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Bay of Plenty Business News November/December 2018

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

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

NOVEMBER/DECEMBER <strong>2018</strong> VOLUME 3: ISSUE 11 WWW.BOPBUSINESSNEWS.CO.NZ FACEBOOK.COM/BOPBUSINESSNEWS<br />

Westpac Tauranga<br />

<strong>Business</strong> Awards<br />

JENKINS<br />

FRESHPAC’S<br />

INNOVATIVE<br />

APPROACH WINS<br />

TOP AWARD<br />

By DAVID PORTER<br />

Jenkins Freshpac Systems<br />

– which has built on its<br />

136-year heritage by<br />

incorporating a highly innovative<br />

approach to using technology<br />

in the horticultural sector<br />

– took out the overall win at<br />

this year’s Westpac Tauranga<br />

<strong>Business</strong> Awards.<br />

Jenkins Freshpac also won<br />

Vodafone’s Embracing Digital<br />

Technology Award, and the<br />

You Travel Service Excellence<br />

category.<br />

Major kiwifruit grower and<br />

post-harvest operator Seeka<br />

won the University <strong>of</strong> Waikato<br />

Corporate Leadership award.<br />

The company has evolved<br />

over the years from a post-harvest<br />

business to New Zealand’s<br />

largest kiwifruit grower and<br />

specialised supply chain management<br />

company, with operations<br />

around New Zealand and<br />

in Australia.<br />

A new award category <strong>of</strong><br />

Corporate Sponsorship sponsored<br />

by Air New Zealand<br />

was taken out by Carrus Corp,<br />

against strong competition<br />

from many <strong>of</strong> the region’s<br />

leading businesses and highlighted<br />

the contribution the<br />

sector makes to the community.<br />

Organisers noted that the<br />

corporate sector’s contribution<br />

comes directly <strong>of</strong>f their bottom<br />

line, and was important to<br />

acknowledge their contribution.<br />

(Detailed coverage <strong>of</strong> all<br />

award winners can be found<br />

on our special feature on pages<br />

12-17 <strong>of</strong> this issue).<br />

“This year we continued to<br />

see local businesses embracing<br />

technology as the cornerstone<br />

for carefully considered and<br />

well-structured strategy,” said<br />

head judge Andrew Hitchfield<br />

<strong>of</strong> Vodafone.<br />

“We felt that regardless<br />

<strong>of</strong> the original motivation for<br />

entering the awards the process,<br />

which combines rigour<br />

plus internal review and external<br />

assessment, makes the process<br />

beneficial for all.”<br />

Stan Gregec, chief exec-<br />

Jenkins Freshpac chief executive Jamie Lunam and his team<br />

celebrate the company’s wining <strong>of</strong> the overall award.<br />

utive <strong>of</strong> award organiser,<br />

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

Commerce, said the awards’<br />

strength sat with the high calibre<br />

<strong>of</strong> judges who all put in<br />

hours <strong>of</strong> time and expertise<br />

to visit each entrant. Their<br />

feedback on their assessment<br />

is regarded as one <strong>of</strong> the<br />

strong benefits to entering the<br />

awards.<br />

“This year we had a very<br />

high standard <strong>of</strong> entrants, with<br />

a strong focus on technology<br />

and particularly in the kiwifruit<br />

sector,” said Gregec.<br />

Robotics Plus<br />

Yamaha ups investment in<br />

<strong>Bay</strong> company<br />

P6<br />

The Seeka team celebrates the Corporate Leadership win with chief executive Michael<br />

Franks. Photos by Natalie Murdoch Photography, courtesy Tauranga Chamber <strong>of</strong> Commerce.<br />

This year we continued<br />

to see local businesses<br />

embracing technology<br />

as the cornerstone for<br />

carefully considered<br />

and well-structured<br />

strategy.<br />

– Andrew Hitchfield,<br />

Vodafone, head judge<br />

Livingstone<br />

Papamoa project boosts<br />

builder’s <strong>Bay</strong> presence<br />

P18<br />

Franchising<br />

Sector still strong for new<br />

business owners<br />

P32


2 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/<strong>December</strong> <strong>2018</strong><br />

We support<br />

kiwi business.<br />

So you can keep<br />

businessing.<br />

To find out how 2degrees can help<br />

your business contact Andy Bell<br />

on 022 200 0256<br />

MC9312A<br />

MC9312A BUS <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> FP ad V1.indd 1<br />

15/08/18 11:55 AM


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

3<br />

Kiwifruit to milk for <strong>Bay</strong>’s McBride<br />

Zespri’s retiring chairman Peter McBride has made the step<br />

from one large primary producer to another with his election in<br />

<strong>November</strong> to the Fonterra board to fill one <strong>of</strong> three vacancies.<br />

By RICHARD RENNIE<br />

Bruce Cameron<br />

His election at the AGM<br />

sent a resounding message<br />

from farmer shareholders<br />

about their level <strong>of</strong><br />

dissatisfaction with the previous<br />

board.<br />

McBride’s appointment<br />

accompanied that <strong>of</strong> former<br />

director Leonie Guiney, who<br />

had been muzzled by Fonterra<br />

directors after missing out on<br />

being re-elected last year.<br />

One director position<br />

remained unfilled as remaining<br />

candidates did not reach<br />

the required 50 percent level<br />

<strong>of</strong> support.<br />

Tauranga-based McBride<br />

announced in October his<br />

decision to step down from<br />

his five-year chairmanship in<br />

February 2019.<br />

He will be replaced by deputy<br />

chairman Bruce Cameron,<br />

a long-time kiwifruit grower<br />

who has been a director <strong>of</strong><br />

Zespri since 2010.<br />

McBride’s departure from<br />

Zespri marks the end <strong>of</strong> a<br />

17-year stint on the kiwifruit<br />

marketing group’s board,<br />

and he played an instrumental<br />

role in the industry’s<br />

re-establishment in the<br />

post-Psa environment.<br />

Describing that period to<br />

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

as the start <strong>of</strong> a “very long<br />

dark tunnel,” he and then-chief<br />

executive Lain Jager were able<br />

to convince growers to commit<br />

$25 million <strong>of</strong> their own<br />

cash to match the government<br />

dollar for dollar to get the<br />

industry back on its feet after<br />

the outbreak.<br />

Eighteen months after the<br />

<strong>November</strong> 2010 outbreak,<br />

Jager and McBride presented<br />

bankers with a road map<br />

to financial recovery for the<br />

industry, with the Gold 3 kiwifruit<br />

variety being the centrepiece<br />

as an alternative more<br />

Psa-tolerant variety to the devastated<br />

Hort16a species.<br />

“Really the risk was asymmetrical,”<br />

said McBride. “It<br />

was a far greater risk to do<br />

nothing, than to do what we<br />

presented, despite it being<br />

unproven.”<br />

From that point the industry’s<br />

fortunes have taken an<br />

almost unbroken upswing.<br />

Orchard gate returns have<br />

doubled, orchards are selling<br />

for $1.1 million per ha, and<br />

overseas markets are clamouring<br />

for a fruit variety more popular<br />

than the one it replaced.<br />

But the Psa outbreak<br />

was closely followed by the<br />

Chinese importing scandal that<br />

We have<br />

demonstrated<br />

time and again the<br />

cohesiveness <strong>of</strong> our<br />

[kiwifruit] industry<br />

and our ability to<br />

act in its common<br />

interest.<br />

– Peter McBride<br />

resulted in a Zespri staff member<br />

being imprisoned in China,<br />

Zespri repaying thousands in<br />

forgone customs, and being<br />

subjected to a Serious Fraud<br />

Office inquiry in New Zealand<br />

over possible tax evasion. That<br />

investigation did not find evidence<br />

<strong>of</strong> such activity.<br />

Zespri moved to become<br />

the “importer <strong>of</strong> record” for<br />

China, removing the rights<br />

from its China-based importer<br />

and taking complete control<br />

over the distribution chain.<br />

McBride said the entire episode<br />

taught Zespri some valuable<br />

lessons, particularly about<br />

not compromising on values,<br />

and learning to send clear,<br />

sometimes blunt, messages to<br />

the market about the intention<br />

to retain those values.<br />

Zespri has been committed<br />

to a “one company, one<br />

culture” philosophy, built on<br />

integrity in supplier-distributer<br />

relationships.<br />

Peter McBride<br />

“Our kiwifruit industry has<br />

stepped through a number <strong>of</strong><br />

challenges, but we have demonstrated<br />

time and again the cohesiveness<br />

<strong>of</strong> our industry and<br />

our ability to act in its common<br />

interest,” said McBride.<br />

Dairying background<br />

McBride’s move to Fonterra<br />

is one he is well-equipped to<br />

make. He began his career as<br />

a sharemilker with his wife<br />

Linda, before moving from<br />

South Waikato to Te Puke<br />

and converting a dairy unit to<br />

one <strong>of</strong> the country’s first Gold<br />

kiwifruit orchards in 1999.<br />

He is also chief executive <strong>of</strong><br />

Trinity Lands, a large dairying<br />

and orchard enterprise based<br />

largely in South Waikato.<br />

In stepping up to his new<br />

role at Fonterra, McBride has<br />

acknowledged it is still early<br />

days for him to get under the<br />

hood <strong>of</strong> the country’s largest<br />

company.<br />

However, he maintained the<br />

co-operative needed to have a<br />

better base understanding <strong>of</strong><br />

what its key strategy is, and the<br />

reasons why it exists.<br />

He noted how quickly the<br />

co-operative has dropped its<br />

“Velocity” and “Volume” components<br />

from its “3V” strategy<br />

launched by previous chief<br />

executive Theo Spierings.<br />

McBride said one <strong>of</strong> his<br />

early tasks on the board would<br />

be to work on rebuilding<br />

farmer shareholder trust in<br />

Fonterra, which has been eroded<br />

over recent years.<br />

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

CONTACT<br />

INFORMATION<br />

PUBLISHER<br />

Alan Neben<br />

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

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

SALES DIRECTOR<br />

Deidre Morris<br />

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

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

EDITOR<br />

David Porter<br />

Mob: 021 884 858<br />

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

STUDIO MANAGER<br />

Tania Hogg<br />

Ph: (07) 838 1333<br />

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

GRAPHIC DESIGNER<br />

Kelly Milne<br />

Ph: (07) 838 1333<br />

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

ADVERTISING<br />

INQUIRIES<br />

BUSINESS DIRECTOR<br />

Pete Wales<br />

Mob: 022 495 9248<br />

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

ELECTRONIC<br />

FORWARDING<br />

EDITORIAL:<br />

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

david@nmmedia.co.nz<br />

PRODUCTION:<br />

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

production@nmmedia.co.nz<br />

SUBSCRIPTIONS:<br />

info@nmmedia.co.nz<br />

Neben Morris Media specialises<br />

in business publishing,<br />

advertising, design and print<br />

media services.<br />

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

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

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

Waihi and Opotiki including<br />

Rotorua and Taupo, and to a<br />

subscription base.<br />

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

Suite 4, 117 Willow Street<br />

Tauranga, 3110<br />

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

www.bopbusinessnews.co.nz<br />

12 Mill Street, Hamilton<br />

PO Box 1425, Hamilton, 3240<br />

Ph: (07) 838 1333<br />

www.nmmedia.co.nz<br />

From the editor<br />

It’s the time <strong>of</strong> the year when<br />

business awards become a<br />

focus for local business.<br />

The Westpac Tauranga<br />

Awards - now hosted in the<br />

city for almost three decades<br />

- drew a full house at <strong>Bay</strong><br />

Arena, with Jenkins Freshpac<br />

Systems taking out the top<br />

accolade this year.<br />

Innovation was again a<br />

major awards focus. Jenkins<br />

Freshpac also won the<br />

Embracing Digital Technology<br />

and the Service Excellence<br />

Awards, as well as making<br />

the finals in the Customer<br />

Experience and Workplace<br />

Safety Awards.<br />

Jenkins Freshpac is typical<br />

in some ways <strong>of</strong> the businesses<br />

in the region. The company<br />

relocated from Auckland in<br />

2013 and opened a new purpose-built<br />

facility in Tauriko.<br />

And it has continued to<br />

build a strong position across<br />

the horticultural sector for<br />

its sophisticated labeling and<br />

packaging technology and<br />

services.<br />

Please see our cover story<br />

overview on page one and full<br />

details on pages12-17 for more<br />

about the local companies that<br />

were recognized this year.<br />

The Te Puke <strong>Business</strong><br />

Excellence Awards have now<br />

been running for a decade with<br />

Jellicoe Industrial Park, run<br />

by John and Warren Dohnt,<br />

taking out this year’s Supreme<br />

Award.<br />

“It’s an accolade to be<br />

judged by the rest <strong>of</strong> your peers<br />

and to come out on top,” said<br />

John Dohnt. “It means you must<br />

be doing something right.”<br />

Meanwhile, long time<br />

Zespri chairman Peter McBride<br />

- who played a key role during<br />

the Psa crisis - has retired,<br />

effective next February.<br />

The interesting move freed<br />

him up to join the board <strong>of</strong><br />

dairy giant Fonterra board.<br />

McBride’s election to the<br />

Fonterra board accompanied<br />

that <strong>of</strong> former director Leonie<br />

Guiney, who had been muzzled<br />

by Fonterra directors.<br />

And it sent a resounding<br />

message from dairy farmer<br />

shareholders about their dissatisfaction<br />

with the previous<br />

board’s performance.<br />

McBride will be replaced<br />

as Zespri chairman by deputy<br />

chairman Bruce Cameron.<br />

In a positive move for local<br />

agri-tech, Yamaha Motor Co<br />

has made a follow-up investment<br />

in <strong>Bay</strong> company Robotics<br />

Plus, bringing its total funding<br />

David Porter<br />

commitment to US$10 million<br />

(NZ14.6 million).<br />

Yamaha formed a partnership<br />

agreement with Robotics<br />

Plus in <strong>2018</strong>, when the<br />

Japanese company made its<br />

initial investment.<br />

The funding will support<br />

the company’s growth plans,<br />

said Steve Saunders, co-founder<br />

and chairman <strong>of</strong> Robotics<br />

Plus, who is currently establishing<br />

a US subsidiary for the<br />

company.<br />

Kiwifruit growers and<br />

packers have welcomed the<br />

increase in the number <strong>of</strong><br />

workers on the Recognized<br />

Seasonal Employment (RSE)<br />

scheme.<br />

First started 11 years ago,<br />

the RSE scheme allowed<br />

5000 workers from the Pacific<br />

Islands to work in the horticultural<br />

sector on part time<br />

picking and pruning work.<br />

That number has since<br />

swollen to 11,100 last year and<br />

is now due to increase by 1750<br />

for this harvest season.<br />

However, the industry is<br />

facing a tough task as New<br />

Zealand employment figures<br />

reach all-time highs, achieving<br />

a 68 percent participation rate<br />

for the September quarter, and<br />

with the 3.9 percent unemployment<br />

rate the lowest since the<br />

global financial crisis.<br />

Congratulations<br />

to the winners <strong>of</strong> the<br />

Westpac Tauranga <strong>Business</strong> Awards <strong>2018</strong>!<br />

Successful businesses plan ahead. At Ingham Mora our diverse<br />

team <strong>of</strong> business savvy experts can help you to achieve success<br />

and clarify your future direction.<br />

If you want to be an award winning business and start your new<br />

year <strong>of</strong>f right, call our <strong>of</strong>fice today to book a business planning<br />

session with one <strong>of</strong> our Directors.<br />

Experience. The difference adds up.<br />

07 927 1200 | 60 Durham St, Tauranga | www.inghammora.co.nz


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

5<br />

Trustpower reports six<br />

month pr<strong>of</strong>it <strong>of</strong> $65 million<br />

Trustpower’s half year result came in at $64.9 million, down on<br />

the equivalent period last year, but up on 2016. The company<br />

has revised its guidance for the current financial year to be<br />

in the range <strong>of</strong> $215- $235 million on an EBITDAF basis. The<br />

guidance assumes average hydrology and current forward<br />

wholesale electricity prices.<br />

By DAVID PORTER<br />

Trustpower chief executive<br />

Vince Hawksworth told<br />

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

<strong>News</strong> that the figures reflected<br />

the impact <strong>of</strong> selling out <strong>of</strong><br />

its Australian hydro interests,<br />

effectively from the beginning<br />

<strong>of</strong> the current financial year.<br />

“Last year we had an<br />

incredibly good run <strong>of</strong> fortune<br />

with respect to the hydro<br />

inflows,” said Hawksworth.<br />

“When you back out the<br />

exceptionally high hydro<br />

inflows last year and high prices,<br />

this year, hydro inflows are<br />

still higher than the long term<br />

average,” he said.<br />

For the half year, generation<br />

volumes were up 70 GWh,<br />

six per cent higher than long<br />

run averages but 12 percent<br />

below the highly favourable<br />

levels <strong>of</strong> the previous half year<br />

period.<br />

Wholesale prices also<br />

trended closer to long run averages,<br />

resulting in Trustpower’s<br />

generation performance being<br />

lower than HY<strong>2018</strong>, but higher<br />

than HY2017.<br />

Hawksworth said growth<br />

in the number <strong>of</strong> electricity<br />

connections had been relatively<br />

flat, the electricity end <strong>of</strong><br />

the market had been incredibly<br />

competitive, but growth <strong>of</strong><br />

the bundled customers <strong>of</strong> telco<br />

connections had been good.<br />

Telco connections up<br />

Trustpower’s telco customer<br />

numbers reached 91,000, up<br />

11,000 or 14 percent on the<br />

same time last year.<br />

Total utility accounts<br />

reached 399,000, up 2000<br />

from 31 March <strong>2018</strong>, while<br />

customers with two or more<br />

products rose two percent to<br />

102,000.<br />

Hawksworth noted the<br />

majority <strong>of</strong> Trustpower electricity<br />

customers were outside<br />

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

Overall retail revenues <strong>of</strong><br />

$487.4 million were in line<br />

with the same period last year.<br />

However, retail earnings<br />

TRUSTPOWER SIX MONTHS<br />

RESULTS TO SEPTEMBER <strong>2018</strong><br />

• Operating earnings (EBITDAF) <strong>of</strong> $129.6 million,<br />

down 15%<br />

• Underlying earnings after tax <strong>of</strong> $64.7 million, down<br />

$17.6 million or 21%<br />

• Fully imputed interim dividend <strong>of</strong> 17 cents and<br />

unimputed special dividend <strong>of</strong> 25 cents payable on<br />

7 <strong>December</strong> <strong>2018</strong><br />

Vince Hawksworth: Telco<br />

connections increasing.<br />

Photo/Supplied.<br />

were slightly down due to<br />

investment in capability.<br />

Chair Paul Ridley-Smith<br />

said the company’s results<br />

reflected a strong retail business,<br />

sound management <strong>of</strong> its<br />

27 generation schemes across<br />

New Zealand and its commitment<br />

to delivering longterm<br />

sustainable value for<br />

investors.<br />

Operational highlights<br />

included the refurbishment<br />

<strong>of</strong> two generators at<br />

the Coleridge Scheme, and<br />

the successful migration <strong>of</strong><br />

13,000 new customers with<br />

17,000 electricity connections<br />

over to Trustpower following<br />

the acquisition <strong>of</strong> the King<br />

Country Energy Limited retail<br />

business.<br />

Trustpower now has New<br />

Zealand’s fourth- largest fixedline<br />

internet service provider<br />

customer base.<br />

Netflix has rated Trustpower<br />

the best performing network in<br />

New Zealand for the last 10<br />

months in a row.<br />

Hawksworth said the pro<strong>of</strong><br />

that Trustpower was delivering<br />

a high-quality value add service<br />

was the increase in telco<br />

connections <strong>of</strong> five percent<br />

over the last six months.<br />

“Our loyal and strong customer<br />

base is taking more<br />

products from our <strong>of</strong>fering,”<br />

he said.<br />

“More existing electricity<br />

customers are taking up our<br />

broadband service and about<br />

80 per cent <strong>of</strong> new customers<br />

are now purchasing more than<br />

one product.<br />

“Trustpower’s bundled<br />

proposition has allowed us to<br />

form a new market segment<br />

that provides more value to<br />

customers and is less competitive<br />

than the separate electricity<br />

and telecommunications<br />

markets.<br />

“Our multi-product retail<br />

business strategy bundling<br />

life’s essential utilities including<br />

power, gas, internet and<br />

phone, continues to succeed<br />

and we intend to build on this.”<br />

Hawksworth also said the<br />

company would be looking<br />

for opportunities such as its<br />

consolidation <strong>of</strong> King Country<br />

Energy.<br />

The expected increase in<br />

the use <strong>of</strong> electricity by the<br />

transport and other sectors<br />

could lead to further investment<br />

opportunities in generating<br />

plant, he said.<br />

“We will always be looking<br />

to those small incremental<br />

projects that stack up and that<br />

could be across a number <strong>of</strong><br />

technologies.”<br />

Trustpower has also recently<br />

announced that it has<br />

secured the ability to provide<br />

wireless broadband and mobile<br />

services to their customers<br />

after entering into an agreement<br />

with Spark.<br />

GM markets Craig<br />

Neustroski said Trustpower<br />

had been seeking access to<br />

mobile services for some time,<br />

and was delighted to have<br />

secured a wholesale supply<br />

arrangement with Spark.<br />

“Mobile is increasingly<br />

important to our customers,<br />

and the ability to <strong>of</strong>fer it as<br />

part <strong>of</strong> our household services<br />

bundle is exciting.”<br />

ABOUT TRUSTPOWER<br />

Tauranga-headquartered Trustpower is New Zealand’s<br />

fifth-largest electricity generator and fourth largest<br />

energy retailer by market share, with approximately 12<br />

percent electricity retail market share.<br />

It operates a multi-product retail business, including<br />

electricity, gas and telecommunications products with<br />

approximately 270,000 electricity connections, 38,000<br />

gas connections and 91,000 telecommunications<br />

connections.<br />

Merry Christmas<br />

AND THANK YOU FOR YOUR CONTINUED SUPPORT TO ALL OF OUR VALUED CLIENTS<br />

ACROSS THE BAY. WE LOOK FORWARD TO WORKING WITH YOU AGAIN IN 2019!<br />

#1<br />

NUMBER ONE NETWORK<br />

IN TAURANGA<br />

WITH 90,800<br />

LISTENERS EVERY WEEK<br />

Contact our Tauranga team<br />

today on: 07 928 7300<br />

SOURCE: GFK RADIO AUDIENCE MEASUREMENT SURVEY, COMMERCIAL RADIO<br />

STATIONS, TAURANGA 3/<strong>2018</strong>, ALL PEOPLE 10+, MON - SUN, 12MN-12MN


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

Yamaha ups investment<br />

in BOP’s Robotics Plus<br />

Yamaha Motor Co has made a follow-up<br />

investment in <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> agri-automation<br />

