Bay of Plenty Business News - September/October 2020

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

SEPTEMBER/OCTOBER 2020 VOLUME 4: ISSUE 9

WWW.BOPBUSINESSNEWS.CO.NZ

FACEBOOK.COM/BAYOFPLENTYBUSINESSNEWS

KIWIFRUIT

IN THE BAY

The Kiwifruit sector bounced

back big time after Psa and for

some years has been a crucial

part of the Bay’s economy. We

look at Covid-19’s key impacts,

especially on employment.

Photo/BOP Tourism/Love Kiwis

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2 BAY OF PLENTY BUSINESS NEWS September/October 2020

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Talk to us about how we

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2degreesbusiness.co.nz | 0800 022 002

Coverage will vary due to factors including location,

topography and other interference.

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COVER STORY – KIWIFRUIT IN THE BAY

September/October 2020 BAY OF PLENTY BUSINESS NEWS 3

Photo/BOP Tourism/Love Kiwis

covid’s impact on seasonal

workers

The latest Covid outbreak has only heightened uncertainty around labour supply for the

kiwifruit sector, with both Recognised Seasonal Employer (RSE) and backpacker staff left

in limbo.

By RICHARD RENNIE

The past season had a

14,400 cap on RSE

workers coming into

New Zealand from the Pacific

Islands, of which about

2200 were destined for Bay of

Plenty kiwifruit sector.

However, the region ended

up with 1200 less than expected,

and some of the workers

that did make it, remain

stuck until repatriation flights

can return them home.

Nikki Johnson, New Zealand

Kiwifruit Growers Incorporated

CEO said that at this

stage it was not possible to discuss

RSE or working holiday

staff numbers for next season,

with negotiations continuing

with government.

Meanwhile, there were

mixed feelings among RSE

workers still here about returning

home. “There will be a

number who will want to stay,

and some who want to go,”

said Johnson.

“But there are no imminent

flights on the horizon for Vanuatu,

although there may be a

NZ Defence Force repatriation

flight planned.”

The government has extended

RSE working visas

until late October and waived

the five-month stand down between

leaving and returning to

New Zealand for the new season.

About half the country’s

RSE workers are deployed

in the apple and pear sector,

while kiwifruit and viticulture

account for the remainder in

almost equal numbers.

[Horticulture NZ is]

in active discussions

with government

about getting greater

flexibility on visa

renewals, for both Work for those remaining

RSE and holiday visa Meanwhile, the challenge

workers.”

for the several hundred RSE

workers still estimated to be in

– Mike Chapman the Bay of Plenty was to pro-

Continued on page 5

vide work for them, something

Johnson said was not too great

an issue.

On average, RSE workers

who return to New Zealand

after earlier experience can

expect to earn a premium over

first timers, with returnees averaging

$20.61 an hour, compared

to $18.87 for first timers.

The highest paying skills

are winter pruning, where

an experienced pruner on an

hourly rate can expect to average

$22.24, comparable to

a permanent local, who earns

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4 BAY OF PLENTY BUSINESS NEWS September/October 2020

From the editor

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CONTACT INFORMATION

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Bay of Plenty Business Publications specialises

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print media services.

As I have commented

before in this space, the

next election may be

much closer than the Labour

landside that many commentators

have been predicting.

We should remember that

this election is not just a judgement

on the next government’s

ability to help us survive a

pandemic.

As examples around the

world have demonstrated, relatively

few governments worldwide

would claim that they

have nailed this pandemic. We

have done better than many –

aided by our small population

size and relative isolation.

But the election will ultimately

be decided on the perceived

competence of the contending

parties in developing

and executing policy.

It is sometimes overlooked

that the current government is

not a Labour Government – although

it is increasingly presented

as such by its leaders –

but a coalition government put

into power with the Greens by

the intervention of New Zealand

First leader Winston Peters.

It is not unusual in being

a coalition.

Prior to the last election

National had governed since

2008 in a minority government

with confidence and supply arrangements

with ACT, Maori

and United Future.

But the current governing

coalition was the first in MMP

history where the most popular

party was not part of the

Government.

No-one should ever write

off Winston Peters before polling

day, but he is currently

flagging in the polls.

And he appears to be aggressively

distancing himself

from the government that

made him foreign minister and

as part of its deal provided a

$3 billion Provincial Growth

Fund for NZ First MP Shane

Jones to dispense.

The fund was recently the

subject of pointed questions

from the auditor-general as

to whether it was fulfilling its

Hundreds of complaints have emerged

from residents, workers and farmers who

have been unable to move legally around

because of inconsistencies about where

Level 3 areas merge with those in Level 2.

stated aim of permanent job

creation.

The prime minister scores

very highly with New Zealanders

in the empathy stakes

and has risen very well to such

major national disasters as the

appalling mosque killings, the

White Island eruption and indeed

the onset of the current

pandemic meltdown.

But until Covid-19 blighted

the country, the current government

was not regarded

by everyone – and certainly

not generally in the business

community – as being notably

competent. Nor, with a few

honourable and now overworked

exceptions, did it have

a strong lineup of ministers

and bank benchers.

The problem the prime minister

– and other world leaders

– face now is, unfortunately,

the same as at the beginning

of the year. While it is relatively

simple to lock down an

economy, it is extremely hard

to get it up and running again.

Yes, large sums of money have

been thrown at the economy in

terms of wage subsidies, which

have been much appreciated

and indeed have helped many

businesses to survive.

The National Party has

certainly had its problems in

recent months, but it seems to

be settling down under new

leader Judith Collins. But there

is a sense – at least when this

article was written – that the

wheels on the prime minister’s

bus have become just a little

more wobbly.

Her public polling remains

unimpacted. However, troubling

examples of incompetence

have begun to surface.

The premise of the lockdown

approach was the government’s

assertion that, by all

means be careful, but the public

didn’t need to worry because

“we’ve got this”.

The reality is that they

hadn’t. Yes, the government

had issued instructions that

testing of key workers had to

happen to secure our vulnerable

international borders –

but it didn’t happen. And that

wasn’t noticed or followed up

by the government until the

media brought the problems to

its attention.

The recent re-imposition of

the partial lockdown has naturally

unnerved the public. It

was of course always unrealistic

to hope that there would be

no new Covid-19 surges. But

at the very least, the electorate

David Porter

needed to be able to believe

that what the government said

it had done, was actually the

case.

Never mind international

border control issues, the government

has apparently even

had problems policing the

border between Auckland and

the rest of the country in the

latest lockdown. Hundreds of

complaints have emerged from

residents, workers and farmers

who have been unable to

move legally around because

of inconsistencies about where

Level 3 areas merge with those

in Level 2.

A report this month by the

Rutherford consultancy, based

on its most recent survey,

suggested negative sentiment

about the government was up

10 percent, and toxic social

media comment was rising as

people vented frustration at the

re-imposition of restrictions.

The prime minister’s inclusion

of senior government

bureaucrats in a Labour Party

video, which skirted electoral

restrictions if not actually

breaking them – was also a bad

look. The video was quickly

taken down and changed after

opposition complaints, essentially

an admission that it was

a mistake.

Credibility is hard won and

easily lost. There are bound to

be more problems for any government

dealing with Covid-

19. But what we need is an

efficient, coordinated system

that allows us to go about our

business safely, with consistent

across the board application of

restrictions, and minimum disruption

to the businesses struggling

to stay alive.

The well-worn phrase “a

week is a long time in politics”

is usually attributed to the late

British prime minister Harold

Wilson, though it remains unclear

whether he was actually

the first to say it.

But it is, like all clichés, a

truism. It might be even more

appropriate to recall the words

of British Liberal politician

Joseph Chamberlain, who is

recorded in 1886 as having

said: ‘In politics, there is no

use in looking beyond the next

fortnight.”

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COVER STORY – KIWIFRUIT IN THE BAY

September/October 2020 BAY OF PLENTY BUSINESS NEWS 5

covid’s impact on seasonal

workers

From page 3

$22.30 an hour for the same

job.

However, relocating some

of the remaining 7000 from the

rest of New Zealand to undertake

work here in the Bay was

challenging when they were

not sure if they would be leaving

New Zealand or not.

“The next main peak for

work is summer, and we will

be working to draw in more

New Zealanders. At present

the unemployment rates do

not give us much to work with,

and we do not know what will

happen when the wage subsidy

comes off.”

The winter pruning season

is nearing its conclusion and

initial fears a shortage of RSE

workers would impede progress

has faded as the industry

had rallied together as spring

nears. A $250,000 government

grant to train more pruners

yielded 25 locals for the first

training intake.

Johnson said the kiwifruit

sector has done a good job of

boosting the number of local

workers in the segment, with

about 50 percent of seasonal

jobs going to them – about

8000 people.

She said a concerted effort

in the past two years to focus

more upon locals to meet seasonal

demand has met with

good success, and would continue

with renewed focus for

the next harvest season.

Working holidayers’

contribution

Holiday working visa holders

usually provide 2000 staff for

the kiwifruit season, and are invaluable

for their preparedness

to move around, something

that may not be as practical for

New Zealand workers living

outside the Bay of Plenty.

It is estimated there are

21,000 working holiday visa

holders in New Zealand.

Mike Chapman, chief executive

for Horticulture NZ said

the organisation was in active

discussions with government

about getting greater flexibility

on visa renewals, for both RSE

and holiday visa workers.

Over 13,000 people have

signed a petition calling for

an extension to the six-month

working visa, which government

initially extended

for such workers to September

25.

However, for many getting

home by then is looking less

likely, and for others the prospect

of staying in New Zealand

and continuing to work is more

appealing.

Chapman acknowledged

there had been little contact

to date with new immigration

minister Kris Faafoi.

He said the industry had

been pushing to have the RSE

worker cap for the new season

lifted to 16,000 from its present

14,400 to help meet growing

demand from apples and

kiwifruit for more labour.

Richard Bibby, chairman of

the Masters Contractors Association

that manages seasonal

staff, said the silver lining out

of Covid has been the RSE

workers who are still here,

given how uncertain it was

about getting any more back

for the new season.

Uncertainty over visa extensions

remains the single

biggest concern, and one he

hoped the new minister for immigration

would sort soon.

Rabobank report

identifies need for

new kiwifruit capital

The strong surge in kiwifruit volumes in coming years is bringing

a need for more capital to be invested in the post-harvest sector

and new ways of financing it.

