Bay of Plenty Business News March/April 2018

Bay of plenty

MARCH/APRIL 2018 VOLUME 3: ISSUE 3 WWW.BOPBUSINESSNEWS.CO.NZ FACEBOOK.COM/BOPBUSINESSNEWS

BOP tourist

industry

Explores

new direction

Gloworm kayak tours: Photo/Waimarino

The good news for the Coastal Bay of

Plenty is that tourists spent a record

$1 billion last year. The less good news - at

least for some business ratepayers - is that

Tourism Bay of Plenty is seeking increased

annual council funding of around $620,000

to help support a new and better targeted

approach.

By DAVID PORTER

Tourism BOP says

the increase would

make its funding more

aligned with other similar-sized

Regional Tourism

Organisations (RTOs).

And it would underpin its

efforts to drill down and gain a

better understanding of exactly

who comes to the region and

why, and to transition from

largely promotional activities

to what the industry describes

as destination management.

“It would be reckless to

allow this level of growth

without a considered management

plan. We are aiming to

grow the visitor economy on

our terms, with the right visitors

at the right time, for the

benefit of the region,” said

Tourism BOP chief executive

Kristin Dunne.

“Destination management

Kristin Dunne:

Photo/Tourism BOP

is the coordinated management

of all the elements that make

up a region. It is the key to

controlling tourism’s environmental

impacts and preserving

the region’s unique identity.”

Dunne told Bay of Plenty

Business News the move was

part of a long-term strategy

that was attempting to balance

growth with a solid management

plan. As part of this

process, the tourism body has

put together a 10-year Visitor

Economy Strategy. This has

forecast that the visitor economy

will grow by more than 50

percent by 2028, positioning

tourism as one of the larger

economic contributors to the

region.

“The additional funding

will allow us to do a lot more

research so that we can better

understand the visitors and we

could be making insight-led

decisions. That’s really at the

heart of destination management

- it’s making sure we

understand who the visitors

are, where they’re coming

from, and what they need.”

The reality was that currently

the research data was

very poor, Dunne said. The

BOP is a region with many

entry and exit points, making

measurement of visitors

difficult.

Continued on page 3

dry shareholders

Growers support new

Zespri structure

P8

swiped on

Tauranga company’s

$15 million grant

P9

tourism & Events

The wider region

P20-22

2 BAY OF PLENTY BUSINESS NEWS March/April 2018

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BOP tourist industry

explores new direction

BAY OF PLENTY BUSINESS NEWS March/April 2018 3

From page 1

But she emphasized that

this wasn’t just a BOP problem,

but a national one.

Regional Tourism New

Zealand says current ways of

thinking about tourism development

are “not fit for purpose”

and tourism needs to be

on the agenda of every council

around the country.

Executive officer Charles

Ives says increased growth in

tourism will place pressure on

the regions, which has to be

anticipated before it has a negative

effect on communities.

“Tourism – perhaps more

than any other industry –

touches the whole community

and while most New

Zealanders overall are still

comfortable with the industry,

we are already seeing

early indicators of pressure

such as overcrowding and

negative reactions to Freedom

Campers,” he says.

“These are warnings of the

impact tourism can have on

us, if we don’t have a planned,

developed and managed

approach.”

A core facet of destination

management is solid visitor

insights to best understand a

visitor economy and its visitors,

said Dunne.

If the additional funding

it has applied for through

Tauranga City Council’s Long

Term Plan is approved, significant

insights work into visitor

numbers and visitors themselves

would be undertaken,

enabling it to best utilise its

marketing dollar in targeting

the right visitors to visit at the

right time.

“All we really know with

confidence is how much visitors

are spending - we don’t

know where they’re coming

from or who they are, with any

confidence,” said Dunne.

“We are working with

all the stakeholders who are

involved in tourism, of which

there are many, and we’re

looking out the next 10 years

to say, of what visitors have

told us they want, what is it we

need to deliver in the next decade

to give them a good visitor

experience.”

… insight-led

decisions [are]

really at the heart

of destination

management - it’s

making sure we

understand who the

visitors are, where

they’re coming from,

and what they need.”

– Kristin Dunne

Dunne said the industry was

currently very demand-oriented.

“We just get people here

in as many numbers as we

can. The other side is the sup-

Ovation of the Seas: At Tauranga.

Photo/Katie Cox, Tourism BOP

Tourism BOP is mandated to promote the territories of its funding councils, which

include Tauranga City, Western Bay of Plenty District and Whakatane District. Tourism

BOP refers to this collection of territories as the “Coastal Bay of Plenty” and it

stretches from Waihi Beach to Ohope Beach, and as far inland as the Kaimai Range,

the Whirinaki Forest and part of Te Urewera. Destination Rotorua, now part of Rotorua

Economic Development, is the key organisation managing tourism in the Rotorua

region. (see pages 21/22)

ply side - what experiences do

we deliver, what products are

there, what products should

there be?”

Some observers are critical

of the limited range of

activities available to visitors

to Tauranga - beyond visiting

the beaches and Mount

Maunganui - especially in

contrast to Rotorua’s range of

well-developed activities and

events programme.

Rotorua Economic

Development chief executive

Michelle Templer says

Rotorua has continued to add

new products to ensure they

keep pace with the changing

wants and needs of visitors.

(see pages 21 and 22)

Max Mason, chair of the

TCC’s economic development

committee, says the council is

well aware the tourism body

wants to change its role from

not only promoting, but managing

the region. There are

a number of negative aspects

to tourism, including increased

freedom camping and traffic

issues.

“They want to base their

future development on

insights, so a lot of visitor

research needs to occur,” said

Mason.

“At the moment, most of

their insights about where

people come from and their

impact is done in those overseas

markets. One of the really

important bits of information

that we don’t have, for example,

is how many people visit

Tauranga to see friends and

relatives. We know it’s a massive

amount, but we don’t really

know how much.”

Tauranga Chamber of

Commerce Chief executive

Stan Gregec said he was in

principle supportive of something

that at least reflected

a more targeted approach to

council funding.

“We are a membership-based

organisation that is

a proxy for the business community,”

he said.

“Tourism BOP is 100-per

cent funded by councils and

we have been asked to support

them getting another $620,000

a year. Clearly it’s the general

business community that is

going to have to pay for this

eventually through rates. But

at least it would be an example

of a targeted rate so we would

know in theory where those

funds were going to be spent.”

He was speaking in the context

of the current opposition

by many in the business community

to the proposed shift to

businesses paying higher rates.

“We do understand there

is a national formula for tourist

organisations and Tourism

BOP has a bit of catchup to do.

I support the destination management

approach. But their

focus till now has been on

promoting, and they’ve done

very little to coordinate what

happens at this end. I would

have thought, given the money

they have been getting for

external promotion for years,

that it would have been a good

idea to have done some of that

analysis already.”

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Email: david@nmmedia.co.nz

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From the editor

In this month’s cover story

we examine Tourism Bay

of Plenty’s bid for increased

council funding to shift the

focus of its marketing efforts.

The good news for the

Coastal Bay of Plenty is that

tourists spent a record $1 billion

last year.

Tourism Bay of Plenty

is seeking increased annual

council funding of around

$620,000 to help support a new

and better targeted approach.

Tourism BOP says the

increase would make its funding

more aligned with other

similar-sized Regional Tourism

Organisations (RTOs).

And it would underpin

its efforts to drill down and

gain a better understanding

of exactly who comes to the

region and why, and to transition

from largely promotional

activities to what the industry

describes as destination

management.

Consistent promotion

efforts by the New Zealand

avocado sector, helped by

tariff changes under the Free

Trade Agreement (FTA), are

paying off with a season of

record returns in Korea.

Currently the fresh domestic

and Australian market

account for the lion’s share of

the avocado crop.

Japan, Singapore, Thailand

and Korea re the other major

markets.

However, the industry faces

a major challenge in meeting

the growing demand in Asian

and other export markets while

it grapples with achieving

more consistent production.

Major changes to Zespri’s

share structure have been wel-

comed by the sector’s grower

body as the export marketer

moves to more closely align its

ownership with those responsible

for producing the fruit.

The changes resolve the

longstanding problem of

so-called “dry” shareholders

- those who have shares

in Zespri, but are no longer

actively growing kiwifruit.

The changes are Zespri’s

attempt to deal with what it

describes as a concerning

mis-alignment of ownership

between growers and

non-growers.

A special general meeting

held in mid-March drew the

required 75 percent-plus grower

support for the changes.

After almost five years and a

major industry strategy review,

kiwifruit growers have agreed

to the proposed changes to

Zespri’s constitution.

There are now caps on the

ability of non-producing shareholders

to continue owning

shares, as well as a focus on

getting new growers to own

shares representing the volume

of crop they contribute.

We also look at the success

of Tauranga-based software

company SwipedOn, which

has been awarded a growth

David Porter

grant by Callaghan Innovation

for its iPad-based visitor management

system.

The grant is for an initial

three year term, refunding 20

percent of all eligible spend,

up to a total of $15 million.

The grant reflects the rapid

progress the company has

made since it was founded in

2013. The software-as-a-service

company replaces paper

visitor books with an innovative

iPad application.

Its founders grew the business

with no financial backing

or sales team into a product

used in over 2,000 cities worldwide,

largely in the UK and US.

David Porter

Editor

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BAY OF PLENTY BUSINESS NEWS February/March 2018

5

Time for businesses

to speak out about

rates hike

How do you justify a rates increase

of 60% in a single year?

By STAN GREGEC

CEO of the Tauranga Chamber

of Commerce

That’s a question some

business owners will be

asking when they find

out how much Tauranga City

Council is proposing to bill

them for this year’s rates. And

that’s just the start. Further

increases are on the cards for

Tauranga business ratepayers

in Years 2 and 3 of the

Council’s new ten-year plan

– out for consultation until

April 16th.

As part of a major reform

of the current rating system,

the Council proposes to introduce

a business rate differential

– which means that businesses

will pay 20% more

than residential ratepayers this

year relative to a property’s

value, rising to 40% more

next year and 60% more in

2020. There are other changes

on top of this, including a

new targeted rate applying to

all properties in the CBD.

Underpinning it all is a

core belief – not backed by

much evidence - that the commercial

sector profits dispro-

portionately from Council services

and city improvements:

this justifies it being asked to

pay more. When pressed for

specifics, the Council’s CEO

Garry Poole has mentioned

things like ‘improved speed of

delivery, transport and logistics’

and amenities that add

extra value to businesses and

attract high quality staff to

Tauranga.

Not surprisingly, the

Tauranga Chamber of

Commerce - representing

850 business members - is

opposed to the rates proposal

in its current form. It objects

to the notion that businesses

can be treated as a cash cow

to spare the impact of the

Council’s spending plans on

residential ratepayers.

Let’s get one thing straight.

The business community is

not opposed to paying its fair

share of Council rates; and

there may even be a case

for making a higher contribution

than it currently pays.

However, there are serious

problems with the Council’s

plan as it currently stands.

Missed Opportunity

Stan Gregec

In the Chamber’s view, it is

not acceptable that the Council

has sprung the rates plan on

an unprepared business community,

giving only a short

window for ‘consultation’; at

the very least it should have

signaled a year ago that the

current rating system was no

longer fit for purpose; and it

could have initiated a community-wide

conversation about

the Council’s ongoing financial

sustainability.

Unfair impacts

The Council is proposing to

move from the current system

of parity between commercial

and residential ratepayers

to one where businesses will

pay a 60% bigger share within

three years. That’s a huge jump

to make in a very short period,

considering the other changes

being made at the same time

– such as bringing in the new

targeted city centre rate.

With some businesses

already facing a 60% rates

increase in just the first year,

it’s not difficult to imagine

what the full impact will be

over three years. For some the

hit will be big enough to make

business owners, especially in

the CBD, think seriously about

whether to stay put or to pick

up sticks.

Backwards Step

Tauranga used to have a business

rate differential but that

was abandoned in the early

2000s when the Council of the

day concluded that it was an

unfair and unjustified way of

putting an extra burden on the

business community. At that

time the Council understood

that businesses needed the very

opposite – support and encouragement

- if they were to continue

to grow and contribute to

the economic prosperity of the

region.

Now, a decade or more later,

we seem to be heading backwards.

As study after study has

shown, ‘differential rates tend

to be set arbitrarily without

explicit justification in terms

of the benefits provided.’ Not

only are they a blunt instrument

for Councils to wield,

but they can be seen as something

of a lazy option – given

that there are far better ways

for Councils to fund services

and costs that benefit specific

groups or interests. Targeted

rates make way more sense.

What can you do?

