Bay of Plenty Business News December/January 2018/19

Bay of plenty 

DECEMBER/JANUARY 2018 VOLUME 3: ISSUE 12 WWW.BOPBUSINESSNEWS.CO.NZ FACEBOOK.COM/BOPBUSINESSNEWS 

Bay 

outlook 

bright 

But significant economic 

challenges remain 

The Bay of Plenty economy has enjoyed another strong year and 

there are plenty of positives for the future. But there are a number 

of challenges on the horizon for the coming year, according to 

local business leaders and economic experts. 

By DAVID PORTER 

Despite the Bay’s many 

strengths, the region is 

still struggling to deal 

with the infrastructure and 

transport problems issues that 

have come with growth. 

Businessmen and economists 

cite potential inflationary 

pressures, shortages of staff in 

key areas and a government 

that has yet to demonstrate a 

clear vision of how and whether 

it can deliver on its promise 

to create a more equal society. 

In addition, despite New 

Zealand’s generally strong 

economy and trade position, 

the country and the Bay aren’t 

immune to global economic 

pressures. A weak Kiwi dollar 

may be good for exporters, but 

it isn’t welcomed by importers 

and retailers. US president 

Donald Trump’s trade war 

mantra and erratic policy statements 

have created uncertainty 

and roiled markets worldwide. 

And we remain vulnerable 

to potential problems in China, 

New Zealand’s biggest potential 

market for the next few 

decades. 

Red signals not alarming 

– yet 

That said, as Cameron Bagrie, 

head of Bagrie Economics, 

noted during a recent presentation 

to a PMG investor 

meeting in Tauranga, his “traffic 

signal” economic indicators 

suggested that the red lights 

were not yet at an alarming 

stage. 

The positives included 

what he saw as a big structural 

shift across property, led by 

the downturn in the Auckland 

residential sector, which had 

taken some of the heat out of 

the market. That meant New 

Zealand was entering the late 

stages of the current growth 

cycle in better shape than in 

the major downturns of 1996- 

97 or 2006-07. 

The major problem, said 

Bagrie, was that while such 

sectors as dairy had made a 

major contribution to growth 

over the past 20-30 years, that 

was unlikely to continue at 

the same level. New Zealand 

still had to find new sources 

to replace that growth in the 

coming years. (see table on 

page 5) 

“The biggest problem New 

Zealand has at the moment is a 

lack of clarity over economic 

direction.” 

Bagrie said he believed in 

the spirit of what the government 

was trying to do in 

social terms, but that it needed 

to work on turbo-charging 

Continues page 3 

The biggest problem 

New Zealand has at 

the moment is a lack of 

clarity over economic 

direction. 

– Cameron Bagrie 

capital gains 

Tax rhetoric heats up as 

government mulls changes 

P6 

portfolios 

Corporate fixed interest 

issues on the rise 

P9 

Property 

CBD is getting a major 

makeover 

P14

2 BAY OF PLENTY BUSINESS NEWS December/January 2018 

We support 

kiwi business. 

So you can keep 

businessing. 

To find out how 2degrees can help 

your business contact Andy Bell 

on 022 200 0256 

MC9312A

COVER STORY 

BAY OF PLENTY BUSINESS NEWS December/January 2018 

3 

Bay outlook bright 

From page 1 

ways to fill the economic gap 

emerging as traditional sources 

of economic growth slowed 

down. 

“The good news is we 

don’t have a lot of red lights 

flashing - we’ve got some, but 

we do not have a smorgasbord,” 

he said. 

“The big one that worries 

me over the next 12 months 

is cost-push inflation pressure 

and whether that seats into 

general inflation and forces 

the Reserve Bank to the table. 

We do have a lot of debt and 

we need low interest rates to 

continue.” 

Priority One chairman 

Brett Hewlett noted at the economic 

development agency’s 

recent AGM that its vision for 

Tauranga and the Western Bay 

Tauranga’s also 

becoming a more 

expensive place to 

operate, and our 

infrastructure is 

barely coping. 

– Stan Gregec 

of Plenty was for a region that 

was unique, bold, innovative 

and future focused – the destination 

of choice for talented, 

skilled and creative people and 

the businesses that need them. 

Key areas of focus were fostering 

an innovation eco-system, 

business and investment 

attraction, and talent attraction 

and retention, he said. 

Unprecedented growth 

Hewlett cited tangible progress. 

This has included 

unprecedented levels of GDP, 

business and job growth, 

record-breaking returns for 

kiwifruit and avocado growers, 

$350 million of new public 

and private sector investments 

planned for Tauranga’s city 

centre, including the opening 

in 2019 of a new university 

campus, and a 10.3 percent 

increase in trade through Port 

of Tauranga, the country’s 

largest sea port. 

As reported recently in 

Bay of Plenty Business News, 

Tauranga is emerging as New 

Zealand’s most cost-effective 

logistics hub for many importers 

and distributors, according 

to a new study by Middlebank 

Consulting Group. The supply-chain 

agency’s analysis 

found Tauranga offered around 

five percent cost savings 

over Auckland as a hub for 

distribution to most parts of 

New Zealand. 

Hewlett said there was 

also a burgeoning high performance 

sports sub-economy, 

strong growth in the construction 

sector across residential 

and commercial developments, 

new cafes and restaurants,; 

and increasing ethnic diversity 

across the sub-region. 

Hewlett said he believed 

the reason the Western Bay 

had been so successful in its 

economic development to date 

came down to shared purpose 

and vision and a strong willingness 

by key stakeholders to 

collaborate . 

“Less tangible, but never 

the less impactful, is the buzz 

that exudes from Tauranga and 

the Western Bay,” he noted in 

the agency’s annual report. 

“We have outsiders curious. 

They want to know what it is 

about the Bay that makes it so 

special and appealing and they 

want to be part of it.” 

Tauranga Chamber of 

Commerce chief executive 

Stan Gregec agreed that it had 

been another terrific year for 

Tauranga and Western Bay 

businesses, which had been 

reflected across the whole of 

the Bay of Plenty to a large 

degree. 

“Business confidence 

remains high in our region - 

which possibly puts us out on 

a limb compared with some 

other parts of New Zealand - 

and we’ve seen solid growth 

across multiple indicators of 

economic activity,” 

Gregec said there had been 

a huge amount of investment 

going into Tauranga. 

“We can see that with 

the fast growth of industrial 

estates such as Tauriko and 

with the transformation that’s 

happening to our built environment, 

especially in the CBD.” 

But Gregec said it was by 

no means all plain sailing and 

there were significant challenges. 

The government’s new 

industrial relations policies 

were seen by many as a step 

backwards, which might further 

constrain the labour market. 

“Tauranga’s also becoming 

a more expensive place to 

operate, and our infrastructure 

is barely coping,” he said. 

“We still seem stuck on 

some pretty key issues - such 

as what kind of integrated 

transport strategy we need to 

plan for the future. Sometimes 

it feels like there are simply 

too many cogs in the system, 

and not always going in the 

same direction.” 

Doug Leeder, chairman of 

the Bay of Plenty Regional 

Council, acknowledged there 

were still some challenges in 

terms of the transport issues in 

Tauranga. 

Housing sales were also 

slowing down, but business 

and commercial activity was 

still cranking along, and the 

economy - especially in the 

Western Bay - still had plenty 

of intensity to it, he said. The 

new Regional Growth Fund’s 

taking a position on projects 

in the Eastern Bay was also a 

positive development. 

“Mostly I think there isn’t 

much despondency around 

here,” said Leeder. 

Support for growth 

pathway in Rotorua 

Acting chief executive Bryce 

Heard said the Rotorua 

Chamber of Commerce was 

excited about the Rotorua 

economy and was working 

with business and the council 

to encourage and facilitate 

the growth which was being 

experienced. 

“The outcome of a growing 

economy is a lift in the wellbeing 

and standard of living for 

the people in our rohe,” he said. 

“In spite of publicity given 

to some of the naysayers, 

our members have expressed 

strong support for the growth 

pathway. Business confidence 

is Rotorua is at a high 

level compared with historical 

levels, but it needs to rise 

even higher to maintain and 

improve the area’s infrastructure. 

With prudent investment 

this can and will occur.” 

Heard said the new government 

had announced investment 

into core infrastructure 

that would have a positive 

effect on the Rotorua economy 

in the medium term. 

“We are fortunate to have 

a powerful and supportive Iwi 

legacy in this city, who also 

think and act positively in this 

space. 

“We believe that all of this 

can be achieved with leading 

edge environmental parameters, 

and with the cooperation 

and leadership of responsible 

business and Maori interests.” 

Hewlett acknowledged the 

pace of growth in the region 

was causing some stress and 

anxiety. The population of 

Tauranga today is 131,500 

people and including the wider 

Western Bay is now 180,500. 

More than 50,000 people 

have been added in the last 20 

years and a further 50,000 are 

expected to arrive in just over 

a decade. 

“When looking across the 

broad spectrum of our community, 

the changes we are experiencing 

may be exciting for 

many, challenging for some, 

and just annoying for most,” 

he states in the Priority One 

annual report. 

“We have a number of 

significant challenges ahead. 

Issues around investment in 

infrastructure, particularly 

transport; housing affordability; 

the delivery of healthcare 

and social services; the 

Outsiders… want to 

know what it is about 

the Bay that makes 

it so special and 

appealing and they 

want to be part of it. 

– Brett Hewlett 

affordability of civic amenities 

such as a museum, new library, 

performing arts centre and 

city centre stadium; improved 

cycle ways and safe and reliable 

public transport; to name 

just a few.” 

Priority One chief executive 

Nigel Tutt, commenting 

in the annual report, noted that 

looking ahead the outlook for 

the economy remained strong 

with our key industries all in 

good shape. 

“While this is excellent as it 

provides continued job growth, 

we must be aware that our ability 

to provide infrastructure to 

accommodate this growth is 

stretched,” he said. 

“Our focus for the next year 

will be around helping influence 

and enable infrastructure 

investment, particularly gaining 

the support of the business 

community, and working 

to ensure Tauranga and the 

Western Bay continue to be 

seen as attractive destinations 

for talent.” 

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As we wind up the year 

and head into the holiday 

season, it seemed opportune 

to reflect on how well the 

Bay of Plenty economy has 

performed this year. 

But as we note in this 

month’s cover story, while 

there are plenty of positives 

for the future, there are also a 

number of challenges on the 

horizon. 

Despite the Bay’s many 

strengths, the region is still 

struggling to deal with the 

infrastructure and transport 

problem issues that have come 

with growth. 

Businessmen and economists 

cite potential inflationary 

pressures, shortages 

of staff in key areas and a 

government that has yet to 

demonstrate a clear vision of 

how and whether it can deliver 

on its promise to create a 

more equal society. 

