Bay of Plenty Business News May/June 2018

Bay of plenty
MAY/JUNE 2018 VOLUME 3: ISSUE 5 WWW.BOPBUSINESSNEWS.CO.NZ FACEBOOK.COM/BOPBUSINESSNEWS
Made
in the bay
the region’s innovative
manufacturers are
extending their range
Silent revolution: Sean Kelly directs the crew at the official launch
of his pioneering all-electric boat prototype. Photo/Lawrence Daly
By DAVID PORTER
The Bay of Plenty’s reputation
as a haven for
innovative manufacturing
was clearly evident during
a recent day on Tauranga
Harbour when Pacific Seven
founder Sean Kelly successfully
launched New Zealand’s
first purpose-designed and
built, fully electric boat.
With a ballast load of Tesla
car batteries, and a 147 hp
electric engine, the six metre
prototype can produce a - very
quiet - top speed of 25 knots.
Kelly aims to manufacture
the boat from his base
at Tauranga’s new Marine
Precinct, but acknowledged it
would take some time to turn
a profit from the venture. (see
story on page 3)
“It’s the research and
development that costs a lot
of money,” he said. “New
Zealand needs innovators.”
The Electric Boat Company
is just one of a variety of businesses
that are producing innovative
products and services
in the Bay of Plenty. They
include longtime manufacturing
export success stories like
Trimax Mowing Systems and
Puma Darts, and established
agri businesses like Mossops
Honey (see page 6).
Other examples are Jenkins
Group, which has just partnered
with US company Van
Doren Sales, Inc. to globally
launch the Robotics Plus
apple packer (see page 5),
and successful hi-tech startup
SwipedOn, which now generates
90 percent of its revenues
from offshore. (see page 3)
Priority One chief executive
Nigel Tutt says the Western
Bay of Plenty is a strong destination
for manufacturers.
We have a number
of highly innovative,
successful
manufacturers in
our region who are
taking on the world.
– Nigel Tutt,
Priority One
“Manufacturing is a very
important industry to us; we
have a number of highly innovative,
successful manufacturers
in our region who are
taking on the world,” he said.
“Key infrastructure such as
the Port of Tauranga makes us
a great place for exporters, commercial
land availability is good,
and our popularity as a destination
helps to attract good staff.”
According to Infometrics
data from Priority One, in
2016-17, manufacturing was
the highest contributing sector
to Western Bay GDP at 9.2
percent. The sector also made
up 9.1 percent of filled jobs
- with job growth of four percent
between 2016 and 2017.
Tauranga Chamber of
Commerce chief executive
Stan Gregec described the
Western Bay as “an ideal location”
for industrial and exporting
businesses.
“We have easy proximity
to the port and to strategic
transport networks,” he said.
“We’re seeing more new businesses
set up or locate here for
these reasons.”
In the following pages, we
profile a small selection of the
many innovative companies
who are making it in the Bay.
rotorua
CBD needs funding
for future
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tauranga
TCC appoints new
chief executive
P8
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Charity sells down
Tilt Renewables stake
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COVER STORY
BAY OF PLENTY BUSINESS NEWS May/June 2018 3
Floating a powerful
new concept
The idea for an all-electric boat came into Sean Kelly’s head
three years ago, planning began a year later, and he’s spent the
past 12 months building the prototype.
Silent Running: Sea trials on Tauranga
Harbour. Photo/Lawrence Daly.
By DAVID PORTER
Kelly, founder of Pacific
7, said he was realistic
about the immediate
commercial prospects, because
the concept was not yet at a
price point that made perfect
economic sense.
The prototype is a six
metre Herley Boats hull, which
was the biggest size Kelly was
willing to live with in terms
of financial risk to prove the
concept.
He has spent more than
$200,000 getting the first boat
to the water and said he doubted
he could recover more than
about half if he tried to sell the
prototype.
“People that are going to buy
one of these are going to say
that’s what they want,” he said.
Upfront costs are estimated
to be about double a conventionally
powered boat, but
Kelly said the payback point
is at six-and-a-half years, with
battery replacement expected
to be at about 11 years.
“So over the 30 year life of
the boat there is a huge saving
in cost.”
Kelly believes there is considerable
potential in the concept.
He will initially be targeting
lake, river and aquaculture
uses, with clients like DOC,
regional councils, Niwa and
the owners of fish and shellfish
farms.
“You can drive it around
your oyster farm with some
real power, not just a trolling
motor type arrangement,” he
said. “You will be able to tow,
push things, power hydraulic
systems, leaving zero emissions
in the water.
“If you do that at the
moment with any kind of combustion
engine, you are leaving
a residue from the combustion
process in the water.”
The innovative design
draws in part for its hull shape
from the bows on Native
American canoes.
The concept was Kelly’s
with the working design drawn
up by naval architect Nick Herd,
who co-owns Herley boats with
Kelly. Team member Harrie
Alma helped with the final stages
to bring Kelly’s dream to life.
Kelly is the former owner
of Western Work Boats, which
was based at the old Marine
Precinct, and he expects to get
title soon to his new spot at
the reconfigured Sulphur Point
waterfront.
Once there, he plans to
begin manufacturing battery-powered
boats and converting
conventionally powered
boats through the Electric
Boats Ltd company.
“There has been a lot of
interest from Australia,” he said.
The power train installation
Tauranga tech company
SwipedOn’s innovative
visitor management app
has been making major gains
and is entering a new phase
of growth by expanding its
operation in the US.
As well, the company was
delighted to be named as a
finalist in two categories in
the ExportNZ BOP awards,
with results to be announced
in late June.
SwipedOn is a softwareas-a-service
company, with
a cloud-based iPad application
that offers a sleek visitor
management system
that replaces outdated paper
visitor books.
Company founder and
chief executive Hadleigh Ford
said that he and the team were
over the moon that their hard
work had been recognised in
the Export Awards.
is by Electric Boats Co. The
147 hp electric engine can produce
up to 25 knots. The battery
would last about an hour
SwipedOn expands US operations
at the top speed of 25 knots,
but would run for a working
day at lower cruising speeds.
There is an on-board re-charger
for overnight charging. The
lithium ion batteries can also
be fast charged in under an
hour at a charging station.
“SwipedOn has grown
rapidly in the last couple of
years, with 90 percent of our
company’s revenue being
derived offshore,” he said,
adding that over the last two
years the business had grown
to reach clients in more than
2000 cities worldwide.
“Being selected as one of
the awards finalists demonstrates
that innovative New
Zealand businesses don’t
need to be based in a major
city centre to be successful
on the world stage.”
Ford said it was an exciting
time for Switched on, with
an expanding client base and
team, with five new full-time
staff recently employed to
keep up with company growth.
As of next month,
SwipedOn will be opening
its first US office in
Boulder, Colorado to service
the growing number of
American clients.
SwipedOn was founded
in 2013 by Ford, who at the
time was working as a harbour
pilot, steering some of
the largest ships ever to meet
New Zealand shores into our
ports and aunched the current
app in 2016.
SwipedOn has exceeded
$1 million in annual recurring
revenue, with a further
$1 million in capital raised.
As recently reported in
Bay of Plenty Business News,
Callaghan Innovation will support
SwipedOn with a research
and development grant that
will be 20 percent of eligible
spend for three years,up to a
total of $15m dollars.
SwipedOn was founded
in 2013 by Ford, who at the
time was working as a harbour
pilot, steering some of
the largest ships ever to enter
New Zealand waters into our
ports. He launched the current
SwipedOn app in 2016.
SwipedOn was also a
finalist in the NZ Hi-Tech
Awards for Best Hi-Tech
Startup Company of the
Year. Winners were to be
announced after this issue
was published.
– By DAVID PORTER
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4 BAY OF PLENTY BUSINESS NEWS May/June 2018
CONTACT
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David Porter
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From the editor
The recently launched
all-electric boat featured
on our cover is just one
example of the variety of businesses
that are producing innovative
products and services in
the Bay of Plenty.
The boat - the brainchild of
Pacific 7’s Sean Kelly, plans to
set up its manufacturing arm
at the recently re-configured
Marine Precinct.
The month’s Bay of Plenty
Business News cover story also
includes profiles of new developments
from a range of other
companies based in the Bay.
As Priority One chief executive
Nigel Tutt notes, the subregion
is a strong destination
for manufacturers. As he says:
“We have a number of highly
innovative, successful manufacturers
in our region who are
taking on the world.”
Innovation is also a feature
of our coverage of forest
research institute Scion’s
recently announced plans to
build an innovation hub in the
centre of its Rotorua campus.
A $2.5 million grant from
the Bay of Plenty Regional
Council’s regional infrastructure
fund helped get the multi-million
dollar project underway,
which will become the
focal point of the campus.
The innovation hub is part
of a broader campus redevelopment
that will foster innovation
in the forestry, manufacturing,
energy and sustainable
land-use sectors, says Scion
chief executive Julian Elder.
The entire redevelopment
programme will cost an estimated
$18 million.
In addition to the hub, the
programme includes upgrades
of wood processing workshops
and laboratories plus pilotplant
facilities.
It will also include a new
landscape plan for the 112-hectare
site, aimed at creating a
more cohesive environment.
The issue also includes a
feature on the lobbying around
Rotorua’s CBD development.
Local business leaders have
submitted a proposal to the
Rotorua Lakes Council’s Long
Term Plan 2018-28 (LTP),
aimed at seeking further funding
to revitalise the CBD.
One of the document’s
architects, Gregg Brown, says
that while much had been done
in the past couple of years to
enhance Rotorua’s CBD, little
appears to have been budgeted
for additional planning to take
things forward.
David Porter
While improvements have
been made, not enough has
been done - especially to counter
the challenges posed by
online and big box retailing.
The CBD needs to be customised
in order to be relevant for
future trends, says Brown.
And finally, a reminder that
the 2018 Zespri Bay of Plenty
ExportNZ Awards are coming
up.
The judges have named a
varied range of 12 finalists
across four categories.
The winners, plus the surprise
annual recipient of the
ExportNZ Service to Export
Award, will be named at a
Mystery-themed gala dinner
on Friday, 22 June, at ASB
Baypark, Tauranga.
Tauranga businesses
stand together…
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like Julie Hayes from BEENZ, Katikati
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
Everyone is welcome to attend Chamber events.
Special pricing for Chamber/SBT members. Some training events may
be eligible for partial funding. For more information and to find out how the
Chamber can support your business call our Bizhelp line on 0800 249 482
or email bizhelp@tauranga.org.nz
All events subject to change.
For latest details and to register, visit:
www.tauranga.org.nz

