May/June 2020 - BAY OF PLENTY BUSINESS NEWS

6 BAY OF PLENTY BUSINESS NEWS May/June 2020
City Leaders Forum – an update
The City Leaders Forum is a well-attended ritual of the business calendar. This year’s lunch
turned into an online event with the onset of COVID-19. Below the three speakers give us
their thoughts on the impact and implications of the virus on the city and the region.
We need to help business lead the recovery
By TODD MULLER,
National MP for Bay of Plenty
I
think there’s been remarkable
collective discipline through the
lockdown. New Zealanders by
and large saw what was happening
overseas, and thought, “we’ll put
our best foot forward” and they did.
In terms of the health response,
the government has done a pretty
good job, helped by the advantages
of isolation and being able to close
our borders. And they have provided
relatively clear and effective
communication.
But on the economic side, the
government has not been focused
enough on the balance sheet stress
of small business in particular. An
understandable focus has been on
wages, but that’s only a part of their
costs. The government has a complete
lack of understanding of how
small and medium-sized businesses
work. The SMEs – especially in the
Bay of Plenty – are going to be what
helps lead us out of the pandemic
downturn.
Creating demand
It’s hugely important to get ourselves
back into a situation where
demand is stimulated in New Zealand.
But we cannot grow our country
out of this hole if we are wholly
reliant on creating things to buy and
sell domestically.
The way we really get out of this
is to get export-oriented businesses
back on their feet.
The government’s view that the
recovery will be state-led is wrong.
It’s got to be business-led and typically
by export-oriented businesses.
If we can get their demand increasing
and their capacity stood up
to meet an increasing demand, then
that flows through to all the service
industries that are domestically focused,
but provide support to all
those exporters.
Many of our exporters have
strong relationships around the
world.
Where it makes sense, we’ve got
to move very quickly to the point
where we can have an open border
with Australia and start a much
easier flow of people and goods between
the two countries.
We need to be really innovative
in how we get our business people
back to China and some of those
other Asian countries early.
Yes, the border might be closed
for broader back and forth travel.
But in the short and medium term,
we’ve got to create an environment
where we can get our business leaders
back up in those countries with
appropriate protections.
I think the fact we seem to be
getting COVID-19 to manageable
levels can give us the confidence to
be able to have those conversations
with the respective governments.
Our export supply chain is working
with essential export businesses
– of which primary produce is a
large part. They have had to change
their onshore supply chains, but the
demand for our food and fibre is
robust.
Yes, there is still significant risk
to our markets if some of those export
economies slump to such a degree
that high value food products
and even high quality commodities
have a softening of demand.
But those markets include
countries that are currently
closed to much of Europe
and the US, so we need
to get up there as soon as
possible. Ending the lockdown
will only work in an
enduring way if people can
be sensitive and apply common
sense. Sooner or later
we are going to go back to
work in an environment where
we will have to maintain physical
distance and hygiene.
The government needs to be
more focused on imbedding in these
principles, not by believing it will
ultimately find the right formula
and checklist to follow.
There are a number of businesses
that unfortunately will find the next
period incredibly difficult and some
will find it impossible to exist in the
way they are currently set up.
We’ve got to look at what you
can do with and for those people to
have the confidence and the assurance
to have another go – to either
restart their business, or recommence
in a different way.
We need to focus on how we
can assist people to reimagine another
career with effective training
and support provided to people who
need it.
Kiwifruit season
progressing well
Time to crack on with
infrastructure
By DAVE COURTNEY,
Chief Grower and Alliances
Officer, Zespri International
New Zealand’s kiwifruit
industry is known for its
collaboration and amidst
the uncertainty of COVID-19,
this season’s efforts have been no
different.
It was very positive to see that
even with the challenges imposed
by COVID-19 on the industry
it was able to start earlier than it
ever has in terms of shipping fruit
to market, with our first chartered
reefer ship leaving Tauranga Harbour
for Tokyo and Kobe in late
March.
As a food producer and an essential
service, the industry has
taken its ability to continue operating
through the Level 4 lockdown
seriously, with new measures
developed and enhanced
hygiene practices in place, to keep
staff safe while working to deliver
the season’s kiwifruit.