The draft 2018/28 Long Term

Plan is open for consultation

from 16th March to 16th April

2018. The consultation document

is available on the council

website as well as details of

public consultation meetings.

The Chamber will be making

a submission on behalf

of its members, and encourages

business owners to do the

same. If you need help to make

your submission, contact the

Chamber and we can give you

a steer.

Tauranga businesses

stand together…

...by joining the Chamber.

Join Tauranga Chamber members

like Steve Wagstaff from Pureprint, Tauranga

Join the Tauranga Chamber of Commerce and become part of a connected and

committed business community that supports our region to grow and prosper.

For more details visit www.tauranga.org.nz


South Korea market investment

begins to pay off

Consistent promotion efforts by the New Zealand avocado

sector, helped by tariff changes under the Free Trade Agreement

(FTA), are paying off with a season of record returns in Korea.

But ensuring consistent supply remains a problem.

By DAVID PORTER

Currently the fresh

domestic (32 percent)

and Australian market

(56 percent) account for the

lion’s share of the avocado

crop, according to the latest

ANZ Agri Focus report.

Australia accounts for around

80 percent of export revenue.

Japan (four percent) Singapore

(two percent), Thailand (two

percent) and Korea (two percent)

are the other major markets.

AVANZA is the Asian

marketing arm of AVOCO,

a partnership between New

Zealand’s two biggest avocado

exporters, Southern Produce

and Primor Produce. AVOCO

is the biggest avocado producer

in NZ, though there

are other prominent producers,

including Seeka and Just

Avocados.

AVANZA has been work-

ing to educate Korean consumers

on the health benefits

of New Zealand avocados.

However, the industry faces a

major challenge in meeting the

growing demand in Asian and

other export markets while it

grapples with achieving more

consistent production.

Last year Korea imported

1.1 million avocado trays from

all origins – more than double

the volume imported in 2016.

The overall value rose by 158

percent – up from US$12 million

in 2016 to US$31 million

last year.

New Zealand shipped more

than 145,000 trays to Korea

last season, with AVANZA

accounting for 66 percent of

that volume.

Returns per tray improved

by close to 20 percent during

a season when relatively low

productivity - typical of an

industry where the fruit tends

to bear more in alternate seasons

- ensured record returns

for most growers.

Korea market manager

Martin Napper said that

AVANZA-led promotional

activity had grown the avocado

category in Korea, where

people were prepared to pay

a premium for the large New

Zealand-grown fruit.

Three years ago, avocados

were a relatively unknown

fruit in Korea, with only about

250,000 trays imported. That

grew to 500,000 in 2016 before

taking a giant leap last season

when Korea became a one million

tray market.

“All the work we’ve done

to educate consumers on the

health benefits of avocados as

well as teaching importers and

distributors how to correctly

handle and store the fruit,

is paying off with increased

sales,” he said.

The Ministry of Foreign

Affairs and Trade has noted

that the entry into force of the

Korea-NZ FTA in December

2015 was a positive development

for many of its main

horticultural exports. A number

have enjoyed or will enjoy

substantial tariff reductions

under the agreement. Avocados

are set to achieve a major tariff

benefit under the FTA, with

a 30 percent tariff gradually

reduced to zero by 2024.

Meanwhile, Korea’s 45 percent

tariff on kiwifruit will be

phased out by 2020 and kiwifruit

exporters have already

had a third wiped off this tariff

since entry-into-force of the

FTA.

Napper said young Korean

women were particularly

receptive to the nutritional

messages about New Zealand

avocados, which recent

research says have twice as

much vitamin B6 and 20 per

cent more folate than those

grown in other countries.

Last year’s promotional

In-store promotion in Korea: local consumers are

developing a taste for NZ avocados. Photos/supplied.

All the work we’ve

done to educate

consumers on the

health benefits of

avocados as well

teach importers and

distributors how

to correctly handle

and store the fruit,

is paying off with

increased sales.

activity included an ongoing

association with Maeil Dairies,

one of the largest beverage

companies in Korea. The partnership

enabled AVANZA to

participate in Maeil’s soy milk

and avocado smoothie promotions,

including social media

campaigns.

Market investment also

included recipe ideas and

supermarket demonstrations,

which are seen by marketers

as an effective way to reach

first-time consumers. Over the

past four years, AVANZA has

held 1500 sampling sessions,

reaching 600,000 consumers.

Centrepiece displays in selected

stores providing consumers

with the option to select

a ready-to-eat piece of fruit

have also increased sales, said

Napper.

AVANZA’s promotional

strategies were being applied

in North and Southeast Asian

markets, he said.

“It makes sense to apply the

same strategies to all our markets,

including Singapore and

Thailand – anywhere where

we can see potential for real

consumption growth as diets

become more varied.”

But while developing markets

outside of Australia - traditionally

the major and highest-paying

market for the NZ

fruit - was important for the

long-term future of the industry,

demand is currently outstripping

supply.

Last season’s low crop

volume meant New Zealand

could only export 2.2 million

avocado trays – less than half

the volume shipped offshore

during the bumper crop of

2016-17. AVOCO handled 1.3

million trays with about 81

percent sent to Australia.

The ANZ Agri Focus report

said the increasing demand

was leading to new greenfield

development opportunities in

the Upper North Island.

“Globally many countries

are eating more avocados due

to their versatility, trendiness

and health benefits,” said ANZ

rural economist Con Williams

in the report. “ [But] because

avocados have a long lead

time for development, supply

is struggling to keep up.”

AVOCO’s marketing and

communications manager,

Steve Trickett, concurs, saying

the supply shortfall caused by

irregular fruit bearing meant

volumes were spread thinly

across some AVANZA markets

last year. With China also

now opening its doors to New

Zealand, all exporters wanted

more fruit to maximise the

growing market opportunities,

“As an industry, we’re

investing in research to achieve

more consistent production and

planting an extra 1000 hectares

in young trees,” said Trickett.

“But it will take time for

us to see the benefits of that

investment. In the interim,

growers have to adapt quickly

to meet specific customer market

compliance requirements

to ensure their fruit can be

exported to these new markets

being opened. As we grow our

markets and consumers develop

an appetite for avocados,

every piece of fruit counts.”

Baypark – showcasing

Tauranga City

Bay Venues/Baypark has

increased its emphasis

on business events over

the past couple of years and

the hard work is now paying

dividends for the events centre

and for Tauranga City.

Large conferences and

events have a long lead-in

time and the process to secure

significant business events is

usually complex. Added to

this, Tauranga as a destination

is competing against all

the large cities and regions in

New Zealand.

The huge economic impact

generated with conferences is

not always recognised. Just

one 500 delegate conference

for three days reaps more than

$500,000 for the city. It is not

just the benefit to Baypark, but

also flows through to accommodation,

leisure activities,

retail, travel, and promotion of

the area. In effect,our city is a

showcase to visiting delegates.

In one such event in March,

Tauranga was the destination,

and Baypark was the preferred

venue and host for The NZ

Planning Institute Annual

Conference & Exhibition 2018.

This year the theme for their

conference was “Breaking new

Ground” – and they did.

The delegates, accompanying

partners, international

speakers and management of

the conference attracted close

to 800 visitors to Tauranga

city. The visitors were in the

city from three/ four nights.

As well as the conference

and exhibition, the delegates

had field trips to significant

developments in Tauranga

city such as the Tauriko West

development, a Civic Heart

Tour, an iwi development tour,

and the Te Temu natural hazards.

This demonstrates the

flow-on effect for the city from

the exposure to just this one

business event.

In April, the Bethlehem

Tertiary Institute will bring

their Research Symposium -

an international conference -

to Baypark, again bringing in

visitors for three/four nights

generating economic impact

across the city. SO please

make them welcome.

Other activities continue,

with a variety of back-to-back

events. Baypark was pleased

to host Parafed’s Disability

Sport Festival, which filled the

Arena for a weekend in March.

The event was made even more

special with a Paralympics

Open Day in the Arena on the

Sunday. This NZ touring interactive

exhibition showcased

the Para sport opportunities in

each area, with the opportunity

to meet Paralympians, watch

demonstrations and to even

have a go.

The International Tattoo

and Art Extravaganza from

14-15 April is now upon us.

It has taken months of preparation

and the promoters keep

adding more and more into

the programme. This is an

event that offers most things

and with the elements to surprise.

See up close the 100+

International Tattoo Artists in

action, enjoy a wide variety of

exhibitions: dance, wearable

arts, entertainment/live bands,

variety of food and beverages,

fire show, DJ’s, circus show,

live street art, and even a Miss

Tattoo contest.

For more information,

check out their website

www.tattooextravaganza.nz.

Pre-show tickets are available

from Eventfinda, and there

will be door sales.

For more information on

any events or enquiries to

secure any of the Baypark

venues, BayStation activities

or services on/off site from

BayCatering, BayAudioVisual,

www.asbbaypark.co.nz or

events@bayvenues.co.nz or

call 07-577 8560.


IoT innovation

a team sport

Businesses are increasingly heeding the call

to put the Internet of Things at the heart of

their plans for digital transformation.

By ANDREW HITCHFIELD

Vodafone Regional Sales

Manager, Bay of Plenty/Waikato

Andrew.hitchfield@vodafone.

com and 0299 289 013.

“Farmers don’t even realise

how much data could be available

to them. The role of businesses

like ours is to translate

data into useful information

for them to make decisions

with – information they were

blind to that has the potential

to transform their business.

It’s a really exciting journey to

be on with them.”

Andrew Hitchfield

Vodafone’s 2017 IoT

Barometer Report

found 74% of businesses

agree digital transformation

is impossible without IoT.

Our customer, Larry

Ellison, is among them, seeing

endless potential in IoT

innovations to transform the

business of farming.

The Ellison Group which

owns the successful agri-tech

monitoring company, Levno

has recently joined forces

with another company that

produces the Zeddy dry feeder.

Zeddy enables farmers to

feed individual diets to calves,

cows, goats, deer and, currently

under trial, sheep.

It identifies animals by

their electronic ear tag, then

dispenses a predetermined

amount of feed. Importantly,

it communicates data back to

the farmer’s smartphone or

computer, giving them valuable

information about their

herd.

“Smart farming is the

future and the development

of the IoT network is only

going to make data more readily

available to farmers,” says

Ellison.

Smart farming is

the future and the

development of

the IoT network

is only going to

make data more

readily available to

farmers.

IT TAKES A GLOBAL VILLAGE

Whether you are developing

a new technology like

Zeddy, or looking for ways of

future-proofing your business

for the digital age, many businesses

want to know how to

make the leap to IoT and reap

the rewards of this data-rich,

always-connected way of doing

business. My answer is always

the same. IoT is not a solo act.

You need to pick a team.

Ellison, whose personal

philosophy is that business

in general is a team sport,

approached his company’s IoT

journey in the same way.

Ellison tells me because

Zeddy is a start-up, they’re

careful that the people they

choose to do business with

share their passion. “We’ve

been in the trenches together

with Vodafone with other

Zeddy data sent directly to farmer’s smartphone or computer.

projects and know they can

deliver,” he says.

When we’re working

through our customers’ IoT

needs, typically the solution

they need already exists

– we’ve delivered it here or

somewhere else in the world.

We can draw on our global

partner ecosystem to meet any

IoT challenge.

CONNECTIVITY. THE GLUE.

Secure, reliable, global connectivity

is at the heart of IoT – it’s

the glue that holds it together,

and Vodafone connects more

than 60 million devices globally.

Ellison says connectivity

was one of the challenges with

development of the Zeddy.

“What Vodafone allowed us

to do is to reach everyone we

want to reach and provide our

service to all of our markets,

which we couldn’t do with

another provider.”

Our Managed IoT

Connectivity Platform helps

companies manage their connected

IoT deployments in 182

countries. Local and global

What Vodafone

allowed us to do is

to reach everyone

we want to reach

and provide our

service to all of our

markets, which we

couldn’t do with

another provider.

customers are given global

IoT SIMs, managed through

one global platform, on more

than 600 mobile networks and

accessed through an easy to

use self-service portal.

LEADING IoT INNOVATION

Today, less 1% of all the

things that could be connected

are connected, often due to

the constraints of being geo-

graphically remote, deep within

urban infrastructure or even

underwater.

Our team is taking on this

challenge through development

of a Narrowband IoT

network.

NB-IoT opens up a whole

new world of possibilities,

|enabling connectivity

in previously inaccessible

environments.

NB-IoT is particularly relevant

in the agriculture sector,

where it will allow farmers

to easily monitor things like

gates being open or closed,

ground moisture or water levels

in tanks. It offers huge

potential to drive efficiencies

and boost productivity.

