January 2021 - Bay of Plenty Business News

bopbusinesspublications

JANUARY 2021 VOLUME 5: ISSUE 1

WWW.BOPBUSINESSNEWS.CO.NZ

RECOVERY STRONGER

PAPAMOA

JUNCTION

UNDERWAY

Pages 10-15

THAN EXPECTED

but uncertainties remain

Bay businesses are feeling rather more optimistic

than many expected when Covid-19 lockdowns

roiled the economy earlier in the year. Business

leaders point to promising signs of improvement in

2021, but warn that there are a number of worrying

factors that could still impact an economic revival.

(See pages 5, 6 & 7)

CONSTRUCTION

House of the Year Awards

announced.

P16

INTELLECTUAL PROPERTY

Why trade mark registration

is crucial.

P18

FORESTRY

Concern over

government’s cap on trees.

P19

TAURANGA'S PREMIER VENUE - A COMPLETE PACKAGE

ENTERTAINMENT | EXHIBITIONS | CONFERENCES | MEETINGS

• Flexible venues for 10 – 4,400 delegates

• In-house catering and audio visual services

• Professional Conference Organiser (PCO)

• Complete marketing/promotional services

0800 BAYPARK (229 727) www.trustpowerbaypark.co.nz


2 BAY OF PLENTY BUSINESS NEWS January 2021

Your

business’

network is

important

So we invested

$1 billion into

ours

Sound fair?

Call Shawn for a chat on 022 200 0141

FOR KIWI BUSINESS


January 2021 BAY OF PLENTY BUSINESS NEWS 3

New tourist options driven by domestic

visitors

Rotorua Adventure Park Velocity Valley has

decided to go ahead and launch its latest

adrenaline-pumping ride in December, said

sales and marketing manager Debbie Guptill.

By DAVID PORTER

Given the challenges

of 2020, introducing

a new ride was not

something Velocity Valley had

expected to do this year, said

Guptill.

However, the support

Velocity Valley had received

from domestic travellers meant

the time was right to introduce

the new ride before summer,

she said.

“Thankfully, with 70 percent

of our normal patronage

being domestic visitors, we

have managed to buck the

trend and mostly keep at that

same level of customers following

the lockdowns,” said

Guptill.

Velocity Valley (formerly

Agroventures Adventure Park)

offers a number of adventure

rides suitable for all ages and

comfort levels.

Launched in December

the new ride, V-Force reverse

bungy, was set to push visitors’

limits, she said.

“The V-Force will see people

launched 45 m straight into

the air attached to bungy cords

at speeds of up to 80km per

The V-Force

will see people

launched 45 m

straight into the

air attached to

bungy cords at

speeds of up to

80km per hour.”

– Debbie Guptill

hour,” said Guptill.

“V-Force offers our customers

even more selection

when it comes to choosing

rides at the park – whether

they’re after something mild

or wild on terra firma or above

it,” she said.

In addition to the V-Force,

the park’s Freefall Xtreme

has also been upgraded with

a giant 4.8m high transparent

indoor cylinder, providing

flyers with both an indoor and

outdoor flying experience.

Pushing visitors’ limits at Velocity Valley. Photo/Adrian Hodge Photography.

Powered by a 1,000 horsepower,

Detroit V16, twin turbo-charged

engine, Freefall

Xtreme provides the thrill

of skydiving but without the

parachute or jumping out of a

perfectly good plane.

Debbie says the latest ride

and the upgrade are perfectly

timed for their summer holiday

season, which they are expecting

will be busy.

“It’s been amazing to see

Kiwis enjoying their own backyard,

and we’re thankful for

the support we have received

– we hope our customers will

love the new V-Force.”

Velocity Valley is one of

many Bay of Plenty operators

that we plan to cover in the

coming year who have segued

into providing new products

for the domestic market.

Is now a

good time

to sell? Yes!

The demand for businesses to buy is

still strong.

What the last couple of months has

told us is that a few months of bad

trading is unlikely to affect your sale

price.

LINK offer no-obligation business

appraisals to understand how your

business would present to the market

and what may be required to prepare

your business for sale.

If selling your business is on the radar

now or in the coming year, call us

today for a condential chat.

Essential Industry $2,850,000

Bay of Plenty

· Well-established, construction-related

· Large market share, excellent prots

· Stable team, qualied managers

· Generous handover period

SOLD

· 17 expressions of interest

linkbusiness.co.nz/BOP00167

Mike Fraser 021 932 633

mike.fraser@linkbusiness.co.nz

Highly Protable Specialist Arborist $850,000

Bay of Plenty

· Large database of customers

· Work from repeat commercial customers

· Well established niche in the market

· Experienced, reliable and qualied staff

·

· 46 expressions of interest

SOLD

Shade Protection Manufacturer $430,000

Bay of Plenty

· Excellent prots, low risk

· Easy to learn, stable experienced staff

· Great spread of clients. Economical lease

· Genuine reason for sale, growth potential

SOLD

linkbusiness.co.nz/BPW010421

Nols Bertram 027 238 1450

nols.bertram@linkbusiness.co.nz

· 27 expressions of interest

linkbusiness.co.nz/BOP00163

Roger Brockelsby 027 919 5478

roger.brockelsby@linkbusiness.co.nz

Successful Dance Business $240,000

Bay of Plenty

· You don’t need to be a dance teacher

· Wonderful dance teachers employed

· Well-oiled systems and procedures

· Extremely good reputation. Growth potential.

Retail Service Business

$1,190,000

Bay of Plenty

· Experienced in retail, grocery, marketing?

· Well trained staff - run under management

· Fantastic location, continual growth

· Sales over $1,240,000 pa. for 2020

SOLD

Renowned Protable Brand $360,000

SOLD

· 76 expressions of interest

linkbusiness.co.nz/BOP00210

Theresa Eagle 021 289 0949

theresa.eagle@linkbusiness.co.nz

Online Importer Distributor $452,500

SOLD

Relocatable

· Protable, niche essential service

· No major competitors

· Receives, stores & dispatches products

· Owner working 25-30hrs per week

· 128 expressions of interest

linkbusiness.co.nz/BOP00197

Neil Cammell 027 2133 100

neil.cammell@linkbusiness.co.nz

Tauranga

· Nationwide franchise operating 30yrs+

· Highly protable steel building specialists

· Buildings constructed by contractors, leaving

owner to manage & promote

· 37 expressions of interest

linkbusiness.co.nz/BOP00106

Steve Catley 021 341 117

steve.catley@linkbusiness.co.nz

Automotive Paint Business $110,000

Tauranga

· Established 24+years, owner ready to retire

· Private, dealers & insurance customers

· Qualied staff

· Spacious premises in a busy commercial area

All LINK NZ ofces are licensed REAA08

SOLD

· 9 expressions of interest

linkbusiness.co.nz/BOP00212

Lisa Lloyd 027 685 4556

lisa.lloyd@linkbusiness.co.nz

SOLD

· 35 expressions of interest

linkbusiness.co.nz/BPW00118

Grant Jacobson 027 454 0432

grant.jacobson@linkbusiness.co.nz

26 Fourth Ave

Tauranga

0800 225 999

LINKBUSINESS.CO.NZ


4 BAY OF PLENTY BUSINESS NEWS January 2021

From the editor

www.bopbusinessnews.co.nz

CONTACT INFORMATION

PUBLISHER

Alan Neben

Ph: (07) 838 1333 Mob: 021 733 536

Email: alan@bopbusinessnews.co.nz

EDITOR

David Porter

Mob: 021 884 858

Email: david@bopbusinessnews.co.nz

PRODUCTION

Copy/Proofs/Graphic Design

Times Media – Clare McGillivray

Ph: (09) 271 8067

Email: clare@times.co.nz

ADVERTISING INQUIRIES

BUSINESS DIRECTOR

Pete Wales

Mob: 022 495 9248

Email: pete@bopbusinessnews.co.nz

ELECTRONIC FORWARDING

EDITORIAL:

News releases/Photos/Letters:

david@bopbusinessnews.co.nz

GENERAL INQUIRIES:

info@bopbusinessnews.co.nz

Bay of Plenty Business News has a circulation

of 8000, distributed throughout Bay of Plenty

between Waihi and Opotiki including Rotorua

and Taupo, and to a subscription base.

www.bopbusinessnews.co.nz

Bay of Plenty Business Publications

309/424 Maunganui Road,

Mount Maunganui, 3116

Bay of Plenty Business Publications specialises

in business publishing, advertising, design and

print media services.

