Bay of Plenty Business News - September/October 2020

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4 BAY OF PLENTY BUSINESS NEWS September/October 2020 From the editor www.bopbusinessnews.co.nz CONTACT INFORMATION PUBLISHER Alan Neben Ph: (07) 838 1333 Mob: 021 733 536 Email: alan@bopbusinessnews.co.nz EDITOR David Porter Mob: 021 884 858 Email: david@bopbusinessnews.co.nz PRODUCTION Copy/Proofs/Graphic Design Times Media – Clare McGillivray Ph: (09) 271 8067 Email: clare@times.co.nz ADVERTISING INQUIRIES BUSINESS DIRECTOR Pete Wales Mob: 022 495 9248 Email: pete@bopbusinessnews.co.nz ELECTRONIC FORWARDING EDITORIAL: News releases/Photos/Letters: david@bopbusinessnews.co.nz GENERAL INQUIRIES: info@bopbusinessnews.co.nz Bay of Plenty Business News has a circulation of 8000, distributed throughout Bay of Plenty between Waihi and Opotiki including Rotorua and Taupo, and to a subscription base. www.bopbusinessnews.co.nz Bay of Plenty Business Publications 210/424 Maunganui Road, Mount Maunganui, 3116 Bay of Plenty Business Publications specialises in business publishing, advertising, design and 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.” THE WORLD HAS CHANGED INVESTMENT FUNDAMENTALS HAVEN’T Quality investment strategies for the long term. 0800 272 442 | craigsip.com Craigs Investment Partners Limited is a NZX Participant Firm. Adviser Disclosure Statements are available on request and free of charge. Please visit craigsip.com
COVER STORY – KIWIFRUIT IN THE BAY September/October 2020 BAY OF PLENTY BUSINESS NEWS 5 covid’s impact on seasonal workers From page 3 $22.30 an hour for the same job. However, relocating some of the remaining 7000 from the rest of New Zealand to undertake work here in the Bay was challenging when they were not sure if they would be leaving New Zealand or not. “The next main peak for work is summer, and we will be working to draw in more New Zealanders. At present the unemployment rates do not give us much to work with, and we do not know what will happen when the wage subsidy comes off.” The winter pruning season is nearing its conclusion and initial fears a shortage of RSE workers would impede progress has faded as the industry had rallied together as spring nears. A $250,000 government grant to train more pruners yielded 25 locals for the first training intake. Johnson said the kiwifruit sector has done a good job of boosting the number of local workers in the segment, with about 50 percent of seasonal jobs going to them – about 8000 people. She said a concerted effort in the past two years to focus more upon locals to meet seasonal demand has met with good success, and would continue with renewed focus for the next harvest season. Working holidayers’ contribution Holiday working visa holders usually provide 2000 staff for the kiwifruit season, and are invaluable for their preparedness to move around, something that may not be as practical for New Zealand workers living outside the Bay of Plenty. It is estimated there are 21,000 working holiday visa holders in New Zealand. Mike Chapman, chief executive for Horticulture NZ said the organisation was in active discussions with government about getting greater flexibility on visa renewals, for both RSE and holiday visa workers. Over 13,000 people have signed a petition calling for an extension to the six-month working visa, which government initially extended for such workers to September 25. However, for many getting home by then is looking less likely, and for others the prospect of staying in New Zealand and continuing to work is more appealing. Chapman acknowledged there had been little contact to date with new immigration minister Kris Faafoi. He said the industry had been pushing to have the RSE worker cap for the new season lifted to 16,000 from its present 14,400 to help meet growing demand from apples and kiwifruit for more labour. Richard Bibby, chairman of the Masters Contractors Association that manages seasonal staff, said the silver lining out of Covid has been the RSE workers who are still here, given how uncertain it was about getting any more back for the new season. Uncertainty over visa extensions remains the single biggest concern, and one he hoped the new minister for immigration would sort soon. Rabobank report identifies need for new kiwifruit capital The strong surge in kiwifruit volumes in coming years is bringing a need for more capital to be invested in the post-harvest sector and new ways of financing it. Photo/BOP Tourism/Love Kiwis The next main peak for work is summer, and we will be working to draw in more New Zealanders. At present the unemployment rates do not give us much to work with, and we do not know what will happen when the wage subsidy comes off.” – Nikki Johnson By RICHARD RENNIE A Rabobank report estimates the sector will need an investment injection of $750 million within three years to cope with a near doubling in fruit volume between now and then. Zespri chief financial officer Richard Hopkins said the marketer’s five-year outlook document identifying challenges and opportunities is provided regularly to the industry. The 2020 season processed 155 million trays. Much of the surge in volume has come from the growth in SunGold plantings, totalling 700 new ha per year. The fruit is also proving to be a heavy cropping variety, capable of generating over 15,000 trays a ha. Rabobank senior horticultural analyst Hayden Higgins said the main sources for that investment would be debt and shareholder equity, and he was encouraged by the healthy balance sheets most post-harvest processors had to help fund the expansion. Continued on page 6
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Bay of Plenty Business News - September/October 2020

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