In addition, despite New 

Zealand’s generally strong 

economy and trade position, 

the country and the Bay aren’t 

immune to global economic 

pressures. 

That said, as Cameron 

Bagrie, head of Bagrie 

Economics, noted during a 

recent presentation to a PMG 

investor meeting in Tauranga, 

his “traffic signal” economic 

indicators suggested that the 

red lights were not yet at the 

alarming stage. 

But New Zealand urgently 

needs to find new sources of 

growth to replace some key 

traditional primary exports that 

cannot be expected to deliver 

the growth of the past few 

decades. 

Nonetheless, the Bay - the 

top performing regional economy 

over the past year - is 

well-placed to deliver on innovative 

agri-tech-based export 

diversification, and continues 

to attract incomers and investment. 

Reflecting the investment 

into the Bay, this month our 

writer Richard Rennie takes 

a look at recent development 

in Tauranga’s CBD, which is 

undergoing the biggest revitalisation 

in the city’s history. 

More than a quarter of a 

billion dollars of investment 

spend is being injected into 

buildings and projects across a 

20 ha area. 

Several big ticket items 

that have captured headlines 

in the past year include the 

University of Waikato campus 

development, priced at $39 

million and due to open a year 

ahead of time in February. 

Craig’s House on Devonport 

Road is a $50 million project 

due to kick off in the New 

Year, while at the other end of 

the CBD the Farmers development, 

valued at $100 million, 

is now well underway, with a 

retail completion date of early 

2021. 

The investment is proving 

significant, not only on 

grounds of its scale as one of 

the country’s most intensely 

redeveloped areas, but also for 

the interest it is attracting from 

investors beyond Tauranga’s 

boundaries. 

Our columnist Grant 

Neagle, from Ingham Mora 

Chartered Accountants, takes 

an in-depth look at the possible 

outcomes of the government’s 

David Porter 

Tax Working Group. 

The TWG’s interim report 

in September stopped short of 

making a recommendation to 

the government one way or 

the other on whether a capital 

gains tax (CGT) should be 

introduced. 

Instead, it focused on the 

issues and considerations that 

would need to be addressed if 

a CGT was introduced. Its final 

report in January will contain its 

recommendation. 

The TWG is expected to 

release its final report in late 

January – a month early – 

and media coverage and public 

reaction to the polarising tax is 

heating up. 

The consequences of 

a CGT are far-reaching and 

potentially could be massively 

distortionary. 

In conclusion, we’d like to 

thank our readers and advertisers 

for their strong support 

over the past year and wish 

them an enjoyable and safe 

holiday and a prosperous 

2019. 

Wishing you a 

Merry Christmas 

and happy holidays! 

Successful businesses plan ahead. At Ingham Mora our diverse 

team of business savvy experts can help you to achieve success 

and clarify your future direction. 

Call now and secure a one hour complimentary meeting with 

one of our directors for early 2019, and relax over the holidays 

knowing that next year you’ll be in good hands. 

Experience. The difference adds up. 

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COVER STORY 


5 

Technology key to needed diversification 

Job growth in Tauranga, led by horticulture, tends to be at the 

higher end of skill sets, according to Priority One. 

That is one of the key sectors 

that are performing 

well, Priority One chief 

executive Nigel Tutt notes in 

the recent annual report. 

“Our economy is being 

seen in an increasingly positive 

light to domestic and international 

businesses and talent 

alike, which in turn helps our 

businesses to attract the right 

people,” he says. 

“However, while we are in 

a good position now, we must 

recognise that it is important to 

continue to diversify our economy 

so that we have ongoing 

and sustainable strength in 

the future.” 

Bay of Plenty Regional 

Council chair Doug Leeder said 

by the nature of its geography, 

New Zealand’s export sector 

had always been very much 

primary industry focused. 

“If we look at the problems 

Fonterra has faced over 

the last few years with its up 

and down commodity cycles, 

there has to be a move towards 

more value add and away from 

commodities.” 

Aiming for higher value 

exports 

Industry diversification is 

needed to produce higher 

value exports and to position 

the region well for global 

opportunities. 

Tutt and others involved in 

the region’s strong agri-tech 

sector point to the importance 

of the previous government 

choosing to back a regional 

research institute here. 

The recently established 

PlantTech Research Institute 

- in which Priority One has 

come together with leading 

tech-focused local companies 

- will provide the local economy 

with access to world-class 

research into horticultural 

growing systems. 

That specifically includes 

those in the field of artificial 

intelligence. 

Daniel Faris, chief executive 

of leading industrial design 

company Locus Research- a 

Plant Tech partner - told Bay 

of Plenty Business News that 

the decision to establish the 

institute in Tauranga, and 

what they were working on, 

was “very interesting”. 

Faris, who is also deputy 

chair of Export NZ BOP, said 

that New Zealand had become 

overly dependent on a few key 

Daniel Faris: Thriving hort export 

sector in the Bay. Photo/Supplied. 

The kiwifruit industry is 

expected to remain a 

cornerstone of the Bay 

of Plenty economy, with the 

industry’s outlook positive 

going into 2019. 

A spokesman for key marketing 

entity Zespri said it was 

making progress towards its 

goal of increasing sales to $4.5 

billion by 2025. 

Chief grower and alliance 

office David Courtney said that 

overall this had been another 

record season for Zespri and 

the industry in terms of sales 

volumes. 

“That’s come on the back of 

our focus on sustaining good 

value across the supply chain 

sectors. 

Locus had become involved 

in ExportNZ BOP because of 

the company’s strong involvement 

in the commercialisation 

of innovative new companies 

and products, he said. 

New Zealand represented a 

relatively small catchment of 

potential customers, he added, 

so there was often a question 

of whether innovative companies 

could become viable 

without access to international 

markets. 

“We have a thriving horticultural 

export industry 

here that is down the road to 

solving a number of problems 

faced by the sector worldwide,” 

he said. “We can bring 

our local technology and 

expertise to those problems.” 

– By DAVID PORTER 

ECONOMIC SIGNALS SUGGEST CAUTION, 

BUT NOT YET ALARM 

Global scene 

Inflation 

Household debt 

Corporate debt 

Dairy debt 

Asset valuations 

Productivity 

Financial stability 

External accounts 

Shadow banking sector activity 

House building excesses 

Credit growth 

House prices 

Household sector 

More inflation risks apparent as cost-push forces intensify. 

Zespri predicts continuing 

strong growth 

from grower to consumer and 

the excellent work on orchard 

and through post-harvest to 

deliver a great crop with good 

taste,” said Courtney. 

“Looking ahead, we’re 

forecasting continued growth 

in demand across our key markets,” 

he said. 

Key export market China 

had continued to perform 

Bagrie Economics founder Cameron Bagrie told a recent presentation in Tauranga 

for PMG that his “traffic light” system, which he updates every three to four months, 

is now showing a few red lights. But what is different from previous cycles is that 

it still had a lot of green lights. 

“The slowdown in the Auckland property market has been a good thing - it’s 

been healthy and orderly. You are going to see exactly the same thing across the 

BOP Tauranga market in the next 12 months. We’ve taken the air out of the tire 

and we’re reflating it in a real orderly fashion. We have to watch what’s going on 

globally, but because we’ve self-managed, if something does come down the 

pipeline globally, we’re in a pretty good place.” 

strongly and Zespri was 

expecting that to continue as it 

expanded into Tier Two cities, 

he said. 

Growing global suppply 

“In order to meet growing consumer 

demand we’ll be continuing 

to work with our global 

partners to provide Zespriquality 

non-New Zealand 

grown kiwifruit as part of our 

global supply strategy. 

This supply is critical in 

keeping our brand top of mind 

for all 12 months of the year, 

and ensures that consumers 

can still access premium Zespri 

quality and tasting kiwifruit 

in those months when New 

Zealand supply isn’t available.” 

Courtney said the success 

of the SunGold variety was 

helping to attract more consumers 

to the kiwifruit category, 

which still made up only a 

small proportion of the global 

fruit bowl. 

“Zespri and the kiwifruit 

industry are consequently 

in a strong period of supply 

growth, working hard to fulfil 

demand,” he said. 

Zespri announced in 

December the planned release 

of 700 ha of SunGold licence 

as well as 50 ha of Organic 

SunGold during the 2019 

season. 

The expansion is not just in 

the Bay of Plenty but in other 

kiwifruit growing regions, 

from Kerikeri to Nelson, said 

Courtney. 

“Supply growth gives us an 

opportunity to serve more consumers 

than ever before, while 

sustaining good value across 

the supply chain from grower 

Jun 2018 Nov 2018 

Source: Bagrie Economics. 

to consumer.” 

Zespri’s latest December 

2018 forecasts include an average 

Orchard Gate Return for 

Green of $5.42 per tray, and 

average per h return of $63,786. 

These have decreased 

slightly (down five cents and 

$341 per ha respectively) 

based on an upward revision in 

estimates for offshore fruit loss 

and quality claim provisions. 

The average return for 

SunGold and Organic SunGold 

per tray has increased to $10.46 

per tray and $140,195 per ha, 

reflecting reductions in promotion 

and freight costs and 

favourable foreign exchange 

movements. 

Zespri Sweet Green is at 

$7.16 per tray and $45,855 

per ha. 

The average Organic Green 

return is $8.68 per tray with the 

average per ha return $68,864, 

up slightly based on firmer 

pricing in key markets. 

– By DAVID PORTER 

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Capital Gains Tax rhetoric heating up 

With the Tax Working Group (TWG) likely 

to release its final report in late January 

– a month early – media coverage and 

public reaction to the polarising tax is 

heating up. In my view, the consequences 

of a CGT are far-reaching and potentially 

massively distortionary. 

The Tax Working Group’s 

interim report released in 

September stopped short 

of making a recommendation 

to the government one way or 

the other on whether a capital 

gains tax (CGT) should be 

introduced. 

Instead, it focused on the 

issues and considerations that 

would need to be addressed if a 

CGT was introduced. Its final 

report in January will contain 

its recommendation. 

New Zealand’s tax system 

already taxes capital gains in a 

number of instances. 

Taxpayers who purchase 

assets with the intention to 

later sell them are technically 

subject to tax - this applies 

to all asset classes without 

exception. 

The current taxation of land 

is another area with specific 

rules targeting the taxation of 

capital gains. Over time there 

has been a move to extend the 

reach of these rules. 

One example is the current 

five year Brightline rule, 

which seeks to tax residential 

investment property bought 

and disposed of within five 

years. 

The government has asked 

the TWG to consider the feasibility 

of a comprehensive CGT 

that would apply broadly to 

most asset classes, including 

all property (except for the 

family home) shares, and the 

sale of business assets and 

goodwill. 

There is no doubt 

bringing in a 

CGT would be 

highly polarising 

and politically 

charged. 

Former governments have 

steered well clear of a CGT, 

not because it doesn’t have 

merits (a lot of countries have 

one), but more than likely 

because any attempt to introduce 

one would be political 

suicide. 