I have been obsessed by the surreal saga of Donald Trump’s ongoing

meltdown as he attempts to shut out the reality that he will soon be

prised from the White House. In doing so, he will lose his presidential

immunity from some – but not all – potential threats for criminal

prosecution.

As we went to print to

meet our pre-Christmas

production deadlines –

and despite the US Electoral

College having firmly come

down in favour of Joe Biden

as the president-elect – Trump

was continuing to rant into

the early hours on Twitter and

to push unfounded claims of

fraud.

That was despite having

lost some 50 law suits alleging

electoral irregularities, with

even Republican judges throwing

them out of court. Admittedly,

Trump’s legal team has

been most notable for its bumbling

incompetence.

However, despite Biden’s

convincing win, Trump nonetheless

managed to persuade

more than 70 million voters

to support him, suggesting

that the divisions in US society

ran even more deeply than

had been suspected. His recent

actions – including the failed

appeal by his supporters for

the Supreme Court to overturn

the election results – have been

essentially an attempted coup,

and have exposed the fascistic

tendencies of Trump and many

of his supporters.

As astutely observed

decades ago by the historian

Eric Hobsbawm, in his

The Age of Extremes (1994),

reflecting on the rise of fascism

in the 1930s: “Fascism

could not formally believe in

modernity and progress, but

it had no difficulty in combining

a lunatic set of beliefs with

technological modernity in

practical matters… It also provided

the proof that men can,

without difficulty, combine

crackbrained beliefs about the

world with a confident mastery

of contemporary high

technology.”

And of course, since then,

the rise of the internet and

the social media giants has

only increased the ability of

high technology to proliferate

the dissemination of

crackbrained beliefs – from

QAnon’s nonsensical ravings

that Satan-worshipping paedophiles

are running a global

child sex-trafficking ring, to

David Icke’s bonkers theory

that “higher beings” are on

Earth masking their true reptilian

form in order to enslave

humans.

Here in the Bay, we have

had our own – rather less conspiratorial,

but still troubling

– political meltdown. The

government has announced

it will bring in, at the least a

Crown Manager, and possibly

appoint Commissioners to

help the elected Tauranga City

Council. The aim is to get the

council back on track following

its recent public displays of

rancour and inability to work

together. It was unclear when

we went to print, which option

would be taken.

The TCC has already begun

the by-election process to

replace both a resigned councillor

and ex-mayor Tenby

Powell. Our understanding is

that timing has been a problem:

a final decision on Commissioner/Manager

options

will have to be approved by

cabinet, which was not due

to resume until well after

Christmas.

Although as we went to

print, at least two people had

put their hands up to contest

the by-elections, there seems

to be little incentive for them

to waste their money in doing

so. If commissioners are

appointed, the current councillors

are all essentially out of

a job – although they have the

option to stay on in an unpaid

basis.

In mid-December, the

councillors issued their public

reply to Minister of Local

Government Nanaia Mahuta.

The letter – a response to the

minister’s request that they

come up with a reason for her

not to bring in commissioners

– was essentially a plea for her

to instead appoint a crown

manager and observer. Which,

of course, could also be seen as

their acceptance of the reality

of intervention, coupled with a

hopeful plea to keep them on

the payroll.

“We would like the opportunity

to improve governance

in a sustainable way, one that

Tauranga is a fast-growing city and

investments in core infrastructure and

core services need to be made to sustain

the quality of life that our people should

expect and deserve. We can’t expect to

‘get more for nothing’.” – Simon Clarke,

Priority One

preserves civic and democratic

participation,” the councillors

said, noting their position was

supported by all elected councillors

except for John Robson.

In turn, Robson said he would

not comment on his own position

until after the minister had

announced her decision.

The issue of democratic

David Porter

participation can be set to one

side for a moment, given voter

turnout was around 40 percent

in the last election. But in

other similar cases, the commissioners

selected seem to

have been of high calibre, and

to have taken their role very

seriously, particularly with

regard to engagement with the

community.

There would seem to be a

sound argument for bringing

in the commissioners, having

them fulfil their mandate, and

produce a clear set of expectations

for the next elected

council.

New Priority One chairman

Simon Clarke, a governance

expert, told Bay of Plenty Business

News that the economic

development agency would be

providing as much support to

the Tauranga City Council as it

could, as it goes through whatever

intervention is required.

“Priority One’s view is that

an intervention is needed to

facilitate better decision-making

and to grapple and deal

with the infrastructure deficit

challenges that TCC faces,” he

said.

Priority One was expecting

a commissioner(s) rather than

a crown manager would be

appointed, but would have to

wait and see, he said.

“Continuing to do nothing

[in order to] ‘keep rates down’

is not an option,” Clarke said.

“Tauranga is a fast- growing

city and investments in

core infrastructure and core

services need to be made to

sustain the quality of life that

our people should expect and

deserve. We can’t expect to

‘get more for nothing.’ My

view is that I think rates will

need to go up and alternative

funding arrangements will

need to be explored.

“However, it will be

important that TCC is transparent

so that we as ratepayers

understand where the money is

going and what improved outcomes

we will be getting.”

From ballet lessons

to university funds,

everyone’s investment story is

different. We can help you with yours.

0800 272 442 / craigsip.com

Craigs Investment Partners Limited is a NZX Participant Firm. Adviser Disclosure Statements are available on request and free of charge. Please visit craigsip.com


COVER STORY

January 2021 BAY OF PLENTY BUSINESS NEWS 5

RECOVERY STRONGER

THAN EXPECTED

BUT UNCERTAINTIES REMAIN

By DAVID PORTER

Given the unprecedented

year the Bay business

community has been

through and the problems that

are still affecting us globally as

a result of the Covid-19 pandemic,

it is too early to make

a call on the economic outlook

for 2021.

Despite New Zealand’s

strong exports, and generally

improving business confidence,

issues such as shipping

logistics and construction log

jams may well prove problematic

in the next few months.

But it does seem that the

country has managed to come

out of the first year of Covid-

19 and the initial lockdowns

rather better than might have

been the case.

Nigel Tutt, chief executive

of Priority One, commenting

just before the Western Bay

economic development agency’s

annual general meeting,

noted that the economy had

bounced back well from the

lockdowns, with indicators

pointing towards at this stage

towards a sharp “V” shaped

recession.

“Unemployment has moved

up, but so far not to the levels

that would cause distress in the

community,” he said.

“We’d expect it may

drift up a little in early 2021

as the disruption to some

sectors causes a shift in

employment.”

But the outlook for 2021

remained uncertain, said Tutt.

“While things have been

going well in the last few

months, we should be wary of

a depressed global economy,

supply chain disruption and

the prospect – albeit diminishing

of further lockdowns

pre-vaccine.”

