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October/November 2020 - Bay of Plenty Business News

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

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OCTOBER/NOVEMBER <strong>2020</strong> VOLUME 4: ISSUE 10<br />

WWW.BOPBUSINESSNEWS.CO.NZ<br />

FACEBOOK.COM/BAYOFPLENTYBUSINESSNEWS<br />

special<br />

focus<br />

why the<br />

tauriko tauranga<br />

bubble works<br />

Chris Parker, PhotoGraphics<br />

TAURANGA PORT<br />

Cairns announces<br />

retirement as CEO after 15<br />

years.<br />

P3<br />

HORTICULTURE<br />

Avocado prospects positive<br />

this year.<br />

P5<br />

COMMUNICATIONS<br />

Honesty the best policy<br />

dealing with staff.<br />

P22


2 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong><br />

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<strong>October</strong>/<strong>November</strong> <strong>2020</strong> BAY OF PLENTY BUSINESS NEWS 3<br />

Mark Cairns to step down<br />

from port role next year<br />

By DAVID PORTER<br />

Long-serving Port <strong>of</strong> Tauranga<br />

chief executive<br />

Mark Cairns has given<br />

notice that he will retire in<br />

June 2021.<br />

“I think 15 years as a CEO<br />

is a pretty good run,” Cairns<br />

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

<strong>News</strong> after announcing he was<br />

stepping down from running<br />

New Zealand’s largest and<br />

most efficient port.<br />

“I’ve got no more executive<br />

gigs in me. What I’d like to<br />

do is try and put a little back<br />

into business and take on a few<br />

governance roles.”<br />

He is also a keen fisherman<br />

and can be expected to be<br />

able to spend more time on the<br />

water.<br />

Time for the next<br />

generation<br />

Cairns said the time felt right<br />

to hand over to the next generation<br />

and that, while he would<br />

miss his colleagues, he was<br />

excited to see where the company<br />

went next.<br />

Cairns said he was especially<br />

pleased to see that the<br />

board had gone in-house for<br />

his replacement, with Leonard<br />

Sampson named to take over<br />

next year.<br />

Sampson was appointed the<br />

port’s chief operating <strong>of</strong>ficer<br />

in September 2019, after six<br />

years as commercial manager.<br />

Prior to joining Port <strong>of</strong> Tauranga,<br />

he held senior roles at<br />

KiwiRail, Carter Holt Harvey<br />

and Mainfreight.<br />

Port chairman David Pilkington<br />

said Cairns’ leadership<br />

had seen the company grow<br />

from a regional bulk export<br />

port to New Zealand’s international<br />

cargo hub, as well<br />

as one <strong>of</strong> its most successful<br />

listed companies. When he<br />

took over as chief executive<br />

in 2005, Port <strong>of</strong> Tauranga handled<br />

12.6 million tonnes <strong>of</strong><br />

cargo and 438,214 Twenty foot<br />

equivalent units (TEUs). In<br />

the year to June <strong>2020</strong>, the port<br />

handled 24.8 million tonnes <strong>of</strong><br />

cargo and 1.25 million TEUs.<br />

“Mark has kept the company<br />

strongly focused on future<br />

opportunities, while maintaining<br />

an industry-leading<br />

Leonard Sampson:<br />

in-house choice.<br />

Photo/Supplied.<br />

I’m incredibly proud<br />

<strong>of</strong> our people and the<br />

positive outcomes<br />

we have achieved for<br />

our customers and<br />

our community.” –<br />

Mark Cairns<br />

safety record and the highest<br />

productivity rates in Australasia,”<br />

he said.<br />

Local ratepayers own just<br />

over half <strong>of</strong> Port <strong>of</strong> Tauranga’s<br />

shares through Quayside Holdings<br />

and the company’s success<br />

had delivered wide-ranging<br />

benefits to the region.<br />

“During Mark’s tenure, the<br />

average compounding Total<br />

Shareholder Return has been<br />

19 per cent per year, with market<br />

capitalisation increasing by<br />

$4.4 billion, from $665 million<br />

to $5.1 billion today,” said<br />

Pilkington.<br />

Cairns said Port <strong>of</strong> Tauranga<br />

was is in excellent shape. “I’m<br />

incredibly proud <strong>of</strong> our people<br />

and the positive outcomes we<br />

have achieved for our customers<br />

and our community.”<br />

Discussing the recent<br />

challenges <strong>of</strong> steering the<br />

port through the Covid-19<br />

pandemic, Cairns said early<br />

concerns stemmed from not<br />

knowing exactly what the pandemic<br />

was or how it should<br />

be handled, and then working<br />

closely with staff to ensure the<br />

port stayed open.<br />

“If you can imagine, you’re<br />

– for example – working<br />

with pilots who were having<br />

to board vessels from China<br />

where the virus originated. It<br />

just really illustrated the resilience<br />

<strong>of</strong> the people we’ve got<br />

working for us.”<br />

As to the future, Cairns acknowledged<br />

it was a tough call,<br />

noting that the World Bank had<br />

recently forecast a four percent<br />

contraction in global GDP.<br />

“I think the world is going<br />

to do it tough for a while,” he<br />

said.<br />

The cruise ship market<br />

could be gone for a few years,<br />

which could be a $6 to 7 million<br />

hole in earnings. Cairns<br />

said the biggest concern was<br />

on the import side. Rising<br />

unemployment could see consumption<br />

drop <strong>of</strong>f and, while<br />

it was only about 17 percent<br />

<strong>of</strong> the port’s earnings, imports<br />

were likely to take the biggest<br />

hit.<br />

“But we’re predominantly<br />

an export port and the world’s<br />

always going to need our primary<br />

sector exports and our<br />

fruit – that’s a big part <strong>of</strong> our<br />

business we’ll see continue.”<br />

Mark Cairns: moving to governance roles. Photo/Supplied.<br />

Cairns pr<strong>of</strong>essional achievements<br />

• Doubling in cargo volumes<br />

• Successful execution <strong>of</strong> strategy to become New Zealand’s<br />

only “big ship capable” port<br />

• Nearly trebling container volumes<br />

• More than seven times increase in market capitalisation<br />

• Named Chief Executive <strong>of</strong> the Year in the 2012 Deloitte<br />

Top 200 <strong>Business</strong> Awards<br />

• Winner <strong>of</strong> the Caldwell Partners Leadership Award in the<br />

2019 Institute <strong>of</strong> Finance Pr<strong>of</strong>essionals Awards<br />

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4 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong><br />

From the editor<br />

www.bopbusinessnews.co.nz<br />

CONTACT INFORMATION<br />

PUBLISHER<br />

Alan Neben<br />

Ph: (07) 838 1333 Mob: 021 733 536<br />

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

EDITOR<br />

David Porter<br />

Mob: 021 884 858<br />

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

PRODUCTION<br />

Copy/Pro<strong>of</strong>s/Graphic Design<br />

Times Media – Clare McGillivray<br />

Ph: (09) 271 8067<br />

Email: clare@times.co.nz<br />

ADVERTISING INQUIRIES<br />

BUSINESS DIRECTOR<br />

Pete Wales<br />

Mob: 022 495 9248<br />

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

ELECTRONIC FORWARDING<br />

EDITORIAL:<br />

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

david@bopbusinessnews.co.nz<br />

GENERAL INQUIRIES:<br />

info@bopbusinessnews.co.nz<br />

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

<strong>of</strong> 8000, distributed throughout <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

between Waihi and Opotiki including Rotorua<br />

and Taupo, and to a subscription base.<br />

www.bopbusinessnews.co.nz<br />

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

210/424 Maunganui Road,<br />

Mount Maunganui, 3116<br />

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

in business publishing, advertising, design and<br />

print media services.<br />

For a long-time political<br />

junkie like myself, <strong>October</strong><br />

<strong>2020</strong> is about as<br />

good as it gets. We have the<br />

astonishing spectacle taking<br />

place in the US as the battle<br />

between Donald Trump and<br />

Joe Biden nears a climax. And<br />

we have our own – less insane,<br />

but still vitally important decision<br />

coming up after New Zealanders<br />

conclude voting on 17<br />

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

Assuming we have a result<br />

by the time we publish our <strong>November</strong><br />

issue, we will be devoting<br />

our next cover story to<br />

analysing the implications <strong>of</strong><br />

the new government’s policies<br />

for businesses in the <strong>Bay</strong>.<br />

But as we saw after the<br />

last election, MMP will not<br />

necessarily deliver an immediate<br />

“final” result. As veteran<br />

politician Richard Prebble<br />

reminded readers in a recent<br />

opinion article dig at the Jacinda<br />

Ardern coalition: “Under<br />

MMP, the losers can win.”<br />

Prebble is <strong>of</strong> course notable for<br />

having jumped from Labour to<br />

the then new ACT party and<br />

subsequently becoming its<br />

leader in the 1990s.<br />

Going into the final days<br />

<strong>of</strong> campaigning, our latest<br />

New Zealand elections are the<br />

hardest to call in recent history.<br />

They have come down voters<br />

deciding on two key issues:<br />

who can handle the ongoing<br />

issues <strong>of</strong> Covid-19 most effectively,<br />

and who is best placed<br />

to help lead New Zealand’s<br />

economic recovery.<br />

The polls have so far shown<br />

consistent, though slowly ebbing,<br />

support for the Ardern<br />

coalition, a slight improvement<br />

from a low position by<br />

National, and a strong swing<br />

to ACT.<br />

However, I tend to be<br />

something <strong>of</strong> a sceptic <strong>of</strong> polls.<br />

I doubt people really confide<br />

their true beliefs to phone<br />

poll surveyors, and don’t see<br />

why online surveys should be<br />

necessarily any more reliable.<br />

Even the polltakers admit to<br />

a three percent plus or minus<br />

error factor. What may be<br />

more significant this election,<br />

is the very large number <strong>of</strong> undecided<br />

voters showing up in<br />

most recent polls.<br />

But there is no doubt polls<br />

give mainstream media something<br />

to write and broadcast<br />

about. As we went to press,<br />

there was massive publicity<br />

around the NZ Herald-Kantar<br />

Vote<strong>2020</strong> poll, published on 30<br />

September. This favoured Labour<br />

on Covid-19 protection,<br />

but gave National a slight edge<br />

on rebuilding the economy.<br />

In my view, there are a few<br />

standout issues at play in our<br />

current elections and they will<br />

remain potent factors regardless<br />

<strong>of</strong> which party manages to<br />

form a government.<br />

The return <strong>of</strong> Crusher<br />

Collins<br />

One is that Judith Collins –<br />

after briefly dallying with a<br />

s<strong>of</strong>ter, kinder image – has happily<br />

re-embraced the “crusher”<br />

nickname that defined her.<br />

The opening televised leaders’<br />

debate was fascinating as the<br />

Judith Collins <strong>of</strong> the past elbowed<br />

her way back.<br />

An interesting recent analysis<br />

in the NZ Herald by former<br />

National MP and now pr<strong>of</strong>essor<br />

<strong>of</strong> public policy Marilyn<br />

Waring and Dr Ali Rasheed, a<br />

graduate <strong>of</strong> Auckland University<br />

<strong>of</strong> Technology, noted that<br />

Collins’ approach to the first<br />

debate resulted in her commanding<br />

the majority share<br />

<strong>of</strong> both the questions, and the<br />

answer time. The authors said:<br />

Collins’ “adoption <strong>of</strong> the style<br />

<strong>of</strong> boys in a classroom was a<br />

clever tactic for the first debate<br />

and the full production team<br />

fell for it.”<br />

It would seem National<br />

has finally come to – or more<br />

likely Collins has opted to return<br />

to – what she does best.<br />

Those who don’t like her style<br />

will continue to respond to Ardern’s<br />

more s<strong>of</strong>tly, s<strong>of</strong>tly approach,<br />

but wavering National<br />

voters are likely to respond<br />

favourably to the old Crusher.<br />

The television debate included<br />

Collins’ classic response<br />

to Ardern saying she<br />

wasn’t drawn to blood sportstyle<br />

contests, <strong>of</strong> “Poor wee<br />

thing.” Or Collins’ description<br />

<strong>of</strong> Ardern’s raising her ancient<br />

SFO investigation, which exonerated<br />

her, as “a low blow”<br />

and saying: “Gosh, the veil is<br />

definitely slipping, isn’t it?”<br />

David Porter<br />

[The New Zealand elections] have come<br />

down to voters deciding on two key issues:<br />

who can handle the ongoing issues <strong>of</strong><br />

Covid-19 most effectively, and who is<br />

best-placed to help lead New Zealand’s<br />

economic recovery.”<br />

Nonetheless, those who<br />

like Ardern’s leadership style<br />

and performance are likely to<br />

stick by her. Though Labour<br />

supporters might be wise not<br />

to assume their victory is a<br />

done deal, and make sure they<br />

actually get out and vote. But<br />

whether Collins is Prime Minister<br />

or Opposition leader, she<br />

will prove a potent force.<br />

It is difficult at this stage<br />

not to write <strong>of</strong>f NZ First. I suspect<br />

that Winston Peters’ days<br />

<strong>of</strong> dominating a coalition on<br />

his own terms – as he has done<br />

so successfully if confusingly<br />

– in the current government,<br />

are over.<br />

The Greens after some<br />

missteps seem likely to claw<br />

their way back into parliament,<br />

according to some polls. But<br />

if they remain Labour’s only<br />

viable coalition party, they<br />

are unlikely to be much help<br />

to them in winning the elections.<br />

The Greens’ somewhat<br />

unrealistic commitment to a<br />

wealth tax that would capture<br />

a large proportion <strong>of</strong> ordinary<br />

Kiwi households, may cause<br />

voters who might otherwise<br />

support Labour, to have second<br />

thoughts.<br />

The surprise performance<br />

has been from David Seymour<br />

and the ACT party. In late campaigning,<br />

Seymour has tried to<br />

position himself as the “real”<br />

National party. The reality is<br />

he is more likely to be cannibalising<br />

NZ First than the National<br />

Party.<br />

The problem both the major<br />

parties face, is a lack <strong>of</strong> clearly<br />

detailed and differentiated<br />

policies. However, the general<br />

themes that have emerged<br />

are much as might have been<br />

expected.<br />

Labour’s announced policies<br />

tend to reconfirm their<br />

view that bigger government<br />

is better, and that only government<br />

knows how to spend taxpayers’<br />

money. National’s policies<br />

tend to take the approach<br />

that business should be left to<br />

get on with what it does best.<br />

The reality is that whoever<br />

wins power will be committing<br />

previously unimagined billions<br />

<strong>of</strong> dollars to keeping the population<br />

employed, or at least fed<br />

if not always well-housed.<br />

One consolation we can<br />

all take is that, unlike in the<br />

US, we are not facing a political<br />

squabble that has the<br />

potential to unleash continuing<br />

civil dissent whatever the<br />

outcome. The Republicans are<br />

led by Trump, a well-documented<br />

liar, the leak <strong>of</strong> whose<br />

long-hidden tax returns prove<br />

him to be one <strong>of</strong> the least successful<br />

businessmen, and most<br />

personally indebted presidents<br />

in US history. His Democratic<br />

opponent Biden is a<br />

competent, seemingly decent<br />

but aging politician, who got<br />

the nomination because mild<br />

socialist Bernie Sanders was<br />

too “left” for party elders to<br />

stomach.<br />

Whoever wins in New Zealand<br />

can be expected to at the<br />

least try and do their best for<br />

our country, and to be largely<br />

supported, while being held to<br />

account, by a loyal opposition.<br />

We are lucky.<br />

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<strong>October</strong>/<strong>November</strong> <strong>2020</strong> BAY OF PLENTY BUSINESS NEWS 5<br />