company Robotics Plus, bringing its total<br />

funding commitment to US$10 million<br />

(NZ14.6 million).<br />

By DAVID PORTER<br />

Robotics Plus announced<br />

that Yamaha, which<br />

formed a partnership<br />

agreement and made an<br />

investment <strong>of</strong> US$2 million<br />

in March <strong>2018</strong>, announced the<br />

additional $US 8 million in<br />

<strong>November</strong>.<br />

The funding will support<br />

the company’s growth plans,<br />

said Steve Saunders, co-founder<br />

and chairman <strong>of</strong> Robotics<br />

Plus, who is currently establishing<br />

a US subsidiary for the<br />

company.<br />

“We are very pleased to<br />

have continued strengthening<br />

our partnership with Yamaha<br />

Motor and secured additional<br />

investment to support our<br />

vision to grow into a truly<br />

New Zealand, global business<br />

that will transform a number<br />

<strong>of</strong> industries,” said Saunders,<br />

who is well-known in BOP<br />

agri-tech and Maori business<br />

circles.<br />

“This investment will allow<br />

us to take the company to<br />

the next level and attract and<br />

retain the world class talent we<br />

need,” said Saunders.<br />

“To stay ahead <strong>of</strong> the<br />

opportunity we need to scale<br />

quickly, not just with our<br />

apple packers that are already<br />

in market, but also with our<br />

new UGV (Unmanned Ground<br />

Vehicle) platform technology<br />

and other projects under<br />

development.”<br />

Making agriculture more<br />

sustainable<br />

Hiro Saijo, chief executive <strong>of</strong><br />

Yamaha Motor Ventures &<br />

Laboratory Silicon Valley, said<br />

the investment would help the<br />

Japanese company reach a goal<br />

to make agriculture more sustainable,<br />

healthy, and secure.<br />

“To meet the significant<br />

and increasing agriculture<br />

demands <strong>of</strong> today and tomorrow,<br />

including agricultural<br />

labour shortage globally, we<br />

need to create sophisticated<br />

and precision robotics and<br />

automation technologies that<br />

will transform the agricultural<br />

industries.”<br />

Robotics Plus will leverage<br />

Yamaha Motor’s experience,<br />

knowledge and technologies<br />

in outdoor vehicles,<br />

factory automation, robotics,<br />

design for manufacturing and<br />

manufacturing.<br />

Recently appointed<br />

Robotics Plus chief executive<br />

Dr Matt Glenn said the two<br />

companies had developed a<br />

mutually beneficial commercial<br />

relationship.<br />

“We can benefit from their<br />

specialist knowledge in precision<br />

automation, manufacturing<br />

and access to high quality<br />

components to help us develop<br />

our technologies,” he said.<br />

“Yamaha Motor can benefit<br />

from working with Robotics<br />

Plus as a world leading robotics<br />

and automation business<br />

focusing on the agricultural<br />

and horticultural markets.<br />

Glenn said the New<br />

Zealand company had developed<br />

a highly skilled development<br />

team located close to<br />

orchards and other agricultural<br />

environments and could<br />

rapidly prototype new ideas,<br />

validate new components and<br />

integrate these into its robotic<br />

systems.<br />

“This will also create<br />

new opportunities to develop<br />

technologies in other<br />

markets.”<br />

In May, Robotics Plus’<br />

robotic Āporo apple packers<br />

were the first in a suite <strong>of</strong><br />

technologies to be commercially<br />

launched. The apple<br />

packer, which identifies and<br />

places apples in display trays,<br />

can safely handle up to 120<br />

fruit per minute. It is being<br />

marketed by Global Pac<br />

Technologies, a joint venture<br />

formed by Jenkins Group (NZ/<br />

Australia) - whose local arm<br />

Jenkins Freshpac features as<br />

The Aporo apple packer in action. Photo/Supplied.<br />

The UGV: Dr Alistair Scarfe (left) and Steve Saunders. Photo/Supplied.<br />

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

Awards overall winner on this<br />

month’s cover - and Van Doren<br />

Sales (US). The apple packer<br />

is already operating in packhouses<br />

in New Zealand and<br />

the USA.<br />

Other technologies under<br />

development to address major<br />

issues in the horticulture industry<br />

caused by labour shortages<br />

and increasing consumer<br />

demand for fresh fruit, include:<br />

an autonomous agricultural<br />

vehicle, robotic kiwifruit harvester,<br />

robotic pollinator, crop<br />

estimator, and a number <strong>of</strong><br />

confidential projects.<br />

Māori heritage plays role<br />

Saunders says his Māori heritage<br />

has played a role in<br />

Robotics Plus’ development.<br />

“We have a common desire<br />

to meet future challenges to<br />

feed the world in a sustainable<br />

way with smart automation<br />

and intelligent robotics. This<br />

partnership and going global<br />

is truly exciting. The institutional<br />

knowledge Yamaha<br />

Motor brings creates a fantastic<br />

opportunity to develop<br />

our great young talent out <strong>of</strong><br />

New Zealand.”<br />

This investment will<br />

allow us to take the<br />

company to the next<br />

level and attract and<br />

retain the world class<br />

talent we need.<br />

– Steve Saunders<br />

Dr Glenn said that solving<br />

the big agricultural issues <strong>of</strong> the<br />

future meant the need to support<br />

the horticultural and agricultural<br />

industries with innovative<br />

solutions that will enable<br />

By DAVID PORTER<br />

The Western <strong>Bay</strong> economic<br />

story has been one <strong>of</strong><br />

growth over the past year<br />

Priority One chief executive<br />

Nigel Tutt told attendees at<br />

the agency’s annual general<br />

meeting.<br />

“The headline stats are very<br />

impressive with six percent<br />

GDP growth, and we’ve led<br />

New Zealand for five years in<br />

a row,” he said.<br />

Tutt noted that it was significant<br />

that growth had been<br />

consistent across all sectors.<br />

“We’d feel concerned if we<br />

only had growth in a couple <strong>of</strong><br />

sectors, but that’s absolutely<br />

not the case,” he said.<br />

“Our community is getting<br />

more sophisticated and<br />

we’re a popular destination for<br />

businesses.”<br />

Tutt cited examples from<br />

Priority One’s latest business<br />

survey to illustrate the confidence<br />

in the region.<br />

“What we see is businesses<br />

are really confident in themselves<br />

and in this region, as<br />

was the case last year,” he<br />

said. “Some <strong>of</strong> the business<br />

confidence problems you read<br />

them to do things differently.<br />

“We have the ability to<br />

solve big global challenges<br />

like this from New Zealand,<br />

and the way we can achieve<br />

that faster is with the support<br />

<strong>of</strong> an international company<br />

like Yamaha Motor.”<br />

Robotics Plus was well-positioned<br />

to deliver on its vision<br />

to be a world leader in robotics<br />

and automation technology for<br />

the food and fibre industries,<br />

he said.<br />

“In addition to Yamaha<br />

Motor, we also have commercial<br />

partnerships with Global<br />

Pac Technologies, ISO Limited<br />

and Trimax,” said Dr Glenn.<br />

Robotics Plus had also<br />

established valuable collaborative<br />

research relationships with<br />

the University <strong>of</strong> Waikato,<br />

the University <strong>of</strong> Auckland,<br />

Massey University and Plant<br />

& Food Research, and we are a<br />

founding partner <strong>of</strong> PlantTech,<br />

an industry-led research organisation<br />

based in the Western<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, he said.<br />

“Our innovation and<br />

growth plans are well-supported<br />

by our private investors<br />

as well as New Zealand<br />

Government agencies,<br />

Callaghan Innovation, NZTE,<br />

MBIE, MPI and TPK.”<br />

Yamaha now has a 15 per<br />

cent holding in Robotics Plus,<br />

according to the Companies<br />

Office. The balance <strong>of</strong> shares<br />

is held by Robotics Plus’s<br />

co-founders Steve Saunders<br />

and robotics PhD and chief<br />

technical <strong>of</strong>fice Dr Alistair<br />

Scarfe.<br />

Strong growth story from<br />

Priority One at AGM<br />

Priority One’s Nigel Tutt: strategy around innovation<br />

is progressing well. Photo/Priority One.<br />

about nationally don’t seem to<br />

be reflected in this area at all.”<br />

He said that 71 percent <strong>of</strong><br />

the several hundred survey<br />

respondents were expecting<br />

growth to continue and were<br />

planning to hire more people.<br />

“People are very happy to<br />

be part <strong>of</strong> this economy. We’re<br />

an increasingly attractive place<br />

for people to bring their businesses.<br />

They love the mix <strong>of</strong><br />

business and lifestyle you get<br />

from living in the Western <strong>Bay</strong>.<br />

They see the economy growing<br />

around them and they’re<br />

excited to be part <strong>of</strong> it.”<br />

But Tutt noted there was<br />

still work to do, given Western<br />

<strong>Bay</strong> was a relatively small<br />

region and had some infrastructure<br />

challenges to deal<br />

with and was still lagging<br />

other parts <strong>of</strong> the country on<br />

income levels.<br />

He also noted the strong<br />

investment community within<br />

the region, from early stage<br />

WNT Ventures and Enterprise<br />

Angels, to Oriens Capital and<br />

Craigs IP, providing a full<br />

range <strong>of</strong> capital to support<br />

companies.<br />

“Our strategy around innovation<br />

is also progressing really<br />

well,” said Tutt.<br />

“We want to encourage<br />

innovation - innovation helps<br />

create high value jobs, brings<br />

talent in, and makes us more<br />

resilient and technologyfocused.”


9th<br />

ThinkTank Media<br />

Corporate Health & Wellbeing Summit


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

Harvest relief in form<br />

<strong>of</strong> extra RSE workers<br />

The head <strong>of</strong> the country’s largest post-harvest kiwifruit operation<br />

and orchard business has welcomed the increase in the number<br />

<strong>of</strong> workers on the Recognised Seasonal Employment (RSE)<br />

scheme.<br />

By RICHARD RENNIE<br />

Seeka’s Michael Franks: All extra<br />

workers appreciated. Photo/supplied.<br />

First started 11 years ago,<br />

the RSE scheme allowed<br />

5000 workers from the<br />

Pacific Islands to work in in<br />

the horticultural sector on<br />

part-time picking and pruning<br />

work. That number has since<br />

swollen to 11,100 last year and<br />

is now due to increase by 1750<br />

for this harvest season.<br />

Seeka chief executive<br />

Michael Franks has welcomed<br />

the increase in worker numbers.<br />

“We would have been 200-<br />

250 workers short last season,<br />

and it is quite likely we will be<br />

even shorter this year,” he said.<br />

“We appreciate any increase<br />

in numbers, although it remains<br />

to be seen where all the workers<br />

will be allocated. But we are<br />

grateful for anything we get, and<br />

are working to bring more New<br />

Zealanders on board also.”<br />

However, the industry is<br />

facing a tough task as New<br />

Zealand employment figures<br />

reach all-time highs, achieving<br />

a 68 percent participation rate<br />

for the September quarter, and<br />

with the 3.9 percent unemployment<br />

rate the lowest since the<br />

global financial crisis.<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> unemployment<br />

rates sit below the<br />

national average at 3.5 percent<br />

for the September quarter,<br />

down 1.2 percentage points,<br />

the second highest drop in the<br />

country.<br />

New Zealand Kiwifruit<br />

Growers Incorporated chief<br />

executive Nikki Johnson said<br />

the <strong>Bay</strong> could expect to get an<br />

allocation <strong>of</strong> an additional 300<br />

RSE workers, based on historic<br />

allocations.<br />

“In <strong>2018</strong> the BOP received<br />

about 2000 RSE workers from<br />

the national total <strong>of</strong> 11,100.<br />

The additional RSE workers<br />

will contribute to alleviating<br />

the shortage, but the industry<br />

will still need to work hard<br />

to attract the rest <strong>of</strong> the workforce<br />

required.”<br />

Last kiwifruit harvest, the<br />

sector was estimated to be<br />

about 500 workers short for<br />

the bumper 140 million tray<br />

harvest.<br />

Green to Gold shift<br />

The demands on the sector<br />

have changed with the shift<br />

in the ratio <strong>of</strong> SunGold to<br />

Green crop, with SunGold’s<br />

earlier harvest date requiring<br />

more timely, swift movement<br />

<strong>of</strong> the fruit from picking and<br />

throughout the processing<br />

chain to shipping.<br />

The BOP has also had two<br />

key labour resources depleted<br />

in recent years, making the<br />

increase in RSE workers even<br />

more welcome. The supply <strong>of</strong><br />

largely Indian students studying<br />

English on student visas<br />

has dried up after Immigration<br />

New Zealand tightened up on<br />

standards, while backpacker<br />

tourists have also proven to be<br />

thinner on the ground.<br />

The loss <strong>of</strong> Indian students<br />

alone was estimated to be<br />

about 15 percent <strong>of</strong> the labour<br />

force for the 8000 positions<br />

usually available.<br />

For this reason, in the past<br />

kiwifruit has not typically been<br />

a large user <strong>of</strong> RSE staff, with<br />

about 5000 New Zealanders<br />

filling the 8000 positions,<br />

1000 coming from international<br />

students, with backpackers<br />

and RSE workers filling the<br />

remainder.<br />

However, that need was<br />

anticipated to grow this coming<br />

season, as most locals<br />

obtain full time employment<br />

and crop volumes for SunGold<br />

are anticipated to grow by<br />

another 10 percent to about 57<br />

million trays.<br />

Mike Chapman, chief executive<br />

<strong>of</strong> Horticulture New<br />

Zealand, said it remained to<br />

The additional RSE<br />

workers will contribute<br />

to alleviating the<br />

shortage, but the<br />

industry will still<br />

need to work hard to<br />

attract the rest <strong>of</strong> the<br />

workforce required.<br />

– Nikki Johnson<br />

be seen how the extra workers<br />

were to be allocated around<br />

the regions that needed them<br />

most, namely Otago, Nelson,<br />

Hawke’s <strong>Bay</strong>, <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

and Northland.<br />

“While kiwifruit and apples<br />

are the most sought after, we are<br />

seeing huge growth in demand<br />

for avocados and cherries, as<br />

well as some berries.”<br />

The South Island has been<br />

struck particularly hard by<br />

shortages.<br />

Chapman said there were<br />

virtually no New Zealanders<br />

available in the South Island<br />

during harvest.<br />

Earlier this year the <strong>Bay</strong><br />

<strong>of</strong> <strong>Plenty</strong> and Hawke’s <strong>Bay</strong><br />

were declared labour shortage<br />

areas by the Ministry <strong>of</strong> Social<br />

Development during the apple<br />

and kiwifruit harvest.<br />

While RSE workers would<br />

be welcome, Immigration<br />

Minister Iain Lees-Galloway<br />

said employers had three key<br />

responsibilities to deal with.<br />

These included building<br />

more accommodation for<br />

workers to ease local accommodation<br />

pressure, taking<br />

greater responsibility for<br />

worker exploitation, and transforming<br />

horticulture from a<br />

low cost industry to one based<br />

on quality, productivity and<br />

high value.<br />

Zespri share buy-back in play<br />

Seeka announces<br />

new capital raise<br />

Zespri’s steps to strengthen<br />

the company’s share<br />

allocation to better<br />

reflect growers’ production<br />

proportions have started to<br />

take effect.<br />

In late October, Zespri<br />

closed <strong>of</strong>f its targeted share<br />

<strong>of</strong>fer and buy-back programme<br />

with 427 applications from<br />

growers to purchase more than<br />

12 million shares valued at $95<br />

million.<br />

The share <strong>of</strong>fer followed a<br />

number <strong>of</strong> changes to Zespri’s<br />

constitution, as approved<br />

through the long running<br />

Kiwifruit Industry Strategy<br />

Project. KISP was supported<br />

by two thirds <strong>of</strong> growers two<br />

years ago to improve the alignment<br />

between total production<br />

and grower shareholding.<br />

The capital Zespri raises<br />

through the exercise then<br />

allows the marketer to fund<br />

a buy-back programme from<br />

eligible shareholders.<br />

These are shareholders who<br />

no longer grow kiwifruit, or<br />

shareholders who are “over<br />

shared” - holding greater<br />

than 1.5 shares per tray <strong>of</strong><br />

production.<br />

This aspect <strong>of</strong> the programme<br />

has had 257 applications<br />

for almost nine million<br />

shares, valued at $70 million.<br />

It will result in the number <strong>of</strong><br />

former growers still holding<br />

Zespri shares dropping by 30<br />

percent.<br />

Retiring Zespri chairman<br />

Peter McBride said the KISP<br />

review had been one <strong>of</strong> the key<br />

initiatives under his chairmanship,<br />

and the share realignment<br />

was a vital part to better allocate<br />

grower control at Zespri.<br />

“There was a view early on<br />

that it could not be done, and<br />

that Zespri might lose some<br />

<strong>of</strong> its status as a single desk<br />

seller with regulatory change,<br />

but that has not been the case.”<br />

He labelled the buy-back a<br />

milestone, particularly given<br />

more than 18 million shares<br />

valued at about $140 million<br />

were held by people who had<br />

left the industry.<br />

“Through this share <strong>of</strong>fer, a<br />

good number <strong>of</strong> growers have<br />

taken up the opportunity to<br />

either become shareholders<br />

in Zespri or to increase their<br />

shareholdings in line with their<br />

entitlements.”<br />

The buy-back option<br />

gave eligible shareholders an<br />

effective option to sell shares<br />

without broker fees, with<br />

take up <strong>of</strong> the <strong>of</strong>fer and buy<br />

back being voluntary. Shares<br />

were valued at $8 each.<br />

– By RICHARD RENNIE<br />

Seeka has announced<br />

a new capital- raising<br />

strategy for the next<br />

three years. Plans include<br />

a $50 million rights issue,<br />

a share issuance under a<br />

new Grower Share Scheme,<br />

as well as a share issuance<br />

under the company’s<br />

existing Employee Share<br />

Ownership Scheme.<br />

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

raise is to strengthen the<br />

balance sheet and provide<br />

Seeka with the financial<br />

flexibility and freedom to<br />

pursue its growth strategy,<br />

said company <strong>of</strong>ficials.<br />

Seeka chairman Fred<br />

Hutchings said the company<br />

was excited about Seeka’s<br />

plans for growth and its<br />

pursuit towards being New<br />

Zealand’s leading orchardto-market<br />

business.<br />

“Seeka will use the capital<br />

raised to strengthen our<br />

balance sheet, repay bank<br />

debt, undertake planned<br />

capital expenditure and give<br />

us greater financial flexibility<br />

and freedom to deliver<br />

better value for our shareholders.”<br />

The first step is a 1 for<br />

1.5 renounceable rights<br />

<strong>of</strong>fer, due to close on 7<br />

<strong>December</strong>. The <strong>of</strong>fer, fully<br />

underwritten by First NZ<br />

Capital Group aimed to<br />

raise $50 million <strong>of</strong> new<br />

equity.<br />

This included a book<br />

build to be undertaken at<br />

the end <strong>of</strong> the <strong>of</strong>fer period<br />

for any shortfall.<br />

Seeka will also introduce<br />

a new Grower Share<br />

Scheme and Employee<br />

Share Scheme in the first<br />

quarter <strong>of</strong> 2019 to further<br />

align the interests <strong>of</strong><br />

Seeka, its employees and<br />

grower suppliers, many <strong>of</strong><br />

whom are shareholders.<br />

– By DAVID PORTER


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

9<br />

GST on low-value imported<br />

goods confirmed<br />

Under recently announced changes to GST on low-value<br />

imported goods, <strong>of</strong>fshore suppliers will now have to collect and<br />