Photo/BOP Tourism/Love Kiwis

The next main peak for work is summer,

and we will be working to draw in more

New Zealanders. At present the

unemployment rates do not give us much

to work with, and we do not know what

will happen when the wage subsidy

comes off.” – Nikki Johnson

By RICHARD RENNIE

A

Rabobank report estimates

the sector will

need an investment

injection of $750 million

within three years to cope

with a near doubling in fruit

volume between now and

then.

Zespri chief financial officer

Richard Hopkins said

the marketer’s five-year outlook

document identifying

challenges and opportunities

is provided regularly to the

industry.

The 2020 season processed

155 million trays.

Much of the surge in volume

has come from the growth in

SunGold plantings, totalling

700 new ha per year.

The fruit is also proving

to be a heavy cropping variety,

capable of generating

over 15,000 trays a ha.

Rabobank senior horticultural

analyst Hayden Higgins

said the main sources

for that investment would be

debt and shareholder equity,

and he was encouraged by

the healthy balance sheets

most post-harvest processors

had to help fund the

expansion.

Continued on page 6


6 BAY OF PLENTY BUSINESS NEWS September/October 2020

COVER STORY – KIWIFRUIT IN THE BAY

Rabobank report

identifies need for

new kiwifruit capital

From page 5

Apata chief executive Stu

Weston said Rabobank’s estimates

were accurate, and

the burden of expansion was

shared by all processors.

Apata processes about

12 percent of total fruit

harvested.

Weston said calculating

growth in fruit was a relatively

straightforward mathematical

equation, compared

to estimating volume growth

in some other primary sectors,

such as dairy production.

“This is particularly the

case with SunGold – it has

less winter chill reliance and

pollinates well, and it is easy

to see five years out where we

will be.”

On average, every additional

750ha of new licenced

land sold by Zespri results in

an increase of 10-12 million

trays of SunGold fruit.

Debt not a bottomless pit

While debt was the easiest

source of finance for the sector

it was not a bottomless pit,

said Weston.

He noted a conflict between

orchardists who may

be prepared to put money into

the sector to expand infrastructure,

and those who may not.

“Those larger younger

growers would like to, but

already have committed to

The sensible thing is for growers to own

the post-harvest processing as they do

the marketer, and I expect the majority of

investment will come from growers. They

won’t be that keen to give it to outside

interests.” – Stu Weston

investment in their orchards,

while the older mum and dad

investors have the funds, but

don’t want to at that stage of

their life.”

However, all orchardists

had one thing in common and

that was a reluctance to see an

injection of external capital

from large outside shareholders.

“The sensible thing is for

growers to own the post-harvest

processing as they do the

marketer, and I expect the majority

of investment will come

from growers,” said Weston.

“They won’t be that keen

to give it to outside interests.”

One solution could be for

post-harvest companies to

have one class of share open

to all investors, both growers

and non-growers, with processors

charging a higher service

fee for processing fruit.

The additional revenue

would feed through to higher

dividends, encouraging more

share purchases and with that

more capital available for

expansion.

“There is no free lunch, the

service pricing on processing

will have to become higher.”

The Rabobank report

maintains that in theory growers

could fund the entire $750

million, an amount Weston

said was not unsurmountable

when compared to the capital

value of orchards.

But Rabobank estimates

the post-harvest sector will

probably need to source about

a third, or $250 million as equity

funding.

“But by hook or by crook,

the fruit cannot be left on the

vine and we have to figure out

a way to fund the expansion

that all post-harvest operators

face,” said Weston.

Rabobank’s Hayden

Higgins: Encouraged

by the healthy balance

sheets of most postharvest

processors.

Photo/Supplied.

Bay iwi refinery to extract value from

hort waste

A refinery to distill high value bioactive molecules will be built in Bay of Plenty in conjunction with iwiowned

Te Awanui Huka Pak to capitalise on a rapidly growing segment of the food ingredients industry.

By RICHARD RENNIE

Ligar’s Nigel Slaughter:

The Bay makes good

sense as a location.

Photo/Supplied

Te Wahi Ao, a Te Awanui

Huka Pak subsidiary, has

signed a partnership with

Waikato biotech firm Ligar to

provide waste-stream organic

material from its kiwifruit and

avocado operations as a source

for molecule extraction.

Bioactives are specific

molecules extracted from organic

matter for specific purposes,

which can be for their

taste profiles, nutraceutical

value and nutritional value.

The molecules were often

higher in the skin of fruit,

something frequently otherwise

disposed of with no value

extracted.

The global bioactives industry

has been identified as

having a value of US$51 billion

by 2024 and knowledge

about the molecule’s potential

is expanding rapidly. Recent

examples include utilising

bioactives extracted from

hemp cannabis plants in replenishment

drinks.

The technology developed

by Ligar enables greater volumes

of the molecules to be

extracted, helping lower the

cost of what has typically been

a high cost exercise yielding

low volumes of molecular

product.

Excellent opportunity

Te Awanui Huka Pak chief executive

Te Horipo Karaitiana

said the venture was an excellent

opportunity to put iwi at

the front of a rapidly developing

high value sector, similar

to what the company’s early

involvement and decision to

stick with kiwifruit meant.

With its ready supply of kiwifruit

and avocado material,

Te Awanui Huka Pak could see

an ample supply of material

available, aided by access to

material from major post harvest

operator Seeka, in which

the group has a significant

shareholder stake.

Ligar founding chief executive

Nigel Slaughter said

early stage “bio-prospecting”

has already identified some

potentially useful organic

compounds in kiwifruit.

Because of the location to

a good waste-stream source

on iwi land, he said the Bay of

Plenty made good sense as a

This initiative has potential to grow a

new generation of great jobs for Maori.”

– Te Horipo Karaitiana

location for the refinery.

The company hoped to

develop a bio-refinery network

around the country, all

located in the vicinity of other

sources, including vegetable

waste in Hawke’s Bay and

Gisborne.

The refinery would be the

focus for what Slaughter said

would be the world’s first indigenous

innovation park.

Iwi are also excited by

the possibility of employing

Ligar’s technology to

help extract molecules with a

uniquely New Zealand content,

utilising native flora that

may contain medicinal and nutritional

properties.

Karaitiana said the initiative

was a perfect fit for the

Te Wahi Ao subsidiary as an

innovation company, focused

on growing revenue by expanding

and deepening the impact

of horticultural activities,

and growing Maori enterprise

ability.

“This initiative has potential

to grow a new generation

of great jobs for Maori,” he

said.

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Thanks to our donors,

Acorn has contributed over

Join us in building a stronger

community together.

www.acornfoundation.org.nz

07 579 9839

September/October 2020 BAY OF PLENTY BUSINESS NEWS 7

Acorn’s financial

self-sufficiency

means more money

for local charities

The significant growth in Acorn Foundation distributions over the

past year to more than $1.7 million has been driven primarily by the

resettlements of trusts and an increase in local business support for

charitable organisations, says general manager Lori Luke.

By DAVID PORTER

Including the latest contributions,

Acorn donors have

now cumulatively distributed

more than $8.3 million

since 2003 to causes in the

region. Luke said 157 charitable

organisations across New

Zealand – with a strong focus

in the WBOP – have received

grants throughout the year.

Distributions outside the Western

Bay of Plenty have been

specified in donor wishes.

“These community contributions

come from estates,

living gifts, trust resettlements,

Community Group funds,

Giving Circles and Workplace

Giving programmes,” said

Luke.

“Our team truly appreciates

the opportunity to make these

distributions on behalf of our

donors who have such a big

heart for our community. The

recipients that have been selected

this year provide essential

services to our region, and

we are delighted that we can

help our donors contribute to

their efforts.”

This year, the addition of

seven Bob and Joy Owens

Scholarships that have moved

to Acorn via the resettlement

of the Owens Charitable Trust

and two new scholarships for

students at the University of

Waikato Tauranga campus,

means that over $310,000 will

be paid out via scholarship and

award programmes.

Over the years, 266 charities

have been supported by

Acorn donors. Notable recipients

this year include Omanu

Surf Livesaving Club, which

has received over $43,000

from the Karen Pensabene

Fund, and Waipuna Hospice,

which has received more than

$104,000 from the contributions

of 11 different donor

funds. With local charitable

organisations impacted by the

effects of Covid-19, both from

a reduction in funding available

and in an increase in service

demand, Acorn say they

appreciate donors more than

than ever.

The Salvation Army’s

Wendy Lobb said the organisation

continued to be humbled

and grateful for the funds,

which she said were vital in

assisting in its frontline work.

“And in particular this year,

knowing these funds provide

us with the opportunity to add

The recipients that have been selected

this year provide essential services to

our region, and we are delighted that we

can help our donors contribute to their

efforts.” – Lori Luke

the much-needed resource of

dedicated peer support to our

team working in the addictions

space in Tauranga,” she said.

Varied donor support

Although Acorn is well-known

for receiving gifts via endowment

funds in wills, there are

With such a strong increase in

distributions relative to a year ago,

we know that the Acorn Foundation is

making a significant difference to the

lives of people here in the Western Bay of

Plenty.” – Lesley Jensen

also a number of other ways

that their donors support the

community. Craigs Investment

Partners donated $150,000 last

Christmas, which Acorn distributed

to organisations across

New Zealand on their behalf,

and Craigs, KPMG and BOP

Regional Council have all established

Workplace Giving

programmes for their staff.

Other local contributions

this year included: employees

and partners at Cooney

Lees Morgan have long raised

money for their corporate fund;

ASB Tauranga contributed

money to help Good Neighbour

buy new equipment;

TECT beneficiaries have donated

rebates worth more than

$68,000 to the Acorn Vital

Impact Fund over the past two

years; and many local supporters

contributed to the Covid-19

Rapid Response Fund to help

organisations providing vital

support during the lockdown.

In addition, dozens of regular

givers donate to the more than

40 Community Group funds

Generosity.

Encouraging

Corporate Giving programmes

& Giving Workplace new Our

increase community

Acorn

helped have

support by 50%.

care about?

you do What

managed by Acorn, helping

those organisations move towards

sustainable long-term

funding.

Acorn Foundation chair

Lesley Jensen said Acorn appreciated

the support from

donors. “With such a strong

increase in distributions relative

to a year ago, we know

that the Acorn Foundation is

making a significant difference

to the lives of people here in

the Western Bay of Plenty. We

are honoured to represent our

donors.”