COVER STORY
BAY OF PLENTY BUSINESS NEWS May/June 2018 5
Bay and US companies partner
for global robotics packer launch
Tauranga company Jenkins Freshpac
Systems recently launched the hi-tech
automated robotic apple packer, developed
by fellow Bay of Plenty company Robotics
Plus, into the New Zealand and international
market.
By DAVID PORTER
Jenkins Freshpac Systems
- a subsidiary of Jenkins
Group - has the licence
to distribute the technology
developed by Robotics Plus
in New Zealand. Perhaps
more significantly, the parent
company has formed a
new joint venture, GlobalPac
Technologies, with US-based
Van Doren Sales, Inc., to sell the
packer into the global market.
Jenkins Freshpacs general
manager Jamie Lunam said the
company had searched all over
the world for innovative solutions
for the increasing challenges
faced by its horticulture
clients.
“And we found the automated
technology for apple
growers right here in our own
backyard,” he said.
The apple packer, which
identifies and places the apples
in their trays, has the ability
to safely handle up to 120
fruit per minute - the equivalent
of two people. Three
Robotics Plus apple packers
have already been installed in
commercial post-harvest operators
in New Zealand and the
US. The robotic apple packer
also has the ability to be utilised
in other produce packing
applications.
Jenkins Group is a 136-yearold
family-owned Aucklandbased
company with a strong
presence throughout the fresh
produce sector providing endto-end
packing and labelling
solutions, and has a subsidiary
in Australia. The company set
up Jenkins Freshpac Systems
in a purpose-built facility in
Tauriko in 2013.
The robotic packer aims to
solve the growing problem of
labour shortages in the horticulture
sector, which has
become even more marked this
year in the apple and kiwifruit
sectors with shortages of hundreds
of workers.
“There is a national labour
shortage in the sector at the
most critical stages of the season,
and it’s going to get worse.
We’re delivering a solution to
the problem of ensuring New
Zealand produce reaches key
export and local markets.”
The US apple sector, which
produces an estimated 4.7 million
tonnes annually, is seen by
Jenkins Group and Robotics
Plus as a potentially huge market,
with an estimated 70-plus
packhouses in the US of sufficient
scale to consider a robotic
apple packer. Van Doren
Sales, Inc. is headquartered
in Washington State, which
accounts for 66 percent of US
apple production.
However, Jenkins Freshpac
Delivering a solution: Jamie Lunam, Jenkins Freshpac Systems and Alistair
Scarfe, Robotics Plus. (Below left) The robotics apple packer. Photos/Supplied.
is focusing on developing
the market in New Zealand,
which currently produces
approximately 574,000 tonnes
of apples annually, with new
plantings coming on every year.
Robotics Plus owner Steve
Saunders says he and Dr
Alistair Scarfe, the company’s
co-founder and chief technology
officer, have spent almost
eight years developing a range
of robotics products for the
horticultural processing sector,
and nurturing key talent.
“We’ve spent a lot of time
testing our apple packer and
are now comfortable in saying
the technology is reliable and
affordable and we can take
it to the marketplace,” said
Saunders.
“It’s a logical fit for us to
work with another local company
that has a great reputation.
This is another really
great example of how the Bay
of Plenty community can collaborate
to take an innovative
product to market. We’re
also excited about working
with Van Doren Sales to take
the technology into the USA.
Van Doren services a huge
chunk of the American apple
industry in terms of setting up
post harvest operations and the
partnership is a really great
strategic fit for us.”
Quality honey and skincare products
Made in the bay for more than 70 years
Buy in-store or online today
Pure raw New Zealand Honeys
Natural honey based skincare & balms
Quality honey and bee products
Mouth-watering ice creams
Delicious range of confectionery
Gift ware and souvenirs
Children’s toys and books
Fascinating and educational live bee display
Mossop’s Honey Shoppe
761 State Highway 29, Tauriko, Tauranga
0800 946 677 www.mossops.co.nz
P8312Y

6 BAY OF PLENTY BUSINESS NEWS May/June 2018
COVER STORY
Honey business a sweet
challenge for Bay family
For Tauranga honey processors and
beekeepers the Mossops, the adage
about how well you do in a bad season
being what really counts, has held true
over the past years.
By RICHARD RENNIE
The family has experienced
and survived the
impact of earthquakes,
good and bad honey seasons,
a major fire, market uncertainties
and varroa mite - and that’s
just since 2000.
But today they are looking
to a bright export future as
the world gains an increasing
taste for quality New Zealand
honeys, and the company has
international clients in 12
countries.
The company celebrated
its 70th year in business in
2017, and is co-owned by Neil
Mossop and his wife Wendy,
who bought it from Neil’s
father Ron in the 1980s.
“We have been able to manage
our way through each of
these challenges,” said Neil.
The Mossops are watching
with interest the release
and impact of the new MPI
Manuka Honey Standard,
which aims to determine the
purity of Manuka honey and
theoretically to eliminate poor
quality Manuka blends entering
the marketplace.
To date, all tests Mossops
have had done on their vari-
ous grades of Manuka honey
have passed the new standard,
which they say is a tremendous
reassurance for all their
New Zealand international
customers.
Wendy Mossop said the
family has also closely followed
the research work done
on Manuka honey’s health-giving
benefits, and continue to
trial its application in other
products, including cosmetics
and cough lozenges.
“Our focus on providing a
consistently high quality product,
with minimal stirring or
treatment, has lent Mossop’s
honey a different texture to
most commercial honeys, and
earned many dedicated customers
in New Zealand and
around the world,” she said.
Mossops had its origins
in Ron’s backyard interest in
beekeeping, and now employs
much of the family, along with
35 staff from their Tauranga
base, and owns thousands of
hives spread throughout the
North Island.
Neil Mossop said he
believed being a strong family
company of integrity and
high ethics, and not a large
investor-owned operation centred
only on quick profits for
Duane, Neil, Wendy and Ryan Mossop: Growing customer
base in New Zealand and around the world. Photo/Supplied.
off-shore investors, definitely
helped weather the tough times.
As the rush to Manuka
honey production has surged
through the industry, Mossop
said the Mossop family had
managed to focus on retaining
their valuable relationships
with landowners in remote
parts of the country, where
they have kept hives for years.
“We have always placed
a lot on being honest and
upfront with the farmers and
landowners we deal with,”
said Mossop.
“And they have appreciated
that over the years as more
and more people have come
knocking on the door wanting
to put hives on their land.”
The Mossops have often
helped improve the quality
of the properties where they
have placed hives by putting
in access roads and tracks with
their own earthmoving equipment,
to better locate the hives.
But Mossop said he was
concerned expectations among
many land owners have been
pushed too far by promises of
Manuka returns that are well
beyond what are realistic.
This has also prompted the
family to invest in acquiring
more Manuka blocks to secure
a more consistent supply of
the honey. They have found in
the current market it is more
economically viable to buy
properties than pay the leasing
prices demanded by some
landowners.
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BAY OF PLENTY BUSINESS NEWS May/June 2018 7
Export NZ BOP
finalists announced
The judges have named a varied range of
finalists in the 2018 Zespri Bay of Plenty
ExportNZ Awards, demonstrating the
strength and vibrancy of the export sector,
say the organisers.
Twelve finalists have been
named across four categories.
The winners, plus
the surprise annual recipient
of the ExportNZ Service to
Export Award, will be named
at a Mystery-themed gala dinner
on Friday, 22 June, at ASB
Baypark, Tauranga.
“The Bay of Plenty is called
home by hundreds of fantastic
exporting businesses and
this is reflected in the calibre
of this year’s finalists,”
said ExportNZ BOP executive
officer Jo Hall.
“We’re passionate about
supporting the region and these
exporters, and they love being
able to celebrate the wins and
successes and sharing these
stories.”
This year, the winners from
categories one to three will
also automatically qualify for
entry into the New Zealand
International Business Awards
(NZIBA), run by New Zealand
Trade and Enterprise (NZTE).
Organisers said the collaboration
between NZTE
and ExportNZ would create
a cohesive and exciting programme
of awards for 2018,
culminating in the NZIBA at
the end of the year.
Finalists for 2018 Zespri
Bay of Plenty ExportNZ
Awards
1. YOU Travel Best
Emerging Business Award
– Swiped On Ltd
– BeeNZ Ltd
– Vortex Group Ltd
The YOU Travel Best
Emerging Business award celebrates
companies from within
the Bay of Plenty, which
have made the most remarkable
leap forward in start-up
exporting.
The award is not sector specific
and the entrants will have
been exporting for less than
five consecutive years and
have a total annual revenue of
under $5 million.
2. Page Macrae
Engineering Excellence
in Innovation Award
– Spectrum Innovations Ltd
– Genera Ltd
– Swiped On Ltd
– Instinct Furniture NZ Ltd
The Page Macrae Engineering
Excellence in Innovation
award is a special award to
Joanna Hall
recognise a Bay of Plenty business
displaying outstanding
innovation in exporting.
They noted that innovation
is not just inventing. It can
include anything genuinely
innovative, be it product or
service, leadership, positioning
or branding, marketing, sales
channels, technology, creative
pricing strategy or similar that
is distinctly different and differentiates
their business.
3. Sharp Tudhope
Lawyers Best Medium to
Large Business Award
– Ziwi Ltd
– Genera Ltd
The Sharp Tudhope Lawyers
Best Medium to Large Business
Award is the big award of the
evening, and is for companies
who have achieved extraordinary
and sustainable export
growth.
The business will have been
engaged in generating significant
export earnings for that
business and New Zealand
with a total annual revenue of
over $5 million.
4. Beca Export
Achievement Award
– Robbie Ramlose - Genera Ltd
– Stuart Hazeldine-Sequal -
Lumber Ltd
– Jevon Priestley - Vortex
Group Ltd
The Beca Export Achievement
award provides an exporter
the opportunity to recognise a
material contribution to their
export success by a particular
individual within their
company. These nominees are
often the unsung heroes of
their business.
The information provided
by the nominator is designed
to provide judges with insight
into the individual’s contribution
to export processes,
products or technologies,
team dynamics, and ultimately
resulting in export growth and
profitability.
5. ExportNZ Service
to Export Award
The ExportNZ Service to
Export award recognises and
honours an individual, who
may or may not be directly
involved with exporting, but
in the view of the judges has
made a significant contribution
to exporting success in the Bay
of Plenty.
Past winners include: Andy
Cameron, Graeme Marshall,
Ray Ellis, Ian Macrae, Gwenda
Merriman, Kay Rogers,
Catherine Simmons, Graeme
Boyd, Lionel Crawley, Bob
Sievwright, Alan Bougen,
Murray Davies, Jon Mayson,
Murray Hill and Rob Jeffrey.
– By DAVID PORTER
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8 BAY OF PLENTY BUSINESS NEWS May/June 2018
Tauranga council
opts for new CEO
Incumbent Tauranga City Council chief executive Garry Poole
failed to win re-appointment at the end of his five-year term, with
the council calling the Long-Term Plan “ambitious” and citing the
need to reconsider priorities. Fellow Bay official Marty Grenfell -
currently head of the Whakatane District Council - will be taking
over the role in September.
By DAVID PORTER
Mayor Greg Brownless
thanked Poole for
his service since his
appointment in April 2013.
“Garry has managed
council through a period
of rapid growth, which has
seen Tauranga become the
fifth-largest city in New
Zealand,” he said.
“He has proven to be capable
and competent, and will
leave opportunities for the new
chief executive to continue to
progress. We wish Garry well
in his next endeavour.”
The council declined to state
why Poole - who was chief
executive of the Wellington
City Council for 15 years - had
failed to win re-appointment.
However, Brownless said
Grenfell’s appointment reflected
a new direction for the TCC.
“Tauranga City Council is
facing some challenging questions
as we balance growth
with the delivery of our core
• The new university campus
GARRY POOLE -
PERSONAL HIGHLIGHTS
• Improved relationships with key partners, particularly
tangata whenua
• Collaborative projects such as the Marine Precinct,
Bay Oval lights, Paradox Street Art Festival, Tidal
steps, High Performance Sports Centre, the return of
60 Chapel Street to Ngai Tamarawaho.
Marty Grenfell - incoming.
Photo/Supplied.
services,” said Brownless.
“Our Long-Term Plan
is ambitious, but if accepted
would mean higher rates,
and we need to consider that.
Elected members believe that
Marty will have a strong focus
on delivering the best possible
services and facilities in a
cost-effective manner, and we
will ask that he looks at our
priorities for the city and what
we can manage.”
Brownless added that the
council had received a number
of high-quality applicants for
the role, which was not surprising
given how appealing
Tauranga was as a place to live.
Poole’s five-year contract
ended in April but councillors
have asked that he remains
in his role for the next three
months to ensure a smooth
transition.
The outgoing chief executive
said that while he was
disappointed not to have been
re-appointed, he was proud of
what had been achieved over
the past five years.
“We have faced some challenging
times, as you do when
you’re growing.
“However, I believe council
is now focused on the right
things, is more effective, and
that Tauranga is on the way
to becoming an internationally
competitive city.
“Tauranga City Council is
full of great people, who are
focused on delivering for our
community, and I hope that the
city continues to push ahead
with some of the exciting initiatives
we have planned.”
Poole said he would take
his time to consider his options
once his role ends in August.
Grenfell’s appointment followed
a seven-month recruitment
process. He has been
chief executive of Whakatane
District Council since
late 2011.
He was previously a senior
manager at Upper Hutt City
Council and Hutt City Council,
and had 20 years’ experience
with NZ Police.
New fishing and boat
show for the Bay
Makz Gear will be an exhibitor at TFABS, with the Yamaha WaveRunner Jetski
range. Pictured are (from left) Lawrence Daly (TFABS), Makz Gear owner Serge
Fabre, and sales, parts & accessories manager Regan Boyle. Photo/Supplied.
The Bay of Plenty is
well-recognised as one
of New Zealand’s premium
spots for water-based
recreation. It’s now getting a
new attraction - the Tauranga
Fishing and Boat Show
(TFABS) - which director
Lawrence Daly aims to make
an annual event.
TFABS will be an indoor
event held at Baypark Arena,
Mount Maunganui on 2,3 and
4 November (the first Friday,
Saturday and Sunday of the
month) and has been timed
to capitalise on the upcoming
Summer season.
Daly - a keen kayak fisherman
and boatie himself -
said the show will cater for all
popular water-based activities,
including fishing, boating, diving,
jet skiing, paddle boarding,
kayaking, surfing, kayak
fishing, swimming, spear fishing
and sailing.
TFABS will showcase
the local water-based leisure
and marine industry, and will
include an educational angle
with VDOs and talks on water
safety, marine life, conservation
and the Tauranga local
marine industry it is planned to
offer a showcase for the local
water-based leisure industry.
Daly who has been working
on the new concept show
for more than fifteen months
say’s “TFABS will be the
first mainly indoor Tauranga
fishing and boat show for a
number of years,” said Daly,
who has been working on the
new concept show for a year
and a half.
“It’s important that it is
a show that is not weather
dependent to encourage the
maximum number of exhibitors
and visitors over the
three days.”
Early-bird tickets will be
available online in July from
Eventfinder, and to encourage
early ticket sales no booking or
credit card fees will be applied
to the ticket price of $12.00 per
adult, with under-14s gaining
free entry.
Tickets purchased on the
show days will be $15.00.
(Prices include GST.) There
will be free parking for show
visitors and exhibitors.
Early-bird tickets and tickets
purchased on show days
will also have the opportunity
to win fantastic draw prizes.
For more details on TFABS
2018 go to www.tfabs.co.nz
or Facebook page Tauranga
Fishing And Boat Show.
– By DAVID PORTER
‘Brickman – Wonders of the
World’ coming to Baypark
BayVenues Ltd – Baypark are
delighted to announce that the
famous Brickman – Wonders of
the World Exhibition will be coming to
Baypark from June 30 – July 22.
The interactive exhibition created by
Ryan “The Brickman” McNaught features
some of the world’s most iconic
landmarks, built entirely from LEGO®.
There will be 50 LEGO models on
display, including recreations of the Taj
Mahal, Michelangelo’s Statue of David,
The Great Wall of China, the Empire
State Building (featuring King Kong), the
Leaning Tower of Pisa, and the Arc de
Triomphe.
“This is like nothing that has been
seen before in the Bay of Plenty,” says
McNaught. “Every model is brand new
and infinitely more detailed than anything
I’ve ever created.”
The exhibition will arrive in Mount
Maunganui in late June, following a successful
tour of Wellington, Hamilton and
Auckland, attended by more than 160,000
visitors.
McNaught is one of only 14 LEGO
Certified Professionals in the world and
the exhibition is the culmination of 4,944
hours of work.
Visitors will be taken on a historical
journey through time, with the opportunity
to discover more about each attraction
– both in real life and LEGO life.
McNaught will also be enlisting the building
skills of the public to help with some
of the model-making, lending to a truly
interactive and imaginative experience.
“It’s super interactive with lots of
activities for LEGO fanatics to get
involved in,” he says.
“Brickies will have the chance to
build a statue of themselves next to the
mighty Statue of David and they can also
build some LEGO cars for the traffic jam
around the Arc de Triomphe. There’s so
many hands-on things to get involved
with – hopefully all the budding builders
out there are up for the challenge.”
Brickman – Wonders of the World is
showcased and open every day at Baypark
Stadium Lounge from Saturday, 30 June
through to Sunday, 22 July. An exciting
exhibition for all ages, this is a fantastic
experience for school groups in the last
week of school and is timed perfectly for
the July school holidays. Make a day of
it. There is so much to see and do, with a
Café available on site.
Details are available on the Baypark
website – www.asbbaypark.co.nz with
more information and tickets through
Ticketek. A range of ticket prices including
family, groups, concessions and door
sales will be available every day.
Brickman® Wonders of the World
30 June – 22 July 2018 - Baypark
Stadium Lounge, Mt Maunganui

