Bay of Plenty Business News May/June 2018

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

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.

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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

INFORMATION

PUBLISHER

Alan Neben

Ph: (07) 838 1333 Mob: 021 733 536

Email: alan@nmmedia.co.nz

SALES DIRECTOR

Deidre Morris

Ph: (07) 838 1333 Mob: 027 228 8442

Email: deidre@nmmedia.co.nz

EDITOR

David Porter

Mob: 021 884 858

Email: david@nmmedia.co.nz

STUDIO MANAGER

Tania Hogg

Ph: (07) 838 1333

Email: production@nmmedia.co.nz

GRAPHIC DESIGNER

Kelly Milne

Ph: (07) 838 1333

Email: kelly@nmmedia.co.nz

ADVERTISING

INQUIRIES

Please contact:

ACCOUNT DIRECTOR

Vanessa Lee

Mob: 021 715 225

Email: vanessa@nmmedia.co.nz

BUSINESS DIRECTOR

Pete Wales

Mob: 022 495 9248

Email: pete@nmmedia.co.nz

ELECTRONIC

FORWARDING

EDITORIAL:

News releases/Photos/Letters:

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Neben Morris Media specialises

in business publishing,

advertising, design and print

media services.

Bay of Plenty Business News has

a circulation of 8000, distributed

throughout Bay of Plenty between

Waihi and Opotiki including

Rotorua and Taupo, and to a

subscription base.

Bay of Plenty Business News

Suite 4, 117 Willow Street

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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…

...by joining the Chamber.

Join Tauranga Chamber members

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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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

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All entries close 19 July

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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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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

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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



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papers provide

advertisers with

extra value.

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with the regions

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Business News for


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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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