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Bay of Plenty Business News September/October 2019

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

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

SEPTEMBER/OCTOBER <strong>2019</strong> VOLUME 3: ISSUE 9 WWW.BOPBUSINESSNEWS.CO.NZ FACEBOOK.COM/BOPBUSINESSNEWS<br />

Port <strong>of</strong> Tauranga Chief Executive,<br />

Mark Cairns (left) and Tainui Group<br />

Holdings Chief Executive, Chris<br />

Joblin. Photo/Supplied.<br />

PORT PARTNERSHIP<br />

TAURANGA AND TAINUI INK<br />

INLAND PORT AGREEMENT<br />

Port <strong>of</strong> Tauranga and the Tainui Group<br />

Holdings subsidiary Port Ruakura LP have<br />

agreed on a 30-year rail freight partnership<br />

to support the development <strong>of</strong> the planned<br />

Ruakura Inland Port in Hamilton.<br />

By DAVID PORTER<br />

Port <strong>of</strong> Tauranga chief<br />

executive Mark Cairns<br />

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

<strong>Business</strong> <strong>News</strong> the agreement<br />

announced in August was a<br />

significant development.<br />

“We’ve been talking with<br />

Tainui for a quite a long time,<br />

but have made a lot <strong>of</strong> progress<br />

in the past three months<br />

where we’ve put some ink on<br />

a 30 year deal to develop the<br />

Ruakura centre with them,”<br />

he said.<br />

The agreement allows Port<br />

<strong>of</strong> Tauranga's cargo trains<br />

running between MetroPort<br />

Auckland and Tauranga to service<br />

the Ruakura Inland Port.<br />

That will allow Waikato-based<br />

Continued on page 3<br />

Tourism<br />

Founders reacquire Zorb<br />

ball-rolling company.<br />

P10<br />

Horticulture<br />

Scientists team up to<br />

battle stink bug threat.<br />

P14<br />

M&A<br />

Jenkins takes 50 percent<br />

stake in CRA.<br />

P15


2 BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong>


BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

3<br />

Port partnership - Tauranga and<br />

Tainui ink inland port agreement<br />

From page 1<br />

importers and exporters direct<br />

access to fast international<br />

shipping services calling at<br />

Tauranga, which is the only<br />

port call for the biggest 9640<br />

TEU (twenty-foot equivalent<br />

units) container ships visiting<br />

New Zealand.<br />

Cairns said the planned<br />

Ruakura Inland Port <strong>of</strong>fered<br />

significant cargo handling<br />

capacity and scope to meet<br />

future needs.<br />

It's an excellent<br />

example <strong>of</strong> Port<br />

<strong>of</strong> Tauranga's<br />

partnership approach<br />

to providing supply<br />

chain infrastructure<br />

beyond our <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> hinterland.”<br />

- Mark Cairns<br />

TGH describes Ruakura<br />

as a “visionary logistics hub”<br />

designed to help importers and<br />

exporters unlock the golden<br />

triangle. Offering genuine<br />

scale, the core <strong>of</strong> the development<br />

is a 30ha inland port<br />

which will <strong>of</strong>fer direct access<br />

to major seaports via main<br />

trunk rail services and the<br />

Waikato Expressway.<br />

Complementing the inland<br />

port is a 192ha logistics and<br />

industrial precinct <strong>of</strong>fering<br />

room to grow for businesses<br />

seeking a substantial footprint,<br />

and adjoining precincts for<br />

commercial, residential and<br />

retail use. Ruakura is longterm<br />

project by TGH and its<br />

business partners.<br />

The ‘new black’<br />

“Inland ports are the new black<br />

with all <strong>of</strong> the port companies<br />

at the moment,” said Cairns.<br />

He noted that in the<br />

Waikato, Port <strong>of</strong> Tauranga<br />

was working with Fonterra<br />

out <strong>of</strong> Te Rapa, and that Ports<br />

<strong>of</strong> Auckland was expected to<br />

put around $200 million into<br />

its Northgate <strong>Business</strong> Park<br />

development in the Waikato.<br />

“The Ruakura development<br />

will provide a highly efficient<br />

rail hub in the Waikato by<br />

utilising our existing train services<br />

linking our MetroPort<br />

Auckland inland freight hub<br />

with Port <strong>of</strong> Tauranga, which<br />

is New Zealand's international<br />

hub port and the main cargo<br />

gateway for the upper North<br />

Island,” said Cairns.<br />

“It's an excellent example<br />

<strong>of</strong> Port <strong>of</strong> Tauranga's partnership<br />

approach to providing<br />

supply chain infrastructure<br />

beyond our <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> hinterland.”<br />

Cairns also cited the potential<br />

impact <strong>of</strong> the government’s<br />

comprehensive Upper North<br />

Artist’s impression <strong>of</strong> fully built out Ruakura Inland Port and logistics zone. Photo/Supplied.<br />

Island logistics and freight<br />

review, aimed at ensuring New<br />

Zealand’s supply chain is fit<br />

for purpose in the longer-term.<br />

This includes a feasibility<br />

study to explore moving the<br />

location <strong>of</strong> the Ports <strong>of</strong> Auckland,<br />

with serious consideration<br />

to be given to Northport.<br />

Under the original terms <strong>of</strong> the<br />

study, the group was expected<br />

to deliver a final report to cabinet<br />

in <strong>September</strong> <strong>2019</strong>.<br />

“I would suggest we have<br />

sufficient latent capacity to<br />

handle all <strong>of</strong> [POA’s] volume,”<br />

said Cairns.<br />

Key step for Ruakura<br />

Tainui Group Holdings chief<br />

executive Chris Joblin said<br />

he welcomed the long-term<br />

partnership on behalf <strong>of</strong> Port<br />

Ruakura LP.<br />

“This initial 30-year agreement<br />

with Port <strong>of</strong> Tauranga is a<br />

key step towards fulfilling our<br />

vision for Ruakura to unlock<br />

the golden triangle <strong>of</strong> Auckland,<br />

Hamilton and Tauranga<br />

for importers and exporters,”<br />

he said.<br />

“The agreement will see<br />

Port <strong>of</strong> Tauranga trains initially<br />

call at Ruakura four times<br />

daily and this is likely to grow.<br />

This service will underpin the<br />

significant supply chain savings<br />

we have been modelling<br />

with prospective customers<br />

and tenants <strong>of</strong> Ruakura.”<br />

A TGH subsidiary, Port<br />

Ruakura LP will invest in and<br />

provide the necessary infrastructure,<br />

including a rail siding,<br />

hardstand and cargo storage<br />

areas which will then be<br />

utilised by the Port <strong>of</strong> Tauranga<br />

cargo trains.<br />

Over the past 12 months,<br />

TGH has been working with<br />

LINX Cargo Care, its New<br />

Zealand subsidiary C3 and<br />

specialist advisors on the<br />

design and layout <strong>of</strong> the inland<br />

port and the development costs<br />

are confidential for commercial<br />

reasons.<br />

The golden triangle already<br />

accounts for around half <strong>of</strong> all<br />

freight volumes in New Zealand<br />

and container volumes<br />

are forecast to grow 60 percent<br />

by 2042.<br />

Port <strong>of</strong> Tauranga’s partner<br />

KiwiRail operates up to<br />

86 trains per week between<br />

MetroPort Auckland and<br />

Tauranga.<br />

(See page 5 for Port <strong>of</strong><br />

Tauranga’s latest 12 month<br />

results).<br />

The route currently has<br />

unused capacity and the<br />

This initial 30-year<br />

agreement with<br />

Port <strong>of</strong> Tauranga is<br />

a key step towards<br />

fulfilling our vision<br />

for Ruakura to unlock<br />

the golden triangle <strong>of</strong><br />

Auckland, Hamilton<br />

and Tauranga for<br />

importers and<br />

exporters.”<br />

- Chris Joblin<br />

additional service stop will<br />

improve utilisation and reduce<br />

the number <strong>of</strong> trucks on roads.<br />

The agreement provides<br />

Port <strong>of</strong> Tauranga with priority<br />

rail slots at the Ruakura facility<br />

for an initial term <strong>of</strong> 30 years.<br />

Port Ruakura LP will provide<br />

the necessary infrastructure,<br />

including a rail siding,<br />

hardstand and cargo storage<br />

areas.<br />

Development <strong>of</strong> the Ruakura<br />

Inland Port is scheduled<br />

to follow the completion <strong>of</strong> an<br />

adjacent Hamilton section <strong>of</strong><br />

the Waikato Expressway currently<br />

expected to be late 2021.<br />

KiwiRail chief executive<br />

Greg Miller says the upper<br />

North Island is a key growth<br />

region for KiwiRail and New<br />

Zealand.<br />

“This is another example <strong>of</strong><br />

the supply chain collaborating<br />

with KiwiRail to design and<br />

deliver rail infrastructure to<br />

better connect New Zealand,”<br />

he says.<br />

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lisa.lloyd@linkbusiness.co.nz<br />

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linkbusiness.co.nz/BOP00032<br />

Mike Fraser 021 932 633<br />

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4 BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

CONTACT<br />

INFORMATION<br />

PUBLISHER<br />

Alan Neben<br />

Ph: (07) 838 1333<br />

Mob: 021 733 536<br />

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

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

EDITOR<br />

David Porter<br />

Mob: 021 884 858<br />

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

STUDIO MANAGER<br />

Tania Hogg<br />

Ph: (07) 838 1333<br />

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

GRAPHIC DESIGNER<br />

Kelly Milne<br />

Ph: (07) 838 1333<br />

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

ADVERTISING<br />

INQUIRIES<br />

BUSINESS DIRECTOR<br />

Pete Wales<br />

Mob: 022 495 9248<br />

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

www.bopbusinessnews.co.nz<br />

ELECTRONIC<br />

FORWARDING<br />

EDITORIAL:<br />

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

david@nmmedia.co.nz<br />

PRODUCTION:<br />

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

production@nmmedia.co.nz<br />

SUBSCRIPTIONS:<br />

info@nmmedia.co.nz<br />

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

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

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

Waihi and Opotiki including<br />

Rotorua and Taupo, and to a<br />

subscription base.<br />

www.bopbusinessnews.co.nz<br />

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

<strong>Business</strong> Publications<br />

19A Briarley Street, Tauranga, 3110<br />

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

Publications specialises in<br />

business publishing, advertising,<br />

design and print media services.<br />

From the editor<br />

This month’s cover story<br />

looks at the Port <strong>of</strong><br />

Tauranga and Tainui<br />

Group Holdings subsidiary<br />

Port Ruakura LP’s 30-year<br />

rail freight partnership to support<br />

the development <strong>of</strong> the<br />

planned Ruakura Inland Port at<br />

Hamilton. The deal, says Port<br />

<strong>of</strong> Tauranga chief executive<br />

Mark Cairns, is a significant<br />

development.<br />

The parties have been discussing<br />

the partnership for<br />

some time, but have recently<br />

made progress and inked a<br />

deal. The agreement allows<br />

Port <strong>of</strong> Tauranga’s cargo trains<br />

running between MetroPort<br />

Auckland and Tauranga to service<br />

the Ruakura Inland Port.<br />

That will allow Waikato-based<br />

importers and exporters<br />

direct access to fast international<br />

shipping services calling<br />

at Tauranga, which is the only<br />

port call for the biggest 9640<br />

TEU (20-foot equivalent<br />

units) container ships visiting<br />

New Zealand.<br />

Cairns said the planned<br />

Ruakura Inland Port <strong>of</strong>fered<br />

significant cargo handling<br />

capacity and scope to meet<br />

future needs. TGH describes<br />

Ruakura as a “visionary logistics<br />

hub” designed to help<br />

importers and exporters unlock<br />

the golden triangle.<br />

The journey begun by the<br />

founders <strong>of</strong> Rotorua downhill<br />

ball rolling venture Zorb<br />

has come full circle, with the<br />

founders recently buying back<br />

the company they launched 25<br />

years ago.<br />

Andrew Akers and his<br />

brother David reached an<br />

agreement earlier this year<br />

with the owners <strong>of</strong> Zorb. They<br />

have now amalgamated Zorb<br />

with OGO (Outdoor Gravity<br />

Orb), the downhill ball rolling<br />

company the Akers set up<br />

in 2010, four years after they<br />

left Zorb.<br />

Bringing on board investors,<br />

Zorb Limited was created,<br />

and the team commercialised<br />

downhill ball rolling, later<br />

setting up their own franchise<br />

network around the globe. But<br />

unhappy with Zorb’s direction<br />

once pr<strong>of</strong>essional investors<br />

became involved, Andrew and<br />

his brother left the company.<br />

After exploring other<br />

ventures, he and his brother<br />

decided they wanted to get<br />

back together and redevelop<br />

the downhill ball concept<br />

under their own terms. They<br />

did well with new venture<br />

OGO and were in a position<br />

to approach Zorb’s owners and<br />

buy the company back.<br />

Leading cloud company<br />

The Instillery and managed IT<br />

and security services provider<br />

Origin have agreed to merge.<br />

The Instillery established a<br />

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

and the Waikato last year. The<br />

merger with Origin was aimed<br />

at creating a unique, future-focused<br />

provider <strong>of</strong> cloud, automation,<br />

connectivity and security<br />

pr<strong>of</strong>essional and managed<br />

services for Kiwi midmarket,<br />

enterprise, local and central<br />

government organisations, the<br />

companies said.<br />

The combined organisation<br />

will retain The Instillery<br />

brand, with 200 staff across the<br />

country, and was expected to<br />

deliver more than $40 million<br />

in revenue.<br />

Leading fresh fruit labelling<br />

and packing innovator Jenkins<br />

David Porter<br />

Group - which has a significant<br />

presence in the <strong>Bay</strong>’s horticulture<br />

sector - has taken a 50<br />

percent stake in Hawke’s <strong>Bay</strong>based<br />

CR Automation (CRA),<br />

an award-winning automation<br />

and control systems<br />

manufacturer.<br />

The two companies say<br />

they are coming together to<br />

deliver a range <strong>of</strong> automation<br />

services to post-harvest operators<br />

across Australasia who<br />

want to enhance efficiency,<br />

meet compliance needs and<br />

overcome labour shortages.<br />

Jenkins Group is a key<br />

industry player throughout<br />

Australasia’s horticulture<br />

post-harvest industry with<br />

subsidiaries in New Zealand<br />

and Australia (Tauranga-based<br />

Jenkins Freshpac Systems<br />

Ltd and NSW-based J-Tech<br />

Systems PTY).<br />

The group provides an<br />

extensive range <strong>of</strong> labelling,<br />

packaging and handling systems<br />

to the fruit and vegetable<br />

industry across both countries.<br />

“The Internet <strong>of</strong> Things<br />

(IoT) and automation are clear<br />

requirements for our horticulture<br />

sector to excel and thrive<br />

in a global economy and soar<br />

through its ambitious target <strong>of</strong><br />

being a $10 billion industry by<br />

2020,” said managing director<br />

<strong>of</strong> Jenkins Group, Tony Sayle.<br />

Strength in numbers.<br />

We’d like to introduce our brilliant new Associates Pip, Rachel, Dan, Jess, Tim and Joel, and congratulate them on their recent<br />

promotion. They are highly dedicated and skilled in their areas <strong>of</strong> expertise and a key part <strong>of</strong> our service delivery to the <strong>Bay</strong>.<br />

Pip Allan / Civil Litigation & Dispute Resolution<br />

DDI 07 571 3858 M 027 650 1480<br />

pip.allan@hobec.co.nz<br />

Rachel Rosser / Family, Civil Litigation<br />

& Dispute Resolution<br />

DDI 07 927 2753 M 021 474 818<br />

rachel.rosser@hobec.co.nz<br />

Dan Broadhurst / Property, Commercial,<br />

<strong>Business</strong>, Asset Protection & Estate Law<br />

DDI 07 926 2280 M 021 853 799<br />

dan.broadhurst@hobec.co.nz<br />

Jess Warn / Commercial & <strong>Business</strong><br />

DDI 07 927 2756 M 027 231 9124<br />

jess.warn@hobec.co.nz<br />

Tim Conder / Health & Safety, Civil Litigation<br />

& Dispute Resolution<br />

DDI 07 928 7093 M 021 361 8208<br />

tim.conder@hobec.co.nz<br />

Joel Murphy / Property, Commercial & <strong>Business</strong><br />

DDI 07 570 0682 M 027 268 6480<br />

joel.murphy@hobec.co.nz<br />

hobec.co.nz<br />

HOB25233 BBN


-<br />

BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

5<br />

The 9640 TEU Aotea Maersk on its maiden visit to Tauranga: Bigger container ships<br />

have a lower carbon footprint than previous average size vessels. Photo/David Porter<br />