BAY OF PLENTY BUSINESS NEWS May/June 2018 9
Property Council supports
opposition to TCC rating change
The Property Council of New Zealand
has joined the lobbying against the
Tauranga City Council’s proposed new
commercial rates differential policy,
with a submission prepared by Urban
Economics, an Auckland-based research
consultancy.
By DAVID PORTER
As covered earlier this
year in Bay of Plenty
Business News, the TCC
will decide at the end of June
whether to introduce a rating
differential between commercial
and residential property
owners of 1:1.6, to be phased
in over the next three years.
The Property Council,
which represents commercial
property owner interests across
New Zealand, is supporting
a number of business organisations
in the Bay. Priority
One, the Tauranga Chamber of
Commerce, Mainstreet, and
Port of Tauranga - the city’s
biggest ratepayer - are understood
to have made submissions
opposing the proposal.
The TCC argues that the
current rating system is inequitable,
and made it difficult to
develop needed infrastructure
and services because it was
overly constrained by affordability.
(see http://bopbusiness-
news.co.nz/2018/03/01/tau-
ranga-council-engages-business-rates/
)
Matt Paterson, the Property
Council’s head of advocacy,
told Bay of Plenty Business
News that increasing the rates
on businesses, while asking
them to revitalise the CBD, did
not add up.
“You will discourage development
and economic activity
at a time you need to foster it
the most,” he said.
“Property Council and
numerous businesses have
made the strong case against
business differentials to the
Tauranga City Council.
“We hope councillors have
listened and vote for Tauranga’s
prosperity by rejecting the business
differential proposal.”
The Urban Economics
report, Economic Evaluation
of: Tauranga City Council
Proposed Rates Differential
Policy, was prepared by Adam
Thompson and Amy Trigg.
They state that the TCC
has put forward three key reasons
in favour of the proposed
changes: 1) that businesses
receive greater benefits from
rates expenditure, 2) that the
differential would rebalance
rates between commercial
and residential property owners,
and 3) that commercial
property owners benefit from
claiming back GST and reducing
income tax.
The Property Council
argues that the TCC has not
provided any evidence that
commercial owners receive
greater benefits, and say the
economic literature does not
support the argument.
Secondly, the report argues
that the proposed rates differential
would not rebalance the
amount the commercial sector
pays in relation to total capital
value, and would instead
increase the amount paid by
the commercial sector.
On the GST/Tax argument,
the report says the TCC does
not appear to understand how
businesses operate.
“Commercial property
owners claim back GST
and pay income tax because
they operate as a business in
a market economy, namely
they incur costs in order to
produce goods and services.
TCC’s claim that a commercial
property owner receives a
benefit from the rates costs, in
the form of less income tax, is
factually incorrect and is a fundamental
challenge to the principles
of a market economy.”
That was because business
property owners are able to
Matt Paterson: Rates differential
doesn’t add up. Photo/Supplied.
offset income tax with costs
(including rates) because they
pay income tax.
The council submission
notes that GST is not taxed
on individual expenses (such
as rates), it is taxed on the net
profit of the business. Rates
are a business cost, the submission
argues, and businesses
don’t benefit from business
costs.
The Property Council’s
Paterson said that asking businesses
to pay higher rates than
residential had no economic
rationale, because the benefits
accrued mostly to residents not
businesses.
“The Urban Economics analysis
proves that,” he asserted.
“Other government-commissioned
reports over the past
decade say the same thing.”
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10 BAY OF PLENTY BUSINESS NEWS May/June 2018
Trustpower delivers
significant profit rise
Trustpower has reported a significant
increase in annual net profit after tax of
$129 million, up $35 million, or 38 percent
on 2017.
By DAVID PORTER
Chief executive Vince
Hawksworth told Bay
of Plenty Business News
that Trustpower was excited
about its future as a successful
Bay of Plenty-based company.
“We’ve not only grown the
business, but also grown our
employment and the quality of
the jobs we are providing. We
want to be part of the overall
growth and success story of the
city, which was the whole point
of moving into the CBD.”
The company said it had
added the most shareholder
value of all its listed competitors
during the 12 months to
31 March, 2018, delivering a
total return to shareholders of
29 percent.
The company said strong
performance in both its retail
and generation segments
had contributed to the profit
increase.
The company’s retail earnings
of $60 million were a
good indication the company
had a strong underlying retail
business, forming a solid platform
for continued growth,
said Hawksworth.
The retail division emphasied
technology and customer
services aligned to
Trustpower’s core power business,
and the company was
exploring opportunities such
as the provision of mobile
phone services.
Hawksworth said that after
a slower start to customer
acquisition in the first half of
the year while the company
focused its efforts on leveraging
high wholesale electricity
prices, the year finished on a
high with a significant 11 percent
rise in bundled customers.
Trustpower chair Paul
Ridley-Smith said it was fitting
that the share price was
beginning to reflect the underlying
value and growth potential
of the company.
“It is particularly promising
to see the strong retail result,
as this represents a long term
sustainable lift in profitability,”
he said.
Trustpower declared a fully
imputed final dividend of 17
cents per share, bringing the
total dividend for the year to
34 cents per share.
“Following the sale of our
Australian operations we still
anticipate sustaining this level
Trustpower Chief executive Vince Hawksworth Photo/Supplied.
of dividend in the immediate
future,” said Ridley-Smith.
Trustpower completed
the sale of three hydropower
schemes in New South Wales
in December last year.
The assets had performed
well, but given their size and
distance from New Zealand,
the selling the Australian subsidiary
was the best option for
enhancing shareholder value,
he said.
Trustpower split off its
alternative energy assets, largely
based in Australia, into Tilt
Renewables, in October 2016.
(see accompanying story)
Ridley-Smith said that
despite strong competition,
Trustpower’s multi-prod-
TRUSTPOWER’S FY 2019
GUIDANCE
Trustpower said its EBITDAF guidance for FY2019 was
expected to be in the range of $205-to-$225 million,
assuming average hydrology and climatic conditions. The
guidance assumes a reduction in revenue of $27 million
following the sale of the Australian operations and a reduction
from the current year of approximately $25 million for a return
to average hydrology and pricing.
uct retail business strategy
bundling power, gas, internet
and phone, continued to
deliver results.
“We are no longer a telecommunications
start-up, but
an established player with
scale to compete with high
quality internet service provision
and network caching.”
TECT sells down Tilt Renewables stake
Tauranga Energy
Consumer Trust (TECT)
has sold down part of
its stake in Tilt Renewables.
The move follows the failure
of its proposal earlier this
year to wind up its current
trust and shift the assets solely
to its charitable arm, in the
process eventually phasing out
the annual cheque received by
consumers from its Trustpower
stake.
TECT has sold 19.99 percent
of its 26.8 percent holding
in Tilt Renewables to Mercury
New Zealand for $2.30 per
share, for a return of $143.8
million. The price represented
a significant premium of 24.3
percent over the closing price
of $1.85 when the deal was
completed in May.
TECT has also granted
Mercury an option over its
remaining 6.8 percent holding
in Tilt at $2.30 per share,
which would generate a further
$49 million.
TECT acquired a shareholding
in Tilt Renewables due
to the demerger of Trustpower
in 2016, which resulted in
Trustpower shareholders
receiving shares in both Tilt
Renewables Limited and
Trustpower. TECT acquired
83,878,838 shares in Tilt
Renewables.
TECT said during its earlier
proposal to wind up the trust
that it was seeking to diversify
its shareholding, which is
heavily weighted in the power
sector.
TECT Chairman Bill HollandPhoto/Supplied.
Subsequently, TECT has
been reviewing its shareholding
in Tilt Renewables on
the basis that with a growth
focus, Tilt Renewables would
likely to be a low dividend
paying stock with high
capital calls in the near to
medium term.
TECT will look to reinvest
the funds as part of its wider
diversified portfolio, said
chairman Bill Holland.
“We have enjoyed our
investment in Tilt and the
value the shares represent, but
given the significant premium
offered, it was in the best
interests of our beneficiaries to
accept the offer,” he said.
“We now have the ability to
invest more than $140 million
in other opportunities, further
diversifying our portfolio and
hopefully increasing the cash
returns for the trust and its
beneficiaries.”
Mercury chief executive
Fraser Whineray said Tilt
Renewables was an established
business operating
power plants in a growing
renewables market, with a
quality development pipeline,
good governance, and a strong
management team with a proven
track record.
“Tilt has established a
robust portfolio of operating
wind farms in both Australia
and New Zealand, as well as
consented renewable generation
projects which it can bring
to market when conditions
are right.”
The investment may provide
further opportunities for
Mercury to deploy funds to
capitalise on Tilt’s established
Australian position as projects
are developed.
“Together with its other
shareholders, we look forward
to being part of Tilt’s contribution
to growing renewable
electricity generation,” he said.