The Labour-led coalition is 

understood to believe the time 

is right to consider the tax. 

They have perhaps come 

to believe that public sentiment 

has changed, and been 

emboldened by surveys that 

show there is majority support 

for the introduction of some 

form of tax on capital. 

But there is no doubt bringing 

in a CGT would be highly 

polarising and politically 

charged. 

Opposition leader Simon 

Bridges has already announced 

that a National government 

would repeal any CGT if it was 

introduced, because it believes 

New Zealanders are currently 

taxed more than enough. 

CGT detractors believe it 

will be complex to administer 

and costly for taxpayers 

to comply with. They may be 

right. 

Rather than exempt assets 

acquired by taxpayers before 

the date of application, which 

would remove the need for 

costly asset valuations (the 

Australian approach), the 

TWG’s preferred approach is 

to bring all assets into the CGT 

net from a certain day and 

require them to be valued at 

that day. 

Conscious of valuation 

costs, the TWG is unlikely to 

mandate all assets be professionally 

valued and is looking 

at rules of thumb, whereby 

values could be determined 

based on rateable or accounting 

values. 

This may placate a lot of 

taxpayers, but not all. Faced 

with the prospect of a large 

tax bill when assets are sold, 

many taxpayers will want to 

obtain an optimum valuation, 

so will inevitably fork out for 

professional valuations. 

In practical terms, valuation 

costs are likely to pale in comparison 

with the ongoing costs 

required to interpret and apply 

any CGT rules. 

While the government may 

attempt to try and keep the 

rules as simple as possible, 

given the varying circumstances 

and situations, the rules will 

need to be extensive. 

As with the tax rules now, 

there will be instances where 

the legislation is not clear or 

does not cover all situations. 

A larger issue will be the 

potential distortionary effects 

a CGT will have on taxpayer 

behaviour. 

In an ideal New Zealand, 

all types of investments would 

be taxed in the same way and 

so investors, all things being 

considered equal, would seek 

investments that returned the 

highest pre-tax profit. 

Scarce resources would be 

allocated to their highest and 

most productive use, markets 

would function efficiently 

- and the sun would always 

shine. 

This is not the case currently 

across assets classes and is 

unlikely to be the case under 

any CGT. This is not because 

there is no appetite to treat 

investments the same way, but 

given the nature and nuances 

of different classes of investments, 

it is not always practicable 

to do so. 

New Zealand’s housing 

market is often used as an 

example of how investment 

decisions can be distorted by 

the tax system. 

And a CGT is seen by many 

supporters as a magic elixir 

that will fix the country’s 

housing affordability woes. 

However, the TWG has 

already expressed as its view 

that tax has “not played a large 

role in the state of NZ’s housing 

market, and will be unlikely 

to play a role in fixing it.” 

It would be interesting to 

know how just how many of 

the oft publicised “majority” of 

New Zealanders who support a 

CGT would still be supporters 

if they knew it was unlikely to 

fix the housing market. 

There have already been 

grumblings from the New 

Zealand Stock Exchange, 

which has urged the TWG to 

recommend the government 

keeps NZ shares exempt from 

a CGT. 

Its concern is that collectively 

owned portfolio investment 

entities (PIEs) may be 

exempted, given the difficultly 

in applying a CGT. 

But this would create an 

REGULATORY MATTERS 

> BY GRANT NEAGLE 

Grant Neagle, a director at Ingham Mora Chartered Accountants 

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

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

uneven playing field between 

direct investors who invest 

indirectly through PIEs and 

could potentially damage New 

Zealand’s capital markets. 

Further, a letter from the 

Ministers of Revenue and 

Finance to the TWG invited 

the group to consider whether 

a tax-free threshold for the 

application of CGT on the 

sale of businesses would be 

appropriate. 

Estimates put the current 

amount of untaxed gains in 

Living the dream 

It’s fair to say that the team at Talent 

ID practise what they preach. The 

specialist Human Resource and 

Recruitment business is built on one 

simple principle - find your balance. 

Director Kellie Hamlett is an 

example of what can be achieved 

when you do. Establishing the business 

in Rotorua almost 12 years ago, 

Kellie is an advocate of the Bay 

and the employment opportunities it 

has to offer. 

“I get excited every time I place 

a talented individual into an amazing 

role,” she says. 

“I know that it’s possible to enjoy 

both a fantastic career and lifestyle 

here – with a salary package that 

includes a better quality of life.” 

Of course for those of us who 

live here, it’s no surprise. Once a 

well-kept secret; word is now out that 

a meaningful career, a market rate 

salary and that essential balance is all 

available within a 2.5hr drive from 

Auckland. 

The benefits of a lifestyle in the 

Bay are an increasingly valuable 

proposition as the cost of city living 

and property becomes unaffordable 

for many. 

With a national database of 

screened and job-ready candidates, 

the HR-qualified Talent ID team use 

their local connections to attract new 

SMEs to be approximately 20 

percent of accounting profits, so 

the impact of a CGT on SMEs 

could in fact be considerable. 

The government would 

look better if it exempted the 

small business owner’s capital 

profits from CGT. 

So already further potential 

exemptions and exceptions are 

creeping in. The more exemptions 

and exceptions a tax, has 

the more it is prone to distorting 

tax payer behaviour. 

In a small economy such 

talent to the region. Their point of 

difference is the care taken to ensure 

that the essential fit is right. 

“It’s one thing to place a candidate 

into a role,” says Stephanie Joblin, 

lead consultant in the Tauranga office. 

“It’s quite another to understand a 

business like it’s your own and find 

that perfect person who fits the team 

and the culture. 

“We take a 360° approach so have 

the confidence to offer a 100 percent 

guarantee with every placement.” 

With offices in Tauranga and 

as NZ’s the potential effects 

a CGT will be of a greater 

magnitude than the additional 

amount of tax revenue it is 

likely to generate, or the perceived 

inequity between the 

haves and the have-nots it will 

attempt to address. 

TWG chairman, Sir 

Michael Cullen, believes it’s 

now or never if a capital gains 

tax is to be introduced, as such 

a move would become more 

politically unpalatable as New 

Zealand’s population ages. 

One thing is certain, if a 

CGT is introduced Kiwis will 

pay more tax and have greater 

compliance costs than they 

currently do. 

The comments in this article 

are of a general nature and 

should not be relied on for 

specific cases, where readers 

should seek professional advice. 

Rotorua, Talent ID is committed to 

seeing the Bay’s growth continue. 

“We are locals so have our finger on 

the pulse when it comes to finding the 

right fit for every client,” says Kellie. 

“We work with our employers and 

candidates to not only find a career 

they love, but scope to enjoy a lifestyle 

rich in leisure, fun, friends and 

family.” 

For Recruitment and Human 

Resource Solutions made easy, partner 

with the team at Talent ID. Visit 

Talentid.co.nz for more information.


7 

Trustpower is Baypark’s 

new naming partner 

Iconic Tauranga organisations Trustpower and Bay Venues have 

announced that the leading energy and telecommunications 

company is Baypark’s new naming sponsor. 

From December, Baypark, 

the largest community, 

sporting and events 

venue in the Bay of Plenty, 

will be officially known as 

Trustpower Baypark. Baypark 

provides a wide range of 

activities such as community 

sports, concerts and cultural 

events, exhibitions and shows 

as well as international level 

sporting fixtures. It has also 

been home to speedway in the 

Bay for many years. 

The multi-faceted venue 

includes the Trustpower Arena 

and Trustpower Stadium, both 

of which are used extensively 

through the year. The colourful 

new Trustpower branding of 

the venue will be installed over 

the next few weeks. 

Trustpower CEO Vince 

Hawksworth said being part of 

the community was an essential 

part of Trustpower’s DNA. 

“We have supported 

local organisations like the 

Trustpower TECT rescue helicopter 

for many years. We’re 

excited about our new partnership 

with Baypark and the 

opportunity to be involved in 

an even wider range of community 

events and activities 

here on our home turf.” 

Bay Venues CEO Gary 

Dawson believes Trustpower’s 

involvement could not have 

come at a better time, with the 

facility’s usage and enquiry 

rates at unprecedented levels. 

“We are very excited to be 

able to form a naming rights 

partnership with Trustpower 

– a successful Tauranga company 

that has the same underlying 

community objectives as 

ourselves – to enrich the lives 

of those living in Tauranga,” 

he said. 

“Local use and enjoyment 

of Baypark has grown year on 

year and Trustpower’s involvement 

with Baypark will ensure 

future growth and accessibility 

for all sectors of our community 

through their participation, 

or attendance at the many 

events and activities currently 

available at the venue.” 

Upcoming events 

The post-Christmas holiday 

bliss is a great time for 

friends and family to take in 

some of the fantastic events at 

Trustpower Baypark. 

Trustpower CEO Vince Hawksworth and Bay Venues CEO Gary Dawson shake hands on 

new partnership. The new branding will be rolled out at Baypark over the next few weeks. 

The Concert season hits 

Baypark in January. You can 

celebrate New Year’s Day at 

the Bay Dreams Pre-party, featuring 

UK dance duo Chase 

& Status (DJ set), Miami 

rapper Smokepurpp and hiphop 

legend Grandmaster 

Flash. Electronic maestros 

Hybrid Minds who sold out 

their entire previous NZ run 

are onboard, with Tomorrow 

People, Chores and T1R flying 

the Kiwi flag. Tickets available 

from www.theticketfairy.com 

from $89.00 + bf. 

Bay Dreams on 2 January 

is already sold out and 30, 

000 festival-goers will party 

to international artists CARDI 

B, MIGOS, Tash Sultana, 

Shapeshifter, Sticky Fingers, 

Peking Duk (Live), $uicideboy$, 

Macky Gee, Pnau, 

Katchafire. Please book early 

to be part of this in 2020. 

For more information visit 

www.baydreams.co.nz. 

A Summers Day Live hits 

Baypark 9 January 2019 headlined 

by Toto with Jefferson 

Starship and Kiwi favorites 

Dragon. It’s without question 

that TOTO is currently in the 

middle of a major resurgence 

around the world. Loved 

for hits such as ‘Rosanna’, 

‘Africa’ and ‘Hold The Line’, 

the band has released 17 studio 

albums, and sold more than 

40 million records worldwide, 

since forming in the 1970s. 

And if that wasn’t enough, 

the next night, 10 January will 

feature A Summers Day Disco. 

Catch disco legends together 

for a one-off New Zealand 

show, when The Jacksons, 

Kool & the Gang, The Pointer 

Sisters, Village People, Sister 

Sledge and The Sounds of the 

Supremes will grace the stage 

over the eight hour event. Make 

sure you book your tickets now 

from www.theticketfairy.com 

The D1NZ National 

Drifting Championship 2019 

season is starting with a bang, 

with the NZ Summer Smoke 

Out held during peak holiday 

season in beautiful Mt 

Maunganui. 