Acorn has contributed over

donors,

our to Thanks

$1.75M to our region this year.

community together.

building a stronger

in us Join

07 579 9839

www.acornfoundation.org.nz

ADVERTORIAL

Acorn Foundation

distributions increase

50% this year

The Acorn Foundation recently

announced a record

$1.75M in distributions for

the past year, up more than 50%

over the previous year.

With the Acorn fund reaching

$36.4M more individuals, trusts,

community groups and businesses

have played a role in supporting

the Western Bay of Plenty community

than ever before.

Although Acorn is well-known

as the organisation where you can

leave a gift in a Will, there is no

one-size fits all when it comes to

supporting our region. Additional

ways to contribute include:

• Corporate Funds

• Workplace Giving via employee

payroll donations

• Regular giving to a favourite

cause in one of the many Community

Group Funds

• Giving Circles that bring together

a group of friends or

colleagues to give collectively

• TECT rebate donations to the

Acorn Vital Impact Fund, distributing

to organisations who

work locally in the areas of

greatest need

• Trust resettlements of family

or community trusts

Several local businesses and

councils are involved in giving

back to the community through

Acorn. Craigs Investment Partners

gives nationally to communities

in which it maintains

Encouraging

Generosity.

Our new Workplace Giving &

Corporate Giving programmes

have helped Acorn

increase community

support by 50%.

Thanks to our donors,

Acorn has contributed over

$1.75M to our region this year.

Join us in building a stronger

community together.

www.acornfoundation.org.nz

07 579 9839

offices through Acorn, while the

KPMG Tauranga office has both a

Corporate Fund for perpetuity

and is involved with pass-through

Workplace Giving for staff and

partners.

The local NumberWords’n

Works office has established a

Corporate Fund, while the executive

team at the BOP Regional

Council have recently started a

Workplace Giving programme

that will contribute to causes

across the region.

Consider joining Acorn to build

a stronger community together.

www.acornfoundation.org.nz

What do you

care about?

Generosity.

Encouraging

Corporate Giving programmes

& Giving Workplace new Our

have helped Acorn

increase community

support by 50%.

What do you

care about?

Lesley Jensen

and Lori Luke

(L-R) – Acorn

Foundation

$1.75M to our region this year.


8 BAY OF PLENTY BUSINESS NEWS September/October 2020

The global pandemic continues

Investment market update (for the quarter ended 31 July, 2020)

The US has struggled to contain a widespread outbreak across

many states, with new outbreaks having also occurred in parts of

Europe, the UK, Australia, and Japan.

WHAT TO DO WITH YOUR MONEY

> BY BRETT BELL-BOOTH

Investment Adviser with Forsyth Barr Limited in Tauranga, and

an Authorised Financial Adviser. Phone (07) 577 5725 or

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

While efforts to contain

the pandemic

have hit a number of

sectors very hard, the massive

monetary and fiscal response

to fight the consequences of

the virus have lifted many financial

asset prices to all-time

highs.

Still, the road to a full recovery

will likely be long and

difficult.

The widespread plunge in

economic activity during the

second quarter of the year,

with US GDP growth dropping

the largest amount ever for the

three months to 30 June, indicates

just how important the

response from central banks

and politicians will continue

to be in the months and years

ahead.

Unsurprisingly, the biggest

hit to activity was a result of

households reining in their

personal consumption (outside

groceries and alcohol),

as lockdowns and business

closures crippled discretionary

spending.

Also, not surprisingly, the

increase in online spending

boosted demand for services

offered by the likes of Amazon

and Mainfreight.

While the virus is likely

to result in some permanent

changes to the global economy,

its impact on financial

markets may end up being

more transitory. Covid-19 may

become just one of many risks

that need to be priced-in, particularly

if we have to learn to

live with it for some time.

While the virus does continue

to spread globally, mortality

rates are declining and

confidence is increasing that

treatments will become more

effective, with progress reported

in numerous vaccine

trials around the world.

This increases the sense

that Covid-19 may become

“manageable”, as indicated by

the re-opening of some borders

in the northern hemisphere.

V-shaped recovery

The impact of economic lockdowns

on consumer spending

has been alleviated by wage

subsidies, mortgage holidays,

and supplementary unemployment

payments.

While not being able to

travel overseas on holiday,

consumers have spent on cars,

art, house renovation, furniture

and appliances, and dining-out.

Globally, this has led to a

V-shaped recovery in manufacturing

and logistics (storage

and distribution) in many

economies.

Those countries that imposed

the harshest lockdown

measures seem to have recovered

the quickest, as we have

seen from stronger than expected

activity data in Europe

and China.

However, millions of people

around the world have become

unemployed. Thousands

of businesses continue to struggle

and many will likely close

as financial support expires.

So while the performance

of the sharemarket and the response

by consumers is consistent

with a V-shaped recovery,

the positive sentiment could

slow or even stall in the coming

months, depending on the

course of the virus.

One thing we can rely on

is the commitment by central

banks to keep interest rates at

current historic lows until the

global economy has weathered

the viral storm and is on track

to meet employment and inflation

targets.

Central banks have unlimited

power to keep printing

money to purchase financial

assets and will likely keep

doing so while the negative

impacts of Covid-19 on economic

activity continues.

With interest rates pinned

down near zero, equities and

real assets such as property

will continue to find support

from investors with little or no

alternative for their cash.

Stay prepared

Actions from governments and

central banks have stabilised

financial markets. But there is

still plenty of uncertainty, and

as we’ve seen over the past few

months, sentiment can change

quickly. There is potential for

further market volatility ahead.

The past few months do

reaffirm some important messages

for investors.

We don’t believe it’s possible

to consistently time or

predict short-term movements

in markets. Markets oscillate

between greed and fear.

And they don’t need a positive

economic backdrop to

bounce.

Today, markets expect a

“less bad” outlook than they

did in March. The low returns

on offer from cash and bonds

will continue to encourage investors

into equities.

We all prefer positive over

negative news. Investors generally

feel better when markets

go up, and it can be disconcerting

when they go down.

But unfortunately volatility

is something investors will always

have to bear.

The key is managing your

response to it. Working with

your Forsyth Barr Investment

Adviser to formulate and stick

to an investment plan with

clear objectives, is one of the

best ways to do so.

This column is general in nature

and is not personalised investment

advice. This column

has been prepared in good

faith based on information obtained

from sources believed to

be reliable and accurate. Disclosure

Statements for Forsyth

Barr Authorised Financial Advisers

are available on request

and free of charge.

What you need to do to get bank funding

Covid-19 has meant that securing bank funding to buy

businesses is harder then it was. This is because banks have

understandably looked to reduce risks.

BETTER BUSINESS BUYING

> BY TOM BESWICK

Director at Ingham Mora Chartered Accountants in Tauranga, is a

business advisor who specialises in buying and selling businesses.

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

In order to get funding from

them to buy a business, there

are three key areas that come

into it: the equity you will put

in and the deal structure you

propose, the plan that you have

and your own “person risk”.

Equity

The equity that you have available

(and are prepared to put

in) is the most critical part of

any bank deal. It is helpful

early on in a deal to work out

the funding you will need as

there are limits to what banks

can lend out.

For example, owner-occupied

houses are usually limited

to 80 percent of the value.

Generally, banks cannot lend

more against than 50 percent

of the goodwill.

Plant and equipment can

usually be borrowed against

relatively highly. Once you

know what this adds up to and

have added any cash you are

putting in, you will know what

your limits are. Note this does

not mean it is affordable at this

stage – just whether the deal is

potentially bankable.

The Plan

Banks want to understand the

risks and opportunities of the

business. They need to know

why the business is a good investment

for them.

Part of the equation is

demonstrating how the business

has performed in the past.

And importantly now you

need to explain why the past

is still a good guide on future

performance.

Many businesses have been

(and will continue to be) affected

by Covid-19. Banks

need to know your plan to deal

with this challenge. So having

Having a business plan that you can

understand and explain, and that the bank

can feel confident is deliverable, is critical.”

a business plan that you can

understand and explain, and

that the bank can feel confident

is deliverable, is critical.

Of course, part of the equation

in getting bank finance is

proving affordability.

The bank will not fund you

into something that you cannot

pay back. You will need robust

forecasts that directly tie into

the business plan prepared by

a chartered accountant.

Importantly, the bank needs

to understand the assumptions

and have confidence in what

has been prepared.

I helped a business buyer

recently get funding who came

to me after their first accountant

was unsuccessful getting

funding over the line. The

accountant had prepared a

good-looking forecast – but it

was not clear to the bank that

they had really understood the

cash needs of the business.

Person risk

This is now a very real factor.

Banks are putting more

weight in credit decisions on

your personal history, how

you present and the quality of

your advisers.

If you go to the bank and

you have not yet involved

your accountant, etc, you may

not present in the best way

possible.

If you build a good team of

advisors around you, the banks

take comfort from that as they

know you will be getting reliable

advice.

Using the right people can

also mean the banks are able

to relax slightly in their review

process. Bankers are busy people

– and if you can present

something in a format they

are used to and in a way they

understand it saves them time,

and builds their confidence

that you will deliver what you

say you will.

Finally, be aware that getting

bank finance takes more

time now – a 15-day due diligence

clause is unlikely to

work for many deals (only for

buyers with plenty of equity).

I suggest extending this to at

least 25 working days.

If you give yourself time to

prepare a proper plan and build

a team of reliable advisers, you

will have a good chance of getting

that finance approval.


September/October 2020 BAY OF PLENTY BUSINESS NEWS 9

How franchisors earn

their keep, and their

franchisee’s respect

There are a number of traditional reasons why the pundits such

as myself spruik the virtues of franchising versus a stand-alone

or independent business model. Top of the list has to be the fact

that franchised businesses have a higher success rate versus the

independent business.

For many, that fact would

simply be enough in itself.

In my view the

three core drivers of this statistic

stem from brand, purchasing

power and the superior

systems often associated with

a well-developed franchise

system.

Factors such as the brand,

market position and marketing

allow a single franchise business

unit to project itself as

larger than it actually is, capturing

market share, sales and

profitability accordingly.

Group purchasing power

harnesses the power of many,

delivering to the individual

business savings that ultimately

translate to margin and

increased profitability. And or

the ability to be more price

competitive and in turn capture

market share.

Franchising is based on a

model of doing or performing

a business function, so it’s no

surprise that often a franchised

business has operational and

business systems and processes

far superior to a similar

independent business unit.

New approaches in

Covid-19

In 2020, all of these elements

are as relevant as ever and

well-developed, well-supported

franchise systems will

almost certainly exhibit all

three.