return New Zealand GST on goods valued below $1000 that are<br />

sold to consumers in New Zealand.<br />

REGULATORY MATTERS<br />

> BY GRANT NEAGLE<br />

Grant Neagle, a director at Ingham Mora Chartered Accountants<br />

in Tauranga, is a business advisor and tax specialist. He can be<br />

contacted on 07- 927- 1225 or grant@inghammora.co.nz<br />

Draft legislation is expected<br />

to be introduced to<br />

Parliament this month<br />

and once enacted should apply<br />

from 1 October, 2019.<br />

Currently, GST is not levied<br />

where the duty and GST<br />

amount on imported goods<br />

would in aggregate be less<br />

than $60 de minimis. This<br />

means goods with a landed<br />

New Zealand cost <strong>of</strong> less than<br />

$400, that do not attract duty,<br />

are not subject to NZ GST.<br />

While the government will<br />

be taking with one hand, it<br />

will be a rare case <strong>of</strong> it giving<br />

with the other. Tariffs and border<br />

recovery charges will be<br />

removed from goods valued at<br />

or below $1000.<br />

The growth in online shopping<br />

means there is a steadily<br />

increasing volume <strong>of</strong> <strong>of</strong>fshore<br />

purchased goods that<br />

are escaping New Zealand’s<br />

GST net. Some $870 million<br />

was spent online in 2017/18<br />

on goods below $400 from<br />

<strong>of</strong>fshore suppliers, with<br />

the value <strong>of</strong> this spending<br />

growing at approximately<br />

12 percent annually.<br />

The government estimates<br />

the change will bring<br />

in additional $66 million <strong>of</strong><br />

GST revenue in the 2019/20<br />

year, increasing to in excess<br />

<strong>of</strong> $100 million annually in<br />

subsequent years.<br />

While the change is forecast<br />

to bring about significant extra<br />

amounts <strong>of</strong> GST revenue for<br />

the government, the Minister<br />

<strong>of</strong> Revenue has been quick<br />

to assert that the change is<br />

mostly about fairness to New<br />

Zealand’s retail sector and will<br />

help level the playing field.<br />

Consumer impact<br />

Given that the government will<br />

be removing tariffs/duties and<br />

border recovery charges, the<br />

GST change will not necessarily<br />

mean that all online purchases<br />

by consumers will be<br />

more expensive.<br />

In fact, goods valued<br />

between $400 and $1000<br />

would be cheaper, as would<br />

goods valued below $400 that<br />

exceed the current $60 duty +<br />

GST de minimis.<br />

It will only be goods valued<br />

below $400 that do not<br />

currently have GST, duties and<br />

cost recover charges collected<br />

that would be more expensive<br />

under the proposal.<br />

The table below from<br />

Inland Revenue illustrates the<br />

current and new treatment.<br />

Often purchasers <strong>of</strong><br />

imported goods get a surprise<br />

when they learn they have<br />

to pay GST, tariffs and cost<br />

recovery charges to Customs<br />

when their purchases reach<br />

New Zealand.<br />

The changes will mean<br />

there is greater transparency<br />

and likely fewer surprises for<br />

consumers – what they pay for<br />

the goods when they purchase<br />

them online will be the actual<br />

price and there will be no holdups<br />

at the border.<br />

If a consumer returns a pur-<br />

ITEM CURRENT TREATMENT NEW RULES<br />

$50<br />

t-shirt<br />

$300<br />

jacket<br />

$600<br />

phone<br />

Total cost <strong>of</strong> consignment: $50<br />

No current charges at the border<br />

Total cost <strong>of</strong> consignment: $432.17<br />

$300 jacket + $30 tariff (10% x $300) +<br />

$49.50 GST ($15% x $330) + $52.67<br />

border processing fee<br />

Total cost <strong>of</strong> consignment: $742.67<br />

$600 phone + $90.00 GST ($15% x<br />

$600) + $52.67 border processing fee<br />

chase to an <strong>of</strong>fshore supplier,<br />

the supplier will be responsible<br />

for returning the GST.<br />

For goods valued at more<br />

than $1000, the current process<br />

whereby GST and any other<br />

duty is collected at the border<br />

by Customs will continue to<br />

apply.<br />

Offshore suppliers will not<br />

be obligated to collect and<br />

return GST on supplies <strong>of</strong><br />

goods made to New Zealand<br />

registered businesses.<br />

Offshore supplier<br />

registration<br />

Offshore suppliers will only<br />

be required to register for and<br />

Total cost <strong>of</strong> consignment: $57.50<br />

$50 t-shirt + $7.50 GST collected by the<br />

<strong>of</strong>fshore supplier<br />

Total cost <strong>of</strong> consignment: $345<br />

$300 jacket + $45 GST collected by the<br />

<strong>of</strong>fshore supplier<br />

Total cost <strong>of</strong> consignment: $690<br />

$600 phone + $90 GST collected by the<br />

<strong>of</strong>fshore supplier<br />

collect GST if their total sales<br />

<strong>of</strong> goods and services to New<br />

Zealand exceed (or are expected<br />

to exceed) $60,000 in a<br />

12-month period.<br />

The government considers<br />

this <strong>of</strong>fshore supplier registration<br />

model is the most effective<br />

mechanism to collect the<br />

GST at this time given the<br />

limitation <strong>of</strong> other potential<br />

approaches.<br />

Other countries have<br />

adopted this model, including<br />

Australia, which introduced it<br />

in respect <strong>of</strong> low-value imported<br />

goods from July this year.<br />

The government has<br />

acknowledged there will be<br />

some suppliers that will not<br />

comply with the rules and<br />

it aims to address non-compliance<br />

where it can through<br />

agreements it has with<br />

other countries around<br />

mutual co-operation and<br />

information sharing.<br />

The obligation to register<br />

and return GST will also apply<br />

to both resident and non-resident<br />

electronic marketplaces,<br />

such as websites and internet<br />

portals used by suppliers to<br />

market and sell their goods.<br />

Re-deliverers will also have<br />

a registration obligation.<br />

Re-deliverers are businesses<br />

that are used by consumers<br />

when the supplier does not<br />

<strong>of</strong>fer shipping to New Zealand.<br />

The goods are instead sent<br />

to an overseas mailbox/hub<br />

which then in turn ships the<br />

goods to New Zealand.<br />

Inland Revenue says that<br />

when non-compliance is<br />

detected, it will register the<br />

supplier for GST and issue a<br />

default assessment <strong>of</strong> the GST<br />

liabilities - essentially a guess<br />

<strong>of</strong> what the liability is - and the<br />

debt would then be registered<br />

with the New Zealand courts.<br />

“Using our international<br />

agreements the debt would<br />

then be registered and pursued<br />

in the courts <strong>of</strong> the country that<br />

the supplier is based in.”<br />

However, Inland Revenue<br />

then goes on to say that alternatively<br />

it could order a person<br />

based in NZ that owed money<br />

to a non-compliant <strong>of</strong>fshore<br />

supplier to instead pay those<br />

funds to Inland Revenue.<br />

It would be no surprise if<br />

the government issued further<br />

guidance for consumers on the<br />

new rules.<br />

The new online GST<br />

arrangements will be an<br />

important adjunct to the rules<br />

introduced in 2016 that apply<br />

in respect <strong>of</strong> remote services<br />

(such as digital products,<br />

streamed music etc.) supplied<br />

by <strong>of</strong>fshore suppliers.<br />

The comments in this article<br />

are <strong>of</strong> a general nature and<br />

should not be relied on for<br />

specific cases, where readers<br />

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

advice.<br />

BEWARE OF FOREIGN IMITATIONS.<br />

There’s no shortage <strong>of</strong> great ideas in New Zealand.<br />

But for an innovative bunch, we’re not the best at<br />

realising the full potential <strong>of</strong> our innovations, particularly<br />

when exporting them.<br />

At James & Wells, we can identify your competitive<br />

edge, <strong>of</strong>fer business strategies for specific markets and<br />

help you own and leverage your intellectual property to<br />

ensure no one steals the fruit <strong>of</strong> your labour.<br />

www.jaws.co.nz | +64 7 928 4470


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

Sky NZ – 2, Sellers <strong>of</strong> ‘Kodi’ boxes – 0<br />

It’s been a good six months for Sky NZ. At<br />

least as far as its war on “Kodi” boxes is<br />

concerned anyway.<br />

Kodi boxes are set-top<br />

media and entertainment<br />

boxes so nicknamed<br />

because they use Kodi,<br />

a free, open source s<strong>of</strong>tware<br />

application.<br />

Neither Kodi nor the<br />

boxes on which the s<strong>of</strong>tware<br />

is installed, are in themselves<br />

illegal.<br />

It is only when s<strong>of</strong>tware<br />

plug-ins or add-ons are loaded<br />

onto the boxes enabling owners<br />

to view subscription-based<br />

content – like Sky TV and<br />

Netflix – for free, that they<br />

become so.<br />

So both the District Court<br />

and the High Court found<br />

this year.<br />

In July, Judge Gary<br />

MacAskill in the Christchurch<br />

District Court found the<br />

operators <strong>of</strong> Fibre TV, a seller<br />

<strong>of</strong> Kodi boxes, in breach<br />

<strong>of</strong> the Fair Trading Act for<br />

misleading or deceptive statements<br />

concerning the legality<br />

<strong>of</strong> the set-top boxes they<br />

were selling.<br />

In October, Associate Judge<br />

Smith in the Auckland High<br />

Court found My Box NZ Ltd<br />

and its general manager, Mr<br />

Krishneil Von Roy Reddy,<br />

liable for the same breach.<br />

Sky NZ – 2, sellers <strong>of</strong> Kodi<br />

boxes – 0.<br />

Despite these victories,<br />

Sky’s worries are far from over.<br />

Firstly, Kodi boxes with<br />

the <strong>of</strong>fending pre-loaded s<strong>of</strong>tware<br />

can be readily purchased<br />

online. They’re as easy to buy<br />

as your groceries.<br />

Secondly, there are thousands<br />

<strong>of</strong> boxes already in<br />

homes around New Zealand.<br />

According to a survey commissioned<br />

by Sky TV, reported<br />

in the NZ Herald on 30<br />

September, <strong>2018</strong>, some eight<br />

percent <strong>of</strong> the adult population<br />

or 300,000 New Zealanders<br />

are watching pirated versions<br />

<strong>of</strong> sports events, while 10 per<br />

cent regularly watch pirated<br />

movies and TV.<br />

The questions facing Sky<br />

are simple: how can it stop<br />

the sale <strong>of</strong> pre-loaded set-top<br />

boxes, and how can it stop box<br />

owners getting access to pirated<br />

content?<br />

Alas, the answers are not<br />

so simple. Stopping the sale<br />

<strong>of</strong> pre-loaded boxes outright<br />

requires a law change.<br />

Helpfully for Sky, this<br />

change is likely to come sooner<br />

or later with the Government<br />

reviewing the Copyright Act<br />

1994 and how it deals with<br />

a “rapidly changing technological<br />

environment which<br />

is impacting the way we create,<br />

distribute and consume<br />

content”. *<br />

Stopping box owners from<br />

getting access to pirated content<br />

is a different ballgame.<br />

In <strong>December</strong> 2017, Sky prepared<br />

a draft application to the<br />

High Court, seeking to obtain<br />

injunctions against Spark,<br />

Vodafone, Vocus (primarily<br />

INTELLECTUAL PROPERTY ISSUES<br />

> BY BEN CAIN<br />

Ben Cain is a Senior Associate at James & Wells and a Resolution<br />

Institute- accredited mediator. He can be contacted at 07 928 4470<br />

(Tauranga), 07 957 5660 (Hamilton), and benc@jaws.co.nz.<br />

trading to retail consumers as<br />

Orcon) and 2Degrees, requiring<br />

them to block websites<br />

allegedly hosting copyright-infringing<br />

material.<br />

Since issuing the draft, Sky<br />

has been working with the<br />

ISPs to undertake voluntary<br />

site-blocking. It seems to no<br />

avail: Spark and 2Degrees, for<br />

example, have recently both<br />

indicated they are reluctant to<br />

take on the role <strong>of</strong> “Internet<br />

police”.<br />

For now then, the legal status<br />

<strong>of</strong>, and the continued ability<br />

to use, ‘Kodi’ boxes remains<br />

uncertain. That being the case,<br />

you can be sure Sky’s lawyers<br />

will be busy.<br />

*https://www.mbie.<br />

govt.nz/info-services/business/intellectual-property/<br />

copyright/review-copyright-act-1994<br />

Commercial<br />

Property<br />

Management<br />

At <strong>Bay</strong>leys, we believe relationships are what<br />

businesses are built on and how they succeed.<br />

We understand that to maximise the<br />

return on your property you need:<br />

Pr<strong>of</strong>essional property management<br />

A business partner that understands<br />

your views and goals<br />

Speak to your <strong>Bay</strong>leys team today.<br />

Jan Cooney<br />

Brodie Thomas<br />

Ashleigh Gee<br />

Snr. Commercial Property Manager<br />

P 579 0609 027 408 9339<br />

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

Commercial Property Manager<br />

P 579 0608 027 746 9218<br />

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

Facilities Manager<br />

P 579 0603 022 424 7308<br />

ashleigh.gee@bayleys.co.nz<br />

SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008


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WESTPAC TAURANGA BUSINESS AWARDS<br />

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

13<br />

Jenkins Freshpac’s innovative<br />

approach wins top award<br />

Jenkins Freshpac Systems walked <strong>of</strong>f with the<br />

top accolade at this year’s Westpac Tauranga<br />

<strong>Business</strong> Awards, which had an overriding<br />

focus on innovation, reinforcing a theme that<br />

has been developing in recent events.<br />

Photos by Natalie Murdoch Photography,<br />

courtesy Tauranga Chamber <strong>of</strong> Commerce.<br />

By DAVID PORTER<br />

Jenkins Freshpac also won<br />

the Embracing Digital<br />

Technology and the<br />

Service Excellence Awards,<br />

as well as making the finals<br />

in the Customer Experience<br />

and Workplace Safety Awards.<br />

(Please see the accompanying<br />

table for details <strong>of</strong> all winners<br />

and finalists).<br />

Jenkins Freshpac opened a<br />

new purpose-built facility in<br />

Tauriko in 2013, when it relocated<br />

to Tauranga. The company<br />

has built a strong position<br />

WESTPAC TAURANGA BUSINESS AWARDS <strong>2018</strong> –<br />

WINNERS<br />

AWARDS<br />

Westpac Tauranga <strong>Business</strong> <strong>of</strong> the Year<br />

Corporate Sponsorship<br />

Sponsored by Air New Zealand<br />

Corporate Leadership<br />

Sponsored by The University <strong>of</strong> Waikato<br />

Manufacturing &/or Distribution<br />

Sponsored by Powerco<br />

Service Excellence<br />

Sponsored by YOU Travel<br />

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

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

Tourism & Hospitality<br />

Sponsored by <strong>Bay</strong> Venues<br />

Emerging <strong>Business</strong><br />

Sponsored by Toi Ohomai<br />

Retail Excellence<br />

Sponsored by Gartshore Retail Interiors<br />

Social Enterprise<br />

Sponsored by <strong>Bay</strong> <strong>of</strong> Connections<br />

Customer Experience Award<br />

Sponsored by Trustpower<br />

Embracing Digital Technology<br />

Sponsored by Vodafone<br />

<strong>Business</strong> Innovation<br />

Sponsored by Zespri<br />

Workplace Safety Award<br />

Sponsored by ACC<br />

WINNERS<br />

WINNER: Jenkins Freshpac Systems<br />

WINNER: Carrus Corp<br />

FINALISTS:<br />

Holland Beckett Law<br />

Craigs Investment<br />

Farmer Motor Group<br />

Lysaghts<br />

Realty Group<br />

Metro Marketing<br />

WINNER: Seeka<br />

WINNER: Voyager Group<br />

FINALISTS:<br />

AJC Distribution Ltd<br />

A1 Benchworx<br />

WINNER: Jenkins Freshpac Systems<br />

FINALISTS:<br />

Quentosity<br />

Exceed Franchising<br />

Exceed Franchising<br />

Vertical Horizonz NZ<br />

WINNER: Fern Garden Preschool & Childcare<br />

Centre<br />

FINALISTS:<br />

Adam Taylor Architecture<br />

Exceed Franchising<br />

WINNER: Good Local Pyes Pa<br />

FINALISTS:<br />

Little Big Events<br />

WINNER: Road Safe Traffic Management<br />

FINALISTS:<br />

Quentosity<br />

Little Big Events<br />

WINNER: Fashion Island<br />

WINNER: Graeme Dingle Foundation <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

WINNER: Tauranga Veterinary Services<br />

FINALISTS:<br />

Jenkins Freshpac Systems<br />

Exceed Franchising<br />

WINNER: Jenkins Freshpac Systems Ltd<br />

FINALISTS:<br />

Exceed Franchising<br />

WINNER: Little Big Events<br />

FINALISTS:<br />

Exceed Franchising<br />

WINNER: Waikato & BOP Suspended Ceiling<br />

Services<br />

FINALISTS:<br />

Vertical Horizonz NZ<br />

Road Safe Traffic Management<br />

Jenkins Freshpac Systems<br />

Jenkins Freshpac Systems on<br />

stage for its overall award win.<br />

across the horticultural sector<br />

for its sophisticated labelling<br />

and packaging technology and<br />

services. The award-winner is<br />

a wholly owned subsidiary <strong>of</strong><br />

the privately owned Jenkins<br />

Group, a Kiwi company with<br />

a tradition <strong>of</strong> innovation spanning<br />

more than 135 years, a<br />

service network throughout<br />

New Zealand and Australia,<br />

and well-established international<br />

relationships.<br />

The judging panel - led by<br />

Vodafone’s Andrew Hitchfield<br />

- noted that Jenkins Freshpac<br />

was the clear market leader in<br />

labelling and packaging horticultural<br />

products.<br />

“It has been able to keep<br />

out larger competitors that are<br />

more resourced by focusing on<br />

its expertise and superior service<br />

<strong>of</strong>fering,” said the judges.<br />

Locally, the company<br />

works with all the large kiwifruit<br />

packhouses and Zespri<br />

- as well as other leading horticultural<br />

producers - to ensure<br />

that processed fruit is labelled<br />

and packaged fit for market.<br />

Given the volume <strong>of</strong> packing<br />

during the kiwifruit season, the<br />

company’s round- the-clock<br />

technical service is critical to<br />

ensure its machines run with<br />

minimal downtime.<br />

Jenkins Freshpac chief<br />

executive Jamie Lunam told<br />

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

TP0071/BOPT/126x191/CONGRATS-<strong>2018</strong>/01<br />

Continues page 14<br />

0800 44 22 22<br />

trustpower.co.nz<br />

Seeka’s Michael Franks with University<br />

<strong>of</strong> Waikato’s Tim Coltman.<br />

Well done<br />

everyone<br />

Congratulations to all the winners<br />

and participants in the Westpac<br />

Tauranga <strong>Business</strong> Awards, and<br />

thanks for helping make the <strong>Bay</strong><br />

a great place to be.


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

WESTPAC TAURANGA BUSINESS AWARDS<br />

Daniel Pepperell, CEO and Billy Cummins, health and safety manager from Waikato<br />

& BOP Suspended Ceiling Services, the Workplace Safety Award winner.<br />

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Every business<br />

has a story…<br />

Jenkins Freshpac’s innovative<br />

approach wins top award<br />

From page 13<br />

the company had been working<br />

hard over the last decade to<br />

develop its product <strong>of</strong>fering to<br />

deliver a focused and specialised<br />

full product and service<br />

suite to the New Zealand horticulture<br />

sector.<br />

“This comes with all sorts<br />

<strong>of</strong> challenges and strains along<br />

the way and the team has<br />

worked incredibly hard to get<br />

to where we are at,” he said.<br />

“The awards are an outstanding<br />

and humbling nod to<br />

the team in recognition to having<br />

pulled it <strong>of</strong>f with class. I<br />

am incredibly proud <strong>of</strong> how far<br />

the team has come.”<br />

Event organisers the<br />

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

Commerce again saw a capacity<br />

crowd at <strong>Bay</strong> Arena for<br />

the awards, which are now<br />

heading into their third decade.<br />

Chamber chief executive<br />

Stan Gregec said there had<br />

been a very high standard <strong>of</strong><br />

entrants, with a strong focus<br />

on technology, particularly in<br />

the kiwifruit sector.<br />

“The strength <strong>of</strong> the awards<br />

sits with the high calibre <strong>of</strong><br />

judges who all put in hours <strong>of</strong><br />

time and expertise to visit each<br />

entrant,” said Gregec.<br />

“Their feedback on their<br />

assessment is regarded as one<br />

<strong>of</strong> the strong benefits to entering<br />

the awards.”<br />

Seeka wins Corporate<br />

Leadership award<br />

The Corporate Leadership<br />

Award this year went to Seeka,<br />

New Zealand’s largest kiwifruit<br />

grower and specialised<br />

supply chain management<br />

company, with operations<br />

around New Zealand and in<br />

Australia.<br />

“The company also faced<br />

tough economic conditions<br />

when PSA devastated the kiwifruit<br />

sector, but has come out<br />

the other side with renewed<br />

vigour and a drive to become<br />

more than just a kiwifruit<br />

service company,” the judges<br />

said.<br />

Seeka is one <strong>of</strong> the largest<br />

post-harvest companies<br />

in New Zealand, operating<br />

in <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, Northland,<br />

Coromandel and the East<br />

Coast, and is the largest kiwifruit<br />

grower in Australasia.<br />

The company packs kiwifruit,<br />

avocados and kiwiberry<br />

primarily for export. It is crucial<br />

that fruit is packed efficiently<br />

to ensure that it arrives<br />

in pristine condition so that<br />

growers can achieve high prices.<br />

Seeka packs around 20 percent<br />

<strong>of</strong> New Zealand’s export<br />

kiwifruit and is the largest provider<br />

<strong>of</strong> management services<br />

for kiwifruit orchards.<br />

Seeka chief executive<br />

Michael Franks said he was<br />

appreciative <strong>of</strong> the award.<br />

Fern Garden’s sustainable<br />

approach to early learning<br />

The magic is<br />

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systems, and learning<br />

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Fern Garden added modern<br />

facilities including audio<br />

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WESTPAC TAURANGA BUSINESS AWARDS<br />

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

15<br />

magic money tree for any government<br />

in politics - it comes<br />

from you and the hard work<br />

you put in to create wealth and<br />

goods and services. And you<br />

go above and beyond that to<br />

provide what our community<br />

requires.”<br />

Range <strong>of</strong> talented<br />

businesses<br />

Good Local Pyes Pa’s Mel and Mark Lawrence<br />

win the Tourism & Hospitality Award.<br />

“Our growth as a company<br />

is a combined effort,” Franks<br />

said.<br />

“We have a great team <strong>of</strong><br />

inspirational people who stand<br />

out from the crowd and think<br />

<strong>of</strong> new ways to deliver quality<br />

products and services. Seeka<br />

is proud <strong>of</strong> the team’s contribution,<br />

but would like to<br />

acknowledge that without the<br />

world-class growers we work<br />

with and for, we would never<br />

have achieved this level <strong>of</strong><br />

success.<br />

“We also recognise those<br />

local businesses and contractors<br />

supporting our organisation.<br />

The award is a huge<br />

honour for everybody’s hard<br />

work.”<br />

Creating wealth, goods<br />

and services<br />

Leader <strong>of</strong> the opposition<br />

and Tauranga MP for the<br />

past decade, Simon Bridges,<br />

acknowledged the excellence<br />

<strong>of</strong> the businesses represented<br />

at the awards.<br />

“Every day you have to perform<br />

and provide the customers<br />

with exactly what they want or<br />

you won’t survive,” he said.<br />

“You need to have grit,<br />

determination and to have the<br />

vision for success. There’s no<br />

Toi Ohomai’s Leon Fourie with Logan Dawson and Isaac Reid from<br />

Emerging <strong>Business</strong> Award winners Road Safe Traffic Management.<br />