Vodafone’s NB-IoT network

will be rolled out in

New Zealand this year, built

to a global standard to deliver

security, scalability, quality of

service and longevity. I believe

this will be game-changing

for the way businesses in the

BOP/Waikato will be able to

operate.

GETTING IN THE xone

Our team approach to driving

innovation in IoT extends to

investing in Kiwi IoT innovators

through our Vodafone

xone accelerator lab.

We provide seed-funding,

access to world class technology

and mentoring as part

of a six-month programme to

companies with game-changing

IoT ideas.

WHERE TO NEXT?

As for what’s next for Zeddy,

Ellison tells me they have great

ambitions to be one of the biggest,

most innovative agri-tech

companies, saying, “We really

believe in this sector and by

pairing up with Vodafone, I

think we can achieve that.”

Zeddy smart dry feeder in action.


Zespri gets tick from growers

for share changes

Major changes to Zespri’s share structure have been welcomed

by the sector’s grower body as the export marketer moves

to more closely align its ownership with those responsible for

producing the fruit.

By RICHARD RENNIE

The changes resolve the

longstanding problem of

so-called “dry” shareholders

- those who have

shares in Zespri, but are no

longer actively growing kiwifruit.

The changes are Zespri’s

attempt to deal with what chairman

Peter McBride described

as a concerning mis-alignment

of ownership between growers

and non-growers.

Almost 30 percent of shareholders

are currently below

the 1 share:1 tray ratio, while

eight percent of growers are

over the 4:1 share cap Zespri

proposed in the constitutional

changes. Meanwhile, 15 percent

of Zespri’s 120 million

shares are held by people who

are no longer connected with

the industry.

A special general meeting

held in mid-March drew the

required 75 percent-plus grower

support for the changes.

After almost five years and a

major industry strategy review,

kiwifruit growers have agreed

to the proposed changes to

Zespri’s constitution.

There are now caps on the

ability of non-producing shareholders

to continue owning

shares, as well as a focus on

getting new growers to own

shares representing the volume

of crop they contribute.

Growers who are overshared,

with more than four

shares per tray of production,

will face a cap on their ability

to buy more shares.

And those over-shared at

the time of the new rules will

have seven years to sell the

surplus shares, and three years

for those who become overshared

after the rules are introduced.

In an effort to better align

the 18 million shares attached

to non-growing owners, Zespri

has set a dividend cap on

non-producing shareholders,

who now face a fade out period

of seven years on their

dividend payment.

“We are at a critical junction

with a unique opportunity

to formalise what the majority

of owners have asked for,” said

McBride.

The changes have been welcomed

by Nikki Johnson, chief

executive of grower body New

Zealand Kiwifruit Growers

Incorporated (NZKGI).

“On behalf of NZ’s kiwifruit

growers, NZKGI is pleased

with the outcome of Zespri’s

Special Meeting,” she said.

This support for

change reflects the

cohesiveness of

our industry and a

common interest

among growers and

former growers in

seeing it prosper.

“The passing of the resolutions

at the Special Meeting

was the final step in achieving

what growers indicated

they wanted in the Kiwifruit

Industry Strategy Project.

“In 2015, around 90 percent

of growers voted in the

KISP referendum to support

proposals to change Zespri’s

constitution to allow for alignment

between growers and

shareholders.”

McBride gave a brief history

lesson on Zespri’s creation

back in 2000, when growers

had sought government

approval to make the marketer

a full co-operative.

“Treasury would not allow

NZKGI’s Nikki Johnson: Growers supportive of changes

to address dry shareholding issue. Photo/Supplied.

it – but that is where we are

wanting to head back to today.”

McBride said dealing with

the share allocation was also

a significant succession issue

that needed to be addressed,

just as in any farm or orchard

operation’s ownership.

“The outcome will be

important for the next generation

of kiwifruit growers.”

To facilitate the entry of

newer growers as shareholding

operators, the changes have

included an allowance for new

entrants to have the entitlement

to buy shares up to one

share per tray. This is if they

own or lease a site on which

there is no history of production

in the past three years.

Those shares cannot be voted

with until the orchard begins

production.

A share buy-back programme

will also target those

growers who are over-shared

and non- producing share holders,

purchasing their shares at

fair market value, and targeting

a share issue to unshared

and under-shared growers.

“This support for change

reflects the cohesiveness of our

industry and a common interest

among growers and former

growers in seeing it prosper,”

said McBride.

“The measures require

a huge amount of goodwill,

but ultimately they will support

Zespri’s ability to deliver

strong, sustainable value to

kiwifruit growers and shareholders

over the long term. It’s

a fantastic legacy for the next

generation of people in our

industry.”

Can’t quite get that job?

We’ll HOOK you up with job advice,

and even help you CATCH a job!

N E W Z E A L A N D

TAURANGA

07 571 0283

tgaadmin@nz.drakein.com


SwipedOn awarded $15 million

Callaghan grant

Tauranga-based software company SwipedOn has been awarded

a growth grant by Callaghan Innovation for its iPad-based visitor

management system. The grant is for an initial three year term,

refunding 20 percent of all eligible spend, up to a total of $15 million.

By DAVID PORTER

The grant reflects the rapid

progress the company

has made since it was

founded in 2013.

The software-as-a-service

company replaces paper visitor

books with an innovative

iPad application.

Its founders grew the business

with no financial backing

or sales team into a product

used in more than 2000 cities

worldwide, largely in the UK

and US.

The company has focused

on one core product: an elegant

iPad-based visitor management

system that replaces

outdated visitor books with

a sleek, simple and modern

solution.

Since launching its current

app in 2016, SwipedOn

has achieved $1 million

annual recurring revenue as

of December 2017, and has

raised an additional $1million

in capital. The company has

also recruited five new fulltime

staff to keep up with

company growth.

Founder and chief executive

Hadleigh Ford said the

team was thrilled to have been

awarded the grant.

“SwipedOn has grown

quickly in the last couple of

years and this will certainly

help us accelerate the pace of

development and innovation,”

said Ford.

The $1 million capital raise

came from various sources,

including Bay of Plenty-

Waikato early stage investment

group Enterprise Angels,

as well as Sir Stephen Tindall’s

K1W1 fund, and the government’s

NZ Investment Fund.

Enterprise Angels executive

director Bill Murphy said

the capital raise had gone really

well.

“The product itself is interesting,”

he said.

“It’s not super special. And

it’s kind of unusual that we

would back something that

isn’t strongly unique. But

there’s only five or six companies

in the world doing what

they are doing.

“And Swiped On is at a

different price point than most

of them - there really is a big

market there for them. And we

really like the team.”

Enterprise Angels also

helped put together a strong

board, led by entrepreneur,

investor and tech commentator

Ben Kepes.

We’re also proud of

the fact that we have

done this from the

regions, being based

in Tauranga. We don’t

feel we need to be

in any of the main

centres to build and

deliver a world class

product.”

– Hadleigh Ford

Hadleigh Ford said that

while SwipedOn had begun as

a modern replacement for antiquated

visitor books, the company

saw a number of ways it

could enhance the entire visitor

experience.

“We’re also proud of the

fact that we have done this

from the regions, being based

in Tauranga. We don’t feel we

need to be in any of the main

centres to build and deliver a

world class product.”

SwipedOn’s Hadleigh Ford:

Thrilled to win grant to

further develop visitor app.

Photo/supplied


The performance appraisal

One of the most common complaints we hear from staff is around

not receiving enough - if any - feedback from their managers.

HUMAN RESOURCES

> BY KELLIE HAMLETT

Director, Recruitment & HR Specialist, Talent ID Recruitment Ltd

It is fair enough to want to

know how your performance

is being rated, and whether

you are doing a good job or if

there is room for improvement.

On the management side of

the desk, many of the employers

I work with really dislike

having to do the annual round

of performance reviews.

It certainly doesn’t seem

to be at the top of anyone’s

enjoyment list, and it’s more

often than not seen as a tick

the box process rather than

one that adds any value to

the employment relationship

or the organisation.

So why do we do them and

is there a better way?

Managers have always had

to assess their employees’ performance,

yet the function of

carrying out the annual performance

appraisal is still

problematic for many organisations.

The negative image of the

performance appraisal may in

part be due to managers who

are either poorly trained and

inadequately prepared, or just

not committed to the process.

That means many managers

view the performance appraisal

as a chore because they

do not understand the importance

of performance management

and the value that can be

gleaned from it when carried

out correctly.

Or it could also be the case

that their organisation does not

emphasise these benefits.

Regular sessions

with your staff

ultimately means that

issues that are raised

can be escalated if

appropriate and dealt

with in a more

timely way.

And importantly, in many

organisations, performance

appraisals are reactionary

- they focus on judging past

performance rather than being

proactive, and often don’t have

transparent and agreed goals

in place.

I’m of the opinion that

feedback should be given on

a regular basis. There is certainly

a time and a place for an

annual process. But waiting for

potentially a year to raise an

issue with an employee’s performance

simply doesn’t work.

One option is to sit down

with your employees in a less

formal way on a regular basis

to talk about what is going well

and what could be improved

upon.

This can be a useful tool

both to engage employees, and

also to deal with those niggly

small things that can often fester

and turn into larger issues if

not addressed quickly.

Regular sessions with your

staff ultimately means that

issues that are raised can be

escalated if appropriate and

dealt with in a more timely way.

And we often see these

more regular casual meetings

resulting in the annual process

being viewed in a more positive

light, with better outcomes.

The more formal annual

Performance Planning &

Review - as the process is now

more commonly known - then

follows on from these regular

meetings, with a stronger

focus on the development of

employees’ future work targets

and objectives.

That allows both employer

and staff to measure progress

against previously established

goals, and provides a platform

to review work behaviours and

job performance, and to identify

areas for future training and

development.

In this sense, the manager

can use the Performance

Planning & Review process

to identify and set work

objectives, decide on performance-based

awards, and provide

feedback on results and

performance.

And the organisation can

also identify career and succession

planning, determine

training needs, assist with

employee counselling, and

better support promotion and

termination decisions.

Essentially, for the worker

this process should mean reinforcement

through feedback

and or pay rises, the potential

for career advancement, training

and development.

It provides a platform in

which goals can be identified

and agreed, as well as a safe

environment to both receive

and provide feedback in order

to improve performance and

communication.

Ultimately – whatever system

you choose to use within

your organisation - you need

to meet the needs and goals of

both employer and employee.

There is no value at all in a

system which is purely functional

and just gets put away

with no further evaluation for

another 12 months.

A vote for Buddy Mikaere

means ‘bringing balance,

pragmatism, and a fresh

vision’ to Tauranga City.

Keeping business financials in shape

SPECIAL FOCUS:

BUSINESS MONEY

MANAGEMENT

‘I’m passionate about

our region and promise

to do the very best

for our community

regardless of age,

gender or ethnicity.’

Vote Community

Vote Buddy Mikaere

Follow my election campaign on

www.facebook.com/Buddy-Mikaere-Candidatefor-Tauranga-City-Council-110419959644171/

Authorised by Buddy Mikaere, 6 Crichton Terrace, Papamoa 3116

Authorised by D. Clifford, The Opportunities Party (TOP) Incorporated,

Level 1, 190 Taranaki Street, Wellington

Book your spot in

this feature today.

For more information contact:

Pete Wales:022 495 9248 Vanessa Lee:021 715 225

pete@nmmedia.co.nz vanessa@nmmedia.co.nz



Building a purpose-driven brand

Rebel Sport ran an ad campaign last year

asking “What’s your why?” It focused on

stories of New Zealand athletes, presenting

the reasons they dedicated so much of

their life and time striving to make it at the

pinnacle of elite sport.

All Black Malakai Fekitoa

was featured in the campaign.

His “why” was to

prove the doubters wrong and

show that he could play professional

rugby when everyone

said he wouldn’t make it.

Paralympic swimmer

Sophie Pascoe was also front

and centre. Her “why” was

showing the world her disability

did not define her.

This ad campaign is a

great example of a company’s

efforts to make its brand purpose-driven,

rather than functional.

Instead of focusing on

a message like “high quality

sportswear and equipment”,

Rebel Sport was telling the personal

stories of athletes whose

lives had been changed by

sport. The campaign focused

on sport’s ability to build character

and shape people’s lives

in a hugely positive way – an

idea that Rebel Sport believes

in and aims to embody.

The concept of creating a

brand driven by its “why”, rather

than its “what” or “how”,

has become popular as companies

vie for market share in an

increasingly globalised world.

