Bay of Plenty Business News - September/October 2020

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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COVER STORY – KIWIFRUIT IN THE BAY 

September/October 2020 BAY OF PLENTY BUSINESS NEWS 3 


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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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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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. 


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 


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



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. 


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 


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.” 


donors, 

our to Thanks 

$1.75M to our region this year. 


building a stronger 

in us Join 

07 579 9839 


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 & 


have helped Acorn 



Thanks to our donors, 


$1.75M to our region this year. 

Join us in building a stronger 



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. 


What do you 

care about? 

Generosity. 

Encouraging 


& Giving Workplace new Our 

have helped Acorn 



What do you 

care about? 

Lesley Jensen 

and Lori Luke 

(L-R) – Acorn 

Foundation 

$1.75M to our region this year.


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.


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


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. 

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


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FRIDAY 25 SEPTEMBER • TRUSTPOWER ARENA 

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SPECIAL FEATURE – 

CORESTEEL BUILDINGS: TAURANGA MOTOR COMPANY 


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 


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

Company 

manufacturing 

premises 

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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 


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.


Bracketless Portal System 

Nested bird/verminresistant 

purlins 


No obtrusive 

knee braces 

Fully-bolted 


NATIONAL Proud to BRAND have built GUIDELINES 

Nested wall girts 


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 

knee braces 

POSITIONING LINE 

Fully-bolted 


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


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




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


ADVERTORIAL 



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


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


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.


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).


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. 

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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 

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REALISTIC APPRAISALS 

TEAM APPROACH 

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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 

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147 Cameron Road 

p. 07 578 6329 

e. tauranga@tabak.co.nz 

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

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


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


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.


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


"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

Bay of Plenty Business News - September/October 2020

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