Port <strong>of</strong> Tauranga results<br />

Port <strong>of</strong> Tauranga (POT), New Zealand’s<br />

largest port, has reported record cargo<br />

volumes and increased pr<strong>of</strong>its for the year<br />

to 30 June <strong>2019</strong>.<br />

Group Net Pr<strong>of</strong>it After Tax<br />

passed the $100 million<br />

milestone for the first<br />

time, increasing 6.7 percent on<br />

last year’s pr<strong>of</strong>it <strong>of</strong> $94.3 million<br />

to reach $100.6 million.<br />

The port has consolidated<br />

its position as New Zealand’s<br />

international hub port, with<br />

transhipment increasing 11.2<br />

percent.<br />

Port chair David Pilkington<br />

said Transhipment (where containers<br />

are transferred from one<br />

service to another), had been<br />

growing significantly since<br />

2016, when it completed its<br />

$350 million capacity expansion<br />

programme to accommodate<br />

bigger container ships.<br />

Transhipment now makes<br />

up 32.1 percent <strong>of</strong> the containers<br />

handled at Tauranga. New<br />

Zealand shippers can access<br />

fast, big ship services that only<br />

call in Tauranga by utilising<br />

the sea links between Tauranga<br />

and Timaru, Napier, Nelson or<br />

Wellington.<br />

Long-term agreements<br />

Pilkington said the port’s longterm<br />

agreements with key customers<br />

gave it the assurance<br />

to plan ahead for increases in<br />

cargo growth.<br />

The port recently renewed<br />

its 10-year operating agreement<br />

with major customer Oji<br />

Fibre Solutions.<br />

“Having the necessary<br />

infrastructure is one thing, but<br />

it is also vital to have the relationships<br />

to ensure we have the<br />

freight volume to attract the<br />

big ship services,” said Pilkington.<br />

“We have long-term agreements<br />

in place with key cargo<br />

owners such as Oji Fibre<br />

Solutions, Fonterra’s shipping<br />

supplier Kotahi Logistics and<br />

Zespri International.”<br />

Chief executive Mark<br />

Cairns said the increased number<br />

<strong>of</strong> containers transferred<br />

by rail to and from Tauranga’s<br />

inland freight hub, MetroPort<br />

Auckland, meant that Metro-<br />

Port Auckland currently stands<br />

alone as the country’s fourth<br />

largest container terminal by<br />

volume.<br />

The recently announced<br />

partnership with Tainui Group<br />

Holdings (see our cover story)<br />

would help Waikato-based<br />

importers and exporters unlock<br />

the significant efficiencies to<br />

be gained by being directly<br />

linked by rail to the big ship<br />

services calling at Tauranga,<br />

said Cairns.<br />

Port <strong>of</strong> Tauranga has also<br />

expanded its MetroPort Christchurch<br />

inland freight hub by<br />

constructing a large warehouse<br />

that is being leased by associate<br />

company Coda Group to<br />

handle Westland Milk’s dairy<br />

exports.<br />

Cairns said the development<br />

<strong>of</strong> the group’s network<br />

<strong>of</strong> ports, inland freight hubs<br />

and logistics services, ensured<br />

importers and exporters in<br />

key cargo-producing areas<br />

throughout the country could<br />

access the efficiencies <strong>of</strong>fered<br />

by bigger ships.<br />

“The availability <strong>of</strong> rail and<br />

coastal shipping to consolidate<br />

cargo at Port <strong>of</strong> Tauranga, and<br />

the efficiency <strong>of</strong> the big ship services,<br />

means we can also <strong>of</strong>fer a<br />

HIGHLIGHTS – 12 MONTHS<br />

TO JUNE <strong>2019</strong><br />

• Group Net Pr<strong>of</strong>it After Tax increases 6.7% to $100.6<br />

million.<br />

• Annual container throughput increases 4.3% to more<br />

than 1.2 million TEUs.<br />

• Transhipment increases 11.2%, making up 32% <strong>of</strong> all<br />

container traffic.<br />

• Log export volumes increase 12.5% to 7.1 million<br />

tonnes.<br />

• Exports increase 11.2% to 17.1 million tonnes.<br />

• Imports increase 8.4% to 9.8 million tonnes.<br />

• Annual revenue increases 10.4% to $313.3 million.<br />

• Final dividend <strong>of</strong> 7.3 cents per share bringing the full<br />

year dividend to 13.3 cents per share, a 4.7% increase<br />

on the previous year.<br />

• A special dividend <strong>of</strong> 5.0 cents per share will also be<br />

paid, and the capital repayment programme will be<br />

extended for another four years.<br />

lower carbon supply chain to our<br />

customers,” he said.<br />

Sustainability<br />

Reiterating the port’s commitment<br />

to sustainability, Cairns<br />

said it favoured rail transport<br />

over road because <strong>of</strong> the lower<br />

emissions.<br />

“We are working with<br />

our rail partners KiwiRail to<br />

reduce train-related emissions<br />

through efficiency and technology.<br />

We are also working<br />

with our partners Pacifica<br />

Shipping to promote greater<br />

use <strong>of</strong> coastal shipping where<br />

feasible,” he said.<br />

The availability <strong>of</strong> rail and<br />

coastal shipping to consolidate<br />

cargo at the port, and the efficiency<br />

<strong>of</strong> the big ship services,<br />

means Port <strong>of</strong> Tauranga was<br />

the obvious choice for customers<br />

seeking the lowest carbon<br />

supply chain, he said.<br />

Big ships <strong>of</strong> 7500 to 9500<br />

TEUs have a carbon footprint<br />

more than 31 percent lower<br />

than the previous average size<br />

vessels calling in New Zealand.<br />

Cargo trends<br />

Exports increased 11.2 percent<br />

to 17.1 million tonnes and<br />

imports increased 8.4 percent<br />

to 9.8 million tonnes for the<br />

12 month period. Log exports<br />

increased 12.5 percent to 7.1<br />

million tonnes.<br />

However, as Cairns noted<br />

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

<strong>News</strong>, the drop in demand<br />

from China and in log prices<br />

is expected to impact future<br />

earnings.<br />

“We expect some impact on<br />

volumes in the coming months.”<br />

Looking to the 2020 financial<br />

year, Cairns said log volumes<br />

were expected to fluctuate<br />

in the coming months<br />

following the recent drop in<br />

international prices.<br />

Dairy product exports<br />

remained steady at just over 2.3<br />

million tonnes, while imports<br />

<strong>of</strong> dairy herd food supplements<br />

and fertiliser decreased by<br />

11.8 percent and 9.2 percent<br />

respectively. Kiwifruit exports<br />

increased 15.2 percent during<br />

the period.<br />

Other primary produce sectors<br />

also performed strongly,<br />

with frozen meat exports<br />

increasing 18.8 percent in volume<br />

and apple exports increasing<br />

54.3 percent. Cement<br />

imports decreased 17.1 percent<br />

in volume and steel exports<br />

decreased 7.7 percent.<br />

Ship visits decreased 3.9<br />

percent to 1678 for the year,<br />

but the average size <strong>of</strong> vessels<br />

continues to increase.<br />

Port <strong>of</strong> Tauranga is now<br />

planning for the next stage<br />

<strong>of</strong> growth and in response to<br />

customer demand, intends to<br />

add another container vessel<br />

berth by extending up to<br />

385 metres to the south <strong>of</strong><br />

the existing Sulphur Point<br />

wharves.<br />

A ninth container crane will<br />

be delivered in January 2020.<br />

Port <strong>of</strong> Tauranga will provide<br />

an update on the first<br />

quarter’s trade, and earnings<br />

guidance for the full year,<br />

at the Annual Shareholders’<br />

Meeting on 25 <strong>October</strong> <strong>2019</strong>.<br />

– By DAVID PORTER<br />

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

-


6 BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

Central banks drive markets<br />

Investment Market update for the quarter ended 31 August, <strong>2019</strong><br />

Investors should be very satisfied with returns over the last<br />

quarter. As central banks around the world continued to cut<br />

<strong>of</strong>ficial cash rates and increase monetary stimulus, global<br />

interest rates fell. Lower rates lifted the capital value <strong>of</strong><br />

income generating assets.<br />

WHAT TO DO WITH YOUR MONEY<br />

> BY BRETT BELL-BOOTH<br />

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

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

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

Central banks drove markets<br />

with an almost<br />

seemingly coordinated<br />

response to deteriorating global<br />

economic conditions.<br />

Concerns have been heightened<br />

by the trade war between<br />

China and the US.<br />

Global growth forecasts for<br />

the next 12 months have been<br />

lowered by the International<br />

Monetary Fund.<br />

The US Federal Reserve<br />

made an about-turn from tightening<br />

monetary policy to cutting<br />

the Federal Funds Rate<br />

for the first time in more than<br />

a decade.<br />

Australia cut its <strong>of</strong>ficial cash<br />

rate (OCR) twice in quick succession<br />

to 1.0 percent, and this<br />

was eventually followed by an<br />

aggressive 50 basis point cut by<br />

our own Reserve Bank <strong>of</strong> New<br />

Zealand (RBNZ), also to an<br />

historical 1.0 percent low.<br />

In Europe, where <strong>of</strong>ficial<br />

cash rates are already negative,<br />

the European Central Bank is<br />

considering further alternative<br />

stimulus measures, and policymakers<br />

in China and Japan are<br />

also considering monetary and<br />

fiscal responses to support economic<br />

activity.<br />

Globally, cash rates are<br />

now straddling zero. There is<br />

an estimated US$15 trillion in<br />

negative yielding bonds issued;<br />

many investors are paying<br />

borrowers for the privilege <strong>of</strong><br />

lending them money.<br />

Probably unsurprisingly,<br />

high dividend paying equities<br />

have continued to find support,<br />

despite the s<strong>of</strong>ter economic<br />

outlook.<br />

The equities <strong>of</strong> defensive<br />

dividend-paying companies<br />

with reliable cash flows such as<br />

listed property, infrastructure<br />

and utilities, performed particularly<br />

well over the quarter.<br />

Bonds with longer maturities<br />

produced some <strong>of</strong> the highest<br />

returns as falling interest rates<br />

pushed their prices up.<br />

Financial Markets – s<strong>of</strong>ter<br />

economic growth can be<br />

a positive<br />

SNAPSHOT OF THE QUARTER<br />

• Returns were strong over the past quarter –<br />

supported by the relentless march lower in<br />

interest rates.<br />

• Falling bond yields relative to cash can be a<br />

warning sign <strong>of</strong> recession – though we don’t<br />

anticipate this in <strong>2019</strong>.<br />

• Reliable dividend paying equities, bonds,<br />

property and alternatives can thrive in a low<br />

interest rate environment.<br />

Over the past six to 12 months,<br />

interest rates have been heading<br />

towards zero across much<br />

<strong>of</strong> the developed world, with<br />

Japanese and many European<br />

bonds already providing negative<br />

yields.<br />

Yield curves, which reflect<br />

the difference between shortterm<br />

rates (two years) and longterm<br />

rates (10 years) have also<br />

narrowed. On some measures<br />

in the US, long-term rates have<br />

fallen below short-term rates.<br />

Historically, these<br />

“inverted” yield curves have<br />

always preceded recessions by<br />

six to 24 months. Importantly,<br />

recessions have not always followed<br />

these inversions.<br />

The current state <strong>of</strong> interest<br />

rates reflects the ongoing<br />

sluggish economic recovery<br />

since the Global Financial Crisis<br />

(GFC), and the preference<br />

<strong>of</strong> major central banks to keep<br />

stimulating financial markets<br />

with even lower rates and more<br />

money printing.<br />

Investing in a low-rate<br />

environment<br />

While ever lower interest rates<br />

should generally be interpreted<br />

with caution, due to the s<strong>of</strong>t<br />

underlying economic environment<br />

that central banks are trying<br />

to stimulate, we make some<br />

broad observations:<br />

• Historically, low rates are<br />

positive for assets with<br />

reliable cash flows. This<br />

includes high quality investment<br />

grade bonds and<br />

bond-like equities (utilities,<br />

electricity generators, listed<br />

property and infrastructure).<br />

• While holding cash<br />

becomes less appealing,<br />

some global currencies tend<br />

to perform well in times <strong>of</strong><br />

uncertainty. These include<br />

the Swiss Franc (CHF),<br />

Japanese Yen (JPY) and<br />

US dollars (USD). New<br />

Zealand cash rates are now<br />

well below those in the US,<br />

which is a key cause <strong>of</strong> the<br />

s<strong>of</strong>ter New Zealand dollar.<br />

• Property should do well<br />

in a very low interest rate<br />

environment. This includes<br />

listed property that generates<br />

reliable income streams<br />

via rents, as well as traditional<br />

bricks and mortar.<br />

• Alternative assets can also<br />

do well in a very low rate<br />

environment and at times <strong>of</strong><br />

increasing uncertainty.<br />

As always, diversification<br />

remains the key investment<br />

strategy to mitigate market<br />

risks and volatility.<br />

While a global recession is<br />

not our central expectation for<br />

the rest <strong>of</strong> <strong>2019</strong>, the current<br />

business cycle is mature and a<br />

market pullback wouldn’t be a<br />

huge surprise.<br />

As in the past, any significant<br />

correction in markets will<br />

present good buying opportunities<br />

for those with a medium<br />

to long-term outlook.<br />

This column is general in<br />

nature and is not personalised<br />

investment advice.<br />

This column has been prepared<br />

in good faith based on<br />

information obtained from<br />

sources believed to be reliable<br />

and accurate.<br />

Disclosure Statements for<br />

Forsyth Barr Authorised Financial<br />

Advisers are available on<br />

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

Huge crowd for<br />

Gala Dinner with<br />

Richie and<br />

Gemma McCaw<br />

The recent Gala Dinner<br />

featuring Richie<br />

and Gemma McCaw<br />

at Trustpower <strong>Bay</strong>park drew<br />

almost 1000 attendees, including<br />

a who’s who <strong>of</strong> Tauranga’s<br />

business community.<br />

Organised by Events Innovated,<br />

the event featured a<br />

series <strong>of</strong> interviews by wellknown<br />

broadcaster Peter Williams<br />

with the McCaws as<br />

they discussed challenges on<br />

and <strong>of</strong>f the rugby and hockey<br />

fields.<br />

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

<strong>News</strong> was pleased to be a<br />

co-sponsor <strong>of</strong> this event, which<br />

also provided a fund-raising<br />

opportunity for the<br />

Wish4Fish charity set up by<br />

Bryce Dinneen, a tetraplegic<br />

since a swimming accident<br />

in which he broke multiple<br />

vertebrae.<br />

The Gala Dinner included<br />

an auction <strong>of</strong> donated items -<br />

run by Frank Vosper <strong>of</strong> Vosper<br />

Realty - which raised $70,000,<br />

plus a further $7000 in donations<br />

for Wish4Fish, which<br />

Dinneen set up to organise<br />

fishing trips for people with<br />

disabilities.<br />

Top: Peter Williams interviewing Richie and Gemma McCaw.<br />

Right: <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> <strong>News</strong> (BOPBN) team with<br />

guests from Xero and PMG. (from left) David Porter (BOPBN),<br />

Lisa Wales, Peter Wales (BOPBN), Alan Neben (BOPBN),<br />

Maree Cohen, Richie and Gemma McCaw, Bronwyn Hudson,<br />

Asa Porter, Craig Hudson (Xero), Katrina Altena (PMG)<br />

and Michelle Smith (PMG). Photos/ Events Innovated and<br />

Romani Harrison Photography.


BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

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will bring together hundreds <strong>of</strong> businesses from corporates to<br />

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The purpose <strong>of</strong> the event is to bring <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> wide businesses<br />

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<strong>Business</strong>es valued on pr<strong>of</strong>its<br />