Avo prospects<br />

positive for new<br />

season<br />

Prospects for the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>’s new<br />

avocado season are looking positive,<br />

with export volumes forecast to rise<br />

and strong prices buoyed by lighter<br />

crop volumes in Australia.<br />

By RICHARD RENNIE<br />

NZ Avocado chief executive<br />

Jen Scoular said the<br />

total crop estimate for<br />

this season is 7.2 million trays,<br />

the same as the actual crop<br />

volume harvested last season,<br />

with almost 4.5 million trays<br />

destined for export.<br />

Some growers here have<br />

reported slightly smaller fruit<br />

because <strong>of</strong> the dry summer,<br />

but Scoular said more will be<br />

known about average fruit size<br />

over the coming month as the<br />

export season gets underway.<br />

Katikati grower Don Grayling<br />

said the dry weather<br />

through summer has influenced<br />

this year’s crop, but irrigation<br />

had helped reduce some<br />

<strong>of</strong> the dry’s worst effects. He<br />

has also noticed picking has<br />

started particularly early.<br />

“We are feeling optimistic,<br />

the downturn in Australian<br />

crop volumes will certainly<br />

help growers here,” he said.<br />

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

to be the dominant area for<br />

avocado growing, but shifts<br />

are occurring as the concentration<br />

<strong>of</strong> new orchards grows in<br />

the north.<br />

Recent significant investments<br />

from both iwi and corporate<br />

growers into green<br />

fields orchard conversions in<br />

Northland, with some as large<br />

as 200ha by the end <strong>of</strong> the decade,<br />

means the current 60:40<br />

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

and Northland is likely to even<br />

out over the next five years.<br />

“The investment into avocado<br />

development in Northland<br />

has been made <strong>of</strong>f the<br />

Jen Scoular<br />

back <strong>of</strong> confidence in the<br />

wider avocado industry, the<br />

ability to utilise research and<br />

development to get better productivity,<br />

and utilising scale<br />

<strong>of</strong> operations to reduce relative<br />

on-orchard costs,” said<br />

Scoular.<br />

New orchards harvesting<br />

this year<br />

Some <strong>of</strong> the large new orchards<br />

planted in Northland<br />

began harvesting for both export<br />

and domestic markets this<br />

year.<br />

“We expect to see continued<br />

increases in volumes from<br />

these newly planted orchards<br />

over the next five years.”<br />

Australia remains the dominant<br />

export market for New<br />

Zealand fruit, accounting for<br />

about 70% <strong>of</strong> exports, and supply<br />

to Australia is expected to<br />

be boosted this year thanks to<br />

an anticipated strong season<br />

here.<br />

Aussie growers in southern<br />

and western Australian growing<br />

regions are also anticipating<br />

lighter crops, thanks in part<br />

to a drier season.<br />

In coming years Australian<br />

volumes are expected to<br />

increase significantly because<br />

<strong>of</strong> large new plantings through<br />

Western Australia’s south-west<br />

district.<br />

But for the coming season<br />

the Western Australian volumes<br />

are forecast to be down.<br />

“New Zealand exporters<br />

anticipate this will result in a<br />

good market opportunity for<br />

New Zealand avocados in Australia<br />

for the <strong>2020</strong>-21 season,”<br />

said Scoular.<br />

Over time as the Western<br />

Australian fruit comes on<br />

stream it is expected to impact<br />

upon the volumes New Zealand<br />

growers can sell into Australia.<br />

It has prompted greater<br />

focus here on exporting to<br />

non-traditional markets that<br />

this year including India, Pacific<br />

Islands, Thailand, South<br />

Korea and Singapore, alongside<br />

the Chinese market.<br />

New Zealand’s entry to the<br />

China market in 2018 was initiated<br />

with a 40,000 tray commitment.<br />

Since then the volume<br />

has ramped up with the<br />

larger, more expensive New<br />

Zealand fruit being differentiated<br />

by quality, food safety and<br />

traceability claims.<br />

“Our harvest maturity requirements<br />

are the highest in<br />

the world, and this combined<br />

with our rich volcanic soils<br />

Michael Franks<br />

Even though they have put more<br />

plantations in Western Australia, their<br />

crop is significantly down this season,<br />

by almost half, so the outlook for us<br />

here is very good in terms <strong>of</strong> Australian<br />

exports.” – Michael Franks<br />

and temperate climate produce<br />

and avocado with a consistently<br />

great taste pr<strong>of</strong>ile and<br />

unique nutrient properties,”<br />

said Scoular.<br />

Thailand market growing<br />

Thailand is expected to be<br />

New Zealand’s largest Asian<br />

export market this year, taking<br />

300,000 trays.<br />

However, Scoular cautioned<br />

export to markets faced<br />

Covid-19 challenges including<br />

a reduction in air freight capacity,<br />

and pressure from Peruvian<br />

fruit in some <strong>of</strong> New Zealand’s<br />

favoured markets.<br />

Michael Franks, chief executive<br />

<strong>of</strong> Seeka, which has<br />

been focusing on increasing its<br />

share <strong>of</strong> the avocado market in<br />

recent years with its premium<br />

branded fruit, said Australia<br />

would remain a significant<br />

market for the company in the<br />

immediate future.<br />

“Even though they have put<br />

more plantations in Western<br />

Australia, their crop is significantly<br />

down this season, by almost<br />

half, so the outlook for us<br />

here is very good in terms <strong>of</strong><br />

Australian exports.”<br />

Australia consumption per<br />

capita <strong>of</strong> the fruit has risen<br />

steadily over the past decade<br />

by over 50%.<br />

However, Franks said<br />

Covid-19 has altered the demand<br />

pr<strong>of</strong>ile in the past few<br />

months around the world.<br />

“A lot <strong>of</strong> fruit goes into<br />

food service, and with a drop<br />

<strong>of</strong>f in eating out in the likes <strong>of</strong><br />

Mexican restaurants means the<br />

demand there has dropped.<br />

Big suppliers out <strong>of</strong> Mexico<br />

and South America are moving<br />

more into fresh whole fruit<br />

supply, which <strong>of</strong> course brings<br />

more competition to the likes<br />

<strong>of</strong> us.”<br />

However, he was confident<br />

Seeka’s focus on providing<br />

high quality, premium<br />

fruit would hold it in a strong<br />

position against the smaller<br />

fruit from South America that<br />

tended to have a higher water<br />

and lower oil content in their<br />

flesh.<br />

He said expectations <strong>of</strong><br />

$25-$35 a tray was very realistic<br />

this season.


6 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong><br />

Evidence <strong>of</strong> a V-shaped recovery<br />

Investment market update (for the quarter ended 31 Aug, <strong>2020</strong>)<br />

The global pandemic is<br />

not yet behind us. People<br />

in the northern hemisphere<br />

have been enjoying<br />

their summer holidays at the<br />

same time that infection rates<br />

have been increasing.<br />

Yet the overall mortality<br />

rate continues to decline, highlighting<br />

better overall care and<br />

treatment options. At the same<br />

time, central banks and government<br />

policymakers have<br />

continued to support households,<br />

businesses, and banks<br />

allowing businesses to reopen<br />

and encouraging healthy economic<br />

activity as lockdowns<br />

are eased.<br />

For now, the outcome has<br />

been a broad rebound in economic<br />

activity around the<br />

world. Housing has been particularly<br />

strong in many countries<br />

due to a combination <strong>of</strong><br />

historically low interest rates,<br />

pent-up demand, nesting (people<br />

redirecting spending to<br />

their home and in-house activities),<br />

and, in New Zealand, a<br />

shortage <strong>of</strong> supply. Along with<br />

houses, low interest rates have<br />

boosted demand for new cars,<br />

which has contributed to an upturn<br />

in global manufacturing.<br />

Retail sales have also surprised<br />

many, with a strong rebound<br />

following a weak second<br />

quarter <strong>of</strong> the year. Household<br />

savings rates went up during<br />

the lockdowns and the use <strong>of</strong><br />

those savings once economies<br />

reopened has contributed to<br />

a more robust recovery than<br />

many had predicted.<br />

Central banks<br />

committed to ultra-low<br />

interest rates<br />

In most cases, central bank interest<br />

rates are near zero and<br />

indications are they will stay<br />

there for a long time to come.<br />

The US Federal Reserve has<br />

gone one step further by confirming<br />

it is focused on reducing<br />

unemployment and is now<br />

prepared to let inflation run<br />

above its <strong>of</strong>ficial two percent<br />

target for some time before<br />

even thinking about raising<br />

rates. Comments from one <strong>of</strong><br />

our own RBNZ Deputy Governors<br />

suggest our central bank<br />

is also prepared to do something<br />

similar.<br />

The implication is that interest<br />

rates are going to remain<br />

at ultra-low levels possibly for<br />

years. Those waiting with cash<br />

in the bank for higher deposit<br />

rates are likely to be disappointed.<br />

The long-term trends<br />

contributing to the decline in<br />

inflation (including ageing<br />

populations, high debt, globalisation,<br />

and the proliferation<br />

<strong>of</strong> technology) are all still<br />

with us. Inflation risks remain<br />

benign near-term. That’s not<br />

to say all the money printing<br />

won’t eventually cause some<br />

inflationary pressures if it creates<br />

excess demand for goods<br />

and services. But that risk appears<br />

a fair way out from here.<br />

Earnings optimism<br />

As the equity markets continue<br />

to recover strongly, so too does<br />

optimism for future company<br />

earnings. July and August is<br />

when companies report their<br />

financial results to markets.<br />

Expectations for Q2 <strong>2020</strong><br />

earnings were low, and we<br />

saw more positive surprises<br />

than negative ones. Reflecting<br />

more buoyant than expected<br />

WHAT TO DO WITH YOUR MONEY<br />

> BY BRETT BELL-BOOTH<br />

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

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

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

economic conditions, analysts<br />

are now generally lifting earnings<br />

expectations for this year<br />

and the year ahead.<br />

The “working from home”<br />

theme is becoming a permanent<br />

theme in many economies,<br />

with many people moving<br />

out <strong>of</strong> the cities and into<br />

the suburbs. This has been<br />

beneficial for industries such<br />

as homebuilders, car manufacturers,<br />

home furnishing, and<br />

anything else related to working<br />

or shopping from home.<br />

With positive signs much <strong>of</strong><br />

the global economy is experiencing<br />

a sharp rebound in activity,<br />

investors should become<br />

increasingly confident that the<br />

low in earnings is behind us,<br />

and a recovery is underway.<br />

Uncertainty still ahead,<br />

but stick to the plan<br />

The commentary above all<br />

sounds pretty positive, and<br />

clearly equity markets have responded<br />

favourably.<br />

But these remain unprecedented<br />

(a word used a lot<br />

at the moment) times. We’re<br />

still navigating the first global<br />

pandemic in over a century.<br />

Interest rates are the lowest in<br />

history, which may lead to economic<br />

imbalances longer-term.<br />

And governments are spending<br />

money with abandon, funded<br />

largely by central banks printing<br />

money, but this can’t last<br />

forever.<br />

Given the recovery in<br />

equity market values since<br />

March, we note that: (1) markets<br />

are able to remain resilient<br />

in the face <strong>of</strong> bad news,<br />

(2) share prices reflect the<br />

long-term earnings companies<br />

will generate over the years<br />

and decades ahead, not just the<br />

next six to 12 months, and (3)<br />

it’s not possible to consistently<br />

time or predict short-term<br />

movements in markets. Overall,<br />

it’s important to establish<br />

and remain committed to an<br />

investment plan which meets<br />

your long-term goals.<br />

This column is general in nature<br />

and is not personalised investment<br />

advice. This column<br />

has been prepared in good<br />

faith based on information obtained<br />

from sources believed to<br />

be reliable and accurate. Disclosure<br />

Statements for Forsyth<br />

Barr Authorised Financial Advisers<br />

are available on request<br />

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

Key questions to ask<br />

on an Information<br />

Memorandum<br />

A business’s Information Memorandum is a summary <strong>of</strong> the business for<br />

sale and you use it to figure out if you are really interested in the business.<br />

It is like going to an open home. You have a quick look around and form<br />

an opinion <strong>of</strong> the house from what you see on the surface. And then you<br />

decide whether you want to look a whole lot harder.<br />

A few <strong>of</strong> the common<br />

questions I have when<br />

reviewing an Information<br />

Memorandum (IM) are:<br />

1. Financial Performance<br />

– what trends can be seen<br />

from reviewing the numbers?<br />

How have the financials<br />

been used to arrive at<br />

a business value? Do they<br />

indicate a business that is<br />

growing in pr<strong>of</strong>itability? Or<br />

are sales up, but gross margins<br />

down? All the figures<br />

can be used to tell a story<br />

– but you might need pr<strong>of</strong>essional<br />

help in reading it.<br />

2. Price – the questions I have<br />

about the value <strong>of</strong> a business<br />

from the IM stem from<br />

working out the multiple<br />

<strong>of</strong> earnings that the asking<br />

price implies and whether<br />

the prospective buyer<br />

thinks this is good value or<br />

not.<br />

3. Reasons for selling – does<br />

this imply anything about<br />

The IM stage is about forming an overall<br />

view so you can work out whether you<br />

are keen to learn more – or throw it in<br />

the bin. All the factors above contribute<br />

to building a true picture <strong>of</strong> the<br />

business.”<br />

the state / value <strong>of</strong> the business?<br />

Retirement is a common<br />

reason. However, not<br />

everything can be taken at<br />

face value. If the business<br />

is declining, then it may be<br />

that the vendor now wants<br />

to retire as they do not have<br />

the energy to pick things up<br />

again.<br />

4. The IM will contain<br />

plenty <strong>of</strong> information<br />

about products, markets,<br />

suppliers, and competitors.<br />

It is key to understand<br />

what the IM is (and is not)<br />

telling you in this area.<br />

5. Do you have a clear understanding<br />

<strong>of</strong> the risks<br />

and opportunities? Sometimes<br />

the IM will refer to<br />

markets or products as opportunities<br />

despite the business<br />

not currently being in<br />

those markets. For me, any<br />

gain from this should be to<br />

the new buyer.<br />

6. Staff – is there a high level<br />

An IM is like an open home visit: it’s basically a sales memorandum. Photo/stock<br />