The Voyager Group team celebrates its<br />

Manufacturing/Distribution Award.<br />

Voyager Group won this<br />

year’s Manufacturing and/<br />

or Distribution category. The<br />

company is New Zealand’s<br />

leading supplier <strong>of</strong> luggage and<br />

travel accessories. Designed in<br />

New Zealand and manufactured<br />

<strong>of</strong>fshore, Voyage’s goal<br />

was to ensure its customers<br />

luggage made the journey<br />

safely. Voyager’s design team<br />

specialises in developing ranges<br />

that reflect the best and<br />

latest in local and international<br />

thinking.<br />

Good Local, a bar and restaurant<br />

focused on providing<br />

quality food, service and value<br />

for money to Pyes Pa locals,<br />

won the Tourism & Hospitality<br />

Award. Started by Mark and<br />

Mel Lawrence, who have a<br />

lengthy background in hospitality,<br />

having owned businesses<br />

on The Strand, relocated<br />

to Pyes Pa where they <strong>of</strong>fer<br />

a range <strong>of</strong> Hamilton brewery<br />

Good George’s craft beer and<br />

cider on tap.<br />

Road Safe Traffic<br />

Management won the<br />

Emerging <strong>Business</strong> Award<br />

Road Safe Traffic Management<br />

is owned and operated by<br />

Logan Dawson. With more<br />

than a decade’s experience in<br />

the traffic management industry,<br />

he and his wife formed<br />

the company after relocating<br />

to Tauranga. Today, the business<br />

has a 14-strong team,<br />

backed by seven traffic management<br />

trucks and specialist<br />

equipment.<br />

Papamoa’s Fashion Island<br />

won the Retail Excellence<br />

Award. The popular outdoor<br />

shopping centre features<br />

a blend <strong>of</strong> high street<br />

fashion, outlet and lifestyle<br />

stores. Shoppers can access<br />

everything from new season’s<br />

looks at leading fashion stores<br />

such as Max, Jacqui E, Just<br />

Jeans, Dotti, NZSale, Merric,<br />

Jay Jays, Portmans and Elim,<br />

as well as outlet stores for<br />

Bendon, Amazon, Thanks and<br />

Brands.<br />

The Social Enterprises<br />

Award went to the Graeme<br />

Dingle Foundation’s <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> arm. Originally founded<br />

as a charity in1995, the foundation<br />

established its <strong>Bay</strong> branch<br />

in 2004. The charity runs the<br />

Kiwi Can, Stars and Project<br />

K school-based programmes,<br />

helping 3200 young people in<br />

the region every year.<br />

Tauranga Veterinary<br />

Services, led by managing<br />

director David McDonnell,<br />

won the Customer Experience<br />

Award. The community-fo-<br />

Continues page 17<br />

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

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

congratulates all category winners,<br />

finalists and entrants in the <strong>2018</strong><br />

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

We would like to thank the Tauranga Chamber<br />

<strong>of</strong> Commerce, all <strong>of</strong> the sponsors and all <strong>of</strong> our<br />

supporters.<br />

We are truely humbled.<br />

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

<strong>of</strong> the Year <strong>2018</strong><br />

We look forward to seeing you<br />

again next year.


WESTPAC TAURANGA BUSINESS AWARDS<br />

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

17<br />

Customer Experience Award team from Tauranga Veterinary Services.<br />

From page 15<br />

cused company now has clinics<br />

in Tauranga, Papamoa, Te<br />

Puna and Katikati.<br />

Little Big Events won the<br />

<strong>Business</strong> Innovation Award.<br />

Founded by Rachel and Chris<br />

Duffy, who originally began<br />

with the launch <strong>of</strong> the Little<br />

Big Markets in the Mount in<br />

2009. Little Big Events now<br />

runs a range <strong>of</strong> community-focused<br />

events across the city.<br />

It aims to help people<br />

become more aware <strong>of</strong><br />

their abilities to be involved<br />

in building a confident and<br />

vibrant community. Little Big<br />

Events’ latest proiect is Our<br />

Place, the temporary container<br />

market in the CBD.<br />

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

Workplace Safety Award was<br />

Waikato and BOP Suspended<br />

Ceiling Services - also known<br />

as the “Good Buggers.” The<br />

company specialises in complete<br />

commercial fit outs<br />

delivered by pr<strong>of</strong>essionally<br />

qualified tradespeople. Mark<br />

and Rachel Pepperell started<br />

in business 30 years ago and<br />

now have more than 70 staff<br />

working over two branches in<br />

Tauranga and Hamilton. They<br />

are involved in many <strong>of</strong> the<br />

region’s major fitouts, including<br />

the new University <strong>of</strong><br />

Waikato campus in Tauranga.<br />

Westpac area commercial<br />

manager Clare Basire said the<br />

bank was proud to be associated<br />

with an event that recognised<br />

outstanding business<br />

<strong>Business</strong> Innovation Award winners Chris<br />

and Rachelle Duffy from Little Big Events.<br />

achievement.<br />

“The Westpac Tauranga<br />

<strong>Business</strong> Awards have always<br />

been about taking time out to<br />

acknowledge business excellence<br />

– this is about recognising<br />

the smartest, strongest<br />

and most sustainable businesses<br />

in the community.<br />

Congratulations to the winners<br />

– we’re sure this is a stepping<br />

stone to even greater business<br />

success.”<br />

New award reflects corporate<br />

contribution to community<br />

This year saw the introduction<br />

<strong>of</strong> a new award<br />

sponsored by Air New<br />

Zealand aimed at recognising<br />

and encouraging corporate<br />

sponsorship.<br />

Carrus Corp won in a category<br />

that saw well-known local<br />

companies Holland Beckett<br />

Law, Craigs Investment Partners,<br />

Farmer Motor Group, Lysaghts,<br />

Realty Group and Metro<br />

Marketing also make the finals.<br />

Carrus Corp founder Paul<br />

Adams, one <strong>of</strong> the region’s<br />

best-known property developers<br />

and who has played a<br />

major role in bringing the new<br />

Paul Adams receives the new Corporate Sponsor<br />

Award on behalf <strong>of</strong> Carrus Corp from Air New<br />

Zealand’s Bill Reeves.<br />

University <strong>of</strong> Waikato campus<br />

in Tauranga, accepted the award<br />

on behalf <strong>of</strong> the company.<br />

The award organisers<br />

noted that it was important<br />

to acknowledge the corporate<br />

sector’s contribution to<br />

the community, which came<br />

directly <strong>of</strong>f their bottom line.<br />

“The sector is already<br />

extremely generous, without<br />

which a huge number <strong>of</strong><br />

events, both sporting, and culture<br />

and amenity within the<br />

city simply would not happen,”<br />

said the chamber’s Anne<br />

Pankhurst, who has been the<br />

hands-on organiser <strong>of</strong> the<br />

awards for many years.<br />

“It would be very difficult to<br />

quantify the amount that is contributed<br />

through the corporate<br />

sector, but if you were doing the<br />

sums on the back <strong>of</strong> a postage<br />

stamp, it would be safe to say it<br />

was in the millions. Imagine for<br />

a moment a world without that<br />

contribution.”<br />

But while the dollar contribution<br />

was extremely<br />

important, the award was also<br />

about the support, the voluntary<br />

hours and the understanding<br />

<strong>of</strong> how important it<br />

was to give back, she said.<br />

– By DAVID PORTER<br />

The Experts in Traffic Control<br />

Roz Irwin, centre manager Fashion Island and Brett Williams, Comac<br />

Retail Property Group, with Fashion Island’s Retail Excellence Award.<br />

Put your traffic control in the<br />

hands <strong>of</strong> one <strong>of</strong> the leading<br />

traffic management companies<br />

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

This year Road Safe Traffic<br />

Management was named<br />

winner <strong>of</strong> Emerging <strong>Business</strong><br />

by Toi Ohomai at the Westpac<br />

Tauranga <strong>Business</strong> Awards.<br />

Owner and operator Logan<br />

Dawson says it’s amazing to<br />

have been awarded Emerging<br />

<strong>Business</strong> among a category<br />

with many other excellent<br />

businesses.<br />

“To come out and win<br />

Emerging <strong>Business</strong> and be a<br />

finalist in the ACC Workplace<br />

Safety Award is really awesome<br />

and just proves all our hard<br />

work is paying <strong>of</strong>f,” says Logan.<br />

Road Safe Traffic Management<br />

is a two and a half year<br />

old business that assists<br />

with expert road traffic<br />

management and event<br />

traffic management for small<br />

businesses through to large<br />

construction companies.<br />

“I would like to say a massive<br />

thank you to all the staff for<br />

their commitment to the<br />

job and everyone who has<br />

supported us, the Tauranga<br />

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

Westpac and the award<br />

sponsors.”<br />

Dan Allen-Gordon, regional manager and Fran Stubbins, trustee from<br />

Social Enterprise Award winner Graeme dingle Foundation BOP.<br />

Call us today - Tauranga<br />

and the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> Region<br />

027 696 9047 | 07 543 4881 (Office)<br />

6am-6pm - Monday to Sunday<br />

24 Paerangi Place, Tauranga, <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

www.facebook.com/roadsafetm<br />

www.roadsafetm.co.nz


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

LIVINGSTONE<br />

Excelsa highlights Livingstone’s<br />

growing presence in the <strong>Bay</strong><br />

Livingstone’s presence in the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

is expanding with the construction <strong>of</strong><br />

the high pr<strong>of</strong>ile Excelsa Centre in Golden<br />

Sands, Papamoa.<br />

One <strong>of</strong> a number <strong>of</strong><br />

major construction<br />

projects the company<br />

has secured since starting<br />

its operation in the <strong>Bay</strong> in<br />

2006, Livingstone <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> - whose head <strong>of</strong>fice<br />

is located within Hamilton -<br />

has constructed the new bar<br />

and restaurant Papa Mo’s and<br />

boutique three-screen Tivoli<br />

Cinema, as well as several<br />

other establishments now open<br />

for business at Excelsa.<br />

Set on the shores <strong>of</strong><br />

Papamoa Beach the new<br />

Excelsa Centre, which is due<br />

for completion early next year,<br />

has brought a much-needed<br />

hub <strong>of</strong> community amenities<br />

to the fast-growing area, says<br />

Livingstone BOP Regional<br />

Manager Blanton Benjamin.<br />

“Across the last 12 months<br />

we have seen substantial<br />

growth within the region. Our<br />

team has increased by 300 percent<br />

and we have managed<br />

to secure a lot <strong>of</strong> new work,”<br />

he says, noting they have also<br />

worked with such well-known<br />

brands as Metlifecare and City<br />

Fitness.<br />

“With Papa Mo’s, the cinema<br />

and several other restaurants<br />

and services open, the<br />

centre is getting a lot <strong>of</strong> traffic,<br />

helping Golden Sands and<br />

Papamoa develop its own identity.<br />

Local people no longer<br />

need to drive long distances to<br />

access amenities.”<br />

Papamoa’s population<br />

has grown to 20,000-plus<br />

as a result <strong>of</strong> major housing<br />

development and the new<br />

roading infrastructure, and<br />

it is now Tauranga’s biggest<br />

suburb. Tauranga Chamber <strong>of</strong><br />

Commerce Chief Executive<br />

Stan Gregec says the need for<br />

another shopping centre to service<br />

the newer residential areas<br />

is “a no-brainer”, especially<br />

considering future growth projections<br />

for Papamoa.<br />

“It’s the fastest-growing<br />

suburb in Tauranga, and the<br />

chamber is only too aware<br />

<strong>of</strong> the opportunities out that<br />

way,” says Gregec. “We have<br />

connected with many new<br />

businesses that have set up or<br />

based themselves in Papamoa.”<br />

Key hub for Bluehaven’s<br />

Golden Sands<br />

development<br />

Livingstone carried out the<br />

main base build for the three<br />

core Excelsa Centre buildings<br />

for developer Bluehaven.<br />

The complete fit-out for Papa<br />

Mo’s was also carried out by<br />

Livingstone.<br />

The Bluehaven Group is<br />

responsible for the Golden<br />

Sands housing development<br />

in the area and is one <strong>of</strong> the<br />

largest land developers in the<br />

region with significant land<br />

holdings in the Papamoa East<br />

Wairakei Growth Area.<br />

Bluehaven Chief Executive<br />

Nathan York says the opening<br />

<strong>of</strong> the Excelsa Centre is another<br />

milestone for the Golden<br />

Sands area, which has seen<br />

high demand for new housing<br />

because <strong>of</strong> its desirable coastal<br />

location, the variety <strong>of</strong> housing<br />

BUILDING EXCELLENCE<br />

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PROUD CONSTRUCTION PARTNER OF THE EXCELSA CENTRE<br />

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LIVINGSTONE<br />

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

19<br />

with beautiful views to the sea<br />

all year round.”<br />

Full fit-out for Papa Mo’s<br />

options and the good public<br />

amenities.<br />

“Excelsa and its new tenants<br />

are really enhancing the<br />

area.”<br />

Excelsa also reflects<br />

Bluehaven’s development<br />

approach, to ensure the new<br />

hub fosters innovation by<br />

introducing modern concepts.<br />

“We have had the opportunity<br />

to place in a number <strong>of</strong><br />

state-<strong>of</strong>-the-art features such<br />

as the respite seating areas<br />

with overhead fairy and festoon<br />

lights, and charging stations<br />

for Tesla electric cars<br />

and E-bikes,” says Project<br />

Manager Brook Carrington,<br />

who has enjoyed working on<br />

the centre’s development. “It’s<br />

been a great place to work,<br />

Livingstone carried out the full<br />

fit-out for Papa Mo’s. Luke<br />

van Veen, General Manager<br />

and co-owner with Matt<br />

Palmer <strong>of</strong> Papa Mo’s, says<br />

working alongside Livingstone<br />

made what could have been a<br />

tricky greenfield development<br />

much smoother.<br />

“The guys on the ground<br />

did a great job,” he says.<br />

“Livingstone was amazing<br />

to work with and made<br />

our lives a lot easier. The end<br />

result was much better than<br />

could ever have been expected<br />

in terms <strong>of</strong> the finished<br />

product.”<br />

Van Veen also paid tribute<br />

to the contribution <strong>of</strong> architects<br />

First Principles.<br />

The response to Papa Mo’s<br />

had been excellent from day<br />

one, he says.<br />

“We’re really rapt with the<br />

way the community has supported<br />

us and showed interest<br />

from when we opened. I think<br />

we’ve got the <strong>of</strong>fering right for<br />

the community and we’re still<br />

working every day to make<br />

sure we achieve that.”<br />

Van Veen says the community<br />

focus is a big thing for<br />

Papa Mo’s, which has a nautical<br />

theme.<br />

“It’s more than just a bar and<br />

a restaurant,” he says. “It’s about<br />

making a venue that’s suitable<br />

for any occasion, whether it’s a<br />

birthday party, a casual gathering<br />

or an anniversary.”<br />

Papa Mo’s aim is to create<br />

a family, kid-friendly environment,<br />

with everything from big<br />

screen TVs to watch live sports<br />

events, to Little Mo’s ice<br />

cream and takeaway c<strong>of</strong>fee,<br />

and the Horizon Bar upstairs<br />

where customers can enjoy the<br />

ocean views that are a massive<br />

part <strong>of</strong> the suburb’s attraction.<br />

“We want people to come<br />

and gather with friends or family,”<br />

he says. “And it’s not just<br />

locals - we’re also getting customers<br />

travelling from across<br />

Tauranga to come and see us.”<br />

Full range <strong>of</strong> amenities<br />

When completed next year,<br />

the Excelsa Centre will <strong>of</strong>fer<br />

over 4000sqm <strong>of</strong> leased space<br />

with a contribution <strong>of</strong> two double<br />

storey and one single storey<br />

buildings. Excelsa is argu-<br />

Continued page 20<br />

The team at Turner<br />

Painting Contractors are<br />

proud to be associated<br />

with the team at<br />

Livingstone<br />

For all enquiries<br />

Phone Paul 0272734868<br />

The Team at The Flooring Room is proud<br />

to be associated with Livingstone and<br />

Papa Mo's new Build<br />

www.theflooringroom.co.nz<br />

The Flooring Room<br />

Corner <strong>of</strong> 11th Ave &<br />

Cameron Road, Tauranga<br />

Phone 07 571 1114


20 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/<strong>December</strong> <strong>2018</strong><br />

LIVINGSTONE<br />

Excelsa highlights Livingstone’s<br />

growing presence in the <strong>Bay</strong><br />

From page 19<br />

ably the most significant and<br />

major suburban centre on the<br />

coastal belt itself. The current<br />

phase is 2485 sqm.<br />

Existing tenants include<br />

the Henry and Ted Café,<br />

Unichem Pharmacy, Papamoa<br />

Beach Family Practice and<br />

Team Dental Papamoa, while<br />

this year has seen the opening<br />

<strong>of</strong> Papa Mo’s and the Tivoli<br />

Cinema. The Four Square<br />

superette will be completed<br />

early next year.<br />

The 135-seat cinema is the<br />

second under the Tivoli brand,<br />

co-owned by Shane Jarrett and<br />

Karan Focas, who opened their<br />

first cinema in Cambridge<br />

in 2014.<br />

Restaurateur Deniz<br />

Bektas has now also opened<br />

Mediterranean restaurant Grill<br />

and Green, and Bishnu Aryal<br />

has established another <strong>of</strong> his<br />

Great Spice chain <strong>of</strong> Indian<br />

restaurants. Rise Artisan<br />

Bakery will open at the end<br />

<strong>of</strong> <strong>2018</strong>, with more tenants<br />

set to occupy the centre, says<br />

Carrington.<br />

Benjamin says the project<br />

has been completed to a high<br />

level commercial architectural<br />

finish and said it would be<br />

fully open within two years <strong>of</strong><br />

the construction process beginning.<br />

The redesign work was a<br />

result <strong>of</strong> new tenants requiring<br />

specific changes to meet their<br />

needs, but construction has<br />

proceeded smoothly.<br />

“All the buildings have<br />

been finished to a high standard<br />

and we’ve used quality<br />

building materials,” he says.<br />

“It’s a beautiful location, a<br />

great community, and has an<br />

overall nice feel.<br />

“The <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> region<br />

is thriving, which is allowing<br />

us to become more involved<br />

in the area. We’ve now directly<br />

employed around 30 staff<br />

including myself, project managers,<br />

quantity surveyors, site<br />

managers, as well as carpenters<br />

and apprentices. We are certainly<br />

looking forward to being<br />

involved in a number <strong>of</strong> major<br />

projects in the coming year.”<br />

ABOUT LIVINGSTONE<br />

Livingstone’s history dates back to 1947 in Te Awamutu,<br />

with brothers David and Mike Livingstone taking<br />

ownership <strong>of</strong> the company in 1982.<br />

Livingstone’s head <strong>of</strong>fice is based in Hamilton.<br />

The <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>of</strong>fice was the first <strong>of</strong>fice outside<br />

Waikato and was established in 2006.<br />

Livingstone has a nationwide presence, with five <strong>of</strong>fices<br />

across four regions.<br />

Proud to be associated<br />

with the Excelsa project<br />

and the Livingstone team<br />

We are a NZ Certified Steel Fabricator so rest easy in the<br />

knowledge we manufacture structural steelwork according<br />

to international best practice<br />

Proud to have partnered with Livingstone<br />

Rod Cook - Phone 027 277 4079<br />

For more information please visit www.steelfab.co.nz<br />

info@steelfab.co.nz | 16 Carters Crescent, Cambridge, PO Box 604 | 07 827 4223


LIVINGSTONE ... 21<br />

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

Ro<strong>of</strong>ing the <strong>Bay</strong> Ltd are pleased to be involved with<br />

another successful Livingstone's project<br />

Call Neville today 021 767 448 | www.ro<strong>of</strong>ingthebay.co.nz<br />

GRINDKING HAS BEEN POLISHING<br />

CONCRETE IN THE BAY OF PLENTY FOR<br />

OVER 15 YEARS EARNING THE TRUST OF<br />

MANY HAPPY CUSTOMERS<br />

LOVING LIFE<br />

IN PAPAMOA<br />

• Quality polished concrete<br />

• All aspects <strong>of</strong> prep work<br />

• Highly experienced team<br />

• Showroom viewing by<br />

appointment<br />

PROUD TO BE PART OF THE TIVOLI<br />

BUILD AND THE LIVINGSTONE TEAM<br />

• Earthworks • Drainage • Driveways and<br />

Car Parks • Site work • Subdivisions and<br />

retirement homes • Commerical Sites<br />

Showroom<br />

17A Amber Crescent Judea, Tauranga 3110<br />

e: info@grindking.co.nz p: 07 579 9118<br />

www.grindking.co.nz<br />

10/11 Ashley Place Tauranga | 07 542 0419<br />

www.baycivil.co.nz


22 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/<strong>December</strong> <strong>2018</strong><br />