However, the pandemic

and the ensuing market and

economic disruption has created

a need and opportunity

for good franchisors to work

with and for their franchisees

and systems in some entirely

new ways.

There are numerous stories

and examples of franchise

systems being able to innovate

and implement change in

a very short and challenging

period.

Innovations have ranged

from developing and introducing

complete online shopping

platforms, to virtual store and

business meetings with franchisees,

through to product and

delivery “pivots” to either fill a

revenue hole or capitalise from

new market opportunities.

For bricks and mortar-based

businesses the April-May (and

now August-September in

Auckland) lockdown, created

literally an untenable situation

for many including franchisees

where they had rental obligations

with no income.

The Government’s complete

inaction and flip-flopping

has meant that franchisors

have had to perform the role of

tenancy advocate and negotiate

with landlords, whether the

franchisor held the head lease

or not.

In many cases this has literally

saved franchisees from

going broke. I know many

franchisors that have spent

100’s of hours both publicly

and privately advocating for

their franchisees.

And finally, there are some

There are

some roles that

franchisors never

anticipated that

they would need

to be undertaking,

as the cheerleader,

the resilience coach

and the lifestyle

coach.”

roles that franchisors never anticipated

that they would need

to be undertaking, as the cheerleader,

the resilience coach and

the lifestyle coach.

Many franchisors during

lockdown were quick to perform

business-focused checkins

with franchisees, but as the

lockdown dragged on, with no

business, this check-in role developed

into one of resilience

FRANCHISING

> BY NATHAN BONNEY

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

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

coach, keeping in contact with

the franchisees and their families

to ensure they did not feel

isolated and alone.

I have heard of group Zoom

chats, after hours virtual drinks

and even a franchisor that sent

care packs to franchisees with

young children, realising that

between home schooling and

limited purchasing opportunities,

something new was going

to quieten the masses.

The well-worn franchising

cliché, “be in business for

yourself, not by yourself” has

never rung more true.

Good franchisors have and

are standing by with their franchisees

in challenging times,

often undertaking and performing

functions well outside

their contractual and traditional

scope of works.

Izzard to

find better

legal advice

Introducing new partner Campbell Izzard

Bay of Plenty exporters are sure to welcome the arrival of commercial

law specialist Campbell Izzard at Cooney Lees Morgan. Izzard joined the

partnership at CLM on 1 July and strengthens the firm’s ability to offer

legal expertise to local companies of the highest international standard.

Campbell speaks fluent Mandarin and has practised law in China,

Australia, Hong Kong and New Zealand for almost 20 years.

Read Campbell’s full bio at cooneyleesmorgan.co.nz/campbell-izzard

or scan this

QR code with your

phone’s camera

cizzard@clmlaw.co.nz

cooneyleesmorgan.co.nz


10 BAY OF PLENTY BUSINESS NEWS September/October 2020

Trustpower

Baypark

– looking

ahead

After lockdown Trustpower Baypark kicked

back into life with a number of events

occurring before we entered Level 2

again. A few successful large events were

held between July/August before Level 2

restricted mass gatherings to 100.

Previous lockdown measures

were implemented

immediately, such as

increased hygiene, contract

tracing and physical distancing

measures. While this presents

challenges, Trustpower Baypark

is staying positive and

looking ahead.

Our clients continue to remain

positive and where possible

are postponing to new

dates rather than cancelling

their events. Regular communication

is maintained to

ensure action is taken quickly

when required.

Looking ahead to spring –

there are a number of upcoming

events in September/October

that should not be missed.

The Bay of Plenty

Wedding Show

Planning your wedding is

a beautiful, fun experience

so come along to The Bay

of Plenty Wedding Show on

Sunday 13 September and be

inspired. You’ll see loads of

gorgeous ideas, on-trend inspiration

and competitions to

enter. Everything to get your

creative juices flowing.

You’ll meet amazing wedding

vendors who can help

you plan the most special day

of your life. So take the time to

browse and speak to them, as

they have a wealth of experience

on offer.

Soak up the atmosphere,

take a break at the cafe, then

check out the beautiful wedding

gowns, bridesmaid gowns

and menswear coming down

the runway at 2.00pm. See

you there.

Gala dinner with Dan

Carter

Enjoy a night out at this year’s

Tauranga Gala Dinner accompanied

by special guest

– legendary Dan Carter. With

incredible entertainment, a

spectacular menu, charity

auction and exclusive insights

with Dan Carter, Friday, 25

September is a much-needed

celebration not to be missed.

The promoter has offered a

10 percent discount to any return

bookings this year. Come

along for a special night out

with one of NZ’s most successful

athletes.

The Pet & Animal Expo

The exhibition of the latest pet

products, services, and entertainment

for all those who love

pets and animals returns and is

growing more each year. The

Pet & Animal Expo will be on

Saturday 3 & Sunday 4 October

– there is plenty to keep all

pet lovers satisfied. Hundreds

of the latest pet products and

services will be displayed to

help owners give their pets the

best care available.

All creatures great and

small…dogs, cats, birds, fish,

reptiles, Guinea Pigs and

more…all under one roof.

This expo is a celebration of

pets and animals and the positive

role they play in society.

Great ideas at the wedding show.

Celebrating all pets and animals.

Devilskin concert

Devilskin have postponed

their tour due to Covid-19 restrictions

and are excited to be

landing in Mount Maunganui

on Saturday 3 October to support

their chart-topping new

album Red.

“We can’t wait to get

amongst our good friends and

celebrate Red, the music and

the messages on this album

are real and especially poignant.

We are extremely proud

of these songs and the whole

package of the album, but

make no bones about it, this

tour will be a party,” says bassist

Paul Martins.

“Everyone’s lives have

been affected by Covid-19 to

some degree, if anything, it’s

made us appreciate our freedom

and the simple joys of

being with our friends to celebrate

good times and good

music. Let’s do that. I think we

all need a party don’t we?

Women’s Lifestyle Expo

Grab your girlfriends, mum

or daughters for the ultimate

girls’ day out at the Women’s

Lifestyle Expo on Saturday 10

& Sunday 11 October!

Join us at one of Tauranga’s

largest indoor events – with

over 140 companies featuring

fashion and beauty, health

and fitness, artisan goods and

homewares, gourmet food and

beverages and much more!

Tickets are just $10 at the

door, or get a 2-for-1 deal

on GrabOne in the lead-up to

the show! Kids under 12 are

free.

Tauranga Home Show

back

Returning for its huge 21st

show on Friday 16, Saturday

17 & Sunday 18 October,

the Tauranga Home Show is

spread across both halls of

Trustpower Arena Baypark

along with beautiful outdoor

displays.

Browse, compare and draw

inspiration from a range of

over 250 exhibitors, from top

of the line to budget conscious.

Take advantage of exclusive

show specials and giveaways

you won’t find anywhere else,

all under one roof.

Bringing together regional

and national businesses, the

Tauranga Home Show encourages

you to buy local and

support local from established

Kiwi brands to small family

ventures. Meet your suppliers

face to face and learn more

about their products and services,

the people behind them

and how they can help you.

Premier venue

Trustpower Baypark is Tauranga’s

Premier Venue for

conferences, meetings, entertainment

and exhibitions.

Offering a complete package

in one convenient location

that features state of the art

meeting rooms, in-house catering,

audio visual services,

professional conference organiser

(PCO) and marketing/

promotional services. Meet at

Baypark for your next event.

Virtual meetings

“Bring your events online”

with our Virtual Meetings. The

range of onsite and offsite services

include: Remote Presentation,

Video Conferencing,

Web Streaming and Streamed

Hybrid Conferences.

The Virtual Meeting

services also includes purpose-built

studios to ‘broadcast

standard’ offering competitive

packages to enable you to

continue to stay connected to

your audience. Ask about our

competitive packages today.

For more information on any events, enquiries for Trustpower Baypark venues, BayStation activities or service on/off site from BayCatering, BayAudioVisual visit

www.trustpowerbaypark.co.nz, email events@bayvenues.co.nz or call 07 577 8560.

NOT GETTING THE

ATTENTION YOU

DESERVE?

Switch to the team with

experience. We tailor our

approach to suit your

business and deliver on

time. As promised.

EXPERIENCE. THE DIFFERENCE ADDS UP.

07 927 1200 | www.inghammora.co.nz 60 Durham St, Tauranga | 7 Totara St, Mt Maunganui


September/October 2020 BAY OF PLENTY BUSINESS NEWS 11

THE EIGHTH ANNUAL EVENT

WITH THE LEGENDARY

DAN CARTER

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SPECIAL FEATURE –

CORESTEEL BUILDINGS: TAURANGA MOTOR COMPANY

12 BAY OF PLENTY BUSINESS NEWS September/October 2020

RES

System

No obtrusive apex braces

Fully-bolted

(not TEK screwed)

Vermin-resistant bottom girt

Pinned connection

option

COMMERCIAL

less Portal System is constructed using cold-formed fl at Z450 galvanised coil. Typical

0m.

Coresteel completes

Structure

Fully-welded

tapered section

new Tauranga

BETTER STEEL

Motor

BUILDINGS

Our innovative portal systems support buildings of

No obtrusive apex braces Fully-bolted

virtually any size or shape. We manage the process

(not TEK screwed)

from start to fi nish with our in-house design, engineering,

Company

manufacturing

premises

and construction teams. For that reason

we can guarantee a shorter timeline, while maintaining a

cost-effective price for your project.

min-resistant bottom girt

ufactured by folding two halves of steel plate and welding them together to form a box.

length, utilising only the amount of steel required, which reduces the weight/cost without

sing the Tapered Box Beam, spans range from 20m to 75m.

By DAVID PORTER

The new facility – designed

and built by

Coresteel Buildings –

Tauranga, based in Papamoa –

was commissioned in August,

and extends Tauranga Motor

Company’s presence in the

city.

Previously its Suzuki and

Kia brands, now in Hewlett’s

rld, Invercargill

Tauranga Motor Company’s decision to go ahead with creating its new premises at 100 Hewletts Rd,

on the Maru Street corner, reflects the company’s Learn confidence more in about its new our car business. systems

Pinned connection

Road, were based at 326 Cameron

Rd, a site the company

has operated for the past dozen

years. “The growth we have

experienced over the last few

years has been extraordinary,”

says Director Mark Jury.

“As part of the changes we

are pleased to be able to move

our Bay of Plenty Honda

Agency to the high-profile

Cameron Road site.”