<strong>of</strong> specialist knowledge<br />

held by an exiting owner?<br />

Or can the staff manage<br />

without them? It reduces<br />

the risk to a new buyer considerably<br />

if the business<br />

can still function well without<br />

the current owner being<br />

around.<br />

7. Owner’s commitment to<br />

the transaction – are they<br />

looking to exit as fast as<br />

possible? Or are they prepared<br />

to stick around and<br />

help a buyer get a good a<br />

start?<br />

8. Systems – what are the<br />

BETTER BUSINESS BUYING<br />

> BY TOM BESWICK<br />

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

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

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

core systems that the business<br />

uses? Does it indicate<br />

a business that is using<br />

best practice, or will a new<br />

owner have to improve<br />

things early on?<br />

9. Location / premises /<br />

equipment – are there any<br />

premises that are central to<br />

the success <strong>of</strong> the business?<br />

What is the lease situation?<br />

Are the assets for sale with<br />

the business up to date or<br />

will you need to allow to<br />

replace some?<br />

The IM stage is about forming<br />

an overall view so you can<br />

work out whether you are keen<br />

to learn more – or throw it in<br />

the bin. All the factors above<br />

contribute to building a true<br />

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

An IM is a sales document<br />

– no different to a property<br />

hoarding.<br />

Understandably, it presents<br />

the business in the best possible<br />

light. It is up to a buyer and<br />

their pr<strong>of</strong>essional advisors to<br />

cut through the noise quickly<br />

so they can work out whether<br />

it is worth the time and cost to<br />

dig further.


<strong>October</strong>/<strong>November</strong> <strong>2020</strong> BAY OF PLENTY BUSINESS NEWS 7<br />

New Year – New Meetings<br />

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

Trustpower <strong>Bay</strong>park are pleased to <strong>of</strong>fer a<br />

“New Year – New Meetings” promotion as<br />

a fresh start to 2021 for all your strategic<br />

planning, training and team building needs.<br />

On <strong>of</strong>fer is a 25 percent discount for small<br />

meetings confirmed before 23 December,<br />

<strong>2020</strong> and held between 5 January – 31<br />

March 2021. The discount applies to Venue<br />

Rental, Audio Visual, Catering and <strong>Bay</strong>station<br />

and is subject to availability.<br />

The Trustpower <strong>Bay</strong>park Arena Suites: Book now for the New Year. Photo/Supplied.<br />

Once again, Trustpower<br />

<strong>Bay</strong>park are gearing<br />

up for a busy summer,<br />

with a number <strong>of</strong> upcoming<br />

events to keep the entire family<br />

entertained.<br />

Women’s Lifestyle Expo<br />

Do you need a girls’ day<br />

out? The Women’s Lifestyle<br />

Expo is a two-day event<br />

for woman <strong>of</strong> all ages, featuring<br />

everything from fashion<br />

and beauty to health and fitness,<br />

artisan good, gourmet<br />

food and beverages and much<br />

more!<br />

This is the only event <strong>of</strong> its<br />

kind happening in nine regions<br />

across New Zealand, so grab<br />

your girlfriends, sisters, mum,<br />

grandma or daughters for<br />

the ultimate weekend at the<br />

Women’s Lifestyle Expo on<br />

Saturday 10 and Sunday 11<br />

<strong>October</strong>. Tickets are just $10 at<br />

the door, or get a 2-for-1 deal<br />

on GrabOne in the lead-up to<br />

the show. Kids under 12 are<br />

free.<br />

Tauranga Homes Show<br />

Returning for its huge 21st<br />

show on Friday 16, Saturday<br />

17 and Sunday 18 <strong>October</strong>,<br />

the Tauranga Home Show is<br />

spread across both venues <strong>of</strong><br />

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

along with beautiful outdoor<br />

displays.<br />

Browse, compare and draw<br />

inspiration from a range <strong>of</strong><br />

over 250 exhibitors, from top<br />

<strong>of</strong> the line to budget conscious.<br />

Bringing together regional<br />

and national businesses, the<br />

Tauranga Home Show encourages<br />

you to buy local and<br />

support local from established<br />

Kiwi brands to small family<br />

ventures.<br />

Watch live cooking demonstrations<br />

from “Nude Food”<br />

advocate Nadia Lim. Nadia<br />

is all about everyday simple,<br />

healthy, delicious food.<br />

She came up with the idea<br />

<strong>of</strong> Nude Food as a budding<br />

young cook when she was just<br />

12 years old and it has been her<br />

mantra ever since. She wasn’t<br />

referring to cooking or eating<br />

in the nude – rather the concept<br />

signifies fresh, natural, real<br />

food, free from being dressed<br />

up in fancy packages, marketing<br />

and additives.<br />

It’s a message she conveys<br />

to her audiences with her fresh,<br />

bright and tasty recipes. Don’t<br />

miss out on her live cooking<br />

shows at 2pm on both Saturday<br />

and Sunday.<br />

HoopNation<br />

The popular Women’s Lifestyle Expo is coming back. Photo/Supplied<br />

If you love basketball then<br />

block out Labour Weekend<br />

now (23-26 <strong>October</strong>).<br />

HoopNation is Aotearoa’s<br />

classic basketball event brand<br />

and host successful tournaments<br />

throughout the year nationally<br />

and internationally.<br />

One <strong>of</strong> these events is The<br />

Classic, which is hosted annually<br />

every Labour Weekend in<br />

Tauranga.<br />

The Classic is where the<br />

HoopNation journey began in<br />

2011 and it has grown to become<br />

New Zealand’s premier<br />

basketball event showcasing<br />

some <strong>of</strong> the nation’s top talent.<br />

HoopNation is all about<br />

exposing athletes nationwide<br />

to opportunities to showcase<br />

their talents on their journey to<br />

greatness. 12 Youth Divisions<br />

– 5 Adult Divisions – 4 days.<br />

Don’t miss out.<br />

<strong>Bay</strong>park Speedway<br />

Opening night for <strong>Bay</strong>park<br />

Speedway is Saturday, <strong>October</strong><br />

24 and will see all adrenaline<br />

junkies come out <strong>of</strong><br />

hibernation.<br />

The opening night is just<br />

the start <strong>of</strong> what is set to be an<br />

action-packed season.<br />

To celebrate Guy Fawkes<br />

Day, Speedway will finish<br />

with a spectacular display <strong>of</strong><br />

Fireworks to light up the sky<br />

on <strong>November</strong> 7.<br />

There will be no shortage <strong>of</strong><br />

thrills this season. Other confirmed<br />

<strong>2020</strong> speedway dates<br />

are <strong>November</strong> 21 and December<br />

5, 26 and 29.<br />

Look after your clients<br />

in style<br />

Did you want to treat one <strong>of</strong><br />

your valued clients? Or how<br />

about coming to Speedway for<br />

your Staff Christmas party?<br />

We have a number <strong>of</strong><br />

Corporate Boxes available<br />

to entertain your guests<br />

comfortably.<br />

With the box you get; an<br />

exclusive, spacious and comfortable<br />

box with an outdoor<br />

balcony for up to 20 guests.<br />

Full kitchen facilities including<br />

microwave, sink,<br />

table, chairs and bar stools.<br />

A self-contained refrigerator<br />

for ongoing inbox bar<br />

service with dedicated corporate<br />

box catering stewards for<br />

continuous supply along with<br />

a high quality catering service<br />

delivered to your box.<br />

These boxes are also available<br />

on an annual basis to cover<br />

the entire Speedway Season.<br />

Please contact us on events@<br />

bayvenues.co.nz or 07 577<br />

8593 for more information.<br />

Premier Venue<br />

Trustpower <strong>Bay</strong>park is Tauranga’s<br />

Premier Venue for conferences,<br />

meetings, entertainment<br />

and exhibitions. Offering a<br />

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location that features<br />

state <strong>of</strong> the art meeting rooms,<br />

in-house catering, audio visual<br />

services, pr<strong>of</strong>essional conference<br />

organiser (PCO) and marketing/promotional<br />

services.<br />

Virtual meetings<br />

“Bring your events online”<br />

with our Virtual Meetings.<br />

The range <strong>of</strong> onsite and <strong>of</strong>fsite<br />

services include: Remote Presentation,<br />

Video Conferencing,<br />

Web Streaming and Streamed<br />

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The Virtual Meeting<br />

services also includes purpose-built<br />

studios to ‘broadcast<br />

standard’ <strong>of</strong>fering competitive<br />

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For more information on any events, enquiries for Trustpower <strong>Bay</strong>park venues, <strong>Bay</strong>Station activities or service on/<strong>of</strong>f site from <strong>Bay</strong>Catering, <strong>Bay</strong>AudioVisual<br />

or to book our New Year – New Meetings promotion visit www.trustpowerbaypark.co.nz, email events@bayvenues.co.nz or call 07 577 8560.


8 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong><br />

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

<strong>News</strong> readers can<br />

register for FREE tickets<br />

and come along to the<br />

Stratus Blue Cyber<br />

Security event on<br />

14 or 15 <strong>October</strong>.<br />

Protect your digital assets<br />

Over the past few articles, I have written about the importance <strong>of</strong><br />

protecting your business’ digital assets. However, when it comes to<br />

actually implementing security systems and processes, many struggle<br />

to know where to begin.<br />

It doesn’t matter how big or<br />

small your business is – if<br />

the data that is held within<br />

it is <strong>of</strong> interest to unsavoury<br />

characters, then your business<br />

could be at risk.<br />

Here we <strong>of</strong>fer five simple<br />

tips (in no particular order)<br />

and explain how they can help<br />

your business stay one step<br />

ahead <strong>of</strong> the cyber beasties.<br />

1. Manage and install s<strong>of</strong>tware<br />

updates. Patches add<br />

new features to s<strong>of</strong>tware,<br />

but also they <strong>of</strong>ten fix security<br />

vulnerabilities.<br />

2. Ensure that you have a process<br />

and system to backup<br />

key data. Have a backup <strong>of</strong><br />

key data including email,<br />

so that if any malicious attacks<br />

occur, a backup can<br />

be restored. Having files<br />

and data on the cloud is<br />

NOT a backup. It is a place<br />

to store them, but does not<br />

necessarily <strong>of</strong>fer a backup<br />

service. Meaning if your<br />

data gets compromised –<br />

you still may not be able to<br />

return to operation or get it<br />

back.<br />

3. Implement multi-factor authentication<br />

(MFA or 2FA)<br />

across your systems. With<br />

privacy and customer information<br />

access and security<br />

becoming a legal requirement,<br />

anyone who logs in<br />

to your system will need<br />

to provide something else<br />

on top <strong>of</strong> their username<br />

and password, to verify that<br />

they are who they say they<br />

are.<br />

4. Implement security awareness<br />

training for users and<br />

team. Train your staff to<br />

know what to look out for.<br />

Make sure they understand<br />

what to do in certain circumstances.<br />

Have a plan<br />

and disaster recovery options,<br />

which should include<br />

a privacy statement.<br />

And make sure that your<br />

organisation has a privacy<br />

<strong>of</strong>ficer as part <strong>of</strong> the new<br />

legislation.<br />

5. Secure your network. Consider<br />

and think about the<br />

connections both going in<br />

and going out <strong>of</strong> your business<br />

network when you<br />

start thinking about how to<br />

secure it. Install antivirus<br />

and key technology tools<br />

on all devices. Don’t let<br />

mobile phones or non-work<br />

related devices connect to<br />

the company Wifi – have<br />

separate access for these<br />

devices that are separate<br />

from the company network.<br />

This would include<br />

those where they have been<br />

working from home in a<br />

less secure environment. If<br />

you have staff working remotely,<br />

check how they are<br />

connecting – implement the<br />

TECH TALK<br />

> BY TONY SNOW<br />

Tony Snow is chief executive and co-founder <strong>of</strong> Stratus Blue.<br />

He can be contacted at Tony@stratusblue.co.nz.<br />

above – and when patching<br />

is done, ensure the kids<br />

games are removed.<br />

It’s important to remain diligent<br />

when it comes to cyber<br />

security. Don’t just make policy,<br />

make sure your policies<br />

are consistently followed by<br />

your team.<br />

Even if you instruct employees<br />

not to store password lists,<br />

financial data, and other sensitive<br />

information on email<br />

storage, you should still periodically<br />

check that your policy<br />

is being acted upon.<br />

By educating your staff to<br />

spot potential threats and not<br />

letting your guard down you<br />

can build a company culture<br />

that is security-minded. You<br />

can also adopt a training policy<br />

that gives your employees<br />

the tools they need to deal with<br />

online threats effectively, thus<br />

benefiting your company and<br />

your clients.<br />

To find out more, <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> <strong>Business</strong> <strong>News</strong> readers<br />

can register for FREE tickets<br />

and come along to the Stratus<br />

Blue Cyber Security event on<br />

14 or 15 <strong>October</strong>, which is held<br />

in partnership with industry<br />

partners in Cyber Security.<br />

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<strong>October</strong>/<strong>November</strong> <strong>2020</strong> BAY OF PLENTY BUSINESS NEWS 9<br />

How to avoid or get out <strong>of</strong> debt<br />

One <strong>of</strong> the things that have really helped me in my role as a debt<br />

advisor, debt prevention advisor and especially a repossession<br />

company director, is that I genuinely understand debtors, debt<br />

collector avoidance and general debtor behaviour in a way that few<br />

in my industry do.<br />

CREDIT CONTROL<br />

> BY NICK KERR<br />

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

He is also a director <strong>of</strong> International Private Investigations Ltd.<br />