While things have been

going well in the last few

months, we should be

wary of a depressed global

economy, supply chain

disruption and the prospect

– albeit diminishing – of

further lockdowns prevaccine.”

– Nigel Tutt

Cautious optimism

Simon Clarke, who took over

the chairmanship of Priority

One at the AGM from Brett

Hewlett – who resigned the

position after five years – said

he remained cautiously optimistic

that the Western Bay

economy would continue its

strong bounce back in 2021.

“However, pre-Covid-19

issues around housing unaffordability,

environmental

degradation, infrastructure

deficiencies and increasing

social inequality in our community,

have not gone away,”

said Clarke.

“If anything, those issues

have been magnified and laid

bare for all to see throughout

2020.

In 2021, we need to focus

on accelerating our recovery

by ensuring that we continue to

grow intelligently and sustainably,

and we need to focus on

improving outcomes socially,

environment and culturally.

Not just economically – we

want quality growth.”

An eventful year

In their general comments on

the year in the AGM report,

Tutt and outgoing chair Hewlett,

noted that 2019/20 year had

been one of the more eventful

in Priority One’s history.

Turn to page 6


6 BAY OF PLENTY BUSINESS NEWS January 2021

COVER STORY

New chair for

Priority One

The December AGM saw chairman

Brett Hewlett, who has served for

five years, resign and his role taken

by former deputy chair Simon Clarke.

Nigel Tutt described Hewlett as a

man of great mana. “His great business

acumen is matched by a desire to provide

better outcomes for this community,

and to ensure sustainability well into the

future,” he said.

Clarke – who has served for eight

years with the Priority One board

– spent several years in senior positions

with Trustpower before recently

resigning to set up Matua Governance.

He told Bay of Plenty Business

News he was excited about taking

over the mantle from Hewlett, who

had done a great job.

“I believe that relative to some

other regions, Tauranga Moana

is extremely well-placed to flourish

and prosper in a post-Covid-19

world,” said Clarke.

2021 is ‘our moment’ to accelerate

our efforts,” he said. “I’m looking forward

to continuing to help the P1 team

support and develop our important

relationships with central government,

the BOP Regional

Council, the Tauranga

City and the

Simon Clarke

Western Bay councils and our broad

business membership. I’ll be putting my

shoulder and energy behind the fantastic

team that we’ve got to get stuff done.”

From page 10

“During this period we

have moved from an economy

that was growing at a swift

pace, with low unemployment,

to seeing the extremely disruptive

effects of the Covid-19

pandemic and lockdown, with

businesses in distress, then

finally moving onto the path of

a strong recovery.”

The Priority One leaders

said they were pleased to

report that economic activity,

measured through retail spend

and heavy vehicle movements,

had returned to normal levels,

and unemployment increases

that have been modest.

“In many cases New Zealand

has positively outperformed

the dim expectations

of late March/April. We see the

Western BOP as performing a

couple of percentage points

ahead of the country.”

The Western Bay would

come out of the pandemic in

good shape for a number of

reasons, they said, noting:

• Our strong growth coming

into the downturn was able

to carry us through, many

businesses came back from

lockdown with strong pipelines

and customers.

• Our export sector, led by

kiwifruit, honey and manufacturers,

has fared well in

global markets.

• We have a diversified economy

for regional New Zealand,

with relatively low

exposure to international

tourism and travel.

• Strong population growth

has continued, fuelling

some of this economic

growth. We expect to

remain an attractive destination

in the future, highlighting

the need to plan

accordingly.

But despite the local economy

coming through the pandemic

well, it did not mask

some of the challenges ahead.

While the Western Bay’s

growth has traditionally been

strong, they said:

• Our incomes are lower than

the New Zealand average

and many other cities.

• Our rapid population

growth has outstripped

infrastructure and land

availability.

• Our housing market is in

crisis, with the worst housing

and rental affordability

of any major New Zealand

city.

• We have Māori employment

outcomes that are

generally worse than the

rest of the population.

• The pandemic had accelerated

the income inequality

that we were already seeing

(with younger and lower

skilled jobs more susceptible)

and wealth inequality,

with rising house and rental

prices.

“In addition to this we must

do more to ensure that our

economy is more environmentally

and socially sustainable

in the future,” said Tutt and

Hewlett.

“Our strategy to accelerate

economic development in the

Pre-Covid-19 issues around housing

unaffordability, environmental

degradation, infrastructure deficiencies

and increasing social inequality in our

community, have not gone away.”

– Simon Clarke

Western BOP seeks to address

these points alongside taking

the opportunities in front of

us.”

Strategy for growth

Tutt and Hewlett – who

worked closely with incoming

chair Clarke on the strategy

for the coming year – said it

had a joint value and growth

approach.

“Firstly we must accelerate

our developing regional innovation

ecosystem so that we

can build more value into our

Payroll indicators

from business

David McConnochie afa

Paul O’Driscoll afa

Brett Bell-Booth afa

Philip Kilpatrick afa

Get the expert help you need

Forsyth Barr

Andrew Davis afa

A

key issue for all

local business in

2021 will be payroll

costs. Remuneration

specialists Strategic Pay

recently released their

November Remuneration

and Business briefing,

highlighting expectations

and concerns of employers

across the country.

Cathy Hendry, senior

consultant for Strategic

Pay in Tauranga, said

for its latest survey, 230

responding organisations

were asked to forecast the

overall payroll increase

anticipated for the year to

September 2021.

The overall average

rise in payroll anticipated

by the respondents was 1.9

percent, with 10 percent

of organisations reporting

that they still didn’t know

what increases would look

like due to the pandemic.

“General staff are being

forecast to get the higher

of the increases, in line

with commentary we have

seen come through from

our pulse surveys, where

organisations were mainly

wanting to focus on their

legal commitments, for

example with living wage

or minimum wage movements,

and then not much

else,” said Hendry.

“As we move up the

staff levels, we see smaller

increases, until we get to

just over one percent forecast

for CEOs and senior

executives. Whether this

will actually flow through

into the salary increases

provided going forward –

we shall see.”

Do you have a plan on how to best

meet your future financial needs?

Ensuring that you have enough income

to see you through retirement and are

able to manage unforeseen changes in

income can be a significant challenge.

At Forsyth Barr we have a dedicated

team who can help you to plan, build

and manage an investment portfolio

to suit your needs.

Disclosure Statements for Forsyth Barr Authorised

Financial Advisers are available on request and free of

charge. Fees and charges will apply if you elect to have a

continuing relationship with Forsyth Barr.

Whether you need to maintain a

certain level of income, or grow funds

to help future generations reach their

financial goals without the burden of

debt, we can provide the expert help.

Contact us for a free review of your

investments in confidence and a

no-obligation discussion on how we

can help you achieve your future

financial goals.

40 Selwyn Street, Tauranga.

(07) 578 2737 forsythbarr.co.nz

TAU6195-03© Forsyth Barr Limited June 2020

General staff are being forecast

to get the higher of the

increases, in line with

commentary we have seen

come through from our pulse

surveys, where organisations

were mainly wanting to focus

on their legal commitments,

for example with living wage

or minimum wage

movements, and then

not much else.”

– Cathy Hendry


COVER STORY

January 2021 BAY OF PLENTY BUSINESS NEWS 7

Small business employment

improves post lockdown

Brett Hewlett

economy, create higher value

employment and take advantage

of international opportunities,”

they said.

“We have a cluster of

innovative businesses that

has potential to grow. We

must harness the opportunity

in our Māori community,

with a growing and youthful

workforce, land holdings and

momentum.

“At the same time, we must

take a step change in how we

grow as a region, growth must

take place in a more intelligent

way, to do this we need to

change the equation for better

results.”