Extensive premises to

meet customer needs

The new dealership is approximately

1500m 2 , comprised

of a tiled showroom,

full workshop and mezzanine

offices – along with an extension

to the company’s existing

car-grooming facility.

“We have great strength

in the planning phases so are

WWW.CORESTEEL.CO.NZ

0800 CORESTEEL

Mainfreight Depot, Taupo

more than ready when we

enter the construction phase

and things can run smoothly,”

says Coresteel Buildings BOP

franchise owner Simon Eilering.

“Plan well and everything

else follows.”

Coresteel began the project

build in March 2019.

An obvious delay was the

Covid-19 lockdown with one

issue being the close proximity

to the boundary and traffic

flow which required Traffic

Management’s involvement

said Eilering.

Adds Coresteel BOP sales

manager Simon Thurston:

“What we’ve achieved is what

nobody else has managed to

achieve on this particular road

– premises with great proximity

to the street and amazing

visibility, which is great for

the dealership.”

Eilering said Coresteel has

received numerous enquiries

for work and was currently

pricing a number of jobs.

“Finance may be a little

more difficult for developers,

but in saying that we just

signed up three new jobs,” he

said.

Continued on page 14

steel’s patented

, including birdrehouse

area.

Dimensions: 40.6m L, 24.5m W, 5.5m H, 1062m 2 .

Dimensions: 40m L, 38m W, 6m H, 1340m 2 .

The 1340sqm Bracketless Portal System

structure allows for an 800m 2 secure storage

space, and a 540m 2 drive-through canopy for

24-hour, all-weather loading.

iport Ltd

PlaceMakers, Whangarei

“Coresteel’s Bracketless Portal System meant

we could realise the vision of a hangar that

was both practical and stylish in its design.”

The structure includes a warehouse,

showroom, tradedesk, ground and fi rst level

offi ces, training areas and a lunch room.


September/October 2020 BAY OF PLENTY BUSINESS NEWS 13

Bracketless Portal System

Nested bird/verminresistant

purlins

No obtrusive apex braces

No obtrusive

knee braces

Fully-bolted

(not TEK screwed)

NATIONAL Proud to BRAND have built GUIDELINES

Nested wall girts

Pinned connection

option

August 2020

TAURANGA MOTOR COMPANY’S

Embedded splice plate option

Vermin-resistant bottom girt

KIA Our unique, patented AND Bracketless Portal System SUZUKI is constructed using cold-formed fl at Z450 galvanised SHOWROOM

coil. Typical

Hewletts Road, Mount Maunganui

clearspans range from 9m to 30m.

BESPOK

LIFESTYLE BUI

Tapered Box Beam Structure

Fully-welded

tapered section

Nested bird/verminresistant

purlins

No obtrusive apex braces

No obtrusive

knee braces

POSITIONING LINE

Fully-bolted

(not TEK screwed)

The Coresteel brand positioning line ‘Better Steel Buildings’ exists in both a stacked and unstacked

version. It should be primarily shown on Highlander blue in two colours as shown below to maintain

brand integrity. Where this is not possible, one of the other options shown on this page should be

used. The Coresteel positioning line should not be used in any other colour or format.

BETTER STEEL BU

We know that a one-size-fi ts-all approach is

we’ve developed two innovative portal syste

Both systems give unlimited options for siz

and functionality, meaning the lifestyle build

lot closer than you thought.

STAC

Nested wall girts Vermin-resistant bottom girt Pinned connection

UNSTACKED VERSION

The Tapered Box Beam is manufactured by folding two halves of steel plate and welding them together to form a box.

The box is tapered through its length, utilising only the amount of steel required, which reduces the weight/cost without

affecting structural integrity. Using the Tapered Box Beam, spans range from 20m to 75m.

Learn more about ou

WWW.CORESTEE

0800 CORES

Our innovative portal systems support buildings of virtually any size or shape. We manage the process

Athol Art Gallery

Thode Horse Arena Canopy

Garnett Kiwi Barn

from start to finish with our in-house design, engineering, manufacturing and construction teams. For

that reason we can guarantee a shorter timeline, while maintaining a cost-effective price for your project.

COLOUR VARIATIONS

CONTACT US TODAY 07 575 9391

Dinsda

COLO

Dimensions: 15.6m L, 6m W, 3m H, 93.6m 2 .

Dimensions: 50m L, 28.2m W, 4.5m H, 1410m 2 .

Dimensions: 11m L, 12m W, 3m H, 132m 2 .

Dimensio

McKay American Barn

Payne Shed

Largus Avocado Orchard

Deake

Learn more about our systems

WWW.CORESTEEL.CO.NZ

GREYSCALE VARIATIONS

Dimensions:

0800

16m L, 18m W, 4.2m H, 288m 2 .

CORESTEEL

Dimensions: 11m L, 11m W, 2.4m H, 121m 2 .

Dimensions: 20m L, 18m W, 4.2m H, 394m 2 .

Soundy Shed

Coatesville Shed

Sharpe Building

GREY

Dimensio

Jefferie


14 BAY OF PLENTY BUSINESS NEWS September/October 2020

Coresteel completes new Tauranga

Motor Company premises

From page 12

Specialists in

Commercial,

Industrial, Office

and Residential

Building Washing

Grime Off Now can offer

you a tailored programme

for the maintainence

and presentation of your

building to ensure your

business is presented in

the best possible way.

We can provide you with

a customised programme,

our services include:

Building Washing (Commercial/

Industrial/Office/Residential)

Roof Washing

Gutter Cleaning

Window Washing

Moss, Mould, Lichen, Grime, Oil

and Stain removal

Bug and Pest Control

management programmes

Fogging – Sanitizing

Hot water washes – Car parks,

Pavements and Driveways

High Level – Atrium Dusting

Call us today for a quote

Coresteel works on a range

of different building types and

sectors – including Industrial

and Commercial.

Strong new vehicle

growth

Tauranga Motor Company’s

Mark Jury said a key reason

why the new premises were

needed was simply to get

more space, not just to display

vehicles, but create a better

experience for customers.

That included more space for

clients to park and more easily

experience the dealership.

“The new site allows for

access to both Maru St and

Hewletts Rd and easy, stressfree

parking,” he said, adding

that there were several reasons

for moving to Hewletts

Road – noted in Tauranga as

“the car zone”.

“Part of it was being able

Another major Coresteel project: Super Yacht Coatings

International’s new 1260m² building at the Marine Precinct.

to secure a big enough site to

fit the size of showrooms in

particular that we required,”

he said.

“The objective was to give

us as much space as possible

for bigger showrooms than

we might have otherwise

achieved. That way we could

have more cars inside. We

are first and foremost a new

car business. We want to give

them the best impact we can

and put resources into new car

display.”

Car sales in New Zealand

also tended to be very weather-dependent,

so with the new

premises potential clients

could browse regardless of

the conditions, said Jury.

“They can look at a car

and be insulated from outside,

which makes for a much better

environment. The cars can

be kept cleaner, and inside

you reduce the noise. That

was important to us and fol-

‘Improving Your place in the world’

Contact Roger on

0274 994 237 to see

what we can do for you.

Email roger@grimeoff.co.nz

Web grimeoff.co.nz


SPECIAL FEATURE –

CORESTEEL BUILDINGS: TAURANGA MOTOR COMPANY

September/October 2020 BAY OF PLENTY BUSINESS NEWS 15

lows a bit of a lead from what

is happening overseas.”

Jury said the new build had

gone reasonably smoothly.

“Like any build it’s had its

headaches, but we’ve worked

together with Coresteel and

overcome them as they have

come up. Obviously Covid-19

was completely unexpected.

We just all worked together on

that and came through it very

well. I’m really proud of the

final result.”

Strong new vehicles

sales post lockdown

Jury said that Tauranga had

experienced strong new vehicle

sales subsequent to the L4

lockdown.

“We are quite confident at

this point that our brands will

do well in the market,” he said.

The company’s brands have

been strong performers, with

for example, Kia currently

number one in the Tauranga

market for passenger vehicle

and SUV sales.

Jury said he thought there

were a number of reasons

for the uptick in sales. They

included the fact that many

customers who had put away

money for overseas travel,

were no long using it for that

purpose. “There’s also a desire

if you are going to spend more

Plan well and

everything else

follows.”

– Simon Eireling

time travelling within New

Zealand then you’re probably

going to want to do it in a quality

car,” said Jury.

“If you’re not going to be

flying, you’re going to tend to

look for a good safe car that

isn’t going to let you down,”

he said. “People are upgrading

their cars because they’re

going to be using their cars

more. They are looking at their

car as something they need

to have functioning well for

them.”

Jury also noted that there

had been an upswing in financing,

with interest rates at historic

lows.

“In the Covid 19 environment

it is impossible to be 100

percent sure what will happen,”

he said.

“But we have a high degree

of confidence in our brands,

which have proven to be resilient

and we have quite a bit of

good news ahead in terms of

new models coming.”

CORESTEEL – INNOVATIVE

BUILDING TO LAST

Coresteel Buildings is a New Zealand-owned

and operated company,

with 25 locally-owned

franchises reaching from Cape Reinga

to Bluff.

The Barn Company was purchased

by Donovan Group NZ Ltd in 2010 and

rebranded as Coresteel Buildings three

years later to reflect the new vision for

the company as a leader in the commercial

and industrial steel building

industry.

Coresteel builds strong, spacious,

long-lasting industrial buildings that it

says are made possible by its ability to

manufacture substantially larger steel

sections than anyone else in New Zealand.

These larger sections, combined

with Coresteel’s exclusive Bracketless

Portal and Tapered Box Beam systems,

allows for a vast interior space with no

interfering centre poles or braces, enabling

large industrial-sized vehicles

and machinery to move in and out of

the building with ease.

Coresteel customers have constructed

industrial steel buildings to be

used as factories, workshops, truck testing

stations, product storage, as warehousing

and for timber milling.

Plumbing • Gasfitting • Underfloor Heating

Central Heating • Drainlaying • Rain Water Harvesting

Ph: 07 543 2481

www.tpc.net.nz

Proudly associated with Coresteel Buildings


16 BAY OF PLENTY BUSINESS NEWS September/October 2020

ADVERTORIAL

SPECIAL FEATURE –

CORESTEEL BUILDINGS: TAURANGA MOTOR COMPANY

Earthworks, Tauranga Motor Company site, Hewletts Road, Mount Maunganui.