Round 1 will be at 

Trustpower Stadium on 12-13 

January 2019, featuring the 

Pyro Company 

Fireworks Extravaganza. 

Check out New Zealand’s best 

drifters battling it out in the 

stadium, sliding along the concrete 

walls and turning tyres 

into smoke. 

This is one of the best 

events of the season and showcases 

just how far the sport 

of drifting has come. Tickets 

available at www.d1nz.com/ 

tickets from $45.00 + bf. 

Baypark Family Speedway 

has four meets over December- 

January, so get your friends 

and family down and experience 

the excitement. 

For a full list of events, visit 

www.bayparkfamilyspeedway. 

co.nz. For corporate hosting 

opportunities contact us at 

events@bayvenues.co.nz or 

phone 07 577 8560. 

For a full list of all 

events held at Baypark visit 

www.trustpowerbaypark.co.nz 

or call 07 577 8560.


Rare lineup of classic Jags in Tauranga. (below) A replica of 

the D-type Jaguar that won Le Mans three times, built and 

owned by Auckland’s Larry Price. Photos/Julie Stephenson. 

Classic Jags roar 

into Tauranga 

The 30th anniversary of the Jaguar Enthusiasts Club (BOP) 

recently drew 47 classic Jaguar cars and around 80 enthusiastic 

participants from across the country to Tauranga. 


The cars ranged from Mark 

2s, Mark Vs and E-types 

to newer classics like the 

XJS, XK8 and XF models. 

Big attractions for the large 

crowd that gathered to view 

the cars at Masonic Park in the 

downtown CBD were several 

XK120, 140 and 150 classics. 

The show included two 

replicas of winning Le Mans 

C-types, and a replica of the 

D-type, three times winner of 

Le Mans. Local club president 

Tony Johnson said the D type 

was a real crowd- pleaser with 

its great looks and rear fin. 

Another big drawcard was the 

new build XKSS. 

The XKSS is regarded as 

the first supercar and was a 

favourite of late actor and racing 

enthusiast Steve McQueen. 

The new build is worth around 

$1.7 million. 

There were large contingents 

from New Plymouth and 

Auckland, with others from 

across the North Island, while 

John and Angela Leslie spent 

six days driving their 1947 

1.5 litre Mark IV from their 

Invercargill home to Tauranga. 

“All the cars epitomised the 

Jaguar phrase ‘grace - space 

– pace’,” said Johnson, who 

owns an XK 140 Open Two 

Seater. 

He noted that while there 

were 69 XKs sold new in New 

Zealand in the 1950s, the pop- 

ularity of the type and subsequent 

imports have resulted in 

there now being around 330 

XKs in the country. 

The BOP club, which was 

founded in 1988 and still has 

four founder members in its 

ranks, meets twice a month 

from February to December, 

either socially or at a technical 

venue to share information, 

and holds a car run on its second 

meeting of each month. 

“Members join to network, 

talk Jaguars and for companionship,” 

said Johnson. 

“The older classics are 

beautiful cars that were 

well made and have lasted 

well. 

“These public shows are 

only held on special occasions 

because of the huge effort to 

put them on. 

“This was the first since our 

25th anniversary and we and 

the public saw a rare lineup of 

Jaguars.” 

New boat show pulls crowds in Tauranga 


The Tauranga Fishing And 

Boat Show (TFABS) 

got off to a good start, 

pulling in around 3800 visitors 

over three days to the 

Baypark Arena, said organiser 

Lawrence Daly. 

The Arena was hired out for 

a total of six days in order to 

pack in and out the 36 boats on 

display, nine jetskis, two fishing 

tackle retailers and 45 exhibitors, 

from across the country. 

Daly said seven new potential 

exhibitors made themselves 

known to staff at the 

show, with three already committed 

to support next year’s 

event and many more addi- 

tional exhibitors expected. 

“Being a new business and 

format fishing and boat show, 

understandably many potential 

exhibitors chose to evaluate 

the first TFABS event 

before making a commitment 

to attend next year,” he said. 

“The key to this type of 

event is an indoor venue, full 

facilities, free parking and all 

exhibitors being related to the 

water recreational interest of 

the visitors, with no unrelated 

fill stalls.” 

Daly said that launching a 

new show in Tauranga was 

always going to be a challenge, 

especially after an absence of a 

couple of years. 

“And we knew it would 

always be compared with the 

very successful and well-run 

Hutchwilco Boat Show [in 

Auckland], but it happened,” 

he said. 

“Feedback from visitors 

and exhibitors has been largely 

favourable.” 

The Arena (now the 

Trustpower Arena with 

December’s change of sponsor 

from ASB) was booked for 

TFABS 2019 back in February 

and discussions are underway 

into the possibility of using the 

larger hall. 

That would mean no restrictions 

for boat height and width, 

which limited the number of 

manufacturers boats inside this 

year, said Daly. 

“Where possible, TFABS 

2018 endeavoured to support 

Lawrence Daly: Pleased with the response 

to new boating and fishing show. 

local businesses and contractors 

for all our required services to 

produce this show,” he said. 

“Congratulations and 

thanks go out to all who exhibited 

and attended this year’s 

show. We have received countless 

remarks on the quality and 

effort made by all involved.” 

Business Expo to highlight 

wellbeing in workplace 

Award-winning wellbeing 

specialist, author 

and entrepreneur 

Lauren Parsons has been 

confirmed as the keynote 

speaker for the Bay’s 2019 

Business Expo’s VIP breakfast 

forum at Trustpower 

Baypark on Wednesday 6 

March. 

Parsons, founder of the 

Snack on Exercise movement 

and a TEDx speaker, is noted 

for her practical time-saving 

approach to making healthy 

life habits stick, equipping 

busy people with tested strategies 

that work, said organisers. 

The Business Expo was 

launched in 2018 and aims to 

showcase leading edge businesses, 

speakers and education 

under one roof. 

Parsons will share ways 

to thrive in the workplace 

and super-charge productivity, 

while achieving balance 

and wellbeing, said Sharon 

Giblett, director of Jigsaw 

Solutions Group and the 

Business Expo. 

“We are delighted Lauren 

will be the keynote speaker 

at the 2019 event,” she said. 

“We have a long association 

with Lauren and are 

excited that exhibitors and 

VIP guests will experience 

the wisdom of an international 

speaker of Lauren’s calibre 

and experience.” 

Originally from New 

Zealand, Lauren has been 

posted to Ottawa, Canada for 

the past two years with her 

husband, lieutenant-colonel 

Maurice Parsons and their 

three children, while her 

husband served as exchange 

officer. A working parent 

who has relocated regularly 

(eight times in the past 

15 years with five international 

moves), Parsons 

shares high level strategies 

and techniques with clients 

to help them maintain their 

health, energy and productivity, 

achieving more with less 

time, said the organisers. 

Her keynote, entitled 

“Overcoming the overwhelm 

- how to thrive in a fastpaced 

world”, will be the 

first time the prominentconference 

speaker has presented 

in Tauranga. Organisers 

said they expected her session 

would be highly sought 

after by business leaders and 

managers from around the 

region and beyond. 

“With wellbeing playing 

such a key role in managing 

workplace culture, health and 

safety, this event is not to be 

missed,” said Giblett. 

By DAVID PORTER


9 

The other side of balanced 

investment portfolios 

Recent sharemarket volatility has 

caused some investors to review their 

portfolio asset allocation. In the fixed 

interest market, a number of companies 

have, over the past few months, issued 

new fixed interest securities to attract 

investor’s funds. 

In many cases, funds raised 

by companies have been 

used to repay their shorter-term 

bank debt, enabling 

them to extend their debt 

repayment terms taking advantage 

of our low current interest 

rates. 

In many cases, investor 

demand has allowed issuers 

to set interest rates lower than 

they might otherwise have 

needed to pay if accessing 

funding from other sources. 

Other factors influencing 

interest rates being offered 

include security quality and 

the size of the issue. 

Those securities that have a 

credit rating from a recognised 

credit rating agency, such as 

Standard & Poor’s or Moody’s, 

are usually considered more 

favourably by investors. 

A BBB or higher rating 

is considered “Investment 

Grade.” Credit ratings are not 

guarantees of repayment, but 

merely opinions by the rating 

agency of the credit risk, with 

a BBB or equivalent rating 

equating to an opinion that the 

issue (or issuer) has adequate 

capacity to meet its financial 

commitments. 

Historical default rates 

for BBB securities have been 

around two percent, evidencing 

a very low probability of 

failure. 

Companies with strong 

credit ratings generally offer 

lower interest rates because 

they are seen as more secure, 

and therefore investors are 

happy to accept a lower interest 

rate. 

Credit ratings of individual 

fixed interest securities are 

also influenced by the type of 

security that is being issued. 

For example, subordinated 

securities that rank in priority 

behind other forms of debt held 

by a company in the event of a 

default, are considered inferior 

to unsubordinated securities 

that rank equal with other debt 

held by the company. 

The size of the issue and 

whether it is listed on the secondary 

market also has a bearing 

on the success of the issue. 

Larger issues, of $100 million 

or more, are considered more 

favourably for investment 

by institutions and investors 

because of their liquidity, (i.e. 

the ability to sell or buy on the 

secondary market). 

Examples of recent new 

fixed interest issues are: 

As shown by the examples 

above, not all fixed interest 

investments are equal. 

Advising on this part of a portfolio 

asset allocation requires 

consideration of a range of 

factors such as maturity date, 

credit rating and security, 

liquidity, and interest rate, as 

to whether an investment is 

suitable for individual client 

needs. 

Chorus 

Christchurch City 

Council 

BNZ 

Fonterra 

Property for 

Industry 

Genesis Energy 

NZX 

This column is general in 

nature and is not personalised 

investment advice. This column 

has been prepared in good faith 

based on information obtained 

from sources believed to be reliable 

and accurate. Disclosure 

Statements for Forsyth Barr 

Authorised Financial Advisers 

are available on request and 

free of charge. 

Unsecured, 

Unsubordinated 

Unsecured, 


Unsecured, 


Secured, 


Secured, 

Subordinated 

Unsecured, 

Subordinated 

Unsecured, 


$150 million in 

size 


size 


size 


size 


size 

$500 million 

in size 

6 year term 3.58%, interest 

semi annually 


semi-annual 


semi-annual 


quarterly 

30 year term first 5 years fixed 

at 4.65%, reset 

every 5 years, 

for the issue 


size 

WHAT TO DO WITH YOUR MONEY 

> BY BRETT BELL-BOOTH 

Investment Adviser with Forsyth Barr Limited in Tauranga, and an 

Authorised Financial Adviser. Phone (07) 577 5725 or 

email brett.bell-booth@forsythbarr.co.nz. 