to a working owner<br />

Part <strong>of</strong> the business buying process<br />

involves understanding what the financials<br />

shown in the Information Memorandum<br />

(“IM”) are telling you about the pr<strong>of</strong>itability<br />

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

A<br />

key financial item to<br />

understand is how pay<br />

to a working owner has<br />

been treated, as not all businesses<br />

for sale are created<br />

equal.<br />

Some IMs will have no<br />

allowance for the pay <strong>of</strong> a<br />

working owner or management.<br />

What this means is that the<br />

business pr<strong>of</strong>it isn’t really that<br />

real – there is another worker<br />

(or two) required to earn that<br />

level <strong>of</strong> pr<strong>of</strong>it.<br />

Some businesses will have<br />

management costs already built<br />

into the valuation – and this<br />

makes them more valuable as<br />

it widens the prospective buyer<br />

pool.<br />

With a good manager in<br />

place, potentially anyone can<br />

be a buyer – rather than maybe<br />

needing industry experience if<br />

you need to be hands on.<br />

Clearly, lower staff cost<br />

assumptions cause higher pr<strong>of</strong>its,<br />

which leads to a higher<br />

potential business value and<br />

sale price.<br />

So, there is an incentive in<br />

selling a business to not allow<br />

for the true costs <strong>of</strong> management<br />

when the owner has previously<br />

been doing this work.<br />

Are you buying a job?<br />

This can lead to people paying<br />

good money just to effectively<br />

buy a job.<br />

Let’s say Dave is selling his<br />

To me a business<br />

should ideally be<br />

valued based on<br />

what a shareholder<br />

can earn without<br />

having to lift a<br />

finger.<br />

electrical business. He’s finally<br />

decided to retire and sell his<br />

baby <strong>of</strong> the last 20 years.<br />

Dave works in the business<br />

full time and he pays himself<br />

a wage <strong>of</strong> $75,000, which<br />

reduces company pr<strong>of</strong>it to nil.<br />

On paper the business has zero<br />

pr<strong>of</strong>it.<br />

Now Dave talks to his business<br />

broker and they prepare<br />

the IM which says “Pr<strong>of</strong>it <strong>of</strong><br />

$75,000 to a working owner.”<br />

Which is true.<br />

But where I have trouble is<br />

when that $75,000 is then multiplied,<br />

by say 3x to arrive at the<br />

business value.<br />

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

would get listed for sale at<br />

$225,000.<br />

Is that business worth that<br />

money? Maybe, maybe not.<br />

Dave knows that if he wasn’t<br />

running the business, he’d have<br />

to pay that pr<strong>of</strong>it to any manager<br />

that he got in to do it for<br />

him.<br />

There wouldn’t be much<br />

pr<strong>of</strong>it left over for any shareholders.<br />

I argue that if all the pr<strong>of</strong>its<br />

<strong>of</strong> a business go to pay for<br />

a manager to run it – then that<br />

BETTER BUSINESS BUYING<br />

> BY TOM BESWICK<br />

Director at Ingham Mora Chartered Accountants in Tauranga, is a<br />

business advisor who specialises in buying and selling businesses.<br />

He can be contacted on 027-5744- 019 or tom@inghammora.co.nz<br />

business isn’t really making<br />

any money.<br />

One step further (and<br />

slightly tongue in cheek) – if<br />

said business isn’t making<br />

money, then it may not be<br />

worth anything.<br />

Cue general outcry from<br />

many business owners.<br />

To me a business should<br />

ideally be valued based on what<br />

a shareholder can earn without<br />

having to lift a finger.<br />

Now <strong>of</strong> course there are<br />

many valid reasons that people<br />

pay the prices they do for businesses<br />

that are not related to<br />

the pr<strong>of</strong>its <strong>of</strong> the company i.e.<br />

lifestyle opportunities, value <strong>of</strong><br />

working for yourself, the ability<br />

to add value to the business,<br />

synergies with other businesses<br />

they own etc.<br />

These reasons are all valid.<br />

I just like to be clear to my clients<br />

what they are paying for<br />

when they buy a business.<br />

Of course, most SME businesses<br />

will have mum and dad<br />

involved in the business in<br />

some shape or form. Usually<br />

very heavily.<br />

Most <strong>of</strong> them won’t be able<br />

to afford to take a manager on.<br />

That’s all totally fine.<br />

I just don’t want my clients<br />

to overpay by paying an asking<br />

price that doesn’t factor in<br />

the real costs <strong>of</strong> running the<br />

business.<br />

It is crucial to ask the right<br />

questions before you buy a<br />

business - always seek pr<strong>of</strong>essional,<br />

independent advice.<br />

Eco-friendly Matakokiri<br />

Drive development for<br />

sale in Tauriko<br />

A<br />

fresh, modern and ec<strong>of</strong>riendly<br />

new development<br />

project is available<br />

for Pre-Sales in Matakokiri<br />

Drive - the latest stage in the<br />

sought-after Tauriko <strong>Business</strong><br />

Estate. The vision <strong>of</strong> Tauranga’s<br />

Paul Symes, Director <strong>of</strong> developer<br />

Viste Belle Ltd, it incorporates<br />

the latest in sustainable<br />

solutions and is expected to set<br />

a new level in modern industrial<br />

design.<br />

This is Viste Belle Ltd’s<br />

second development in Tauriko.<br />

Symes says he is excited<br />

to be releasing the three 425<br />

m2-to-444 m2 Industrial Units<br />

at Lot 404, Matakokiri Drive.<br />

The extensive fit-outs will<br />

include architecturally designed<br />

facades, warehouse, <strong>of</strong>fices and<br />

lunchroom, as well as air-con,<br />

floor coverings, security alarms,<br />

Ultra Fast Fibre, and LED lighting.<br />

Each unit includes seven<br />

dedicated carparks and heavy<br />

goods vehicle access parking.<br />

“Mid-size industrial units<br />

are in very short supply in Tauranga,”<br />

says Symes. “Owner<br />

Occupiers and Investors will<br />

need to act fast,” says Symes.<br />

Adds Mat Gibbard <strong>of</strong> Colliers:<br />

“With interest rates at<br />

record lows, there is no better<br />

time for businesses to make the<br />

move into their own new turnkey<br />

warehouse and <strong>of</strong>fice unit.<br />

These units are perfect for the<br />

busy business owner who wants<br />

a new unit, without the hassle <strong>of</strong><br />

being a developer”<br />

The experienced Project<br />

Team includes iLine Construction,<br />

Architectural Design<br />

Group, Colliers, Lysaght Consultants,<br />

Quay Properties and<br />

Harris Tate Solicitors. Construction<br />

is scheduled to commence<br />

in December <strong>2019</strong>, with<br />

completion in June 2020.<br />

All Pre-Sales completed<br />

before 31 <strong>October</strong>, <strong>2019</strong>, will<br />

include an extensive Solar and<br />

EV package, valued at more<br />

than $20,000. Call us now.<br />

Mathew Gibbard - Sales and Leasing Broker<br />

M: +64 27 223 3069 E: mathew.gibbard@colliers.com<br />

Rich Davidson - Sales and Leasing Broker<br />

M: +64 27 860 9338 E: richard.davidson@colliers.com


BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

9<br />

Jeremy Pryor, Sales Associate<br />

at New Zealand Sotheby's<br />

International Realty in Tauranga.<br />

I've been boating and fishing<br />

on Lake Rotoiti since I was a<br />

boy so I've always had a special<br />

connection with this place.<br />

Now I've got the boat and the<br />

bach - it's the kiwi dream.<br />

your place<br />

Find your favourite place with us<br />

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NELSON | MARLBOROUGH | WANAKA | ARROWTOWN | QUEENSTOWN


10 BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

Founders re-acquire<br />

downhill ball rolling<br />

company Zorb<br />

The journey begun by the founders <strong>of</strong><br />

Rotorua downhill ball rolling venture Zorb<br />

has come full circle, with the founders<br />

recently buying back the company they<br />

launched 25 years ago.<br />

By DAVID PORTER<br />

Andrew Akers and his<br />

brother David reached<br />

an agreement earlier<br />

this year with owners <strong>of</strong> Zorb.<br />

They have now amalgamated<br />

Zorb with OGO (Outdoor<br />

Gravity Orb), the downhill<br />

ball rolling company the<br />

Akers set up in 2010, four<br />

years after they left Zorb.<br />

“We’re looking forward<br />

to clearing up any confusion<br />

in the marketplace,” said<br />

Andrew Akers.<br />

The original idea for the<br />

invention, by Andrew Akers<br />

and Dwane van der Sluis,<br />

came from wanting to walk<br />

on water. They created the<br />

double skinned inflatable<br />

sphere with no previous experience<br />

or knowledge - they<br />

used plastic and glue, starting<br />

from scratch to continually<br />

improve the ball.<br />

However, the problem was<br />

the finished sphere couldn’t<br />

be controlled on water, so<br />

they started rolling people<br />

down hills instead. The<br />

sphere was initially called<br />

The Orb, then NZorb, finally<br />

settling on “Zorb”, with trading<br />

beginning in 1995.<br />

Global franchise network<br />

Bringing on board two<br />

investors, Zorb Limited was<br />

created, and the team commercialised<br />

downhill ball rolling,<br />

later setting up their own<br />

franchise network around the<br />

globe.<br />

In 1999, van der Sluis<br />

left the company to return<br />

to his career as a s<strong>of</strong>tware<br />

engineer, while Andrew continued<br />

to run the company.<br />

But unhappy with Zorb’s<br />

direction once pr<strong>of</strong>essional<br />

investors became involved,<br />

Andrew and his brother left<br />

We’re looking forward to clearing up<br />

any confusion in the marketplace.”<br />

- Andrew Akers<br />

the company.<br />

“As happens reasonably<br />

<strong>of</strong>ten, entrepreneurs end up<br />

not quite seeing eye-to-eye<br />

with the more corporate-oriented<br />

board members,” Akers<br />

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

<strong>News</strong>.<br />

“That’s exactly what happened<br />

with us. And because<br />

I started the business when<br />

I was quite young, having<br />

senior business people get<br />

involved, I thought maybe<br />

they were right and I didn’t<br />

really know what I was<br />

talking about.<br />

“I thought if I have this<br />

level <strong>of</strong> disagreement, there’s<br />

no point in carrying on. I<br />

wasn’t having a lot <strong>of</strong> fun.<br />

I sold out and really didn’t<br />

intend to get back into it.”<br />

Akers has always loved<br />

creating something that<br />

no-one else has considered.<br />

For example, he and his<br />

brother developed a range <strong>of</strong><br />

games, including one picked<br />

up by Hasbro USA, which<br />

featured on the Ellen DeGeneres<br />

show.<br />

After exploring other<br />

ventures, he and his brother<br />

decided they wanted to get<br />

back together and redevelop<br />

the downhill ball concept<br />

under their own terms.<br />

They did well with OGO<br />

and became in a position to<br />

approach Zorb’s owners and<br />

buy the company back.<br />

Akers said he had been<br />

talking with Zorb’s owners<br />

about potentially reacquiring<br />

the business over the past<br />

Andrew Akers: make your job the most fun thing you can do. Photo/Supplied.<br />

five years, and had a good<br />

relationship with a key shareholder,<br />

so were eventually<br />

able to work out a deal.<br />

The Zorb site has been<br />

closed and operations consolidated<br />

on the OGO site, and<br />

the company plans to focus<br />

on the Zorb brand.<br />

“We have purchased the<br />

entirety <strong>of</strong> the Zorb group<br />

<strong>of</strong> companies including all<br />

patents, international trademarks,<br />

assets and opportunities,”<br />

said Akers.<br />

He said the addition <strong>of</strong><br />

Zorb to OGO would allow the<br />

business to reinvest further in<br />

the infrastructure <strong>of</strong> the OGO<br />

site, enhance the customer<br />

experience and cement the<br />

site as the premier ball-rolling<br />

park in the world.<br />

They make 30 or so balls a<br />

year, about half are exported<br />

to the US, Japan and other<br />

sites, the balance used for<br />

replacements at the Rotorua<br />

site. Each ball lasts around a<br />

year or so, but with general<br />

wear and tear, scratches and<br />

UV light, they slowly deteriorate.<br />

“They are all recycled and<br />

made into playground equipment,”<br />

said Akers, who added<br />

the company would be making<br />

a big push over the next<br />

five years on sustainability.<br />

Akers said he was excited<br />

about the fact he and David<br />

were reunited with the brand<br />

they created.<br />

“In a strange way, the Zorb<br />

brand has always remained<br />

with me and despite being in<br />

competition since we left the<br />

business and launched OGO,<br />

I’ve always been attached<br />

to what we created all those<br />

years ago.”<br />

And what had been especially<br />

gratifying, he said,<br />

was that OGO had just won<br />

the Tourism Export Council<br />

(TEC) Small <strong>Business</strong> Operator<br />

<strong>of</strong> the Year Award.<br />

Akers said the journey<br />

with his invention has taught<br />

some life lessons.<br />

“Have passion for what<br />

you do, enjoy every element<br />

<strong>of</strong> what you do, make your<br />

job into the most fun thing<br />

you can do and have the courage<br />

<strong>of</strong> your convictions.”<br />

TEC Small <strong>Business</strong> Operator <strong>of</strong><br />

the Year Award. Photo/Supplied.<br />

Zorb: Downhill ball rolling business reacquired. Photo/Supplied.


BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

11<br />

New training centre for Kawerau<br />

Kawerau has opened a new driver and<br />

operator training centre for the Eastern<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, which aims to address the<br />

driver and other logistics skills shortages<br />

experienced in the area.<br />

Toi EDA chair David<br />

Turner cut the ribbon,<br />

and the Reverend Graham<br />

Te Rire announced the<br />

name <strong>of</strong> the new facility, Te<br />

Ara Huringa ō Pupuwharau at<br />

the recent <strong>of</strong>ficial opening.<br />

“Toi EDA and local industry<br />

have long realised that<br />

workforce availability and<br />

transportation are key constraints<br />

to Eastern <strong>Bay</strong> economic<br />

growth,” saidTurner.<br />

“So we’ve got stuck in<br />

alongside industry and training<br />

providers to create a facility<br />

in Kawerau to serve wider<br />

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

keen to upskill or work as<br />

drivers, machine operators and<br />

logistics personnel.”<br />

Turner said Toi EDA had<br />

been working closely with<br />

central government to make<br />

the new centre a reality and<br />

was delighted with the support<br />

<strong>of</strong> the Ministry <strong>of</strong> <strong>Business</strong>,<br />

Innovation and Employment,<br />

through both Te Ara Mahi and<br />

He Poutama Rangatahi funds.<br />

“This has also been an<br />

incredible collaborative effort<br />

and I’d really like to thank the<br />

work <strong>of</strong> the team at Toi EDA, in<br />

particular Barbara MacLennan<br />

and John Galbraith who have<br />

both worked incredibly hard to<br />

reach this milestone.<br />

“I’d also like to acknowledge<br />

our training partners and<br />

Kawerau’s Pathway to Work<br />

partners. It really has been a<br />

team effort,” said Turner.<br />

Toi EDA’s workforce development<br />

manager, Barbara<br />

MacLennan has been a key<br />

driver towards the opening <strong>of</strong><br />

the facility.<br />

Through the<br />

training, new<br />

cadetships,<br />

and mentoring<br />

programmes,<br />

we are helping<br />

enable workforce<br />

development.”<br />

- David Turner<br />

“The facility is right in the<br />

heart <strong>of</strong> Kawerau’s industrial<br />

area, where growth is already<br />

well underway,” she said.<br />

Partnering with<br />

three providers<br />

Filling a gap: David Turner opens the new<br />

Kawerau training centre. Photo/Supplied<br />

Toi EDA has partnered with<br />

three training providers, Toi<br />

Ohomai, Axiom Training and<br />

Vertical Horizonz to start with,<br />

and together they are co-ordinating<br />

a wide range <strong>of</strong> training<br />

at the facility that matches<br />

what industry and businesses<br />

are looking for.<br />

Programmes commenced in<br />

August and included training<br />

for drivers, machine operators,<br />

confined space, and a range<br />

<strong>of</strong> mobile equipment operators<br />

required in construction,<br />

agricultural and horticultural<br />

contracting work, said<br />

MacLennan.<br />

Toi EDA research has been<br />

looking into the Eastern <strong>Bay</strong>’s<br />

detailed needs across businesses<br />

and industry and provides<br />

clear insight into current and<br />

future training needs, added<br />

Turner.<br />

There was a huge shortage,<br />

particularly <strong>of</strong> drivers and<br />

business saw that shortage getting<br />

worse in the coming two<br />

to five years.<br />

A recent survey by the <strong>Bay</strong><br />

<strong>of</strong> Connections Freight and<br />

Logistics Group indicated that<br />

an additional 300-400 more<br />

drivers and mobile plant operators<br />

would be needed in the<br />

next two to five years.<br />

“This facility is a way to<br />

help address that gap,” said<br />

Turner.<br />

“Through the training, new<br />

cadetships, and mentoring programmes,<br />

we are helping enable<br />

workforce development. Te Ara<br />

Huringao ō Pupuwharau will<br />

create new opportunities for<br />

Eastern BoP people, and especially<br />

rangatahi, to step into current<br />

and emerging new roles.”<br />

<strong>Business</strong> Defined Technology<br />

Our purpose is simply to help businesses achieve more. We want to focus on you, the client. The<br />

conversations should be about you, your pain points, where you are going and how we can work<br />

with you to improve your business<br />

50+<br />

Team Members<br />

Certifications<br />

100+<br />

Productivity<br />

Licences Managed<br />

3400+<br />

Technical Issues<br />

Solved<br />

2018<br />

15,925<br />

<strong>Business</strong> Outcomes<br />

Achieved<br />

2018<br />

10,358<br />

Contact Selwyn to discuss how Yorb can help your business<br />

selwyn.west@yorb.tech<br />

www.yorb.tech | info@yorb.tech<br />

Manawatu<br />

Whanganui<br />

Hawke’s <strong>Bay</strong><br />

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


12 BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

Trustpower <strong>Bay</strong>park – <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong>’s Entertainment Hub<br />

As the temperature heats up for Spring, so<br />

does the excitement surrounding events at<br />

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

Dr Libby Weaver (PhD) is<br />

coming to Tauranga on<br />

24 <strong>September</strong> and will<br />

be speaking on “Getting to the<br />

heart <strong>of</strong> stress”. She is one <strong>of</strong><br />

Australasia’s leading nutritional<br />

biochemists, an author,<br />

a speaker and founder <strong>of</strong> the<br />

plant-based supplement range,<br />

Bio Blends.<br />

Armed with an abundance<br />

<strong>of</strong> knowledge, scientific<br />

research and a true desire to<br />

help people regain their energy<br />

and vitality, Dr Libby empowers<br />

and inspires people to take<br />

charge <strong>of</strong> their health and happiness<br />

through her books, live<br />

events and nutritional support<br />

range.<br />

The <strong>2019</strong> Tarnished Frocks<br />

and Divas show - Xanthia - will<br />

See Annabel Langbein at the<br />

Home Show. Photo/Supplied.<br />

exude an otherworldly presence<br />

in an intimate style 25 –<br />

28 <strong>September</strong>.<br />

Remembering the past, but<br />

looking to the future, the audience<br />

and cast alike can expect<br />

to be transformed through the<br />

Tarnished Divas’ world and<br />

culture, which celebrates the<br />

essence <strong>of</strong> women’s individuality,<br />

uniqueness and creativity.<br />

The storyline follows the<br />

transformation <strong>of</strong> relatable<br />

characters through their emotions,<br />

their creative growth,<br />

their passion and joy, seeing<br />

them gain the power within and<br />

become larger than life.<br />

A visual extravaganza and<br />

dramatically breathtaking feast<br />

for the eyes that is quite simply<br />

out <strong>of</strong> this world - and all<br />

performed by talented women<br />

over 40.<br />

Saturday, 5 <strong>October</strong> from<br />

10am – 3pm House <strong>of</strong> Travel<br />

presents the <strong>Bay</strong>’s Biggest<br />

Ever Travel Bazaar.<br />

Airlines, Destinations,<br />

Coach Touring companies,<br />

Cruise lines, and all things<br />

travel come together to give<br />

you the widest range <strong>of</strong> travel<br />

inspiration all in one place.<br />

Come and meet the people<br />

behind the brochures, and discuss<br />

in depth your ideas for<br />

travel in 2020 or beyond.<br />

With many exclusive discounts<br />

available only to those<br />

who attend this Travel Bazaar,<br />

it’s an exciting event to fill you<br />

with inspiration, and <strong>of</strong>fering<br />

the very best advice for your<br />

next journey.<br />

By Popular Demand NZ<br />

Medium Kelvin Cruickshank is<br />

coming on Saturday 5 <strong>October</strong>.<br />

Passing on messages from people<br />

who have died and are in<br />

spirit is what Kelvin was put on<br />

earth to do.<br />

However, since the incredible<br />

success <strong>of</strong> Sensing Murder<br />

there’s been such a great<br />

demand from people wanting<br />

private readings that is just not<br />

physically possible for him to<br />

do them anymore.<br />

The best way for Kelvin to<br />

be able to put people in touch<br />

with the loved ones they’ve<br />

lost is through his live shows,<br />

Kelvin Cruickshank Live.<br />

When you come to his live<br />

shows, please come with an<br />

open heart and an open mind.<br />

Rocking on<br />

A Decade <strong>of</strong> Devilskin.<br />

Photo/Supplied.<br />

The ROCK proudly present<br />

Onward – A Decade <strong>of</strong><br />

Devilskin on 18 <strong>October</strong>.<br />

From humble beginnings<br />

in the Waikato to gracing<br />

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

all over the world, Devilskin<br />

is thrilled to celebrate the<br />

group’s tenth birthday milestone<br />

with a comprehensive<br />

New Zealand tour.<br />

Kiwi band Like A Storm<br />

will be special guests, alongside<br />

opening act Black Smoke<br />

Trigger from Napier.<br />

Devilskin have garnered a<br />

formidable reputation and a<br />

solid fan base worldwide from<br />

their incessant touring.<br />

A swathe <strong>of</strong> brilliant live<br />

reviews from Norway to<br />

Australia is testament to the<br />

groundswell <strong>of</strong> support for<br />

this hard-working act.<br />

BOP Home Show - The<br />

Spring Home Show is now the<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> Home Show.<br />