Priority One believes this

will require greater partnership

between business and government

(local, regional and central)

to provide the region with

the planning and resources to

keep growing in a sustainable

manner.

“Having a strong economic

strategy in partnership with

government is a key enabling

factor.”

The number of jobs in

small businesses across

New Zealand grew 1.4

percent during October and

were now above pre-crisis

levels, according to global

small business platform Xero.

The company released its

Xero Small Business Insights

(XSBI) in the last quarter of

2020, as we went to print.

That followed the strong

recovery from the initial

downturn experienced in

April due to the initial nationwide

lockdown.

Small business revenue

remained relatively flat,

decreasing by 0.4 percent

during the period, compared

to the previous year.

But Xero’s managing

director for New Zealand &

Pacific Islands, Craig Hudson,

said the summer break

offered Kiwis the opportunity

to dig in and support their

local businesses.

“Now’s the time for Kiwis

to make a commitment to

buying local and supporting

the small business economy

in their communities,” he

said.

Support local hospitality

“This is especially true of our

hospitality industry, which

needs our continued support

after three consecutive

months of negative year-onyear

revenue growth.

“For those who can, get

in some domestic tourism,

eat at local restaurants and

choose local products when

buying gifts. This will help

the nation’s economic recovery

immensely, and help the

country end the year on a high

note.”

Hudson said it was

encouraging to see employment

figures growing, which

remained in line with traditional

seasonal trends.

“With the exception of

hospitality, jobs in all industries

across the country have

recovered to, at or above

pre-crisis levels,” he said.

“The manufacturing and

retail industries in particular

have seen good recovery

during the month.

“Looking at the hospitality

sector, we saw jobs fall

early in the crisis and they

have remained pretty flat

since then, despite revenues

improving.”

Hudson said a restricted

labour supply due to border

restrictions, coupled with

fears of new lockdowns,

meant small business owners

were working longer hours

Now’s the time for

Kiwis to make a

commitment to buying

local and supporting

the small business

economy in their

communities.”

– Craig Hudson

without hiring new staff.

But he hoped to see that

change, especially moving

through Christmas and the

summer break.

Positive growth

indications

Compared to pre-crisis levels,

there was positive growth in

job figures in Canterbury (6.7

percent), Hawke’s Bay (5.4

percent)), Wellington (5.2

percent), Bay of Plenty (4.7

percent) and Northland (3.3

percent) as at the end of

October.

However, Auckland (-2.9

percent) and Queenstown

(-5.0 percent) were yet to

completely recover the jobs

lost during the initial COVID-

19 lockdown.

Outside of Otago (-4.3

percent) and Waikato (-5.1

percent), small business revenues

were up year-on-year

in October in Northland (8.5

percent), Bay of Plenty (3.8

percent), Auckland (1.2 percent),

Canterbury (0.5 percent)

and Hawke’s Bay (0.4

percent), according to Xero

data.

Equity markets surged as year-end

approached

Investment market update (for the quarter ended 30 Nov, 2020)

After three months or so

of global equity markets

generally bouncing sideways,

they surged in November

fuelled by two key events: (1)

markets’ view of a benign outcome

in the US election, and

(2) substantial positive progress

on Covid-19 vaccines.

Equity markets were led

higher by more economically

exposed companies and

sectors whose earnings are

more sensitive to underlying

economic conditions and

therefore the re-opening of

economies.

As such, markets with more

of these cyclical companies,

such as Australia (+8%) and

Europe (+6%), outpaced those

comprising more defensive

companies including New

Zealand (+6%) and the United

States (+3%), particularly

through November.

Those more defensive

sectors and markets remain

strongly ahead year-to-date.

Also reflecting the greater

confidence in the economic

outlook and investors’

increased appetite for owning

risk assets:

• Bond prices fell, with yields

rising off historic lows, as

the price being paid for

safety reduced.

• The NZD rose, appreciating

+4% against the US dollar

and +5% against the Australian

dollar over the quarter,

offsetting some of the performance

from international

assets for unhedged domestic

investors.

President Trump, you’re

fired!

The first key event in November

was the US election. In the

highest turnout since 1900, the

results did end up being closer

than betting-odds and many

polls predicted. As expected,

the Democrats retained control

of the House of Representatives,

but, against predictions,

the Republicans look likely

to have held the majority in

the Senate (albeit we won’t

know for sure until January).

The Democrats have likely

fallen short of securing a “Blue

Wave”, sweeping the Presidency,

Senate and House of

Representatives, which would

have provided a platform for

significant policy reform.

This split Congress should

limit Joe Biden’s policy agenda

(for the next two years at least)

including reducing the likelihood

of market unfriendly

tax policies and greater regulation

on the likes of the tech

and healthcare industries. It

also means government fiscal

stimulus is likely to be lower,

requiring more of the support

for the economy to come

from the US Federal Reserve,

including keeping interest rates

low.

Vaccine promise

The US election was closely

followed by the biggest news

of the quarter, highly promising

trial results from three Covid-

19 vaccine candidates. All

three showed strong efficacy

in trials – BioNTech/Pfizer and

Moderna both around 95%, and

Oxford/AstraZeneca up to 90%

(albeit further testing is being

undertaken).

All far exceeded the US

Food and Drug Administration

(FDA) approval hurdle of at

least 50%.

Other vaccines are also at

the final testing stage. Time to

develop vaccines is often measured

in decades. It looks like

we’ll have multiple Covid-19

vaccines available in less than

a year. Anthony Fauci, head of

the US National Institutes of

Health, called the results “just

extraordinary”.

The next step for these vaccines

is regulatory approval,

which is particular to each

country.

To speed up the process,

emergency-use authorisations

are available in some countries

allowing higher-risk portions

of the population to be vaccinated

early. We’ll likely see a

ramp-up of vaccine production

and distribution through 2021

supporting slow, but steady

progress toward more normal

economic conditions.

A good backdrop for risk

asset prices

We believe the backdrop

remains a positive one for

investing in risk assets such

as shares and property. Real

interest rates (after inflation)

are generally negative. Central

banks commitment to ultralow

interest rates is forcing

investors to look for alternatives

outside of traditional safe

havens such as term deposits

and bonds. The lack of any

significant inflation means this

position does not look likely to

be reconsidered any time soon.

Global economic activity

has exhibited a V-shaped

recovery in areas such as housing

sales, construction, retail

sales, and manufacturing.

Many companies in New

Zealand and offshore are experiencing

better-than-expected

WHAT TO DO WITH YOUR MONEY

> BY BRETT BELL-BOOTH

Investment Adviser with Forsyth Barr Limited in Tauranga, and

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

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

outcomes, which is translating

through to better employment

demand. Investors should be

confident that, in general, the

trough in company earnings is

behind us.

The recovery could face

a setback over the next few

months as the latest wave of

the pandemic sweeps back

through the Northern Hemisphere.

However, the recent

success around vaccines means

markets are largely looking

“over the hill” to a world where

medical preventions are being

rolled-out.

An extraordinary (and

educational) year

2020 has been an extraordinary

year for the world and for markets.

Back in January, very few

predicted that within months

we’d experience the first global

pandemic in over a century, in

a couple of months most of us

would be working from home,

and we’d see the fastest bear

market (a 20% decline in equity

prices) in history. Equally, as

equity markets were plunging

in March, few predicted we’d

be back hitting record highs

less than six months later. It

really has been a roller-coaster

ride. The good news to end the

year is, that on combating the

virus, we look to be on a positive

path.

Given the recovery in equity

market values since March, we

note that:

1. markets are able to remain

resilient in the face of bad

news,

2. share prices reflect the longterm

earnings companies

will generate over the years

and decades ahead, not just

the next six to 12 months,

and

3. it’s not possible to consistently

time or predict shortterm

movements in markets.