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

The reason comes not<br />

from in-depth analysis or<br />

my 15 years’ experience<br />

on the frontline <strong>of</strong> collections.<br />

Why I understand debtors<br />

– and particularly habitual<br />

debtors – is because for years<br />

before my foray into credit<br />

management I was one. When<br />

I say I was one I don’t mean<br />

that I had the odd bill that went<br />

a bit overdue. I was a proper<br />

phone call screening, constantly<br />

moving, habitual credit<br />

vampire with a -192 Equifax<br />

credit score and every major<br />

credit control company in New<br />

Zealand chasing me.<br />

I calculate that before my<br />

personal credit revelation I<br />

was around $200,000 in debt<br />

and weeks if not days away<br />

from bankruptcy.<br />

Using the methods that I<br />

outline below, I was able to<br />

not only reduce my indebtedness<br />

to zero and restore my<br />

credit score to an optimal one,<br />

I was able to implement rules<br />

and strategies that will ensure<br />

I never fall into the debt trap<br />

ever again.<br />

Domino Strategy<br />

This strategy was taught to<br />

me years ago by a property<br />

developer who was able to<br />

trade his way out <strong>of</strong> $1million<br />

debt amassed through a development<br />

that went horrendously<br />

pear-shaped.<br />

How it works is: let’s say<br />

you have 10 creditors that you<br />

owe $1000 to and you have<br />

$1200 per month available to<br />

pay.<br />

You contact each one and<br />

after outlining your situation<br />

(honesty is vital) you commit<br />

to paying $100 to each per<br />

month for 10 months, which<br />

they accept in writing (making<br />

it binding on both parties and<br />

preventing collection action).<br />

With the remaining $200<br />

you pay an additional $200 per<br />

month on the oldest debt allowing<br />

you to pay this <strong>of</strong>f three<br />

times faster. Once this debt is<br />

cleared in full, you then add<br />

the $300 available to the $100<br />

you are paying on the second<br />

oldest debt, allowing this to be<br />

paid four times faster, and so<br />

on until all debts are cleared.<br />

This strategy has three<br />

outcomes, it clears your debt,<br />

avoids credit defaults on your<br />

credit file and also helps restore<br />

your credit reputation as<br />

the creditors expect it to take<br />

10 months to be paid and are<br />

If Covid-19 has<br />

taught us nothing<br />

else, it has driven<br />

home the importance<br />

<strong>of</strong> budgeting. There<br />

are many free<br />

services that can<br />

assist with this if<br />

isn’t your forte.”<br />

all pleasantly surprised.<br />

Without fail, all <strong>of</strong> my current<br />

9000 clients would accept<br />

a payment plan with certainty,<br />

rather than a hope <strong>of</strong> eventual<br />

payment. As with everything<br />

in life, honest and early communication<br />

is key.<br />

Avoid Debt<br />

Consolidation loans<br />

Many finance providers market<br />

“Debt Consolidation<br />

Loans” to “ Clear” your debts.<br />

This can sometimes this can<br />

be a good idea, providing that<br />

the debts that you have allow<br />

for early repayment without<br />

penalty. But <strong>of</strong>ten you can end<br />

up paying not only the interest<br />

on the new loan, but a good<br />

portion <strong>of</strong> the original debt<br />

interest and “Break” or “early<br />

repayment” fees.<br />

These consolidation loans<br />

are marketed for their ease<br />

<strong>of</strong> use, not their reduction <strong>of</strong><br />

costs. This is especially true<br />

if you use a broker who may<br />

have a not insignificant broker<br />

fee that is also incorporated.<br />

Do not hide<br />

In my experience as an investigator,<br />

there has only been<br />

one person that we could not<br />

find out <strong>of</strong> more than 600<br />

cases. That person has never<br />

had a credit score or bank<br />

account, lives in a tent in the<br />

bush that he moved weekly,<br />

avoided town centres and any<br />

business with CCTV, and had<br />

no digital footprint.<br />

My point is that, unless<br />

you live like this person, you<br />

will be found. Hiding just<br />

makes your debt larger (tracing<br />

and investigation fees can<br />

<strong>of</strong>ten legally be added to your<br />

account).<br />

If you cannot pay a debt<br />

make early contact and ask<br />

about options. Many finance<br />

companies have insurance that<br />

is built in to your loan that can<br />

cover unexpected job losses or<br />

sickness. Early honest contact<br />

will make the creditor much<br />

more likely to earnestly explore<br />

these options and fight<br />

on your behalf.<br />

Insurance is vital<br />

We have dealt with numerous<br />

people that we have had to<br />

chase for debts because <strong>of</strong> unexpected<br />

costs that would have<br />

been covered by insurance.<br />

If your income changes talk<br />

to a good, well-recommended<br />

insurance advisor who can put<br />

in place affordable insurance<br />

to avoid these unexpected and<br />

unwelcome additions <strong>of</strong> debt.<br />

Quit expensive habits<br />

I would say that around 80<br />

percent <strong>of</strong> the debtors that our<br />

company repossess cars from<br />

are cigarette smokers. What is<br />

the correlation?<br />

The average weekly payment<br />

on these finance loans<br />

are $85-100 per week – a one<br />

pack per day smoker buying<br />

the cheapest smokes available<br />

is spending around $25 per<br />

day.<br />

I’m no math’s genius, but<br />

those numbers do seem to be<br />

rather similar. When I was on<br />

my road to credit redemption I<br />

had to choose either my habits<br />

or my future. Stopping one<br />

paid for the other.<br />

Keep your budgeting<br />

tight<br />

Most <strong>of</strong> the people I have<br />

worked with who have navigated<br />

their way out <strong>of</strong> debt and<br />

stayed out <strong>of</strong> it, have a strict<br />

budget.<br />

Remember that people with<br />

umbrellas aren’t overly affected<br />

by the rain and people<br />

that properly prepare for a<br />

budgetary deficit can also remain<br />

relatively unaffected.<br />

If Covid-19 has taught us<br />

nothing else, it has driven<br />

home the importance <strong>of</strong> budgeting.<br />

There are many free<br />

services that can assist with<br />

this if isn’t your forte.<br />

The above is not intended<br />

to be prescriptive, just techniques<br />

that worked for me and<br />

many others.<br />

Just a thought.<br />

Racing to the top – meet our newest Associate<br />

Congratulations to Rebecca Steens, who works in our litigation team, on her promotion to Associate.<br />

Rebecca returned to Tauranga earlier this year and joined<br />

our litigation team after four years working at a global<br />

<strong>of</strong>fshore firm based in Jersey, in the Channel Islands.<br />

She has a range <strong>of</strong> experience and expertise in general civil<br />

litigation matters with a particular focus on trusts and<br />

estates, as well as commercial disputes, directors’ claims<br />

and insolvency.<br />

Rebecca enjoys working with clients and developing<br />

pragmatic solutions. In her spare time, Rebecca<br />

is a competitive road cyclist, and is a member<br />

<strong>of</strong> a women’s cycling team sponsored by the firm.<br />

Rebecca is looking to continue her success whether<br />

in a race or in a Courtroom, and we are proud<br />

to welcome her as our newest Associate.<br />

Rebecca Steens<br />

Associate<br />

DDI 07 570 0687 rebecca.steens@hobec.co.nz<br />

Tauranga / Rotorua / Whakatane / Opotiki<br />

hobec.co.nz<br />

HOB25875 BOP_BN


10 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong>


SPECIAL FEATURE –<br />

TAURIKO BUSINESS ESTATE<br />

<strong>October</strong>/<strong>November</strong> <strong>2020</strong> BAY OF PLENTY BUSINESS NEWS 11<br />

WHY THE TAURIKO<br />

TAURANGA BUBBLE<br />

WORKS<br />

Tauriko has been one <strong>of</strong> the region’s most successful industrial parks and is<br />

a core reason for Tauranga’s strong record over recent years in attracting the<br />

likes <strong>of</strong> Jenkins Freshpac Systems and Brother Printers NZ to the <strong>Bay</strong>.<br />

By DAVID PORTER<br />

A<br />

key recent example is<br />

the decision early this<br />

year by Fletcher Building<br />

to relocate its state-<strong>of</strong>-theart<br />

new Winstone Wallboards<br />

plasterboard facility to Tauriko<br />

– bringing a $400 million<br />

investment boost for the<br />

<strong>Bay</strong>. Fletcher Building chief<br />

executive Ross Taylor said at<br />

the time: “Our current site in<br />

Onehunga, Central Auckland<br />

is land-locked, which has prevented<br />

us from expanding our<br />

operations and improving efficiencies<br />

by consolidating manufacturing<br />

and distribution on<br />

the same site.”<br />

The new Tauriko site was<br />

double the size and would<br />

allow for further capacity<br />

growth, he said.<br />

Nigel Tutt, chief executive<br />

<strong>of</strong> Priority One, which<br />

worked with the company to<br />

help bring it to Tauranga, said<br />

Fletchers needed to move the<br />

plant from Auckland. And the<br />

Tauranga port had a lot to with<br />

the decision.<br />

“They import a large<br />

amount <strong>of</strong> gypsum and Tauriko<br />

was the best choice for their logistics<br />

set up,” he said. “If you<br />

import or export stuff and your<br />

main markets are Auckland or<br />

the upper North Island, Tauriko<br />

works well, especially for<br />

any logistics or distribution.”<br />

But while Tauriko remains<br />

busy, it now needs local infrastructure<br />

developments to<br />

catch up in order to continue<br />

fulfilling its potential, as Bryce<br />

Donne, director <strong>of</strong> primary site<br />

developer Element IMF explains<br />

in the following pages.<br />

However, it’s important to<br />

note, remarks major Tauriko<br />

realtor, Philip Hunt <strong>of</strong> Ray<br />

White Commercial, that Tauriko<br />

benefits from what he calls<br />

the “Tauranga bubble” centred<br />

around the Port <strong>of</strong> Tauranga.<br />

As a result <strong>of</strong> proximity to the<br />

port, importers and exporters<br />

<strong>of</strong> all sizes can ensure ready<br />

access to material imports and<br />

to destinations both nationally<br />

and globally, he says.<br />

Continuing growth<br />

despite Covid-19<br />

Above: Growing fast: Road Safe Traffic Management’s<br />

Tauriko team.<br />

Left: Road Safe Traffic Management’s Logan Dawson<br />

with partner and <strong>of</strong>fice manager Greta Drummond.<br />

Photos/Supplied.<br />

Perhaps the most interesting<br />

aspect <strong>of</strong> Tauriko’s continuing<br />

development success during<br />

a period when the country is<br />

dealing with the ongoing impact<br />

<strong>of</strong> Covid-19, is that companies<br />

aren’t wanting to end<br />

leases because they are having<br />

to close down, but because<br />

they are growing and optimistic,<br />

said Hunt.<br />

“These companies that are<br />

expanding are in many cases<br />

new, with young people running<br />

them,” he said. “It’s exciting<br />

and encouraging.<br />

Logan Dawson started<br />

Road Safe Traffic<br />

Management in 2016 out <strong>of</strong><br />

a garage and home <strong>of</strong>fice<br />

with one vehicle. He now has<br />

<strong>of</strong>fices in Whakatane<br />

and Rotorua, and around<br />

50 staff, 16 trucks and 16 utes.<br />

“We do everything that<br />

happens on a road,” said Dawson.<br />

The company provides<br />

safe compliant spaces for<br />

roadworks – anything from<br />

tree felling and road resealing,<br />

to event parking control.<br />

It is sometimes known as the<br />

“cone” company. He added<br />

that the company sources<br />

thousands <strong>of</strong> cones a year, and<br />

could lose 20 percent or so a<br />

year to wastage.<br />

The company started <strong>of</strong>f<br />

in Tauriko’s Paerangi Place<br />

with around 400 sqm and recently<br />

relocated to much larger<br />

premises through Ray White<br />

in Whakakahe St. “That has<br />

given us better <strong>of</strong>fice space<br />

and more building yard space,”<br />

said Dawson.<br />

Continued on page 12


12 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong><br />

SPECIAL FEATURE –<br />

TAURIKO BUSINESS ESTATE<br />

WHY THE TAURIKO TAURANGA<br />

BUBBLE WORKS<br />

Continued from page 11<br />

Chris Copping started his<br />

business Cars and Commercials<br />

from home four-and-ahalf<br />

years ago and has now<br />

changed premises a couple <strong>of</strong><br />

times since moving to Tauriko,<br />

moving on as larger premises<br />

have become available. He is<br />

now in Rakiraki Way.<br />

The company specialises in<br />

bringing in good used stock out<br />

<strong>of</strong> Japan. “We’re competing in<br />

a market that has had quite a<br />

strong European presence and<br />

we stick to stuff that is a bit<br />

different,” said Copping.<br />

He added that given the<br />

abundance <strong>of</strong> car companies<br />

in downtown Tauranga and the<br />

Mount, Tauriko made sense as<br />

a location, and given its strong<br />

online presence the company<br />

could be easily found.<br />

Chris Copping: Forget about outside influences and<br />

absolutely back yourself. Photo/Supplied<br />

Strategically Tauriko is a well-located prime<br />

place, connects with Waikato and has a fairly<br />

direct route to the port – it’s a great place to<br />

be.” – Matt Cowley<br />

Being on the outskirts <strong>of</strong> town<br />

worked better for out-<strong>of</strong>-town<br />

buyers as well.<br />

“You need to forget about<br />

doom and gloom and forget<br />

about external influences, like<br />

Covid-19,” said Copping.<br />

“I sat down and looked at<br />

what data was available to me<br />

after four years and enquiries<br />

were still strong. <strong>Business</strong> is<br />

like anything - you get out <strong>of</strong><br />

it what you’re prepared to put<br />

in. You’ve got to put the hours<br />

in and you have to absolutely<br />

back yourself because no one<br />

else will.”<br />

Matt Cowley, chief executive<br />

<strong>of</strong> the Tauranga Chamber<br />

<strong>of</strong> Commerce, said that<br />

anecdotally he had heard <strong>of</strong> a<br />

number <strong>of</strong> business that had<br />

relocated from other areas to<br />

Tauriko to be able to future<br />

pro<strong>of</strong> their development.<br />

“Strategically Tauriko is a<br />

well-located prime place, connects<br />

with Waikato and has a<br />

fairly direct route to the port –<br />

it’s a great place to be.”<br />

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SPECIAL FEATURE –<br />

TAURIKO BUSINESS ESTATE<br />

<strong>October</strong>/<strong>November</strong> <strong>2020</strong> BAY OF PLENTY BUSINESS NEWS 13<br />

