,<br />

experts and investors<br />

flying into New Zealand for<br />

the festival <strong>of</strong> technology at<br />

the Techweek Tauranga Grow<br />

<strong>Plenty</strong> event in May <strong>2018</strong>.<br />

Applications to enter open<br />

<strong>January</strong> 15, <strong>2018</strong> and close<br />

early February <strong>2018</strong>. To register<br />

your interest in pitching go to<br />

www.businessexpo.biz/contact.<br />

Full details on the <strong>Business</strong><br />

Expo, exhibitor and sponsorship<br />

opportunities are available<br />

from the event website<br />

www.businessexpo.biz.<br />

Friendly legal advice<br />

that won’t leave you<br />

drowning in jargon<br />

STEPHANIE<br />

NORTHEY,<br />

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Director<br />

PAULA LINES,<br />

LL.B<br />

Director<br />

SARSHA<br />

TYRRELL,<br />

LL.B<br />

Director<br />

For over 30 years, The Law Shop has been giving clear<br />

advice for a fair price to individuals, small and medium<br />

businesses in the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>.<br />

If your business needs advice on Agreements, Buying<br />

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Planning, Banking, Leasing, Debt Collection, Franchising<br />

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Call us on 0800 LAW SHOP or visit www.thelawshop.co.nz<br />

Lawyers for everyday people


18 BAY OF PLENTY BUSINESS NEWS <strong>December</strong>/<strong>January</strong> <strong>2018</strong><br />

<strong>Bay</strong> <strong>of</strong> plenty<br />

First on the scene<br />

Regional <strong>Business</strong> Markets 1. Brett Yeatman-<strong>Business</strong> Market, Rob Inman from Bartercard and Helen Bishell <strong>of</strong> WorkSI. 2. Robin Walker Homes <strong>of</strong> Hope.<br />

3. Laura Daley Solomon’s Gold Chocolate. 4. Arthur Warner from Ezystream.<br />

5. Michelle Beaumont Nettl, with Mike Diluzio <strong>of</strong> Expandasign. 6. Janine Gartner from Tax Agent 99 with Joshua Fong from Millennial Capital, as well as<br />

Murray Maunder from Vision Productions and Kerry Liddell from Smile from the Inside Out.<br />

7. Zita Cameron from Infuzed and Tim Taylor <strong>of</strong> Stratus Blue. 8. Matt Rencher CAVE- Creative Advanced Visual Entertainment.


END YOUR<br />

CASH FLOW<br />

STRESS TODAY<br />

No matter how big or small your<br />

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* Disclaimer: This advertisement does not and is not intended to provide financial advice and intends by this statement to exclude liability for either opinion or statement. Apricity is not in the business <strong>of</strong> providing<br />

legal, financial, advisory or other advice and nor do we take into account a customer’s needs, goals or risk pr<strong>of</strong>ile. Customers who require that advice should contact an Authorised Financial Advisor.


Located less than 10kms from<br />

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Estate has cemented its position<br />

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