NEW FACES
Property Managers Group
- Cameron Forlong
The rapid growth in apartment
living and unit title ownership in our
main centres, such as Tauranga,
has seen a rise in the need for
professionally managed,
body corporate administrations.
As a result PMG’s Body Corporate
(PMG BC) division is thrilled
to announce the appointment of
Cameron Forlong who takes on the role
of Body Corporate Account Manager, bolstering
the growing business.
Cameron has been involved in the
property sector for seven years since graduating
with a Bachelor of Property from
Auckland University. He has a breadth
of experience spanning property management,
facilities management and tenant
advocacy.
Cameron’s role with PMG includes the
administration, facilities management and
the introduction of new Body Corporate
portfolios.
Coupled with this background in property,
Cameron also has experience in the
retail and professional services sectors
which gives him an understanding of
how a variety of businesses operate and
what their requirements are as occupiers
of commercial, industrial, and residential
unit title complexes. Cameron brings a
Cameron Forlong
personalised and result driven approach
to managing prized assets for PMG’s
valued clients.
Cameron joins Tony Brindle, who
leads the PMG BC team – Tony has
been instrumental as Vice President of
the Body Corporate Chair Group and the
Government directed Workgroup 14, in
contributing to the proposed changes to
the Unit Titles Act 2010 recently.
BAY OF PLENTY BUSINESS NEWS May/June 2018 11
Experis Recruitment continue
their expansion into the region
After their initial arrival in the region in February, Experis Recruitment
continue their investment into the Bay of Plenty and Northern Waikato
with the appointment of Principal Consultant Stuart Floan, who
specialises in the recruitment of Engineering Professionals (covering
Production, Automation and Mechanical Engineers) and Health & Safety.
National Manager Matthew Templar
says, “Working with someone as
well networked and respected as
Stuart, who’s also based in Ngatea provided
us with the unique opportunity to create
a high-performing specialist Engineering
recruitment business with a local focus
right out of the gates.”
Stuart continues, “I’ve seen first-hand
the enormous benefits of moving my family
out of the urban rat race and into the
New Zealand heartland, so I can share my
experiences and act as a conduit for the
very best Engineering and Safety talent in
the region.”
“Working with an organisation with the
scale and support of Experis has enabled
me to create a market map in several key
talent areas; designed to help businesses in
the region grow and adapt to new opportunities
with the best Engineers available.”
Experis is the specialist professional’s
division of ManpowerGroup – a world
leader and recognised pioneer in the
employment services industry for nearly
65 years.
It joins well-established branches in
Auckland’s CBD & North Shore and
Wellington, servicing some of New
Zealand’s leading manufacturers and
exporters.
For more information, contact
Stuart Floan on 0276 425 027 or email
stuart.floan@nz.experis.com
Stuart Floan
cameron.forlong@propertymgr.co.nz
Level 2, 46 Spring Street, Tauranga
Phone: 07 578 3494
www.propertymgr.co.nz
P2903Y
Stuart Floan
stuart.floan@nz.experis.com
PO Box 13292, Tauranga, Bay of Plenty
Phone: +64 27 642 5027
www.experis.co.nz
P8755Y
Cucumber’s
new CEO
Brian Bell
Tauranga-based technology
company Cucumber is
excited to announce the
appointment of their new
CEO, Brian Bell.
Brian started with Cucumber on 1
May 2018, and joins the organisation
with a wealth of knowledge in
helping customers solve complex problems
using science and technology for
many sectors within primary industries.
Brian’s background in a range of
emerging technologies will help
Cucumber’s customers navigate their
way through the fast changing digital
technology landscape. He has helped
many organisations solve problems
whilst leveraging technologies like IoT,
AI, ML, and smart sensing.
These attributes along with Brian’s
experience will be a huge asset to
Brian has a strategic vision
and passion that is very closely
aligned with Cucumber’s.
Brian Bell
our organisation and will build on
Cucumber’s solid foundation.” says Jodie
Tipping Founder/Director and current
Managing Director. “We believe Brian is
the ideal person to help take Cucumber to
the next level.
He’s a strategic thinker and visionary
leader, and has proven experience in
building high performing teams which
drive strong commercial growth. I’m
delighted to have someone like him take
over the reins.” adds Jodie.
Brian understands and supports
Cucumber’s future direction, which is to
be a preferred partner of extraordinary
companies both here and globally. With
the rest of the Cucumber team, he wants
to create an organisation that is respected,
adds societal and environmental value,
and offers innovative products and solutions
that customers benefit from.
For further information on
Cucumber or to contact Brian please
email info@cucumber.co.nz.
Michelle Oldfield promoted to
Associate at Bennetts Proactive
Lance and the team at Bennetts
Proactive are pleased to announce
the appointment of Michelle Oldfield.
With 17 years’ experience in the
Bay, Michelle brings a wealth of
knowledge and expertise across a
range of industries. Having fulfilled a senior
accountancy role with the firm since
September 2016, Michelle will already be
a familiar face for many. Her promotion
to Associate will allow her to bring even
more value to clients as well as playing an
active role in practice growth and development.
Michelle is passionate about providing
a personalised service, and ensuring
her clients get the right advice, at the right
time.
“I love the variety my job brings – no
two businesses or clients are the same.
There is no cookie cutter solution to
assisting clients in achieving growth and
success,” says Michelle.
“Clients within the same or similar
industries can be at varying stages and
have different levels of operation. My clients
and I learn a lot from each other - they
have valuable skills and knowledge which
have contributed to their own success
as business owners and it often shapes
what we do to ensure the best possible
outcome.”
Adds Michelle; “Seeing the success of
Michelle Oldfield
my clients is hugely rewarding and it’s
what drives me.”
Michelle plays an active role at the
Devoy Squash and Fitness Center where
she is club president. However, her summers
are committed to drag racing which
is a family sport. “It’s a full-on day at the
track, usually running around under a bit
of pressure, but there’s generally plenty
of laughter as well.”
Contact: Ketaki Rasmussen
Marketing & Communications Advisor
Ketaki.rasmussen@cucumber.co.nz
Phone: 021 507 805
www.cucumber.co.nz
V4813L
Michelle Oldfield
Bennetts Proactive Chartered Accountants
michelle@bennettsproactive.co.nz
Ph 07 573 8446 | Fax 07 573 8597
8 Queen Street, Te Puke | PO Box 32, Te Puke
www.bennettsproactive.co.nz
V3364L

12 BAY OF PLENTY BUSINESS NEWS May/June 2018
ARCHITECTURE AWARDS
Accolades for stunning Waikato / BOP
Architecture Awards winners
Projects that breathe new life into the region’s key cities are among
the winners of the 2018 Waikato / Bay of Plenty Architecture Awards.
Buildings in Tauranga,
Rotorua Hamilton and
Taupō are on the list of
21 award winners.
They include education
and sports facilities, revitalised
urban parks and commercial
buildings, education
and sports facilities, cultural
and community centres, as
well as inventive residential
architecture.
The awards are part of the
peer-reviewed New Zealand
Architecture Awards programme
run by the New
Zealand Institute of Architects
(NZIA) and sponsored by
Resene.
The programme sets the
benchmark for the country’s
building projects and rec-
ognises the contribution of
architects to their towns and
communities.
Taupō architect Gavin
Robins convened an awards
jury that included New
Educational Winner & Resene Colour Winner –
TAURANGA INTERMEDIATE SCHOOL by First Principles
Architects & Interiors, Photo by Architect
Educational Winner & Resene Colour Winner -
TAURANGA INTERMEDIATE SCHOOL by First Principles
Architects & Interiors, Photo by Architect
Plymouth architect Murali
Bhasker and Hamilton architect
Megan Scott.
“The quality of architecture
we saw throughout the region
is exemplary, ” said Robins.
Commercial Winner, MANGATAWA TARI by First Principles
Architects & Interiors, Photo by Amanda Aitkin
Education
ACG Tauranga Gymnasium –
Babbage Consultants
Tauranga Intermediate School
– First Principles Architects
Commercial Architecture
Mezz Box – Edwards White
Architects and Designwell in
association
Genesis Building – Edwards
White Architects
Mangatawa Tari – First
Principles Architects
Heritage
Wendell B Mendenhall Building
– Walker Group Architects
Te Rau Aroha, Kai Hall –
Walker Group Architects
WINNERS BY CATEGORY:
George R Biesinger Building –
Walker Group Architects
Housing
Mary’s House – Bellbird
Architect
DNA House – Crosson
Architects
River Retreat – Edwards White
Architects
Walton House – John
Henderson Architecture
Turama – RTA Studio
Pukemoremore House –
Sumich Chaplin Architects
Interior Architecture
Seeka – Architecture Page
Henderson
Kenehi on Bryce – Edwards
White Architects
53 Spring Street Interior
Fitout – Stufkens + Chambers
Architects
Planning and Urban Design
Te Waimirimiri o Te Kuirau –
Architecture Aotearoa
Victoria on the River –
Edwards White Architects and
Aecom in association
Public Architecture
David O. McKay Stake Centre
and Cultural Events Centre –
Walker Group Architects
Small Project Architecture
Promenade – Stufkens +
Chambers Architects
unit 1/17 banks avenue, mount maunganui
www.firstprinciplesarchitects.com
+64 7 574 6728
find us on facebook
Winners of 3 NZIA Local Architecture Awards

ARCHITECTURE AWARDS
BAY OF PLENTY BUSINESS NEWS May/June 2018 13
Amazing spaces - school’s
state-of-the-art gym
Growing Bay of Plenty school ACG Tauranga has a new state-ofthe-art
gymnasium that is one of the most advanced in the city.
It’s a facility that Babbage
Consultants project architect
Charlotte Saunders describes
as “an amazing space - it’s the
most highly functioning space
for a school in Tauranga.”
The gym was finished in
May, 2017, 10 months after
work started and was constructed
by Hawkins Construction
Limited.
“The school wanted a
high-performing building and
we delivered,” said Charlotte.
Babbage Consultants has
worked with ACG Tauranga
since 2014 as the private
school began its development
in Pyes Pa, initially with 14
classrooms for junior pupils.
ACG Tauranga plans to continue
expanding as the children
move through their grades,
ultimately to Year 13.
A key milestone for the
school is the gym, which is
There’s not a
millimetre wasted
- there’s no corner
that can’t be used.
It’s amazing what’s
been achieved.
pivotal to future growth.
“This gives the school a
showpiece,” said Charlotte.
The gym consists of a fullsize
court area for basketball,
netball, volleyball and badminton,
with bleachers on both
sides rising from a mezzanine
level above changing rooms,
plant rooms and storage areas.
The upper floors provide
three classrooms that can be
converted into a function space
overlooking outdoor playing
fields and the indoor court.
Inside the gym, each end
wall is clad with perforated
plywood panels, used for their
acoustic properties and to conceal
and protect louvers that
allow natural ventilation. The
double-glazing has a grey tint
on the outer glass to reduce
glare and solar gain.
The ceiling comprises fibre
acoustic tiles and parallel areas
of plywood panels, giving the
gym precise acoustics.
The classrooms have acoustic
walls that can be moved
to create the function area.
Maximum use has been made
of natural ventilation and light,
and a building management
system includes sensor-controlled
lights, security and keyless
entry.
“There are no trims or fiddly
little spaces. Everything
needed to be highly durable,
low maintenance and stand the
test of time.
“We had to be extremely
economical in our use of
space. There’s not a millimetre
wasted - there’s no corner that
can’t be used. It’s amazing
what’s been achieved.”
The building will be used
by the school for sport, fitness
and teaching programmes,
school assembly and performance,
inter-school games,
school holiday programmes,
gala days and open days.
The school also wants to
make the gym available for
use by the wider community in
the fast-growing suburb, and
this helped dictate some of
the features, especially around
functionality and security.
“I’m especially proud of
what the school is getting,”
says Charlotte. “They’ve got
amazing quality and value
for money.”
KEY PERSONNEL
Babbage Consultants
Architects: Maria Ouzounova, Jane Arnott,
Charlotte Saunders
Structural: Dr Victor Lam, Xavier Lim
Building services: Matthew Foskin, Ivan Loh, Aslam Javed
Civil: Michael Martin, Bidara Pathirage
Geotechnical: Malcolm Stapleton, Mastufa Al-Haidar
For more information, contact Charlotte Saunders
027 809 7949 charlotte.saunders@babbage.co.nz
We proudly congratulate our
ACG Tauranga School
Gymnasium project team –
Winners of the 2018
Waikato / Bay of Plenty
Architecture Education Award.
Architecture
Engineering Consultancy
Environmental Consultancy
Project Management
Auckland | Hamilton | Taupo | Christchurch | Melbourne
ph +64 9 379 9980
www.babbage.co.nz
ISO 14064-1 • certified organisation