Tauriko – Positioned for further growth<br />

Tauriko <strong>Business</strong> Estate continues to experience high growth and<br />

demand, says Bryce Donne, Director <strong>of</strong> Element IMF, which has<br />

been developing the site since its inception in 2006.<br />

By DAVID PORTER<br />

With excellent access to<br />

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

and the downtown<br />

Tauranga CBD, as well as<br />

Waikato and Auckland, Tauriko<br />

is comprised <strong>of</strong> approximately<br />

200 ha.<br />

Around 150 ha has been<br />

completed <strong>of</strong> net developed<br />

lots, and businesses are <strong>of</strong>fered<br />

a choice <strong>of</strong> freehold purchase,<br />

design and build and ground<br />

leases.<br />

The major constraint facing<br />

what has been one <strong>of</strong> the<br />

region’s most successful business<br />

estates, is the need for<br />

local and central government<br />

support for the infrastructure<br />

needed to develop further land<br />

options as the current zoned<br />

area <strong>of</strong> the estate has been<br />

largely developed.<br />

“At the moment there is<br />

significant demand from business<br />

wanting to come here<br />

that we can’t cater for,” said<br />

Donne. “But for now we are<br />

still pretty hard out in earthworks<br />

and civil construction<br />

delivering what was sold over<br />

the past 24 months.”<br />

Currently construction at<br />

Tauriko is focused in Stage<br />

Phase 3A – essentially the<br />

area between Gargan Road<br />

and Belk Road, while Element<br />

IMF is also focused on improving<br />

the amenities <strong>of</strong> the<br />

existing business estate.<br />

“We are looking to improve<br />

our communication with our<br />

neighbours and other stakeholders,<br />

whilst also lifting our<br />

game in the estate in terms<br />

<strong>of</strong> more planting, walkways<br />

and general amenities,” said<br />

Donne.<br />

Donne noted that the ability<br />

to bring on further land for<br />

development was dependent<br />

on advancing a number <strong>of</strong><br />

local government processes,<br />

together with the provision <strong>of</strong><br />

infrastructure projects, which<br />

require investment from both<br />

central and local government,<br />

in addition to developer<br />

funding.<br />

The proposed Stage 4 at<br />

Tauriko <strong>Business</strong> Estate is<br />

about 100 ha predominantly<br />

on the south side <strong>of</strong> Belk Road.<br />

This area is currently within<br />

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

Council territory, but an application<br />

to move the boundary<br />

<strong>of</strong> Tauranga City to include<br />

this area is under consideration<br />

by the Local Government<br />

Commission.<br />

If successful this change<br />

would pave the way for future<br />

delivery <strong>of</strong> infrastructure, but<br />

is only one <strong>of</strong> a number <strong>of</strong> processes<br />

and works required before<br />

the release <strong>of</strong> further business<br />

land could be achieved.<br />

New infrastructure for<br />

the 3 Waters (drinking water,<br />

wastewater and stormwater)<br />

is required, but planning and<br />

design works to provide these<br />

in the time required are already<br />

well advanced, and are unlikely<br />

to be the factor holding<br />

back a further release <strong>of</strong> land.<br />

“The biggest constraint to<br />

growth is the need for the connection<br />

<strong>of</strong> the internal Tauriko<br />

<strong>Business</strong> Estate road network<br />

to State Highway 29 at or<br />

around Belk Road. We realistically<br />

can’t release much more<br />

land at all until that happens.<br />

This connection will also<br />

provide a safe and efficient<br />

replacement for the existing<br />

Belk Road connection which<br />

residents have been looking<br />

forward to for many years.”<br />

We are still pretty hard out in earthworks and<br />

civil construction delivering what was sold<br />

over the past 24 months.” – Bryce Donne<br />

Even right now there might<br />

be $500 million or more in<br />

private sector building projects<br />

that Tauriko could get<br />

going without any government<br />

money spent, if we could only<br />

get the State Highway connection<br />

built, said Donne. “The estimated<br />

cost <strong>of</strong> the connection<br />

is in the order <strong>of</strong> $11 million,<br />

much <strong>of</strong> which will come from<br />

existing and future development<br />

contributions, requiring<br />

comparatively modest central<br />

government investment. To me<br />

that would look like money exceedingly<br />

well spent.”<br />

Donne said that in terms <strong>of</strong><br />

location, Tauriko worked very<br />

well for local businesses.<br />

“There’s a lot <strong>of</strong> residential<br />

growth in this western<br />

corridor which is to come. It<br />

fits very well in relation to the<br />

port. And it fits in very well in<br />

relationship to dealing with all<br />

<strong>of</strong> our trade partners, most <strong>of</strong><br />

which are in the Waikato and<br />

Auckland.”<br />

Donne acknowledged that<br />

success tended to breed success,<br />

with economic activity<br />

attracting more economic<br />

activity.<br />

“People want to come and<br />

locate where their contemporaries<br />

are.”


14 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong><br />

SPECIAL FEATURE –<br />

TAURIKO BUSINESS ESTATE<br />

Why Tauriko continues to thrive<br />

Perhaps surprisingly,<br />

says Ray White<br />

Commercial director<br />

Philip Hunt, despite<br />

Covid-19 the Tauriko<br />

<strong>Business</strong> Estate is<br />

busier than ever.<br />

By DAVID PORTER<br />

A<br />

Tauriko specialist with<br />

eight years’ experience<br />

in the area, he says he<br />

initially feared that some <strong>of</strong><br />

the smaller operators could be<br />

hard hit.<br />

“But without exception, the<br />

smaller operators have moved<br />

very rapidly, repositioned their<br />

businesses where necessary or<br />

moved online,” he said.<br />

“Their businesses have<br />

moved dramatically and positively<br />

and I get more calls now<br />

from industrial tenants saying<br />

‘help me get out <strong>of</strong> these premises<br />

because I’ve outgrown<br />

them’.<br />

“Without exception it’s<br />

not because they’re having to<br />

close – it’s because they want<br />

to move into larger premises.”<br />

Hunt said that because he<br />

has a following <strong>of</strong> tenants, he<br />

is able to get them out before<br />

their leases end because he has<br />

probably sold the property to<br />

a good landlord who understands<br />

he will find new tenants<br />

for them without problems.<br />

“I go to the landlord and say<br />

your tenants have outgrown<br />

the premises, can I get them<br />

out early. And they say sure,<br />

just bring me a new lease.”<br />

Asked why the business<br />

estate is performing better<br />

These companies that are expanding<br />

are in many cases new, with young<br />

people running them – it’s exciting and<br />

encouraging.” – Philip Hunt<br />

than might have been expected<br />

given the impact <strong>of</strong> the pandemic,<br />

Hunt puts it down to<br />

what he calls the Tauranga/<br />

Tauriko bubble.<br />

“I think economists and<br />

banks don’t understand how<br />

this bubble works,” he said. “I<br />

would say a large part <strong>of</strong> it is<br />

caused by our proximity to the<br />

Port <strong>of</strong> Tauranga.”<br />

As a result <strong>of</strong> the port, importers<br />

and exporters <strong>of</strong> all<br />

sizes can ensure ready access<br />

to material imports and to destinations<br />

both nationally and<br />

globally, he said.<br />

Hunt has been involved<br />

in developing around 200 industrial<br />

unit developments<br />

in Tauriko, as well as several<br />

in Mount Maunganui and<br />

Papamoa.<br />

“I keep very strong records<br />

on all my enquiries so I know<br />

what people are looking for,”<br />

he said.<br />

“At any given time I have a<br />

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

demand that is there.<br />

“Then I will bring a development<br />

on and sell <strong>of</strong>f the<br />

Tauriko’s Paerangi Place<br />

plans to satisfy the demand <strong>of</strong><br />

that market.”<br />

A typical unit development<br />

would take around a year or so,<br />

and Hunt says that past experience<br />

can see a large capital<br />

gain during the development<br />

period for someone buying <strong>of</strong>f<br />

the plan, usually because <strong>of</strong> the<br />

increase in land value.<br />

But he cautions that investors<br />

shouldn’t buy just for capital<br />

gain.<br />

“These are long-term holds<br />

and are designed as a launch<br />

pad for people who want to get<br />

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SPECIAL FEATURE –<br />

TAURIKO BUSINESS ESTATE<br />

<strong>October</strong>/<strong>November</strong> <strong>2020</strong> BAY OF PLENTY BUSINESS NEWS 15<br />

into a commercial or industrial<br />

investment and people generally<br />

buy and hold,” he said.<br />

“And we getting more and<br />

more first-time investors who<br />

are residential people shifting<br />

their focus.” One <strong>of</strong> the key<br />

attractions was the continuity<br />

and reliability <strong>of</strong> both landlords<br />

and tenants, he said.<br />

“I’ve had residential investors<br />

come to me for industrial<br />

and have one now on his seventh<br />

property. He’s never had a<br />

week without a tenant. He’s an<br />

exceptional landlord and that<br />

word gets out.”<br />

Hunt strongly believes in<br />

Tauriko’s potential and is always<br />

an investor himself.<br />

“I am always on the property<br />

and new investors should<br />

ensure they build a relationship<br />

with their agent and that<br />

the agent can deliver tenants.<br />

“I have a following in that<br />

part <strong>of</strong> the market. So if anyone’s<br />

going to tenant them it<br />

will be me and my team.”<br />

Hunt has appointed Christy<br />

Arundel, a licenced sales person<br />

specialising in the Tauranga<br />

CBD and Tauriko, as his<br />

second-in-charge.<br />

He described Arundel –<br />

who won a “Client’s Choice,<br />

Customer Service, Individual”<br />

award at the recent Ray White<br />

International Awards – as “an<br />

exceptional talent”.<br />

The Ray White commercial team at Tauriko: Christy Arundel, Philip Hunt, Kate Bosworth, Michael McMichael, Ivy Shen, Antony Lee and David Herman.<br />

Ray White International Awards<br />

At the competitive annual Ray<br />

White Commercial International<br />

Awards held virtually on 27<br />

August, local Ray White Commercial<br />

Tauranga received a series <strong>of</strong><br />

accolades.<br />

Commercial Tauranga was recognised<br />

for excellence in customer<br />

service receiving the coveted Customer<br />

Service “Clients’ Choice”<br />

ferYoung’s lay <strong>of</strong> the land<br />

Award for the fourth year in a row.<br />

Commercial Tauranga was Awarded:<br />

• Clients Choice – Customer Service<br />

– Commercial Tauranga<br />

Office<br />

• Clients Choice – Customer Service<br />

- Individual – Philip Hunt<br />

• Clients Choice – Customer Service<br />

– Individual – Christy Arundel<br />

• Philip Hunt – Elite Performer<br />

(Alan White)<br />

• Philip Hunt – No. 5 Commercial<br />

Agent Internationally<br />

• Kate Bosworth – Finalist (one <strong>of</strong><br />

the top three internationally) for<br />

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

Philip Hunt achieved Ray White<br />

Commercial Salesperson <strong>of</strong> the<br />

Year for the fifth year in a row and<br />

was honoured as an Elite performer,<br />

ranking him among the top two percent<br />

<strong>of</strong> Ray White agents in the country’s<br />

more than 180 branches.<br />

“It is an honour to be recognised<br />

as one <strong>of</strong> the best performers not only<br />

in Commercial, but within the whole<br />

Group,” said Hunt. “The awards<br />

demonstrate the commitment and<br />

energy within our boutique Tauranga<br />

Commercial Team.”<br />

PROPERTY VALUERS<br />

TelferYoung’s lay <strong>of</strong> the land<br />

’s happening with Tauriko land prices?<br />

<strong>of</strong> industrial sites in Tauriko show steadily<br />

No job is too big or too small<br />

asing land values. In 2016, prices were<br />

minantly in the mid-$200s per square metre<br />

his increased What’s to mid-$300s happening per with square metre<br />

Company pr<strong>of</strong>ile<br />

Tauriko land prices?<br />

17, then low to mid-$400s per square metre<br />

ost <strong>of</strong> the Sales Stage <strong>of</strong> 3 industrial sections sites in mid-2019. in Tauriko Most<br />

tly in early show to mid-<strong>2020</strong> steadily increasing there have land values.<br />

<strong>of</strong> sales, In 2016, with prices the were sales predomi-<br />

<strong>of</strong> medium<br />

been a<br />

d amount<br />

nantly in the mid-$200s per square<br />

ge sized sites metre typically and this sitting increased in to the mid- mid-high<br />

/m2 range, $300s up to per mid-$500/m² square metre depending 2017, on<br />

nd location. then Smaller low to mid-$400s sites sell per at square higher rates,<br />

corner sites. metre for most <strong>of</strong> the Stage 3 sections<br />

in mid-2019.<br />

have land prices Most recently increased early so much? to mid-<br />

<strong>2020</strong> there have been a limited<br />

market and localities in which they operate. W<br />

amount <strong>of</strong> sales, with the sales <strong>of</strong><br />

No job is too big or too small.<br />

rice <strong>of</strong> land is determined by supply and<br />

to develop and maintain strong ongoing<br />

medium to large sized sites typically<br />

also sitting a function in the mid-high <strong>of</strong> the value $400/ <strong>of</strong> Telfer Young Tauranga's Commercial Valuation Team<br />

relationships the company with our was known clients. for many<br />

nd and is<br />

leted buildings m 2 range, less up the to mid-$500/m² costs <strong>of</strong> construction.<br />

depending<br />

values on are size assessed and location. by<br />

Where can TelferYoung assist?<br />

years as Middleton Valuation. In<br />

trial property Within our 2011 team we joined we have the specialists TelferYoung in rural,<br />

erting the Smaller rental sites value sell (market at higher rent) rates, as into<br />

commercial group and which residential is represented properties. by 13 This in<br />

TelferYoung Tauranga’s commercial valuation team.<br />

do corner sites.<br />

leading independently owned valuation<br />

practices throughout New<br />

, using an appropriate investor return<br />

Often, TelferYoung are engaged by our clients prior to the issue <strong>of</strong> a title, apartments, orchards, pastoral properties,<br />

talisation Why rate). have Since land 2015/16, prices Tauriko has yields across with the wider instructions commercial to provide Where a can valuation TelferYoung <strong>of</strong> the vacant tine land valuation for mortgage commercial and industrial buildings and resid<br />

that requires the client<br />

been provide prepared, us with the plans, specifi-<br />

dwellings. Each <strong>of</strong> the practices has an<br />

Zealand.<br />

significant increased growth in so market much? rents. This, property market funding has <strong>of</strong> had the a multiplier<br />

effect next on the step values in <strong>of</strong> the indus-<br />

valuation process is to provide an ‘as cations, proposed’ consents value and preferably <strong>of</strong> the established history within their<br />

settlement. assist? Once building plans have<br />

ined with decreasing yields across the wider<br />

The price <strong>of</strong> land is determined trial properties.<br />

Often, TelferYoung are engaged by building contract.<br />

respective region, and in-depth<br />

ercial property by supply market and demand has had and is a multiplier the completed project <strong>of</strong>f plans. This is based on the assumption that<br />

also Whilst construction costs have our clients prior to the issue <strong>of</strong> title, This will be the start <strong>of</strong> an ongoing<br />

relationship that <strong>of</strong>ten involves ities in which they operate.<br />

knowledge <strong>of</strong> the market and local-<br />

t on the values a function <strong>of</strong> industrial <strong>of</strong> the value properties. <strong>of</strong> completed<br />

have buildings also less increased the costs during <strong>of</strong> <strong>of</strong>fset this these valuation gains slightly, that this requires is uation the client <strong>of</strong> the vacant provide land us for with mort-plans, insurance specifications, valuations, rent reviews We aim to develop and maintain<br />