5 + 5 year term fixed 4.35% 

first 5 years, 

interest paid 

quarterly 

A+ credit rating 

AA- credit 

rating 

A- credit rating 

Unrated 

BB+ credit 

rating, (BBB+ 

for the 

company) 

15 year term first 5 years 

fixed at 

5.40%, interest 

quarterly 

BBB 

credit 

rating. 

Unrated 

6 MARCH 2019 

BAYPARK ARENA, TAURANGA 

WHERE BUSINESS GETS DONE! 

More than: 

$1,000,000.00 

OF 

BUSINESS 

GENERATED FROM 

THE 2018 EVENT 

DON’T MISS OUT! 

SHOWCASE YOUR BUSINESS 

Book your stand for Business Expo 2019 

• Supercharged one day event 

• Premium and Small Biz stands available 

• Kick-start your year 

• Seminars and masterclasses 

• Network with leading edge businesses 

• Find opportunities and solutions 

• Amazing Expo only offers and prizes 

• VIP breakfast event – invite your VIP clients 

Organisers 

Sponsors 

Supporting Partners


Turning summer 

holiday dreams into 

business reality 

If you’re one of many that find the summer holidays lead to 

thoughts of living the dream and operating your own franchised 

business, how do you choose among the 631* franchise systems 

operating in New Zealand? 

FRANCHISING 

> BY NATHAN BONNEY 

Nathan Bonney is a director of Iridium Partners. He can be 

reached at nathan@iridium.net.nz or 0275-393-022 

A 

multitude of factors lead 

to business success, but 

in franchising, a successful 

system will possess three 

characteristics - good single 

unit economics, a well-resourced 

franchise support 

structure, and the likelihood 

of longterm economic sustainability. 

1. Good single unit 

economics 

A franchise must provide a 

reasonable profit and return for 

the capital and human resources 

engaged in the business. 

However, a high number of 

outlets and franchisees does 

not always reflect a successful 

franchise model. 

Most franchisors make 

their income from the top-line 

of franchise fees or sales in 

the system, but franchisees 

make their living from the bottom-line, 

the profit at a single 

franchise unit level. They are 

different dynamics and not 

always linked. 

You should ask, on average 

do the franchisees make 

money? If I follow the system, 

will I make money? Also look 

at the set-up costs for a new 

franchise versus those on the 

market or recently sold, and 

how long existing franchisees 

have been in the system. 

If the franchise system has 

multi-unit franchisees, is this 

due to good single unit economics 

or because having just 

one outlet or franchise doesn’t 

make enough money? 

2. Solid systems and a 

sound support structure 

The second criteria is a well-resourced 

support structure covering 

initial training, ongoing 

support and marketing. 

What and how long is the 

initial training? Who conducts 

the training? Training can be 

assessed by visiting existing 

franchise outlets and seeing how 

consistent the experience is. 

Post training, what support 

is provided by the franchisor? 

How structured and 

effective is the support? Ask 

questions about franchisor’s 

support office and who’s on 

their team? Meet with the different 

support team members 

to get to know who you will be 

dealing with on a regular basis. 

Marketing is the third area 

of support to scrutinise. How 

are the franchisees’ marketing 

contributions spent and how 

effective is it? What support 

and material is provided to 

undertake local marketing and 

how does this integrate with 

national programs. Ask your 

friends, “what do you know of 

x brand”. Does the marketing 

perception and brand delivery 

match? 

3. Economic sustainability 

You want the best chance of 

ensuring profitability over 

time, and the ability to exit the 

business and gain a return on 

your capital. 

Looking forward to assess 

long term economic sustainability 

is a little like crystal ball 

gazing, but a mix of prior performance 

and market analysis 

can clear some of the smoke. 

How long has the brand 

been around, how long has 

the franchisor operated the 

brand? Is the brand growing? 

And if not, why? Is it 

in a market that is saturated 

or a category in decline? 

Technology and trends need 

to be considered.Will the 

brand (or even category) be 

around in five years? 

After covering the above in 

your due diligence, also use a 

franchise specialist accountant 

and solicitor before you sign a 

franchise agreement. 

Critically, visualise yourself 

enjoying a new role as a 

franchisee in the brand. Being 

happy is an essential step to 

success. 

* The Franchising New 

Zealand 2017 Survey http:// 

franchise.co.nz/survey 

Termsaphobia, a modern epidemic 

In serving the local Bay of Plenty business community over the 

years, I’ve observed that many businesses are plagued with a 

condition that I have deemed to be “Termsaphobia.” 

This condition is mainly 

present in established 

businesses and occurs 

when the owners of the business 

are hesitant to establish 

and implement new terms of 

trade and have these agreed to 

by their existing clients. 

The reason I’m offered 

most often for them not to have 

clients agree to the new terms 

is that they will get offended 

and stop using the business, 

and that the business is seen to 

be accusing the client of being 

a bad customer. 

But if implemented properly, 

any discomfort or offence 

can be mitigated and it can 

actually help to strengthen the 

relationship. 

It is basic psychology that 

a person will feel more loyalty 

and attachment to a business 

with which they have a formal 

written agreement, rather than 

a loose oral arrangement. 

With good terms implementation, 

a business should 

experience more customer loyalty 

along with less overdue 

accounts and a faster resolution 

to disputes. 

Problems in business relationships 

are mainly caused by 

the following issues: 

1) Lack of clarity of 

information. 

2) A disparity between the 

expectations of each party. 

3) Lack of follow-through on 

promises. 

4) Lack of communication. 

5) Late payment. 

Now although #5 on the 

list seems pretty self-explanatory 

there is often more to it 

than is initially evident. Late 

payments are not only bad for 

current cash flow, they can 

also impede future cash flow. 

A client is less likely to use 

further services while they are a 

delinquent payer and the longer 

the payment is outstanding the 

less likely they are to use the 

services again and the less likely 

they are to recommend the 

service to others. 

There seems to be a sense 

of “out of sight out of mind” 

that develops in the mind of 

the debtor. 

At the same time, the business 

owner is quietly waiting 

for and expecting the debtor to 

pay when they can. 

They don’t want to risk 

future business by chasing the 

debt, but don’t realise that this 

is having the exact opposite 

effect. 

I often refer to the above 

situation in the context of a 

petrol station transaction often 

saw when working in a petrol 

station as a teenager. 

If a customer drives off 

after filling their tank and forgetting 

to pay, then remembers, 

they realise they have 

about 24 hours to go back and 

pay. If they do that, the driveoff 

will probably be recognised 

as a mistake. 

But leave it much longer 

than that, and the non-payment 

now looks deliberate as there 

was no good reason to take so 

long to return and pay up. 

The act now looks deliberate 

and because there is no 

good explanation as to why 

it took so long to return, most 

people that don’t go back right 

away will not return to the 

petrol station again, out of 

embarrassment and fear of 

discovery. 

My advice is to have a 

terms of trade that is properly 

written and specifically applicable 

to your business (don’t 

download one from the internet 

unless you would download 

parachute plans as well). 

And make sure it is implemented 

in a manner that is not 

only conducive to good credit 

management, but also to good 

CREDIT MANAGEMENT 

> BY NICK KERR 

Nick Kerr is Area Manager BOP for EC Credit Control NZ Ltd. 

He can be reached at nick.kerr@eccreditcontrol.co.nz 

account management. 

Your clients will feel privileged 

and respected by receiving 

your terms, because it 

shows them you recognise the 

value they represent to your 

business is significant and 

warrants protection.


11 

PMG funds acquire $96 million 

in property this year 

Tauranga-based Property Managers 

Group (PMG) closed its biggest Offer and 

acquired two quality industrial buildings in 

December, ending what officials said had 

been the company’s best year on record. 


This year PMG’s funds 

have acquired eight 

commercial properties 

valued at $96 million across 

New Zealand on behalf of 

investors, including two recent 

industrial property acquisitions 

by Pacific Property totalling 

$52 million. 

“We are thrilled to end 

the year knowing that we are 

delivering over and above our 

promises and are doing the 

right thing to look after our 

investors’ interests,” said PMG 

Group chief executive and 

director Scott McKenzie. 

The 26-year old unlisted 

property and funds manager 

also traded approximately 

$20 million of secondary sales 

across its funds on behalf of 

investors throughout the year - 

the highest level of secondary 

sales in PMG’s history. 

That had improved overall 

liquidity for PMG investors, 

38 per cent of whom are Bay 

of Plenty residents. 

McKenzie said the good 

year had been a combination 

of ensuring PMG was offering 

what it believed was the 

This year we’ve seen 

a number of new 

investors invest with 

us as they gravitate 

back to tangible assets 

with reliable revenue 

streams when markets 

are volatile and 

uncertain, just like we 

are seeing now. 

– Scott McKenzie 

most appropriate investment 

offering in changing market 

conditions, staying close to the 

financial aspirations of investors, 

understanding what they 

want to do with their investments 

in PMG, and delivering 

on those expectations. 

“This year we’ve seen a 

number of new investors invest 

with us as they gravitate back 

to tangible assets with reliable 

Economist Cameron Bagrie (far right), with PMG officials at a recent investor presentation: (from left) 

Daniel Lem, head of investment and director, Steve Williams, head of asset management, Mat Harvie, Auckland 

business development and investor relations, Matt McHardy head of business development and investor relations, 

and Scott McKenzie, chief executive. Photo/Supplied. 

revenue streams when markets 

are volatile and uncertain, just 

like we are seeing now,” said 

McKenzie. 

“Typically, with unlisted 

commercial property funds - 

like PMG offers - clients are 

investing for the medium to 

long term in land, bricks and 

mortar, so global share market 

volatility is less relevant.” 

This coupled with PMG’s 

strategy of building portfolio 

diversification, with many 

properties and tenants in one 

investment vehicle, aimed to 

reduce risk. The conservative 

approach to managing debt 

to equity ratios were clearly 

appealing to more investors, 

he said. 

PMG is the first unlisted 

property and funds manager to 

receive two AA ratings for its 

retail investment funds, Pacific 

Property and PMG Direct 

Office Fund, by investment 

research house, NZX-owned 

FundSource. 

“Despite economic predictions 

painting a more dismal 

picture in 2019, there doesn’t 

look to be any slowing down 

next year for the company,” 

he said. 

PMG is currently preparing 

a number of new Offers for the 

market in 2019; has plans to 

enhance the PMG brand, and is 

working on a new and innovative 

investment offering, with 

further details to come. 

“While we can’t predict 

the economic future, PMG’s 

26-year proven track record of 

providing sustainable returns 

through a variety of challenging 

economic fluctuations, and our 

business model, puts us in good 

stead to weather any pending 

turbulence We’re really excited 

about the year ahead.” 

TERMS 

OF TRADE 

CREDIT 

CHECKING / 

MONITORING 

DEBT 

COLLECTION 

Nick from 

EC Credit Control 

is the Bay of 

Plentys leading 

debt prevention 

expert. 