The renamed <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> Home Show returns<br />

to Trustpower Arena <strong>Bay</strong>park<br />

on the 18th, 19th and 20th <strong>of</strong><br />

<strong>October</strong> <strong>2019</strong>, celebrating 10<br />

years <strong>of</strong> building dreams in<br />

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

The huge 10th anniversary<br />

show will be bigger and more<br />

inspirational than ever before.<br />

Browse, compare and draw<br />

inspiration from more than<br />

200 exhibitors, from top <strong>of</strong> the<br />

line to budget conscious.<br />

Take advantage <strong>of</strong> exclusive<br />

show specials and giveaways<br />

that you won’t find<br />

anywhere else.<br />

Gather the whole family for<br />

a fun day out, including entertainment<br />

for children, huge<br />

door prizes, places to grab<br />

lunch, and plenty more.<br />

Not just a show – a celebration<br />

<strong>of</strong> living in the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong>. Save time, save money<br />

and find exactly what you need<br />

at the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> Home<br />

Show.<br />

Kids for Kids are really<br />

excited to be bringing<br />

you a new show jam-packed<br />

with 100 percent Kiwi-loved<br />

songs, fronted by iconic Kiwi<br />

entertainer Jackie Clarke and<br />

musician Nathan King on 24<br />

<strong>October</strong>.<br />

This year’s Kids for Kids is<br />

all about celebrating Aotearoa’s<br />

Big Aroha, seeing young people<br />

come together to celebrate<br />

some <strong>of</strong> the best <strong>of</strong> Kiwi music<br />

and participate in a mass choir<br />

performance.<br />

In 18 shows around the<br />

nation, nearly 10,000 young<br />

New Zealanders have a chance<br />

to take to the stage and use<br />

their voice for good.<br />

The Kids for Kids concert<br />

series is celebrating its 25th<br />

year and through the power<br />

<strong>of</strong> music and community has<br />

brought more than 290,000<br />

children together.<br />

HoopNation is NZ’s premier<br />

basketball event each<br />

Labour Weekend. Attracting<br />

the hottest teams and players<br />

for NZ, it’s a must for players<br />

and fans.<br />

The artistry, the athleticism,<br />

the challenge, the drama <strong>of</strong><br />

what unfolds, the sportsmanship,<br />

celebrating victory in<br />

humility and defeat with grace<br />

is why we love the game and<br />

the people who play.<br />

It is the players that make<br />

HoopNation the great spectacle<br />

that it is for players and fans<br />

alike.<br />

Whether players play for<br />

the exhilaration <strong>of</strong> competing<br />

against the best, or for players<br />

who play for the social<br />

aspects <strong>of</strong> balling with friends<br />

over a jam-packed weekend,<br />

HoopNation has everything<br />

players need and what fans<br />

just love.<br />

For more information on any<br />

events, inquiries for <strong>Bay</strong>park<br />

venues, <strong>Bay</strong>Station activities<br />

or service on/<strong>of</strong>f site from<br />

<strong>Bay</strong>Catering, <strong>Bay</strong>AudioVisual<br />

visit www.trustpowerbaypark.<br />

co.nz, email events@bayvenues.co.nz<br />

or call 07 577<br />

8560.<br />

STV IS<br />

AS EASY AS<br />

1, 2, 3<br />

This year, Tauranga City Council elections<br />

are using the Single Transferable Vote system.<br />

Instead <strong>of</strong> a big tick on your form,<br />

simply rank your preferred candidates<br />

– it’s as easy as 1, 2, 3!<br />

IF YOU LIVE FOR IT,<br />

VOTE FOR IT<br />

VISIT tauranga.govt.nz for more info<br />

WAVE25206 STV BBN


BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

13<br />

Why backup, disaster recovery and<br />

business continuity are important<br />

Backup, disaster recovery and business continuity. These terms<br />

are <strong>of</strong>ten used interchangeably in the technology sphere, though<br />

they all have different meanings. All three terms are about risk<br />

and risk mitigation. Understanding your business and what level<br />

<strong>of</strong> risk you are prepared to accept will help you decide the most<br />

appropriate level <strong>of</strong> protection.<br />

TECH TALK<br />

> BY DANIEL GOYMER<br />

Technical Director <strong>of</strong> Yorb, a <strong>Business</strong> Technology Partner. He can<br />

be reached on Daniel.goymer@yorb.tech or 0800-600-606.<br />

Backup<br />

We all know we should backup<br />

our data. Whether it’s your holiday<br />

snaps, school assignments<br />

or financial systems, get them<br />

backed up.<br />

The risk to your data comes<br />

from hundreds <strong>of</strong> sources such<br />

as data corruption, hardware<br />

failure, cybersecurity incident,<br />

malicious staff, accidental<br />

deletion to name a few.<br />

Deciding on which s<strong>of</strong>tware<br />

or method to back your<br />

data up on depends on the type<br />

<strong>of</strong> data you have.<br />

Key Backup Considerations<br />

Frequency: How <strong>of</strong>ten do you<br />

need to backup? For critical<br />

data that changes frequently<br />

you may need to backup every<br />

15 minutes. For some other<br />

data, daily, weekly or even<br />

monthly might suffice.<br />

Location: Where is your<br />

backup? If you have a building<br />

fire, having the backup stored<br />

onsite is no help. Always have<br />

a copy <strong>of</strong> your data <strong>of</strong>fsite at a<br />

remote location.<br />

Retention: How long do<br />

you need to store your backups?<br />

Consideration should be<br />

given to your own requirements<br />

as well as any potential<br />

legal compliance.<br />

Disaster Recovery<br />

Disaster Recovery is not only<br />

about backup, it’s about understanding<br />

under what circumstances<br />

your business might<br />

be interrupted and planning<br />

accordingly.<br />

If all your data is lost due<br />

to a cybercriminal or hardware<br />

failure, how long would it take<br />

to recover? What hardware<br />

would you recover onto?<br />

Also consider other events<br />

such as an Internet outage, or<br />

core equipment failure.<br />

Consider the three or four<br />

most likely scenarios and<br />

develop a recovery plan for<br />

each.<br />

By understanding what circumstances<br />

could disrupt your<br />

business you plan for these and<br />

make effective risk management<br />

decisions.<br />

Key Disaster Recovery<br />

Considerations<br />

Recovery Point Objective<br />

(RPO): What is the maximum<br />

age <strong>of</strong> files that you can restore<br />

to resume normal business<br />

operations. i.e. if your latest<br />

backup was a week old, is that<br />

too old?<br />

Recovery Time Objective<br />

(RTO): What is the maximum<br />

time you can sustain the business<br />

to be down while your<br />

systems are being recovered?<br />

<strong>Business</strong> Continuity<br />

How do you prevent your business<br />

being impacted at all?<br />

<strong>Business</strong> Continuity looks<br />

at putting systems and processes<br />

in place that would<br />

allow your business to continue<br />

uninterrupted even when<br />

a failure occurs.<br />

As an example, with the<br />

prevalent use <strong>of</strong> online Cloudbased<br />

technologies, Internet<br />

access has become a key <strong>Business</strong><br />

Continuity discussion.<br />

If an Internet outage would<br />

severely impact your business,<br />

look at redundant firewalls and<br />

dual Internet feeds.<br />

Keeping your business running<br />

is what’s important.<br />

Backup, disaster recovery<br />

and business continuity work<br />

together to keep your business<br />

running at a functional level in<br />

the event <strong>of</strong> a disaster.<br />

With a simple backup or<br />

disaster recovery solution your<br />

return to operations could be<br />

measured in weeks or days.<br />

As you progress towards<br />

business continuity, that time<br />

should reduce to minutes or<br />

seconds.<br />

Understand your businesses<br />

data and operations in order to<br />

implement a complete and effective<br />

business continuity plan.<br />

OjiFS releases Sustainability Report<br />

Oji Fibre Solutions<br />

(OjiFS), one <strong>of</strong> Australasia’s<br />

leading producers<br />

<strong>of</strong> pulp, paper and fibrebased<br />

packaging, has released<br />

its latest Sustainability Report.<br />

OjiFS is a major exporter<br />

through the Port <strong>of</strong> Tauranga,<br />

which recently renewed its<br />

10-year operating agreement<br />

with the company.<br />

The report is focused on<br />

how the company it is optimising<br />

operations for a more sustainable<br />

future in the circular<br />

economy.<br />

Recently, $63 million was<br />

invested in transforming the<br />

Tasman Mill; increasing production<br />

<strong>of</strong> unbleached speciality<br />

pulp products to safeguard<br />

the future <strong>of</strong> the mill<br />

and deliver safety and environmental<br />

benefits, including<br />

significant greenhouse gas<br />

reductions.<br />

Dr Jon Ryder: Optimistic<br />

about opportunities for<br />

renewable cellulose-based<br />

products. Photo/Supplied.<br />

OjiFS is set to complement<br />

this with Project Waikato,<br />

another large-scale initiative<br />

to improve and future-pro<strong>of</strong><br />

These projects signal our owners’<br />

support to invest in operations in the<br />

region, which allows us to continue<br />

to create long-term value and have a<br />

positive impact on the future <strong>of</strong> the<br />

company, the environment and our<br />

communities.” - Dr Jon Ryder<br />

wastewater treatment systems<br />

at its Kinleith Mill.<br />

OjiFS chief executive, Dr<br />

Jon Ryder, said:“Both <strong>of</strong> these<br />

projects signal our owners’<br />

support to invest in operations<br />

in the region, which allows<br />

us to continue to create longterm<br />

value and have a positive<br />

impact on the future <strong>of</strong> the<br />

company, the environment and<br />

our communities.”<br />

Other Sustainability Report<br />

highlights are expanded operations<br />

in Australia, including a<br />

new state-<strong>of</strong>-the-art packaging<br />

facility in Yatala, and additional<br />

distribution centres on the East<br />

Coast, set to support growth in<br />

the horticultural and agricultural<br />

sectors in Australia.<br />

This is the fourth Sustainability<br />

Report since Oji Holdings<br />

Corporation purchased<br />

the business in 2014.<br />

The report notes that competitive<br />

pressure across the<br />

pulp, paper and fibre packaging<br />

industry globally have<br />

intensified following changes<br />

to China’s domestic waste<br />

management policy and volatility<br />

in trade terms between<br />

China and the US.<br />

Despite the challenges, the<br />

company is optimistic about<br />

future opportunities for cellulose-based<br />

products.<br />

Natural renewable products<br />

that are low in carbon are growing<br />

in favour at a time when<br />

consumers are increasing their<br />

scrutiny <strong>of</strong> raw material inputs<br />

and seeking sustainable packaging<br />

solutions, says OjiFS.<br />

By DAVID PORTER<br />

DON’T DEMOLISH your old house<br />

RELOCATE and give it another life!<br />

0800 572 3771<br />

www.relocatablehouses.co.nz<br />

Ask<br />

us how!<br />

Be part <strong>of</strong> the housing solution<br />

rather than the problem.<br />

Don’t pay for demolition, make cash.<br />

Keep your house out <strong>of</strong> landfill.


14 BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

Scientists<br />

team up for<br />

war on<br />

stink bug<br />

Kiwi and Italian scientists are working<br />

on ways to stop the brown marmorated<br />

stink bug (BMSB) rampage through one<br />

<strong>of</strong> Europe’s major fruit bowls.<br />

By RICHARD RENNIE<br />

Fruit damage caused by the brown<br />

marmorated stink bug (BMSB).<br />

Meanwhile, a Summer<br />

campaign to raise public<br />

awareness in New<br />

Zealand is ramping up.<br />

Pr<strong>of</strong>essor Max Suckling,<br />

Plant and Food Research, and<br />

an Auckland University senior<br />

scientist, has spent this summer<br />

working alongside his Italian<br />

peers in Trento, northern<br />

Italy helping better understand<br />

how to control the BMSB,<br />

which has already decimated<br />

that country’s Eu300 million<br />

pear industry.<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> based-Kiwifruit<br />

Vine Health (KVH) has<br />

been at the sharp end <strong>of</strong> a joint<br />

awareness campaign benefiting<br />

from horticulture’s Government-Industry<br />

Agreement.<br />

This was designed to get better<br />

alignment between government<br />

and the sector over dealing<br />

with biosecurity risks.<br />

KVH communications<br />

advisor Lisa Gibbison said the<br />

campaign has also worked as<br />

closely with those in the shipping<br />

and logistics sector, as it<br />

has increasing wider public<br />

understanding <strong>of</strong> the bug’s<br />

possible impact on New Zealand’s<br />

$5.5 billion horticultural<br />

export sector.<br />

Pr<strong>of</strong>essors Claudio Ioriatti and Max Suckling: Collaborating<br />

on major threat. Photos/Richard Rennie<br />

Last season’s campaign<br />

generated a healthy 930 calls<br />

on the 0800 number from public<br />

concerned they had identified<br />

a BMSB - double the year<br />

before. There were also over 6<br />

million online impressions on<br />

the website.<br />

But for the scientists in Italy<br />

this Summer, the battle is more<br />

immediate and time-sensitive.<br />

Insect and biological control<br />

expert Pr<strong>of</strong>essor Claudio<br />

Ioriatti <strong>of</strong> Fondazione Edmund<br />

Mach visited New Zealand in<br />

June, and is working alongside<br />

Suckling.<br />

Ioriatti first identified the<br />

bug only three years ago, and<br />

within a year the first impact<br />

on crops was being noticed.<br />

Today the bug is poised to<br />

penetrate Trento’s 10,000 ha<br />

<strong>of</strong> apple orchards, which supply<br />

70 percent <strong>of</strong> Italy’s crop,<br />

and 15 percent <strong>of</strong> the European<br />

Union’s.<br />

The bug injects an enzyme<br />

into fruit before it is ripe, discolouring<br />

its flesh, causing it<br />

to fall early or making it unsalable.<br />

Up to 70 percent <strong>of</strong> kiwifruit<br />

on vines can be affected<br />

and spraying is proving less<br />

than 50 percent effective.<br />

Netting over orchards<br />

helps reduce numbers, but<br />

juvenile bugs are able to penetrate<br />

these. And even covered<br />

orchards require spraying.<br />

So far New Zealand has<br />

dodged any major incursions.<br />

But isolated detections <strong>of</strong> bugs<br />

have been made, putting biosecurity<br />

<strong>of</strong>ficials and orchardists<br />

on high alert.<br />

Last November a car-carrying<br />

ship was refused entry<br />

due to numbers <strong>of</strong> BMSBs<br />

being detected on board before<br />

berthing.<br />

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

<strong>Business</strong> <strong>News</strong> that the lessons<br />

learned from his work<br />

this summer for New Zealand<br />

from Italy are very real, and<br />

the bug’s impact is chilling.<br />

“We have learnt that BMSB<br />

is not limiting itself to fruit,”<br />

he said.<br />

“It is drawn to maize as<br />

soon as cobs start to tassel, and<br />

then crosses to mulberry trees,<br />

and onto soy beans too if they<br />

are there.”<br />

That highlighted how vulnerable<br />

regions with pastoral<br />

and horticultural production<br />

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

<strong>Bay</strong> and Nelson would be to it<br />

establishing here, he said.<br />

Pastoral and horticultural<br />

risks<br />

“This is definitely not just a<br />

horticultural risk for New Zealand<br />

- it’s a pastoral sector risk<br />

as well. So any approach in<br />

trying to deal with it involves<br />

a broad, area wide approach,<br />

well beyond any one crop or<br />

localised area.”<br />

He has had experience<br />

dealing with similar type outbreaks,<br />

managing the successful<br />

response to the painted<br />

apple moth outbreak in Auckland<br />

in 1999.<br />

More recently, he and his<br />

colleagues have used drones<br />

to drop sterilised male codling<br />

moths around Hawke’s <strong>Bay</strong><br />

to successfully reduce moth<br />

populations 10-fold on apple<br />

orchards there.<br />

Suckling’s work is also<br />

focusing upon trapping methods<br />

that may prove effective,<br />

including pheromone trapping<br />

and the relatively new trapping<br />

We have learnt<br />

that BMSB is not<br />

limiting itself to<br />

fruit.”<br />

- Max Suckling<br />

science <strong>of</strong> biotremology.<br />

This involves using synthesised<br />

insect mating calls transmitted<br />

as a vibration through<br />

orchards to draw insects <strong>of</strong> one<br />

sex to the false call, and into a<br />

trap.<br />

While it is early days yet,<br />

Suckling is optimistic about<br />

the technology and is hoping<br />

to gain Ministry <strong>of</strong> <strong>Business</strong><br />

Innovation and Employment<br />

funding to continue the<br />

research work started in Italy<br />

through the New Zealand<br />

summer.<br />

After a career spent<br />

researching and dealing to pest<br />

incursions, Suckling said he<br />

had a grudging respect for the<br />

BMSB.<br />

“I have seen a lot, and this<br />

is definitely one <strong>of</strong> the worst.<br />

It has such a broad and rapid<br />

impact on crops, and we need<br />

all the time we can get to try<br />

and deal with it.”


BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

15<br />

Jenkins Group takes<br />

50 percent stake in<br />

CR Automation<br />

Leading fresh fruit labelling and packing innovator Jenkins Group -<br />

which has a significant presence in the <strong>Bay</strong>’s horticulture sector - has<br />

taken a 50 percent stake in Hawkes <strong>Bay</strong>-based CR Automation (CRA),<br />

an award-winning automation and control systems manufacturer.<br />

By DAVID PORTER<br />

The two companies say<br />

they are coming together<br />

to deliver a range <strong>of</strong> automation<br />

services to post-harvest<br />

operators across Australasia<br />

who want to enhance efficiency,<br />

meet compliance needs<br />

and overcome labour shortages.<br />

Jenkins Group and CRA<br />

have collaborated on a number<br />

<strong>of</strong> projects in the past.<br />

Managing director <strong>of</strong><br />

Jenkins Group, Tony Sayle,<br />

said the combination <strong>of</strong> skills,<br />

products and services that the<br />

two organisations will now<br />

provide will be game-changing<br />

for the horticultural industry.<br />

Jenkins Group is a key<br />

industry player throughout<br />

Australasia’s horticulture<br />

post-harvest industry with<br />

subsidiaries in New Zealand<br />

and Australia (Tauranga-based<br />

Jenkins Freshpac Systems<br />

Ltd and NSW-based J-Tech<br />

Systems PTY).<br />

The group provides an<br />

extensive range <strong>of</strong> labelling,<br />

packaging and handling systems<br />

to the fruit and vegetable<br />

industry across both countries.<br />

“The Internet <strong>of</strong> Things<br />

(IoT) and automation are clear<br />

requirements for our horticulture<br />

sector to excel and thrive<br />

in a global economy and soar<br />

through its ambitious target <strong>of</strong><br />

being a $10 billion industry by<br />

2020,” said Sayle.<br />

“Jenkins Group Ltd has<br />

a long history <strong>of</strong> innovation<br />

and we have decided to invest<br />

in CRA to bring together our<br />

existing pack-line automation<br />

solutions with the cutting-edge<br />

integration and line management<br />

capability that CRA are<br />

renowned for delivering across<br />

Australasia and around the<br />

world.<br />

Labour and compliance<br />

challenges<br />

Sayle said the new partnership<br />

would provide industry-leading<br />

produce handling capability<br />

to a post-harvest industry<br />

screaming out for efficiencies<br />

and solutions to its labour supply<br />

woes and escalating compliance<br />

needs.<br />

Product security, authenticity<br />

and traceability are becoming<br />

vital elements <strong>of</strong> the supply<br />

chain, he said.<br />

“CR Automation are a<br />

world- class developer and provider<br />

<strong>of</strong> automation and control<br />

systems,” said Sayle.<br />

“We’re impressed by their<br />

engineering capacity, and our<br />

horticultural clients will certainly<br />

benefit from their services<br />

and products. Together we<br />

intend to lead the field across<br />

post-harvest produce handling,<br />

FMCG production automation<br />

and municipal asset monitoring.”<br />

CRA’s services encompass<br />

the food and beverage industry,<br />

water and wastewater, materials<br />

handling, cool storage, meat<br />

and wool processing and general<br />

manufacturing.<br />

Their capabilities range<br />

from machine safety through<br />

to electrical and s<strong>of</strong>tware engineering,<br />

industrial IT, robotics<br />

and project management.<br />

Earlier this year they won<br />

the “Most Innovative Solution”<br />

award for ABB robotics at<br />

Jenkins Group’s Tony Sayle (top) and CRA’s Peter Richards<br />

(above): Partnering to enhance efficiencies. Photos/Supplied.<br />

the ASIA Value Provider<br />

Conference <strong>2019</strong>.<br />

CRA managing director<br />

Peter Richards said the 18 yearold<br />

tech company had experienced<br />

exponential growth over<br />

the past three years and was<br />

looking for an equity partner<br />

who could help sustain that<br />

growth and ensure longevity.<br />

“We wanted a partner<br />

founded on similar ideals who<br />

could also provide market<br />

access beyond our existing client<br />

base,” said Richards.<br />

He noted that Jenkins<br />

Group was a family-owned<br />

company with 136 years <strong>of</strong><br />

success behind it.<br />

“They are very client-focused<br />

and trade with a high<br />

level <strong>of</strong> integrity.<br />

The Internet <strong>of</strong><br />

Things (IoT) and<br />

automation are clear<br />

requirements for our<br />

horticulture sector<br />

to excel and thrive<br />

in a global economy<br />

and soar through its<br />

ambitious target <strong>of</strong><br />

being a $10 billion<br />

industry by 2020.”<br />

- Tony Sayle<br />

We wanted a<br />

partner founded<br />

on similar ideals<br />

who could also<br />

provide market<br />

access beyond<br />

our existing client<br />

base.”<br />

- Peter Richards<br />

“Jenkins are across the<br />

industry challenges and want to<br />

provide solutions by extending<br />

their service <strong>of</strong>fering, so CR<br />

Automation will be delighted<br />

to help them do just that.<br />

“We’re excited about what<br />

the future holds as the potential<br />

<strong>of</strong> both companies is realised<br />

through this new equity partnership.”<br />

Cloud giants The Instillery<br />

and Origin merge<br />

Leading cloud company The Instillery<br />

and nationally renowned managed IT and<br />

security services provider Origin have<br />

agreed to merge.<br />

By DAVID PORTER<br />

The Instillery established<br />

a presence in the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> and the Waikato<br />