14 BAY OF PLENTY BUSINESS NEWS May/June 2018
Developing our digital future -
‘For locals, by locals’
The Digital Enablement
Project (DEP) pilot to
date has made significant
progress.
It has allowed members
of the business and wider
community to gain access to
the specific knowledge they
need, the right tools to suit
their goals and purposes, and
engage with local experts and
peers to support them on their
journeys.
To date it has enabled citizens
across Tauranga and
the Western Bay of Plenty to
interact more than 1740 times
Venture Centre reports preliminary progress
on the Digital Enablement Project pilot.
through 204 events, to take
advantage of the opportunities
provided by the internet and
digital technology.
The DEP has been developed
and implemented by
Venture Centre on contract to
Tauranga City and Western Bay
of Plenty District Councils.
The objective is to support
the councils’ vision and objectives,
which are to “focus on
delivering a supportive environment
for businesses and
individuals at all stages of their
evolution toward digital enablement.”
The social and economic
benefits of implementing a
full-blown DEP have become
clearer as the pilot project progresses.
The eagerness and willingness
of local people to step
forward to help others succeed
has been evident - especially
once the means to make their
talents, products and services
easily accessible was provided
through the pilot’s activities.
Since the pilot’s launch,
nearly 100 local business owners
have become engaged with
the DEP and have contributed
sponsorship, pro-bono support
and services to help other
locals succeed.
This pilot has laid the foundations
for community-led
digital enablement that delivers
services for three tightly
related segments:
Youth – critical thinking, foresight,
entrepreneurship, digital
literacy skills, coaching and
project work, practical application
of digital technology and
digital tools/languages, connections
with local business
community.
Small Business Owners –
helping to identify appropriate
digital tools, increase capability
to integrate digital tools,
business model adaptation,
connections with local digital
native youth, and local digital/expert
service providers
necessary to become digitally
mature.
Founders – foundational
enterprise development support
services, including optimal
use of digital tools and
services appropriate to their
stage.
Venture Centre has begun
to develop and implement a
structured, co-ordinated and
curated digital and business
infrastructure to manage all
of the people interactions and
operational requirements of
the DEP.
Digital community
ecosystem
As the pace and extent of
technological change increases,
so too does the number and
complexity of digital technology
options available and skills
required to implement them.
Venture Centre has created a
“third party” platform.
Our digital community ecosystem
provides the means to
connect specific needs with
the required skills or services,
and to provide youth with
learn-by-doing opportunities
to get experience under reallife
business conditions.
The benefits of having
different generations interact
mean young people are encouraged
and supported to become
entrepreneurial, and learn from
established business owners’
stories and experiences.
Business owners are mixing
with young people and are
beginning to understand how
the “digital native” attributes
of our youth can add value.
Experts have transferred
their knowledge to others so
citizens in the Western Bay can
readily access digital enablement
in their own backyards.
The pilot DEP is accelerating
business development in part
by helping local enterprises and
founders access a wide range of
expertise, in different formats.
The DEP pilot would not
have emerged in the way it
has, with its current velocity
and depth of impact, without
local government investment
and leadership acting to unlock
the latent potential through the
grass-roots development of its
citizens.
The DEP can fill the pipeline
that supplies investors
and funds with local talent and
projects, business owners with
human resource and capability-building,
and youth with
support for them to test their
entrepreneurial wings.
Techweek Tauranga
kicked off with the
GrowPlenty workshop
Entrepreneurs, Technologists, business
owners, young people, including a group
from Katikati College came together to
explore how tomorrow might be made to
be better than today.
Workshops centred on four questions, how
might we; generate e edgy, care for our
earth/air/water, grow food and distribute it.
The workshop grew plenty of ideas to take
forward, thanks to support from Tauranga
City Council, Western Bay of Plenty District
Council and sponsorship from Trustpower.
T A U R A N G A
21 25

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The Commu The C
BAY OF PLENTY BUSINESS NEWS May/June 2018 15
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16 BAY OF PLENTY BUSINESS NEWS May/June 2018
What to consider when looking to
relocate to New-Build Premises
So, you’ve decided that your business
needs new premises and you’ve noticed a
few glossy new-build developments being
marketed in your desired area.
Navigating the way to
occupying office space
in a yet-to-be built
development requires homework,
due diligence and a
healthy dose of confidence –
from all parties, not just the
tenants.
If your existing lease is
due to expire in the medium
term and you’re committed to
a change of environment, then
securing a tenancy off-theplans
could be a great way forward
for your office business.
Here’s some things to consider
when weighing up a
move to brand new, yet-to-bebuilt
space:
A high-spec’ new build with
its associated new generation
innovations and structural integrity
could be a great recruitment
tool for your business when
scouting for new staff.
Look into the background
of the developer and check
out any former projects associated
with them to benchmark
quality.
Ask plenty of questions and
investigate what checks and
balances are built-in to ensure
that you get what you signed
up for within the agreed timeframe.
You do not want to be
paying two lots of rent.
Sign up within the early
stages of the development to
have some genuine input into
the layout and other design
components.
There are obvious efficiencies
to be gained by getting
in early – it’s far easier to be
onboard from the very start,
than to procrastinate and then
find that structural changes
are too expensive, not practical
or simply not able to be
incorporated to the build once
underway.
Consider utilising the services
of an interior designer or
office design specialist to look
at the floorplan and “test” the
proposed layout.
Similarly, get a data specialist
in to assess your longterm
business technology
requirements and to ensure
that the space has longevity
and remains relevant in the
fast-changing technological
environment.
Allow plenty of time to
transition your business to a
new address. Work out the
logistics around your current
lease, streamline how/when to
physically relocate your business
operation and remember
to factor in some contingencies
around timing.
See if you can get a “lease
tail” clause built into your
lease contract whereby, if the
new building is ready ahead
of time, your new landlord
will pay the remainder of your
existing lease.
This is most likely to happen
if your current landlord
is the one developing the new
building.
Consider new ways of
working when you move to a
new building.
Here’s your chance to turn
your work environment on
its head and try incorporating
agile (hot desk) work
stations, consider communal
and collaborative team
spaces, and move towards
a paperless office with new
technologies.
Committing to office space
off-the-plans could be the turbo-boost
your business needs.
Experienced leasing agents
who work closely with developers
and who are up-to-date
with market trends and dynamics
can assist you with the
information required to fasttrack
the decision making.
For more ideas, see www.
bayleys.co.nz/workplace/articles/insights
Commercial
Property
Management
At Bayleys, we believe relationships are
what businesses are built on and how
they succeed.
We understand that to maximise the
return on your property you need:
Professional property management
A business partner that understands
your views and goals
Speak to your Bayleys team today
SUCCESS REALTY LTD, BAYLEYS,
LICENSED UNDER THE REA ACT 2008
Jan Cooney
Senior Commercial Property Manager
P 07 579 0609 M 027 408 9339
jan.cooney@bayleys.co.nz
Brodie Thomas
Commercial Property Manager
P 07 579 0608 M 027 746 9218
brodie.thomas@bayleys.co.nz

Ring-fencing residential
investment property losses
BAY OF PLENTY BUSINESS NEWS May/June 2018 17
The government is intent on shaking property speculators from
the residential property market in an attempt to level the playing
field for owner-occupier home buyers.
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 latest weapon under
development in the government’s
arsenal is the
proposal to ring-fence or quarantine
any losses residential
property investors make.
This means preventing the
investors from applying losses
incurred on holding a property
against their personal salary/wages
and other business
income.
The government’s stated
aim is to make the tax system
fairer and improve housing
affordability for owner-occupiers
by reducing demand from
speculators. That is admirable.
However, as we explain
below, it’s questionable how
creating a tax rule that only
applies to a single class of
asset, residential property, and
not to other types of assets,
makes the tax system fairer.
Inland Revenue (IR) recently
released a paper setting out
the details of this proposal,
with the intention to have it
apply from the 2019/20 year
(i.e. 1 April 2019 for most
taxpayers).
The IR’s position is that
losses should not be able to
be offset against the investor’s
other income - only current
and future investment property
income, including any taxable
capital gains made on the ultimate
disposal of the property.
Proposed rules are for
residential land only
The proposal is for the rules
to apply only to “residential
land”, not farmland or land
used predominantly as business
premises.
Excluded from the rules
would be a person’s home,
property subject to the mixeduse
asset tax rules (e.g. a bach
used privately that is also rented
out), or land that is taxable
due to being part of a land-related
business (e.g. land dealing,
developing, building).
The rules would apply to
all residential land, whether or
not it is currently rented out,
including bare land, and land
outside of New Zealand.
To apply on a
portfolio basis
IR suggests that the rules
should apply on a portfolio
basis, instead of on a property
by property basis.
That is, investors would be
able to offset losses from a
loss-making property against
other properties in the portfolio
that may be profit making.
Structuring around
the rules
The rules could be circumvented
by investors holding their
property in different types of
entities, as opposed to investors
holding directly in their
personal capacities.
For example, a taxpayer
could borrow money to purchase
shares in a company that
invests in residential property.
Interest incurred by the taxpayer
on money borrowed to
buy the shares would be tax
deductible to the taxpayer.
So, while the shareholder is
not borrowing money to purchase
the property directly, they
could still obtain the tax advantage
by borrowing to purchase
the shares in the company.
The IR is proposing rules
that catch this sort of structuring.
However, it is not proposing
any rule that would
prevent taxpayers structuring
their affairs in such a way that
other business assets the investor
may have are debt-funded,
while their rental property
investments are equity-funded
to the extent they can be.
Comparison with other
types of investments
The tax system does not favour
residential property investment
over other types of assets such
as shares or business assets.
Investors in other asset
classes can offset losses they
incur in holding such assets
against their personal income.
Further, investors in other
asset classes may not pay any
capital gains on the sale of their
investments in the same way
property investors may not.
It’s worth noting that the
losses investors make on holding
rental properties are not the
product of alchemy or some
nefarious sleight of hand.
It would cost an investor on
the top 33 percent marginal tax
rate, $67 to derive a $33 tax
advantage from losses on an
investment.
In other words, the investors
are incurring a real economic
cost in excess of the tax
benefit they obtain.
IR points out that the ultimate
tax benefit for investors
and speculators is often taxfree
capital gains made on the
sale of a property. Often perhaps.
But not always.
And therein lies the rub –
the government is spreading its
tax net widely.
As with the two and five
year bright-line rules that apply
to tax capital gains on the disposal
of a residential investment
property, the ring-fencing
rule will not discriminate.
It will catch non-speculators
who are genuinely holding
their properties as a long-term
investment.
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.
Go with your
gut instinct
With all of the technological
and procedural
innovations that are
available in the credit management
field today, you might
think that gut instinct is an outmoded
and outdated concept.
Wrong. Every day I consult
with my clients in the
region about how to prevent
debts. And of course, having
up-to-date, well-written terms
of trade, and Equifax credit-checking
facilities are an
absolute must for any business
that gives credit.
But in my 11 years experience
as a credit management
and private investigation professional,
I’ve found the best
initial tool is the one you are
born with - your gut and the
instincts that emanate from it.
I have attended in excess
of 9000 meetings with business
owners in my tenure with
EC Credit Control, and I hear
the same thing repeated in
various iterations.
“I knew something was
wrong with that guy/lady,” “I
thought this might happen,”
“I had a bad feeling about
this job,” or “ I should have
stopped the deal when they
refused to pay the deposit.”
And the worst - and the
one I always make my clients
repeat so it can sink in - “I
knew he was a bad payer, but
I thought I would give him
a chance.”
That’s like taking a chance
on entering a lion enclo-
sure and expecting not to be
savaged.
When you walk down a
dark alleyway, your gut tells
you that there is a heightened
sense of danger due to the lack
of light and the reduced escape
routes should an incident
occur. Our senses are designed
to protect us from danger.
Making the
connection between
the products or
services sold,
and their actual
monetary value, will
help change your
approach to providing
credit.
But all too often, people
don’t call upon their natural
common sense when it comes
to business, because the desire
to make a deal, increase cash
flow or a misguided sense of
obligation to a potential client,
causes them to ignore the danger
signs that are present.
You don’t have to stop giving
credit. But you do need to
start seeing it as the money that
it actually is. If you went to a
company and asked for $5000
in cash they would laugh at
you and say no way. Or they
would do an in-depth background
check, make you sign
CREDIT MANAGEMENT
> BY NICK KERR
Nick Kerr is Area Manager BOP for EC Credit Control NZ Ltd.
He can be reached at nick.kerr@eccreditcontrol.co.nz
a personal guarantee, and put a
security over your house.
Yet ask a company for a
$5000 monthly credit account
and many will say yes, just
tell us where to send the
bill. Making the connection
between the products or services
sold, and their actual
monetary value, will help
change your approach to
providing credit.
The various credit management
tools and other online
credit checking facilities are
there to verify information and
give you reassurance when
transacting with a potential
client. And nowadays they’re
essential. But so is a bit of
common sense and trusting
your gut. Remember, credit is
a privilege not a right.
Nick Kerr Member
NZCFI, Area Manager.
Nick.Kerr@eccreditcontrol.co.nz
Mobile 027 713 2128, EC
Credit Control (NZ) Ltd,
www.eccreditcontrol.co.nz