CREDIT 

MANAGEMENT 

TRAINING 

FOR A NO OBLIGATION MEETING CALL OR EMAIL NICK TODAY 

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

0800 EC GROUP | www.eccreditcontrol.co.nz


The value of 

good people 

When a valued employee starts looking for 

work elsewhere, it’s extremely unsettling. 

And it’s definitely an opportunity to 

investigate what can be done to help 

them stay – and to check in with your 

whole staff base. 

The fact is that employee 

turnover is one of the 

major challenges for New 

Zealand companies. Indeed, 

the cost of employee turnover 

is one of the biggest drains 

on the bottom line with the 

average cost for recruitment, 

training and lost time and productivity 

at between 100-150 

percent of the employee’s salary, 

depending on the role. 

You need to understand that 

these costs are just as real as 

any other expenditure in your 

business – and be constantly 

alert to mitigating them. 

For starters, you need to 

recognise individuality among 

your staff. There can be a lot 

you can do to keep top people 

besides increasing their 

remuneration. 

People are motivated by 

different things. And, inequitable 

remuneration (perceived or 

real) is not the only reason they 

will seek new work, though if 

you are not paying a market 

wage you are unlikely to retain 

anyone long term who is competent 

at their job. 

Common drivers to seek 

new career options include 

lack of recognition or lack of 

purpose or vision in the business, 

and a desire for more 

development opportunities and 

responsibility. 

Alternatively, people are 

often frustrated by poor management, 

unmet expectations, 

stress and/or fatigue, or are 

simply bored by highly repetitive, 

mundane work. 

Communication is 

one of the keys to 

retaining good staff 

and may reveal what 

your employees need 

to keep them satisfied 

and productive. 

So when someone is looking 

elsewhere, try to understand 

what motivates them and 

consider what would make 

their position more appealing. 

Indeed, you should be having 

this discussion with all your 

employees on a regular basis. 

Communication is one of 

the keys to retaining good 

staff and may reveal what your 

employees need to keep them 

satisfied and productive. 

If someone is leaving due to 

lack of responsibility or a desire 

for more status, discuss developing 

a career advancement 

programme with a performance 

plan and training opportunities. 

And, if you’re not already 

offering excellent flexible 

work arrangements and investing 

in remote access technologies, 

then it’s well worth 

considering or you’ll be left 

behind in a market where this 

is increasingly expected. 

MONEY MATTERS 

> BY STEPHEN GRAHAM 

Stephen Graham is a Director and Managing Partner at BDO 

Rotorua, Chartered Accountants and Advisers. To find out more 

visit bdorotorua.co.nz or email rotorua@bdo.co.nz 

If the motivation is financial, 

then you may want to 

weigh the cost of any proposed 

salary or wage increase against 

the costs of replacing them 

– i.e. all the costs associated 

with recruiting someone new, 

training costs, productivity 

losses (including your time) 

and performance losses. 

However, be wary of 

the staff member constantly 

requesting further salary 

advances – you can’t buy loyalty 

and you may be being 

backed into a corner. You may 

end up buying another six 

months of their “loyalty” – 

until the next request comes in. 

You can also suggest noncash 

benefits as part of a 

remuneration package, such as 

providing a company car, subsidised 

health benefits, access 

to or funding educational or 

training courses, discounted 

products or services your business 

offers or even shares in 

your business, perhaps as part 

of a succession plan. Be aware 

of any Fringe Benefit Tax these 

expense benefits may attribute. 

If money is the key driver, 

perhaps consider a small 

pay increase coupled with an 

increased employer kiwisaver 

contribution or implementing 

a performance-based bonus 

system. 

Ultimately, employee turnover 

is a cost that all business 

owners face, and one that 

needs to be managed and if 

needed, budgeted for. 

Information access has 

transformed the property 

market 

REAL ESTATE RESIDENTIAL 

> BY GREG PURCELL 

Greg Purcell is the Business Owner and a Director of Ray 

White Mount Maunganui and Papamoa. He can be reached 

at greg.purcell@raywhite.com or 0272-730-361. 

The explosion of access 

to online information has 

transformed the property 

market and the role of the real 

estate agent. 

When I began in the business 

a couple of decades ago, 

agents tended to be the main 

sources of information. 

That’s no longer the case 

and hasn’t been for a few 

years, but the pace of digital 

change is really making itself 

felt now. 

Potential buyers find it’s 

now much easier to compare 

and assess properties. They 

may passively view a property 

in the paper or online, but 

that will be just the start of a 

much more rigorous research 

process. 

Photos, and increasingly 

video walkthroughs, are 

undoubtedly a key part of the 

initial assessment process. 

That’s why there is much 

more emphasis by sellers on 

home staging and professional 

photography these days. 

Buyers are out in the car on 

the weekend with their laptop 

of earmarked possibilities and 

agents won’t get them to call 

in to an open home unless it’s 

already on their shortlist. 

What has changed - especially 

in the past couple of 

years - is the degree of information 

that potential buyers 

now bring to a potential transaction. 

And that affects how an 

agent approaches reaching an 

agreement between buyer and 

seller. For us, the key takeaway 

is to be very well prepared. 

When I began in real estate 

(in what might as well have 

been the 15th century in comparison 

with today’s access to 

information), both buyers - and 

in many case - sellers found it 

difficult to keep up with the 

play. 

That is no longer so. We 

find buyers ask much more 

specific and informed questions 

about a property. They 

can go online and look at 

all the sales around the area 

before they even check out a 

potential purchase. 

But despite the dramatic 

increase of often algorithm-driven 

data, those of us 

who are constantly out in the 

market on both sides of transactions 

are generally better 

informed on a more up-to-theminute 

basis. 

The difference agents bring 

is that we have real-time information, 

as opposed to stats that 

may have been updated over a 

process of four to six weeks. 

Potential buyers sometimes 

take the information they can 

access online as gospel, when 

it often isn’t. No amount of 

data or attractively staged and 

shot photos prepares them for 

their personal response to a 

property. 

The same space, number of 

rooms and outdoor area and 

estimated value, invariably 

translates into very different 

personal living experiences. 

My experience - especially 

in the wake of the weath- 

er-tightness issues - is that it’s 

our responsibility as agents to 

identify any potential issues 

at the front end of the process, 

not at the 11th hour. It is sometimes 

the case that a seller is 

genuinely unaware of a potential 

problem. 

We need to make sure there 

are no surprises, either for 

buyer or seller. We can’t be 

expected to pre-empt the outcome 

of a builder’s report. But 

the world has long changed 

from the days when there were 

relatively few constraints on 

home DIY projects. There is 

much more concern around 

consenting processes having 

been signed off, insurability 

and long-term re-salability. 

We’re required to know a 

lot more about a property than 

we used to. Because of that we 

encourage sellers to make sure 

key information, such as an 

updated LIM report, is available 

for potential buyers, and 

we build providing that into 

our recommended package for 

house sellers. 

Fortunately, these days it’s 

much easier to provide the 

information that buyers are 

now deeming vital for decision-making.


13 

Food for thought 

Shared commercial kitchen space is being championed and foodbased 

businesses are realising the benefits of a shared economy 

when it comes to production kitchens, with around-the-clock 

use of facilities bringing greater efficiencies and value gains for all 

involved. 

One thriving example 

in the US is a business 

called The Food 

Corridor, an app-based operation, 

which harnesses more 

than 55 kitchens across 28 

states and brings together more 

than 900 food businesses. 

Those behind the business 

say it enables efficiency, 

growth and innovation by 

providing a range of licensed 

kitchens for food businesses 

to use. 

This is perfect for both budding 

food start-ups and those 

businesses looking to expand 

or scale up production without 

having to enter into an 

unwieldy lease of their own at 

These commissary 

kitchens are utilising 

technology to disrupt 

the food industry in a 

positive way for chefs, 

caterers, food truck 

operators, artisan 

producers and meal 

delivery businesses. 

a time when they’re fine-tuning 

the food operation. 

It gives fledgling food businesses 

the opportunity to test 

a concept and logistics before 

taking on a lease and indeed, can 

be the gateway to a successful 

independent business with ultimately, 

its own premises. 

These commercially 

licensed food-grade premises 

are referred to as “commissary 

kitchens” and they’re often 

used by food truck businesses 

that are constrained for preparation 

and storage space. 

The kitchen premises are 

offered up on apps with users 

opting to take out a membership 

plan, giving them specified 

regular usage, or by-thehour 

options for those looking 

for a more fluid arrangement. 

The kitchens vary in their 

specification, amenities and 

service provided, but in addition 

to commercial cooking 

and preparation facilities, can 

also include equipment, cold 

storage, power, water and 

cleaning. 

These commissary kitchens 

are utilising technology 

to disrupt the food industry 

in a positive way for chefs, 

caterers, food truck operators, 

artisan producers and meal 

delivery businesses. 

They allow for growth, 

innovation, collaboration, scalability 

and consistency. 

In New Zealand, the 

Ministry of Business, 

Innovation and Employment 

(MBIE) has an informative 

website outlining the requirements 

and scope of the Food 

Act 2014 which came into 

force in 2016. 

All commercial food businesses 

must register when they 

start trading and MBIE has an 

online tool called “Where Do 

I Fit”, which allows businesses 

to see what category they 

fall into and what legislative 

requirements they must fulfil. 

Broadly speaking, homebased 

food enterprises have 

a high compliance threshold, 

which can be prohibitive to 

many operations, so utilising a 

commercial premises is preferable 

and more cost-effective in 

the long-run. 

In Auckland, The Kitchen 

Project is a collaboration 

between Auckland Tourism 

Events and Economic 

Development (ATEED), 

Panuku Development 

Auckland, and the Healthy 

Families community group. 

It provides information, 

mentoring and some practical 

assistance to those looking to 

start a food business. And with 

60 percent of food businesses 

not surviving past the six-year 

mark, it’s a great way to dip a 

toe into the sector. 

Around New Zealand there 

are various businesses – both 

app-based and more traditional 

– offering shared commercial 

kitchen space; Google “commercial 

kitchens to lease by 

the hour” and you’ll get a taste. 

If you are a business operating 

from a commercial kitchen 

that you lease, perhaps there’s 

an opportunity for you to work 

with your landlord and offer 

a shared facilities scenario to 

optimise your rental outgoings 

and open the door to collaborative 

arrangements with other 

likeminded food businesses. 

https://www.bayleys.co.nz/ 

workplace/industrial/insights/ 

food-start-ups 

Commercial 

Property 

Management 

At Bayleys, we believe relationships are what businesses 

are built on and how they succeed. We understand that 

to maximise the return on your property you need: 

Professional property management 

A business partner that understands 

your views and goals 

Speak to your Bayleys team today. 