Whilst the building development is complete. This is a relatively routine<br />

also increased during this time to with instructions to provide a val-<br />

ruction costs<br />

to <strong>of</strong>fset these construction. gains slightly, this is only only minor consents and the resulting and preferably effect gage the funding building <strong>of</strong> the contract. settlement. and periodic market valuation strong ongoing relationships with<br />

Industrial property values are is that land values have increased. Once building plans have been updates.<br />

our clients.<br />

r and the resulting assessed by effect converting is that the land rental values The escalation This will in be land the values start <strong>of</strong> prepared, an ongoing the next relationship step in the valuation<br />

rent reviews process is and to provide periodic an ‘as market Company valuation pr<strong>of</strong>ile<br />

cialists in rural, commercial and<br />

that <strong>of</strong>ten involves<br />

Within our team we have spe-<br />

increased. value The escalation (market rent) in into land value, values has been exacerbated insurance valuations, in Tauriko<br />

exacerbated using in an Tauriko appropriate due investor a shortage return due <strong>of</strong> to a shortage <strong>of</strong> land in Tauranga’s<br />

the other<br />

proposed’ value <strong>of</strong> the completed<br />

residential properties. This includes<br />

apartments, orchards, pas-<br />

in Tauranga’s (capitalisation other industrial rate). areas and<br />

updates.<br />

industrial areas and project <strong>of</strong>f plans.<br />

TelferYoung Tauranga has 12<br />

Since 2015/16, Tauriko has seen the relatively slow release <strong>of</strong> sites This is based on the assumption valuers, comprising nine registered toral properties, commercial and<br />

vely slow release <strong>of</strong> sites in Tauriko, which<br />

significant growth in market rents. in Tauriko, which has seen pent up that the building development is valuers and three graduate valuers. industrial buildings and residential<br />

een pent up This, demand. combined with decreasing demand.<br />

complete. This is a relatively rou-<br />

Initially formed in the late 1960s, dwellings.<br />

TelferYoung Tauranga has 12 valuers, compris<br />

registered valuers and 3 graduate valuers. Initi<br />

formed in the late 1960s, the company was kno<br />

for many years as Middleton Valuation. In 2011<br />

joined the TelferYoung group which is represe<br />

by 13 leading independently owned valuation<br />

practices throughout New Zealand. Each <strong>of</strong> the<br />

practices has an established history within the<br />

respective region, and in-depth knowledge <strong>of</strong><br />

COMMERCIAL COMMERCIAL<br />

RURAL RURAL<br />

RESIDENTIAL RESIDENTIAL<br />

telferyoung.com


16 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong><br />

SPECIAL FEATURE –<br />

TAURIKO BUSINESS ESTATE<br />

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Design and build excellence<br />

at Tauriko<br />

CONSTRUCTION<br />

Hawes Building Solutions have firmly established<br />

themselves in the past 20 years as one <strong>of</strong><br />

Tauranga’s leading construction companies.<br />

The locally owned, family-run business is behind<br />

many exceptional design and build projects in the<br />

region, which include several highly functional and<br />

eye-catching commercial buildings at the Tauriko<br />

<strong>Business</strong> Estate.<br />

Due for completion by Hawes<br />

later this year is an innovative<br />

project for Easy Gate,<br />

New Zealand’s leading aluminium<br />

gate company.<br />

In collaboration with Kirk Roberts<br />

Engineers, they have provided<br />

a cutting-edge solution for this<br />

company’s new <strong>of</strong>fices, powder<br />

coating plant, and warehouse space<br />

adjacent to their existing factory on<br />

Hotuhotu Street.<br />

Other design and build projects<br />

that Hawes Building Solutions<br />

has worked on at Tauriko<br />

in recent years are the premises<br />

for building machinery suppliers<br />

Macma Machinery, the <strong>Bay</strong><br />

Bathrooms showroom, and a large<br />

three tenancy industrial building<br />

with <strong>of</strong>fices, a showroom area and<br />

a large open warehouse for Harpa<br />

Developments.<br />

“As we’ve been in business for<br />

20 years, we know how crucial it<br />

is to understand our clients’ needs<br />

from the earliest stages <strong>of</strong> the development<br />

<strong>of</strong> industrial builds.<br />

“Regardless <strong>of</strong> the design or<br />

complexity <strong>of</strong> a project, we aim to<br />

surpass our clients’ expectations<br />

every time,” explains director and<br />

quantity surveyor Anthony Hawes.<br />

With his brother Mark Hawes,<br />

who founded the business in 2000,<br />

Anthony leads a team <strong>of</strong> 20 staff<br />

which includes another quantity<br />

surveyor, a registered architect,<br />

senior site managers, carpenters,<br />

hammer hands, apprentices, and an<br />

<strong>of</strong>fice manager.<br />

An extra crew <strong>of</strong> skilled contracting<br />

carpenters can be called<br />

upon when required.<br />

The business is a member <strong>of</strong><br />

the Certified Builders Association<br />

<strong>of</strong> New Zealand, and Mark Hawes<br />

has been a Carpentry and Site 2 Licensed<br />

Building Practitioner since<br />

2008.<br />

All site managers are Licensed<br />

Building Practitioners.<br />

“Personal service is key in the<br />

way we work at Hawes, and we<br />

look after our team. Not only do<br />

we take great pride in the quality<br />

<strong>of</strong> their workmanship, we are also<br />

really proud <strong>of</strong> the positive attitude<br />

<strong>of</strong> our people,” says Mark.<br />

Alongside commercial and<br />

One <strong>of</strong> Hawes Building Solution’s large commercial building projects delivered at Tauriko.<br />

industrial buildings, the Hawes<br />

Building Solutions team is also<br />

known for their exceptional work<br />

on high-end residential builds.<br />

They have designed and delivered<br />

several spectacular new homes<br />

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

and they have worked on major<br />

home renovations and extensive<br />

leaky home remediations as well.<br />

Working closely with clients<br />

and their architects, the Hawes<br />

team can organise the entire building<br />

process, from drawing up the<br />

plans and dealing with all council<br />

procedures and consents, through<br />

to delivery. They are highly experienced,<br />

great to deal with, and passionate<br />

about what they do.<br />

For your next construction project<br />

at Tauriko or elsewhere in the<br />

region, either commercial or residential,<br />

call Hawes Building Solutions<br />

on 07 578 2414 or see them<br />

online at www.hawes.build.<br />

You will find their HQ on Glenlyon<br />

Avenue in Greerton.<br />

Hawes Building Solutions at work on a design<br />

and build project in the Tauriko <strong>Business</strong> Estate.


SPECIAL FEATURE –<br />

TAURIKO BUSINESS ESTATE<br />

<strong>October</strong>/<strong>November</strong> <strong>2020</strong> BAY OF PLENTY BUSINESS NEWS 17<br />

Kiwibank, genuinely helping Kiwis<br />

BANKING & FINANCE<br />

Kiwibank exists as a bank that genuinely helps Kiwis. This is what drew me<br />

to the bank 7 years ago, it was true then and its true now. Working with and<br />

supporting local businesses and playing a part in making a difference to the<br />

country I love are the things that get me going day in and day out. Being able to<br />

do that in the beautiful <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, and especially in the rapidly growing city <strong>of</strong><br />

Tauranga is actually a genuine privilege.<br />

In the current environment, businesses<br />

are faced with a number <strong>of</strong><br />

challenges, uncertainty being one<br />

<strong>of</strong> them.<br />

At a time like this having a bank<br />

and banker who is available to talk<br />

is a real comfort and I’m finding that<br />

just being accessible for even simple<br />

conversations goes a long way<br />

to providing confidence for moving<br />

ahead.<br />

There’s real opportunities out<br />

there, and working alongside clients<br />

to make these a reality where possible<br />

can be a real positive experience.<br />

New Zealand has a stable economy<br />

and a history <strong>of</strong> weathering<br />

global financial challenges well. Our<br />

central bank and government are<br />

doing what they can to minimise the<br />

economic impact for Kiwis, and the<br />

New Zealand public has responded<br />

responsibly to the lockdown.<br />

Here at Kiwibank we’re playing<br />

our part too. We know small and medium<br />

businesses are the backbone <strong>of</strong><br />

the New Zealand economy. We are<br />

seeing right now that Kiwis really<br />

are buying local, and that includes<br />

banking local.<br />

We know in this current environment<br />

cashflow is an issue for<br />

many, so we have a resilience and<br />

recovery programme to support our<br />

customers.<br />

Options available to our business<br />

banking customers are changing<br />

your loans temporarily to Interest<br />

Only, Temporary Overdraft Facilities,<br />

Loan Repayment Deferrals,<br />

and the <strong>Business</strong> Finance Guarantee<br />

Scheme. (Criteria does apply,<br />

and this is only open to current Kiwibank<br />

customers. If you bank elsewhere,<br />

you need to approach your<br />

own bank).<br />

If you need assistance, we suggest<br />

you visit our website in the first<br />

instance or call your relationship<br />

manager.<br />

Outside <strong>of</strong> work I have a real passion<br />

for sports <strong>of</strong> various types. Over<br />

the years I’ve represented New Zealand<br />

internationally in two different<br />

sporting codes, one <strong>of</strong> which I still<br />

hold both national and international<br />

records in. My competing days are<br />

behind me, although sometimes it’s<br />

awfully tempting to jump back in<br />

and see what happens!<br />

Probably for the best, these days<br />

I direct my sporting energy into supporting<br />

my kids and building up others<br />

through coaching.<br />

Over the last few years this has<br />

taken me to leading teams at both<br />

national and international levels. It<br />

seems I just can’t help myself and<br />

have thrown myself into coaching<br />

with the same enthusiasm that I did<br />

to my own sporting endeavours.<br />

Kieran Mischewski<br />

Ph 027 707 9022 or call our<br />

<strong>Business</strong> Team on 0800 601 601<br />

Kieran Mischewski<br />

Small and medium businesses are the backbone<br />

<strong>of</strong> the New Zealand economy.<br />

If your business needs support, our team <strong>of</strong> specialists are here for you.<br />

kiwibank.co.nz/business<br />

We will get through this together. Mā te Manaakitanga tātau e kōkiri whakamua.<br />

THE BAY OF PLENTY’S TRUSTED NAME FOR SECURING AND MANAGING QUALITY<br />

PROPERTY INVESTMENTS THAT CREATE VALUE AND MAXIMISE PERFORMANCE<br />

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Call us today: 07 572 1310<br />

WWW.FOCUSONPROPERTY.CO.NZ


18 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong><br />

SPECIAL FEATURE –<br />

TAURIKO BUSINESS ESTATE<br />

iLine Construction –<br />

Continued growth in<br />

construction sector<br />

The impact <strong>of</strong> <strong>2020</strong> across the construction industry has undoubtedly been<br />

wide-ranging and disruptive for many. Despite the disturbances this year has<br />

seen, we believe that opportunities continue to exist during times <strong>of</strong> adversity;<br />

with our committed and anticipated future workload demonstrating exactly that.<br />

Drone footage <strong>of</strong> industrial<br />

units under construction at<br />

159 Matakokiri Drive, Tauriko<br />

CONSTRUCTION<br />

Operating across the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong>, Rotorua, Waikato<br />

and Auckland, we have seen<br />

distinct growth within the Tauriko<br />

<strong>Business</strong> Estate, where we have<br />

been involved in the construction<br />

<strong>of</strong> a number <strong>of</strong> purpose-built Design<br />

and Build projects both pre<br />

and post lockdown.<br />

We are fortunate to have existing<br />

relationships with a number<br />

<strong>of</strong> local developers, thanks to our<br />

solid reputation and long-standing<br />

presence in the region, which<br />

has ensured considerable forward<br />

workload across the ever-expanding<br />

Tauriko landscape.<br />

Our current activity in Tauriko<br />

includes an industrial unit development<br />

comprising three generous<br />

sized <strong>of</strong>fice/warehouses on Matakokiri<br />

Drive for developers Vista<br />

Belle Limited and a purpose-built<br />

industrial facility for Raeden Group<br />

on Taitimu Street.<br />

Also situated on Taitimu Street<br />

are two further Tauriko developments,<br />

recently added to the iLine<br />

portfolio – An industrial building<br />

for OJI Fibre Solutions and a<br />

large-scale kiwifruit coolstore extension<br />

for Mount Pack and Cool<br />

(MPAC) both completed to programme,<br />

despite interruptions from<br />

Covid-19.<br />

We’re seeing a high-level <strong>of</strong><br />

activity and increased demand for<br />

custom-designed commercial properties<br />

in the area, which is a reflection<br />

on Tauriko’s accessibility and<br />

its capacity for continued growth.<br />

It is fast becoming a central hub<br />

for both local and national industry<br />

and we’re proud to be a part <strong>of</strong> that<br />

growth.<br />

iLine’s ability to innovate and<br />

adapt quickly has been a huge advantage<br />

over the past six months.<br />

We have a strong team <strong>of</strong> construction<br />

pr<strong>of</strong>essionals who understand<br />

the complexities <strong>of</strong> commercial<br />

construction and have extensive<br />

experience within the Design and<br />

Build sector.<br />

We are passionate about bringing<br />

our clients’ ideas to life and<br />

enjoy the process <strong>of</strong> delivering<br />

OJI Fibre Logistics’ purpose-built facility on Taitimu St, Tauriko<br />

cost-effectiveness and quality on<br />

every job we manage.<br />

We work closely with our<br />

clients, suppliers and contractors<br />

to ensure that each project is designed,<br />

detailed and built with<br />

economy, durability and aesthetics<br />

in mind.<br />

Construction is an interesting<br />

industry right now, but we believe<br />

that if managed well, there is a<br />

unique opportunity for our sector to<br />

help lead the way in New Zealand’s<br />

economic recovery.<br />

For more information on how<br />

iLine can help you deliver your<br />

next construction project please<br />

visit iline.co.nz or call 07 571 0527.<br />

CONSTRUCTION<br />

WITH A<br />

DIFFERENCE.<br />

Visit our website for more information<br />

or contact us today to discuss your<br />

next construction project.<br />

07 571 0527 | iline.co.nz<br />

YOUR LOCAL TAURIKO<br />

COMMERCIAL WINDOW, DOOR<br />

AND JOINERY SPECIALISTS<br />

We work with our clients and<br />

architects to provide quality<br />

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windows and doors talk to Tasman Aluminium on<br />