This positive trend has continued,
with more trays of fruit
picked, packed and shipped compared
to previous seasons, and
they have also arrived in markets
earlier than in previous
seasons.
At the time of writing, the
industry had already packed
almost half of the estimated
crop for the season, with almost
a quarter of the total
crop shipped to Zespri’s major
markets with Japan, China and
Europe all successfully receiving
fruit. In total we’re expecting a
crop of around 600,000 tonnes
worth of Zespri SunGold and
Green.
Early sales in our markets
like China and Japan have been
positive, and though it’s early in
the season, we have seen strong
demand for fresh produce across
other key markets.
We’ve also had Zespri Red
back in local supermarkets following
the Zespri board’s decision
to commercialise this variety
last year. Zespri Red has also returned
to Singapore this season,
and we have just delivered our
newest variety to Japanese consumers
for the first time.
In terms of sales there is still
a long way to go, with just more
than five percent of the crop sold
at the time of writing. While the
positive start has been great, we
recognise that given how quickly
the world changes in response to
COVID-19, there will be ongoing
challenges for the rest of the 2020
selling season.
By GARRY WEBBER,
Mayor, Western Bay of Plenty
In early February, when I was
asked to speak at the 2020 City
Leaders Lunch, COVID-19
wasn’t on many people’s radar.
However, by the time of the event,
March 20, it surely was and when
I was asked to pen this update for
the Bay of Plenty Business News
on April 17, its full impact had really
hit home.
The nation and our region has
been dealt a body blow that is
going to be felt for a long time,
despite the encouraging news
the lockdown is being gradually
eased.
Our council is working really
hard to identify the part we can
play in the national process of rebuilding
communities. Since central
government announced its $50
billion funding package, our staff
have worked tirelessly to submit
a list of 16 projects at a total cost
of $515 million bid to the Crown
Infrastructure Partners Fund. That
bid is testament to our commitment
to help provide an immediate
stimulatory kick start effect to our
local economy.
For each project to be considered,
we had to show that it
would create local jobs, was shovel-ready,
would provide a public
benefit, modernise the economy
and be worth at least $10 million.
As a well-managed provincial
council and member of the
SmartGrowth group, the Western
Bay of Plenty District Council is
recognised as well-managed and
has a track record of working constructively
in partnership
with others.
Additionally, our bid
is part of a coordinated
Bay of Plenty regional
package that will support
the economic recovery
of New Zealand.
The projects are consistent
with our Long Term
Plan, the SmartGrowth
Strategic Plan and Urban
Form and Transport Initiative
(UFTI). Together they aim to deliver
a step change in housing,
transport and place-making for the
sub-region’s communities.
Our top priority is the Rangiuru
Business Park where we have
applied for $134.8 million to open
up the fully consented 148 ha
Business Park, which will create
economic opportunities for many
years to come. It is significant in
size and ready to start.
Second, is the Regional
Healthy Housing Programme.
This is an extension of the Healthy
Whare project, which will allow
more homes to be upgraded to
be healthy, affordable and secure
homes.
We have also applied for just
more than $100 million for the
Katikati Bypass, which is designated
and we have done a lot
of analysis on over the last four
months
I’m hopeful that we will be
successful, but I am also a realist
and accept that we are competing
with every other council, hospital
board, education dept and private
business and therefore nothing is
in the bag. Accordingly we have
not made any promises to our
communities to avoid over- promising
and under-delivering.
If successful in part and linked
with the earlier announced $900
million Tauranga Northern Link,
it would be a huge win for our district
and will ensure that those who
have been negatively impacted by
COVID-19 will have an opportunity
to get back into the workforce
quickly and productively.
As Rahm Emmanuel said:
“You never want a serious crisis
to go to waste”, and it would be
remiss of our council not to be
part of the COVID-19 response
that this government is offering to
fund.
At SmartGrowth we have been
working on strategic projects to
lift our district out of its housing
and congestion issues for more
than 15 years. Now with this funding
support from government, the
time is right for us to throw of the
shackles and take those brave decisions.
It won’t be easy, but it is
the right thing to do.