last year. The merger with<br />

Origin was aimed at creating<br />

a unique, future-focused provider<br />

<strong>of</strong> cloud, automation,<br />

connectivity and security<br />

pr<strong>of</strong>essional and managed<br />

services for Kiwi midmarket,<br />

enterprise, local and central<br />

government organisations, the<br />

companies said.<br />

The combined organisation<br />

will retain The Instillery<br />

brand, with 200 staff across<br />

the country, is was expected to<br />

deliver more than $40 million<br />

in revenue.<br />

Mike Jenkins, chief executive<br />

<strong>of</strong>ficer and founder <strong>of</strong><br />

The Instillery, will continue to<br />

lead the newly formed company.<br />

Origin’s chief executive<br />

<strong>of</strong>ficer and founder Michael<br />

Russell will join the executive<br />

team <strong>of</strong> The Instillery as chief<br />

sales <strong>of</strong>ficer.<br />

The company founders said<br />

the merger represented one<br />

<strong>of</strong> the most significant M&A<br />

events for the kiwi tech sector<br />

in a decade and would establish<br />

The Instillery as a genuine<br />

Tier 1 ICT provider.<br />

The merger was a statement<br />

<strong>of</strong> intent to lead in the<br />

cloud revolution, which had<br />

well-documented benefits <strong>of</strong><br />

cloud technologies, while also<br />

ensuring the security and protection<br />

<strong>of</strong> critical data, said<br />

Jenkins.<br />

Disruption and<br />

opportunities<br />

Emerging technologies led by<br />

cloud and automation continued<br />

to disrupt and create new<br />

opportunities, he said.<br />

“The tech sector here has<br />

been screaming for change and<br />

a genuine alternative option to<br />

partner with. Trust and confidence<br />

- information security<br />

- have never been more critical<br />

to our clients as they embark<br />

on their cloud journey.”<br />

The Instillery and Origin<br />

both come from humble<br />

beginnings. The Instillery<br />

was founded by Jenkins six<br />

years ago, from a co-working<br />

space in Parnell. Jenkins grew<br />

up in the Computerland era<br />

and honed his skills through<br />

a 14-year career working for<br />

Logical, IBM and Cisco on<br />

both sides <strong>of</strong> the Tasman.<br />

The Instillery merged with<br />

Vo2 in July last year, which<br />

brought in extensive Modern<br />

Workplace, managed services<br />

and support capability. The<br />

Instillery is known for its public<br />

cloud and DevOps capability.<br />

Origin was established in<br />

a West Auckland garage 20<br />

years ago. The company has<br />

brought further depth to The<br />

Instillery stable with its managed<br />

services, private cloud<br />

and network experience. In<br />

recent years Origin has built<br />

one <strong>of</strong> New Zealand’s largest<br />

cybersecurity practices, providing<br />

a fully managed threat<br />

prevention, detection and<br />

response service to enterprise<br />

businesses.<br />

Origin also has recent<br />

M&A experience following its<br />

Trust and<br />

confidence -<br />

information<br />

security - have<br />

never been more<br />

critical to our<br />

clients as they<br />

embark on their<br />

cloud journey.”<br />

- Mike Jenkins<br />

acquisition <strong>of</strong> Optinet in 2015.<br />

Jenkins said the merger<br />

meant the company could<br />

focus on growing in the right<br />

area.<br />

“The merger is an exciting<br />

opportunity to take another<br />

step towards where our customers<br />

need us to be with the<br />

growth <strong>of</strong> cloud, leveraging<br />

the unrivalled experience The<br />

Instillery has in this area.”<br />

Kotahi’s head <strong>of</strong> operation<br />

excellence Wayne Bloem said<br />

that, as an Origin customer, he<br />

was excited about the merger.<br />

“The two companies combined<br />

will provide Kotahi with<br />

a key strategic partner that can<br />

not only support its environments<br />

and protect it through its<br />

security practices, but they can<br />

also now further challenge us<br />

on our cloud journey,” he said.<br />

“We look for partners<br />

that can push us and drive us<br />

beyond our current capabilities.<br />

And with this merger, we<br />

now will have a partner that<br />

has a global reach in this space<br />

and can further drive Kotahi’s<br />

cloud priorities.”<br />

According to Jenkins, most<br />

enterprises today utilised a<br />

hybrid, multi-cloud approach.<br />

“Origin’s strength in security,<br />

network design and optimisation,<br />

combined with our<br />

agnostic approach to cloud,<br />

means that customers will get<br />

the proven formula, tailored<br />

for their business, irrespective<br />

<strong>of</strong> where they are on their<br />

cloud journey.”<br />

Hamish Archer, GM<br />

Technology - TSB, said The<br />

Instillery had worked with<br />

TSB from the start <strong>of</strong> its cloud<br />

journey, helping build its first<br />

Mike Jenkins and Michael Russell: merging<br />

to build cloud operations. Photo/Supplied<br />

production systems, then automating<br />

their deployment.<br />

“Keeping security in front<br />

<strong>of</strong> mind and having local skills<br />

is very important to us and has<br />

been a key part <strong>of</strong> the engagement<br />

with The Instillery,” said<br />

Archer. “The access to further<br />

depth and capability through<br />

the merger with Origin opens<br />

up further opportunities to<br />

grow what we do together.”<br />

Jenkins said the newly<br />

formed company would<br />

address largely unmet demand<br />

in the enterprise arena.<br />

“We know that large businesses,<br />

including enterprise,<br />

local government and central<br />

government agencies,<br />

are looking for a fresh, agile<br />

approach that allows them to<br />

move faster. ‘<br />

“We’re excited about the<br />

immediate opportunity to scale<br />

to up to help more businesses<br />

innovate and realise the<br />

well-documented benefits <strong>of</strong><br />

cloud.”<br />

The new company will<br />

have <strong>of</strong>fices in Auckland,<br />

Hamilton, Tauranga, New<br />

Plymouth, Palmerston North,<br />

Napier, Wellington and<br />

Christchurch. The Instillery<br />

also delivers services for several<br />

Trans-Tasman and global<br />

clients and is eyeing expansion<br />

into Australia in the near<br />

future.


To Tauranga City (8mins)<br />

H&M<br />

Hastings Road<br />

Farmers<br />

Capstan Cl<br />

Conniston Way<br />

Petariki Way<br />

Kissling Terrace<br />

Aquinas<br />

Co lege<br />

Greerton (5mins)<br />

Joyce Road<br />

Pyes Pa Road<br />

Rotorua<br />

Four 14<br />

Cafe<br />

ACG<br />

School<br />

Pyes Pa Road<br />

Pakanga Grove<br />

Pakanga Grove<br />

Kihona Rise<br />

Hoani Lane<br />

Te Ranga Memorial Drive<br />

Whakaturou Crescent<br />

Kamokore Glade<br />

Whakaturou Crescent<br />

Omapere Lane<br />

Applin Lane<br />

Cycleway to CBD<br />

Bridgewater Way<br />

Fremont Way<br />

Bridgewater<br />

Village<br />

Barometer Way<br />

Cycleway / walkway link<br />

to Pyes Pa Road via<br />

Freeburn Road & Bradley Ave<br />

Bracken Mews<br />

Taumata<br />

School<br />

Kennedy Road North<br />

Benmore Crescent<br />

Te Ranga Memorial Drive<br />

Penetaka Heights<br />

Rotomanu Place<br />

Kahuparere Crescent<br />

Te Ataiti Lane<br />

Matepu Crescent<br />

Kahuparere Crescent<br />

Te Ranga Memorial Drive<br />

Penetaka Heights<br />

Puhirake Crescent<br />

Materawaho Way<br />

Penetaka Heights<br />

Puhirake Crescent<br />

Puhirake Crescent<br />

Okataina Street<br />

Huria Vista<br />

Kiritiana Close<br />

Manotini Way<br />

Tamihana Avenue<br />

Te Ranga Memorial Drive<br />

Future road link to Keenan Road<br />

Materawaho Way<br />

Mount Beaches (15mins)<br />

Lanyard St<br />

Askew Lane<br />

North <strong>Bay</strong> Rd<br />

Tuaia Street<br />

Paimarire Lane<br />

BP<br />

Bulkhead Lane<br />

Lake Taurikura<br />

Penetaka Heights<br />

Tauriko Crossing Shopping Centre<br />

Caslani Lane<br />

Rochfort Crescent<br />

Boulder Lane<br />

Shopping<br />

Village<br />

El esmere Cl<br />

Lakes Boulevard<br />

Kopurererua Stream<br />

Whiore Ave<br />

Farmlands<br />

Taurikura Drive<br />

Gilmours<br />

Lakes Boulevard<br />

Awataha Crescent<br />

Nikorima Mews<br />

Porutu Place<br />

Whakakake Street<br />

Poturi Street<br />

Hotuhotu Street<br />

Matarawa Place<br />

Whango Place<br />

Foley Grove<br />

Paraone Koikoi Road<br />

Matakokiri Drive<br />

Awataha Crescent<br />

Paiawa Way<br />

Paerangi Place


CONFERENCES, EVENTS & VENUES<br />

Add some Middle-earth movie magic to<br />

your corporate Christmas party<br />

Looking for a unique and memorable experience to treat your staff<br />

and reflect on the year that has been? Hobbiton Movie Set <strong>of</strong>fer<br />

a range <strong>of</strong> special events and private function options ideal for<br />

groups <strong>of</strong> all sizes, all in the picturesque setting <strong>of</strong> the Shire.<br />

BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

17<br />

The Tour<br />

All events at Hobbiton<br />

Movie Set begin with a fully<br />

guided tour <strong>of</strong> the famous<br />

movie set as seen in The<br />

Lord <strong>of</strong> the Rings and The<br />

Hobbit trilogies. Your guide<br />

will escort you around the<br />

set, showing you the intricate<br />

detailing, pointing out the<br />

most famous locations and<br />

explaining how the movie<br />

magic was made. You will be<br />

taken around the 12 acre set;<br />

past Hobbit Holes, the Mill<br />

and finally into the famous<br />

Green Dragon Inn, where<br />

you can indulge in our exclusive,<br />

specially brewed beverages<br />

<strong>of</strong>fering a taste <strong>of</strong> Middle-earth.<br />

continuous themed substantial<br />

canapés served throughout the<br />

evening. Alternatively, you<br />

could choose a seated buffet<br />

meal or banquet feast fit for<br />

a Hobbit served inside The<br />

Green Dragon Inn.<br />

The Party Marquee<br />

For larger groups you can<br />

spend up to 45 minutes in The<br />

Green Dragon Inn enjoying<br />

pre-dinner drinks before being<br />

escorted to the adjacent Party<br />

Marquee for a seated meal.<br />

The painted canvas exterior,<br />

vibrant bunting and colourful<br />

lanterns <strong>of</strong> the Party Marquee<br />

means your group will be<br />

immersed in the festive magic<br />

<strong>of</strong> the movies.<br />

breads, cured meats, smoked<br />

fish, and <strong>of</strong> course fresh produce<br />

from the Hobbiton gardens<br />

just to name a few.<br />

Throughout the evening<br />

there will be roaming entertainment<br />

mingling amongst<br />

the guests. Move freely<br />

throughout the area and watch<br />

the carpenters, horse farriers<br />

and puppeteers go about<br />

their daily life. Among the<br />

stalls you’ll find handcrafted<br />

barrel bars pouring our ales,<br />

a selection <strong>of</strong> Middle Earth<br />

wines and various non-alcoholic<br />

beverages. As the sun<br />

sets over Hobbiton Movie<br />

Set the village will light up<br />

across the lake and provide<br />

a stunning backdrop for your<br />

celebration.<br />

The Green Dragon Inn<br />

The Hobbiton Marketplace<br />

Special Public Events<br />

Your guests can then<br />

remain in the masterfully<br />

re-created Green Dragon Inn<br />

with roaring indoor and outdoor<br />

fireplaces, encouraging<br />

your guests to spread throughout<br />

the venue and into the<br />

Bywater beer garden beneath<br />

the glowing lanterns.<br />

For a cocktail event there<br />

will be two bars open serving<br />

our Hobbit Southfarthing<br />

range <strong>of</strong> brews and<br />

Middle-earth wine range, with<br />

The Hobbiton Marketplace<br />

is a bustling, vibrant experience<br />

to tantalise the senses<br />

as you are immersed in the<br />

sights, smells, sounds and<br />

tastes <strong>of</strong> the Shire. Guests are<br />

invited to taste a real piece <strong>of</strong><br />

Middle-earth from individually<br />

themed stalls bursting<br />

with traditional Hobbit fare.<br />

The market stalls are catered<br />

to your guest’s requirements<br />

and feature New Zealand<br />

cheeses, freshly baked artisan<br />

If you have only a small<br />

group or are looking to host<br />

some important clients for<br />

a memorable evening, you<br />

could consider one <strong>of</strong> our<br />

existing public special events.<br />

In <strong>2019</strong>, we are hosting a<br />

range <strong>of</strong> unique events at<br />

Hobbiton Movie Set, each<br />

with a different theme and<br />

utilising different venues and<br />

formats around the Movie<br />

Set. The current suite <strong>of</strong><br />

events includes our annual<br />

International Hobbit Day on<br />

Sunday 22 <strong>September</strong>, and<br />

a not-so-typical Oktoberfest<br />

style Hobbiton Beer Festival<br />

on Saturday 26 <strong>October</strong> and<br />

Saturday 2 November, A Hobbit<br />

Christmas on Friday 13<br />

December, and Summer Solstice<br />

on Friday 20 December.<br />

These events are available for<br />

group bookings upon request<br />

and <strong>of</strong>fer a great opportunity<br />

to experience the best <strong>of</strong> what<br />

Hobbiton has to <strong>of</strong>fer.<br />

For more information on<br />

holding your corporate Christmas<br />

party at Hobbiton Movie<br />

Set visit<br />

www.hobbitontours.com/<br />

en/events or email our dedicated<br />

events team events@<br />

hobbitontours.com<br />

Celebrate the festive season with your staff in the pictureqsue setting <strong>of</strong> The Shire...<br />

Experience the real Middle-earth with a tour <strong>of</strong> Hobbiton Movie Set as seen in The Lord <strong>of</strong> the Rings and The Hobbit Trilogies,<br />

finishing the evening with a delicious feast on-set.<br />

With two stunning, authentic venues to choose from - The Green Dragon Inn and the Party Marquee,<br />

Hobbiton Movie Set has all the resources to create a successful event to remember.


18 BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

John Wardle gets top award from<br />

NZ Institute <strong>of</strong> Forestry<br />

New Zealand Institute <strong>of</strong> Forestry (NZIF)<br />

has recognised Dr John Wardle with its top<br />

award at its recent annual awards dinner in<br />

Christchurch.<br />

Forestry, one <strong>of</strong> the country’s<br />

key sectors, has a<br />

crucial role in the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong>’s economy. The NZIF<br />

has named Wardle its Forester<br />

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

The award recognises an<br />

institute member who has<br />

made an outstanding contribution<br />

to either the forestry pr<strong>of</strong>ession,<br />

or the forestry sector.<br />

It recognises leadership,<br />

excellence and personal integrity<br />

- particularly where this<br />

demonstrates the character<br />

and strength <strong>of</strong> the forestry<br />

pr<strong>of</strong>ession.<br />

It is one <strong>of</strong> the highest<br />

accolades the NZIF can<br />

bestow.<br />

“The Forester <strong>of</strong> the Year<br />

Award is a fitting recognition<br />

<strong>of</strong> the contribution that Dr<br />

Wardle has made to the sector<br />

over a large number <strong>of</strong> years,”<br />

said president David Evison.<br />

The NZIF represents forestry<br />

pr<strong>of</strong>essionals, including<br />

those who work in all aspects<br />

<strong>of</strong> forestry, including forest<br />

management and utilisation,<br />

processing, research, education<br />

and consulting.<br />

The NZIF’s interests<br />

include forests that are used<br />

for timber production, as well<br />

as those used for conservation,<br />

recreation, biodiversity,<br />

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

Year Award is a<br />

fitting recognition<br />

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

that Dr Wardle<br />

has made to the<br />

sector over a large<br />

number <strong>of</strong> years.”<br />

- David Evison<br />

carbon storage, erosion control<br />

and water quality.<br />

“Dr Wardle’s earlier contribution<br />

to research included<br />

writing the authoritative text<br />

on the New Zealand beech<br />

species, and research into the<br />

effects <strong>of</strong> introduced wild animals<br />

on New Zealand’s native<br />

forests,” said Evison.<br />

“More recently Dr Wardle,<br />

in partnership with his wife<br />

Rosalie, has developed and<br />

managed a unique forestry<br />

operation at their property<br />

“Woodside” in North<br />

Canterbury.<br />

“They have pioneered<br />

Dr John Wardle receiving the NZIFs top<br />

award from David Evison. Photo/Supplied.<br />

innovative management <strong>of</strong><br />

both indigenous and exotic<br />

forests for multiple uses<br />

including timber and honey<br />

production and conservation.<br />

“The property is managed<br />

under an open space QEII<br />

covenant, which guarantees<br />

sustainable management into<br />

the future with emphasis on<br />

both education and research<br />

activities.<br />

“The QEII covenant on<br />

Woodside is unusual, in that<br />

it provides for both conservation<br />

and sustainable timber<br />

harvesting.”<br />

The Institute also cele-<br />

brated the election <strong>of</strong> James<br />

Treadwell and Mike Marren<br />

as Fellows <strong>of</strong> the NZIF. The<br />

election to this special membership<br />

status is granted by<br />

a vote <strong>of</strong> members and also<br />

recognises outstanding contributions<br />

to the pr<strong>of</strong>ession <strong>of</strong><br />

forestry.<br />

Circular economy:<br />

Just another buzzword or is there more to it?<br />

Circular Economy has a far longer<br />

history than we think. The concept<br />

isn’t new.<br />

Humans have, unfortunately, forgotten<br />

about this and are in the habit <strong>of</strong> “make,<br />

use, dispose”. Disposing <strong>of</strong>ten includes<br />

throwing valuable and finite resources into<br />

landfill, which can quickly turn into harmful<br />

materials. There are 4 things that we<br />

should be looking at first:<br />

1) REUSE<br />

Can a wooden pallet be used again or<br />

have its purpose changed?<br />

2) REPAIR<br />

Can an old planter box be repaired by<br />

using other pieces <strong>of</strong> similar materials?<br />

3) REMANUFACTURE<br />

Can untreated timber that is beyond<br />

repair or reuse be used to create furthervalue<br />

-added products?<br />

4) RECYCLE<br />

Can the product be used in the manufacturing<br />

<strong>of</strong> other products? Pallets that<br />

were previously used for transport can be<br />

ground into mulch to return to the natural<br />

breakdown process in our gardens.<br />

The more people and businesses that<br />

adopt this approach the more pressure is<br />

applied on manufacturers to give the consumer<br />

more opportunities to create less<br />

waste.<br />

To create a true circular economy all<br />

manufacturers need to get on board. It is the<br />

perfect time to make these changes that can<br />

make big differences. Did you know that<br />

100’s <strong>of</strong> tonnes <strong>of</strong> untreated woodwaste end<br />