MATCO, the right choice for Commercial

Civil Projects

MATCO are regularly working on small and large civil projects throughout the

wider Bay of Plenty, Coromandel, Taupo and Waikato regions.

Owner Matt Paget has

an excellent reputation

regarding civil

projects. He knows how

to manage council requirements

and create design

solutions.

The MATCO team deliver

high levels of workmanship

with an emphasis

on safety, while juggling

the requirements of multiple

stakeholders.

They can streamline their

work to help keep a project

on time and within budget.

Their teams experience,

capability and can-do attitude

allows them to come up

with tailor made solutions

for their clients.

MATCO pride themselves

on providing a flexible,

approachable and

friendly service with a team

that’s always willing to go

the extra mile.

From port work to palm

kernel, big jobs or small,

their team are there to assist

you achieve positive

outcomes for your business

safely, professionally and on

time.

From drainage and earthworks

to retaining walls,

carparks, subdivisions,

surfacing and cartage the

MATCO team have the expertise

and equipment to

manage all your residential

and commercial needs.

WHAT MAKES MATCO

DIFFERENT?

At MATCO they are committed

to keeping abreast of the

latest technological advancements

in the construction industry.

They actively utilise

these tools to deliver the productivity

and value for money

their clients have come to expect

from them.

MATCO’s fleet of modern

CAT 313FL excavators are

equipped with CAT Grade

control 2D depth and slope

positioning.

This provides their operators

with real time bucket tip

elevation guidance for flat or

sloping plains – meaning they

can provide a faster, more

accurate final trim finish for

their clients.

Their CAT 289D tracked

skid steer is equipped with the

SHARP GRADE precision

laser leveller system – providing

a quick setup and an

extremely accurate final trim

solution for your project.

If you have a project that

requires an experienced and

passionate team, give us a call

today and we can discuss how

we can apply our expertise,

knowledge and top-notch machinery

to the work required.

Phone 0800 4 MATCO

(62826) or 07 572 0605 or

email admin@matcocontractors.co.nz

Proudly associated with

Coresteel Buildings in the

development of Tauranga

Motor Company’s new KIA

and SUZUKI Showroom

Earthworks • Drainage • Residential/Commercial • Subdivisions

Pavements • Concrete • Cartage • Civil Works

0800 4 MATCO (62826)

www.matcocontractors.co.nz


September/October 2020 BAY OF PLENTY BUSINESS NEWS 17

Be prepared for new Privacy Act changes

According to a survey by Digital Identity New Zealand (DINZ) in 2019,

79 percent of New Zealanders were concerned about the protection

of their identity and use of personal data by organisations. The

updated Privacy Act 2020 comes into force in December, but do you

know what it means for you and your business?

TECH TALK

> BY TONY SNOW

Tony Snow is chief executive and co-founder of Stratus Blue.

He can be contacted at Tony@stratusblue.co.nz.

Aotearoa New Zealand

has had a Privacy Act

since 1993. It was introduced

to promote and protect

individual privacy; to establish

principles on collection, use,

and disclosure of information

relating to individuals; and access

by individuals to information

held about them.

In the 27 years since the Act

became law we have seen an

explosion in the use of technology

in the workplace and in the

home, and with it the amount of

information being requested by

agencies to allow us to sign up

to services and transact online.

Advances in technology

means that data can be stored

in one part of the world and accessed

from anywhere else on

the planet provided you have a

simple device and access to the

internet.

Data is the new currency

Your data has huge value to

organisations across the globe

and people pay a lot of money

to get access to it. Government

is one of the biggest producers

of data (and one of the

few major producers that deliver

data to the public free of

charge).

Most major companies use

the data they collect from their

users to drive the insights that

improve their services; or they

take that data and sell it to a

third party as advertising revenue

(remember: always read

the Terms and Conditions before

signing up).

With this proliferation

of data reservoirs across the

world, countries have been

putting measures into place

to try to bring ownership and

control of this data back to

individuals. In 2018 the European

Union introduced the

General Data Protection Regulation

(GDPR) and, closer to

home, Australia’s privacy act

was introduced in 1988 with

significant amendments in

2013 and 2017.

The change in our own legislation

this year is bringing us

into line and making organisations,

both here and overseas,

more accountable for protecting

your data, making it accessible

to you upon request,

only recording the information

about you they need, and being

transparent when there are data

breaches that affect you and

others.

The new act has clarified

that businesses and organisations

can only collect identifying

information if it is necessary

– if you don’t need it,

don’t collect it.

Mandatory breach notifications

have been introduced.

Hacking attempts and cyber

attacks are now commonplace,

and there are a number of notable

examples where organisations

or businesses have

accidentally lost customer

information.

Under the new Act if you

have a serious privacy breach

you must inform The Privacy

Commissioner and those individuals

affected by the breach.

Failure to do so may result in

some hefty penalties.

The new act is also more

explicit around overseas organisations

that conduct business

in New Zealand. Think

The new act has clarified that businesses

and organisations can only collect

identifying information if it is necessary –

if you don’t need it, don’t collect it.”

Facebook, Google, Apple, Microsoft

etc.

If you are using a cloudbased

provider to store your

data, and there is a breach,

they could be accountable

under the new Privacy Act;

however it would be up to the

individual to notify the Privacy

Commissioner.

It is imperative for organisations

that are collecting and

keeping data on individuals to

be safe and secure. If a breach

occurs, it is up to the organisation

to prove that they took

all steps practicable to prevent

the breach and to show what

it is doing to prevent repeat

occurrences.

This does not just relate

to the technology breaches:

if you have someone in your

place of work and you have

another person’s details up on

the screen or on your desk or

open to public view – this can

be considered a breach.

Compliance steps

As a business, if you are holding

data, it would pay to jump

on to the Office of Privacy

Commissioner website https://

elearning.privacy.org.nz/

where you will find a range of

educational tools about the Privacy

Act 2020. As a nation we

have returned time and again

to the touchpoint of identity as

taonga, recognising that personal

information is to be treasured

and treated with dignity

and respect.

Organisations which genuinely

promote and respect

individual and community information

will be the success

stories of the future. Speak to

your legal and tech advisers

to ensure that you understand

all the implications and are

ready to implement and be

part of this digital change with

minimal disruption to your

business.

BEWARE OF FOREIGN IMITATIONS.

There’s no shortage of great ideas in New Zealand.

But for an innovative bunch, we’re not the best at

realising the full potential of our innovations, particularly

when exporting them.

At James & Wells, we can identify your competitive

edge, offer business strategies for specific markets and

help you own and leverage your intellectual property to

ensure no one steals the fruit of your labour.

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


18 BAY OF PLENTY BUSINESS NEWS September/October 2020

Rotorua manufacturer moves into hand

sanitisers

Rotorua’s Damar Industries has launched

a brand of hand sanitisers and related

sanitising products and aims to produce

up to a million litres a month to meet the

demand for what has become an essential

product and to future proof local supply.

BY DAVID PORTER

Damar Industries is

the country’s largest

manufacturer of ethanol-based

consumer products

and has decided to broaden

its production in the face of

surging customer demand for

sanitiser and other cleaning

products.

It will sell the sanitiser

under the brand name SaniHero.

This is an entirely

new category for 36-year-old

family owned New Zealand

business.

Damar Industries has

grown from a paint and varnish

company working out of a

cowshed, into New Zealand’s

largest manufacturer of coatings,

chemicals and aerosols.

Currently most sanitisers

are made offshore and imported

into New Zealand.

“During the early days of

Covid-19 we saw widespread

out of stock situations and it

was clear that the reliance on

imported sanitiser is a risk

to individuals, our frontline

workers and our wider medical

services,” said Scott Thomson,

founding director of Damar

Industries.

“The lack of supply of an

essential product is untenable

and left many people exposed

and pressured into paying

vastly inflated prices.

“We believe Kiwis deserve

to have access to products they

need to keep them safe and we

are absolutely committed to

helping them do this.

Supporting local

business

Thompson said the SaniHero

launch not only enabled the retail

and health sector to break

the dependence on the international

supply chain for an

essential item, but it also supported

local business efforts

and more jobs for Kiwis.

“Our chemists and laboratory

have developed a superior

sanitiser which has been

proven to kill 99.99% of germs

Damar Industries: Moving to meet new Covid-19 niche with sanitiser (right). Photos/Supplied

and our Rotorua plant can easily

produce sanitiser since it

falls into our current area of

expertise,” said Thompson.

“In the longer term, we will

be developing a hospital grade

sanitiser to enable our DHB’s

to source local as well. Our

state-of-the-art plant and automated

production lines enable

us to produce up to a million litres

of superior sanitiser every

month. When we are up to full

capacity, lack of supply will

be a thing of the past for New

Zealand.”

Rotorua mayor Stevie

Chadwick said: “It is great to

see local businesses using innovation

to create new products

that will bring jobs into

our community when we know

that some of our traditional industries

are struggling.”

The mayor said the loss of

tourists and the cancellation

of events would have a severe

impact on Rotorua, so the

news of a local manufacturer

stepping up in this way to grow

local business and employment

was especially welcome.

Mitre 10 NZ is the first

local retailer to get on board

with the Made in New Zealand

product. Damar Industries

anticipates other retailers will

soon follow.

The SaniHero sanitizers

are available in a 500ml pump

bottle (RRP $9.95) and a 1L refill

pouch (RRP $19.95).

A handheld 60ml sanitizer

option and an aerosol surface

spray are in planning.

Design and construction that

stands the test of time

ADVERTORIAL

Locally owned family business Hawes Building

Solutions is celebrating 20 years in business this

year. Known for their quality workmanship and

excellent service, the Hawes team is behind many

high-end commercial and residential design and

build projects in the region, and is a trusted name

in the Bay.

The company was founded by

Mark Hawes in 2000, with

his brother Anthony joining

him a few years later after returning

from the UK. Mark has been in the

building industry for 28 years, and

Anthony for more than 30. They

have worked on many interesting

projects over the years, such as

the 1750m2 Cameron Road retail

complex development and the 12th

Avenue retail development which

houses Westpac Bank plus other retail

and office spaces.

Their latest design and build

project, due for completion later

this year, is for Easy Gate in Tauriko.

In collaboration with Kirk

Roberts Engineers, Hawes has provided

a cutting-edge solution for

this client’s new offices, powder

coating plant, and warehouse space.

“We spent plenty of time talking

with Easy Gate to understand their

business and help them achieve

an innovative design solution that

suited their needs.