0800 20 10 20 or tasmanaluminium.co.nz<br />

ACG Tauranga Gymnasium<br />

tasma


<strong>October</strong>/<strong>November</strong> <strong>2020</strong> BAY OF PLENTY BUSINESS NEWS 19<br />

Rise <strong>of</strong> the Franchisee Entrepreneur<br />

I remember my year 11 economics class and the subject <strong>of</strong><br />

entrepreneurship; it was described as being “hard to define and<br />

even harder to encourage”. It sounded elusive and counter to the<br />

field <strong>of</strong> economics where we generally like to be able to define our<br />

parameters for everything we study.<br />

How do we define entrepreneurship<br />

and what<br />

is its relationship with<br />

franchising? Let’s start with<br />

returning to the definition. It<br />

turns out my year 11 class was<br />

not wrong. Wikipedia allocates<br />

nearly 250 words to a definition<br />

which includes:<br />

• Entrepreneurship is the creation<br />

or extraction <strong>of</strong> value.<br />

• Entrepreneurship is the process<br />

<strong>of</strong> designing, launching<br />

and running a new business,<br />

<strong>of</strong>ten a small business.<br />

• Entrepreneurship is the capacity<br />

and willingness to<br />

develop, organise and manage<br />

a business venture along<br />

with any <strong>of</strong> its risks to make<br />

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

• The people who create these<br />

businesses are <strong>of</strong>ten referred<br />

to as entrepreneurs.<br />

I am going to summarise<br />

and define entrepreneurship as<br />

a willingness to, or process <strong>of</strong><br />

taking on commercial risk, developing<br />

and managing a business<br />

with a view <strong>of</strong> creating<br />

value, pr<strong>of</strong>it or return.<br />

The misperception<br />

that franchising stifles<br />

entrepreneurship<br />

We have conversations every<br />

day with people who want to<br />

start and grow their own businesses.<br />

They want to take a<br />

measured risk, invest time<br />

and money with a view <strong>of</strong><br />

controlling their future and <strong>of</strong><br />

course, make a return. Without<br />

perhaps saying it themselves,<br />

they want to be entrepreneurs.<br />

Those that have already decided<br />

that franchising is their<br />

route we call franchisee entrepreneurs.<br />

The statistics overwhelmingly<br />

demonstrate franchisee<br />

entrepreneurs are more<br />

successful.<br />

Some budding entrepreneurs<br />

however have a misconception<br />

that franchising<br />

will stifle their entrepreneurial<br />

aspirations. I believe this<br />

could not be further from the<br />

truth, and invariably we have<br />

a discussion around recurring<br />

themes:<br />

I want to own my own<br />

business, not someone<br />

else’s<br />

Nearly every franchise brochure<br />

or explanation that I<br />

have seen over 20 years starts<br />

with something similar to “be<br />

in business for yourself, not<br />

by yourself”. This is true,<br />

franchisees find – whether directly<br />

or through borrowings<br />

the business themselves, and<br />

the risks and rewards sit solely<br />

with the business owner, the<br />

franchisee entrepreneur. It is<br />

their business - it is not an outlet<br />

or subbranch <strong>of</strong> the franchisor’s<br />

business.<br />

I want something I can<br />

develop, control and<br />

influence<br />

That is not solely, but it is ultimately<br />

in the hands <strong>of</strong> the franchisee<br />

entrepreneur. If it is a<br />

start-up or greenfield franchise<br />

business, they obviously need<br />

to develop and grow the business.<br />

If buying an established<br />

franchised business, there is<br />

always room to develop, refine<br />

and do better. And the<br />

best part about franchising is it<br />

provides the road map and the<br />

benchmarking against which<br />

success can be measured.<br />

From over 20 years <strong>of</strong> research<br />

the Franchise Relationship<br />

Institute has established<br />

that one factor accounts <strong>of</strong><br />

approximately 40 percent <strong>of</strong><br />

the success (or otherwise) <strong>of</strong><br />

a franchised business. It is<br />

not the brand, not the location<br />

(though both are critical), it is<br />

the franchisee.<br />

I don’t want to be told<br />

what to sell and I don’t<br />

want to be stifled<br />

Firstly, here is the wake up,<br />

“someone” is going to tell you<br />

FRANCHISING<br />

> BY NATHAN BONNEY<br />

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

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

what you should be selling.<br />

That “someone” is the “market”<br />

– if the market does not<br />

want it, you won’t sell it. And<br />

why would you not want the<br />

collective experience, support<br />

and guidance <strong>of</strong> a franchise<br />

system to assist you with what<br />

you should be selling?<br />

We also <strong>of</strong>ten hear people<br />

say they don’t want their ideas<br />

or innovation stifled. Good<br />

franchise systems do not stifle<br />

innovation, they have the ability<br />

to develop, test and roll out<br />

innovation, <strong>of</strong>ten generated<br />

by franchisees. Need we say<br />

more than Big Mac – invented<br />

by a franchisee, now the greatest<br />

selling burger on earth.<br />

I don’t want to follow<br />

rules<br />

Let’s face it, we have rules in<br />

business – we must pay taxes,<br />

we must follow an extraordinary<br />

number <strong>of</strong> legislative<br />

requirements and we must<br />

perhaps most importantly,<br />

do the things, and follow the<br />

rules that will create pr<strong>of</strong>itable<br />

businesses.<br />

Franchise systems develop<br />

processes and parameters,<br />

“rules” because they work.<br />

Some are designed to make<br />

sure the franchisee is able<br />

to stay within the legislative<br />

playing field. Whilst others are<br />

definitely to ensure compliance<br />

within a franchise system.<br />

To quote one <strong>of</strong> my former<br />

franchisor managing directors:<br />

“The franchise agreement and<br />

parameters are designed to<br />

keep the good things in and the<br />

bad things out.”<br />

There is one statement that<br />

does separate the entrepreneur<br />

from the franchisee entrepreneur<br />

– I want to create or develop<br />

my own “thing”.<br />

These super brave people<br />

are politely called pioneers. I<br />

believe there is <strong>of</strong>ten a confusion<br />

between pioneering and<br />

entrepreneurship and while<br />

they are not mutually exclusive,<br />

they are not the same.<br />

You do not need to invent,<br />

or revolutionise anything to<br />

be an entrepreneur. If you<br />

do want to be a pioneer, then<br />

franchising is probably not for<br />

you and we wish you the best<br />

<strong>of</strong> luck. But remember that<br />

statistically, the franchisee entrepreneur<br />

is more likely to be<br />

successful.<br />

New ways <strong>of</strong> working for Kiwi<br />

SMEs reveal potential security gaps<br />

ADVERTORIAL<br />

New research by 2degrees has revealed New Zealand’s small business owners<br />

are taking a new approach to work. This comes as Kiwis navigate their way<br />

through an unpredictable year, which has seen the country move in and out <strong>of</strong><br />

lockdown in the fight against Covid-19.<br />

The 2degrees Shaping <strong>Business</strong><br />

Study, which surveyed<br />

more than 1,000 small and<br />

medium-sized business owners and<br />

decision-makers, found that more<br />

than half (58%) have changed their<br />

approach to work since the Covid-<br />

19 pandemic reached our shores.<br />

The lockdown earlier in the year<br />

thrust many small businesses into<br />

an unknown territory, however the<br />

new research shows that, second<br />

time round, businesses were much<br />

better prepared for the switch to<br />

Levels 3 and 2.<br />

This year has seen one <strong>of</strong> the<br />

biggest changes to the way we work<br />

since the Industrial Revolution.<br />

With this, has come a significant<br />

shift to a more mobile workforce.<br />

Andrew Fairgray, Chief <strong>Business</strong><br />

Officer at 2degrees, says business<br />

owners and decision-makers<br />

have done a great job in establishing<br />

what works best for them<br />

and their people, while grappling<br />

with the challenges <strong>of</strong> the current<br />

circumstances.<br />

“For some, working from home<br />

permanently is a better option,<br />

others are <strong>of</strong>fering their employees<br />

more mobility around working<br />

hours or rotational days to work<br />

from home – either way it gives<br />

Kiwis reassurance and greater confidence<br />

in knowing they can work<br />

from home when necessary.<br />

“Part <strong>of</strong> that comes down to having<br />

the right tools to do so, like reliable,<br />

secure mobile and broadband<br />

connections.” says Fairgray.<br />

With an estimated over 60% <strong>of</strong><br />

employees in New Zealand now<br />

working from home on a regular<br />

basis, Kiwi businesses need to be<br />

thinking about security more than<br />

ever before.<br />

According to the study, under<br />

half <strong>of</strong> SME decision makers currently<br />

did not have any current data<br />

security resource. Sole traders were<br />

significantly more likely to state<br />

that they currently have no security<br />

resource in place (46%) compared<br />

to employing businesses (27%).<br />

While there are a variety <strong>of</strong> different<br />

risks, home broadband security<br />

is believed to be the biggest<br />

online risk for nearly one quarter <strong>of</strong><br />

SME decision makers. Nearly onethird<br />

stated they didn’t know what<br />

the biggest online risk was to their<br />

business, highlighting the need for<br />

businesses to really take a good<br />

look at security options when it<br />

comes to their employees working<br />

from home.<br />

So, what should business owners<br />

do? Start simply: identify your<br />

risks and research your options.<br />

Some businesses will be more at<br />

risk than others – those dealing<br />

with sensitive information every<br />

day such as financial services for<br />

example.<br />

A great place to start is with<br />

2degrees Work from Home Fibre –<br />

a secure, Fibre connection to keep<br />

businesses humming seamlessly<br />

when their employees are working<br />

at home. This new product delivers<br />

business grade broadband through a<br />

dedicated Fibre connection to employees’<br />

homes. Work from Home<br />

Fibre does what it says on the tin<br />

– it’s fast and <strong>of</strong>fers the capacity<br />

businesses need.<br />

Plus, web-filtering is part <strong>of</strong> the<br />

package. So you have the option to<br />

switch on the web-filtering security<br />

add-on – a service that enables you<br />

to block sites known for phishing,<br />

malware and other security threats<br />

to work laptops or computers – for<br />

free, and you can also choose to<br />

block streaming sites.<br />

Upload speeds are up to 5X faster<br />

compared to their home broadband<br />

Standard Fibre 100 Plan – super<br />

important for things like video conferencing.<br />

The 2degrees Shaping<br />

<strong>Business</strong> Study showed that 40%<br />

<strong>of</strong> respondents found video conferencing<br />

the most important tool to<br />

stay connected to their team during<br />

lockdown, so making sure it works<br />

well is key when staff are working<br />

at home.<br />

So, give the guys at 2degrees a<br />

call or visit 2degrees.nz/business to<br />

start down the right path to ensuring<br />

your critical business information<br />

is secure even when staff are<br />

working from home.


20 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong><br />

CONNECTING<br />

BUYERS AND<br />

SELLERS OF<br />

QUALITY<br />

BUSINESSES<br />

First on the scene<br />

Photos from the Rotorua Women in <strong>Business</strong> networking meet-up at<br />

Volcanic Hills Wine Tasting Rooms.<br />

Photos/ Nikeey Silwal, Rotorua Chamber <strong>of</strong> Commerce<br />

When is the right time to sell<br />

your business? Right now.<br />

At TABAK, we promise to guide<br />

you through the sales process<br />

with focus, integrity and<br />

complete confidentiality.<br />

1<br />

1 Stacey Blackie, Jo Holmes and Lou Baddiley (Rotorua Economic Development), Karen Tasker, Quest Rotorua, Michelle<br />

Cutelli, Michelle Cutelli Photography, and Eloise Roxburgh, Rotorua Canopy Tours. 4 Tiana Hodge, Martyn Evans Art, with<br />

Debbie Gow and Julie Bell, DANA.<br />

2<br />

FOCUS • INTEGRITY<br />

CONFIDENTIALITY<br />

3<br />

3 Lucy Vala-Blackmore, Nicola Brazendale, Victoria Thompson, Sophie Law and, Melissa Chester, Holland Beckett Law.<br />

2 Nadia Christiansen, McDowells Real Estate, Abbie Proudley, BNZ, Lisa Pauling, Rotorua Hospice, Robyn Forbes and Sara<br />

Kenny, Property Inspect and Geraldine Jaques, Integrated Systems Design.<br />

4<br />

WHY TABAK<br />

INDUSTRY EXPERIENCE<br />

REALISTIC APPRAISALS<br />

TEAM APPROACH<br />

5<br />

5 Kim Hodge, Abbie Proudley, Theresa Mason, Jenny O’Connell and Victoria Richards, BNZ. 6 Larissa Park, Volcanic Hills<br />

Winery and Natalie Bridges, Blink PR.<br />

Photos from the<br />

launch <strong>of</strong> Dwayne<br />

Morgan’s new<br />

<strong>of</strong>fices for Special<br />

Programs Security.<br />

Photos/ Pete Luxford<br />

Photography<br />

1<br />

6<br />

PRE-QUALIFIED BUYERS<br />

147 Cameron Road<br />

p. 07 578 6329<br />

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

w. tabak.co.nz<br />

P5177Y<br />

2<br />

3 4<br />

1 Mark Irving, Priority One, Rebekah Webby, Webby and Associates Law, Rachael Adams, Adams Law and Renee Harley,<br />

Webby and Associates Law. 2 Dwayne Morgan, Special Programs Security, Tauranga. 3 Lynn and Brendon Bradley, <strong>Bay</strong>leys<br />

Tauranga, Mark Irving (Priority One), David Lathan (Lathan and Associates Accountants). 4 Mayor Tenby Powell.