Managing equity market volatility<br />

In last month’s issue I outlined six ideas to s<strong>of</strong>ten the blow <strong>of</strong> a<br />

hypothetical downturn in equity markets. Well, October saw a<br />

hypothetical downturn become the biggest monthly market fall<br />

since 2010. What caused the downturn and how successful would<br />

the ideas have been to s<strong>of</strong>ten it, had they been implemented<br />

beforehand?<br />

Economic fundamentals<br />

are very strong, particularly<br />

in the US.<br />

However, a combination <strong>of</strong><br />

investors’ concerns resulted in<br />

October’s market sell-<strong>of</strong>f.<br />

These concerns included:<br />

uncertainty over whether an<br />

orderly exit <strong>of</strong> Britain from the<br />

EU can be achieved; increased<br />

trade tariff concerns between<br />

the US and China; uncertainty<br />

around the US mid-term election<br />

result; fears <strong>of</strong> the impact<br />

<strong>of</strong> increased interest rates in<br />

the US (and the end <strong>of</strong> quantitative<br />

easing in Europe); and<br />

concerns around the impact <strong>of</strong><br />

higher oil prices.<br />

Note that the word “uncertainty”<br />

is prevalent, and is<br />

something that investors do<br />

not like.<br />

Added to these concerns is<br />

the increasing use <strong>of</strong> computer<br />

generated trading, which tends<br />

WHAT TO DO WITH YOUR MONEY<br />

> BY BRETT BELL-BOOTH<br />

Investment Adviser with Forsyth Barr Limited in Tauranga, and an<br />

Authorised Financial Adviser. Phone (07) 577 5725 or<br />

email brett.bell-booth@forsythbarr.co.nz.<br />

to accentuate swings in market<br />

movements.<br />

The six ideas listed last<br />

month to position portfolios a<br />

bit more defensively were:<br />

1) Reduce equity weightings<br />

towards a neutral asset<br />

allocation.<br />

2) Remain well-diversified<br />

across global markets.<br />

3) Reduce exposure to small<br />

and mid-caps in preference<br />

to large-caps.<br />

4) Reduce over-weights in<br />

growth stocks and add to<br />

quality and value stocks.<br />

5) Avoid owning businesses<br />

that you wouldn’t be<br />

comfortable holding through<br />

an economic or market crisis.<br />

6) Consider investment<br />

strategies with a lower<br />

correlation to market<br />

returns.<br />

Taking each point in turn:<br />

Reducing equity weightings<br />

before an equity market downturn<br />

would result in less <strong>of</strong> a<br />

reduction in value, simply by<br />

having less invested in those<br />

types <strong>of</strong> assets “before” a<br />

downturn.<br />

Remaining regionally<br />

diversified would not have<br />

materially lessened the impact<br />

<strong>of</strong> the market downturn, with<br />

the NZX50 Index down 6.4<br />

percent in October (compared<br />

to the US Standard & Poors’<br />

500 Index down 6.8 percent in<br />

USD), the UK FTSE 100 Index<br />

down 4.9 percent (in GBP), the<br />

Japan Nikkei 225 Index down<br />

9.1 percent (in Yen), and the<br />

generally accepted measure <strong>of</strong><br />

the world markets, the MSCI<br />

World Accumulated Index<br />

down 8.5 percent (in USD),<br />

and in New Zealand dollar<br />

terms down 7.4 percent.<br />

In terms <strong>of</strong> moving more to<br />

larger companies from smaller<br />

and mid-size companies, over<br />

October in New Zealand, Large<br />

Caps were actually down 7.0<br />

percent compared with Mid-<br />

Caps which were down 5.6 percent,<br />

and Small-Caps, which<br />

were down 2.4 percent.<br />

Over the three month period<br />

to the end <strong>of</strong> October, in<br />

New Zealand there has been<br />

little difference in performance<br />

between companies <strong>of</strong> different<br />

sizes, with Large Caps<br />

down 2.1 percent, Mid-Caps<br />

down 1.2 percent, and Small<br />

Caps down 1.9 percent.<br />

The US market did show<br />

the opposite effect however,<br />

as Large Caps were down 5.18<br />

percent, compared with Mid-<br />

Caps which were down 7.94<br />

percent and Small-Caps which<br />

were down 8.89 percent.<br />

Moving from growth stocks<br />

to quality and value stocks<br />

would also have paid <strong>of</strong>f in<br />

October, with the relevant indices<br />

in the US market showing<br />

growth stocks down 7.64 percent,<br />

compared with quality<br />

stocks which were down 5.74<br />

percent and value stocks which<br />

were down 3.57 percent.<br />

The types <strong>of</strong> companies<br />

also influenced the extent<br />

<strong>of</strong> price movement. In New<br />

Zealand energy companies<br />

were down 13.6 percent and<br />

financial companies were<br />

down 9.4 percent, compared<br />

with the NZX50 Index, which<br />

was down 6.4 percent.<br />

The style <strong>of</strong> investment<br />

fund may have contributed to<br />

a s<strong>of</strong>tening <strong>of</strong> the impact <strong>of</strong> the<br />

market downturn, depending<br />

on how they managed their<br />

exposures to those sectors,<br />

regions, and companies that<br />

were more affected, and the<br />

extent <strong>of</strong> cash they held in their<br />

portfolios.<br />

Overall, applying the above<br />

strategies would most likely<br />

have s<strong>of</strong>tened the impact <strong>of</strong> the<br />

market downturn, but not completely<br />

avoided a reduction in<br />

the value <strong>of</strong> your investment<br />

portfolio. Of course, investing<br />

in equities is not necessarily<br />

optimal over shorter time<br />

periods. Successful returns,<br />

relative to your investment<br />

objectives, are best achieved<br />

through diversification and<br />

time invested in the markets,<br />

to ensure volatility such as we<br />

saw in October can be effectively<br />

managed.<br />

This column is general in<br />

nature and is not personalised<br />

investment advice. This<br />

column has been prepared<br />

in good faith based on information<br />

obtained from sources<br />

believed to be reliable<br />

and accurate. Disclosure<br />

Statements for Forsyth Barr<br />

Authorised Financial Advisers<br />

are available on request and<br />

free <strong>of</strong> charge.<br />

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largest providers <strong>of</strong> aged care in New Zealand, and also considered one <strong>of</strong> the best.


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

23<br />

Spend your Christmas<br />

break at <strong>Bay</strong>park<br />

<strong>Bay</strong>park is counting down to Christmas<br />

when the festival season is expected to<br />

bring teeming crowds.<br />

There is a sizzling lineup<br />

<strong>of</strong> some <strong>of</strong> the biggest<br />

events ever to come to<br />

the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>. For entertainment,<br />

atmosphere and<br />

splendour, <strong>Bay</strong>park is the<br />

place to be this Summer.<br />

There will be hosting a<br />

range <strong>of</strong> international artists<br />

guaranteed to get you in the<br />

mood to party. The season<br />

kicks <strong>of</strong>f with New Zealand’s<br />

biggest New Year’s festival,<br />

<strong>Bay</strong> Dreams 2019. This has<br />

grown in just three years<br />

into a sold-out festival and<br />

30, 000 revellers are set to pass<br />

through the gate on 2 January,<br />

2019.<br />

<strong>Bay</strong> Dreams will feature<br />

some <strong>of</strong> the hottest acts in<br />

the world CARDI B, MIGOS,<br />

Tash Sultana, Shapeshifter,<br />

Sticky Fingers, Peking Duk<br />

(Live), $uicideboy$, Macky<br />

Gee, Pnau and Katchafire. To<br />

ensure you make it in 2020,<br />

book in for next year as soon<br />

as possible. For more information<br />

visit www.baydreams.<br />

co.nz.<br />

<strong>Bay</strong> Dreams 2019 is sold<br />

out, but note that there are still<br />

tickets available for the <strong>of</strong>ficial<br />

<strong>Bay</strong> Dreams Pre-Party on 1<br />

January. A standalone festival<br />

in its own right, the pre-party<br />

will set the scene for the main<br />

event. Featuring some <strong>of</strong> the<br />

most notable names in music,<br />

including UK dance duo Chase<br />

& Status (DJ set), Miami rapper<br />

Smokepurpp, and hip-hop<br />

legend Grandmaster Flash.<br />

Electronic maestros Hybrid<br />

Minds, who sold out their<br />

entire previous NZ run, are<br />

onboard, with Tomorrow<br />

People, Chores and T1R flying<br />

the Kiwi flag. They’ll<br />

join the already announced<br />

Shapeshifter, L.A.B and State<br />

<strong>of</strong> Mind. With more acts still<br />

to be revealed, it’s gearing up<br />

to be the best pre-party yet.<br />

Tickets available from www.<br />

ticketfairy.co.nz<br />

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

Dreams, A Summers Day<br />

Live hits <strong>Bay</strong>park 9 January<br />

2019 headlined by Toto with<br />

Jefferson Starship and Kiwi<br />

favorites Dragon. It’s without<br />

question that legendary chartoppers<br />

Toto are currently in<br />

the middle <strong>of</strong> a major resurgence<br />

around the world. Loved<br />

for hits such as Rosanna,<br />

Africa and Hold The Line, the<br />

band has released 17 studio<br />

albums, and sold more than<br />

40 million records worldwide<br />

since forming in the 1970s.<br />

Kiwi rockers Dragon are<br />

also a major drawcard for the<br />

concert series. As the band<br />

behind hits such as April Sun<br />

in Cuba, Are You Old Enough,<br />

Rain and Still In Love With<br />

You, Dragon is one <strong>of</strong> New<br />

Zealand’s most popular live<br />

acts. Tickets available at www.<br />

theticketfairy.com<br />

And if that wasn’t enough,<br />

the following night 10 January<br />

sees A Summers Day Disco<br />

groove onto the main stage.<br />

Disco legends band together<br />

for a one-<strong>of</strong>f New Zealand<br />

show. The Jacksons, Kool<br />

& the Gang, The Pointer<br />

Sisters, Village People, Sister<br />

Sledge and The Sounds <strong>of</strong><br />

the Supremes will grace the<br />

stage over the eight hour event.<br />

Make sure you book your tickets<br />

now from www.theticketfairy.com<br />

If high octane action is<br />

more your thing, then there’s<br />

no shortage <strong>of</strong> thrills to be had<br />

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

<strong>Bay</strong>park Family Speedway<br />

has four meets over Dec-Jan,<br />

get your friends and family<br />

down and experience the<br />

excitement <strong>of</strong> speedway. For<br />

corporate hosting opportunities<br />

contact us at events@bayvenues.co.nz<br />

or phone 07 577<br />

8560.<br />

D1NZ drifting first round<br />

kicks <strong>of</strong>f at <strong>Bay</strong>park 11–13<br />

January, 2019 so check out<br />

New Zealand’s best drifters<br />

battling it out in the stadium,<br />

sliding along the concrete<br />

walls and turning tyres into<br />

smoke. This is one <strong>of</strong> the best<br />

events <strong>of</strong> the D1NZ season<br />

and showcases just how far the<br />

sport <strong>of</strong> drifting has come.<br />

For a full list <strong>of</strong> all events<br />

held at <strong>Bay</strong>park visit www.<br />

asbbaypark.co.nz or call 07<br />

577 8560.<br />

Cycling classics a boost for fans and regional tourism<br />

Cycling takes centre<br />

stage in Cambridge in<br />

January, with the town<br />

set to host the Tissot UCI<br />

Track World Cup, the world<br />

cycling body’s flagship track<br />

cycling series, as well as New<br />

Zealand’s only UCI- accredited<br />

road cycling tour, the<br />

Grassroots Trust New Zealand<br />

Cycle Classic.<br />

Starting on Friday, 18<br />

January, the Avantidrome will<br />

hold three days <strong>of</strong> Track World<br />

Cup competition, showcasing<br />

the best <strong>of</strong> international track<br />

cycling.<br />

Teams from more than 30<br />

countries, from as far afield<br />

as Canada, Belgium and Italy,<br />

will descend on Cambridge,<br />

bringing with them squads full<br />

<strong>of</strong> talented sprint and endurance<br />

riders.<br />

Competition will be fierce<br />

as nations race for valuable<br />

qualifying points for next<br />

year’s world championships<br />

in Poland, and ultimately the<br />

2020 Olympics in Tokyo.<br />

The Tissot UCI Track World<br />

Cup’s return to Cambridge<br />

comes <strong>of</strong>f the back <strong>of</strong> the successful<br />

2015 event, which saw<br />

339 riders, 7500 spectators<br />

and 100 volunteers immerse<br />

themselves in the track cycling<br />

experience.<br />

As well as international<br />

superstars such as Kristina<br />

Vogel and Jason Kenny, fans<br />

also got to witness their local<br />

heroes with the then men’s<br />

team pursuit world champion<br />

quintet showing <strong>of</strong>f their coveted<br />

rainbow stripes in front<br />

<strong>of</strong> the sell-out New Zealand<br />

crowd.<br />

The 2019 event will see<br />

three time men’s team sprint<br />

world champions Eddie<br />

Dawkins, Ethan Mitchell and<br />

Sam Webster included in a<br />

New Zealand squad bursting<br />

with proven and emerging<br />

talent.<br />

Following closely on the<br />

heels <strong>of</strong> the international track<br />

event is the Grassroots Trust<br />

New Zealand Cycle Classic.<br />

This has been moved from<br />

the Manawatu to Waipa to<br />

become the feature event <strong>of</strong> the<br />

inaugural Three Peaks Manuka<br />

Honey RIDE New Zealand’s<br />

Cycling Festival.<br />

Billed as “a carnival <strong>of</strong><br />

cycling,” it incorporates<br />

cycling events for participants<br />

and spectators <strong>of</strong> all ages, running<br />

from January 22 to 27.<br />

The UCI 2.2 New Zealand<br />

Cycle Classic has been a road<br />

cycling institution for more<br />

than 30 years and is recognised<br />

as the premier international<br />

road cycling event in<br />

New Zealand.<br />

The race has become<br />

synonymous with unearthing<br />

exciting new talent, with<br />

a number <strong>of</strong> riders going on<br />

to win stages in the Tour de<br />

France, the Tour <strong>of</strong> Italy and<br />

world championships in the<br />

following years.<br />

The two events will bring<br />

entertainment, vitality and an<br />

economic boost to the region<br />

that extends far beyond the 10<br />

days <strong>of</strong> racing.<br />

Many international teams<br />

are expected to fly in from<br />

the beginning <strong>of</strong> the new<br />

year, setting up camp in order<br />

to prepare well for the first<br />

World Cup <strong>of</strong> the 2019 calendar<br />

year.<br />

Coupled with domestic rid-<br />

ers coming for the five day<br />

UCI 2.2 Grassroots Trust New<br />

Zealand Cycle Classic, and<br />

spectators coming from far<br />

and wide, this double header<br />

<strong>of</strong> cycling action is set to kick<br />

<strong>of</strong>f the New Year well for local<br />

hospitality, accommodation,<br />

retail, tourism and transport<br />

CAMBRIDGE<br />

NEW ZEALAND<br />

18-20 JANUARY 2019<br />

providers.<br />

Having two events <strong>of</strong> this<br />

scale held in our region puts<br />

the Waikato on the world stage,<br />

with news media broadcasting<br />

the racing to a large domestic<br />

and international audience,<br />

highlighting Cambridge and<br />

the wider region as an attractive<br />

destination for visitors.<br />

Don’t be surprised if you<br />

see folks swapping the sand,<br />

sunscreen and swimming togs<br />

for hot cycling action in late<br />

January.<br />

With such a bumper line up,<br />

these are two events not to be<br />

missed!<br />

trackworldcup.nz<br />

BE THERE.


24 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/<strong>December</strong> <strong>2018</strong><br />

HR, MANAGEMENT AND RECRUITMENT<br />

Do women bear the heavier load in<br />

collaborative work environments?<br />

By CATHY HENDRY<br />

In collaborative<br />

projects, women may<br />

be more likely to take<br />

on additional work and<br />

experience burnout.<br />

Women are more likely to<br />

voluntarily assist colleagues,<br />

nurture new recruits, and take<br />

on jobs such as meeting preparation<br />

on behalf <strong>of</strong> the wider<br />

team, according to a study<br />

undertaken by the Harvard<br />

<strong>Business</strong> Review. Men are<br />

inclined to focus on achieving<br />

their own goals, while women<br />

work toward the aims <strong>of</strong> the<br />

team, with little in the way <strong>of</strong><br />

recognition or compensation.<br />

This can result in women<br />

feeling overworked and at risk<br />

<strong>of</strong> burnout, which raises questions<br />

around whether it is necessary<br />

to look at the impact <strong>of</strong><br />

collaborative work on specific<br />

individuals, both in the short<br />

term and going forward. It may<br />

be important for companies to<br />

cross-examine their own policies<br />

and practices.<br />

What affect does it have<br />

on the workplace and<br />

female colleagues?<br />

In the study, women were<br />

tending to end up with fuller<br />

loads and not actually getting<br />

what they needed to get done<br />

because they were trying to<br />

help everybody else at the<br />

same time. This can generate<br />

issues around the opportunity<br />

and desire for promotion.<br />

If women are experiencing<br />

burnout at their current level,<br />

they may be less inclined to<br />

go after a promotion or ask for<br />

remuneration increase on the<br />

basis their workload will get<br />

worse. It's possible this could<br />

impact conversations around<br />

too few women in high-level<br />

positions too.<br />

On a broader level, it<br />

affects the efficiency <strong>of</strong> team<br />

projects, could impact levels<br />

<strong>of</strong> sick leave, and may be part<br />

<strong>of</strong> a wider company culture.<br />

How should a company<br />

address the issue?<br />

Uneven workload and its<br />

associated issues is likely to<br />

be very specific to individual<br />

workplaces and more <strong>of</strong><br />

a problem in organisations<br />

where collaborative working<br />

is the norm. Where people are<br />

working individually, these<br />

issues are less likely to come<br />

through.<br />

The task for management<br />

is to identify overload by<br />

being on the lookout for how<br />

projects are being divided<br />

and for colleagues who are<br />

working late or not hitting<br />

deadlines. It's also important<br />

that colleagues who feel they<br />

are overworked recognise the<br />

issue and learn to constructively<br />

address it.<br />

Organisations can also<br />

consider policy around working<br />

style. Working uninterrupted<br />

for an hour to 90<br />

minutes every day without<br />

monitoring chats, emails or<br />

phone calls so that everyone<br />

has time to deal with their own<br />

workload can be implemented<br />

at management level. It is also<br />

worthwhile looking at the pros<br />

and cons <strong>of</strong> different working<br />

styles when it comes to collaborative<br />

projects and looking at<br />

how performance is reviewed.<br />

Cathy Hendry<br />

Senior Consultant, Tauranga<br />

P: +64 7 834 6581 M: +64 27 498 9812<br />

E: cathy@strategicpay.co.nz<br />

HELPING ORGANISATIONS<br />

SUCCEED THROUGH THE<br />

PERFORMANCE OF PEOPLE<br />

Strategic Pay is New Zealand’s largest<br />

source <strong>of</strong> remuneration knowledge<br />

We have a team <strong>of</strong> nationwide experts and solutions<br />

to suit every New Zealand <strong>Business</strong>.<br />

As your local Senior Consultant based<br />

in Tauranga, Cathy Hendry is an<br />

experienced HR Consultant who has worked<br />

with a range <strong>of</strong> public, not for pr<strong>of</strong>i t and private<br />