Rather than focusing on the

features of the computers they

TELLING YOUR STORY

> BY JAMES HEFFIELD

Director of Bay of Plenty communications consultancy Last Word

Writing Services. To find out more visit lastwordwriting.co.nz or

email james@lastwordwriting.co.nz.

make, Apple built its brand by

promoting its vision of challenging

the status quo.

Apple articulated this

vision beautifully in the opening

words of an iconic 1997

TV commercial, which began:

“Here’s to the crazy ones, the

misfits, the rebels. The trouble

makers, the round pegs in the

square holes. The ones who

see things differently. They’re

not fond of rules and they have

no respect for the status quo”.

This struck a chord with

all those who shared the same

beliefs, and it positioned Apple

as the computer company of

choice for them.

Many New Zealand corporates

are doing the same.

Fonterra’s recent advertising

campaign, “Made by many”,

focuses on dairy’s role as a

major employer, its contribution

to New Zealand society

and its central role in the Kiwi

way of life.

The campaign draws attention

to the many New Zealand

people and companies involved

in the dairy production chain,

from the farmer who milks

the cows and the truck driver

who drives the milk tankers,

to the people who work at the

milk and cheese factories and

the ship workers who transport

Kiwi dairy products to overseas

markets.

Coupled with Fonterra’s

Milk for Schools programme,

the campaign demonstrates

the positive outcomes of

Fonterra’s work and helps to

get townies on board with an

industry that has been criticised

for intensive farming and

contributing to dirty rivers.

Transitioning your business’

brand from one that is

functional to one that is purpose-driven

involves reflecting

on what you stand for – over

and above just making money.

If you are the company

founder, think about what

beliefs were behind your decision

to start your business.

What are your business’

core values, and how does your

work contribute to society?

These are the foundations

for a purpose-driven brand and

they should be embodied in

everything you do, from your

logo and the words on your

website to your products and the

way you and your staff interact

with the people you meet.

If you can clearly articulate

your purpose, your beliefs and

the reasons why your business

exists, then you will have

a powerful message capable

of influencing consumers,

gaining recognition and rallying

like-minded thinkers to

your cause.

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Video marketing is a must

The world of marketing is continually evolving and it can be

difficult for small and medium businesses to keep up with the

trends. However, one area that can no longer be considered a

trend, and should now be a marketing staple, is video marketing.

Unfortunately many businesses are missing on this incredibly

effective marketing tactic.

Video already accounts for

two-thirds of our internet

use. This is prediced to

increase to 82 percent by 2021.

Video social network YouTube

is now the second-largest

search engine on the web.

If this isnt compelling

enough for you to include

video in your marketing mix,

then marketers who use video

grow revenue 49 percent faster

than those who don’t.

Video also improves email

marketing results. By just

using the word video in an

email subject, it can boost your

open rate by 19 percent and

increase your click-thru rate by

65 percent.

Furthermore videos on

social media people are 10

times more likely to engage,

embed, share, and comment

on video, rather than text or

image alone.

Why is video so effective?

It allows you to evoke more

GROWING YOUR BUSINESS

> BY DARREN MCGARVIE

Darren McGarvie is co-founder and Chief Coach of the

Firestation, the Bay’s only business growth centre. To find out

more go to www.thefirestation.nz or email grow@thefirestation.nz

emotion. Human beings are

visual and respond more to

moving images than text or

photos alone.

It is an excellent way to

tell a story and keep viewers

on your site, engaged on your

social media accounts and to

open and click through on your

emails.

It’s not just consumer products

and services, all organisations

need to get onboard with

video marketing. Business-tobusiness

companies in particular

should include video in

their marketing mix.

Research from forbes.com

found that 75 percent of business

executives watch work-related

videos each week. And at

least half of them share videos

with colleagues.

There are some things you

need to consider when you

start creating video. Just like

any of your marketing, you

need to have a strategy. Don’t

post videos haphazardly, but

plan your videos to be part of a

series or campaign.

The key is to focus on a

message you want to share

and be authentic to your brand.

You must focus on the story –

straight product promo videos

don’t cut it anymore. Here are

some tips to get you started:

Videos can be as short as

15 seconds long to hours in

length. Marketing videos that

get the best engagenent are up

to two minutes long.

The first 10 seconds of your

video is crucial. Be up front

straight away about your video

content.

Use captions – 50 percent

of video views in social media

are watched with no sound.

Live video on social media

get three times the engagement

than traditional video, so find

ways to include live video in

your social media calendar.

You don’t need to pay huge


dollars for professionals to

do film and edit your videos.

Video cameras on the latest

phones are usually pretty good

quality and there are ample

free and paid video editing

apps and programmes that are

easy to use. Check out Filmora

Wondershare, Magistro or

VideoShop to start.

One thing often overlooked

is a call to action. Tell them

what the next step is. Point

them to your website, get them

to call you for a quote or even

provide a coupon for your

e-commerce store.

Once you have created your

video make sure you share and

promote it on social media,

newsletter database and your

website.

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Video can be a powerful

way to promote your business

and to stand out from your

competitors. When implemented

correctly, a video marketing

campaign can help reach new

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Creating a millennial friendly city

A “youthquake” is happening here in

Bay of Plenty and San Francisco-based

entrepreneur Savannah “Savvy” Peterson

came last month, to tell locals how to

make the most of it.

The event, hosted by

SmartGrowth, focused

on how Bay of Plenty

can make the most of its future

by embracing and working

with the millennial population,

as well as attracting and

keeping more millennials in

the region.

“Millennials are self-actualising

and curious,” Savvy

says. “They ’do’ entrepreneurship

and gig economy work,

and they’re becoming selfsustaining.”

She says while millennials,

those born between 1980

and 1996, are often referred

to as ‘the me generation’, they

have a lot to offer our local

economy.

“Millennials have money

they want to give you. They

are the largest living generation

and the largest spending

generation. But they

have been marketed to in

every possible way, so they

want authentic, personalised

experiences.”

Savvy says businesses

should bring their millennial

staff members into their planning

to help them tap into this

economy.

She also says the key is not

to let our youth leave the Bay

in the first place.

“Don’t let your young people

leave. Nurture them, keep

them here, give them opportunities

for entrepreneurship,”

she says. And how do we do

that?

“Millennials want to be

where there is an active group

working to connect and support

entrepreneurs.”

Luckily for the Bay, we

have exactly that in Venture

Centre, which exists to support

and empower youth, and those

young-at-heart, helping entrepreneurs

start-up and business

owners scale-up using digital

tools, business models and

marketing.

Savvy also says keeping

our millennials is not about

an exciting night-life or cool

events.

“There is no one thing,

no one cultural event or programme

a place can hold to

attract young people. But,

and this is so exciting, young

people regard a start-up ecosystem

as the best way to

empower them.

“What that means is if they

can see people in the community

starting new businesses,

talking about entrepreneurship

or exploring ways to collaborate

with other businesses…

young people see you

are encouraging them to build

their future with you – sometimes

they just need to see it,

they don’t even need to be

involved. So tell your small

Millennials have money they want to give

you. They are the largest living generation

and the largest spending generation.

But they have been marketed to in every

possible way, so they want authentic,

personalised experiences.”

– Savannah “Savvy” Peterson

business story and your young

people will feel empowered.”

Though, Savvy says,

encouraging entrepreneurship

should come with a warning.

“Do not try and emulate

Silicon Valley! Do it your

way.”

She says Silicon Valley has

spent so much time focusing

on chasing the “unicorns”,

which are privately held startup

companies with a current

valuation of US$1 billion

or more, it has lost its heart

and culture as a result. She

says the key is to focus on

“zebras”.

“A zebra business is a

healthy sustainable business

that does good in the community.

Don’t overlook the zebra!”

Savvy says.

She also says that communities

should focus on localisation

and intergenerational c

ollaboration, as Venture Centre

does.

“Come together around

social good,” she says. In part,

this will be effective because

87 percent of millennials

believe that the bottom line

in business is not monetisation,

rather its purpose, quality

of life and impact on one’s

community.

“Climate change and

inequality are the number

one issues for millennials.

Perpetual oppression could

end with this generation,”

Savvy says.

Not only that, but 56 per

cent of millennials also don’t

feel they are heard.

“Create a space for your

young people to be heard,”

Savvy says. One way you can

listen is by taking part in one

of the many meet-ups, openhouse,

co-working events

Venture Centre and Basestation

hold.

“Share your knowledge,”

Savvy says. “Find a nest of

people to talk with, and be

honest.”

Your next chance to share

your story, your business, your

vision for the future with millenials,

is to get involved in

Techweek Tauranga 21-25 May.

To find out how to participate

in the events on the

calendar or run your own with

help from the VC team, email

info@venturecentre.co.nz.

BAY OF PLENTY BUSINESS NEWS February/March 2018

15

Get the best from your millennial

team members

I don’t really like the term ‘millennial’. It has

accrued so many negative connotations, none

of which I identify with. I don’t like selfies,

I’m not entitled or lazy. I work hard and have

always done so in order to get ahead.

But when Savvy Peterson

spoke to a SmartGrowth

meeting in March about

what makes millennials tick, I

found myself vigorously nodding

my head.

Millennials are the largest

living generation, with more

than one million Kiwis falling

into this age bracket.

With that in mind, here are

the easiest ways to get the best

out of your millennial team,

based on Savvy’s data and my

experience, as both a millennial

employee and manager.

GIVE US PURPOSE,

AND A FUTURE

According to Savvy, millennials

want a sense of purpose

from their job - it’s more

important than money!

If they can see how their

role fits into what your company

is doing for the community

or its clients, they’re more

likely to feel as though they

have purpose.

Equally important is to

make sure you show them

there’s a future career path and

a timeline to achieve it.

When I look back at

my career, every time I’ve

changed jobs or industry, it’s

been because I didn’t feel my

role had purpose or a future.

GIVE US FLEXIBILITY

Savvy’s data showed that millennials

in New Zealand are

most likely to change location,

job and take a pay cut

in favour of flexible working

hours. We’d still like to be able

to pay our bills of course, but

flexibility matters.

One of the SmartGrowth

panellists, Grace Burman, said

she likes to be given a workload

and a deadline and it’s up to her

how and when she completes

that work. I completely agree.

When you give us clear

expectations and a deadline,

treat us as part of the team,

but leave how we manage our

QrtHori_BOPBN_Basestation_Oct17.pdf 1 17/10/17 10:37 AM

Rosie Dawson-Hewes

time to us, it tells us you trust

us. We’ll reward that trust with

hard work and loyalty.

Growing an online store

Throughout New Zealand

there are gifted entrepreneurs

with a unique skill

of curating or creating a range

of products that we love to buy.

At Rocketspark we get to

see the potential of these businesses

realised when they start

to sell online and extend their

reach beyond their shop front

or market stall.

From our vantage point

of helping businesses online

we’ve observed the essential

elements for growing an online

business.

Websites, search engine optimisation

and digital marketing

may seem complicated but we’ve

learnt that if you do the basics

well you’ll see good results.

So what are the basics?

GENERATING VISITORS

As Google becomes more

sophisticated the process of

optimising a website is less

about technical tricks and more

about having quality content

on your website that answers

the questions that people are

searching for.

To show Google that you

have the answer there are various

clues such as having keywords

in your headings, paragraph

content and links.

Creating landing pages and

blog posts that are focused on a

specific topic shows the search

engines that you are a credible

website to send people to.

Paid online advertising

can also generate visitors and

the introduction of Google

Shopping in New Zealand has

made paid online advertising

simpler for small businesses

but few SME’s are taking

advantage.

The Google Shopping ad’s

content is automatically pulled

from your online store so you

don’t have to manually create

the advertisements and they’re

likely to convert at a higher

rate than traditional adwords

advertising.

CONVERTING VISITORS

Generating visitors is not valuable

unless these visitors are

making a purchase now or are

likely to purchase in future.

There is a lot of research

and science behind what

makes a website convert visits

into sales.

Making a great first impression

is a good place to start

when assessing your conversion

potential.

Carleton University in

Canada found that a credible

impression could be formed in

0.03 seconds and if provided

with a longer time the visitor’s

impression didn’t really change

GIVE US FEEDBACK

You know how I said money

isn’t important to us? That

doesn’t mean we don’t like to

feel valued.

Your feedback and appreciation

doesn’t have to be in the

form of a pay rise (though we

like those, too – who doesn’t?).

If your team does a great

job, put on morning tea, or

shout Friday drinks. Or just

stop and take the time to say

thank you.

That simple act will make

us feel more appreciated and

engaged, so we’ll keep working

hard for you.

BRING US INTO

YOUR DECISIONS

The millennial generation represent

the biggest spending

demographic and are the first

generation of ‘digital natives’.