Overall, it’s important to

establish and remain committed

to an investment plan which

meets your long-term goals.

After such a challenging

year we extend our best wishes

to you and your loved ones for

the holiday season.

This column is general in

nature and is not personalised

investment advice. This column

has been prepared in good faith

based on information obtained

from sources believed to be reliable

and accurate. Disclosure

Statements for Forsyth Barr

Authorised Financial Advisers

are available on request and

free of charge.


8 BAY OF PLENTY BUSINESS NEWS January 2021

Industrial sector shows grit

As the repercussions of the global pandemic continue to shake

down in the New Zealand economy, it is becoming clearer that the

industrial sector has largely been shielded from many of the body

blows that other sectors have experienced – and continue to endure.

Now that the sting in

Covid-19’s tail has

caught up with us, it is

hoped that the industrial sector

continues to thrive. The wheels

of activity in the industrial

arena have kept turning, with

certain sub-sectors outpacing

others and barely missing

a beat, while other innovative

businesses have jumped

quickly to meet new demands.

Supermarkets were the

winners during the strictest

lockdown times and as

demand ramped up for home

delivered groceries, so too did

the supermarket operators’

search for dedicated “dark

store” premises to handle the

unprecedented online orders.

Exports resilient

Exports within the primary

sector – notably dairy, meat

and horticulture – have been

resilient despite global economic

volatility. According

to a report by the New Zealand

Institute of Economic

Research, this country’s agricultural

export revenue for

the almost-five months from 1

February to 24 June – was up

nearly $1 billion on the same

period last year.

This kept processing plants,

packhouses and supply chain

partners active and although

the wind was knocked out of

forestry, seafood and manufacturing,

export sales, ports

around the country report optimism

and increasing volumes

as the world gets to grips with

an altered reality.

Keeping goods moving and

services “open for business”

has been paramount to ensuring

that the country’s economic

recovery across the board is

given a fighting chance.

Many businesses that

occupy industrial space have

reassessed their capability

and physical footprint needs

– some retrenching space and

others expanding – and Bayleys

has been involved with

numerous lease restructuring

and subleasing transactions to

facilitate this.

The mantra being touted

by the country’s leaders and

echoed by the business community

is to “support local”

as we try to emerge from the

Covid-19 scenario in a sound

fiscal position.

The manufacturing sector

is hopeful that New Zealanders

will support locally made

products and the clothing

industry is one that may be

regenerated on the back of this

new wave of patriotism.

With global supply chains

still fragmented, perhaps Kiwi

ingenuity will really come to

the fore and we’ll see an invigorated

manufacturing industry

– one that helps with domestic

employment fundamentals at

the same time as bringing out

local pride.

Just how “think and buy

local” will translate into

demand within the industrial

property market is yet to be

fully seen. But there’s plenty

of activity in the sector right

now – both in a traditional

usage context and in the hunt

for premises to cater for new

niche businesses.

Bayleys’ research shows

vacancy levels are sub-1.5

percent across prime and secondary

industrial stock in the

Auckland region and there’s

similar patterns being observed

in other main centres.

Rents appear stable for now,

and incentives – while still

being offered on a case-bycase

basis in some instances –

have also stabilised.

E-commerce was already

flying high pre-pandemic but

with restrictions on physical

movements during New Zealand’s

staged series of lockdown

measures, Kiwis got

click-happy and demanded a

lot from those businesses with

online capability and expected

Supermarkets

were the

winners during

the strictest

lockdown times.

those without a credible online

platform to adapt and get with

the programme.

Logistics and last-mile

delivery operators have been

under the pump since March

as they moved from delivering

essential goods only, to fulfilling

orders placed in a fullblown

spending frenzy once

restrictions eased.

Courier companies have

been searching for extra warehousing

capacity, NZ Post has

leased additional space to deal

with rising parcel volumes,

and retailers have been on

the hunt for overflow storage

space to satisfy growing online

demand for goods.

NZX-listed Goodman Property

Trust recently announced

via its online AGM: “50 to

60 cents of each dollar going

into property wants to go into

industrial,” which is in-line

with a global chase for logistics

and industrial land, buildings,

tenants and development

sites.

As we brace ourselves for

the repercussions of a potential

second wave of Covid-19

in New Zealand and face the

reality of a W-shaped recovery,

we’re hopeful that the

industrial property sector will

remain resilient, adaptable and

viable for landlords and tenant

businesses alike.

Remember, Bayleys’ industrial

leasing team is here to

help and we’re always available

at the end of the phone or

email to talk about the market,

opportunities and solutions.

For more property insights, see

www.bayleys.co.nz/workplace

ALTOGETHER

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

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

Professional property management

A business partner that understands your views and goals

Contact the Bayleys Tauranga Commercial Property Management team today.

Bayleys Tauranga

Commercial Property Management

07 579 0609

jan.cooney@bayleystauranga.co.nz

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

ALTOGETHER BETTER

Residential / Commercial / Rural / Property Services


January 2021 BAY OF PLENTY BUSINESS NEWS 9

Looking ahead

to 2021

What an interesting 2020 we have

had world-wide. I’m sure we all

appreciate looking forward to 2021

and Trustpower Baypark is no

exception.

Bay Dreams

Bay Dreams will be kicking

off in 2021 with a pre-party on

2 January and the main event

on 3 January.

International travel restrictions

aside, there will be 30

acts to entertain and start 2021

off with a bang. These include

a few of the biggest international

DNB & hip hop artists

that could be convinced to

quarantine (with government

approval), plus lots of local

kiwi talent.

Speedway

Do you have the need for

speed? Speedway Season has

started already and there are

many more meets over summer

with action-packed fun for

the whole family. Upcoming

summer dates are January 5, 8,

9, 16, 29 & 30, February 6 &

20, March 6, 13 & 27.

To enjoy watching the races

in style, we have a number

of exclusive, spacious Corporate

Boxes with balconies,

available to entertain up to 20

guests comfortably.

They have full kitchen

facilities, including microwave,

table, chairs and bar

stools. A self-contained refrigerator

for ongoing inbox bar

service with dedicated corporate

box catering stewards for

continuous supply along with

a high-quality catering service

delivered to your box.

These boxes are also available

on an annual basis to cover

the entire Speedway Season.

Please contact us on events@

bayvenues.co.nz or 07 577

8593 for more information.

Farmer Auto Village

Colour Dash

Bring some colour to your

summer and register for the

Farmer Auto Village Colour

Dash on January 24. The

Farmer Auto Village Colour

Dash is a 5km non-competitive

fun run or walk for people of

all ages where participants are

splashed with a hurricane of

special colourful dust at each

kilometre. Every registrant

gets: a free t-shirt, a bag of

colour and an explosion of fun.

Macky Gee

Macky Gee will be performing

on January 31. Smashing

through the barriers of the

conventional and carving a

path for himself,

Macky has turned

the heads of some of

the industry’s biggest

players to become one

of the most promising and

spectacular artists in Drum &

Bass music today.

From weekly radio shows

to playing gigs around the UK

and Europe, Macky wanted to

carry on building on this creative

vibe and soon found himself

going to college to study

Music Production learning

his craft and honing his studio

skills to give him both the

desired confidence and knowledge

to push forward making

his own original tracks. which

would eventually change the

sound of drum and bass.

Seniors and Travel

Annual Expo

The Seniors and Travel Annual

Expo is on again on February

27 & 28 – 10am to 3pm at Baypark.

There will be caravans

on show for tripping around,

and lots more options to suit

all tastes and budgets.