sector clients in New Zealand and overseas.<br />

Contact Cathy today:<br />

Cathy.Hendry@strategicpay.co.nz<br />

07 834 6581<br />

027 498 9812<br />

Specialising in remuneration consulting for over<br />

10 years, Cathy’s experience includes:<br />

• market benchmarking<br />

• equal pay audits<br />

• job analysis<br />

• incentive design<br />

• pay structure design<br />

• pay equity concerns<br />

• job mapping<br />

• job evaluation<br />

www.strategicpay.co.nz | info@strategicpay.co.nz<br />

Auckland | Hamilton | Wellington | Christchurch | Dunedin<br />

StrategicPay


HR, MANAGEMENT AND RECRUITMENT<br />

Crossing Christmas<br />

party lines<br />

HUMAN RESOURCES<br />

> BY KELLIE HAMLETT<br />

Director, Recruitment & HR Specialist, Talent ID Recruitment Ltd<br />

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

25<br />

The <strong>of</strong>fice Christmas party<br />

is an occasion many<br />

Kiwis look forward to all<br />

year. It’s the ideal opportunity<br />

for employees and employers<br />

to get together in a more<br />

relaxed environment and toast<br />

the year that has been.<br />

For some though, the grey<br />

area between social outing<br />

and work function can easily<br />

become blurred. Especially<br />

when sun and alcohol are in<br />

the mix.<br />

It is the employer’s job to<br />

ensure everyone knows the<br />

behavioural guidelines <strong>of</strong> the<br />

event and how attendees are<br />

expected to behave.<br />

Unfortunately, without<br />

guidance, some can take the<br />

relaxed feel <strong>of</strong> the event too<br />

far. Sometimes the result is just<br />

Monday morning gossip.<br />

But sometimes the outcome<br />

can be much worse and<br />

can include disciplinary processes<br />

and occasionally even<br />

dismissal.<br />

Which means that setting<br />

Hydrographers recognise <strong>Bay</strong> man’s<br />

30-plus year career<br />

By DAVID PORTER<br />

Greg Cox’s decades-long<br />

career in hydrography<br />

was acknowledged<br />

by international peers at the<br />

Australasian Hydrographic<br />

Society’s HYDRO18<br />

Conference in <strong>November</strong>.<br />

The Mount Maunganuibased<br />

hydrographic survey<br />

expert and director <strong>of</strong><br />

Discovery Marine (DML)<br />

recently received the society’s<br />

Award <strong>of</strong> Merit for Career<br />

Achievement in Hydrography.<br />

The award is presented to people<br />

who have made significant<br />

contributions to the industry<br />

and related sciences.<br />

Cox said it was “very humbling”<br />

to receive the award.<br />

But he also praised his team’s<br />

work.<br />

“We have a great team at<br />

Discovery Marine so I really<br />

see this award as acknowledgement<br />

<strong>of</strong> the work they do<br />

and the teamwork we bring to<br />

each <strong>of</strong> our projects.”<br />

Hydrographic surveying is<br />

the science <strong>of</strong> measuring and<br />

describing marine features.<br />

The information provides<br />

to end-users, typically those<br />

involved with marine navigation,<br />

coastal engineering, construction,<br />

and monitoring. It<br />

usually involves surveying the<br />

sea bed, lakes, rivers, shorelines,<br />

tides, currents, and submerged<br />

objects.<br />

Naval background<br />

Cox started DML in 1998<br />

after 13 years in the Royal<br />

New Zealand Navy, where he<br />

was assistant hydrographer<br />

navy and achieved the rank<br />

<strong>of</strong> lieutenant commander. He<br />

has since built the company<br />

from a start-up to a team <strong>of</strong> 12<br />

full-time staff and additional<br />

seasonal contractors.<br />

The team works on a variety<br />

<strong>of</strong> hydrographic survey projects<br />

throughout Australasia<br />

and the Pacific Islands.<br />

Their diverse client base<br />

includes central government,<br />

regional councils, engineers,<br />

coastal scientists, public utilities,<br />

infrastructure and port<br />

authorities.<br />

We work in a<br />

relatively small and<br />

niche industry, so<br />

one <strong>of</strong> our goals<br />

has always been<br />

about growing the<br />

skills <strong>of</strong> our staff.<br />

– Greg Cox<br />

DML is also a panel supplier<br />

to Land Information New<br />

Zealand, New Zealand’s nautical<br />

charting authority.<br />

Cox and his team’s work<br />

in collecting bathymetry - the<br />

measurement <strong>of</strong> water depth -<br />

and other related data is used<br />

to help ensure safe ship operations<br />

in New Zealand waters.<br />

The information also assists<br />

with coastal erosion monitoring,<br />

tsunami modelling,<br />

marine construction projects<br />

and port operations.<br />

“The technology in this<br />

industry is always evolving,<br />

and with that we are constantly<br />

evolving and learning too,”<br />

said Cox.<br />

“I’ve been doing this work<br />

for more than 30 years and<br />

I still don’t know everything<br />

there is to know about hydrographic<br />

surveying – this definitely<br />

isn’t a job where you<br />

stay static.”<br />

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

development is a priority for<br />

Cox, as is helping the next<br />

generation <strong>of</strong> hydrographic<br />

specialists come through the<br />

ranks.<br />

“We work in a relatively<br />

small and niche industry, so<br />

one <strong>of</strong> our goals has always<br />

been about growing the skills<br />

<strong>of</strong> our staff so they’re equipped<br />

to take on whatever the job<br />

throws at them.”<br />

And while there is a big<br />

technical component in the<br />

work, Cox said that s<strong>of</strong>t skills<br />

were just as important.<br />

“You’re out on the water<br />

dealing with the elements so<br />

you need a certain amount <strong>of</strong><br />

adaptability and the ability to<br />

make decisions on your feet<br />

and that’s something we really<br />

encourage from our team.”<br />

Recent projects for DML<br />

have included surveying the<br />

East Cape <strong>of</strong> New Zealand,<br />

including areas around White<br />

Island, for navigational safety<br />

purposes. In the past couple<br />

<strong>of</strong> years they have collaborated<br />

with NIWA in the delivery<br />

<strong>of</strong> New Zealand’s first multidisciplinary<br />

survey <strong>of</strong> Queen<br />

Charlotte Sound, and in 2017<br />

worked with navigation solutions<br />

provider iXBlue to survey<br />

the entire Kaikoura coast<br />

post-earthquake.<br />

Annual surveys <strong>of</strong> the Port<br />

some simple rules in advance<br />

and sharing these with all<br />

who are attending will help to<br />

ensure everybody’s their safety<br />

<strong>of</strong> Tauranga and local marinas<br />

continue to keep Cox and his<br />

team busy, and they’re also<br />

considering options for a survey<br />

project <strong>of</strong> Pelorus Sound,<br />

in the Marlborough Sounds,<br />

in 2019.<br />

Cox said New Zealand<br />

was better for private hydrographers<br />

than some countries,<br />

where the type <strong>of</strong> work DML<br />

carried out was constrained to<br />

government departments.<br />

“There’s a lot <strong>of</strong> opportunity<br />

for us and I’m looking forward<br />

to seeing what that looks<br />

like in the years to come.”<br />

and enjoyment.<br />

Providing food, itineraries,<br />

safe transport options<br />

and leading by example are<br />

the basics <strong>of</strong> a strong plan <strong>of</strong><br />

action that will help the event<br />

run smoothly.<br />

Many employers choose to<br />

give their staff a little leeway<br />

during the Christmas party.<br />

But it is vital that they<br />

can read the signs when an<br />

employee is edging towards<br />

crossing Christmas party lines,<br />

and that they know when to<br />

interfere.<br />

Tactfully removing people<br />

from the situation can <strong>of</strong>ten<br />

be the best way to diffuse an<br />

issue.<br />

Morally, the safety <strong>of</strong> staff<br />

is within the hands <strong>of</strong> the<br />

employer. Be aware <strong>of</strong> when<br />

an employee is feeling uncomfortable,<br />

unsafe or unwell,<br />

and aid them so their situation<br />

doesn’t get uncomfortable or<br />

dangerous.<br />

The employer doesn’t need<br />

to necessarily view their role<br />

as that <strong>of</strong> a baby-sitter.<br />

But they do need to see<br />

themselves as ensuring everyone<br />

is safe and comfortable<br />

when bringing everyone<br />

together in a carefully planned<br />

out event that represents their<br />

brand and company ethos.<br />

Team building and bonding<br />

activities, with family invited,<br />

can be a great alternative to the<br />

classic <strong>of</strong>fice party’<br />

So remember that an occasion<br />

that can be the year’s<br />

highlight for some, can be<br />

problematic for both employers<br />

and employees.<br />

Management, guidelines<br />

and action plans will ensure the<br />

<strong>of</strong>fice Christmas function runs<br />

as smoothly as possible this<br />

year and make sure it something<br />

every employee looks<br />

forward to for years to come.<br />

The DML team: Award an acknowledgement <strong>of</strong> the<br />

team, says Greg Cox (far left, front). Photo/Supplied.


26 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/<strong>December</strong> <strong>2018</strong><br />

The carrot vs the stick<br />

There has long been a debate in business regarding the carrot<br />

and the stick, as in what works better - an incentive to behave<br />

properly, or a disincentive to misbehave. When it comes to credit<br />

management there are definitely two distinct schools <strong>of</strong> thought.<br />

CREDIT MANAGEMENT<br />

> BY NICK KERR<br />

Nick Kerr is Area Manager BOP for EC Credit Control NZ Ltd.<br />

He can be reached at nick.kerr@eccreditcontrol.co.nz<br />

OPTION 1: The Carrot<br />

- the prompt payment<br />

discount<br />

This approach is used by many<br />

power companies, amongst<br />

others. When a client pays at<br />

or before the due date, they<br />

get up to a 15 percent discount,<br />

which is a strong incentive<br />

indeed and works for a<br />

large corporation that has large<br />

administrative overheads.<br />

The client question “what’s<br />

in it for me” is asked and<br />

answered swiftly. And because<br />

it is a common industry practice,<br />

very little market education<br />

is needed and the amount<br />

<strong>of</strong> clients paying late compared<br />

to similar providers that do<br />

not <strong>of</strong>fer the prompt payment<br />

discount would be markedly<br />

different in my view.<br />

The issue with applying<br />

this to the small and medium<br />

enterprise market is that<br />

typically a client will pay the<br />

lowest amount communicated.<br />

Therefore the need to<br />

have very strong yet easily<br />

understood contractual terms<br />

is essential. Added to this, it<br />

will require a large amount <strong>of</strong><br />

client education as it is shift in<br />

standard practice, which may<br />

make it cumbersome.<br />

The other issue with the<br />

above is one <strong>of</strong> margin. To<br />

shift the engrained behavior <strong>of</strong><br />

a typical SME client, the discount<br />

will need to be considerable.<br />

In my experience anything<br />

less than 10 percent has<br />

little or no effect, which leads<br />

to an interesting situation.<br />

The average client these<br />

days <strong>of</strong> any product or service<br />

is more educated and has<br />

access to more instant information<br />

than ever before, including<br />

wholesale prices for goods,<br />

industry average charge rates<br />

for time, IRD vehicle running<br />

cost recommendations and the<br />

like. If a provider wants to<br />

adopt the prompt payment discount<br />

option they have two<br />

options - swallow a 10 percent<br />

reduction on gross margin or<br />

try and build in a 10 percent<br />

buffer to all priced jobs, while<br />

still trying to remain viable<br />

and competitive.<br />

OPTION 2: The stick<br />

- the finance company<br />

approach<br />

As everyone knows well, if you<br />

have a loan with a finance provider<br />

and you miss a scheduled<br />

payment there is a financial<br />

penalty. Almost every business<br />

person or individual has<br />

accessed a loan or funding <strong>of</strong><br />

some kind, or knows a person<br />

who has experienced the consequences<br />

<strong>of</strong> not adhering to the<br />

terms that have been agreed.<br />

Using this approach in an<br />

SME business is relatively<br />

elementary. If the agreed<br />

payment is due in seven days<br />

or by the 20th <strong>of</strong> the month<br />

following and is not made,<br />

then there is a late payment<br />

fee or interest is applied to<br />

the account and this reoccurs<br />

at agreed intervals until the<br />

principal amount plus any late<br />

payment fees and interest is<br />

paid in full.<br />

Of course this is only legal<br />

if agreed terms are in place and<br />

have been legally disclosed;<br />

large fines can potentially be<br />

levied against businesses that<br />

do this incorrectly. The benefit<br />

<strong>of</strong> this “carrot” approach is<br />

that it stops invoices devaluing<br />

each month and preserves<br />

cash flow level once paid.<br />

However, businesses <strong>of</strong>ten<br />

neglect to charge the late payment<br />

fees and interest even<br />

when they have agreed terms<br />

with the legal right to do so.<br />

This leads to not only a devaluation<br />

<strong>of</strong> the invoice, but also<br />

does not encourage improved<br />

client payment behavior. Tools<br />

only work when you use them<br />

properly.<br />

The advantage <strong>of</strong> the second<br />

option is that is very easy<br />

to administer through any common<br />

accounts management system<br />

such as Xero, MYOB or<br />

Quickbooks and allows the provider<br />

to retain pricing integrity,<br />

which allows them to be more<br />

competitive. The second advantage<br />

is that late payment fees<br />

are an accepted and wellknown<br />

device that most if not all clients<br />

have been exposed to. It is generally<br />

seen as a natural and automatically<br />

applied consequence<br />

<strong>of</strong> the client’s own decision and<br />

not a selective punishment.<br />

I have implemented the second<br />

option into thousands <strong>of</strong><br />

businesses and on average we<br />

have seen a reduction in payment<br />

times <strong>of</strong> around 11 days in<br />

habitual late paying clients and<br />

in some extreme cases improvements<br />

<strong>of</strong> 30 days or more.<br />

Just a thought.<br />

Red Stag development selected as gluelam showcase<br />

Clearwater Quays<br />

Apartments, part <strong>of</strong><br />

the Red Stag group <strong>of</strong><br />

vertically integrated wood<br />

processing and development<br />

businesses, has been selected<br />

to showcase the use <strong>of</strong> engineered<br />

mass timber in mid-rise<br />

buildings.<br />

The Ministry <strong>of</strong> Primary<br />

Industries (MPI) has<br />

announced a partnership with<br />

Red to deliver Mid-rise Wood<br />

Construction, a four-year,<br />

$5 million Primary Growth<br />

Partnership (PGP) programme.<br />

Red Stag Investments is<br />

contributing $3 million (60%)<br />

and MPI $2 million (40%)<br />

over the four-year term <strong>of</strong> the<br />

programme. Clearwater Quays<br />

is the first <strong>of</strong> two builds under<br />

the programme and will be a<br />

showcase example <strong>of</strong> the use<br />

<strong>of</strong> large format glue laminated<br />

(glulam) beams and cross laminated<br />

timber (CLT) panels.<br />

The system makes for a lightweight,<br />

strong and rapid building<br />

system, using components<br />

that are precision engineered<br />

<strong>of</strong>f-site.<br />

“Combining CLT, glulam<br />

and panelised framing timber<br />

is a cost-effective, fast, resilient,<br />

and sustainable system<br />

for mid-rise construction,” said<br />

Red Stag Group chief executive<br />

Marty Verry.<br />

“Our PGP programme aims<br />

to encourage widespread adoption<br />

<strong>of</strong> precision-engineered<br />

timber in mid-rise building<br />

construction in New Zealand.”<br />

Boosting wooden<br />

construction<br />

The new programme aims<br />

to boost mid-rise building construction<br />

using New Zealandengineered<br />

and panelised<br />

framing timber and deliver a<br />

range <strong>of</strong> regional, social, environmental<br />

and other benefits..<br />

The five-storey apartment<br />

in Christchurch is being built<br />

by NaylorLove with completion<br />

expected in the summer<br />

<strong>of</strong> 2019-20.<br />

The programme will assemble<br />

a collective <strong>of</strong> excellence –<br />

a pool <strong>of</strong> New Zealand pr<strong>of</strong>essionals<br />

experienced in mid-rise<br />

wood building design and construction<br />

– to help share and<br />

grow knowledge and expertise<br />

within the broader industry,<br />

according to MPI.<br />

The two mid-rise wooden<br />

buildings will act as reference<br />

sites and inform case studies.<br />

Steve Penno, director<br />

investment programmes at<br />

MPI, said benefits from the<br />

PGP programme will be felt<br />

beyond the co-investors.<br />

“Engineered timber provides<br />

the opportunity for New<br />

Zealand to add significant<br />

value to New Zealand grown<br />

timber,” he said.<br />

“It’s also a natural and<br />

sustainable resource. The<br />

programme aims to substantially<br />

increase demand for<br />

engineered wood products in<br />

buildings, which will have<br />

associated flow-on benefits<br />

across the entire supply chain.<br />

This will create new regional<br />

jobs and renewed investment<br />

in forestry, processing, manufacturing,<br />

construction, and<br />

prefabrication.”<br />

Verry said the apartments<br />

had been designed to both<br />

showcase the materials used,<br />

as well as be ideal for those<br />

looking for a spacious, warm,<br />

single-level apartment that<br />

owners don’t need to worry<br />

about if they travel for extended<br />

periods <strong>of</strong> time.<br />

The building has eight boutique<br />

apartments ranging from<br />

150sqm to 235sqm with three<br />

already sold. The developer<br />

Clearwater Quays: A showcase for<br />

glulam construction. Graphic/Supplied.<br />

plans to sell just two more<br />

prior to construction. Red<br />

Stag will also be developing<br />

an integrated health spa, gym<br />

and café/restaurant near to the<br />

boutique apartment building.<br />

Verry said mass timber had<br />

proven very popular overseas<br />

and was starting to be recognised<br />

more in New Zealand as<br />

a high performing solution in<br />

earthquake zones and as a clean<br />

green method <strong>of</strong> building.<br />

“As a large-scale wooden<br />

system it also performs well in<br />

fires, although we will be adding<br />

sprinklers for additional<br />

peace <strong>of</strong> mind. Australian and<br />

UK research has also proven<br />

wood and natural materials<br />

to have significant health and<br />

relaxation effect on occupants,<br />

so that is something we and the<br />

government are also very keen<br />

to promote.”<br />

Verry said engineered timber<br />

provided a very strong, low carbon<br />

and comparably low-cost<br />

alternative to steel and concrete.<br />

“It’s easier to transport,<br />

relatively light and has outstanding<br />

earthquake and fire<br />

resilience. The use <strong>of</strong> prefabrication<br />

can speed up construction<br />

by as much as 30 percent<br />

and reduce cost to help meet<br />

New Zealand’s acute need for<br />

more accommodation.”<br />

Time for change? Be your own boss. Talk to us today.<br />

Importer - Fully Managed Kiwifruit Investment<br />

BP Service Station<br />

Bethlehem Bakery<br />

$1.3M Cash Surplus - <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> International Patents - <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> Premium Brand - <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> High Pr<strong>of</strong>ile Location<br />

More <strong>Business</strong> Wanted<br />

• Service <strong>Business</strong>es • Hospitality<br />

• Import / Distribution / Wholesale<br />

• Childcare<br />

This is an impressive opportunity to<br />

buy this vibrant business that has and<br />

is experiencing significant growth.<br />

Ideally suited to an investor looking for<br />

a governance role in a thriving business<br />

with scope to grow. It is a Importer,<br />

Distributor, Wholesaler and Retailer - it’s<br />

the whole package.<br />

Asking $4,500,000<br />

Nico Wamsteker 021 933 313<br />

Ref 30070<br />

Available for purchase is the intellectual<br />

property for this award-winning<br />

machine with Patents in the major<br />

Kiwifruit producing nations <strong>of</strong> New<br />

Zealand, China, Europe, and Chile. New<br />

cutting-edge technology PollenSmart is<br />

the way forward for Kiwifruit farming and<br />

represents a great investment.<br />

Price by Tender<br />

Murray Kidd 021 368 441<br />

Ref 29985<br />

This BP is really pumping! A new owner<br />

will walk into a turn key operation with<br />

business issues sorted and customer<br />

experience the day to day priority. As<br />

part <strong>of</strong> the BP 2Go independent dealer<br />

network, you benefit from the strategic<br />

branding initiatives to boost Income.<br />

Asking $945,000<br />

Nico Wamsteker 021 933 313<br />

Ref 30170<br />

AUCKLAND WAIKATO BAY OF PLENTY ROTORUA - TAUPO HAWKES BAY MANAWATU WELLINGTON CANTERBURY OTAGO<br />

An attractive <strong>of</strong>fer has come to market<br />

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heart <strong>of</strong> Bethlehem. Rent is unheard <strong>of</strong><br />

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Call Wayne for more details.<br />

Asking $495,000<br />

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Ref 30201<br />

e<br />

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e<br />

Murray Kidd<br />

021 368 441<br />

murrayk@abcbusiness.co.nz<br />

Nico Wamsteker<br />

021 933 313<br />

nicow@abcbusiness.co.nz<br />

Wayne Ronald<br />

021 064 7355<br />

wayner@abcbusiness.co.nz<br />

www.businessesforsale.co.nz<br />

Licensed REAA 2008


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

27<br />

How a coach can help a business<br />

<strong>Business</strong> in many senses is much like a sport It’s competitive<br />

and it requires focus, strategy and ongoing support from those<br />

who in a similar position or have walked in those shoes before.<br />

You don’t <strong>of</strong>ten find sports<br />

teams without a coach<br />

nearby, someone the<br />

team can approach for advice,<br />

support and direction. Why<br />

then are businesses very <strong>of</strong>ten<br />

competing alone?<br />

Progressive accounting<br />

firms are now utilising their<br />

extensive understanding <strong>of</strong><br />

business to act as business<br />

coaches.<br />

Experience is drawn from<br />

both running a business hands<br />

on and pulling insights from<br />

businesses they deal with on a<br />

daily basis.<br />

While compliance still<br />

remains an integral part <strong>of</strong> an<br />

accounting firm’s daily workload,<br />

advisory and coaching<br />

are now becoming highly<br />

sought after services.<br />

<strong>Business</strong> coaches will take<br />

a bird’s eye view <strong>of</strong> a business,<br />

take time to understand what<br />

makes it tick and where its<br />

points <strong>of</strong> improvement are.<br />

This usually requires<br />

a series <strong>of</strong> discovery meetings.<br />

<strong>Business</strong>es will talk<br />

through their current position,<br />

what they are good at and<br />

where they have room for<br />

improvement.<br />

Quite <strong>of</strong>ten coaches will see<br />

opportunities a business hasn’t<br />

even considered.<br />

These insights are one <strong>of</strong><br />

the benefits <strong>of</strong> working with<br />

someone who is not part <strong>of</strong><br />

the businesses’ day-to-day<br />

operation.<br />

<strong>Business</strong>es can then be<br />

assisted in formulating plans,<br />

strategies and KPIs to implement,<br />

monitor and refine new<br />

or improved processes.<br />

There are multiple measures<br />

<strong>of</strong> a businesses success,<br />

such as productivity, financial<br />

outcomes or customer<br />

satisfaction.<br />

These are all points which<br />

accounting firms are experienced<br />

in interpreting.<br />

<strong>Business</strong> coaches<br />

will take a bird’s<br />

eye view <strong>of</strong> a<br />

business, take time<br />

to understand what<br />

makes it tick and<br />

where its points <strong>of</strong><br />

improvement are.<br />

The attraction <strong>of</strong> accounting-based<br />

coaches is that they<br />

have the ability to cross reference<br />

coaching with business<br />

results.<br />

Clients like to see that when<br />

a strategy is implemented, a<br />

result is seen in the form <strong>of</strong><br />

pr<strong>of</strong>it increase or increased<br />

efficiency.<br />

Quite <strong>of</strong>ten business coaching<br />

goes beyond the analytical<br />

side <strong>of</strong> business.<br />

A business owner may find<br />

themselves a part <strong>of</strong> the business<br />

where family life and<br />

extra curricular activities take<br />

a back seat to the day-to-day<br />

running <strong>of</strong> a business.<br />

Coaches can implement a<br />

strategy that will allow key<br />

business owners and managers<br />

to be able to temporarily step<br />

away from operations without<br />

disruptting productivity.<br />

Engaging a business coach<br />

can be a big decision.<br />

It can involve discussing<br />

your business’s most vulnerable<br />

points and digging to the<br />

core <strong>of</strong> how the company can<br />

be run more effectively.<br />

To ensure a coach is a<br />

good fit for your business a<br />

no obligation and free discussion<br />

is common, so feel free<br />

to get to know your potential<br />

coach and make sure they are<br />

a good fit.<br />

Michelle Hill is advisory<br />

partner at BDO Rotorua<br />

and one <strong>of</strong> Rotorua’s leading<br />

business advisory coaches.Talk<br />

to Michelle and the<br />

team at BDO about how they<br />

can help you to achieve your<br />

business goals.<br />

MONEY MATTERS<br />

> BY MICHELLE HILL<br />

Director and Partner at BDO Rotorua, Chartered Accountants<br />

and Advisers. To find out more visit bdorotorua.co.nz or email<br />

rotorua@bdo.co.nz


28 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/<strong>December</strong> <strong>2018</strong><br />

TE PUKE BUSINESS EXCELLENCE AWARDS<br />

Jellicoe’s father and son team<br />

take out Te Puke awards<br />

Jellicoe Industrial Park, run by John and<br />

Warren Dohnt, took out the Supreme<br />

Award at this year’s Te Puke <strong>Business</strong><br />

Excellence Awards.<br />

All photos courtesy <strong>of</strong> Te Puke <strong>Business</strong> Awards.<br />