18 BAY OF PLENTY BUSINESS NEWS May/June 2018
Rotorua LTP needs to
include boost to CBD
Now is the right time to build plans for further revitalisation of
the city centre into future planning, say business leaders.
By VIV POSSELT
A
submission prepared by
local business leaders
went to council on April
13, the deadline for submissions
on the Rotorua Lakes
Council’s Long-Term Plan
2018-28 (LTP).
Allison Lawton: We know growth
is happening. Photo/Supplied.
One of the document’s
architects, Gregg Brown, says
that while much had been done
in the past couple of years to
enhance Rotorua’s CBD, little
appears to have been budgeted
for additional planning to take
things forward.
“So, while there have been
improvements made, I don’t
believe we have done enough,
especially given the fact that
online and big box retailing are
increasingly taking business
from local retailers,” he said.
“We have to find a way to
make the CBD relevant … we
must customise the CBD for
future trends.”
Brown, who said the business
community had been
seeking just over $3 million for
the CBD revitalisation, says
any initiatives must include the
provision of more parking in
order to retain the convenience
factor for those visiting the
CBD. Discussions around the
submission with the council
are continuing.
“Convenience is one of the
big draw-cards of online and
big box retailers. We need to
make sure local businesses
don’t suffer from a shortage of
parking.”
Brown has been involved
in the Rotorua business scene
for decades.
He owns both the Pig &
Whistle Historic Pub, and
Capers Epicurean, and was
named Red Stag Timber
Business Person of the Year
at last year’s Westpac Rotorua
Business Excellence Awards.
Working with him on the
CBD revitalisation submission
has been Rotorua Chamber of
Commerce chief executive,
Allison Lawton. She says the
time is right to create a “Master
Plan” using professional urban
designers to enhance recent
work done in the city centre.
“We need to attract more
investment into the CBD,”
she said. “We want to ensure
that council budgets for that
in this LTP.”
Both Brown and Lawton
say now is the time to push for
more investment in the CBD.
There are fewer empty shops
ENTRIES ARE ONLINE
wrbea.awardsplatform.com
THE SUPREME WINNER
WILL TAKE HOME THIS
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Early bird closing date: 2 July
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All entries close 19 July
Gala Dinner – 5 October, 2018
Contact: admin@rotoruachamber.co.nz | 07 346 3657

BAY OF PLENTY BUSINESS NEWS May/June 2018 19
Gregg Brown: Online and big box
retailing increasingly taking business
from locals. Photo/Supplied.
in the city and visitor numbers
are increasing steadily. In
January, the city became the
only New Zealand destination
named as one of the world’s
top travel destinations by The
New York Times.
Lawton said the impetus
to craft a submission began
late last year. “Our occupancy
Revamped “shared” intersection of Rotorua’s Hinemoa
and Tutanekai streets: Keeps traffic flowing while
offering seating for pedestrians. Photo/Supplied.
rate recovery put us in the best
position we have been in for
five years, so we know growth
is happening. What we wanted
to find out is what that growth
We have to find a
way to make the CBD
relevant…we must
customise the CBD
for future trends.
might look like over the next
few years.”
The Rotorua Lakes Council
has been beavering away on
an inner-city strategy for several
years, working alongside
retailers and businesses to
bring about change.
Much has already been
done, including the establishment
of an outdoor eating precinct,
revamped intersections
and open “shared zone” and
the creation of new parks and
market spaces.
Brown said that with
upgrades being proposed in
areas immediately adjacent
to the CBD, including more
than $10 million being spent
to upgrade SH30 and Amohau
Street, “the time is right” for
this planning exercise.
“It is imperative council
understands how best to leverage
these investments,” he
said.
Both Lawson and Brown
endorse the Council’s goal of
creating a vibrant city heart, as
stated in the 2030 Vision and
the recent Spatial Plan. They
say what’s needed now is a
comprehensive view of the way
forward, with funding locked
into the 10-Year Plan to drive
further CBD enhancement.
Rotorua LTP needs to
include boost to CBD
Now is the right timing to
build plans for further revitalisation
of the city centre
into the future planning, say
business leaders.
Focus for campus redevelopment: The design concept
for Scion’s new innovation hub. Graphic/Scion
Scion launches innovation hub
Crown forest research institute research
Scion has announced plans to build an
innovation hub in the centre of its Rotorua
campus.
A
$2.5 million grant
from the Bay of Plenty
Regional Council’s
regional infrastructure fund
helped get the multi-million
dollar project underway, which
will become the focal point of
the campus.
The innovation hub is part
of a broader campus redevelopment
that will foster innovation
in the forestry, manufac-
turing, energy and sustainable
land-use sectors, said Scion
chief executive Julian Elder.
The entire campus redevelopment
programme, costing an
estimated $18 million, began
last year with a refit of Scion’s
office block.
In addition to the innovation
hub, the programme includes
upgrades of wood processing
workshops and laboratories
plus pilot-plant facilities. The
redevelopment will also feature
a new landscape plan for
the 112-hectare site aimed at
creating a a more cohesive
environment.
The redevelopment also
follows a laboratory upgrade
in 2012.
“We, and our predecessors,
have a proud history of
innovation on this site, but
to take us into the future, our
aging site needs upgrading,”
said Elder.
“This investment will
give us flexible and fit-forpurpose
facilities that reflect
the world-class science we do
This investment will
give us flexible and
fit-for-purpose
facilities that reflect
the world-class
science we do here.
– Julian Elder, Scion
here. We are creating a unique
and dynamic environment
that will promote innovation,
commercialisation and collaboration
by bringing Scion staff
and industry closer together.
Engaging with the public is
important too, and we will be
opening up parts of the campus
to our neighbours, local community
and tourists.”
Scion worked closely with
Architects RTA Studio and
Irving Smith during the design
phase to ensure the innovation
hub building will be a showcase
for timber and sustainable
building principles.
The hub, to be accessed
from Long Mile Road, will provide
a new entry point to Scion.
The three-level building
will be made up of an exhibition
area, public café, main
reception, meeting rooms, staff
and tenant working spaces.
It will also link to laboratories
and testing facilities.
Construction is expected
to start before the end of
this year, and the new hub
is due to be completed by
December 2019.
Kevin Winters, Bay of
Plenty Regional Councillor for
the Rotorua constituency, said
the project had the potential
to provide a significant boost
to not only the Rotorua economy,
but that of the wider
region, bringing employment,
economic benefits and innovation
that will spill over to
national benefits.
“We’re very pleased to be
able to contribute to getting
the hub underway, through the
Regional Infrastructure Fund,
and look forward to seeing
the development progress,”
said Winters.
By DAVID PORTER

20 BAY OF PLENTY BUSINESS NEWS May/June 2018
HR, MANAGEMENT AND RECRUITMENT
Pay – finding the Goldilocks point
Why benchmarking remuneration is important.
Talent shortages have
become one of the biggest
trends in human
resources.
Companies that were accustomed
to having their pick
of eager candidates are now
finding it harder to attract and
retain top employees.
While any response to a
talent shortage has to be mul-
ti-pronged, an effective remuneration
strategy will be one
of the most important pillars of
any response.
Any firm looking to develop
a compelling offering to
staff will need to consider how
their remuneration compares
across their industry.
Among the most important
purposes for remuneration
Performance
benchmarking is to understand
how individuals with a certain
skill set compare.
A good place to start and
the easiest to have a clear and
unequivocal opinion on is the
market rate of pay.
There isn’t a market rate
The market rate term is so
commonly used that many
people believe it is real.
Unfortunately, it is not real.
There isn’t a market rate of pay
for any job.
So, no magical dollar figure
exists ever, anywhere. Rather,
generally a market range exists
for a job.
Finding the Goldilocks point
The challenge for any employer
is to find a point where
they are rewarding workers
with a salary package that is
in line with their skill level,
but also one where staff aren’t
overpaid.
For hiring managers who
are mindful of their payroll
expenses, overcommitting to
staff pay can create ongoing
financial issues.
Finding this Goldilocks
point - where staff are neither
underpaid nor overpaid
for their responsibilities and
skill sets - is incredibly difficult
without a benchmark
of information from across
comparable roles.
However, once an organisation
has detailed information
on equivalent salaries, it
becomes a lot easier to pinpoint
a middle ground that is
appropriate for a role.
It also becomes a lot easier
to influence staff perceptions
about pay fairness and competitiveness.
Ultimately, having a benchmark
to measure employee
remuneration against is about
making informed business
decisions.
As data becomes increasingly
important at every level
of an organisation, it’s important
to use this information to
drive the firm’s remuneration
strategy.
Cathy Hendry
Senior consultant
Strategic Pay
Tauranga
+ mob 027 498 9812
+ cathy@strategicpay.co.nz
Nigel Murphy
Consultant
Strategic Pay
Hamilton
+ mob 027 403 1242
+ e nigel.murphy@
strategicpay.co.nz
www.strategicpay.co.nz
+
Rewards =
Success
Create Success by Rewarding Performance
At Strategic Pay we understand local businesses and your unique issues.
Talk to us about:
• Organisational Structure and Design
• Remuneration and Reward
• Performance Management
www.strategicpay.co.nz | info@strategicpay.co.nz
Auckland 09 303 4045 Hamilton 07 834 6580 Wellington 04 473 2313
Christchurch03 353 0909 Dunedin 03 479 0637