The organiser explains: “The

purpose of the Expo is to

provide seniors with firsthand

opportunities to discuss

products and services usually

advertised in magazines and

newspapers alone.”

The Expo will showcase

a vast range of services and

products for seniors in one

convenient location – and it’s

all for free. An event not to be

missed, with loads of information

and entertainment, and

tastings for all.

Bill Bailey is back

Farmer Auto Village

Colour Dash

Following a thumbs-up from

immigration, Bill Bailey

makes Aotearoa his first touring

destination in the Covid-19

era, announcing a 12-centre

2021 tour of New Zealand,

landing in Tauranga on 25

March.

How did we get here? How

do we find our way through

this? And exactly who are we

again?

In Bill’s new show, En

Route to Normal, Bill ponders

these and other questions that

this moment in history has

thrown up and tries to see a

way through the strange unreality

of our new world.

With Bill naming the show

before we’d even heard of

Covid-19, En Route to Normal

is not just a funny, heart-warming

mix of stories, music and

history, but a personal mission

to find our way through these

strange times.

Tracing lines through chaotic

moments in history, Bill

seeks out parallels where

human resilience and our ability

to endure has got us through

times of strife.

Through music, songs, and

memories, Bill considers our

changing priorities, the wonder

of dogs, how little things

can keep you on track, and

rhapsodises on his new-found

love of skydiving.

He recounts his own experiences

of dealing with isolation,

ruminating the ‘sounds

of lockdown’ which led to a

greater appreciation of birdsong

and perhaps led to the

creation of music itself, and

how our reliance on technology

has inspired Bill himself

to create dance remixes of video-calling

ringtones.

Last in Aotearoa in 2018,

the British Comedy Award

winner is a frequent visitor to

our shores, with Kiwis flocking

to theatres to see the master

in action. Irreverent and

immensely talented, En Route

To Normal will be the seventh

show that Bill has brought

down under, delivered with the

energy the multi-faceted entertainer

is known for.

With his trademark blend

of satire and surrealism, stories

and dismantled jokes, crowd

sing-alongs, weird instruments

and musical showstoppers,

don’t miss this legendary

comedian, musician and actor

back on stage in New Zealand

in 2021.

Premier conference

venue

Trustpower Baypark is Tauranga’s

Premier Venue for conferences,

meetings, entertainment

and exhibitions. Offering a

complete package in one convenient

location that features

state of the art meeting rooms,

in-house catering, audio visual

services, professional conference

organiser (PCO) and marketing/promotional

services.

Macky Gee: Spectacular Drum & Bass artist. Photo/Supplied.

Bill Bailey: En Route to Normal. Photo/Supplied.

AGENT OPPORTUNITIES FOR THE

BOP AND CENTRAL NORTH

Own And Run Your Own Business

An opportunity exists for a trade type people with great

communication and people skills to be our exclusive

agents to sell and install our products. Low cost of start

up includes training and support.

For more information on any events, enquiries for Trustpower Baypark venues,

BayStation activities or service on/off site from BayCatering, BayAudioVisual

or to book our New Year – New Meetings promotion visit www.

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

Contact Chris Tobin for details 021 944 292

WWW.SHADESDIRECT.CO.NZ

0800 SHADES


10 BAY OF PLENTY BUSINESS NEWS January 2021

PAPAMOA JUNCTION

IS UNDERWAY

Carrus – one of the country’s biggest land developers – is now underway with

development of its mixed residential/light commercial subdivision: Papamoa Junction.

By DAVID PORTER

Carrus is fresh from completing its successful

development at The Lakes in Tauriko,

and is also engaged in other major

developments around the North Island, namely

in Wellington and Taupo.

Nearer to home base it is developing the

Nga Roto Estate in Five Mile Bay, in a prime

location of Taupo, which will become a modern

residential development and where sales were

“going berserk”, said Scott Adams, Carrus Managing

Director.

Adams is also Managing Director of all of

the company’s residential land developments

and commercial development companies. He

noted that with The Lakes now finished, there

was a strong desire to push ahead with Papamoa

Junction, which has been owned by a Carrusmanaged

entity for the last 11 years.

“The problem with Tauranga is that it’s

very difficult to secure developable land,” said

Adams. “It’s either unavailable or if it is available,

it’s unaffordable,” he said.

“Every block that we’ve looked at [locally]

in recent times is constrained in some way,

whether it’s because of restricted access, poor

zoning, covenants that prevent further subdivision,

or natural hazards like flooding and liquefaction,

or simply the cost of the land.

“If it wasn’t difficult enough for developers

to have all those things going against us, there’s

also the RMA [Resource Management Act],

which has morphed into a bipolar piece of legislation

that is long overdue a serious reform.

“Is it an environmental act or is it an urban

development act? Time has shown that it cannot

successfully be both. If Tauranga has any

chance to grow and thrive then the current gov-

Turn to page 12

The problem with Tauranga

is that it’s very difficult to

secure developable land

– it’s either unavailable

or if it is available, it’s

unaffordable.” – Scott

Adams


January 2021 BAY OF PLENTY BUSINESS NEWS 11


12 BAY OF PLENTY BUSINESS NEWS January 2021

From page 10

ernment needs to simplify or remove the RMA

and replace it with fast-track legislation.”

Councils and landowners have considered

options for urban development at Papamoa

East’s Te Tumu for years and that potential

760ha site is now part of the SmartGrowth strategy.

But even in a best-case scenario, it would

be at least three years before any development

would occur at Te Tumu, said Adams.

“Everyone knows that Tauranga has a major

problem with housing supply – the city needs an

additional 40,000 houses over the next 30 years

in the city just to keep up with the population

growth. Where is this going to come from?”

Future Urban growth areas Te Tumu and

Tauriko West are still several years away from

starting. Adams said that every Tauranga citizen

had to get in behind both these plan changes

when they finally get notified in 2021, because

these areas will help ease housing demand and

smooth increasing house prices.

Leading companies involved

Carrus said it had assembled a great team to

undertake the Papamoa Junction development.

It involves a number of leading property sector

companies, including JMC contractors, engineering

firm Aurecon and real estate giant Colliers

International.

As designed, Papamoa Junction comprises

41 mixed-use commercial lots and two residential

super lots with Barrett Homes underway

with designs for approximately 60-70 two and

three-storeyed townhouses ranging from 145sm

to 160sm adjacent to the Wairakei Stream

reserve. Residents will have a straight line walk

to the Papamoa Beach, said Barrett Homes’

Mike Bryant, who is co-owner of the company

with Grant Eynon.

“There is lots of residential development in

the area, and schools just up the road and an

amazing local community,” said Bryant. “We

Turn to page 14

“There is lots of

residential development

in the area, and schools

just up the road and an

amazing local community.

We think it’s going to be

a development that is

definitely in demand in

that area.” – Mike Bryant

COMMERCIAL LAND PAPAMOA –SELLING FAST

COMMERCIAL LAND PAPAMOA – SELLING FAST

SECTIONS SECTIONS AVAILABLE AVAILABLE FOR FOR SALE SALE WITH WITH ASKING ASKING PRICE PRICE + GST + GST (if any) (if any) 230 | PARTON 230 PARTON ROAD, ROAD,PAPAMOA

Papamoa Junction Junction is a significant is a significant develop

development in the heart site of in the Papamoa heart of East´s commercia

Papamoa East´s commercial hub.

COMMERCIAL LAND PAPAMOA – SELLING FAST

With

SECTIONS AVAILABLE FOR SALE WITH ASKING PRICE + + GST (if (ifany) 230 PARTON ROAD, PAPAMOA

With 5.25 5.25 hectares of buildable land land for sale in

for

individual

sale 43 individual

freehold

freehold

titles,

titles,

this offering rep

Papamoa Junction is

this a exceptional a significant

offering represents

development an exceptional

opportunity site

for those looking

in in the heart of of Papamoa opportunity

East´s commercial

for those looking

hub.

to own a

piece of Tauranga´s fastest growing area.