up in local landfills each week?<br />

At Goodwood we are passionate about<br />

helping to preserve our planet for future<br />

generations by collecting and recycling<br />

untreated timber woodwaste, preventing it<br />

from going to landfill and creating value<br />

added wood products, because doing good<br />

feels great.<br />

At Goodwood we <strong>of</strong>fer a woodwaste<br />

recycling collection service throughout<br />

the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> and Waikato, with yards<br />

located in Mount Maunganui, Horotui and<br />

Hamilton.<br />

Contact the Goodwood team on 0508 4<br />

GOODWOOD(0508 446 639) and let us<br />

know the volume <strong>of</strong> woodwaste your business<br />

has for recycling. www.goodwoodnz.<br />

co.nz<br />

House owners waste<br />

thousands sending perfectly<br />

good homes to landfill<br />

House owners are wasting tens <strong>of</strong><br />

thousands on demolition costs that<br />

see tonnes <strong>of</strong> waste materials clogging<br />

landfills when there is a better alternative<br />

to demolishing that could see owners<br />

putting more money into their new build<br />

budget.<br />

Richard Hutchinson, Managing Director<br />

from The Relocatable House Co. says that<br />

by choosing to demolish, owners are wasting<br />

money and missing out on the many<br />

benefits that arise from choosing to relocate<br />

the houses instead.<br />

“Imagine if you could save your house<br />

from ending up in landfill, says Richard, or<br />

if you were a part <strong>of</strong> giving another family<br />

the opportunity <strong>of</strong> being able to get into<br />

the housing market whilst saving the demolition<br />

cost and putting the extra dollars<br />

towards your new build.”<br />

“If you need to dispose <strong>of</strong> an old house<br />

to make way for new, there are thousands<br />

<strong>of</strong> potential buyers in our database looking<br />

to purchase a house for relocation and The<br />

Relocatable House Co. is a leading provider<br />

<strong>of</strong> pr<strong>of</strong>essional services to the house<br />

relocation industry.”<br />

“We have multiple options to sell houses<br />

for relocation and maximise the return for<br />

the owner,” says Richard.<br />

The experienced team <strong>of</strong> consultants at<br />

The Relocatable House Co will provide you<br />

with a free market appraisal for the sale <strong>of</strong><br />

your house for relocation. We can sell on<br />

your behalf brokering a sale via negotiable<br />

price or use one <strong>of</strong> our flexible purchase<br />

outright options.<br />

To get a free appraisal for your house<br />

go to www.relocatablehouses.co.nz/<br />

house-sellers/free-appraisal/.<br />

To download our comprehensive guide<br />

to selling your house for relocation go to,<br />

www.relocatablehouses.co.nz/<br />

house-sellers/download-our-sellers-guide/.<br />

For more information or help with this<br />

process contact the team at The Relocatable<br />

House Co. on 0508 4 RELOCATE (0508<br />

473 562). www.relocatablehouses.co.nz<br />

0508 4 GOODWOOD<br />

(0508 446 639)<br />

www.goodwoodnz.co.nz<br />

202866AA<br />

0508 4 RELOCATE<br />

www.relocatablehouses.co.nz<br />

202869AA


BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

19<br />

The power <strong>of</strong> passion<br />

CREDIT MANAGEMENT<br />

> BY NICK KERR<br />

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

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

Have you ever been to the store to buy<br />

something and been greeted by a sourfaced<br />

auto-bot? You want to yell at them,<br />

“just leave your job if you hate it so much”.<br />

You want to scream at<br />

them that their attitude<br />

brings you and everyone<br />

they come in contact with down<br />

and lessens their joy. Can you<br />

imagine what their approach<br />

does to those who have to work<br />

with them, and to the business<br />

owner’s bottom line? Creating<br />

an unpleasant shopping or buying<br />

experience is seldom a pathway<br />

to success.<br />

People that are passionate<br />

about what they do for work are<br />

more successful at it. Salespeople<br />

spend a fortune on sales tip<br />

books about engaging people,<br />

getting them enthused about<br />

and wanting to have what you<br />

are selling. If you can’t get<br />

enthused yourself, then you<br />

have no shot at firing up anybody<br />

else.<br />

The snowball effect<br />

Lack <strong>of</strong> passion is the number<br />

one thing that I have seen lead<br />

to a lack <strong>of</strong> success in sales.<br />

And it has a snowball effect.<br />

You lose your passion, then you<br />

get pressure because you aren’t<br />

doing your numbers, then the<br />

pressure makes your job even<br />

less enjoyable, which decreases<br />

your passion.<br />

In order to be<br />

passionate about<br />

something, you need<br />

to believe in it.”<br />

I have been in the same role<br />

for 13 years and over that time I<br />

have become - and stayed - very<br />

passionate about what I do. The<br />

terms <strong>of</strong> trade, credit checking<br />

and debt recovery services that<br />

we provide really do make a<br />

difference to businesses. And if<br />

my passion ever flags, all I have<br />

to do is call up one <strong>of</strong> my existing<br />

clients and ask them how<br />

their interaction with me has<br />

improved their business, and<br />

I’m back on fire again.<br />

In order to be passionate<br />

about something, you need to<br />

believe in it. For example, I’m<br />

not passionate about platform<br />

high heels - or multilevel marketing<br />

schemes. Whatever you<br />

do, you need to be able to see<br />

the benefits it brings to people.<br />

If you sell insurance, then<br />

read articles on families that<br />

are left homeless and penniless<br />

after a fire with no insurance. If<br />

you sell tyres, then read about<br />

stopping distances and the difference<br />

that good tyres make.<br />

And if you sell <strong>of</strong>fice chairs,<br />

then study the longterm back<br />

issues that can be caused by<br />

bad ergonomics. Once you see<br />

yourself as the holder <strong>of</strong> the<br />

solution to a very serious issue,<br />

then the passion will flow and<br />

so will the results.<br />

People say that passion isn’t<br />

everything - you need knowledge<br />

and skill. Of course. But<br />

how much easier is it to learn<br />

a skill or gain knowledge in an<br />

area you are passionate about?<br />

Another thing I love about<br />

what I do is that it helps business<br />

owners focus on the activity<br />

that they got into business<br />

to do. No-one ever said: “I<br />

love building. But I can’t wait<br />

until I can do lots <strong>of</strong> paperwork<br />

and chase debtors.” Leave that<br />

job to us, and focus on your<br />

passion.<br />

WANT A BRIGHTER FUTURE<br />

FOR YOUR BUSINESS?<br />

<strong>Business</strong> planning and cashflow forecasting are best practice and<br />

are the best steps to take to move your business forward.<br />

“Sometimes you can’t see the wood for the trees,<br />

you’re so busy in the day to day running <strong>of</strong> your<br />

business. I really needed an objective view and<br />

Ingham Mora gave me that. They seem to<br />

really understand SME’s. They really cut<br />

through the clutter and helped me”.<br />

Clark Nemeth<br />

Antipodes LED<br />

Clark Nemeth, Antipodes LED<br />

Get ahead and lock in a business planning<br />

session with one <strong>of</strong> our experienced<br />

directors. Get in touch today to book -<br />

call 07 927 1200.<br />

EXPERIENCE. THE DIFFERENCE ADDS UP.<br />

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


20 BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

A fool and his gold<br />

With signs <strong>of</strong> growth emerging in the wider <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> and with<br />

Baby Boomers looking to retire from business in the near future,<br />

the “attraction” that is self employment is popular throughout our<br />

region with both locals and out <strong>of</strong> town investors alike. Where there<br />

is opportunity, there is also risk so it’s time for a cautionary tale.<br />

MONEY MATTERS<br />

> BY STEPHEN GRAHAM<br />

Stephen Graham is a Director and Managing Partner at BDO<br />

Rotorua, Chartered Accountants and Advisers. To find out more<br />

visit bdorotorua.co.nz or email rotorua@bdo.co.nz<br />

It’s about the importance <strong>of</strong><br />

seeking pr<strong>of</strong>essional help<br />

when assessing the viability<br />

<strong>of</strong> a business opportunity<br />

– that crucial process <strong>of</strong> due<br />

diligence - which will include<br />

seeking the advice <strong>of</strong> your<br />

accountant and solicitor.<br />

I still find it frustrating<br />

when due diligence isn’t completed<br />

or the advice is sought<br />

from the wrong people.<br />

Sometimes, the cost <strong>of</strong><br />

seeking the advice is a barrier.<br />

However, if using your<br />

personal assets as collateral,<br />

including mortgaging a family<br />

home, it is worth doing the due<br />

diligence correctly.<br />

Do your due diligence<br />

So here’s the tale. A few years<br />

back, I was approached by<br />

someone wanting to purchase<br />

a business in Rotorua.<br />

The broker was marketing<br />

the business with a Return on<br />

Investment (ROI) <strong>of</strong> 30 percent.<br />

This means, you would<br />

make $120,000 from your<br />

$395,000 purchase price – now<br />

that got the attention <strong>of</strong> the<br />

proposed purchaser.<br />

The gospel that is Wikipedia<br />

defines ROI as a metric to<br />

measure, per period, rates <strong>of</strong><br />

The flexibility is<br />

there to enable the<br />

purchaser to factor<br />

in their personal<br />

situation i.e. how they<br />

will run the business.<br />

But at no time should<br />

a ROI exclude a<br />

wage for the owner/<br />

operator.<br />

return on money invested in<br />

an economic entity in order<br />

to decide whether or not to<br />

undertake an investment.<br />

I would also like to point<br />

out that I am not an investment<br />

adviser, but am qualified to<br />

use a calculator and crunch<br />

numbers to help the purchaser<br />

make an informed decision.<br />

At this point, the prospective<br />

purchaser could have<br />

taken two paths and he correctly<br />

entered into an agreement<br />

for purchase with due<br />

diligence clauses included.<br />

Due diligence was completed<br />

and a report issued – at<br />

which point, everything came<br />

to a grinding halt, from his<br />

perspective.<br />

His question: “How can<br />

your figures differ so much<br />

from what I have been referring<br />

to previously”?<br />

I refer to our friend<br />

Wikipedia again, which goes<br />

on to state that “the calculation<br />

for ROI and, therefore the<br />

definition, can be modified to<br />

suit the situation -it all depends<br />

on what you include as returns<br />

and costs”.<br />

Confused? This “flexibility”<br />

in calculation is the reason<br />

why you should complete due<br />

diligence.<br />

The flexibility is there to<br />

enable the purchaser to factor<br />

in their personal situation i.e.<br />

how they will run the business.<br />

But at no time should a ROI<br />

exclude a wage for the owner/<br />

operator.<br />

This is one item that really<br />

put me at odds with some brokers<br />

– the assumption that the<br />

owner/operator would work<br />

for free.<br />

Remember, this is a Return<br />

on investment, not a Return<br />

for effort.<br />

Factor in a management<br />

wage and this examples ROI<br />

dropped to 15 percent, at least<br />

half <strong>of</strong> which would then go in<br />

interest to the bank, a portion<br />

would be set aside for future<br />

capital expenditure associated<br />

with asset depreciation, leaving<br />

a less than attractive ROI<br />

for this purchaser.<br />

Now, I will state that this<br />

due diligence doesn’t mean<br />

that the business is not a good<br />

business.<br />

It was a great business. But<br />

the risk to my client - given<br />

they were risking their freehold<br />

house, leaving a well-paid<br />

job, moving to an industry that<br />

was foreign to them, in a city<br />

they knew little about - is probably<br />

not going to be worth the<br />

asking price.<br />

For every good story like<br />

this, I have one that does not<br />

end well.<br />

Watching a business crumble,<br />

followed by personal<br />

bankruptcy and then a marriage<br />

breakdown is not something<br />

you wish on anyone.<br />

That is why I am so passionate<br />

about ensuring that all<br />

business investors make fully<br />

informed decisions.<br />

Independent and expert<br />

advice from someone who<br />

does not have a vested interest<br />

in your purchase will help<br />

ensure your gold is protected.<br />

Get the best long-term outcome<br />

when buying a business<br />

The old saying with houses is that you make your money when<br />

you buy. The principle being, what you pay will influence your<br />

return when you sell. Pay too much on the way in and it will be<br />

difficult to obtain a gain on the way out.<br />

FRANCHISING<br />

> BY NATHAN BONNEY<br />

Nathan Bonney is a director <strong>of</strong> Iridium Partners. He can be<br />

reached at nathan@iridium.net.nz or 0275-393-022<br />

Similar dynamics apply to<br />

buying a business. What<br />

you buy and for how<br />

much will definitely influence<br />

the future sale price and the<br />

return on investment when sold.<br />

However, when buying a<br />

business there is much more to<br />

consider than just the price and<br />

location.<br />

And with a franchised<br />

business, there are additional<br />

factors that will influence the<br />

future return on investment.<br />

These factors create opportunities.What<br />

are the secrets<br />

and tricks and tips that nobody<br />

tells you?<br />

Understand the market<br />

Instead <strong>of</strong> questioning if there<br />

is a current market for the business<br />

– ask will there be one in<br />

the future?<br />

To reference the all-time<br />

classic example: back in the<br />

day Blockbuster Video franchises<br />

were hot.<br />

They made a lot <strong>of</strong> money<br />

and accordingly the entry and<br />

resale prices were significant.<br />

Technology played its hand<br />

here, significantly changing<br />

the market and the value <strong>of</strong><br />

the individual and overall franchise<br />

businesses.<br />

We also need to consider<br />

other socioeconomic trends<br />

and where we are in the economic<br />

cycle and how it relates<br />

to the business.<br />

There are always winners<br />

and losers at each stage <strong>of</strong><br />

the cycle. Understanding the<br />

cycles and trends may help<br />

you pick what’s trending up, or<br />

down and spot an opportunity.<br />

Brand<br />

A brand’s position or its perception<br />

will influence sale and<br />

purchase pricing. What opportunities<br />

does this create?<br />

The logic is that a category<br />

or brand leader may present<br />

the best opportunity to obtain<br />

a return on your investment<br />

through higher sales and market<br />

position.<br />

You are likely to pay for<br />

this in goodwill if buying an<br />

existing business and potentially<br />

through a higher initial<br />

franchise fee than if it was a<br />

greenfield business.<br />

However, challenger brands<br />

may represent a good opportunity<br />

for a higher return on<br />

investment.<br />

A well-resourced and<br />

aggressive challenger has<br />

room in the market to grow<br />

and carry your business, and<br />

its value with it.<br />

Look further than the<br />

Pr<strong>of</strong>it and Loss statement<br />

Essentially, existing businesses<br />

are valued by a multiple <strong>of</strong><br />

their earnings or pr<strong>of</strong>it.<br />

I would suggest that to<br />

maximise your return on the<br />

investment opportunity when<br />

buying a franchised business,<br />

you need to look beyond the<br />

pr<strong>of</strong>it and loss statements.<br />

In addition to the market<br />

and brand issues above, look at<br />

the sales trend line over the life<br />

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

Have pr<strong>of</strong>itability changes<br />

been driven by management <strong>of</strong><br />

the business or sales? Look at<br />

the performance <strong>of</strong> the business<br />

against the franchises’<br />

benchmarking information<br />

- are there opportunities to<br />

improve performance and<br />

ramp up the return?<br />

Another property analogy:<br />

the best house in the worst<br />

street fixer upper approach also<br />

applies.<br />

Look for underperforming<br />

franchises in good brands. Is it<br />

user error or market location?<br />

If the former, this may present<br />

potential to purchase an underperforming<br />

asset, and with it<br />

perhaps the largest opportunity<br />

make to money.<br />

Negotiate the best deal<br />

Finally, you need to understand<br />

what you can, and what<br />

you should not, try to negotiate<br />

with the franchisor.<br />

There is a tendency for<br />

people to critically look at the<br />

franchise fees and attempt to<br />

negotiate these as a way <strong>of</strong><br />

saving money.<br />

The franchisor needs fees<br />

to run, develop and market the<br />

system. Assuming the business<br />

stacks up overall, they are a<br />

cost <strong>of</strong> doing business.<br />

However, you may be able<br />

to negotiate your entry and exit<br />

costs, renewals and transfer<br />

obligations.<br />

There is also significant<br />

potential in being able to negotiate<br />

territory expansion rights.<br />

Equally, be aware <strong>of</strong> refurbishment<br />

and re-development<br />

costs.<br />

These are essential to<br />

ensuring brands remain fresh<br />

and current, so are required at<br />

some stage.<br />

Again - as in selling a house<br />

- evaluate your potential return<br />

on investment and whether you<br />

will be reselling a fixer upper,<br />

or a fully renovated operation.


BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

21<br />

Where to begin investing in art<br />

and starting your own collection<br />

An art collection can be started on any budget and at any<br />

stage in life, it’s not necessarily a luxury item for dilletantes<br />

and connoisseurs. Living with good art brings joy.<br />

Every once in a while,<br />

art market news hits the<br />

headlines in New Zealand.<br />

But it generally gets next<br />

to no coverage in mainstream<br />

New Zealand media. Internationally,<br />

this is a multi-billion-dollar<br />

industry and culture<br />

- and a huge economic driver<br />

<strong>of</strong> tourism.<br />

In 2017 a Saudi prince purchased<br />

a work purportedly by<br />

Leonardo da Vinci, Salvatore<br />

Mundi, at auction for a world<br />

record $450 million.<br />

The auction house had gone<br />

to great pains to obtain quotes<br />

from legitimate Leonardo<br />

scholars to support their sale<br />

and strengthen the provenance<br />

for this work.<br />

It was due to go on display<br />

at the Louvre Abu Dhabi in<br />

<strong>September</strong> 2018, but it appears<br />

to have gone missing, according<br />

to a January <strong>2019</strong> story in<br />

Vanity Fair.<br />

Meanwhile 2017 also saw<br />

a young Japanese entrepreneur<br />

ARTS AND CULTURE<br />

> BY ALICE HUTCHISON<br />

Alice Hutchison is the director <strong>of</strong> the Tauranga Art Gallery. She<br />

can be reached on director@artgallery.org.nz.<br />

and avid contemporary art collector<br />

purchase Jean-Michel<br />

Basquiat’s Untitled, 1982,<br />

achieving a record-shattering<br />

$110.5 million.<br />

The price was the highest<br />

paid at auction for a work by<br />

an American artist and for any<br />

artwork created after 1980.<br />

However, these are exceptional<br />

acquisitions at the very<br />

top <strong>of</strong> the market.<br />

What is the position for<br />

those who have the desire to<br />

support the livelihood <strong>of</strong> the<br />

creatives in our community by<br />

collecting New Zealand artists?<br />

New Zealand artists have<br />

evolved since the 1970s and<br />

1980s into fully fledged pr<strong>of</strong>essionals,<br />

holding regular<br />

one-person exhibitions, their<br />

work collected by public<br />

institutions, and being written<br />

about in scholarly contexts.<br />

They are teaching new generations<br />

<strong>of</strong> emerging artists<br />

who are increasingly savvy at<br />

marketing themselves and are<br />

enjoying international careers.<br />

But it’s hard for some people<br />

to even find time to get to<br />

a gallery opening. Perhaps you<br />

have yet to even meet an artist?<br />

Visiting public art galleries<br />

around New Zealand generally<br />

gives one a sense <strong>of</strong> those<br />

key practitioners’ place and<br />

context, although most <strong>of</strong> our<br />

national collection remains<br />

behind closed doors in the collection<br />

stores <strong>of</strong> Te Papa.<br />

Subscribing to New<br />

Zealand art periodicals, such<br />

as Art New Zealand and Art<br />

<strong>News</strong> NZ, will also provide a<br />

good introduction. Art Zone<br />

is helpful for gallery listings<br />

around the country.<br />

Collecting is personal<br />

What we gravitate to and like<br />

may not be work that eventually<br />

pays <strong>of</strong>f on resale.<br />

But collecting art is not like<br />

flipping houses.<br />

Taking an educated guess<br />

Emma Prill, Garden Oasis, <strong>2019</strong>, acrylic paint, canvas,<br />

perspex box, 1000mm x 1000mm. Image/Courtesy <strong>of</strong><br />

Chrysalis Collection.<br />

as to the future significance<br />

and market value <strong>of</strong> an artist<br />

need not be the primary<br />

reason to purchase something,<br />

if it just appeals to you on<br />

a personal or aesthetic level.<br />

Collecting is personal.<br />

The artwork you put in your<br />

home is something you want<br />

to live with, ideally long-term.<br />

Some <strong>of</strong> the great galleries<br />

in New Zealand, such as<br />

Peter McLeavey’s eponymous<br />

gallery in Wellington, have<br />

taken the time over generations<br />

to school collectors in<br />

New Zealand art. They have<br />

really created a community,<br />

providing ongoing support for<br />

the artists, and establishing a<br />

level <strong>of</strong> consistent excellence.<br />

Collectors come in all shapes<br />

and sizes. On the one hand, a<br />

substantial print or limited edition<br />

by a leading artist can be<br />

acquired at a nominal price.<br />

I have also worked with collectors<br />

who were able to commission<br />

a Skyspace by James<br />

Turrell and pick up a beautiful<br />

Louise Bourgeois sculpture at<br />

the Basel Art Fair. Some have<br />

built their own museums to<br />

house their private collections<br />

– reflecting a lifetime love <strong>of</strong><br />

art and ideas.<br />

It was enjoyable visiting the<br />

Auckland Art Fair a couple <strong>of</strong><br />

months ago to view selections<br />

<strong>of</strong> current practitioners in a<br />

variety <strong>of</strong> media and converse<br />

with the gallerists representing<br />

the artists.<br />

There is an interest-free<br />

funding scheme to assist new<br />

collectors to buy art. There are<br />

also various collectives which<br />

have built art collections that<br />

are shared between members.<br />

The Chrysalis Collection<br />

in the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> is celebrating<br />

a 10-year anniversary<br />

collecting artists with a local<br />

connection, from Emma Prill<br />

to Dame Robin White. The<br />

collection is shared by the<br />

members on a rotational basis<br />

every four months. (www.<br />

chrysaliscollection.co.nz )<br />

Chrysalis currently has a<br />

small exhibition in the foyer <strong>of</strong><br />

the Koru Lounge at Tauranga<br />

Airport.<br />

Chrysalis will be revolving<br />

art pieces from its collection<br />

in this space, including the<br />

Emma Prill piece pictured on<br />

this page, for the next year<br />

to showcase the unique talent<br />

here in the <strong>Bay</strong>. For the<br />

10 days <strong>of</strong> the Tauranga Art<br />

Festival, they plan to exhibit<br />

the full collection at a venue in<br />

the Tauranga CBD.<br />

Another group - Hang-It-<br />

Art - also with 10 years <strong>of</strong> collecting<br />

experience, has brought<br />

to the <strong>Bay</strong> the members’ criteria<br />

<strong>of</strong> nationally significant<br />

contemporary artwork in a<br />

diverse range <strong>of</strong> media. This<br />

group is also aiming to consolidate<br />

for an auction exhibition<br />

next year. Watch this space.<br />

For additional collecting<br />

insights, see https://www.<br />

highsnobiety.com/p/art-collection-guide/<br />

Global ethical beauty brand’s switch<br />

to 2degrees a force for ‘good’<br />

As one <strong>of</strong> the world’s most recognised trailblazers<br />

in ethical beauty, The Body Shop has<br />

been delighting customers with its expansive<br />

range <strong>of</strong> naturally-inspired beauty products for<br />

over 40 years.<br />

With more than 3,000 stores<br />

across 66 countries, 25 <strong>of</strong><br />

them based in New Zealand,<br />

The Body Shop has a truly<br />

global reach.<br />

Recently, its New Zealand-based<br />

operations moved its mobile and<br />

broadband communications to<br />

2degrees. The partnership has seen<br />

a natural synergy between the two<br />

organisations with both being forward-thinking<br />

businesses and also<br />

focused on being a force for good.<br />

“Our business philosophy is<br />

built on never being afraid to stand<br />

out from the crowd or to stand up<br />

for what’s right,” says The Body<br />

Shop New Zealand’s Operations<br />

Manager Rob Taylor.<br />

“We love that 2degrees shares<br />

the same philosophy and champions<br />

its customers when it comes<br />

to ‘fighting for fair’. Working with<br />

ethical and sustainable partners, like<br />

2degrees, is really important to us.<br />

2degrees ticked all those boxes and<br />

has also provided us with a great<br />

technical and commercial solution<br />

our New Zealand-based business<br />

just couldn’t go past.”<br />

A fresh approach to mobile<br />

Taylor says the company decided it<br />

needed a fresh approach to its communications<br />

late last year.<br />

“When we looked out in the<br />

market, 2degrees stood out as a<br />

clear front-runner as it <strong>of</strong>fered some<br />

pretty innovative solutions that<br />

could make our business more efficient,”<br />

he says.<br />

One such solution is 2degrees’<br />

‘Shared Data’ which allows teams<br />

to share from one large pool <strong>of</strong><br />

data – rather than having individual<br />

plans with usage limits.<br />

“That was particularly appealing<br />

to us. We have around 25 support<br />

staff and 25 store managers who<br />

rely on their mobiles to help run our<br />

operations.<br />

“Some use more data than others<br />

so it’s been quite difficult until now<br />

to forecast costs given it varied so<br />

much,” he says.<br />

“Shared data has revolutionised<br />

the way we use mobile. It has also<br />

completely eliminated over-spend<br />

and created significant operational<br />

savings for our business.”<br />

Landline to mobile<br />

Another key change Taylor says<br />

The Body Shop made when it<br />

switched to 2degrees was removing<br />

all its landlines.<br />

“Like many businesses, we still<br />

had both mobiles and landlines<br />

operating at all <strong>of</strong> our sites. In this<br />

day and age, that’s just unnecessary<br />

duplication and doesn’t make sense<br />

anymore,” he says.<br />

“2degrees helped us get rid <strong>of</strong><br />

our landlines and diverted those<br />

numbers to mobile which has really<br />

changed the game for us. We have<br />

unlimited free calling now on our<br />

mobiles and there are no call, divert<br />

or other hidden charges for the service,”<br />

he says.<br />

“That’s a huge advantage for<br />

us as it means we can freely communicate<br />

to our customers the way<br />

they would like us to i.e. via text<br />

or mobile without having to worry<br />

about cost. All <strong>of</strong> our call charges<br />

have, effectively, been eliminated<br />

overnight which has saved us a significant<br />

amount <strong>of</strong> money.”<br />

Taylor says the organisation is<br />

now fully mobile.<br />

“We now have mobiles for communication<br />

solely in all our stores<br />

which gives us a lot <strong>of</strong> flexibility<br />

and the added advantage <strong>of</strong> monthly<br />

fixed costs, which is the ultimate<br />

outcome for us.”<br />

Seamless switching<br />

Moving to a new provider is something<br />

that’s <strong>of</strong>ten considered a<br />

time consuming, problematic exercise<br />

- but Taylor says it was quite<br />

the opposite experience moving to<br />

2degrees.<br />

“Switching to 2degrees was<br />

actually a relatively simple, seamless<br />

process. One thing that helped<br />

a lot was that we have always only<br />

had one point <strong>of</strong> contact within<br />

2degrees who just handles everything<br />

for us,” he says.<br />

“2degrees really worked hard to<br />

build a personal partnership with us<br />

right from the start and focused on<br />

keeping things simple. That’s quite<br />

unique these days and has been<br />

really appreciated by our team.”<br />

Taylor says that approach has<br />

continued throughout.<br />

“We’ve been really impressed<br />

with the level <strong>of</strong> care and attention<br />

2degrees has given our account.<br />

They’re highly responsive when we<br />

need them and, to this day, remain<br />

in regular contact with us to ensure<br />

we have everything we need. That’s<br />

exactly the sort <strong>of</strong> forward thinking<br />

organisation we love to work with,”<br />

he says.<br />

“What’s more, we love the fact<br />

that 2degrees continues to disrupt<br />

the market with its innovative solutions,<br />

which they then back up with<br />

superior personal service and value<br />

for money.”<br />

FOR KIWI BUSINESS


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

CONNECTING<br />

BUYERS AND<br />

SELLERS OF<br />

QUALITY<br />

BUSINESSES<br />

First on the scene<br />

Pictures from Duncan & Ebbett’s recent Tauranga Chamber <strong>of</strong> Commerce<br />

B5 event featuring the new Jaguar electric I-Pace.<br />

Photos/Chris Parker, Photographics.<br />

When is the right time to sell<br />

your business? Right now.<br />

At TABAK, we promise to guide<br />

you through the sales process<br />

with focus, integrity and<br />

complete confidentiality.<br />

1<br />

1 Matt Cowley, Tauranga Chamber <strong>of</strong> Commerce; Ben Montgomery, Jaguar Land Rover NZ; Janine Williamson, Superior<br />

Shelving Systems NZ; and Sam MacNeil, Duncan & Ebbett Tauranga. 2 Alan Pope, guest; Grayson Garret, Duncan & Ebbett<br />

Tauranga; and Les Dimond, G4 Kiwi Supply.<br />

2<br />

3<br />

3 Philipp and Maria Wilkens, Computastyle deSigns and Mydawny Nairn-Kusabs, Bridge It. 4 Karen Gemmell, Cancer<br />

Society Waikato/<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>.<br />

4<br />

FOCUS • INTEGRITY<br />

CONFIDENTIALITY<br />

WHY TABAK<br />

5<br />

6<br />

5 Henry Kayser and Les Geraghty, Harcourts Advantage Realty-Tauranga. 6 Morgan and Richard Burne, Architectural Panels.<br />

INDUSTRY EXPERIENCE<br />

REALISTIC APPRAISALS<br />

TEAM APPROACH<br />

7<br />

7 Sam MacNeil, Duncan & Ebbett Tauranga. 8 Kylie Sprague, Elliotts Funeral Services and Steve Catley, LINK <strong>Business</strong> Brokers.<br />

8<br />

PRE-QUALIFIED BUYERS<br />

147 Cameron Road<br />

p. 07 578 6329<br />

e. tauranga@tabak.co.nz<br />

w. tabak.co.nz<br />

P5177Y<br />

9 10<br />

9 Jeanette Mindham and Matt Cowley, Tauranga Chamber <strong>of</strong> Commerce. 10 Daniel Johnston, The Dealership Network;<br />

Tony Snow, Stratus Blue; Angela Hale, Sign Creations;Tangiwai Manihera-Palmer, Mo’s Matakana Island Tours; and Ge<strong>of</strong>f<br />

Williamson, Superior Shelving Systems NZ.


BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

23<br />

Doing your own thing<br />

while working together<br />

New Zealand’s third annual National Coworking Day has just<br />

been celebrated around the country, with coworking spaces<br />

opening their doors to showcase what they <strong>of</strong>fer.<br />

The curious were able<br />

to tour the coworking<br />

spaces and experience<br />

first-hand what these collaborative,<br />

knowledge-sharing working<br />

environments are all about.<br />

A recent <strong>Bay</strong>leys Research<br />

report shows that Auckland’s<br />

coworking <strong>of</strong>fice sector has<br />

continued its state <strong>of</strong> expansion<br />

– growing in size,<br />

membership and occupancy<br />

throughout last year, with no<br />

sign <strong>of</strong> letting up.<br />

Auckland’s coworking<br />

presence grew by around<br />

10,000sqm over 2018 to a total<br />

footprint <strong>of</strong> 39,500sqm which<br />

represents an estimated 1.2<br />

percent <strong>of</strong> the total <strong>of</strong>fice market<br />

– below the Asia-Pacific<br />

average <strong>of</strong> 2.1 percent<br />

However, there’s an additional<br />

18,000sqm <strong>of</strong> CBD<br />

stock in the pipeline and<br />

circa 20,000sqm in the wider<br />

Auckland pipeline with roughly<br />

half due for completion over<br />

the next 12 months.<br />

Elsewhere around the country<br />

– particularly in Wellington<br />

and Christchurch – coworking<br />

hubs are finding favour with a<br />

segment <strong>of</strong> the market looking<br />

for fluid, and adaptable working<br />

environments.<br />

Monthly dedicated/flexi<br />

desk rates have remained<br />

largely unchanged from the<br />

last <strong>Bay</strong>leys Research survey,<br />

with current rates ranging from<br />

$499 to $1499 for larger operators<br />

and $400 to $900 for<br />

smaller operators.<br />

Casual rates typically range<br />

between $150 and $499 per<br />

month.<br />

Upward trajectory<br />

Globally, the coworking phenomenon<br />

continues on an<br />

upward trajectory, with an estimated<br />

35,000 flexible workspaces<br />

providing 48 million<br />

sqm <strong>of</strong> flexible work environment<br />

for those committed to<br />

working in a different way.<br />

Many <strong>of</strong> these coworking<br />

spaces are being purpose-built<br />

as part <strong>of</strong> new commercial<br />

and mixed-use developments,<br />

while others are being retro-fitted<br />

into existing commercial<br />

buildings close to transport<br />

networks and other amenities.<br />

<strong>Bay</strong>leys Auckland director<br />

<strong>of</strong> commercial real estate,<br />

Lloyd Budd says increasingly,<br />

bigger corporates are utilising<br />

co-working space for their<br />

staff which is “normalising”<br />

the cowork concept and making<br />

it an extension <strong>of</strong> the traditional<br />

workplace.<br />

“There was a perception<br />

that coworking was just for<br />

freelancers, self-employed<br />

operators, entrepreneurs or<br />

start-ups looking to collaborate<br />

with like-minded people, share<br />

ideas, services and reduce rental<br />

costs,” says Budd.<br />

“However, the concept<br />

has evolved and has attracted<br />

many in the corporate sector<br />

who want to tap into the startup<br />

culture to win new talent<br />

and new clients, and also<br />

serves remote or travelling<br />

workers well.”<br />

Corporate entities are also<br />

broadening their thinking and<br />

engaging workers outside <strong>of</strong><br />

the core centres then facilitating<br />

work from a coworking<br />

hub which minimises relocation<br />

costs and allows the<br />

workers to be part <strong>of</strong> a safe,<br />

pr<strong>of</strong>essional and social working<br />

environment with builtin<br />

flexibility and lower desk/<br />

operating costs.<br />

The coworking spaces that<br />

are emerging in New Zealand<br />

are well-spec’d with fast internet<br />

speeds, c<strong>of</strong>fee machines,<br />

break-out meeting rooms,<br />

boardrooms, and well-planned<br />

networking calendars.<br />

A cowork hub removes the<br />

isolation factor from remote<br />

working and establishes a<br />

sense <strong>of</strong> community for the<br />

“residents” choosing to be part<br />

<strong>of</strong> these innovative and flexible<br />

work spaces.<br />

If you’re looking to restructure<br />

your business model to<br />

allow for more fluidity and to<br />

broaden your potential worker<br />

base, then adopting a coworking<br />

strand to your operation<br />

could be the answer.<br />

www.bayleys.co.nz/insights<br />

At <strong>Bay</strong>leys, we believe relationships are what businesses are built on and how they<br />

succeed. We understand that to maximise the return on your property you need:<br />

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

A business partner that understands your views and goals<br />

Contact the <strong>Bay</strong>leys Tauranga Commercial Property Management team today.<br />