Think about what this

world view could do for your

business or your clients. But

also, 56 percent of millennials

don’t feel heard by their

leadership. So invite us to

the table.

We’re capable of more than

just helping you set up your

phone.

Even if our role doesn’t

allow us to make the final decision,

we like to add value to

the conversation, help you use

Grant Johnson,

Rocketspark Co-founder

so it’s important to get your

first impression right.

Once the first impression is

made you’ll need a clear path

to purchase. Once someone

has found what they are looking

for it’s important to make it

easy to buy.

Providing suitable payment

options is also important.

We’re seeing that offering buy

now pay later services such as

www.laybuy.com as a payment

option is having a significant

the personalisation tools that

are available to you when you

really embrace digital business

models and marketing.

It comes back to that sense

of purpose and being part of

the bigger picture.

We want to contribute and

represent a large block of the

population.

Including us in your decisions

is important at a higher

level, too.

Think about us when you’re

considering board positions.

We’ll do the work to get

the experience needed to be

part of those conversations.

Plus, as digital natives, we’re

often great at the tech aspects

required in those roles.

Finally the millennial

generation is not represented

at either of our local council

tables, and yet we are the

future of this region.

So think strategically when

you vote. Balanced, diverse

representation will yield better

results which serve the

entire population for years

to come.

Rosie Dawson-Hewes has a

background in banking, journalism,

management and marketing

and runs her communications

business, Very Good

Content. She is also a Tauranga

Art Gallery Foundation trustee

and is standing for Tauranga

City Council in this month’s at

large by-election.

impact on order sizes and sales

volumes.

LEARN MORE

To learn more about selling

online and social media for

ecommerce join our seminar

on Growing an Online

store as part of PoweringOn’s

digital enablement series

for the Bay of Plenty powered

by The Venture Centre.

See www.clik.vc/growingastore

to learn more and register.

MADVentures – events for youth

Te Puke Library Holiday Coding

17 & 27 April 2018

Codebrite Lite Katikati

23 April 2019, 1pm to 3pm

PoweringON – events for business

owners

Making More E-Commerce Website

Sales with Rocketspark

18 April 2018, 10:30am to 12pm

Knowing Your Customer with Bravesight

26 April 2018, 10:30am to 12pm

Office Hours Financials with Crowe

Horwath

9 April 2018, 11am to 1pm

Office Hours Xero Tips & Tricks with

Ingham Mora

11 April 2018, 11am to 1pm

Office Hours Intellectual Property with

James & Wells

11 April 2018, 11am to 1pm

Office Hours Marketing Strategy and

Planning with Marketing on Demand

12 April 2018, 3pm to 5pm

Office Hours Legal with Mackenzie Elvin

16 April 2018, 11am to 1pm

Office Hours Sales and Marketing with

Bravesight

19 April 2018, 10:30am to 12pm

Xero Users Group

24 April 2018, 9:30am to 10:30am

Google for Small Business Users Group

25 April 2018, 9:30am to 10:30am

Instigator – events for founders

ADI (Angelic Drop In) Clinic Tauranga

12 April 2018, 4:30pm to 6:30pm

Tauranga Social Enterprise Meetup

17 April 2018, 5:30pm to 7:30pm

Entrepreneurs Everywhere

18 April 2018, 5:30pm to 7:30pm

Special Interest – events

for and from experts

Office 365 Discovery Session with

ShareThePoint

12 April 2018, 10am to 12:30pm

Plug-in & power up

C

M

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CM

MY

CY

CMY

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Coworking – way

more than a desk!

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a tour & enjoy a

coffee on the house

• Desks, secure offices, team spaces

• Flexible terms - come for a day,

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• Event and Meeting rooms free

with residency or book as needed

• Uncapped internet

• Tech support and award

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Designed, managed and run by

Get in touch 0800 000557

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COMMERCIAL AND INDUSTRIAL PROPERTY

Construction and growth

still looking strong for 2018

Tauranga City Council saw a decrease in overall building consent

activity during February 2018, while Western Bay District Council

picked up, compared with January, according to Priority One.

But while there was a

lower number of commercial

consents in

particular, February saw

record values for commercial

consents issued in a January

month.

That meant the drop could

be more a quirk of processing

than setting a new trend,

said communications/projects

manager Annie Hill, in Priority

One’s latest newsletter.

February saw a total of

$9.2 million issued for commercial

building consents,

compared with $19.7 million

in January.

Commercial building activity

is following on a boom

year, with $262 million in

commercial consents issued in

2017, up 20 percent on the

previous year.

The largest building project

consented in Tauranga in

February 2018 was a $3 million

sports pavilion at a retirement

village.

It was one of 186 building

consents issued in the

city in February worth a total

$48.9 million, according to

Priority One.

That was a 32 percent drop

in the dollar value of consents

issued in January, which

reached $71.7 million, but a 10

percent rise in the total number

issued.

The Western Bay of Plenty

District Council saw an

increase in its value of consents

issued - more than $27.5

million issued in the month of

February compared with $14.1

million the month before.

Hill noted that building

consents can fluctuate considerably

month-to-month.

“We have had many

instances of record highs and

lows being in consecutive

months, so I wouldn’t read

any long-term trends into just

two months’ worth of activity,”

she said.

Priority One chief executive

Nigel Tutt commented

on the Bay of Plenty’s robust

growth, including the release

by Infometrics of their growth

statistics for 2017, which

saw Tauranga becoming the

top performing city in New

Zealand across all key measures

of economic activity.

Tauranga’s GDP for the

2017 calendar year was an

unprecedented 6.6 percent.

That was the highest GDP

growth for a city in New

Zealand and well ahead of

Auckland’s 5.2 percent,

Hamilton’s 4.0 percent and

Christchurch’s 3.3 percent.

“This represents an outstanding

performance for

Tauranga.

“Western Bay district’s

growth didn’t quite reach

these heights, but it came in

at a respectable four percent

GDP growth - above the New

Zealand average of 3.6 percent,”

said Tutt.

“The underlying fundamentals

of our economy are very

strong, which bodes well for

growth in the medium term.

“Key industries such as

construction, retail and horticulture

are doing really well

and our core regional asset,

the Port of Tauranga, continues

to outperform all others

and create a real competitive

advantage in the attraction of

new business to the city.”

Tutt said that Tauranga’s

competitive advantages as a

place from which to do business

were being increasingly

realised by new businesses

who are deciding to locate

here, and that there was also

strong confidence reflected in

employment growth in existing

businesses.

“This is right across all

sectors, but particularly in

the professional services,

construction, manufacturing

and retail.”

Commercial Building Consent Summary – Tauranga City Council

(Figures in $ millions)

2008 $56.6 - $75.2 - 57%

2009 $37.5 - $19.1 - 34%

2010 $78.5 + $41.0 + 109%

2011 $70.8 - $7.7 - 10%

2012 $101.9 + $31.1 + 44%

2013 $98.0 - $3.9 - 4%

2014 $105.8 + $7.8 + 8%

2015 $197.6 + $91.8 + 87%

2016 $219.3 + $21.7 + 11%

2017 $262.2 + $42.9 + 20%

Great minds

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For information about our exceptional

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Well planned warehouse

space key to business

success


Electrical Works provides specialist

services in automation systems &

industrial & commercial electrics.

Whether you’re quite

happy with the location

of your industrial

business now but need to

improve efficiencies, or you’re

considering a move to new

premises to take your business

to the next level, you need to

consider how you can best use

the available space to streamline

your operation.

The layout of your warehouse

can directly impact the

smooth running of your business

operation. Many business

owners find themselves working

around physical inefficiencies

simply to get work done.

A practical, robust warehouse

layout should be your

starting point and sometimes,

in the quest to get a business

up and running, the fundamentals

of good design get lost.

Think of your business

space as a blank canvas and

imagine what it would take to

optimise productivity.

There are companies out

there specialising in warehouse

planning, layout and

racking but it could help you to

“see” your space more clearly

if you physically sketch out

– or create via an online programme

– a to-scale blueprint,

starting with the existing floorplan.

Freeing up floor space can

help ease congestion and create

better pathways to faster,

more cost-effective and sometimes,

safer, daily work flows.

Look at how you can go up

rather than out to maximise the

space available to you taking

into account fixed structures

(like existing columns and

portioned offices) and bearing

in mind aisles, access to doors,

turning bays etc.

You’ll need to be mindful

of the equipment you use regularly

and the clear space this

requires, your production and

workflow zones, and storage

areas.

Here are some tips to help

you on your way to a more efficient

workplace:

• Consider how thinking in

terms of m3 rather than m2

could change up the fundamentals

of your industrial

space – maximise the cube!

• Know your rack elevations,

your pallet heights and the

space required to move

product – see if there’s a

better way to make use of

the available space

• Look at vertical space and

be creative – room for a

mezzanine?

• Look carefully at pallet

density options

• Combine different types of

storage systems based on

the movement of inventory

• The Pareto principle would

state that 80% of the activity

in a warehouse comes

from 20% of the items – always

plan for the 20%

• Do you have heaps of

“dead stock” – reconsider

its role in your business

and perhaps free up space

for faster moving products

• Is there unused space

around your dock door area

that could be utilised for

storage?

• Could you decrease your

aisle widths yet still retain

good flow?

• Allow time to plan, order

and install any new system

– you want to avoid downtime

• If you’re moving to new

premises, don’t just assume

that your existing fitout

can be transferred – question

whether you could do

things more efficiently

• Plan for growth, seasonal

inventory demands, and

change of product/service –

build in some flexibility

• You’ll need to comply with

current building codes and

standards so seek professional

advice before you

undertake any major reconfiguration

– fire standards

are the key ones to bear in

mind here

www.bayleys.co.nz/work

place/articles/insights

We support the smartest businesses in the Bay & Beyond with:

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We've recently moved to our new purpose built workshop and office

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To discuss your electrical needs call us on: 029 293 2945

or drop in and see us at: Electrical Works Ltd

Unit 5, 90 Whakakake Street, Tauriko, Tauranga 3171

info@electricalworks.co.nz

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We understand that to maximise the return on your property you need:

Professional property management A business partner that understands your views and goals

Jan Cooney

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B 07 579 0609 M 027 408 9339

jan.cooney@bayleystauranga.co.nz

Brodie Thomas

Commercial Property Manager

B 07 579 0608 M 027 746 9218

brodie.thomas@bayleystauranga.co.nz

Becky Jefferson

Commercial Property Management Asst.

B 07 579 0614

becky.jefferson@bayleystauranga.co.nz


X


BWS launches its building

cleaning service in the BOP

BWS (Building Wash Services) is expanding

from its successful Auckland base and has

opened an office in Tauranga to service

growing client demand in the Bay of Plenty.

“It was my wife Nicola

who was the catalyst for

us establishing BWS in

2009,” says Managing Director

Simon Green.

“Feeling Nicola was worth

more than she was then getting

paid, we started looking

at franchise opportunities. A

house washing franchise that

caught our eye got us thinking

about the opportunities in

focusing on washing commercial

and industrial buildings.”

With a background in commercial

real estate, Simon

knew the importance to a business

of a clean building.

He was also well aware of

how costly and difficult building

washing had become since

Health & Safety Regulations

banned long extension ladders

and other dangerous access

methods. The innovative idea

that gave BWS the competitive

edge to propel it to market

leader in Auckland is a

custom-built, truck-mounted

cherry-picker boom.

Simon says the attraction

of starting the business came

from the knowledge that businesses

take pride in having

clean buildings, as well as the

recurring income driven by

warranties requiring regular

exterior surfaces washing.

“As did assurances from

my larger institutional clients

of the untapped business

potential for a building washing

service fully complying

with health and safety regulations

through using better

methods than pricey and

time-consuming scaffolding,”

recalls Simon..

“We saw solving that problem

would give us a ‘gold

standard’ competitive edge.”

BWS’ boom truck is fully

customised and fitted out

with pumps, water heater and

two high pressure extending

wands. Custom-built for BWS

by Snorkel - a world leader

in aerial work platforms - the

cherry-picker gives the BWS

team a 16-metre reach. That’s

the average height of a five

storey building and taller than

most big-box retail outlets.

General Manager Gael

Gordon, who has a background

in business ownership

and corporate management,

was appointed to her new role

in 2016 as part of Simon and

Nicola restructuring BWS into

a highly professional, ethical

and transparent operation.

“We’ve committed to further

expansion and we’ve got

clients ready and waiting for

BWS in urban areas all over

PropertyLine

Out Now!

The latest commercial property

news and opinion from PMG -

Tauranga’s award winning local

property funds managers.