With

piece of Tauranga´s fastest growing area.

5.25 hectares of of buildable Sites between range

land between

for for 864m² sale in

864m²

in 43 and 43

and 2,530m² in size and r

individual freehold in

titles, size $750/m² this

and offering

range for from internal represents $750/m² sites, an an

for to $800/m² for

exceptional opportunity internal

road for for

sites,

frontage. those to

looking $800/m²

to to own

for sites

a a

with

5.25ha of

build-able

43 freehold

sections

5.25ha of

land of 43 43 freehold

Prices Prices

build-able

sections

from from

land land

$750m² to to

$800m²

Prices

from

$750m² to

Titles Titles

expected $800m²

from fromid-

mid-

2021 2021

www.colliers.co.nz/p-nzl67009164

www.colliers.co.nz/p-nzl67009164

www.colliers.co.nz/p-nzl67009164

Titles

expected

Sites Sites from mid-

864m² 2021 to to

2530m²

Sites

864m² to

2530m²

High High

profile profile

location

High

profile

location

High High

Commercial

population

zone zone

growth

area area

High

population

growth

area

piece of of Tauranga´s road

fastest frontage.

growing area. Sites range

between 864m² and The 2,530m² versatile in in size commercial and range zoning from

allows

$750/m² for for internal for sites, residential, to to $800/m² retail, for for office sites and with

light

road frontage.

industrial uses. Initial demand has been

significant with well over 80% of the

The versatile commercial sites with zoning purchasers allows for to for date. Ensure you

residential, retail, office register and your light interest industrial with uses.

Simon or Rich

Initial demand has to been avoid significant disappointment. with well over

80% of of the sites with purchasers to to date. Ensure you

register your interest Simon with Clark Simon – 021 or or Rich 959 to 710 to avoid

disappointment.

Rich Davidson – 027 860 9338

Simon Commercial Clark

zone

021 959 710

Rich Davidson

027 860 9338

The versatile commercial zoning allows fo

residential, retail, office and light industri

Initial demand has been significant with w

80% of the sites with purchasers to date.

register your interest with Simon or Rich

disappointment.

Simon Clark

021 959 710

Rich Davidson

027 860 9338

CPS Partnership Limited Licensed CPS Partnership L

under the REAA 2008

CPS CPS Partnership Limited Licensed under under the the REAA REAA 2008 2008


January 2021 BAY OF PLENTY BUSINESS NEWS 13

SHAPING THE FUTURE

Papamoa Junction

SHAPING BULK THE EARTHWORKS FUTURE

ROADING

DRAINAGE

LAND DEVELOPMENT

SURVEYING

TRANSPORT

BULK EARTHWORKS

ROADING

DRAINAGE

JMC are proud to

be associated with

The Lakes

JMC are proud to

be associated with

Papamoa Junction

LAND DEVELOPMENT

SURVEYING

TRANSPORT

SHAPING THE FUTURE

SHAPING THE FUTURE


WALKWAY

14 BAY OF PLENTY BUSINESS NEWS January 2021

SITE PLAN FOR PAPAMOA JUNCTION

60.3m BOUNDARY

HGV

50.02m BOUNDARY

TYPE D

GF - RETAIL

FF - OFFICE

2000

51 PARKING

3.1m BOUNDARY

ROAD 6m

GARDEN

6(2 STORY UNITS)

GARDEN

235.53m BOUNDARY

ROAD

5000

ROAD 6m

7(3 STORY UNITS) 8(3 STORY UNITS)

HGV

5m SETBACK RULE 17A.11.4 a

GARDEN

GARDEN

6(2 STORY UNITS) 3(2 STORY UNITS)

4(3 STORY UNITS)

ROAD 6m

4(3 STORY

UNITS)

5(3 STORY

UNITS)

ROAD 6m

ROAD 6m

4 PARKING

3 PARKING

From page 12

think it’s going to be a development that is definitely

in demand in that area.”

Bryant said the overall “feel” of the development

would be “timeless” and the homes

would have a quality look in keeping with the

surrounding area.

Barrett will also be building a small commercial

development with some retail lots and office

space, possibly with some form of hospitality

operation to anchor it, he said.

17.5m BDY

TYPE C

GF - OFFICE

17.5m BDY

78.04m BOUNDARY

TYPE A

SHOWROOM /

TRADE RETAIL

TYPE B

GF - RETAIL

2000

15 PARKING

47 PARKING

TYPE A

SHOWROOM /

TRADE RETAIL

19 PARKING

101.12m BOUNDARY

25 PARKING

ROAD

PETROL STATION

21 PARKING

TYPE B

GF - SMALL RETAIL

PARTON ROAD

44.83m BDY

16 PARKING

ROAD

15 PARKING

TYPE C

GF - OFFICE

3 PARKING

50.03m BOUNDARY

50.03m BOUNDARY

99.09m BDY

COLLIER CONSULTANTS

CONGRATULATE

SCOTT ADAMS AND THE

CARRUS TEAM ON PAPAMOA

JUNCTION

CAR WASH

TYPE G

SMALL INDUSTRIAL

/ STUDIO

17 PARKING

TYPE A

SHOWROOM /

TRADE RETAIL

EASEMENT ROAD

HGV

TYPE A

SHOWROOM /

TRADE RETAIL

TYPE F

INDUSTRIAL

YARD

10 PARKING

PRIVATE

TYPE A

SHOWROOM /

TRADE RETAIL

YARD

17 PARKING

11 PARKING 15 PARKING

TYPE E

GF - WAREHOUSE

TYPE C

GF - OFFICE

CCL are passionate about ensuring best practice outcomes.

Our significant experience enables us to provide accurate and

efficient expert planning advice to a wide range of public and

private sector clients. We also work with the best professionals in

the industry to pull together a tailored team for projects.

TYPE F

INDUSTRIAL

LOT 2 DP 57684

TYPE E

WAREHOUSE

www.collierconsultants.co.nz

8 PARKING

TYPE G

SMALL INDUSTRIAL

25 PARKING

20 PARKING

TYPE D

GF - RETAIL &

FF - OFFICE

15 PARKING

4 PARKING

TYPE C

GF - OFFICE

OFFICE

11 PARKING

8 PARKING

ROAD

CANOPY

TYPE E

GF - WAREHOUSE

TYPE G

SMALL

INDUSTRIAL

19 PARKING

HGV HGV

HGV

25 PARKING

TYPE D

GF - RETAIL &

FF - OFFICE

9.5m BDY

HGV

8 PARKING

TE OKUROA DRIVE

TYPE A

SHOWROOM /

TRADE RETAIL

23 PARKING

15 PARKING

TYPE B

GF - RETAIL

30.01m BDY

LOT 1 DP 57684

8 PARKING

ROAD

59.63m BDY

We are proud to

be associated

with the project,

providing a full

range of Planning

and Resource

Management

services for

Papamoa Junction.


ROAD

20 PARKING

TYPE J

GF - RETAIL

FF & SF - APARTMENT

TYPE A

SHOWROOM /

TRADE RETAIL

ROAD 6m

48 PARKING

TYPE H

GF & FF - MEDICAL / VET

11 PARKING

TYPE H

GF & FF - MEDICAL / VET

TYPE B

GF - RETAIL

YARD

HGV

23 PARKING

27 PARKING

44 PARKING

ROAD 6m

42 PARKING

Earthworks underway

Scott Adams says earthworks are underway and

should have been completed by Christmas with

civil works commencing in New Year 2021,

with titles in October.