“Early contractor involvement

had many advantages, and we’ve

made significant changes to their

preliminary design to provide a

more cost effective and fit for purpose

building,” Anthony explains.

We chose a concrete structure

to mitigate noise and fire protection

concerns and to simplify the

construction process. A bespoke

steel frame and roof system were

also introduced to create a dust free

environment.

“We improved the look of the

building and its longevity by proposing

decorative precast panels

and prefinished low maintenance

roofing and joinery components.

The interior has been specifically

designed to meet the client’s operational

requirements while allowing

flexibility for future expansion,”

Anthony says.

Hawes Building Solutions has

strong systems in place that ensure

an easy process for their clients.

With Mark in the role as Projects

and Construction Manager and Anthony

as Quantity Surveyor, their

skills seamlessly complement each

other. They lead a team of 20 which

includes another Quantity Surveyor,

a Registered Architect, Senior Site

Managers, Carpenters, Hammerhands

and Apprentices, as well as

Chartered Accountant Suzanne

Jansen who manages the office.

A new office and warehouse building at Tauriko recently completed by Hawes Building Solutions.

“We are proud of our team and

enjoy partnering with leading architects

and designers in the Bay of

Plenty and Waikato to produce long

lasting, high quality buildings” says

Mark.

Next to bespoke commercial

and industrial buildings, Hawes

Building Solutions also excels at

residential design and build projects

such as high-end new builds,

major home renovations, and often

complex leaky home remediations.

They can organise the entire building

process, from drawing up plans

and dealing with council consents

through to the finishing touches.

This team of highly experienced

certified builders work together

well, and are passionate about

detailed planning and flawless

executions.

To find out more, call Hawes

Building Solutions on 07 578 2414,

visit them at their Glenlyon Ave

office in Greerton or online at

www.hawes.build.

The Hawes Building Solutions crew working

at Matua Lifecare Retirement Village.


September/October 2020 BAY OF PLENTY BUSINESS NEWS 19

When IP rights are

bona vacantia

it ain’t no vacation

In my last article I wrote about the importance of doing thorough

due diligence on any business or asset acquisition. I recommended

drawing up a list of due diligence issues, including identifying and

verifying ownership of all intellectual property (IP) assets.

With this article I explore

a related issue

– the risk of IP rights

being bona vacantia after a

business’s assets have been

sold. Bona vacantia is Latin

and means “unclaimed goods”.

More broadly, it means

unclaimed property. “Property”

includes intangible assets

like trade marks, patents,

copyright, trade secrets and

designs.*

The issue of IP assets being

bona vacantia most commonly

arises in relation to registered

IP rights.

When does bona

vacantia apply?

Property owned by a company

(limited or unlimited) is

deemed to be bona vacantia if,

immediately before the company

is removed from the New

Zealand Companies Register

(the “Register”), the property

has not been distributed or disclaimed

by the company. (In

the context of IP rights, “distributed”

means assigned by

way of deed or otherwise in

writing to a new owner; “disclaimed”

means withdrawn,

cancelled or surrendered.)

On removal of the company

from the Register, ownership

rights in the property vest in –

pass to – the Crown.

The Crown takes ownership

of the property because

the company no longer exists

as a legal person and under

New Zealand law the property

must be owned by someone –

it cannot remain ownerless.

By way of example, if ABC

Limited owns a registered

trade mark, but does not assign

or cancel the registration before

the company is removed

from the Register, the Crown

will become the owner of that

registration on removal of the

company from the Register.

Similarly, if XYZ New

Zealand (an unlimited company)

owns a granted patent,

but does not assign or surrender

the patent before the company

is removed from the Register,

the Crown will become

the owner of that patent on

removal of the company from

the Register.

Can you get your

property back?

If property does vest in the

Crown, all is not lost. Property

can be recovered by a person

“who would have been entitled

to receive all or part of

the property, or payment from

the proceeds of its realisation,

if it had been in the hands of

the company immediately before

the removal of the company

from the New Zealand

register”.

The recovery process is not

a simple one, however, and

may involve restoring a company

to the Register. (I say

“may” because for registered

trade marks at least, entitled

persons can pursue a private

process directly with the Treasury,

which does not involve

restoring the company to the

Register.)

If the company is restored

to the Register, then, subject

to certain exceptions, any

property vested in the Crown

re-vests in the company as if

the company had not been removed

from the Register.

This ‘restoration without

interruption of right’ can be

pivotal in retaining and enforcing

IP rights – as a trade mark

owner in England found out

recently.

In Fit Kitchen Ltd & Anor

v Scratch Meals Ltd,** the

plaintiff, Fit Kitchen Limited

(“FKL”) successfully sued the

defendant, Scratch Meals Limited

(“SML”), for trade mark

infringement and passing off.

A key feature of the case was

whether the trade mark relied

on by FKL was valid.

FKL applied to register

its FIT KITCHEN logo trade

mark (“Trade Mark”) on 8 August

2016.

Unbeknownst to its director

at the time, the application was

made six days after FKL had

been removed from the UK’s

Companies Register for failing

to file its annual accounts. The

failure was due to an address

mix-up.

On discovering the company

had been removed, FKL’s

INTELLECTUAL PROPERTY ISSUES

> BY BEN CAIN

Ben Cain is a Senior Associate at James & Wells and a Resolution

Institute-accredited mediator. He can be contacted at 07 928 4470

(Tauranga), 07 957 5660 (Hamilton), and benc@jaws.co.nz.

director applied to restore the

company to the Register; the

company was duly restored on

11 December 2017.

In December 2016, while

FKL was not on the Companies

Register, however, SML

began using a similar FIT

KITCHEN logo mark; it did so

until November 2019.

1. In infringement proceedings

brought by FKL in the

Intellectual Property Enterprise

Court, SML argued,

among other things, that

FKL’s trade mark registration

was invalid because

on the date FKL applied

to register its trade mark it

was a dissolved company,

and a dissolved company

cannot apply for a trade

mark. Much to FKL’s relief,

the Court disagreed. Applying

very similar law to that

in New Zealand, the Court

found that as FKL was

deemed to have continued

in existence at all times, including

on 8 August, 2016,

the trade mark application

was properly made by FKL

and the Trade Mark belonged

to FKL.

Take homes

To avoid a significant headache,

all companies with IP

assets should ensure:

1. The company’s details on

the Companies Register are

correct;

2. The company keeps a detailed

register of all its IP

assets, whether registered/

granted or not;

3. The company’s contact details

for any IP assets on the

Intellectual Property Office

of New Zealand database

(and any other databases,

including domain name

registrars) are correct;

4. If the company has an IP

agent, the agent has up-todate

contact details for the

company; and

5. If the directors and shareholders

of the company intend

to wind the company

up, then in preparation for

removal from the Companies

Register, all IP assets

are assigned in the proper

fashion to a new owner/new

owners before removal.

If any readers of this article

require specific advice, or

know someone who does, then

contact James & Wells or your

nominated IP attorney. Don’t

leave it until it is too late.

• References:

* See the definition of “property”

in section 2 of the

Companies Act 1993.

** [2020] EWHC 2069

(IPEC).


20 BAY OF PLENTY BUSINESS NEWS September/October 2020

CONNECTING

BUYERS AND

SELLERS OF

QUALITY

BUSINESSES

First on the scene

Networking at the recent Tauranga Chamber of Commerce BA5 at

Baycourt event in Tauranga.

Photos by Vanessa Laval-Glad at Laval Photo & Video Ltd.

When is the right time to sell

your business? Right now.

At TABAK, we promise to guide

you through the sales process

with focus, integrity and

complete confidentiality.

1

2

1 Matt Cowley, Tauranga Chamber of Commerce. 2 Tom Beswick, Ingham Mora, Alan Neben, Bay of Plenty Business News

and Jonathan Berry, InPhySec.

3

4

5

3 Amy Kerneys and Becks Clarke, The Makers. 4 Fiona Mackenzie, The Culture Co and Lynn Trail Surveying Services.

5 Franco di Blasio and Graeme Wilson.

FOCUS • INTEGRITY

CONFIDENTIALITY

WHY TABAK

6

6 Tony Stack, Classic Group with Wayne Shadbolt and Dan Allen-Gordon, Graeme Dingle Foundation - BOP.

7 Geoffrey Campbell, The Why Marketing, Anna Fox Generate Kiwisave – Tauranga and Jason Fox, Credit One.

7

INDUSTRY EXPERIENCE

REALISTIC APPRAISALS

TEAM APPROACH

8

8 Tangiwai Manihera-Palmer, Matakana Island Tours, Jill Fryer, Upshot NZ, Taka Ino, DreamTube Media Creatives and Sarah

Harcourt, Get The Message. 9 Wanita Wood and Hannah Goodhue, First Credit Union – Tauranga.

9

PRE-QUALIFIED BUYERS

P5177Y

147 Cameron Road

p. 07 578 6329

e. tauranga@tabak.co.nz

w. tabak.co.nz

10

11

10 Jeanette Mindham, Tauranga Chamber of Commerce and Michael Bayly, Karamu.

11 Jonathon Berry, InPhySec with Mike and Sue Dennehy, Cactus Consulting.


September/October 2020 BAY OF PLENTY BUSINESS NEWS 21

If you don’t manage

expectations, they

will manage you

In the more than 100 disputes tribunal hearings that I have been

involved in as a support person for my clients, a huge number

of them have one common denominator, the mishandling of

expectation management.

When a private client

engages a professional

service –

whether that be in the trades,

IT services, automotive, hospitality,

legal or any other industry

– they are generally not

engaging with the provider as

an expert in that industry. This

means that any expectation

that they have regarding the

provision of the requested service

is usually based on their

limited exposure to it in the

past.

There is a real balance

to be found in setting an expectation.

It must be high

enough to attract customers,

but realistic enough that you

minimise the chance of disappointing

the client, which can

lead to non-payment, disputes

and damage to the supplier’s

reputation.

In my experience with

larger businesses, the issues

are often found in a disconnect

between sales and production.

Sales people under pressure to

hit targets and be the quarter’s

sales champion can sometimes

oversell the business’s ability

and then hand the problematic

baby over to the production

teams to manage.

An example of this was

at an electronics company I

worked with. The sales person

did a proposal to a large government

department’s investigations

department.