Read online and subscribe for free at:

www.propertymgr.co.nz

Simon Green: ‘We’re a market leader

in Auckland and ready to expand’

the country,” explains Gael.

“We have a wide network of

connections to leverage work.”

Essentially, BWS takes the

hassle out of keeping buildings

clean, says Simon.

“First impressions count –

and your building is no exception.

But we know keeping

up with the cleaning requires

more than a sunny day, a ladder,

and the garden hose.

In late December the elected

members of Tauranga City

Council voted to approve

two proposed changes to the

way rates are levied on commercial

and industrial ratepayers

in the city.

The council’s proposal

includes the introduction of a

rates differential between commercial

and residential properties

over the next three years.

If ratified by the council, it will

result in the increase of rates

for commercial, industrial and

retail properties located in the

Tauranga area (including suburban

areas).

For some commercial

properties it may mean a rate

increase of from 35 percent, to

as high as 92 percent by 2021.

Born and bred in Tauranga,

Property Managers Group

(PMG) is one of New

Zealand’s largest and most preferred

unlisted, property and

funds managers and has been

investing in property, people,

tenants and the Bay of Plenty

community for over 25 years.

PMG chief executive Scott

McKenzie acknowledges the

Bay of Plenty is experiencing

strong growth which is placing

pressure on infrastructure and

how it is funded.

He says while the group

is supportive of an equitable

tax collection across business

and residential ratepayers, the

proposed increase, to fund

regional infrastructure and

“Enlisting BWS means

your building is taken care of,

so you can get on with other

more pressing things. We’ll

clean all surfaces – roofs, windows,

and walls – as well as

gutters and downpipes. No

area goes untreated.

“And if you’re not totally

satisfied with any aspect of

our work, we’ll come back and

make it right.”

PMG Opinion: Opposed

to proposed Tauranga

rates differential

growing administration overheads,

disproportionately burdens

businesses and commercial

property owners and is not

acceptable.

“The last thing we would

want to see is businesses dialling

back their investment into

the region due to growing

occupancy costs and perceivably

unclear benefits,” says

McKenzie.

The last thing we

would want to see is

businesses dialling

back their investment

into the region due to

growing occupancy

costs and perceivably

unclear benefits.”

– Scott McKenzie.

“We favour a targeted rating

system where those who

pay receive the benefit, this

works well in many other

regions such as the Waikato.

“PMG is the manager of

a number of properties in the

Tauranga region, which are

home to over 100 tenants. We

take our role as manager very

seriously and pride ourselves

on working in support of local

businesses (our tenants) to help

them thrive. Hence, on behalf

of our property owners, investors

and tenants we are formally

opposing the Council’s

proposed rates differential.”

PMG has sought feedback

on the proposal from its tenants

and is in the process of

preparing a public submission,

which it will submit to the

council in mid-April.

The proposal for a rates differential

is not a new concept.

The Property Council (formerly

BOMA) successfully fought

against a similar proposal in

Tauranga 15-20 years ago.

Other New Zealand cities

currently have a differential

rates, but are in the process

of reducing or removing them

due to the inequitable burden it

places on businesses.

“We welcome and encourage

local Tauranga businesses

which will be affected by

the rates increase to complete

a submission to the Council

by April 16, and ensure

their voices are heard,” says

McKenzie.

PMG advises that businesses

can complete their submissions

by printing the consultation

form here: https://www.

tauranga.govt.nz/Portals/0/

data/council/long_term_

plans/2018_2028/files/ltp_

consultation_document.pdf

WAIKATO NEWS


Sixty year project to link city

ends at intersection

Earthworks have begun ahead of a likely

green light in June for completion of

Hamilton’s ring road.

By RICHARD WALKER

The final 400 metre stage

of the arterial route will

see Wairere Drive connect

with Cobham Drive to

conclude a remarkable journey

that has been more than 60

years in the making.

The go-ahead for the final

stage, south of Cambridge

Road, has Hamilton City Council

support and is all but certain

once the 10-Year Plan is complete.

That’s partly because the

NZ Transport Agency will fund

more than its customary 51

percent of the project, in recognition

of its value to the state

highway network.

Council’s city development

manager Andrew Parsons says

the Transport Agency will contribute

$18m to the partnership

project.

The intersection will have

multiple on and off-ramps and

walking and cycling paths, and

will see Cobham Drive raised

to allow Wairere Drive to pass

under it. It is future-proofed to

connect with proposed roading

networks south of the city.

Meanwhile, the council

has been using the tail end of

summer to get major earthworks

done on the south side of

Cobham Drive.

New stormwater pipes will

be drilled and jacked under

Cobham Drive, and there will

also be some land recontouring.

Completion of the final

piece in the ring road puzzle is

“critical” for the city to make it

more efficient and safer to get

around, and to support future

growth, said Parsons.

If the full project gets council

approval, the construction

project will go out to tender in

time for a summer start.

“It means the main contrac-

Traffic flowing over the newly four-laned

Pukete Bridge in October 2013.

tor would turn up on site with

it basically prepared for them,”

Parsons said.

It will take more than one

summer to complete, with finish

date at least a couple of

years off, but when Wairere

Drive reaches Cobham Drive,

the city will have a 24 kilometre

circuit around the city.

The full route takes in Wairere

Drive to the east, Cobham

Drive to the south and the SH1

corridor on the west.

It can be traced to a grand

plan for a motorway from

Auckland to Hamilton which

was touted as far back as the

1950s. Work began north of

Hamilton in the early 1970s but

was soon brought to a halt by

the oil crisis. The land that was

ultimately to become the Fairview

Downs section of the ring

road, and which had been intended

as part of the motorway,

lay as a green strip of pasture

for the intervening decades.

Planners were concerned

After decades

of planning and

development, there

remains just the final

400 metre link to

complete, along with

future connections

to the Waikato

expressway.

Construction is set to begin on the section from

Cambridge Road to Cobham Drive. Photo: Mark Purdom.

not just with the proposed motorway

but with its links to the

growing city’s arterial routes.

One milestone arrived at the

end of the 1960s. The Hamilton

Transportation Study laid

down a blueprint for roading

in the city that was to prove remarkably

resilient. It included

a network of arterial routes that

were to link to the motorway.

Corridors were identified and

protected that made the future

road building possible.

Much of the recent development

has been on the eastern

side of the river. The western

arterial route was laid down

in earlier decades, particularly

after the Second World War.

Many of those roads were developed

with limited access,

and all were built wide enough

to allow for four lanes of traffic

and are now part of the nearly

completed ring road.

The first major speed bump

had been the oil crisis in the

1970s. In 1984, the developing

ring road hit its second speed

bump. It was played out on the

pages of the Waikato Times.

“Principal condemns highway”

was the headline which

greeted the newspaper’s readers

on October 8, 1984. Plans

for a temporary state highway

in Hamilton’s eastern suburbs

looked set to “spark an

uprising”, according to the

newspaper. The temporary

highway was intended for the

corridor formed by Hukanui

Road, Peachgrove Road and

Galloway Street, as plans for

a Taupiri-Rototuna link were

revived. Opponents pointed

out the route took in several

schools, rest homes, shopping

centres and two sets of doctors’

rooms.

Hamilton Residents’ Council

president Martin Gallagher

chaired a public meeting

at Fairfield Intermediate in

opposition to the plans. It was

packed with more than 500

people, some jammed against

the walls and some sitting on

the floor. They were described

by the Waikato Times as a

“heckling, jeering crowd”.

Just over a week later, on

October 17, following a further

protest and the presentation

of a 10,410 signature petition,

the City Council fell into line.

It resolved to tell the National

Roads Board that it supported

the Taupiri link and an eastern

arterial bypass but that it also

supported local opposition to

the proposed staging of the

link and temporary use of city

streets as a highway.

It marked the beginning of a

new approach to road planning

in Hamilton. By April 1986, a

discussion paper prepared as

part of the Hamilton Arterial

Roading Study referred to the

need to take the public along.

When Pukete Bridge, a key

element in the ring road, was

built across the Waikato River

in the mid-1990s, the public

was involved through articles

in local media and consultation

meetings. The city’s sixth

traffic bridge was opened on

October 20, 1996. On that day,

up to 15,000 swarmed across

the bridge by foot before it was

opened for traffic at 5.15pm.

It was in stark contrast to the

opening, 33 years earlier, of the

ring road’s other link across the

river, Cobham Bridge. That occasion,

on June 29, 1963, was

marked by pomp and circumstance,

with dignitaries seated

on a dais and a brass band

playing.

Once Pukete Bridge was

opened, there was gradual development

of the route through

GT Civil contracts manager Nathan Thomas, Hamilton deputy mayor Martin Gallagher

and council city development manager Andrew Parsons look at earthworks behind the

site of the new Wairere Drive/Cobham Drive intersection.

to Tramway Road.

A significant staging post

was reached in October 2012,

with the opening of the Fairview

Downs section of Wairere

Drive at the same time that

Pukete Bridge was being fourlaned,

part of an $84 million

project, at the time the council’s

largest ever. It had been

enabled by NZTA paying the

full amount up front, with the

council paying back its 49 percent

share over several years.

Still ahead of the council

and its contractor, Downer,

were several linked stretches

that would carry traffic all the

way to Cambridge Road.

For the following stages,

the designers had to allow for

a green belt running along the

eastern side of the route, restricting

the road to two lanes

in places. The earliest plan,

for a motorway, would have

seen the green belt eaten up

by tarmac, but the intervening

years had seen a fundamental

change, with the ring road serving

to move traffic around the

city, and the expressway acting

as a bypass.

Progress was rapid on the

remaining sections of Wairere

Drive. The section from

Ruakura Road to Clyde Street

opened in May 2014 and the

section from Clyde Street to

Cambridge Road quickly followed,

opening in early September.

Meanwhile, Downer

also four-laned the 550 metre

section from River Road to

Resolution Drive.

After decades of planning

and development, there remains

just the final 400 metre

link to complete, along with future

connections to the Waikato

expressway.

Gallagher, now deputy

mayor, said he’s delighted to be

part of a council that has voted

for the completion of the route

but added there’s still work to

be done, particularly when it

comes to getting heavy traffic

off residential streets.

He said when he campaigned

back in 1984, he hadn’t

appreciated how much Hamilton’s

population and private car

ownership would grow, along

with housing density.

“All of those factors place

incredible extra pressure on our

transport network,” he said.

Ring road Facebook

page won awards

Almost six months into the Fairview

Downs section of the ring road project,

in June 2011, the council set up a Facebook

page (https://www.facebook.com/HamiltonRingRoad)

to engage with residents.

The page was run by Brandy Smith from

Downer, and she has a knack for engaging her

readers. In between posts giving roadworks

updates, including notification of closures, she

also used the page to cheer on the likes of the

Chiefs, as well as urging driver safety and answering

reader questions. The page had more

than 2000 likes at any one time, and from the

city council’s point of view was an overwhelming

success with its ability to keep residents in

the picture.

Its success was recognised when the project

won the ''Best Use of Social Media in Local

Government'' award at the Association of

Local Government Information Management

(ALGIM ) annual conference in May 2013.

What does it take to run a successful social

media page?

Brandy says she had no training. “I just did

what felt right. I’ve made bad calls along the

way but have made many more good ones. It’s

still a learning journey, that’s for sure.

“You need to connect on a personal level,

not a robotic one, be professional but relaxed

and it is important not to engage in any negativity

or online arguments – there’s a time

and place and this isn’t it. It’s also important

to have a policy in place for when things do

“As a young man as president

of the Residents’ Council,

I probably didn't reflect strongly

enough on the need for the

public transport side of that. I

thought that just doing the ring

road would solve the problem

of taking traffic and heavy

trucks off our residential streets

but I now realise it's only one

part of the equation.”

He welcomes the link the

new overpass will create between

Hamilton Gardens and

the eastern town belt, but said

there is still work to do to make

sure the land titles get rejoined

with the rest of the reserve and

avoid piecemeal development.

Meanwhile, Dave Macpherson,

chair of the council Growth

and Infrastructure Committee,

said he was “amazed” when he

got on to council to see that the

whole route for the ring road

was already in place.

“I can't think of another

council that would have done

that. I think we're unique - we

didn't have to bowl a single

house to put that ring road

through.”

Brandy Smith from Downer who ran the

award winning Ring Road Facebook page.

get negative. Most people just want to be heard,

you need to put yourselves in their shoes and

be willing to acknowledge their complaints.

Sometimes nothing can be done but in many

cases something can. You have to listen to all

feedback, good or bad.”