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

Jan Cooney 

Snr. Commercial Property Manager 

P 579 0609 M 027 408 9339 

jan.cooney@bayleys.co.nz 

Brodie Thomas 

Commercial Property Manager 

P 579 0608 M 027 746 9218 

brodie.thomas@bayleys.co.nz 

Mark Walton 

Bayleys Tauranga Commercial Manager 

P 571 4673 M 027 232 6307 

mark.walton@bayleys.co.nz


PROPERTY 

Artist impressions of the new University of 

Waikato campus and the new Farmers Buil Artist 

impressions of the new University of Waikato 

campus (above) and the new Farmers Building 

(right). Images/Supplied. ding (right). 

Images/Supplied. 

Tauranga CBD getting major makeover 

Tauranga’s central business district 

closed out 2018 undergoing the biggest 

revitalisation in the city’s history. 

By RICHARD RENNIE 

More than a quarter of 

a billion dollars of 

investment spend is 

being injected into buildings 

and projects across a 20 ha area. 

Several big ticket items 

that have captured headlines 

in the past year include the 

University of Waikato campus 

development, priced at $39 

million and due to open a year 

ahead of time in February. 

Craig’s House on Devonport 

Road is a $50 million project 

due to kick off in the 

New Year, while at the other 

end of the CBD the Farmers 

development, valued at $100 

million, is now well underway, 

with a retail completion date of 

early 2021. 

The investment is proving 

significant, not only on 

grounds of its scale as one of 

the country’s most intensely 

redeveloped areas, but also for 

the interest it is attracting from 

investors beyond Tauranga’s 

boundaries. 

Dylan Barrett, a property 

valuer and director of Preston 

Rowe Paterson in Tauranga, 

told Bay of Plenty Business 

News the city was starting to 

develop clear CBD precincts 

that were capturing the interest 

of larger investors drawn 

by the prospects of the city’s 

future growth. 

Auckland-based property 

investment and management 

group MAAT Group recently 

purchased 306 Cameron 

Road. Meanwhile, southerners 

have also shown an interest 

Agent cautious on rebuild impacts 

Philip Hunt, Ray White 

managing director and 

principal for Tauranga, 

said he was an optimist 

when it came to Tauranga’s 

CBD redevelopment, but 

was concerned about the 

shorter-term impact of turning 

the city in to a construction 

zone. 

“The CBD is very dear 

to my heart, having been 

Tauranga’s inaugural 

Mainstreet manager for six 

years when the Edgewater 

development started,” 

said Hunt. 

“At the moment I am 

concerned about how construction 

seems to be limited 

to daylight periods. Earlier 

projects on Devonport road 

used to work through the 

night to get the jobs done, 

but at present we have major 

issues with access and parking 

during the day.” 

Hunt said he appreciated 

the delays and shortages of 

parking might only be short 

term, but worried that was 

causing people to abandon 

the CBD over this period, 

and making life tough 

for retailers. 

“You have to question 

whether more work could 

be done out of hours, and on 

weekends to get it done.” 

He was concerned the 

two to three years of inconvenience 

might be too long 

for some retailers to hold out 

for a better CBD. 

“What I can see is a bit 

of flight from first floor 

spaces to the fringe due to 

problems of access for customers 

and staff. But they 

will come back, and we will 

have a good commercial 

centre there.” 

Hunt’s advice to landlords 

was to do all they 

could to retain their tenants, 

and take into account they 

were they were facing difficult 

circumstances due to 

the construction’s impact 

on access, parking and road 

closures. 

“I am very excited about 

what the CBD will become, 

but fear we will see some 

businesses flounder or 

move in the process, as they 

may not be able to sustain 

themselves for the time 

required.” 

with Queenstown-based Maori 

Hill Property stepping into 

Tauranga with a company entity 

investing in the Trustpower 

building, along with land out 

at Tauriko. 

Barrett said that while the 

university and Farmers were 

sound cornerstone investments 

in the CBD, Trustpower’s 

move back into the city had 

helped turn the tide back from 

the past gradual creep outside 

of the CBD. 

“The larger investment 

companies have been securing 

a large amount of A grade 

assets, showing real confidence 

in Tauranga.” 

University campus impact 

The development of the 

University of Waikato in such 

a central city site has the university 

continuing to secure 

land in the area as part of its 

2040 strategy to develop a full 

campus facility. 

There has also been market 

speculation about the likelihood 

of a student accommodation 

facility for the campus 

being likely to go ahead. 

The development of a 

Quest apartment complex on 

Devonport Rd is a further $5.7 

million investment, due to 

open May 2019. 

Plans for a $40 million 

hostel on Durham Street were 

shelved earlier this year, but 

an alternative in a five storey 

living facility on Selwyn 

Street continues to go through 

resource consent processes. 

The recent sale of a large 

redevelopment site along 

Cameron Road sold at a premium 

price of $2730/square 

sqm (effective), with no development 

plans yet laid out. 

The new developments 

are also likely to impact upon 

commercial rental values in 

the city. 

Barrett said superior quality 

A grade offices generally 

reflected rentals of “early” 

$300/square metre. 

The current rental rates 

made it difficult to stack up 

new office developments when 

you take into consideration current 

land values as well escalating 

construction costs, he said. 

“To get an appropriate 

return, those rental values 

need to be in excess of $350/ 

square metre. Either land values 

or construction costs need 

to adjust, or rentals have to 

increase to make office development 

in the CBD feasible.” 

Barrett said he also believed 

central city retail will have a 

catch-up as pedestrian counts 

lift with the new projects’ 

completion. 

He noted that retail remains 

disconnected to some extent 

from the positive commercial 

prospects, but says some businesses 

have recognised the 

potential more students in the 

central city bring. 

“So we have seen the likes 

of the Barrel Room and CBK 

open and it’s likely we will see 

more service-based companies 

relocate back into the CBD in 

coming years to boost this.” 

No shortage of investors 

Bayleys commercial agent 

Mark Walton said there was 

no shortage of investors 

seeking opportunities within 

Tauranga’s CBD. 

“There are many inquiries 

from people who have sold off 

other assets, maybe a house 

in Auckland or a kiwifruit 

orchard, who are drawn to the 

good returns they can get on 

commercial property.” 

Walton said that, in the 

absence of finance companies 

that used to command high 

interest rates for investors, 

commercial property was a 

good alternative. 

“Compared with the past 

they are also investing without 

a significant level of debt 

being involved.” 

Syndicated property groups

PROPERTY 


15 

TAURANGA CBD – WHERE THE MONEY IS BEING SPENT 

are also more active, and the 

entry level for deposits has 

fallen, making them more 

accessible to a broader range 

of investors. 

He agreed with Dylan 

Barrett that there would need 

to be some adjustments around 

new property rental values, 

given the costs of land, demolition 

and construction on 

new builds. 

“And there are really only 

so many tenants that can pay 

the money needed on those 

spaces.” 

Developer Location Development Value Open date 

Farmers Elizabeth St Retail/apts/eateries $100 m Early 2021 

Private Cameron Rd Parking Building $7 m Early 2019 

University Waikato Durham St University campus $39 m Feb 2019 

Council Harrington St Transport Hub $20 m Early 2020 

Craigs Devonport Rd Office $50 m Early 2020 

Quest Devonport Rd Accommodation $5.7 m May 2019 

Council Willow St City Council $23 m 2021 

Council Willow St Library $39 m Mid 2022


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How business narratives changed in 2018 

The past year has seen some big changes 

in the ways New Zealand businesses are 

telling their stories and promoting their 

products. Some of these changes have 

been easy to predict, such as increasing 

use of social media, while others may have 

come as more of a surprise. 

Perhaps the most noticeable 

shift is the spike in 

recognition among businesses 

of the value of linking 

their brand into a larger narrative, 

such as climate change, 

and telling an authentic story 

about the origins of their products 

or services. 

By doing this, businesses 

can attract customers who 

share their beliefs and want to 

make a difference with their 

spending, over and above the 

product or service they are 

buying. 

New Zealand company 

All Birds, which is making 

it big in the United States, is 

succeeding by creating stylish 

shoes out of wool and natural 

materials. 

At a time when concern 

about the environment and 

people’s carbon footprints is 

so prevalent, the company’s 

fans love the idea that they 

are making an environmental 

contribution by purchasing All 

Birds shoes instead of a synthetically-made 

alternative. 

The year has also seen 

increasing reliance on non-traditional 

media to communicate 

with customers. 

This has been exacerbated 

by falling staff numbers 

in many newsrooms and US 

president Donald Trump’s 

regular accusations of “fake 

news,” both of which have 

diminished the credibility of 

the media with some readers 

and reduced the perception of 

a gap between blogs and corporate 

news sources, and professional 

journalists. 

As a result, many people 

are getting their information 

from other sources – often 

Facebook, Instagram or the 

websites of their favourite 

blogger or influencer. 

A growing number of businesses 

are putting effort into 

identifying the non-traditional 

mediums read by their customers 

and putting a larger proportion 

of their marketing and 

PR budget into communicating 

through those channels. 

Another shift is the rapid 

rise in the number of businesses 

using automation in their 

marketing. 

It’s now easier than ever for 

businesses to set up pre-written 

marketing messages that 

can be sent to customers when 

a specific condition is met, 

whether that is immediately 

following a sale, two weeks 

later to prompt them to post a 

review, or a week before their 

birthday to encourage them to 

treat themselves. 

Automated marketing messages 

have been around for 

years now, but new low-cost 

services are making it simple 

for smaller businesses to 

make use of their customer 

data for this purpose, while 

also making it easier to ensure 

these canned messages appear 

more personalised for each 

recipient. 

Technological progress is 

also changing the way businesses 

write, particularly 

online. 

A prime example of this is 

voice search – Google predicts 

that by 2020 around half of 

online searches will be done 

verbally, by talking to our 

phones, rather than typing our 

search queries in via text. 

Google’s search results are 

based on the terms used by a 

person searching, so one of 

the implications of increasing 

use of voice search is that 

businesses will need to write 

more conversationally – in 

ways more similar to how 

people talk – if they want to 

appear high up in online search 

results. 

Surprisingly, video didn’t 

gain too much ground as the 

medium of choice. 

More businesses are using 

video to tell their story, but 

engaging text content such 

as articles, case studies and 

how to guides continue to play 

TELLING YOUR STORY 

> BY JAMES HEFFIELD 

Director of Bay of Plenty marketing and PR consultancy Last 

Word. To find out more visit lastwordmedia.co.nz or email 

james@lastwordmedia.co.nz. 

a critical role in storytelling 

and content marketing, due in 

large part to their searchability 

on Google, and the ease with 

which readers can skim-read 

them to find the information 

they are after. 

The trends outlined here are 

just some of the major changes 

we’ve seen throughout 2018. 