By DAVID PORTER<br />

John Dohnt said the awards<br />

provided good recognition<br />

for local businesses.<br />

“It’s an accolade to be<br />

judged by the rest <strong>of</strong> your<br />

peers and to come out on top,”<br />

he said. “It means you must be<br />

doing something right.”<br />

For the full list <strong>of</strong> winners,<br />

please see the accompanying<br />

table.<br />

The awards night was<br />

well-supported with a crowd <strong>of</strong><br />

120 at the Te Puke Memorial<br />

Hall, and featured a special<br />

Sikh theme in recognition <strong>of</strong><br />

the significant commitment<br />

they made to the local business<br />

community.<br />

“The awards are in their<br />

twelfth year now and it’s always<br />

a celebration <strong>of</strong> excellence<br />

and achievement and has solid<br />

support,” said Mark Boyle,<br />

from event organiser Te Puke<br />

Economic Development Group.<br />

“Our sponsors are terrific.”<br />

Lance Ewens, from<br />

Bennetts proactive, which has<br />

been a long-term principal<br />

sponsor <strong>of</strong> the awards, said<br />

the local business characteristics<br />

could be summed up by<br />

the words “diversity, innovation,<br />

success, development and<br />

growth.”<br />

Supreme Award Winners<br />

Jellicoe - which also won<br />

the Zespri Agricultural,<br />

Horticultural and Industrial<br />

Award - owns and leases out<br />

premises to a diversified variety<br />

<strong>of</strong> businesses in buildings it<br />

has developed or improved on<br />

the site <strong>of</strong> the former Te Puke<br />

dairy factory.<br />

The industrial park is located<br />

on Jellicoe St, opposite<br />

Donovan Park and includes the<br />

It’s an accolade to<br />

be judged by the rest<br />

<strong>of</strong> your peers and to<br />

come out on top.<br />

– John Dohnt<br />

Supreme winner Jellicoe Industrial Park. (from<br />

left) Bennetts Proactive’s Michelle Oldfield,<br />

Jellicoe’s Jenni, John and Warren Dohnt, and<br />

Bennetts Proactive’s Lance Ewens.<br />

Waipuna Hospice on its site.<br />

“We bought it several<br />

years ago and have slowly<br />

brought it up to standard,” said<br />

John Dohnt.<br />

“We make an effort for our<br />

tenants - you have to make<br />

sure you look after them well.”<br />

Jellicoe also has other commercial<br />

properties in Te Puke.<br />

John Donht said he brought<br />

his son Warren into the business<br />

three years ago when he<br />

completed 18 years <strong>of</strong> naval<br />

service after reaching a senior<br />

ranking.<br />

“Since I brought my son<br />

into the business as general<br />

manager we’ve expanded and<br />

have done another five buildings<br />

in Te Puke,” said Dohn.<br />

He added that Warren had<br />

brought to the business systems<br />

and management experience<br />

and expertise from his time serving<br />

in the navy and had made a<br />

big difference to Jellicoe’s.<br />

The judges said the supreme<br />

winners operated with excellent<br />

systems and were committed<br />

to the wellbeing, growth<br />

and development <strong>of</strong> Te Puke.<br />

Retail Award winner Maree Cooper<br />

<strong>of</strong> Street to Surf Clothing.<br />

Significant business scale<br />

“They are a business <strong>of</strong> significant<br />

scale with plans for continuing<br />

growth,” the judges said.<br />

A highlight <strong>of</strong> the evening<br />

was a special presentation given<br />

to Des and Shirley McGregor,<br />

who came to Te Puke in 1960<br />

TE PUKE BUSINESS EXCELLENCE AWARDS –<br />

WINNERS<br />

Des and Shirley McGregor, recognised<br />

for long community contribution.<br />

Award categories<br />

Winners<br />

Bennetts Proactive Supreme Award<br />

Jellicoe Industrial Park<br />

WBOPDC Retail Award<br />

Street to Surf Clothing<br />

Bupa Food & Beverage Award The Daily Cafe<br />

Zespri Agricultural, Horticultural and Industrial Award Jellicoe Industrial Park<br />

Trevelyan’s Service Award<br />

Dobsons<br />

Te Puke EDG Emerging <strong>Business</strong> Award<br />

Kansai Sushi<br />

NZ Parliamentary Services Employee <strong>of</strong> the Year Award Jenny Wotton<br />

www.westernbay.govt.nz | Te Kaunihera a rohe mai i nga Kuri-a-Wharei ki Otamarakau ki te Uru<br />

Employee <strong>of</strong> the Year Jenny Wootten.


TE PUKE BUSINESS EXCELLENCE AWARDS<br />

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

29<br />

Emerging <strong>Business</strong> Award<br />

winners from Kansai Sushi.<br />

Food & Beverage Award winners The Daily Team.<br />

to purchase a grocery business<br />

on Jellicoe Street.<br />

They have since gone on<br />

to play a major role in the<br />

Te Puke business community<br />

with the Te Puke Hotel, and<br />

the couple received a standing<br />

ovation in acknowledgement<br />

<strong>of</strong> their 58 years <strong>of</strong> service and<br />

business life in the community.<br />

Guest speaker and former<br />

Sevens Rugby coach Sir Gordon<br />

Tietjens spoke <strong>of</strong> how both business<br />

and sport revolved around<br />

values like honesty, respect,<br />

humility and leadership.<br />

He’s a believer in the<br />

TEAM acronym – “together<br />

everyone achieves more” –<br />

and said he believed victories<br />

came from the best teams, not<br />

the best players.<br />

Jellicoe’s Dohnt said that<br />

the completion <strong>of</strong> the new<br />

highway and bypass had initially<br />

been met with “doom<br />

and gloom” in Te Puke.<br />

“But we’ve found we’re<br />

seeing five or six businesses<br />

who came from the Mount and<br />

established themselves over<br />

here,” he said.<br />

“There is plenty <strong>of</strong> space,<br />

the traffic isn’t as bad as the<br />

Mount, we’re close to the port<br />

and the rental cost per sqm is<br />

cheaper than the Mount.<br />

“That’s why a lot <strong>of</strong> people<br />

have been looking to re-establish<br />

themselves in Te Puke.”<br />

The team from Service Award winners Dobson.<br />

TERMS<br />

OF TRADE<br />

CREDIT<br />

CHECKING /<br />

MONITORING<br />

DEBT<br />

COLLECTION<br />

Nick from<br />

EC Credit Control<br />

is the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong>s leading<br />

debt prevention<br />

expert.<br />

CREDIT<br />

MANAGEMENT<br />

TRAINING<br />

FOR A NO OBLIGATION MEETING CALL OR EMAIL NICK TODAY<br />

nick.kerr@eccreditcontrol.co.nz | P: 027 713 2128<br />

0800 EC GROUP | www.eccreditcontrol.co.nz


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

CONNECTING<br />

BUYERS AND<br />

SELLERS OF<br />

QUALITY<br />

BUSINESSES<br />

First on the scene<br />

Pictures from recent <strong>Bay</strong> networking events.<br />

Photo courtesy <strong>of</strong> Helen Chapman Photography, Natalie Murdoch Photography and Exceed.<br />

When is the right time to sell<br />

your business? Right now.<br />

At TABAK, we promise to guide<br />

you through the sales process<br />

with focus, integrity and<br />

complete confidentiality.<br />

1<br />

1 Stan Gregec, Tauranga Chamber <strong>of</strong> Commerce, with Alana Tyrell and Meta Tyrell (far right), Alignz Recruitment. Alan and<br />

Meta won tickets to the recent Dionne Warwick concert at <strong>Bay</strong> Arena from Sante Fe and <strong>Bay</strong> Blinds owners Paul and Gail<br />

Christie (3rd and 4th right). 2 Overview <strong>of</strong> Sante Fe’s BA5 event.<br />

2<br />

FOCUS • INTEGRITY<br />

CONFIDENTIALITY<br />

3<br />

3 Dinesh Kuruwaitage and Peter Marks, Santa Fe. 4 Vinnie Smith and Mark McGarva, <strong>Bay</strong> Blinds.<br />

4<br />

WHY TABAK<br />

INDUSTRY EXPERIENCE<br />

REALISTIC APPRAISALS<br />

TEAM APPROACH<br />

5<br />

6<br />

5 Nick Kerr, EC Credit Control, with David Porter and Pete Wales, <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> <strong>News</strong> at the Westpac Tauranga<br />

Awards. 6 Matt Dovey, AJC Distribution, Cliff Tolley, Quinovic, Lisa Ford, <strong>Business</strong> Mentoring, Robyn Pickerill, Franchise<br />

Association <strong>of</strong> NZ chief executive, Margaux Tolley, Quinovic, and Karen Wagstaff, Money Metrics, at the recent FANZ BOP<br />

meeting at Exceed.<br />

PRE-QUALIFIED BUYERS<br />

P5177Y<br />

147 Cameron Road<br />

p. 07 578 6329<br />

e. tauranga@tabak.co.nz<br />

w. tabak.co.nz<br />

7<br />

7 Karen and David Dovey <strong>of</strong> Exceed with Pete Wales, <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> <strong>News</strong> (centre). 8 River Jermyn, Quentosity,<br />

Campbell Giacon, AJC Distribution, Mathew Burton, Kitchen Studio, and Steve Smith, Embroid Me.<br />

8


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

31<br />

Exposing the myths<br />

<strong>of</strong> aged care<br />

Gone are the days where facilities would be described as<br />

smelling “like cabbage”, or you would hear <strong>of</strong> residents being<br />

restrained to keep them seated, and bed rails used to confine<br />

them to their beds.<br />

AGEING AND WELLNESS<br />

> BY MELISSA HARRIS<br />

Melissa Harris is the Facility Manager <strong>of</strong> Radius Althorp in<br />

Tauranga, Radius Residential Care Ltd. Phone (07) 5432912 or<br />

email Melissa.Harris@radiuscare.co.nz<br />

We no longer accept<br />

the institutionalised<br />

approach <strong>of</strong> requiring<br />

all residents to be up, showered<br />

and in the lounge by 9am<br />

for newspaper reading.<br />

Aged care in today’s world<br />

paints a much brighter picture<br />

<strong>of</strong> putting people first.<br />

Today’s residents are<br />

encouraged to stay in their<br />

own homes as long as possible,<br />

resulting in significantly older<br />

people with more complex<br />

needs now commonly being<br />

admitted to aged care facilities,<br />

according to reports.<br />

The challenge here is<br />

accepting that by the time an<br />

older person is admitted to care,<br />

their quality <strong>of</strong> life has <strong>of</strong>ten<br />

diminished to the point where<br />

the resident is unable to participate<br />

in the innovative and<br />

inspiring programmes <strong>of</strong>fered,<br />

due to health limitations or disease<br />

process progression.<br />

If that person had come into<br />

care at an earlier stage, their<br />

quality <strong>of</strong> life may have been<br />

more social, stimulating and <strong>of</strong><br />

a much higher standard.<br />

A “one size fits all” approach<br />

no longer is acceptable.<br />

The “institution” concept is<br />

now a myth, and is frowned<br />

upon in today’s world, as providers<br />

are expected to consider<br />

individual needs and goals,<br />

and to tailor care packages to<br />

meet these.<br />

One challenge with ensuring<br />

this is employing proactive<br />

staff who think and interact<br />

outside the box, and leave the<br />

world in a better place than<br />

when the day started.<br />

Care staff work incredibly<br />

hard, and creating a culture<br />

<strong>of</strong> celebrating little wins each<br />

day is vital to reinforce to staff<br />

that they are valued and do an<br />

amazing job.<br />

Feedback from families and<br />

loved ones is crucial to ensure<br />

the providers are on track, and<br />

should be welcomed.<br />

We constantly encounter<br />

the challenge <strong>of</strong> family members<br />

not accepting that aged<br />

residential facility care providers<br />

are not one-to-one care<br />

providers.<br />

Families <strong>of</strong>ten expect care<br />

staff or nurses to be with their<br />

loved one 24 hours a day, which<br />

is both unrealistic and unachievable<br />

in this care setting.<br />

There are always risks <strong>of</strong><br />

their loved one starting to<br />

fall frequently, or experiencing<br />

bruising, skin tears and<br />

infections, when in fact these<br />

also occur in their own home<br />

environment. Coming into a<br />

care facility does not remove<br />

these risks.<br />

In serious cases, where a<br />

resident’s safety or the safety<br />

<strong>of</strong> other residents may be<br />

compromised, the facility may<br />

negotiate with their local DHB<br />

for funding to provide a special<br />

watch person for an agreed<br />

amount <strong>of</strong> time.<br />

We continue to advocate<br />

for families who have loved<br />

ones in their own homes, and<br />

encourage those who may<br />

be considering looking at<br />

care placement to speak with<br />

their GP and have the referral<br />

lodged early.<br />

There is <strong>of</strong>ten a lengthy<br />

wait time for in-home assessments,<br />

and each week that<br />

passes your loved one is potentially<br />

deteriorating further.<br />

We encourage you to go<br />

out and speak with the aged<br />

care providers <strong>of</strong> your choice.<br />

Do your homework. Plan your<br />

futures together. Be prepared.<br />

We welcome anyone for a<br />

chat, to seek clarification or<br />

advice on the process ahead,<br />

or simply to talk to people who<br />

understand.<br />

Thanks for your continued support<br />

We wish you all a Happy Holiday Season & look forward to working with you in the New Year.<br />

It’s been an incredible year <strong>of</strong> growth<br />

and working alongside you.<br />

Please note our <strong>of</strong>fice will be closed from 21.12.18 - 09.01.19<br />

Call us on 0800 LAW SHOP<br />

or visit www.thelawshop.co.nz<br />

ROTORUA<br />

1268 Arawa St<br />

Rotorua<br />

TAURANGA<br />

1239 Cameron Rd<br />

Greerton


32 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/<strong>December</strong> <strong>2018</strong><br />

FRANCHISING<br />

Franchising still a solid route to new<br />

business ownership<br />

New Zealand has more franchises and franchise outlets for its<br />

population size than any other country in the world. And despite<br />

some setbacks to business confidence, the sector continues to<br />

exert strong appeal in the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>.<br />

By DAVID PORTER<br />

<strong>Business</strong> people are certainly<br />

taking up opportunities<br />

in franchising presented<br />

in the BOP, said Nathan<br />

Bonney, founder and director<br />

<strong>of</strong> Iridium Partners and one<br />

<strong>of</strong> two <strong>Bay</strong> directors on the<br />

Franchising Association <strong>of</strong> NZ<br />

(FANZ) board.<br />

“In recent years we have<br />

seen a number <strong>of</strong> franchises<br />

enter or expand in the region,”<br />

he said.<br />

“In the retail space Iridium<br />

Partners operates in, the<br />

expansion <strong>of</strong> <strong>Bay</strong>fair Mall<br />

and development <strong>of</strong> Tauranga<br />

Crossings will see a number <strong>of</strong><br />

businesses operating under the<br />

franchise model. And there is<br />

also growth on the high street<br />

in Tauranga.<br />

David Dovey, co-founder<br />

<strong>of</strong> Exceed Franchising and<br />

the other <strong>Bay</strong> member <strong>of</strong> the<br />

FANZ board, agreed, saying<br />

that the biggest increase in<br />

franchising nationally had<br />

occurred in the retail sector,<br />

for both food and non-food<br />

retail, where franchising traditionally<br />

dominates, boosted by<br />

strong population and tourism<br />

growth.<br />

“Whilst food retail has<br />

remained strong, non-food<br />

retail businesses faced pressure<br />

to adapt to systematic<br />

changes in shopping preferences,”<br />

he said.<br />

Exceed Franchising picked<br />

up four awards in <strong>November</strong> -<br />

Media Campaign <strong>of</strong> the Year<br />

and Digital Innovation <strong>of</strong> the<br />

Year at the annual Westpac<br />

NZ Franchise Awards, and<br />

was a finalist in four awards<br />

with commendations in two<br />

categories at the Westpac<br />

Tauranga Awards.<br />

In terms <strong>of</strong> new opportunities,<br />

Dovey said the most significant<br />

sector growth in New<br />

Zealand has been in non-food<br />

retail with the addition <strong>of</strong> 51<br />

more brands since 2012.<br />

“Retail brands now account<br />

for almost 23 percent <strong>of</strong> the<br />

entire sector. Accommodation<br />

and food services grew by 36<br />

new brands and in the construction<br />

sector there were 25<br />

additions,” he said.<br />

“Growth in the construction<br />

sector is not surprising<br />

given the high demand forces<br />

operating in the property market,<br />

particularly in Auckland,<br />

and pressure over the past<br />

five years from Christchurch<br />

rebuild activity.”<br />

We can find the franchise<br />

that is right for you<br />

Our experience is extensive and our approach is unique,<br />

we match people, brands and businesses.<br />

Iridium Partners help potential franchisees research, evaluate, and navigate the<br />

franchise industry. We’ll be by your side with advice and guidance as we pair<br />

you with a franchised business, examine the systems and processes, and help<br />

you take your first steps towards success.<br />

We work with a number <strong>of</strong> high-pr<strong>of</strong>ile and well-known brands to <strong>of</strong>fer franchise<br />

opportunities, and can also assist with purchases outside <strong>of</strong> our network.<br />