Brandy signed off this year, pointing readers

to the Hamilton City Council Facebook page

for future ring road updates. She wrote her final

post, with characteristic warmth, at 10.59

on February 21: “This page is signing off but

it’s been a great ride with you all. Drive safe

Hamilton! ~B”


CONFERENCE, EVENTS AND VENUES



Approaching BOP

tourism as a

connected region

Tourism Bay of Plenty recently reported a $1 billion spend in

Coastal Bay of Plenty (excluding Rotorua) last year. Meanwhile,

Rotorua reported around $800 million in total tourist spending

in 2017.

Tauranga’s newest Conference Centre, ‘The Deck at Papamoa

Beach’ is set in the heart of 16 acres of park-like Resort.

As reported in this month’s

cover story, Tourism

Bay of Plenty Chief

Executive Officer Kristin

Dunne says the organisation

is seeking increased council

funding for a planned shift

towards a destination management

approach to the sector.

That is the coordinated management

of all the elements

that make up a region, she said.

“It is the key to controlling

tourism’s environmental

impacts and preserving the

region’s unique identity.”

Tauranga City Councillor

Max Mason says that Tourism

BOP’s new approach was

aimed at getting insights on

how to get more international

visitors who spend more and

stay longer.

“We need to work with

[other agencies] on targeting

tourism-related businesses

from around the country to set

up here and work on how we

can differentiate ourselves.”

The cruise ship market

accounts for a relatively small

portion of Tauranga’s visitors.

But it is certainly the case that

a number of them take trips

Michelle Templer. Photo/Discovery Rotorua

to other destinations, including

Hobbiton in Matamata, and

to the various attractions of

Rotorua.

Tom Worsp, consumer marketing

manager for Destination

Continued on page 22

A place to relax and focus on innovation + success.

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business moving

SPECIAL FOCUS:

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business vehicles

Book your spot in

this feature today.

For more information contact:

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pete@nmmedia.co.nz vanessa@nmmedia.co.nz


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Conference Management. Client Functions. Leadership Meetings.

Product Launches. Staff Functions. Team Building. Charity Events.

“ Events play an instrumental role in

boosting team culture, building &

maintaining strong customer relationships,

assisting with training & education and

bringing industries together.

So it’s critical you get it right.

We’re here to ensure you nail it!”

Contact us

for a free

consultation

Claudia West

Director/Event Manager

022 430 1435

claudia@theprojectcollective.nz

www.theprojectcollective.nz

Zeepra Lemoto

for City Council

For a city to live, work and enjoy.

From page 21

Rotorua, said that from a Bay

of Plenty perspective, for the

year ending June 2017 the

region received 147,000 cruise

ship passengers who had an

average spend of approximately

$400. They a total of $59

million to the Bay, up from

$42 million for the year end

June 2015.

“This is due to the great

work that Tourism BOP, Port

of Tauranga, and our operators

do to show our visitors

an amazing time from the

moment they disembark the

vessel,” he said.

“As far as Rotorua is concerned,

roughly 35-40 percent

of passengers choose a shore

excursion that involves a whole

or part trip to Rotorua helping

to contribute to an annual visitor

economy in Rotorua of

$814 million. And apart from

the economic contribution,

there are other benefits that

cruise offers. The majority of


Events and business

innovations like

these not only attract

visitors, but have a

positive effect on the

vibrancy and people’s

perception of the

destination.”

– Michelle Templer

port calls are mid-week. And

research tells us that cruise

passengers have a high propensity

for return visits by air.”

Rotorua Economic

Development chief executive

Michelle Templer says that

the city has worked hard to

become an attractive destina-

tion for visitors.

“Over the past three years

it’s fantastic to see new events

like Crankworx, the Ocean

Swim Series, Summer Seafood

Festival and Flochella come to

Rotorua and fit into the events

calendar, alongside already

well established and successful

events like the Tarawera Ultra,

Rotorua Marathon, Rotorua

Bike Festival and Okere Falls

Beer Fest to name just a few.

Alongside this had been the

continued innovation from the

activities and attractions sector

with new products being introduced

such as the Redwoods

Treewalk, Canopy Tours and

Motion Entertainment, with

more on the horizon.

“Events and business innovations

like these not only

attract visitors, but have a positive

effect on the vibrancy

and people’s perception of the

destination.”

By DAVID PORTER

I SUPPORT

A Museum to be a place of learning.

Council kerbside glass collection, keep Tauranga tidy.

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On the edge: White Island tourists. Photo/Denise Siviter, Tourism BOP

Events Pronto

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Events Pronto founder Moira Moroney

with lead developer Brendon Ryniker.

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The Events Pronto platform was featured

in the August/September issue

of the Bay of Plenty Business News.

In this conference and event feature we ask

co-founder Moira Moroney how the business

is progressing.

Q: Hi Moira, how has Events Pronto

been going since your last article?

It has really taken off. We have developed

a strong following here in Tauranga

and grown beyond expectation, expanding

throughout the country. It is true what they

say, hard work really does pay off and we

can’t wait to see what the future has in

store.

Q: Congratulations on your success this

far. Who is Events Pronto for and why

would they need it?

Events Pronto is for people who run workshops,

conferences, classes, fundraisers,

shows and gigs. Small businesses and

charities are able to make light work of

promoting events, managing bookings and

engaging people. The booking platform

is more than meets the eye with built in

member management, administration and

marketing tools too. Corporates and larger

training businesses often go that one step

further with our premium Booking Rooster

product.

Q: Rumour around town is you offer

your services and support to charities

for free. Is this true?

We offer full use of the complete Events

Pronto platform free for 90 days. This

includes unlimited support to help charities

achieve time savings, increased bookings

and greater community engagement. We

strongly believe charities are the hearts in

all of our communities and it is a real honour

to work alongside so many great New

Zealand Charities.

P5992Y


Latest Business Monitor survey reflects

reduced SME confidence

Confidence in the economy has fallen to its lowest level in three

years amongst New Zealand’s small-to-medium sized enterprises

(SMEs), according to the latest MYOB Business Monitor survey of

more than 1,000 business operators around the country.

By DAVID PORTER

Expectations for the economy

fell from an overall

net positive 21 percent

in the March 2017 Monitor,

to a net negative 14 percent

in the latest survey. This is

despite businesses continuing

to report strong levels of revenue

growth over the last 12

months and positive earnings

expectations for the coming

year.

But Steven Farrant, chair

of the Tauranga Chamber of

Commerce’s Small Business

Tauranga group, said he

wouldn’t equate a drop in confidence

to a risk.

“As we know there has

been significant change in the

country recently, and change

often creates uncertainty,

which can lead to owners taking

a more cautious approach

to business,” he said.

“Although SME owners

and operators are very mindful

and acutely aware of the economic

climate, there is a danger

that a pessimistic outlook

isn’t healthy or helpful. As a

result, from my experience,

SME owners/operators focus

their energy on the day job of

running their business.”

The survey said businesses

in the primary sector were most

likely to predict the economy

to decline, with over half of the

operators in the industry (52

percent) pessimistic about the

coming year. Manufacturing

and wholesale business operators

were also concerned about

a fall-off in the economy, with

41 percent expecting a decline.

Construction and trades business

operators are only slightly

more optimistic, with 38 percent

expecting the economy

to decline, while 26 percent

predict it will improve.

However, despite expressing

a significant level of concern

over the future of the

economy, 36 percent of businesses

reported an improvement

in revenue in the last

12 months, the same level as

2017. And there was only a

slight decline from the highest

level recorded in the Monitor

survey in 2016 (37 percent).

One fifth (20 percent) reported

a fall in revenue levels in the

last 12 months.

Most business operators

were also forecasting their revenue

would improve or remain

at current levels over the next

12 months, with 38 percent

expecting revenue to rise (the

same proportion as in 2017)

and 41 percent predicting their

income will remain the same.

MYOB general manager

Carolyn Luey said that

while businesses were right to

express some caution, as the

international situation in particular

is increasingly uncertain,

there was a risk that the

growing levels of pessimism

could affect the economy.

“The report … points

out the underlying

performance and

revenue expectations

within the SME sector

remain strong.”

– Steven Farrant

“The fundamentals of the

SME economy at present are

strong – businesses in general

are doing very well, and

most expect that performance

to continue over the next 12

months,” she said.

Steven Farrant: Change can

create uncertainty. Photo/Supplied

“While there are some areas

to watch – such as the decline

in manufacturing sector earnings

and lower levels of revenue

growth for the primary

sector – the overall sector is in

good shape.”

Luey said the level of

uncertainty around the policies

and direction of the new government

had been well canvassed

in recent surveys.

“But other concerns, such

as a looming international trade

war, global instability and, closer

to home, the range of new

taxes being mooted by the tax

working group – all of which

were covered during the survey

period – are likely to be factoring

into how well business operators

believe the New Zealand

economy will perform.”

Small Business Taranga’s

Farrant said it was worth

noting that SMEs could and

did adjust and adapt to market

changes quickly and often

effectively.

“The report also points out

the underlying performance

and revenue expectations

within the SME sector remain

strong,” he said. “I believe

the survey reflects a period of

change and the air of caution

that brings, but I expect our

sector to continue to perform

well over the next 12 months.”

Waikato

AgriBusinessNews

MAY ISSUE OUT FOR

NATIONAL

AGRICULTURAL

FIELDAYS

BOOK NOW

Call the team on 07 838 1333 or

email info@wbn.co.nz

24

Bay of plenty

THANK YOU TO

THE SPONSORS,

EXHIBITORS AND

VISITORS OF THE

INAUGURAL BAY OF

PLENTY/WAIKATO

BUSINESS EXPO

First on the scene

Pictures from the inaugural Bay of Plenty/Waikato Business Expo,

which was successfully launched at ASB Arena in March.

Congratulations

for embracing and supporting

this new and exciting event and a huge

thank you for your contribution in helping to

make the Business Expo a great success.

1

2

1 Tim van de Molen, MP Waikato, with Nigel Murphy and Cathy Hendry, Strategic Pay 2 Taite Smith and River Jermyn, NOW.

The purpose of the Business Expo is

to provide a platform for businesses

to showcase their offering, to enhance

and create business opportunities and

connections, and to bring additional growth to

the regions.

The energy and enthusiasm at this year’s

Expo and the positive feedback received

indicates that the Business Expo is now a

“Must Do” event in the region’s business

calendar.

We look forward to seeing you at the

next Business Expo,

Sharon Giblett and Barry Brown

Jigsaw Solutions Group Limited

3 4

3 Pete Wales, David Porter and Vanessa Lee, Bay of Plenty Business News. 4 Nick Osborne and Michelle Beaumont, Nettl.

5 6

5 Angela Thomas, KPMG. 6 Jazz Kiihfuss and Mike Everard, Giggle TV, with Nic Tarrant, Katie Baker and Amanda Fraser-Jones,

Corporate Traveller.

For sponsorship and exhibitor enquiries for

upcoming Business Expo’s, please contact

Sharon Giblett on 021 566 869 or

info@businessexpo.biz

www.businessexpo.biz

Sponsors

Supporting Partners

7 8

7 Adam Hughes and Mike Bell, Think. 8 Sharon Giblett and Barry Brown, Business Expo and Jigsaw Solutions Group,

with Tauranga Mayor Greg Brownless (centre).


Wealth Taxes

The Tax Working Group - established by the government to

examine improvements to the fairness, structure and balance of

the tax system - has released its background paper summarising

the current system and calling for submissions.

REGULATORY MATTERS

> BY GRANT NEAGLE

Grant Neagle, a director at Ingham Mora Chartered Accountants

in Tauranga, is a business advisor and tax specialist. He can be

contacted on 07- 927- 1225 or grant@inghammora.co.nz

The group, chaired by former

Minister of Finance

and Deputy Prime

Minister Sir Michael Cullen,

has excluded from its terms of

reference increasing the income

tax and GST rate, inheritance

taxes or taxing the family home

or the land under it.

But it has included consideration

of whether a more

comprehensive system of taxing

capital gains on property

(excluding the family home)

would improve the tax system.

And one tax not specifically

referred to in the terms of reference,

but one which Cullen

has nonetheless signalled is on

the table for consideration, is a

“wealth tax.”

Wealth taxes generally tax

the net wealth - ie assets less

liabilities - of a taxpayer on an

annual basis.

The attractiveness of such a

tax for the government is that

tax revenue from the tax could

start from day-one as it taxes

what a taxpayer already has.

By comparison, comprehensive

capital gains tax systems

tend to only generate tax

revenue when a taxpayer disposes

of what they have for

more than it cost them.