Businesses that adapt their 

storytelling to topical issues 

and opportunities provided 

by new technologies are most 

likely to get the best possible 

reach for every dollar they 

spend on marketing and public 

relations. 

Take a real holiday break 

With the summer holidays almost upon us, let’s consider how 

to make the most of our break from work. 

HUMAN RESOURCES 

> BY KELLIE HAMLETT 

Director, Recruitment & HR Specialist, Talent ID Recruitment Ltd 

By that, I mean taking a 

real break and unplugging 

and disconnecting 

from work, to revive and 

refresh. No checking emails, 

taking calls or sending messages. 

No thinking about work 

piling up or jobs that can’t wait. 

For many people, it’s getting 

harder and harder to take 

an actual break from work. 

These days, technology enables 

us to work from anywhere, 

with workloads and 

performance expectations 

set high. Emails are instantly 

accessed any time of day 

and night, and with that people 

expect instant responses. 

We’ve become a very responsive 

society and people have 

come to expect this. It’s almost 

part of customers’ expectation 

of excellent service these days. 

But is it healthy? When you 

consider the extent of stress, 

burnout and mental health 

issues in the workplace, you 

have to wonder what we are 

actually doing to ourselves. 

The idea of a holiday is 

to take a break from work, 

recharge spend quality time 

doing the things you enjoy, 

rest, re-focus and come back to 

work revived. Focus on other 

aspects of your life so that 

when you go back to work 

you feel refreshed and energised. 

Put simply, staying productive 

in the office requires 

spending time away from it. 

While most of us recognise 

that, the hard part is letting go 

and actually doing it. The fear 

of missing out by switching 

off is real. 

One of my clients has 

recently implemented an 

“unplugged policy” around 

taking leave. They want staff 

to make the most of their time 

away from work by taking a 

real break, so that when they’re 

at work they are healthier, perform 

better and are ultimately 

more productive. When anyone 

in the organisation takes 

leave, they are encouraged to 

totally cut off from work – to 

literally unplug. 

Here are some of the things 

that their policy includes; 

When an employee is away 

on leave, all of their emails 

are deleted. Yes, deleted. The 

holidaymaker turns on an out 

of office email reply which 

explains the situation. The 

theory is that if the email is 

urgent, the emailer will contact 

the nominated backup person 

and they’ll deal with it. If it’s 

not urgent, the emailer can follow 

up when the holidaymaker 

returns. The out of office 

message stays on for an extra 

day after the employee returns 

from leave to ensure they get a 

chance to get back into work 

mode and catch up. 

Deleting emails seems 

extreme, but it makes sense. 

It means the holidaymaker 

doesn’t return to a full inbox 

and have to spend the next 

few days dealing with it.Urgent 

things don’t get held up 

while they’re away because 

the backup person is empowered 

to deal with them, and 

there’s no worrying about 

emails. And because the messaging 

is pitched in the right 

way, customers aren’t annoyed 

at the inconvenience. 

A policy like this allows 

for a real cultural shift and 

flows through to many other 

aspects of the business such 

as employee engagement 

and retention, and even their 

employer brand. Certainly, the 

idea of unplugging isn’t a new 

concept - some of the larger 

corporates switch off their 

servers at a certain time in the 

evening to ensure e-mails are 

held over, in an attempt to ease 

the temptation of working late 

and from home. 

It takes a certain amount 

of bravery to implement policies 

such as these in an age 

where technology is enabling 

and allowing us to work in a 

more flexible manner. Clearly, 

we are not managing this well 

personally, hence the need for 

company policies to encourage 

the process. 

It’s so important for people 

to take time off that it can 

give your business a competitive 

edge. Research shows that 

proper rest periods improve 

wellness, reduce stress and 

increase productivity. Holiday 

periods, particularly over 

Christmas and the New Year, 

are also a time for reflection, 

providing an opportunity to 

reflect on the past year and 

make plans and set goals for 

the year ahead. 

Take some time to consider 

your own business operations 

and how you can encourage 

your staff - and yourself - to 

take some real time out from 

the business these holidays.


19 

Key steps to starting 

your own business 

A new year, a new beginning. If becoming 

your own boss was a New Year’s resolution 

and you are actually doing it, then first of 

all congratulations! It takes guts to become 

self-employed but for many people, the 

benefits outweigh the risks. How you get 

from point A to point B is completely up to 

you now and, if you do it right, your earning 

potential is unlimited. 

Paula Lines, Commercial 

Lawyer at The Law Shop. 

If you’re starting a business 

this year, there will be a lot 

to think about. Are you starting 

from scratch, or do you 

want to buy an existing business 

or a franchise? Buying a 

business gives you a known 

name, some structure, and a 

client base. Starting a brand- 

new venture gives you the 

chance to do it your way, without 

having to spend too much 

money acquiring the business. 

“Whichever you choose, 

one of your first decisions will 

be what legal entity to use. 

Will you operate as a sole trader, 

a partnership, or a limited 

company? Each entity has its 

advantages and disadvantages 

when it comes to tax rates, 

creditor protection, compliance 

costs, and so on. Even 

if you’re in business on your 

own, you expose yourself to 

personal risk if you haven’t 

set up a legal business entity,” 

says Paula Lines of The Law 

Shop. 

“Unless you intend to work 

from home, you’ll need to 

look at business premises or 

an office, which usually means 

reviewing a lease. You’ll have 

to choose an accountant and 

accounting system, learn about 

payroll and tax obligations, 

find a banker, and organise insurance,” 

she says. 

“A desire to fill out legal 

forms isn’t the reason you 

want to go into business, we 

get that. But if you are going 

to start a business, or if you 

are serious about buying one, 

Our team can help draw up a partnership 

agreement that works for you both. No matter 

how much you think you are on the same 

page right now, do not get me started on the 

horror stories. 

do see us at The Law Shop 

first. If you get your ducks in 

a row from the start, you can 

avoid unnecessary risk,” Paula 

explains. 

If you are going into business 

with a co-founder or 

partner, you’ll need a solid 

partnership arrangement. You 

don’t want to find yourself in 

a nasty legal battle if disagreements 

come up, and that is 

likely if things go wrong and 

you don’t have a legal document 

that outlines the details. 

“Our team can help draw 

up a partnership agreement 

that works for you both. No 

matter how much you think 

you are on the same page right 

now, do not get me started on 

the horror stories. It’s a smart 

move to document everything 

from day one,” Paula says. 

The Law Shop works with 

all sorts of businesses, from 

start-ups through to corporations 

with 100+ staff. They 

know all there is to know about 

business law and can help and 

advise you at any time of your 

journey. 

Contact The Law Shop’s 

Rotorua or Tauranga office today 

if you need practical and 

professional legal advice for 

your business. It will be delivered 

with a no-nonsense approach. 

Just pick up the phone, 

or visit www.thelawshop.co.nz 

when the time has come to get 

things started. 

STEPHANIE NORTHEY 

LL.B | Director 

PAULA LINES 


SARSHA TYRRELL 


ROTORUA 

1268 Arawa St 

Rotorua 

TAURANGA 

1239 Cameron Rd 

Greerton

It Doesn’t Get 

Much Better 

Than This 

Technically two apartments, this 

exceptional waterfront home is one 

of the most exciting opportunities to 

hit the Bay of Plenty market in 

recent years. Savvy investors, 

extended families, seekers of 

privacy and space take note - this 

property is on the Highway to Sell! 

The Duchess 

of Westridge 

With 360 degree privacy yet no 

compromise on sun, there’s 

something for everyone here. 

Whether you’re a gardener, 

swimmer, sunbather or 

entertainer. Whether it’s netball, 

basketball, volleyball or tennis, this 

hidden oasis will have the whole 

family doing more of what they love 

at home. 

6 

5 4 

5 586m2 

5 

3 4 

3 377m2 0.54ha 

64 Harbour Drive, Tauranga 

Asking $4,100,000 

Cameron Macneil 

021 800 889 

26 Wallace Place, Tauriko 

Price by Negotiation 


021 800 889 

Dream Family 

Lifestyle 

Be careful who you bring to the 

viewing because this stylish, 

contemporary home set on 2 acres 

of classic country land will have the 

whole family begging you to buy. 

This is a true family retreat, with four 

bedrooms, an office or 5th bedroom 

and multiple separate living areas, 

including a rumpus room in the kids 

wing. 

Pacific Rim 

Paradise 

When I first met with Anne, she told 

me her vision here was to create a 

home that felt like the perfect 

combination of art and architecture. 

Designed by Maria and the late 

James Cotter, the final product of 

that vision was built in 2002 by 

award-winning, master builder 

Murray Pederson. 

5 

2 3 

2 301m2 

0.85ha 

4 

2 1 

2 270m2 1.14ha 

135d McLaren Falls Road 

Enquiries Over $1,290,000 


021 800 889 

11d Rowe Road, Ohauiti 



021 800 889 

Sunsets, 

BBQs & Magic 

Mount Views 

This is a social, relaxed home. It’s a 

home of love, of laughter, and it’s 

pretty easy to imagine waking up 

each day to the sound of birds and 

at night, watching the sun set from 

your expansive deck or spa pool. 

Whether upsizing or downsizing, this 

semi-rural property should be added 

straight to the top of your list 

Ladies & 

Gentlemen 

This is a unique home, set in a 

private, elevated position and it’s 

just minutes from Omokoroa Village. 

Over the past few years, Mrs Barons 

has lovingly and tastefully enhanced 

the interior and it can now be 

described as a truly elegant 

residence. Each living space offers a 

different view and atmosphere. 

4 

2 2 

2 227m2 0.30ha 

4 

2 3 

2 340m2 0.54ha 

33 Oceana Drive, Welcome Bay 



021 800 889 

425 Omokoroa Road, Omokoroa 



021 800 889 

Sophisticated 

Single-Level 

Living 

Architecturally designed and sited 

perfectly for sun and views, this 

absolutely stunning home is 

brimming with state-of-the-art 

construction materials and features. 

The bold white on white colour 

theme draws attention to the striking 

twin gables, and a true sense of 

quality and style is present 

throughout the property. 

A Thing 

Called Love 

Make no mistake, this absolutely 

gorgeous character home set on an 

established four acres just a few 

minutes up Ohauiti Road is a 

seriously hot property and priced to 

sell! In 2017 a a major extension / 

renovation really brought the home 

and property to life. The setting is 

picturesque, birds singing and trees 

rustling are heard more frequently 

than anything man-made. 

4 

3 3 

2 343m2 953m2 

44 Holyoake Terrace, Omokoroa 



021 800 889 

5 

4 3 

2 228m2 

12 Neewood Road, Ohauiti 



021 800 889 

1.64ha 

Trusted to sell Bay of Plenty’s finest homes and lifestyle properties 

Oliver Road Estate Agents Limited | Licensed REAA 2008 

oliverroad.co.nz

Bay of Plenty Business News December/January 2018/19

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