The recent reported cooling<br />

in property because <strong>of</strong> the<br />

rising cost <strong>of</strong> building could<br />

result in a deceleration <strong>of</strong> this<br />

growth trajectory, said Dovey.<br />

But a strong tourism industry<br />

may underpin growth in<br />

accommodation and food services.<br />

Three other industries<br />

showing notable increases<br />

were rental, hire and real estate<br />

services; arts and recreation,<br />

and education and training.<br />

“The most significant<br />

reduction in sector size<br />

occurred in administrative and<br />

support services that include<br />

such businesses as travel agencies,<br />

and domestic and gardening<br />

services.”<br />

Nathan Bonney noted that<br />

sectors tended to fall in and<br />

out <strong>of</strong> favour, with technology<br />

and market trends having the<br />

biggest impact.<br />

“A perfect example is<br />

VideoEzy, which at its height<br />

<strong>of</strong> the mid 2000s had 135 outlets,”<br />

he said.<br />

“With the Australian parent<br />

company exiting New Zealand<br />

earlier this year, only a handful<br />

remain. Conversely, we are<br />

seeing the emergence <strong>of</strong> franchise<br />

systems related to social<br />

media marketing and home<br />

Robyn Pickerell, FANZ chief executive at this month’s<br />

Westpac Franchise Awards: encouraging prospective<br />

franchise owners to use due diligence. Photo/Supplied.<br />

services as lifestyles change.”<br />

Bonney said that while<br />

some categories like cafes<br />

appeared to be full, franchised<br />

outlets still made up a relatively<br />

small proportion <strong>of</strong><br />

the market. Additionally, the<br />

market moves, he said, citing<br />

healthy food trends that had<br />

created market opportunities<br />

for brands that did not exist or<br />

have market appeal only a few<br />

years ago.<br />

Regional opportunities<br />

The reasons people bought<br />

franchises in metropolitan<br />

areas were <strong>of</strong>ten amplified in<br />

the regions, said Bonney.<br />

“It’s the opportunity to be<br />

in business by yourself, but<br />

supported, with a known brand<br />

name with market appeal<br />

and/or the ability to access a<br />

particular product or service<br />

unique to the market,” he said.<br />

“Comparable corporate<br />

roles and opportunities are<br />

<strong>of</strong>ten limited in the regions, so<br />

people looking to relocate may<br />

look towards franchising.”<br />

Bonney said the available<br />

data was limited, but Iridium<br />

Partners had seen a number <strong>of</strong><br />

franchisees that had relocated<br />

to start businesses in regional<br />

New Zealand, including the<br />

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

“Lifestyle is always high on<br />

survey results for why people<br />

buy franchises, so it shouldn’t<br />

come as a surprise that a desirable<br />

lifestyle, the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

and franchising intersect.”<br />

Simon Lord, publisher<br />

<strong>of</strong> the leading publication<br />

in the sector, Franchise New<br />

Zealand, said the sector had<br />

grown a lot over the past five<br />

years.<br />

If you are the wrong<br />

person, no matter how<br />

good the franchise,<br />

you will not make a<br />

success <strong>of</strong> it... if you<br />

are the right person<br />

in the right place and<br />

in the top 10 percent<br />

<strong>of</strong> performers in any<br />

system, then it will be<br />

different.<br />

– Simon Lord<br />

“The <strong>Bay</strong> is an affordable<br />

destination for those looking<br />

to escape Auckland and obviously<br />

a very desirable one,<br />

and that would be the same for<br />

people looking to move out <strong>of</strong><br />

Wellington,” he said.<br />

“Many <strong>of</strong> the new franchises<br />

and businesses were created<br />

by people doing that. But<br />

it’s a little less straightforward<br />

now and prices have risen considerably<br />

[in the <strong>Bay</strong>] over<br />

recent years. Then again so<br />

have prices everywhere, and<br />

in Auckland in particular. The<br />

BOP is still a very desirable<br />

destination.”<br />

Whether or not it was as<br />

attractive in terms <strong>of</strong> establishing<br />

a successful and pr<strong>of</strong>itable<br />

franchise was more difficult<br />

to judge.<br />

“It probably depends to a<br />

greater degree than it used to<br />

on which franchise you choose<br />

and the particular location and<br />

rentals and so on,” he said.<br />

It was not simply a matter<br />

<strong>of</strong> finding out which were the<br />

most lucrative franchises, he<br />

added.<br />

“If you are the wrong person,<br />

no matter how good the<br />

franchise, you will not make<br />

a success <strong>of</strong> it. On the other<br />

hand, if you are the right person<br />

in the right place and in the<br />

top 10 percent <strong>of</strong> performers in<br />

any franchise system, then it<br />

will be different.”<br />

Lord noted that <strong>of</strong>ten the<br />

most pr<strong>of</strong>itable franchises in<br />

any established system were<br />

outside the major cities, in<br />

places like Tauranga, because<br />

usually there was a little less<br />

competition and <strong>of</strong>ten a better<br />

choice <strong>of</strong> good staff and lower<br />

fixed overheads.<br />

<strong>Bay</strong>-based David Foster,<br />

one <strong>of</strong> NZ’s leading franchise<br />

lawyers and a former FANZ<br />

chairman with almost 20 years’<br />

experience in providing franchise<br />

advice, said there were<br />

some great franchise opportunities<br />

in Tauranga and the<br />

whole <strong>of</strong> BOP.<br />

“Our region is growing,”<br />

he said. “For a franchise buyer<br />

one <strong>of</strong> the most useful tools<br />

to start using is the FANZ<br />

franchisee online pre-training<br />

course. This is a free course<br />

and provides great tips and<br />

knowledge.”<br />

Due diligence crucial<br />

Bonney emphasised that the<br />

largest risk for people entering<br />

into or purchasing a franchise,<br />

and the one that is most common,<br />

is the failure to complete<br />

adequate due diligence.<br />

“There is a treasure chest <strong>of</strong><br />

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FRANCHISING<br />

If you are going to<br />

create a franchise<br />

system, do it properly.<br />

If not done properly<br />

it is likely to create a<br />

lot <strong>of</strong> misery for both<br />

the franchiser and for<br />

the franchisees who<br />

have invested in the<br />

system.<br />

– David Foster<br />

information available to potential<br />

franchisees, but amazingly<br />

a large number <strong>of</strong> potential<br />

franchisees do not complete<br />

the free FANZ franchisee<br />

online pre-training course.”<br />

There was still a real lack<br />

<strong>of</strong> understanding or perception<br />

<strong>of</strong> franchising by the general<br />

public, he said.<br />

“Armed with a good understanding<br />

<strong>of</strong> franchising, the<br />

potential franchisee needs to<br />

ask the right questions <strong>of</strong> the<br />

franchisor.<br />

“Due diligence is also as<br />

much about the individual<br />

being the right fit for the particular<br />

brand as it is about<br />

whether or not the brand or<br />

system presents a viable business<br />

opportunity.”<br />

Bonney said a potential<br />

franchisee should really assess<br />

themselves against other successful<br />

franchisees in the system<br />

if possible, and at the very<br />

least should meet and speak to<br />

no less than three existing or<br />

past franchisees.<br />

Foster encouraged those<br />

interested to talk to their bank,<br />

noting that some <strong>of</strong> the larger<br />

financial institutions had franchise<br />

specialists who had an<br />

enormous amount <strong>of</strong> knowledge<br />

as to how well a lot <strong>of</strong><br />

franchises do.<br />

Foster also reiterated that<br />

a franchise purchaser must do<br />

a due diligence investigation<br />

<strong>of</strong> the system they were considering.<br />

“For franchisors and those<br />

looking to create a franchise<br />

system, there are vast resources<br />

available to assist them. If<br />

you are going to create a system,<br />

do it properly.<br />

“If not done properly it is<br />

likely to create a lot <strong>of</strong> misery<br />

for both the franchiser and also<br />

for the franchisees who have<br />

invested in the system.”<br />

Dovey said that Mountbased<br />

Exceed Franchising had<br />

expanded since 2000 from<br />

working from home to now<br />

having a dedicated premises<br />

employing 17 people, with<br />

franchises across New Zealand<br />

and internationally. Skills<br />

developed by Exceed included<br />

a customer care center, distribution<br />

<strong>of</strong> product, training,<br />

marketing and IT.<br />

“A focus has been placed<br />

on bringing new skills into the<br />

industry through a young and<br />

vibrant team supporting the<br />

franchise owners,” he said.<br />

Dovey said the focus for<br />

developing any new franchise<br />

had to be based around the<br />

franchisors’ customer, which<br />

was their franchisee. A proven<br />

model, strong financial understanding,<br />

and New Zealand<br />

code-compliant franchise<br />

agreements were all key elements,<br />

he said.<br />

“But the hardest part for<br />

anyone looking to franchise is<br />

the ability to let go and trust<br />

that the system they have created<br />

will be followed.”<br />

Access to information<br />

Bonney said it was great for<br />

regional representation to have<br />

two out <strong>of</strong> seven FANZ board<br />

members coming from the<br />

<strong>Bay</strong>, and they acted as a good<br />

contact point for franchisors,<br />

potential franchisees and service<br />

providers.<br />

“While having two <strong>Bay</strong><br />

board members isn’t necessarily<br />

a reflection <strong>of</strong> the state <strong>of</strong><br />

franchising, the sector appears<br />

to be healthy,” he said.<br />

“It’s good to have representation<br />

for the franchising<br />

industry outside <strong>of</strong> Auckland as<br />

New Zealand is not Auckland.<br />

Regional businesses prefer to<br />

deal with regionals rather than<br />

Aucklanders or people from<br />

the big cities.”<br />

FANZ chief executive<br />

Robyn Pickerell said franchising<br />

was a very successful business<br />

model.<br />

“FANZ promotes best practice<br />

franchising,” she said.<br />

“We encourage all prospective<br />

franchise owners to research<br />

well and to use the FANZ website<br />

resources to assist with<br />

their due diligence.”<br />

She said it was vitally<br />

The hardest part for<br />

anyone looking to<br />

franchise is the ability<br />

to let go and trust<br />

that the system they<br />

have created will be<br />

followed.<br />

– David Dovey<br />

FIND OUT MORE ABOUT<br />

FRANCHISING<br />

The National Franchise Conference will be held in<br />

Rotorua on June 20 and 21, 2019.<br />

www.franchiseassociation.org.nz<br />

www.franchiseassociation.org.nz/franchising<br />

www.franchiseassociation.org.nz/online-course/<br />

www.franchise.co.nz<br />

Comparable<br />

corporate roles and<br />

opportunities are<br />

<strong>of</strong>ten limited in the<br />

regions, so people<br />

looking to relocate<br />

may look towards<br />

franchising.<br />

– Nathan Bonney<br />

important that a prospective<br />

franchise owner sought pr<strong>of</strong>essional<br />

advice before signing up<br />

to a franchise.<br />

FANZ had a list <strong>of</strong> members<br />

on its website who could<br />

support with advice, particularly<br />

in the areas <strong>of</strong> finance<br />

and legal issues, as franchise<br />

agreements could be complex<br />

documents.<br />

“Prospective purchasers<br />

... should be aware that some<br />

franchisors may say that they<br />

abide by FANZ standards and<br />

codes, but this is very different<br />

to being a member.<br />

“FANZ members are also<br />

able to utilise the Complaints<br />

Process should this ever be<br />

required.”<br />

Franchise New Zealand<br />

publisher Simon Lord said<br />

that the low levels <strong>of</strong> business<br />

confidence since the election<br />

<strong>of</strong> the coalition government<br />

a year ago had seen activity<br />

levels slow a little.<br />

“I think a lot <strong>of</strong> franchisors<br />

have found it difficult to find<br />

new franchisees over the last<br />

year,” he said.<br />

“It’s certainly the case that<br />

if someone is buying a business<br />

at the moment, then they<br />

will find franchisors eager to<br />

talk to them and will quite possibly<br />

find some good opportunities.<br />

There is plenty <strong>of</strong><br />

choice out there.”<br />

New Zealand - Well<br />

served by franchises<br />

New Zealand has more franchises<br />

and franchise outlets for<br />

its population size than any<br />

other country in the world,<br />

with some 630-plus franchised<br />

brands and at least 37,000<br />

franchised units, according to<br />

the most recent survey data.<br />

Simon Lord, publisher <strong>of</strong><br />

Franchise New Zealand magazine,<br />

who has been analysing<br />

the sector for 25 years, says<br />

franchising has grown massively<br />

over recent years.<br />

The most recent survey<br />

suggested franchising accounts<br />

for 11 percent <strong>of</strong> NZGDP, with<br />

some 124,000 employed in NZ<br />

franchises. The next five-year<br />

survey is due to be carried out<br />

in 2019.<br />

“A lot <strong>of</strong> international franchisors<br />

targeted Auckland initially,”<br />

he says.<br />

“But the reality now is that<br />

for many people Auckland<br />

isn’t where they want to be<br />

anymore. Franchising is <strong>of</strong>fering<br />

opportunities south <strong>of</strong> the<br />

Bombay Hills and north <strong>of</strong><br />

Albany.”<br />

Look for this sign<br />

before you sign<br />

Buy a franchise with confidence<br />

A franchise displaying<br />

our member logo signifies:<br />

Credibility<br />

Adherence to Code <strong>of</strong> Practice & Code <strong>of</strong> Ethics<br />

7 day cooling <strong>of</strong>f period<br />

Commitment to best practice franchising<br />

Simple dispute resolution process<br />

www.franchiseassociation.org.nz<br />

P9157W


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

TAURANGA<br />

MAGAZINE<br />

Rotorua<br />

Hamilton<br />

newsletter<br />

news<br />

34 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/<strong>December</strong> <strong>2018</strong><br />

Five reasons to consider a rebrand<br />

We all know the saying “New Year, new beginnings”. The same is<br />

true for most business brands – they evolve as the world around<br />

them changes.<br />

With 2019 on the horizon,<br />

it’s an ideal time<br />

to take stock and consider<br />

whether your brand story<br />

needs a rethink.<br />

Has it stood the test <strong>of</strong> time<br />

or are your customers changing<br />

and is the environment you<br />

operate within different from<br />

when you started?<br />

Rebranding can be an<br />

expensive and time-consuming<br />

exercise, so it’s not something<br />

to take lightly. But if the reasons<br />

for changing check out,<br />

then its impact can be transformational.<br />

Here are five examples <strong>of</strong><br />

when a re-brand <strong>of</strong> your business<br />

is worth considering.<br />

1. Your brand hasn’t<br />

moved with the times<br />

What’s socially acceptable<br />

today is different from what<br />

was acceptable in the 2000s,<br />

let alone the 1990s.<br />

<strong>Business</strong>es must change the<br />

way they present themselves to<br />

appeal to the changing expectations<br />

and ambitions <strong>of</strong> their<br />

customers.<br />

Imagine running the kinds<br />

<strong>of</strong> ads a cleaning products company<br />

ran in the 1950s, complete<br />

with gender-stereotyped housewives<br />

busy in the kitchen and a<br />

pipe-smoking husband sitting<br />

idly by reading the paper. As<br />

we know, that no longer plays<br />

well in the modern era.<br />

Technological changes may<br />

also necessitate a rebrand.<br />

<strong>Business</strong>es with names such<br />

as “Cassettes R Us” or “DVD<br />

Domain” aren’t likely to do as<br />

well in 2019 as in the 1990s<br />

when they first started, even<br />

if they are now stocking the<br />

latest gadgets.<br />

2. The products or<br />

services you <strong>of</strong>fer have<br />

changed<br />

Sometimes the products or services<br />

you <strong>of</strong>fered when you<br />

started your business now differ<br />

from those you’re <strong>of</strong>fering<br />

today.<br />

Perhaps you made a name<br />

for yourself selling business<br />

footwear, but you’ve since<br />

branched out into suits, ties<br />

and even corporate gifts.<br />

If your logo, business name<br />

and key messages only reflect<br />

the footwear side <strong>of</strong> your business,<br />

you could be up against<br />

it when trying to communicate<br />

the broader range <strong>of</strong> services<br />

you <strong>of</strong>fer.<br />

3. You’ve moved to a new<br />

city or country<br />

TELLING YOUR STORY<br />

> BY JAMES HEFFIELD<br />

Director <strong>of</strong> <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> marketing and PR consultancy Last<br />

Word. To find out more visit lastwordmedia.co.nz or email<br />

james@lastwordmedia.co.nz.<br />

What’s desirable in one location<br />

isn’t always as appealing<br />

in another.<br />

Sometimes cultural differences<br />

necessitate a change in<br />

how you present your business.<br />

In other cases, a region’s economy<br />

might dictate a re-focus <strong>of</strong><br />

your products or services.<br />

For example, a consultancy<br />

moving from Wellington<br />

to Tauranga may find that it<br />

needs to change its services to<br />

appeal more to small and midsized<br />

businesses than central<br />

government agencies.<br />

4. Science says so<br />

Views about what is acceptable<br />

change as new research is<br />

undertaken.<br />

Growing awareness <strong>of</strong><br />

climate change has led some<br />

companies to actively link<br />

their brand story to sustainability<br />

and its positive environmental<br />

impact.<br />

Similarly, revelations about<br />

the health effects <strong>of</strong> smoking<br />

over the past few decades have<br />

forced tobacco companies to<br />

reconsider their branding.<br />

Staying abreast <strong>of</strong> new<br />

research will allow you to<br />

align your brand to popular<br />

causes and beliefs.<br />

5. You need to differentiate<br />

your company from<br />

competitors<br />

If new competitors enter<br />

your market you may lose<br />

some <strong>of</strong> your points <strong>of</strong><br />

difference.<br />

You may no longer be the<br />

lowest cost option, or the only<br />

one that <strong>of</strong>fers a money-back<br />

guarantee.<br />

A re-brand can provide an<br />

opportunity to showcase a new<br />

point <strong>of</strong> difference, or communicate<br />

what it is about the way<br />

you do business that makes<br />

you the best choice.<br />

Finally, it’s worth keeping<br />

in mind that your brand is how<br />

your customers think about<br />

you. It’s about how you do<br />

business, as well as the words<br />

and visual imagery you use.<br />

A change in brand values<br />

will likely require you and your<br />

staff to adopt new values and a<br />

new approach to doing business.<br />

You may also need to<br />

consider whether the products<br />

and services you currently<br />

<strong>of</strong>fer are aligned with<br />

the brand you’re looking to<br />

create and the market position<br />

you’re aiming for.<br />

Don’t forget a strong story<br />

is at the heart <strong>of</strong> any good<br />

brand, and that story needs to<br />

be believable and compelling<br />

if your customers are going to<br />

buy into it.<br />

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

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media, Print.<br />

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The written word gives your business:<br />

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www.bopbusinessnews.co.nz


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

35<br />

The Best Start for a<br />

<strong>Business</strong> Partnership<br />

Like any relationship, partnerships can have<br />

their stresses. If you’re in business with<br />

another person, whether you trade as a<br />

partnership or as a company, you should<br />

have a well-written agreement in place.<br />

A<br />

good solicitor can help<br />

you identify possible<br />

issues and present solutions,<br />

and help you draft the<br />

agreement. Then you and your<br />

business partner can avoid<br />

the pitfalls <strong>of</strong> partnerships, as<br />

you will both have a thorough<br />

understanding <strong>of</strong> how the business<br />

is to be managed in the<br />

future.<br />

Paula Lines, director at<br />

The Law Shop, explains that<br />

creating the partnership or<br />

shareholders agreement and<br />

setting up the proper structure<br />

for the partnership are the two<br />

most important steps in the<br />

process. She says it’s about<br />

understanding the mechanics<br />

<strong>of</strong> how your business will be<br />

governed, in every possible<br />

scenario.<br />

“The agreement will cover<br />

things such as the nature <strong>of</strong><br />

the business, so neither <strong>of</strong> you<br />

decides to head <strong>of</strong>f on another<br />

track without agreement,<br />

contributions <strong>of</strong> capital, the<br />

responsibilities <strong>of</strong> each owner<br />

so everyone is clear on who<br />

will do what, what will happen<br />

if one <strong>of</strong> you gets sick and<br />

is unable to work, or you have<br />

a falling out and don’t want<br />

to work together anymore,”<br />

Paula Lines, Commercial<br />

Lawyer at The Law Shop.<br />

Paula says.<br />

Most <strong>of</strong> the time, people<br />

see a lawyer when things go<br />

wrong and they need help sorting<br />

out the problems. By this<br />

time, the parties are already<br />

thick into their dispute, <strong>of</strong>ten<br />

angry or hurt, and unwilling<br />

to compromise. Both stand to<br />

lose money, and more <strong>of</strong>ten<br />

than not it becomes a matter<br />

<strong>of</strong> principle to keep arguing.<br />

Getting legal help at this stage<br />

is good, but much too late.<br />

If you see a lawyer at the<br />

beginning and get a solid partnership<br />

agreement in place,<br />

you can save yourselves money<br />

and heartache in the long<br />

run. The agreement will allow<br />

for revisions due to changing<br />

circumstances, but these<br />

should always be in writing<br />

and signed by each party.<br />

There will also be clear rules<br />

in place on how to end the<br />

business relationship and an<br />

exit strategy, so neither party<br />

is disadvantaged when the relationship<br />

comes to an end.<br />

If you are looking at going<br />

into business with another<br />

person, talk to the team at The<br />

Law Shop first. They know<br />

the ins and outs <strong>of</strong> all aspects<br />

<strong>of</strong> business law and can assist<br />

you at any time <strong>of</strong> your entrepreneurial<br />

journey. Contact<br />

their Rotorua or Tauranga <strong>of</strong>fice<br />

if you need practical and<br />

pr<strong>of</strong>essional legal advice for<br />

your business, especially if<br />

you prefer a no-nonsense approach.<br />

Just send an email to<br />

team@thelawshop.co.nz to<br />

get things started.<br />

Over the holiday period,<br />

The Law Shop’s <strong>of</strong>fices will<br />

be closed between Friday 21<br />

<strong>December</strong> <strong>2018</strong> and Wednesday<br />

9 January 2019. Paula<br />

and her team hope you’ll get<br />

a chance to enjoy some free<br />

time over the Christmas and<br />

New Year’s period to spend<br />

with family and friends, and<br />

that 2019 will be the best year<br />

yet for you and your business.<br />

Expert legal advice<br />

that solidifies your<br />

business’ foundations<br />

STEPHANIE NORTHEY<br />

LL.B | Director<br />

PAULA LINES<br />

LL.B | Director<br />

SARSHA TYRRELL<br />

LL.B | Director<br />

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

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

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

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

Selling, Terms <strong>of</strong> Trade, Structure and Succession Planning,<br />

Banking, Leasing, Debt Collection or Franchising, then<br />

we’re the team for you.<br />

Contact our friendly team to find out more today.<br />

Proudly serving our community from our <strong>of</strong>fices<br />

in Rotorua and Tauranga.<br />

Call us on 0800 LAW SHOP<br />

or visit www.thelawshop.co.nz<br />

ROTORUA<br />

1268 Arawa St<br />

Rotorua<br />

TAURANGA<br />

1239 Cameron Rd<br />

Greerton<br />

Lawyers for everyday people


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whole family begging you to buy.<br />

This is a true family retreat, with four<br />

bedrooms, an <strong>of</strong>fice or 5th bedroom<br />

and multiple separate living areas,<br />

including a rumpus room in the kids<br />

wing.<br />

Pacific Rim<br />

Paradise<br />

When I first met with Anne, she told<br />

me her vision here was to create a<br />

home that felt like the perfect<br />

combination <strong>of</strong> art and architecture.<br />

Designed by Maria and the late<br />

James Cotter, the final product <strong>of</strong><br />

that vision was built in 2002 by<br />

award-winning, master builder<br />

Murray Pederson.<br />

5<br />

2 3<br />

2 301m2<br />

0.85ha<br />

4<br />

2 1<br />

2 270m2 1.14ha<br />

135d McLaren Falls Road<br />

Price by Negotiation<br />

Cameron Macneil<br />

021 800 889<br />

11d Rowe Road, Ohauiti<br />

Enquiries Over $1,925,000<br />

Cameron Macneil<br />

021 800 889<br />

Sunsets,<br />

BBQs & Magic<br />

Mount Views<br />

This is a social, relaxed home. It’s a<br />

home <strong>of</strong> love, <strong>of</strong> laughter, and it’s<br />

pretty easy to imagine waking up<br />

each day to the sound <strong>of</strong> birds and<br />

at night, watching the sun set from<br />

your expansive deck or spa pool.<br />

Whether upsizing or downsizing, this<br />

semi-rural property should be added<br />

straight to the top <strong>of</strong> your list<br />

Ladies &<br />

Gentlemen<br />

This is a unique home, set in a<br />

private, elevated position and it’s<br />

just minutes from Omokoroa Village.<br />

Over the past few years, Mrs Barons<br />

has lovingly and tastefully enhanced<br />

the interior and it can now be<br />

described as a truly elegant<br />

residence. Each living space <strong>of</strong>fers a<br />

different view and atmosphere.<br />

4<br />

2 2<br />

2 227m2 0.30ha<br />

4<br />

2 3<br />

2 340m2 0.54ha<br />

33 Oceana Drive, Welcome <strong>Bay</strong><br />

Enquiries Over $1,090,000<br />

425 Omokoroa Road, Omokoroa<br />

Enquiries Over $1,490,000<br />

Cameron Macneil<br />

021 800 889<br />

Cameron Macneil<br />

021 800 889<br />

Sophisticated<br />

Single-Level<br />

Living<br />

Architecturally designed and sited<br />

perfectly for sun and views, this<br />

absolutely stunning home is<br />

brimming with state-<strong>of</strong>-the-art<br />

construction materials and features.<br />

The bold white on white colour<br />

theme draws attention to the striking<br />

twin gables, and a true sense <strong>of</strong><br />

quality and style is present<br />

throughout the property.<br />

3 Rataha<br />

Lane<br />

SOLD<br />

Private Oasis &<br />

Income Options<br />

Set in a peaceful, private oasis, this<br />

is a seriously spacious and recently<br />

renovated family home. With four<br />

generous bedrooms, two<br />

bathrooms, a stylish modern kitchen<br />

and massive living areas, the whole<br />

family will definitely approve <strong>of</strong> this<br />

property. Beautiful tall palm trees<br />

tower over a dreamy outdoor<br />

entertaining area, complete with<br />

swimming pool, spa & gazebo.<br />

4<br />

3 3<br />

2 343m2 953m2<br />

44 Holyoake Terrace, Omokoroa<br />

Enquiries Over $1,690,000<br />

Cameron Macneil<br />

021 800 889<br />

6<br />

3 2<br />

5 250m2<br />

3 Rataha Lane, Te Puke<br />

SOLD $945,000<br />

Cameron Macneil<br />

021 800 889<br />

0.33ha<br />

Oliver Road Estate Agents Limited | Licensed REAA 2008<br />

oliverroad.co.nz

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