HR, MANAGEMENT AND RECRUITMENT
BAY OF PLENTY BUSINESS NEWS May/June 2018 21
Test out the utility of
psychometrics
Business owners and managers face daily decisions in order
to effectively manage staff and get the best out of them. That
can include leadership development, succession planning,
needs analysis, performance reviews, candidate selection, and
redundancy considerations.
HUMAN RESOURCES
> BY KELLIE HAMLETT
Director, Recruitment & HR Specialist, Talent ID Recruitment Ltd
But while we may rely
heavily on our intuition,
that should never be the
determining factor in these
decisions.
Good HR managers turn
to decision support tools to
enhance their hire and team
fit management, provide clarity
on succession planning,
and help to identify ways to
increase the productivity of
their existing team.
One widely used instrument
that can provide a good
level of predictive validity is
psychometric testing.
With its origins in 19th century
research, psychological
and literacy testing began on a
mass scale in World War One
for selection and placement of
new recruits.
Once solely the domain
of clinical psychology, over
the past century a plethora of
tests have arrived on the wider
recruitment market looking
at areas such as personality,
intelligence, preferences and
interests.
Some tests are questionable
at best, but others have proven
to be excellent decision-support
tools for businesses.
The use of psychometric testing
can provide expert insight
into the abilities and preferences
of your team, allowing you to
identify and nurture individual
strengths to maximise the benefits
to your business.
Not only are the tests
designed to assist employers
with planning and decision-making,
they also enable
each individual to understand
their own potential.
While these tools are most
frequently used for executive
recruitment and development,
they are becoming more
affordable and are widely used
across every level of the corporate
ladder, from technical roles
right through to customer sales,
service and administration.
One of the most important
factors for anyone looking to
utilise psychometric assessments
is to ensure they use a
reputable provider that is able to
provide professional advice on a
tool that is of a high quality, tailored
to your needs and relevant
to the job you are assessing.
A provider should be able
to advise on the accuracy, consistency
and predictive validity
of an assessment, and should
be properly trained in test
administration.
Organisations should
ensure their provider will be
responsive to their needs.
And they should be able to
provide a professional, confidential
service that supports
them throughout the entire
process, from selection of
the right product, through to
feedback and support to both
the business and the candidate
being assessed.
Employment briefs
Unpaid leave claims mount
A
union
representing
retail workers has been
inundated with hundreds
of complaints after the
Employment Court national
retailer Smith City to back pay
staff on or near the minimum
wage for six years’ worth of
unpaid morning meetings.
The company, which has
more than 30 stores and 400
staff nationwide, has held the
15-minute unpaid meetings for
sales staff for at least the past
15 years.
According to recent media
reports, Workplace Relations
Minister Iain Lees-Galloway is
concerned businesses believe
they can still get away with
practices like unpaid meetings.
First Union, which is surveying
its members on the
issue survey, says complaints
are flooding in.
“Once we have enough
results to ascertain the magnitude
of the problem, we
will be pursuing the employers
involved,” the union’s Tali
Williams said.
The Labour Inspectorate
has also set up a system to
categorise complaints on the
issue, and is calling on employees
who may have missed out
on minimum entitlements to
speak up.
National manager Stu
Lumsden said the businesses
that would need to backpay
staff were those that failed to
comply with the Minimum
Wage Act by getting staff on
or near the minimum wage to
engage in unpaid work.
“This is simply about these
businesses complying with
their obligations – as the vast
majority of New Zealand businesses
do – and paying their
staff at least the minimum
wage for every hour worked.”
Unpaid internships
Unpaid internships can provide
valuable workplace experience
for those volunteering,
but if organisations get it
wrong, they could find themselves
facing a costly lawsuit,
according to a recent article
on Human Resources Director
New Zealand website.
Carl Blake, a senior
associate with Simpson
Grierson’s employment
law group, says unpaid internship
contracts should be carefully
drafted to ensure they
make clear there is no employment
relationship, and the
intern is performing the services
on a voluntary basis.
That means for example,
no reference to any minimum
entitlements that are owed
to “employees”, such as sick
leave and annual holidays.
Blake says organisations
should also be careful they
do not provide any reward
for the services provided by
the unpaid intern – including
non-monetary awards such as
providing lunch or a discount
for the business products.
Charlotte Bates, a senior
associate at Bartlett Law, says
the nature of the work also
has an impact on the potential
legality of unpaid internships.
“If you want someone to
come in and do work that is
an integral part of the business
– but you want to avoid
paying for it – the internship
is not likely to be fair and the
intern could be classified as an
employee.”
Where the employer benefits
from what the intern is
doing, or if the intern is filling
a key role within the business,
they may stray into employee
territory, which would legally
entitle them to pay and all
other standard benefits, and
could expose warns Bates.
V8963L

22 BAY OF PLENTY BUSINESS NEWS May/June 2018
To blog or
not to blog?
If you are regularly writing a blog for your
business – well done. It you’re not, then
you are doing your business a disservice.
Blogging is now a marketing essential
- and it should be a crucial part of your
content marketing strategy.
There are two essential
parts for successful blogging
- you need to create
blogs on useful topics for
your audience. And even more
important, you need to pay
attention to your blog’s distribution.
A blog is a regularly updated
website or web page that
shares information, usually
written in an informal or conversational
style.
For businesses, the purpose
of a blog is to provide your
target audience with regular,
entertaining and informative
content on your product, service
or industry.
Blogs are not limited to just
straight articles. You can use
infographics, case studies, product
reviews and anything that
your customers might value.
One of the key benefits of
a blog is that it helps you to be
found online. There are more
than 1.8 billion websites.
It is not enough that you
have a website, you need to
actively manage your website
to show up in search results.
Your blog is an important part
of your SEO (search engine
But the part of
blogging that is
often overlooked
is distribution.
Ultimately you should
spend more time
on distribution and
getting people to read
your blog, than on its
creation.
optimisation) strategy.
The first essential element in
successful blogging is self-explanatory
and obvious. You
need to create blogs on useful
topics for your audience.
To do that you need to
understand your target audience,
what their pain points
are and what information they
will value.
If you’re struggling for
ideas then think about your
frequently asked questions.
This should provide you with
some good starting points for
topics.
Also look at your website
and social media metrics. See
what types of posts and pages
are the most popular. This
will help steer you to create
content that your audience is
interested in.
We are not all born writers,
so if writing isn’t your thing
then consider outsourcing this
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
part of blogging.
But the part of blogging
that is often overlooked is
distribution. Ultimately you
should spend more time on
distribution and getting people
to read your blog, than on its
creation.
When you have a finished
blog it’s crucial you have a
plan for getting people to actually
read it.
Don’t think your job is
done just because you shared
it on social media once, sent it
out to your email database, and
it’s now live on your website.
It’s likely that only a small percentage
of database and social
media followers will read it
with this approach.
You need to think about
how you can repurpose that
blog. Some simple ways to
do this include pulling out the
main points in your blog and
creating visuals of them.
Aim for four for each blog.
Then share those with a link
to the full blog on your social
media accounts over a sixweek
period.
This means you can share
the one blog four times and
increase reach and engagement.
Or turn the key points into
a video that you can upload
on Youtube, embed in the blog
post, share on social media
and in your email. Videos get
higher engagement across all
platforms than text or images.
Blogging regularly helps
build your brand, credibility
and trust. It’s part of a strategic
approach to winning customers.
Results do take time.
When done well you can create
strong, long-lasting and
more profitable relationships
with your target audience.
Plan your projects
The tech innovations that are now occurring at an increasing rate
can radically affect an organisation - either by bringing significant
improvements, or by putting it at risk. The old adage “failing to
plan is planning to fail” is especially true in IT projects.
TECH TALK
> BY TONY SNOW
Director Stratus Blue Ltd. Tony@stratusblue.co.nz | Mobile
022 122 8669 T 07 777 0010.
According to technology
research giant Gartner,
82 percent of IT projects
fail. A large number of SMEs
do not factor in any planning,
or awareness of the potential
risks that may result from pursuing
the desired outcome.
Spending the time and
money upfront before a project
kicks off, would more often
than not result in savings of
money, time, frustrations and
headaches.
In fact, proper planning and
use of appropriate advisory
services may even result in
the realisation that there was
no need to go ahead with the
project in the first place.
We have heard many times
about companies that wish to
implement a new tool, an innovative
app or widget, adopt
a new package, or “go to the
cloud.”
But in many cases, there
has been no accounting for real
thought or planning
An architect is used to
ensure we do not get our toilet
in the lounge, so it makes
sense that we should employ
professionals or get some
advice on that next application,
user product, or package
The project needs
a clearly defined
director. Not a
manager placed in
the role because he is
available, but someone
who can make sure
the project is tracking
correctly and ask the
right questions.
to integrate with our current
system.
After all, it may not work,
may not be supported next
year, have a limited shelf life,
or be more costly and no more
efficient.
A project needs to be
scoped, planned and developed
with milestones, deliverables,
accountability matrix
and measurements. Otherwise
it will inevitably fail by running
over budget, over time,
lack of testing, or just not get
completed.
Implementing a CRM, job
management tool or inventory
application is not just a case
of picking one off the shelf.
Time and resources need to be
allocated to make sure it is the
right fit for your business, and
for the end user.
There are a number of reasons
why IT projects fail. They
include:
No defined project purpose:
Far too often we’ve asked
why a client is undertaking
a project, and been given the
answer: “Because X… told
me to.”
Organisations need to
understand that why the project
is critical to their mission,
and how it fits into the overall
strategic plan, is a key component
to its success.
No project sponsor. There
may be resource to manage
the project, but if there is no
engagement from a project
sponsor, or no one person
for the project manager to be
accountable to, failure is likely.
The leadership team may
not even realise the company
is involved in a project, and
therefore fail to ensure there
is appropriate planning and
support.
Get the right person leading
the project. If you assign the
wrong person to a task, you
are reducing your chances of
success before the project even
begins.
The project needs a clearly
defined director. Not a manager
placed in the role because he
is available, but someone who
can make sure the project is
tracking correctly and ask the
right questions.
Set clear expectations.
Make sure each team member
is clear about what is expected
and when.
A lot of times, organisations
take on tasks that get all
stakeholders really excited and
anxious, and then emotions
take over.
Starting with a clearly
defined set of expectations and
a plan can alleviate much of
the stress of implementing a
major project.
Make sure everyone understands
the limitations, the outcomes,
the plan and their role
in the project.

BAY OF PLENTY BUSINESS NEWS May/June 2018 23
Fools and their gold are soon
parted without due diligence
With signs of growth emerging in the wider Bay of Plenty (BOP)
and baby boomers looking to retire from business, the attractions
of self employment are popular throughout our region with both
locals and out-of-town investors.
MONEY MATTERS
> BY STEPHEN GRAHAM
Stephen Graham is director and managing partner at BDO Rotorua,
Chartered Accountants and Advisers. To find out more visit bdorotorua.co.nz
or email rotorua@bdo.co.nz
But where there is opportunity,
there is also risk,
so it’s time for a cautionary
tale.
It’s about the importance
of seeking professional help
when assessing the viability
of a business opportunity. This
is the crucial process of due
diligence, which will include
seeking the advice of your
accountant and solicitor.
I find it frustrating when
due diligence isn’t completed,
or advice is sought from the
wrong people. Sometimes, the
cost of seeking the advice is a
barrier.
However, if someone is
using their personal assets as
collateral, including mortgaging
a family home, it is well
worth doing the due diligence
correctly.
So here’s the tale. A few
years back, I was approached
by someone wanting to purchase
a business in Rotorua.
The broker was marketing
the business with a Return on
Investment (ROI) of 30 percent.
This means the investor
would make $120,000 from
the $395,000 purchase price,
which got the attention of the
proposed purchaser.
The gospel that is Wikipedia
defines ROI as a metric to
measure, per period, rates of
return on money invested in
an economic entity in order
to decide whether or not to
undertake an investment.
I would note that I am not
an investment adviser, but I
am qualified to use a calculator
and crunch numbers to
help the purchaser make an
informed decision.
At this point, the prospective
purchaser could have
taken two paths and he correctly
entered into an agreement
for purchase, with due diligence
clauses included. Due
diligence was completed and a
report issued.
And at that point,
everything came to a grinding
halt, from his perspective. His
question was, “how can your
figures differ so much from
what I have been referring to
previously?”
I refer to our friend
Wikipedia again, which goes
on to state that “the calculation
for ROI and, therefore the definition,
can be modified to suit
the situation - it all depends
on what you include as returns
and costs”.
Confused? This flexibility
in calculation is the reason
why you really should complete
a proper due diligence
process.
The flexibility is there to
enable the purchaser to factor
in their personal situation, i.e.
how they will run the business.
But at no time should a ROI
exclude a wage for the owner/
operator. This is one item that
really put me at odds with
some brokers – the assumption
that the owner/operator would
work for free.
Remember, this is a Return
on investment, not a Return
for effort. Factor in a management
wage and in the case of
this example, the ROI dropped
to 15 percent.
At least half of that return
would then go in interest to
the bank, a portion would be
set aside for future capital
expenditure associated with
asset depreciation, all of which
ultimately left a much attractive
ROI for this purchaser.
This due diligence process
doesn’t mean that the business
was not a good business - it
was a great business.
But the risk to my client,
given that they were risking
their freehold house, leaving
a well-paid job, moving to an
industry that was foreign to
them, in a city they knew little
about, was probably not going
to be worth the asking price.
For every story like this
where danger has been averted,
I have one that does not
end well. Watching a business
crumble, followed by personal
bankruptcy and then a marriage
breakdown, is not something
you wish on anyone.
And that is why I am so
passionate about ensuring that
all business investors make
fully informed decisions.
Independent and expert
advice from someone who
does not have a vested interest
in your purchase will
help ensure that your gold
is protected.
Budget reaction
– ho hum
Labour’s first Budget, presented by Finance Minister
Grant Robertson, contained no surprises.
WHAT TO DO WITH YOUR MONEY
> BY BRETT BELL-BOOTH
Investment Adviser with Forsyth Barr Limited in Tauranga.
Phone: (07) 577 5725 or email brett.bell-booth@forsythbarr.co.nz
One could be cynical in
thinking there seems
to be little difference
between National and Labour
governments when budgets are
compared.
There is some tinkering at
the edges, some priorities that
change, but at the end of the
day, so long as the economy
is in good shape and growing;
interest rates remain stable;
inflation remains low; then for
most people all is well with
the world.
As expected, pre-Budget
announcements of increased
funding to Health and
Education sectors were confirmed,
together with increased
funding for state houses.
The economy remains in
good shape, as do the government’s
books, with increased
spending on social services
being funded by an increased
tax take from continued economic
growth, the savings
from shelving National’s tax
cuts, and less debt repayment.
The financial market reaction
to the Budget was muted.
Markets do not like surprises,
and this budget has not delivered
any.
The initial change on the
local sharemarket was mildly
positive, but this was more
reflective of underlying economic
fundamentals than anything
political.
Similarly, as of late May,
the New Zealand Dollar had
moved little, and bond yields
remained largely unchanged.
It seems it is business as
usual.
However, from a business
perspective the Budget was
disappointing.
Building companies may
benefit from the increased
spending on hospitals, schools
and state houses, but they will
be constrained by the ongoing
problem of skilled staff
shortages. It is unlikely that
high property prices are going
to be affected by anything
announced.
The pre-election promise
of capping immigration has
not been trumpeted, probably
because of the government’s
realisation that numbers are
needed to fill the labour shortages
in areas such as horticulture
and the trades.
The retail sector may
see some positives from the
announced higher spending
measures, just from more
money in the economy.
However, the benefit is not
expected to be as much as
what might have come from
National’s tax cuts.
Hoped for Infrastructure
spending announcements were
notable for their absence, and
it would seem this funding is
being directed to more regional
initiatives.
Enhanced research and
development benefits were
also hoped for, but absent.
Exporters and business in general
have been left to continue
on as before.
From an investor’s perspective,
a Budget of few surprises
is a good one.
It means the focus can
remain on business fundamentals,
which are influenced more
by a sound local economic
backdrop, and the global economic
climate, than political
announcements.
After the drop in business
and consumer confidence post
the election, which would
seem to have been driven by
uncertainty around the impact
of Labour’s policies, we may
see a recovery following
Budget 2018.
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.