<strong>Bay</strong>leys Tauranga<br />

Commercial Property Management<br />

07 579 0609<br />

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

SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008<br />

ALTOGETHER BETTER<br />

Residential / Commercial / Rural / Property Services


24 BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

Comvita plants additional 2 million-plus<br />

bee-friendly trees<br />

Comvita has added 2.3 million trees to<br />

the government’s <strong>of</strong>ficial national tree<br />

count leaderboard over the past year, the<br />

company recently announced.<br />

Celebrating Bee Aware<br />

Month in <strong>September</strong>,<br />

the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>-based<br />

company currently<br />

occupies second place on the<br />

leaderboard having planted 6.4<br />

million Manuka seedlings in<br />

A <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> Manuka Breeding<br />

Programme trial site. Photo/Comvita.<br />

regional parts <strong>of</strong> New Zealand<br />

since 2016.<br />

The company said its plantation<br />

programme, as well as<br />

helping to ensure the longevity<br />

<strong>of</strong> the apiculture industry, contributed<br />

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

the natural environment and to<br />

the wellbeing <strong>of</strong> bee colonies.<br />

Jobs are also created in rural<br />

areas where Manuka planting<br />

takes place, said Comvita.<br />

Over the past year, Comvita<br />

planted more than 2,000 ha <strong>of</strong><br />

farmland in Manuka across six<br />

regions.<br />

Once the plantations are<br />

established, Comvita will place<br />

their hives on the properties to<br />

collect a honey crop. Comvita’s<br />

accompanying Manuka<br />

Breeding Programme has<br />

been successful in producing<br />

high-quality UMF Manuka<br />

cultivars to suit differing environments.<br />

These superior seedlings<br />

are used when developing<br />

plantations.<br />

But Comvita plantations<br />

panager Joshua Easton. said<br />

the programme wasn’t just<br />

about Manuka.<br />

“We’re now undertaking<br />

companion planting, growing a<br />

range <strong>of</strong> other native plant species<br />

alongside Manuka to further<br />

assist with beehive health<br />

and biodiversity,” he said.<br />

In 2018, the government<br />

established its programme<br />

charged with planting 1 billion<br />

trees by 2028 to create<br />

employment in regional areas,<br />

optimise land use, protect the<br />

environment and mitigate climate<br />

change while supporting<br />

New Zealand’s transition to a<br />

low emissions economy.<br />

So far 110 million trees<br />

have been planted.<br />

Comvita chief supply chain <strong>of</strong>ficer Colin Baskin, general<br />

manager safety and sustainability Heather Johnston, and<br />

plantations manager Joshua Easton. Photo/Comvita.<br />

Countering climate<br />

change<br />

Comvita general manager<br />

safety sustainability Heather<br />

Johnston says planting native<br />

trees is a powerful action New<br />

Zealanders can take to counter<br />

climate change, and protect the<br />

country’s landscapes and waterways<br />

for future generations.<br />

“We’re proud <strong>of</strong> our positive<br />

contribution to New<br />

Zealand’s future through our<br />

restorative plantings,” she said.<br />

“Sustainability is at its best<br />

when doing good benefits the<br />

environment and the community,<br />

while also aligning<br />

with the commercial needs<br />

<strong>of</strong> a business. We believe our<br />

Manuka Plantation Programme<br />

is an excellent example <strong>of</strong> that<br />

in action.”<br />

NZX-listed Comvita<br />

reported a $27.7 million annual<br />

net loss on its June <strong>2019</strong> year<br />

earlier this year, compared<br />

with an $8.2 million pr<strong>of</strong>it the<br />

previous year.<br />

Comvita chair Neil Craig<br />

said the result was an extremely<br />

disappointing conclusion to a<br />

year <strong>of</strong> significant change.<br />

The result included the third<br />

poor honey season in a row, the<br />

Chinese government’s crackdown<br />

on the daigou (or resale)<br />

trade, and tighter specifications<br />

on the export <strong>of</strong> branded<br />

Manuka honey.<br />

By DAVID PORTER<br />

Meet The Law Shop’s latest team member<br />

The Law Shop’s friendly and approachable team,<br />

based in Rotorua as well as from a virtual <strong>of</strong>fice<br />

in Tauranga, brings a fresh and no-nonsense<br />

approach to legal services. They are everyday<br />

lawyers for everyday people that explain things<br />

without using a bunch <strong>of</strong> confusing jargon.<br />

movies and socialising with family<br />

and friends. I’m also involved with<br />

Rotary and Toastmasters.<br />

If you weren’t a lawyer, what<br />

would you be?<br />

A writer! I am not sure that I actually<br />

have an award-winning novel<br />

in me, but still.<br />

PAULA LINES<br />

LL.B | Director<br />

The Law Shop’s newest solicitor<br />

is Joanne Douglas. She<br />

joined the team at the firm’s<br />

Rotorua <strong>of</strong>fice on Arawa Street in<br />

April this year and in her role, she<br />

helps clients with property matters<br />

and personal law.<br />

Her work includes conveyancing,<br />

estate administration, setting up trusts,<br />

the preparation <strong>of</strong> wills and enduring<br />

powers <strong>of</strong> attorney, and more. We’ve<br />

asked Jo a few questions.<br />

What made you decide to become<br />

a lawyer?<br />

This is my second career which I<br />

started in my forties. When I left<br />

school, I trained as a radiographer.<br />

It’s a challenging role, and I really<br />

enjoy making sure that all our clients’<br />

property and asset planning<br />

needs are met. There is always<br />

something new to learn.<br />

What’s the best thing about working<br />

at The Law Shop?<br />

It’s a great place to work, where I<br />

can truly do the best job for my clients.<br />

That’s what is most important<br />

to me. I love working with such a<br />

committed team. Everyone here is<br />

down to earth, relatable, extremely<br />

hard-working, but also fun to be<br />

around.<br />

What do you enjoy most about<br />

your job?<br />

Helping people. I know that may<br />

sound trite but in my line <strong>of</strong> work its<br />

<strong>of</strong>ten about assisting people through<br />

transitions in their life, whether that<br />

be buying a house or business or<br />

winding up an estate.<br />

What do you like doing outside<br />

<strong>of</strong> work?<br />

I enjoy walking, reading, watching<br />

Could you share some great advice<br />

you’ve been given?<br />

Be yourself, everyone else is takenthis<br />

comes with courtesy <strong>of</strong> Oscar<br />

Wilde!<br />

Would you recommend your career<br />

to others and if so, why?<br />

Yes, I think there are a lot <strong>of</strong> options<br />

to pursue as a lawyer. There are so<br />

many diverse avenues and specialities<br />

in law. It’s a fascinating field to<br />

work in.<br />

Whether you are buying a property<br />

or setting up a business, if you<br />

need a Will or support with family<br />

matters, the team at The Law Shop<br />

can give you all the information you<br />

need, explain your options and processes<br />

involved, and give you expert<br />

advice on your unique situation.<br />

The Law Shop also makes a<br />

Joanne Douglas Solicitor at The Law Shop<br />

PAULA LINES<br />

LL.B | Director<br />

point <strong>of</strong> being affordable, which<br />

makes them the preferred solicitors<br />

for businesses, families and retirees.<br />

Give them a call on 0800 LAW<br />

SHOP to get in touch. They promise<br />

to make things as easy as can be.<br />

Proudly serving our community from our <strong>of</strong>fices in Rotorua and Tauranga.<br />

ROTORUA<br />

1268 Arawa St<br />

Rotorua<br />

TAURANGA<br />

Virtual Office<br />

ROTORUA<br />

1268 Arawa St<br />

Rotorua<br />

TAURANGA<br />

Virtual Office<br />

201645AL


BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

25<br />

Measles - is your<br />

workplace prepared?<br />

As New Zealand’s worst measles outbreak in more than 20 years<br />

intensifies, thoughts automatically turn to the most vulnerable.<br />

HUMAN RESOURCES<br />

> BY KELLIE HAMLETT<br />

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

She can be contacted on kellie@talentid.co.nz or 027 227 7736<br />

With 963 cases confirmed<br />

nationally,<br />

schools and childcare<br />

centres across the country are<br />

being urged to be vigilant. And<br />

people are being advised to<br />

stay away from public events<br />

if they are feeling unwell.<br />

But, any place where you<br />

come into contact with others<br />

is a potential risk, and the<br />

workplace is no exception.<br />

As an employer, it is your<br />

duty under the Health and<br />

Safety at Work Act 2015 to<br />

take all practicable steps to<br />

mitigate risk and protect workers<br />

at all times from workplace<br />

hazards. And that includes<br />

notifiable diseases - <strong>of</strong> which<br />

measles is one.<br />

Under the Health Act 1956,<br />

if a health practitioner has<br />

“reasonable suspicion” that a<br />

patient is suffering from measles<br />

(or any other notifiable<br />

disease) they must report it to a<br />

Medical Officer <strong>of</strong> Health.<br />

Employers are then notified<br />

to ensure appropriate health<br />

control measures are taken to<br />

reduce the risk <strong>of</strong> it spreading<br />

further.<br />

If an employee is diagnosed<br />

with measles, public health<br />

<strong>of</strong>ficials will assess the level<br />

<strong>of</strong> risk and let you know what<br />

action needs to be taken.<br />

However, it’s always good<br />

to have a plan up your sleeve<br />

before you need it.<br />

Already having a policy<br />

or procedure in place, which<br />

clearly states employee obligations,<br />

will put you ahead <strong>of</strong><br />

the game (as much as possible)<br />

should your workplace be<br />

affected by measles.<br />

A good starting point is to<br />

think about what information<br />

you would need to convey to<br />

staff and how you would go<br />

about doing so, for instance:<br />

• Explaining the risk<br />

• Making sure employees are<br />

familiar with the symptoms<br />

• Letting employees know<br />

where they can get vaccinated<br />

• Reminding employees<br />

<strong>of</strong> the risk to family and<br />

friends<br />

• Outlining any quarantine<br />

requirements<br />

The other side <strong>of</strong> the coin is<br />

to think about how to communicate<br />

this to your customers,<br />

particularly if they may have<br />

come into contact with the<br />

affected employee.<br />

The Ministry <strong>of</strong> Health and<br />

your local public health unit,<br />

such as Toi Te Ora Public Health,<br />

are good sources <strong>of</strong> up-to-date<br />

information and advice.<br />

You also need to think<br />

about what impact it will have<br />

on your business if multiple<br />

staff members were to be <strong>of</strong>f<br />

sick and/or quarantined at the<br />

same time.<br />

How will you keep your<br />

business running smoothly<br />

with less staff? If you have to<br />

<strong>of</strong>fer reduced services, what<br />

will these be? How will you<br />

notify your customers? What<br />

financial impact will it have on<br />

your business?<br />

Hopefully, you will not<br />

need to call on your contingency<br />

plan. But if you do,<br />

being prepared means you can<br />

put more time and energy into<br />

where it’s needed - keeping<br />

your staff safe and well.<br />

TERMS<br />

OF TRADE<br />

CREDIT<br />

CHECKING /<br />

MONITORING<br />

DEBT<br />

COLLECTION<br />

Nick from<br />

EC Credit Control<br />

is the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong>s leading<br />

debt prevention<br />

expert.<br />

CREDIT<br />

MANAGEMENT<br />

TRAINING<br />

FOR A NO OBLIGATION MEETING CALL OR EMAIL NICK TODAY<br />

nick.kerr@eccreditcontrol.co.nz | P: 027 713 2128<br />

0800 EC GROUP | www.eccreditcontrol.co.nz


26 BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

Could your business<br />

handle a PR crisis?<br />

How your business communicates in a crisis<br />

can have a big impact on its reputation and<br />

bottom line.<br />

Whether it’s an incident<br />

at one <strong>of</strong> your work<br />

sites, a major issue<br />

with one <strong>of</strong> your products, or<br />

serious misconduct by somebody<br />

associated with your<br />

company, your public reaction<br />

can either minimise the damage<br />

and put things back on<br />

track, or drive customers away.<br />

A recent incident where a<br />

young Māori waitress at a popular<br />

Auckland Viaduct restaurant<br />

was subjected to racist<br />

comments by the partner <strong>of</strong> a<br />

senior staff member from building<br />

materials company James<br />

Hardie is a prime example.<br />

The waitress was rightfully<br />

outraged by the behaviour,<br />

sharing the story with the<br />

media and alleging senior<br />

James Hardie staff members<br />

sharing the man’s table<br />

laughed at his comments and<br />

did nothing to stop him.<br />

Rather than personally<br />

apologising to the waitress for<br />

the group’s behaviour and outlining<br />

what would be done to<br />

right the wrong, media reporting<br />

<strong>of</strong> the incident suggested<br />

James Hardie’s first response<br />

was simply to write a letter<br />

<strong>of</strong> apology to the restaurant’s<br />

management.<br />

After a night or two featuring<br />

in national newspapers and<br />

on major radio and TV news<br />

programmes, the company<br />

Another common<br />

mistake in a crisis<br />

is overreaction.<br />

It’s important to<br />

be decisive, but<br />

communication should<br />

always be measured,<br />

and any steps taken<br />

explained.<br />

<strong>of</strong>fered to set up a meeting<br />

between the man who hurled<br />

the abuse and the waitress<br />

However, this delay meant<br />

much <strong>of</strong> the reputational damage<br />

had already been done, and<br />

media attention had already<br />

begun to question why James<br />

Hardie had not done more to<br />

address the allegedly complicit<br />

behaviour <strong>of</strong> its senior staff<br />

members staff who were at the<br />

table.<br />

Timing is critical<br />

Timing is a critical element <strong>of</strong><br />

crisis communication.<br />

In most cases it’s wise to<br />

put out a holding statement<br />

immediately, own up to an<br />

issue early and then clearly<br />

communicate the steps you<br />

are taking to resolve the issue<br />

and prevent identical or similar<br />

occurrences.<br />

Another common mistake<br />

in a crisis is overreaction. It’s<br />

important to be decisive, but<br />

communication should always<br />

be measured, and any steps<br />

taken explained.<br />

In the aftermath <strong>of</strong> a measles<br />

case at an NZ Post <strong>of</strong>fice<br />

THE LAST WORD<br />

> BY JAMES HEFFIELD<br />

Director <strong>of</strong> <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> marketing and PR consultancy Last<br />

Word. To find out more visit lastwordmedia.co.nz or email<br />

james@lastwordmedia.co.nz.<br />

in Auckland, the state-owned<br />

enterprise temporarily closed<br />

its main 0800 phone line and<br />

posted a large alert banner<br />

across the top <strong>of</strong> its website<br />

stating that responses to emails<br />

and social media comments<br />

would be delayed.<br />

It was commendable that<br />

NZ Post acted fast and suggested<br />

staff who had not been<br />

vaccinated stay home from<br />

work – measles is no joke – but<br />

the communication to customers<br />

would have left many marvelling<br />

at the organisation’s<br />

lack <strong>of</strong> continuity planning.<br />

Why couldn’t the main 0800<br />

number be diverted to another<br />

site, in Auckland or elsewhere<br />

in New Zealand? And surely<br />

systems should have been in<br />

place to enable staff to respond<br />

to email and social media comments<br />

promptly from home?<br />

NZ Post prides itself on<br />

its reliability and ability to<br />

keep delivering no matter the<br />

weather or situation, but its<br />

response to the measles case<br />

will have done that reputation<br />

some damage.<br />

The best thing an organisation<br />

can do to avoid situations<br />

like this is forward planning.<br />

You don’t need to prepare<br />

for absolutely every eventuality,<br />

but it’s worth having a<br />

crisis communications plan<br />

in place identifying how your<br />

organisation will deal with<br />

major issues, including who<br />

the designated spokesperson<br />

is, and how and where<br />

you will communicate in the<br />

aftermath.<br />

Some time spent on planning<br />

can save a lot <strong>of</strong> pain, and<br />

lost earnings, in the long run.<br />

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Accounting Solutions<br />

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P2447Y<br />

203081AA


BAY OF PLENTY BUSINESS NEWS <strong>September</strong>/<strong>October</strong> <strong>2019</strong><br />

27<br />

Be prepared as life, and business,<br />

is full <strong>of</strong> surprises<br />

While everyone is healthy and things are<br />

ticking over, as usual, most people don’t<br />

give much thought to what would happen<br />

if they become ill and can’t work. But you<br />

can save yourself, and your business, a<br />

whole lot <strong>of</strong> hassle when you plan ahead.<br />

Maybe you’ve arranged<br />

income protection<br />

insurance to make<br />

sure that your family isn’t left<br />

high and dry if things go pearshaped.<br />

That’s great, but from<br />

a business perspective, there’s<br />

more to it. So, what happens<br />

to your business if you or<br />

your business partners get too<br />

unwell to work?<br />

Paula Lines from The Law<br />

Shop explains that if you have<br />

a company and are the sole<br />

director, you should ensure that<br />

the company has appointed<br />

an attorney so if you become<br />

too unwell, someone else can<br />

make decisions on behalf <strong>of</strong><br />

the company.<br />

“It’s a simple document,<br />

but it saves having to appoint<br />

a new director to replace you<br />

when you expect to recover<br />

and be able to take over again.<br />

The power <strong>of</strong> attorney document<br />

you’ve signed for your<br />

personal affairs isn’t going to<br />

give that person power to act<br />

for you as a director,” she says.<br />

“If there is more than one<br />

director, you may want to<br />

ensure that your constitution<br />

allows for one director to make<br />

Paula Lines, Commercial<br />

Lawyer at The Law Shop.<br />

the decisions rather than having<br />

approval and a signature<br />

required from two or more <strong>of</strong><br />

you.”<br />

Then there’s also the consideration<br />

that you may need<br />

to employ someone while they<br />

are out <strong>of</strong> action. Have you put<br />

plans in place to make sure you<br />

can afford that?<br />

What if one <strong>of</strong> you dies, how<br />

does the business keep operating?<br />

How does the deceased’s<br />

interest get paid out? There’s a<br />

lot to consider, and you should<br />

get your ducks in a row well<br />

before things happen. Expect<br />

the unexpected!<br />

What you should do first,<br />

says Paula, is talk to an insurance<br />

broker about getting<br />

appropriate key person insurance<br />

cover, then get your<br />

lawyer to draw up a Buy-Sell<br />

Agreement.<br />

“Key person insurance<br />

is owned by the business,<br />

and the Buy-Sell Agreement<br />

records how the business will<br />

spend the insurance proceeds<br />

to replace the key person, and<br />

to pay that person’s family for<br />

their interest in the business,”<br />

she explains.<br />

“No one likes to think about<br />

these things, but a Buy-Sell<br />

Agreement can save a busi-<br />

ness when one partner dies<br />

unexpectedly, and the others<br />

are scrambling to keep things<br />

going.”<br />

As with anything in business<br />

and life, things are so<br />

much easier when all scenarios,<br />

both good and bad,<br />

are carefully planned for. No<br />

matter what, things will be<br />

less stressful if you have the<br />

required paperwork in place.<br />

If you would like to know<br />

more about how The Law<br />

Shop’s team <strong>of</strong> business law<br />

experts can help you be best<br />

prepared for any situation,<br />

call the friendly team on 0800<br />

LAW SHOP and book in an<br />

appointment. The Law Shop in<br />

Tauranga now operates from a<br />

virtual <strong>of</strong>fice, while the firm’s<br />

Rotorua <strong>of</strong>fice on Arawa Street<br />

remains open as usual.<br />

PAULA LINES<br />

LL.B | Director<br />

ROTORUA<br />

1268 Arawa St<br />

Rotorua<br />

TAURANGA<br />

Virtual Office


Early Avenues Architecture<br />

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SOLD<br />

3 bed 2 bath 2 car<br />

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and lifestyle properties.<br />

OLIVER ROAD ESTATE AGENTS LIMITED | LICENSED REAA 2008

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