They needed 10x high resolution

machines and their main

pain point was the amount of

money they were spending

on toner, as such departments

have fixed budgets that are set

a year in advance. Doing some

basic model research, the sales

person found a model that had

a toner yield of 6000 pages

and put together the proposal

focusing on the high yield as a

[Expectations] must be high enough

to attract customers, but realistic

enough that you minimise the chance of

disappointing the client, which can lead

to non-payment, disputes and damage to

the supplier’s reputation.”

major selling point. It worked

and the department issued a

purchase order for $270,000.

The technicians installed

all 10 machines, removed and

destroyed the old machines

(as security protocol dictated),

updated all drivers and printing

software and conducted

around 20 hours of training

with key staff. One month

later, the complaints and service

calls started rolling in as

the toner was running out even

faster than the previous machines,

averaging 400 pages

per set rather than the 6000 as

quoted.

After many heated phone

calls from the client to the

service manager, the sales person

was called into a “please

explain” meeting. After an investigation

it was discovered

that the 6000 yield quoted

was based on a 5 percent page

CREDIT CONTROL

> BY NICK KERR

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

He is also a director of International Private Investigations Ltd.

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

coverage, but the department

in question was in charge of

building inspections and the

reports that they were printing

were full of high resolution

colour photos that averaged 80

percent coverage.

The machines were returned,

sold as used items for

a massive loss, the company

absorbed the $20,000 training

and installation expenses, the

sales person was given the opportunity

to work somewhere

else and the brand suffered

huge brand damage in the

governmental supply community.

This could have all been

avoided with the sales person

asking for a sample report, giving

it to the technical manager

and researching the client’s

needs fully.

The basic lesson is that it

is better to give people good

surprises than bad ones. I have

never heard anyone complain

that their house was completed

a week faster than they

thought it was, or that their car

engine fault turned out to be

easier and cheaper to fix than

initially anticipated. Spending

a little extra time educating

the customer at the start of the

process is a heck of a lot easier

and cheaper than arguing with

them at the end when they are

trying to collect on the invoice.

Just a thought.

At Bayleys, we believe relationships are what businesses are built on and how they

succeed. We understand that to maximise the return on your property you need:

Professional property management

A business partner that understands your views and goals

Contact the Bayleys Commercial Property Management team today.

Bayleys Commercial

Property Management

07 579 0609

jan.cooney@bayleys.co.nz

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

ALTOGETHER BETTER

Residential / Commercial / Rural / Property Services


22 BAY OF PLENTY BUSINESS NEWS September/October 2020

Bring your personality to

the media interview

How many times

have you watched a

TV news item and felt

like the interviewee

was just reeling off a

sales pitch?

THE LAST WORD

> BY JAMES HEFFIELD

Director of Bay of Plenty marketing and PR consultancy Last

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

james@lastwordmedia.co.nz.

All too often people get

caught up in their key

messages and forget to

answer the questions being put

to them. They come across as

robotic or evasive and their

story fails to resonate.

Authenticity matters when

it comes to media interviews,

and that can sometimes mean

diverging from the script a little

to let your personality show.

That’s not to say you

shouldn’t prepare and consider

the most important points you

want to get across – that’s critical

– but the media, and its

audience, wants a human story.

On message, not

scripted

One of the first pieces of advice

you will hear about preparing

for a media interview

is to know your key messages.

This is interview preparation

101 and it’s important.

However, what is sometimes

misunderstood is that

most key messages do not

need to be recited word for

word. So long as the meaning

is communicated, you will

likely have achieved what you

set out to do.

There are of course exceptions

when precise wording

matters, such as when you’re

speaking about something

that is before the courts or

communicating the specifics

of a road closure, but in most

cases it’s the effect that is important,

rather than the precise

delivery.

It can also be useful to develop

talking points when preparing

for a media interview.

These can cover additional

points or interesting titbits of

information that can add substance

or colour.

For example, if you are

discussing the expansion of a

gold mine, it can be helpful to

know the year mining began in

an area, and perhaps even the

name of the first miner who set

foot in them there hills.

Bring the human factor

It can be strange to see the way

some people change when they

are in front of a journalist. It’s

true that you need to consider

what you say, but overthinking

can lead to a stilted or stuttering

performance.

It’s ok to laugh, smile and

to let a few of your quirks

shine through. During a recent

story I pitched to a major television

news programme, the

journalist made the point that

they were keen to talk to my

client’s workers, not just the

managers.

In their words, “a bit of a

character with a cheeky laugh

and a story to tell” was desirable

over the boss of the business

reciting marketing lines.

In the end, there was a place

for both – the manager adding

the detail and the worker adding

the colour – but it was a

good reminder about what really

matters for viewers who

have settled in to watch the

news or current affairs at the

end of a long day.

Keep in mind that there

may of course be times when

smiling and laughing aren’t

appropriate, such as when covering

a health and safety incident

or sensitive topic.

Set the scene

Last, but not least, consider the

setting and any “props” you

might want to have on hand.

Will you do the interview in

your office or reception area,

or will you suggest it is done in

a setting that directly relates to

the subject matter of the story?

A story about conservation

might be done in a scenic area

outdoors where the chatter

of birds can be heard in the

background. A construction

story might be done on the

site where the project is taking

place.

Often the location will be

proposed by the journalist, but

it’s always good to have some

ideas of your own on hand if

you feel they could add value.

When it comes to props,

marketing banners and product

placement is ok if done subtly,

but you will lose credibility

if they are too in your face

and come across as a direct

sell.

Far better is something that

relates directly for a story – a

dog might make sense in a

story about animal welfare, for

example.

Remember that the aim of

the props you bring or the setting

you propose is to reinforce

the message.

It should make your story

memorable or give it a point

of difference when pitching to

media.

Adding some personality

can be the difference between

your story being remembered

or not, so don’t be afraid to let

yours shine through.

Flexibility is key in an

evolving environment

When planning this article, we sat down as a team to discuss the

current state of the employment climate and how when speaking

with most of our clients recently, the general consensus was that

things were generally back to business as usual. For some sectors,

such as those in the home renovation market, business could even

be described as more buoyant than ever.

HUMAN RESOURCES

> BY KELLIE HAMLETT

Kellie Hamlett is Director and Recruitment & HR Specialist, Talent

ID Recruitment Ltd. She can be contacted on kellie@talentid.co.nz

What a difference a few

days can make. As

I sat down to write,

only 24 hours later, Auckland

had been plunged back into

level 3 lockdown, with the

rest of the country at level 2

– what will this mean for business?

Have we all become too

complacent?

Last week, Stats NZ released

the Household Labour

Force Survey for the June

quarter showing New Zealand’s

seasonally adjusted

unemployment rate had fallen

from 4.2 percent to 4 percent,

to the surprise of many. While

this lower rate seems like fantastic

news on the surface, it

doesn’t necessarily portray the

whole picture. To be counted

as unemployed, a person must

not have a job, have been actively

seeking work in the last

four weeks, or be due to start a

new job in the next four weeks.

This means that people who

weren’t actively seeking work

weren’t counted as unemployed

in the survey, including

those on the wage subsidy who

weren’t being utilised in actual

work. These people were captured

in the underutilisation

rate, which has increased from

10.4 percent to 12 percent.

Because the unemployment

One thing we know for sure is that we’re

in unpredictable times. While Covid-19

still remains a threat, we’re likely to

continue to be in a state of flux and it

is important that we remember not to

become too complacent.”

figures do not include those

still on the wage subsidy, but

not actually working, we’re

likely to see unemployment

increase as more people move

from under-utilised to officially

unemployed once the

latest wage subsidy extension

ends in September.

Many businesses have seen

a surge in spending and retail

activity through the June

quarter, which is possibly a

result of pent-up demand from

lockdown.

Recent surveys have also

shown that New Zealanders

plan to spend more on domestic

travel and home renovations,

which is why we’re

seeing many of our clients in

those sectors performing better

than expected. There have

certainly been some positive

stories out there in the business

community.

But with the realisation that

community transmission is

back, where to from here? One

thing we know for sure is that

we’re in unpredictable times.

While Covid-19 still remains a

threat, we’re likely to continue

to be in a state of flux and it

is important that we remember

not to become too complacent.

Continue to review your

business continuity and contingency

plans and to keep

open communication with

your staff. Hopefully we continue

to apply the learnings

from earlier in the year around

adaptability and flexibility in

the workplace and make any

future transition between levels

easier on ourselves and our

staff.


September/October 2020 BAY OF PLENTY BUSINESS NEWS 23

FOSTER GROUP PROVIDES WHOLE OF LIFE PROPERTY

SOLUTIONS FOR BUSINESSES AND COMMUNITIES AROUND THE

WAIKATO AND BAY OF PLENTY.

Great communities are built and protected by construction companies who have a commitment to

operating sustainably.

Since 2007, Fosters has been a member of the of the Enviromark programme.

The main objectives of the programme are to assist businesses to reduce energy consumption,

minimise waste, water and resource use where possible, effectively reducing the environmental

impact of the business and contributing to a more sustainable future for New Zealand.

This year, Fosters has achieved Toitu Enviromark Diamond certification – the highest level reflecting

ISO45001 standard. Fosters are New Zealand’s only construction company to achieve this

certification, and we are proud of this achievement, and the team that got us there.

But the sustainability journey continues. Fosters are moving into the carbon reduce programme with

Toitu to make sure our business carbon footprint is the most efficient it can be, while still delivering

outstanding construction outcomes for our clients and community.

Our clients care about sustainability and want to do the right thing. Fosters supports clients through

ensuring sustainability principles are integrated through the design, construction and building

maintenance process.

Protection of our people, our environment and our community provide a strong foundation for a long

term business here in the Waikato and Bay of Plenty.

FOSTERS.CO.NZ . 07 570 6000


24 BAY OF PLENTY BUSINESS NEWS September/October 2020

"Immediately impressed us with their

“They are honest, passionate,

dedicated professionals”

professionalism & knowledge"

“Oliver Road has redefined

“An astute knowledge of modern

real estate”

marketing techniques”

“We knew we were in the hands

“A golden formula that is formidable

& exceptionally brilliant"

of true professionals”

“Extremely impressed with their

“We cannot recommend them

knowledge of the market”

more highly”

"Professional, trustworthy and a

“You will not regret speaking with

delight to deal with”

Oliver Road Estate Agents”

Jason Eves & Cam Winter

W W W . O L I V E R R O A D E S T A T E A G E N T S . C O M

O L I V E R R O A D E S T A T E A G E N T S | L I C E N S E D R E A A 2 0 0 8

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