24
Bay of plenty
CONNECTING
BUYERS AND
SELLERS OF
QUALITY
BUSINESSES
First on the scene
May’s Business After Five networking event, jointly hosted by Apricity
and CBK Tauranga, at CBK Tauranga on Wednesday May 2nd.
Photos / Helen Chapman Photography
When is the right time to sell
your business? Right now.
At TABAK, we promise to guide
you through the sales process
with focus, integrity and
complete confidentiality.
1 2
1 Steve Marshall, Beca and Billy Emeny, CBK. 2 Alan Hewitt, Apricity.
FOCUS • INTEGRITY
CONFIDENTIALITY
3 4
3 Stan Gregec, Tauranga Chamber of Commerce. 4 Julia Luebke and Ylja Mulder, Eurofins Bay of Plenty.
WHY TABAK
INDUSTRY EXPERIENCE
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5 Gail Page, Positive Pathways and Dinnel Bailey-Gordon, Simply Law. 6 Mydawny Nairn-Kusabs, Bridge It and Barry
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TEAM APPROACH
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P5177Y
147 Cameron Road
p. 07 578 6329
e. tauranga@tabak.co.nz
w. tabak.co.nz
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7 Tami Hadfield, Flowers by Tami and Chris Turner, Balanced Success. 8 Shay Kumar, Beca, Craig Schubauer,
Trustpower, and Eddie Jackson, Grief Support Services.

Helping you
get connected
25
The Business Market
Pictures from the latest Business Market, held at Classic Flyers, Tauranga,
one of the many held monthly across the Bay of Plenty in Business-Friendly Cafes.
For more information, download the FREE Business Market APP
or visit www.thebusinessmarket.org
Photos by Out and About / Sue Wilson
1 2
1 Gari Dos Santos, Share and Di Sandford, Business Banking Manager, ANZ. 2 Lee Shepherd, Combibo Brett Yeatman CEO,
The Business Market, and Leo Lougher, Aqua Trip NZ.
HUMANISING
TECHNOLOGY
FROM GROUND TO CLOUD
Your Business Outsourced
IT Department
3 4
3 Keith Woodcock, Stratus Blue, Celeste Moffat, Papamoa Surf Life Saving Club, and Linda Crosby, Venus. 4 Tami Hansen,
Flowers By Tami and Janice Tetley-Jones, Pregnancy Choice.
At Stratus Blue we provide
transparent, budget-friendly
service options, personable staff
and commitment to the business
community.
Whether a sole trader or a large
business, you can reduce your
technology headaches with a cost
effective outsourced IT department.
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5 Emil Verster, Homes Of Hope and Stan Gregec CEO, Tauranga Chamber Of Commerce. 6 Vanesa Dodumski, EnableMe
and Rachel Cole, Harcourts.
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7 Murray Maunder, Vision Productions, Riaan Alers, The ProGroup, and Colin Bower, Driveline. 8 Kerry Liddell, Smile From
The Inside Out and Janine Gartner, Taxagent99 and Local Connector for The Business Market. For more information contact
info@thebusinessmarket.org
Contact us today to discuss your
IT needs over a FREE Coffee
0800 2 ASSIST
assist@stratusblue.co.nz
TAURANGA - Third Avenue, CBD
WHAKATANE - Boon Street, CBD

Bay of plenty
TAURANGA
MAGAZINE
Rotorua
Hamilton
newsletter
news
26 BAY OF PLENTY BUSINESS NEWS May/June 2018
Ethical marketing and
the use of customer data
The recent Cambridge Analytica saga has highlighted the wide
range of views people hold when it comes to the use of information
gathered about them online.
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.
Cambridge Analytica
allegedly used data
gathered via a personality
quiz app called thisisyourdigitallife
to target
Facebook users with political
propaganda during the 2016
general election.
The quiz app, developed
by University of Cambridge
professor Aleksandr Kogan,
collected data about tens of
millions of people without
their explicit permission.
The ensuing moral outrage
fuelled coverage of the scandal
around the globe. As a
result, Cambridge Analytica
and parent company SCL
have begun insolvency proceedings
and many internet
giants have revised their privacy
policies – Facebook and
Google included.
The case highlights some
of the new ways people’s data
is being gathered and sold
by private companies. And it
provides a perfect example
of how technological change
can challenge moral standards
and existing state laws
and legislation.
New technologies and
the marketing opportunities
afforded by social media are
forcing companies to consider
questions around how they use
the information they gather.
It’s easier than ever before
to reach the right people, at
the right time, with the right
message, but doing that in
a way that is acceptable for
the customer can sometimes
be challenging.
One misstep and you risk
reputational damage, which
can have a considerable financial
impact on your business.
It’s not always easy to know
where the moral line is. Not
long ago a Facebook business
group I’m involved in erupted
into heated debate following
one business’ decision to send
a direct message to thousands
of people within the group.
It’s not unusual for people
to promote their business
or services in public posts
on the group’s page, but this
member’s decision to directly
contact a large proportion of
the group’s database with a
generic canned message, via
Facebook’s direct messaging
functionality, created a backlash
and attracted scorn.
The use of cookies to track
visitors to various websites
and then serve ads up to them
on other platforms they visit
online is another area that can
cause unease.
Most readers will have
noticed advertisements for
products they have recently
looked at online or mentioned
in an email popping up on their
social media accounts.
This practice is made possible
by small pieces of web
code (cookies), which are
downloaded onto people’s
internet browsers when they
visit a site. These cookies can
act as markers and allow businesses
to target advertising to
people who have previously
visited websites they own.
I recently spoke to a
Wellington-based chief executive
who was frustrated and
outraged by seeing advertisements
that seemed to follow
him around on every website
he visited.
He felt it was an invasion of
his privacy and refused to consider
it in his business. You can
guarantee that if he feels this
way, many other Kiwis do too.
In the email space the law
is more prescriptive, but again
there are some moral grey areas
and inconsistencies with conventional
postal mail etiquette.
For example, there are few
legal limits on who can send
you circulars in your physical
mailbox, but companies are
required to have your permission
before they add you to
their email mailing list.
New Zealanders think little
of receiving irrelevant advertisements
in the post, but their
blood tends to boil when the
same material finds its way
into their email inbox.
The difference in response
from when they receive circulars
in their mailbox is
interesting.
Perhaps we have become
desensitised to circulars or feel
that email advertising received
during the working day is more
distracting? Or maybe it’s just
easier to put a “no junk mail”
sign on your physical mailbox
than it is on your email inbox?
Whatever the case, it’s
becoming more and more critical
for business owners to think
about the technologies they
use, the data they gather, and
how they harness those tools to
reach prospective buyers.
This issue is about more
than what the law says – after
all many of our laws are dated.
The question of what your customers
see as morally acceptable
can be just as important.
Regardless of whether it’s
legal, if your customers don’t
like it, it has the potential to
sink your business.
Bay of plenty
“
The Voice of Business in the Bay”
Bay of plenty
“
The Voice of Business in the Bay
”
“
Engaged regional
papers provide
advertisers with
extra value.
PRINT
“
PRINT
Build your business
”
with the regions
most trusted form of
media, Print.
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Business News for
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New Zealand’s most
vibrant economic
region.
The written word gives your business:
”
Recognition | Credibility | Influence
Business News
HOME SHOW
The written word gives your business:
Recognition / Credibility / Influence / Results
www.bopbusinessnews.co.nz

Buying a Business?
Visit The Law Shop First!
Buying an existing business instead of
starting one from scratch can make good
sense. You can skip the precarious start-up
phase and hit the ground running. That’s
exciting, but it comes with a whole lot of
new responsibilities, new premises, new
staff, new customers, perhaps a whole new
industry.
BAY OF PLENTY BUSINESS NEWS May/June 2018 27
As this is going to be
your livelihood, you’ll
need to know exactly
what you’re getting into.
Paula Lines and her team at
The Law Shop provide expert
legal advice on all of
the aspects of purchasing a
business, from the purchase
agreement to the lease, so you
can complete your business
purchase with confidence.
If your new business
is a franchise, we
can go through the
Franchise Agreement
with you, and help you
understand all aspects
of it so there are no
surprises later on.
Once you’ve done all
the research and found the
business you want to buy,
it’s time to formally register
your interest. From here on,
you can start due diligence
— finding out exactly what
assets, liabilities and commercial
potential the business
has. Before sharing this detailed
information with you,
the seller may insist that you
sign a non-disclosure agreement
to prevent you from
using it for any purpose other
than buying the business.
“Any documents you are
asked to sign at this early
stage should be shown to a
lawyer to ensure you are not
making any unwise legal
commitments. At The Law
Shop, we can explain it all
to you in everyday terms. We
will prepare all the legal documentation
you need for the
purchase and guide you along
in the process from start to
finish,” Paula says.
“If your new business is a
franchise, we can go through
Paula Lines, Commercial Lawyer at The Law Shop.
the Franchise Agreement with
you, and help you understand
all aspects of it so there are
no surprises later on.”
Does your new business
require legal advice about
whether to operate through a
company, a partnership or as
a sole trader; about business
agreements, or other legal issues?
Get the ball rolling and
give The Law Shop a call for
an initial consultation. It can
even be done via Skype.
Good advice is worth far
more than it costs and Paula
and her team at The Law
Shop will help direct you toward
success. Call them on
0800 LAW SHOP (0800 529
7467) or email team@thelawshop.co.nz.
ROTORUA
1268 Arawa St
Rotorua
TAURANGA
1262 Cameron Rd
Greerton

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