<strong>October</strong>/<strong>November</strong> <strong>2020</strong> BAY OF PLENTY BUSINESS NEWS 21<br />

Positives around a flexible<br />

and contingent workforce<br />

A large portion <strong>of</strong> our workforce is working from home and the business environment this<br />

year has lent itself towards businesses being required to have a more flexible approach to<br />

employment than ever before.<br />

Work-life balance and<br />

flexibility have definitely<br />

been key tools<br />

within the employment realm<br />

over the past couple <strong>of</strong> years.<br />

However, in <strong>2020</strong> it’s become<br />

a more essential tool for<br />

business survival.<br />

The reality is that this year<br />

and beyond, your workforce<br />

needs to be flexible and reactive<br />

for optimal pr<strong>of</strong>its and<br />

success to be achieved in the<br />

competitive and ever-changing<br />

marketplace we are experiencing<br />

within New Zealand now.<br />

The most surprising fact<br />

to most people might be just<br />

how widely used temporary –<br />

or contingent – employment<br />

is utilised across such a wide<br />

range <strong>of</strong> industries and fields,<br />

from medical to creative services,<br />

project management,<br />

human resources, technical and<br />

trade-related roles.<br />

There really are no industries<br />

with a barrier to temporary<br />

employment.<br />

There is this misconception<br />

that temp employees tend to<br />

be such typical employees as<br />

receptionists or administrators.<br />

However, a temp can be<br />

as qualified and skilled as<br />

you require – they come from<br />

every industry and pr<strong>of</strong>ession<br />

– skilled, degree qualified,<br />

registered.<br />

Many are highly qualified<br />

and skilled, adding value<br />

through their ability to slip into<br />

a new environment, team and<br />

culture with ease.<br />

Candidates choose to engage<br />

in temp work for all<br />

kinds <strong>of</strong> reasons, whether it is<br />

because they have just moved<br />

to the region, or enjoy the freedom<br />

<strong>of</strong> knowing they are not<br />

tied down to a permanent role.<br />

Many enjoy the variety and<br />

flexibility or for pure lifestyle<br />

reasons.<br />

Temporary workers can<br />

<strong>of</strong>ten be the best employees<br />

because they get to have a<br />

HUMAN RESOURCES<br />

> BY KELLIE HAMLETT<br />

Kellie Hamlett is Director and Recruitment & HR Specialist, Talent<br />

ID Recruitment Ltd. She can be contacted on kellie@talentid.co.nz<br />

large exposure to many different<br />

industries and workplaces,<br />

systems, and processes. They<br />

also come with the flexibility<br />

to work around your individual<br />

work-load requirements, and<br />

can be on-call on an ‘as and<br />

when’ basis.<br />

Temp employees are being<br />

used by both growing companies<br />

and more established<br />

businesses to jump over the<br />

skills gap and address needs<br />

head on. And at present here in<br />

New Zealand, including in the<br />

regions, we have quite a pool<br />

<strong>of</strong> talent available.<br />

Having a temporary workforce<br />

can be hugely beneficial<br />

in terms <strong>of</strong> keeping on top<br />

<strong>of</strong> market fluctuations for a<br />

business.<br />

Contingent workers, in a<br />

sense, are “on-demand” talent,<br />

the “Netflix” <strong>of</strong> the employment<br />

world if you like.<br />

They are not full-time employees<br />

<strong>of</strong> a company and once<br />

their project is finished, the<br />

contract has ended.<br />

To label them mere temps,<br />

however, discounts the full<br />

scope, hi-tech nature and complexity<br />

<strong>of</strong> today’s contingent or<br />

“on-demand” workforce.<br />

Utilising a contingent workforce<br />

within the relatively volatile<br />

business environment we<br />

are now experiencing under<br />

Covid-19 is a smart, lean way<br />

to run your business, whilst<br />

ensuring that the needs <strong>of</strong> your<br />

customers are met, a business<br />

as usual approach is the focus,<br />

and employment overheads are<br />

contained or reduced.<br />

Flexible future for Shared Workspaces<br />

The trials and tribulations <strong>of</strong> the past year have shown many<br />

businesses the benefits <strong>of</strong> remote working. But remote working is<br />

not going to completely replace traditional work in an <strong>of</strong>fice building,<br />

and many are starting to recognise the benefits that having a flexible<br />

workspace can have in boosting productivity, said Tony Snow,<br />

founder and director at Shared Workspaces.<br />

By DAVID PORTER<br />

Better known as the head<br />

<strong>of</strong> IT company Stratus<br />

Blue and BOP <strong>Business</strong><br />

<strong>News</strong>’ Tech Talk columnist,<br />

Snow took over the lease late<br />

last year <strong>of</strong> the Smart <strong>Business</strong><br />

Centre in Chapel Street,<br />

formerly managed by anchor<br />

tenant the Tauranga Chamber<br />

<strong>of</strong> Commerce.<br />

“Shared Workspaces aim to<br />

have multiple locations with<br />

the Chapel Street location<br />

being renamed to Commerce<br />

House shortly, and the Beach<br />

House in Parton Road, Papamoa<br />

becoming available in<br />

<strong>November</strong> 2021,” said Snow,<br />

adding that other locations are<br />

being worked on.<br />

Flexible working is a way<br />

<strong>of</strong> working that provides a productive<br />

and collaborative environment<br />

that has been created<br />

without traditional corporate<br />

constraints on what is thought<br />

to be an “<strong>of</strong>fice” environment,<br />

he said, <strong>of</strong>fering flexible memberships<br />

to suit a wide range <strong>of</strong><br />

needs.<br />

Angeline Williams, member<br />

and facility manager at<br />

Shared Workspaces, said:<br />

“The beauty <strong>of</strong> flexible working<br />

is that you can have your<br />

traditional workspaces such as<br />

in-<strong>of</strong>fice building or a home<br />

<strong>of</strong>fice, but also have a secondary<br />

space where you can<br />

hire equipment, ideas, and<br />

knowledge.”<br />

Some studies have shown<br />

that a mix <strong>of</strong> working environments<br />

can lead to more<br />

productive use <strong>of</strong> time. Studies<br />

from the US indicated remote<br />

working could lead to a 13<br />

per cent increase. On average,<br />

people that work 40 hours per<br />

week are only truly productive<br />

The beauty <strong>of</strong> flexible working is that you<br />

can have your traditional workspaces<br />

such as in-<strong>of</strong>fice building or a home<br />

<strong>of</strong>fice, but also have a secondary space<br />

where you can hire equipment, ideas,<br />

and knowledge.” – Angeline Williams<br />

for 23 hours (three days) in an<br />

<strong>of</strong>fice environment and just<br />

above 15 hours (two days) in a<br />

home environment, according<br />

to one study.<br />

Maximising productivity<br />

Flexible working aims to<br />

maximise productivity, said<br />

Williams. Utilising a mix <strong>of</strong><br />

both remote working and <strong>of</strong>fice-based<br />

work, or remote<br />

working in an <strong>of</strong>fice, can help<br />

people get more out <strong>of</strong> your<br />

working week.<br />

Changing up your routine<br />

allows for new ideas and<br />

fresh ways <strong>of</strong> thinking that you<br />

might not have considered before,<br />

she said.<br />

Matt Cowley, chief executive<br />

<strong>of</strong> the Tauranga Chamber<br />

<strong>of</strong> Commerce, said the board<br />

made a decision at the time<br />

he was hired to focus all <strong>of</strong><br />

its resources on supporting<br />

members rather than managing<br />

the Smart <strong>Business</strong> Centre<br />

tenancy.<br />

“The board are saying it<br />

is probably the chamber’s<br />

best decision, especially with<br />

Covid-19,” said Cowell. “It’s<br />

enabled me to spend 100 percent<br />

<strong>of</strong> my time on our business<br />

and operations rather than<br />

dealing with tenancies and rent<br />

negotiations.”<br />

Snow said that coming out<br />

Angeline Williams: flexible<br />

memberships to suit a wide<br />

range <strong>of</strong> needs. Photo/Supplied.<br />

<strong>of</strong> lockdown, many people<br />

were still working from home,<br />

and flexible working was a<br />

great way to ease back into<br />

an <strong>of</strong>fice environment and get<br />

back to meeting people.<br />

“With flexible working,<br />

you can work close to home,<br />

not just from home,” added<br />

Williams.<br />

Having somewhere that<br />

understands the value <strong>of</strong> having<br />

a space <strong>of</strong> diverse thinkers<br />

and builds a community <strong>of</strong> individuals<br />

and businesses that<br />

work in different industries,<br />

that have diverse backgrounds<br />

and want to share knowledge,<br />

experience and ideas can help<br />

business and people flourish<br />

and be productive.<br />

“We’re are open to anyone<br />

working on anything, and<br />

we’re darn proud <strong>of</strong> it,” said<br />

Snow. “We count on our diversity<br />

to give members unique<br />

opportunities to meet people<br />

who they can collaborate with.<br />

People from various walks <strong>of</strong><br />

life can collide in the most<br />

amazing ways every single<br />

day.”<br />

The business <strong>of</strong>fers flexible<br />

terms and tailored packages to<br />

meet all needs. That includes<br />

people expanding their business,<br />

needing a project space,<br />

or meeting or training room, or<br />

desks or <strong>of</strong>fices to rent.<br />

Shared Workspaces is also<br />

giving away a three month<br />

free meeting room hire to the<br />

best suggestions for naming<br />

their new meeting rooms, and<br />

also will be giving away one<br />

week <strong>of</strong> desk and work space<br />

membership.<br />

See www.shared.nz for<br />

details.


22 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong><br />

Honesty the best<br />

policy for staff<br />

communications<br />

The year ahead will be one <strong>of</strong> the most uncertain for New Zealand<br />

businesses. The world continues to grapple with the impacts <strong>of</strong><br />

Covid-19 and many directors will be wondering how their businesses<br />

can survive the economic slowdown and the uncertainty that<br />

changes in Government Covid-19 Alert Level restrictions can bring.<br />

While some <strong>of</strong> us are<br />

getting by okay, others<br />

are barely holding<br />

on. Many workers fear<br />

losing their jobs and anxiety<br />

levels will be high in many<br />

workplaces.<br />

Mortgage payments will be<br />

top <strong>of</strong> mind for many <strong>of</strong> them,<br />

as they question how they will<br />

support their families if their<br />

job disappears.<br />

At a time like this, it is more<br />

important than ever for managers<br />

to engage effectively with<br />

staff and contractors.<br />

Do it right and you can keep<br />

motivation levels high and productivity<br />

strong. Get it wrong<br />

and you can expect a staff apathy<br />

and a growing number<br />

jumping ship.<br />

Keep the information<br />

flowing<br />

When times are tough some<br />

business owners and managers<br />

go into their shell. It’s no<br />

fun sharing a difficult message<br />

with staff and some people<br />

tend to react by saying little, or<br />

nothing at all.<br />

This is a big mistake. Just<br />

because you’re silent doesn’t<br />

mean staff will be, and more<br />

<strong>of</strong>ten than not speculation and<br />

rumour are worse than the<br />

truth.<br />

Informing staff shows you<br />

care and helps to build trust. It<br />

allows you to share the steps<br />

you are taking to overcome<br />

the challenges the business<br />

faces and demonstrates to staff<br />

that there won’t be any surprises.<br />

Things may not turn<br />

out perfectly, but you’re all in<br />

it together and they will know<br />

where they stand throughout<br />

the process.<br />

Keeping staff informed<br />

and engaged is also critical<br />

for team morale and culture.<br />

If everyone knows where you<br />

are planning to take the business,<br />

and what the strategy is<br />

to get through the hard times,<br />

they are more likely to work together<br />

and put their energy into<br />

the right areas.<br />

Much more than a courtesy,<br />

good communication with<br />

staff can provide productivity<br />

There are few things more damaging to<br />

trust than a staff member hearing about<br />

a major change in their own business<br />

from a client who has been informed<br />

first, or even worse – reading it in the<br />

local newspaper.<br />

and retention bonuses for your<br />

business.<br />

Tell staff first<br />

THE LAST WORD<br />

> BY JAMES HEFFIELD<br />

Director <strong>of</strong> <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> marketing and PR consultancy Last<br />

Word. To find out more visit lastwordmedia.co.nz or email<br />

james@lastwordmedia.co.nz.<br />

Sometimes we are so eager to<br />

please our clients or to tell our<br />

story in the media that we forget<br />

to keep staff in the loop.<br />

This can be true for good<br />

news – such as announcing the<br />

launch <strong>of</strong> a new innovation –<br />

or bad, such as the closure <strong>of</strong> a<br />

regional <strong>of</strong>fice.<br />

It’s good practice to tell<br />

staff first, before announcing<br />

anything more widely.<br />

This can take the form <strong>of</strong><br />

a briefing their managers, or<br />

even just a heads-up email before<br />

a communication to people<br />

outside your organisation<br />

is sent out.<br />

After all, there are few<br />

things more damaging to trust<br />

than a staff member hearing<br />

about a major change in their<br />

own business from a client<br />

who has been informed first,<br />

or even worse – reading it in<br />

the local newspaper.<br />

Be up front<br />

Over-spinning a message is<br />

another common mistake<br />

some businesses make when<br />

communicating neutral or bad<br />

news with staff.<br />

This may involve overemphasising<br />

the positive while<br />

avoiding any mention <strong>of</strong> the<br />

elephant in the room, or overusing<br />

buzzwords and business<br />

jargon such as “streamlining<br />

the business” or “right-sizing<br />

our teams” to communicate a<br />

restructure or impending job<br />

losses.<br />

It’s absolutely true that you<br />

should think carefully about<br />

what you communicate, the<br />

tone <strong>of</strong> your message, and how<br />

it’s delivered. But give your<br />

staff some credit and realise<br />

many <strong>of</strong> them will see through<br />

the spin.<br />

Honesty and up-front communication,<br />

with compassion,<br />

will be much better received<br />

than a message that beats<br />

around the bush or avoids an<br />

issue entirely.<br />

At <strong>Bay</strong>leys, we believe relationships are what businesses are built on and how they<br />

succeed. We understand that to maximise the return on your property you need:<br />

Pr<strong>of</strong>essional property management<br />

A business partner that understands your views and goals<br />

Contact the <strong>Bay</strong>leys Commercial Property Management team today.<br />

<strong>Bay</strong>leys Commercial<br />

Property Management<br />

07 579 0609<br />

jan.cooney@bayleys.co.nz<br />

SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008<br />

ALTOGETHER BETTER<br />

Residential / Commercial / Rural / Property Services


<strong>October</strong>/<strong>November</strong> <strong>2020</strong> BAY OF PLENTY BUSINESS NEWS 23<br />

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24 BAY OF PLENTY BUSINESS NEWS <strong>October</strong>/<strong>November</strong> <strong>2020</strong>

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