So it seems that, while the

government has ruled out a

capital gains tax on a person’s

home, it has not excluded the

possibility of a wealth tax

that could in fact, in principle,

include taxing the wealth represented

in a person’s home.

Internationally, wealth

taxes have lost favour over

the last 20-30 years. In 1990,

12 countries had a wealth tax;

today only five major countries

have one.

A number of those that

still do, have signalled their

intention to get rid of them or

reduce their scope.

Against this backdrop have

come renewed calls from pundits

for the adoption of wealth

taxes to address increasing

income and wealth inequality

in developed countries.

The French experience

serves as a good case study.

Introduced in 1981 by François

Mitterrand’s Socialist Party,

the French wealth tax known

as ISF or the “solidarity tax on

wealth” has been anything but

an exercise in solidarity.

The net asset threshold at

which wealth taxes apply are

typically high to catch the supposed

“wealthy”.

The French ISF as it currently

stands is an annual levy

of up to 1.5 percent on the

wealth of French residents

whose net worth exceeds

1.3million euros (approximately

NZ$2.2 million).

The French experience is

that it is often the income and

cash-poor middle-class – who

find themselves in the “wealthy”

category due to rising property

values – who are affected.

The imposition of the tax

leads to tax planning, including

making temporary gifts

and donations, and in so doing

taxpayers running the gauntlet

between the wealth tax and

France’s Gift tax.

Moreover, the tax is estimated

to have promoted the

flight of some 60,000 millionaires

from France since the

year 2000.

However, reform of the

French ISF is on the cards

So it seems that, while the government

has ruled out a capital gain tax on a

person’s home, it has not excluded the

possibility of a wealth tax that could in

fact, in principle, include taxing the wealth

represented in a person’s home.

with the current government

looking to reduce the ambit of

the tax and have it apply only

to tax real estate assets.

Given the Tax Working

Group’s intention to garner

submissions from a broadcross

section of New Zealand

society, Cullen’s reference to a

wealth tax may just be a ploy

to stoke the fervour of the New

Zealand public and so encourage

submissions.

Cullen has mooted that a

capital gains tax and wealth

tax could be the alternatives.

The cynic in me would say

that mention of a wealth tax

could just be a softener that

would make the bitter pill of

the alternative comprehensive

capital gain tax easier to swallow.

Time will tell.

The comments in this article

are of a general nature

and should not be relied on

for specific cases, where readers

should seek professional

advice.

Staying the course

I

recently came across an article

written by one of my

colleagues for a local newspaper

in January 2008 that still

has lessons for us today.

It read: “The recent share

market sell-off will have a

number of investors questioning

their investment strategy

and whether they should be

investing in the share market

at all. Now is not the time to

be selling good quality compa-

WHAT TO DO WITH YOUR MONEY

> BY BRETT BELL-BOOTH

Investment Advisor with Forsyth Barr Limited in Tauranga.

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

nies. In fact this may be a great

buying opportunity.

“While lecturing as a

21-year-old at Columbia

University the world’s greatest

investor, Warren Buffett,

quipped: “I will tell you how to

become rich. Close the doors.

Be fearful when others are

greedy. Be greedy when others

are fearful”

“The simple concept that

Buffett was alluding to was

that when the majority of

investors are driven by fear

and selling their holdings, this

is the best time to buy. Often in

fear driven markets, most businesses

are being sold at cheap

prices, even great companies.

“It was then that the true

investor was able to get a

bargain price and therefore

increase the potential for capital

gain. The lower share price

also results in a higher dividend

yield for those investors

seeking income.

“So, while the perceived

risk for investors often feels

greater because of the doom

and gloom being felt and falling

share prices, the risk is in

fact lower as the return to the

investor will be higher once

the market recovers… Good

companies will continue to

produce goods and services,

generate earnings, pay dividends

and prosper.”

Although the comments

were penned 10 years ago,

they are still relevant. In

February this year, when a

market sell-off occurred, markets

were driven by sentiment.

Conditions conducive to share

price growth (i.e. positive economic

growth, increasing corporate

profitability, low inflation,

low interest rates, low

unemployment), were present,

yet newspaper headlines were

full of doomsayers predicting

a sharemarket crash.

The doomsayers were basing

their predictions on how

high share prices were relative

to historical valuations, and

the length of time the current

bull market has run relative to

historical bull markets.

The markets were almost

looking for a reason to take

a breather, and the catalyst

appeared to be the fear of rising

interest rates in the United

States. The US market fell

almost 10 percent in a very

short time.

While it is true that many

market valuations are higher

than historical averages, and

the bull market is much longer

than in past cycles, conditions

conducive to market growth

are still intact.

Many investors realised

this, with the markets subsequently

recovering from the

February sell-off.

Markets do move in cycles,

and history can offer a guide

to future events, but the fundamentals

of investing remain

the same.

Be wary of comments of

“this time it’s different.” As

my colleague wrote a decade

ago, regardless of market conditions,

companies will continue

to produce goods and

services and generate earnings,

with the goal of creating future

growth for shareholders.

This column is general in

nature and is not personalised

investment advice. Disclosure

Statements for Forsyth Barr

Authorised Financial Advisers

are available on request and

free of charge.

Vote

Anne Pankhurst

Who stands for:

• Better transport solutions

• Investment into the city

• Unlocking the huge

investment potential

• Experience in governance

and leadership

Authorised by Anne Pankhurst,

37 Monmouth Street, Tauranga


Financing the growth

of your business

How much and what type of finance a company needs to survive

is unquestionably one of the most important aspects of business

management. It is also, in our experience, the least understood.

MONEY MATTERS

> BY MICHELLE HILL

Director and Partner at BDO Rotorua, Chartered Accountants

and Advisers. To find out more visit bdorotorua.co.nz or email

rotorua@bdo.co.nz

As a business grows it

requires more resources,

unless, of course, it

grows by means of a more

effective allocation of its existing

resources.

However, even if this is the

case, further growth will ultimately

require more resources.

The money used to finance

a business comes from two

sources, generally referred to

as equity and debt.

Equity is the capital injected

into the business by its

owners and consists not only

of the initial and any subsequent

capital invested, but also

retained profits — that is, profits

earned by the business and

reinvested in it, rather than

being withdrawn.

Debt capital refers to borrowings

made by the business

and includes not only long and

short-term cash loans obtained

from banks or finance compa-

nies, but also short-term credit

provided by suppliers of goods

and services to the business.

Debt also includes finance

provided by the way of leases

or hire purchase to acquire

plant and equipment.

While it is possible for a

business to be financed totally

by means of debt, this is an

extremely risky structure.

Unless the business enjoys

very high margins and has

excellent cash flow, any

decline in sales could mean

an inability to service the debt

and therefore, the end of the

business.

At the other extreme, a

business could be financed

totally by equity.

While this eliminates financial

risk, it also reduces the

return that the owners of the

business receive from their

investment.

So we have established that

It is also important

to understand that the

majority of businesses

that experience

rapid growth can

find themselves

confronted by a cash

crisis.

as a business grows, it needs

more resources and therefore,

more capital.

But it’s important to understand

that the availability of

capital for any business is limited,

and it therefore follows

that the growth rate a business

can sustain and still survive is

also limited.

In other words, a business

that grows too quickly will

fail, and a business that grows

too slowly will deny its owners

of potential returns.

When it comes to business

growth, the fundamental issues

that determine how quickly a

business can grow are:

• The extent of its net profit

and hence, market demand

and cost structure.

• The willingness of the

owners of the business

to reinvest after tax profit

to finance the additional

resources.

• The availability of debt

finance, which depends on

the capacity of the business

to service the debt, and the

security that can be offered

to lenders.

Many small to medium-sized

business owners believe that

banks have an obligation to

lend them unlimited amounts

of money - simply because they

have excellent profit potential.

However, banks are often

reluctant to make unlimited

funds available. In some cases,

this is actually a blessing in

disguise.

Unfortunately, this reluctance

can also mean that some

extremely well-managed businesses,

which have excellent

potential, are denied access to

much needed funds.

It is also important to understand

that the majority of businesses

that experience rapid

growth can find themselves

confronted by a cash crisis.

It is essential when you are

planning a high growth strategy

to ensure you have control

over your finances, including

receivables, stock, work in

progress and margins.

Additionally, you should

give careful consideration to

monitoring your cash requirements,

and take action to

restrain your growth rate the

moment you see signs that

your cash flow is tightening.

In order to determine how

fast you can grow your business,

you need to look at your

projected cash flow.

You can only grow your

business as fast as your cash

flow allows.

Once a business has

reached a level of sales where

good profits are being made

and its rate of growth slows

down, then comes the time to

harvest the cash flow.

TERMS

OF TRADE

CREDIT

CHECKING /

MONITORING

DEBT

COLLECTION

Nick from

EC Credit Control

is the Bay of

Plentys leading

debt prevention

expert.

CREDIT

MANAGEMENT

TRAINING

FOR A NO OBLIGATION MEETING CALL OR EMAIL NICK TODAY

nick.kerr@eccreditcontrol.co.nz | P: 027 713 2128

0800 EC GROUP | www.eccreditcontrol.co.nz

Meet the lawyers who do things differently

It’s been a year since The Law Shop

took over Stratagem Lawyers in Mount

Maunganui and opened their Tauranga

office in Greerton. It’s been a fantastic

twelve months for The Law Shop’s Partners

Paula Lines, Stephanie Northey, and

Sarsha Tyrrell, as their business continues

to thrive. They now have a team of 15,

working in both Rotorua and Tauranga.

Their office on 1262

Cameron Road in

Greerton is getting too

small for the team, so they are

in the process of moving again.

Although the old building has

character, it’s too hot in summer

and hard to keep warm in

the winter months.

We’re down to earth

and informal, and

we genuinely care

about our clients. We

pride ourselves on

delivering on time,

every time, and it’s

important to us to

provide legal advice

without the jargon,

and we do it at a fair

price

“We are getting ready to

move across the road to a larger

and more comfortable office

space. All our Tauranga business

will be done from there

when we move. This means

we’ll close our small office

at the Mount as well, but the

Rotorua office stays as is,”

Paula says.

The Law Shop’s all-female

team is big on offering personable

advice and legal support

to their clients, and they make

sure to talk to people in everyday

terms. The three Directors

work extremely well together,

and they have their individual

strengths and expertise.

Paula’s areas of work

include the formation of and

administration of trusts, relationship

property agreements,

commercial and business

law, subdivisions and general

law. Stephanie, who runs the

Rotorua office, specialises in

family law, mental health and

employment law. Sarsha is an

expert at helping families with

legal issues including domestic

violence, childcare arrangements

and Child Youth &

From left to right: Sarsha Tyrrell, Stephanie Northey and Paula Lines.

Family matters (now Oranga

Tamariki).

“We’re down to earth and

informal, and we genuinely

care about our clients. We

pride ourselves on delivering

on time, every time, and it’s

important to us to provide legal

advice without the jargon,

and we do it at a fair price,”

Paula says. She explains that

the team is approachable and

flexible and that they are not

nine-to-five people.

“We don’t apply a one size

fits all approach to our work,

and we encourage our clients

to communicate with us in a

way that works best for them.

We also know that being able

to see us close to your home or

workplace is important, so we

are happy to travel and come

to you, even outside “normal”

working hours if that fits better

with your timeframes,”

she says.

If you are buying or selling

a property, setting up a

business or if you need a Will,

a prenup, or legal assistance

around other matters, get in

touch with the friendly team

at The Law Shop. They will

talk you through all the details

in normal English and will

give you expert advice that fits

you and your unique situation.

Feel free to contact them anytime,

and start with an email to

team@thelawshop.co.nz

Our branches include:

Rotorua - 1268 Arawa Street,

Rotorua.

Tauranga - 1262 Cameron

Road, Greerton.

STEPHANIE NORTHEY

LL.B | Director

Friendly legal advice

that won’t leave you

drowning in jargon

PAULA LINES

LL.B | Director

SARSHA TYRRELL

LL.B | Director

For over 30 years, The Law Shop has been giving clear advice

for a fair price to individuals, small and medium businesses

in the Bay of Plenty.

If your business needs advice on Agreements, Buying and Selling,

Terms of Trade, Structure and Succession Planning, Banking,

Leasing, Debt Collection, Franchising and Employment Services

then we’re the team for you.

Proudly serving our community from our offices

in Rotorua and Tauranga.

Call us on 0800 LAW SHOP

or visit www.thelawshop.co.nz

ROTORUA

1268 Arawa St

Rotorua

TAURANGA

1262 Cameron Rd

Greerton

Lawyers for everyday people

Bay of Plenty Business News March/April 2018

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