“People can expect a high level of amenity

with a Carrus subdivision,” he said. “Papamoa

Junction will be no exception with a high calibre

of development standards, landscaping, walking

and cycle connections.”

Greg Watters, Chief Operating Officer for

JMC Civil Construction, said Papamoa was

generally sandy country. The good side of that

was that it was nice material to do earth works

with, he said, but when the Spring winds get up,

it posed a risk from an environmental aspect.

“That’s the real challenge, the wind,” he said.

The contract has been awarded as two parts:

for the initial earth works, which JMC aimed to

finish before Christmas, and then the civil engineering

works.

“There is a fair bit of interest from the local

community because people have been seeing it

sit here for a long time and wondering what will

happen here,” said Watters.“It’s deemed to be a

fairly high-profile project.”

Karl Mischewski is the Sustainability Manager

of Gull Group, which has had a station on

the site for several years. “We were the first cab

off the rank several years ago and built when it

was an orchard,” he said.

“I guess we were the first to see the potential

to go ahead in Parton Road way back when. At

that time we looked at the future growth strategies

for Papamoa and came to the conclusion

that it could eventually become the Bay of Plenty’s

third-largest city.”

Gull leased the site off Carrus originally,

and now they were dividing and selling it,

Gull would be looking to acquire the site, said

Mischewski. “We had the confidence to go

ahead when there were just a few shops down at

the beach,” he said.

“I recall us taking out the trees to develop

the site, which was surrounded by paddocks. We

can certainly see what’s happened since then.

The Parton Road development is just a sign of

the growth that is occurring in this desirable

region.”

MAKING THE

MIX WORK

Aurecon provides specialist consultancy

services for infrastructure

and urban development projects.

For Papamoa Junction, the firm

has provided the stormwater and civil

design, cadastral survey, specialist geotechnical,

contaminated land and traffic

engineering services.

Aurecon’s Technical Director Land

Infrastructure, Neill Raynor, said

these factors were all key to successful,

larger residential and commercial

developments.

The residential/light commercial

mix in Papamoa Junction was becoming

more common, and is accommodated in

the Tauranga City Council’s rules, said

Trainor.

“But some of the key challenges are

making sure the residential space is nice

to live in,” he said. “The lots along the

Wairakei Stream corridor are a good

location for outlook and green space

within a commercial zoned area.”

Raynor said the location of Papamoa

Junction was important as the catchment

was growing with the residential growth

in Wairakei, with traffic back into the

traditional commercial centres around

Bayfair and beyond getting busier.

“The block is handily adjacent to

some main roads so access to and from

the development is good,” he said.

“Creating safer intersections with

allowance for pedestrians and cyclists

in particular has been important, with

the existing shared path already across

the frontage, and the close proximity of

schools, sports fields, etc.”


NORTHLAND l BAY OF PLENTY l CENTRAL OTAGO

January 2021 BAY OF PLENTY BUSINESS NEWS 15

Excellent

design

No franchise

fees

Quality

materials

Our inhouse designers pay special

attention to the details of our homes,

honouring that homes are a combination

of comfort and functionality.

This allows Barrett Homes to offer higher

specifications as standard. We are NZ

owned and operated and always will be.

We understand that a home should be

built to last. Our materials use the latest

innovative technologies to provide a

quality that is strong and durable.

Visit a Barrett Homes showhome today.

barretthomes.co.nz l Ph 07 574 9009

You get so much more in a Barrett Home.

There is simply no comparison. With Barrett Homes you get more

choice, better quality and a more enjoyable build process.


16 BAY OF PLENTY BUSINESS NEWS January 2021

HAIMES Building – Supreme Renovation of the Year

Totara Construction – Carters New Home $1-$1.5m Gold Award

New Zealand’s best built homes

and renovations revealed at Master

Builders House of the Year Awards

For three decades, Registered

Master Builders House of the

Year competition has recognised

the very best homes, builders,

and craftsmen across New

Zealand. This year marks 30

years of the competition.

In a first for the competition, this

year the awards were announced

virtually.

Builders across the country

gathered with colleagues,

friends and families to watch

from the comfort of their

own homes, workplaces, or at

local viewing parties hosted at

Master Builders regional branches.

Triple Star Management Limited,

based in Queenstown, took

home the Supreme House of the

Year for their Southern House.

Taupo house takes Supreme

Renovation of the Year

Taupo based Haimes Building

won Renovation of the Year. They

also walked away with the Bunnings

Renovation Over $1 Million

award.

Judges said this renovation,

that was two years in the making,

was an impressive example of collaboration

between the passionate

homeowners, a clever designer,

and a craftsman builder.

“Renovations always present

challenges, require great planning,

and need lot of thinking along the

way to incorporate the new, maintain

the old, and create a seamless

result.

“From the hinuera stone personally

laid at the entry, to the endless

straightening of the original

structure to cope with the unforgiving

new light from the atrium

windows on the gib board, the

workmanship has been executed

beautifully.

“This is a wonderful alteration

MODERN

WHARE

National Winner

CARTERS New Home

$1 Million – $1.5 Million

NEW BUILDS AND RENOVATIONS

Totara Construction is a true custom home building company

specialising in architectural new builds and renovations. With

an eye for detail and an unwavering commitment to quality

craftsmanship coupled with seamless project management. The result

is an extremely well finished home. Totara Construction is partnered

with Grace Saathof Interiors to ensure timeless style and that your

personality is reflected throughout your home.

Phone 027 213 5012

matt@totaraconstruction.com

www.totaraconstruction.com


January 2021 BAY OF PLENTY BUSINESS NEWS 17

Totara Construction – Carters New Home $1-$1.5m

Gold Award

ZB Homes – Builders Own Home Gold Award

that the owners clearly enjoy

and has been built to stand the

test of time.”

Tauranga’s Totara

Construction scoops

CARTERS New Home

$1-1.5m

Local Tauranga builders Totara

Construction cleaned up the

$1-1.5m new home category

award with their BOP Modern

Whare.

Registered Master Builders

Chief Executive David Kelly

says the organisation is proud

to have been showcasing the

best of New Zealand residential

buildings over the last 30

years.

“Master Builders make up

some of the best builders in the

country and this competition

is an opportunity to recognise

their efforts to build quality

homes in New Zealand.

“Each year we reach a new

level with innovative designs

and excellent craftsmanship.

“Our sector plays a vital

role in New Zealand. We

are a key contributor to the

New Zealand economy, with

every $1 million spent on

house building supporting

$2.6 million across the wider

economy.

“But maybe our most

important role in the legacy

we leave – we are building

the quality homes that Kiwis

will live in for generations to

come.”

ZB Homes – GIB Show Home Gold Award

Contact us for design and build

0275 161 101

www.zbhomes.co.nz

Privately owned and operated, ZB Homes is the building company Bay of Plenty locals

trust and depend on for quality, flexibility and progress.

We offer a full design and build service with exceptional workmanship and build throughout the BOP.

VISIT OUR SHOWHOME LOCATED AT 70 TE WHARO DRIVE, PAPAMOA


18 BAY OF PLENTY BUSINESS NEWS January 2021

The outcome of

the Kraft Foods

Group Brands LLC

and Bega Cheese

Limited case in

Australia could

have an impact on

legal approaches

to trade mark

registration in

New Zealand.

A Bega reason to register

your trade mark

Trade mark rights are assigned – transferred – from one owner to another all the time. How

many trade mark owners know, though, that if they assign an unregistered trade mark to

another owner, then not only do they have to assign the goodwill in that trade mark, they

also, as a matter of law, have to assign the underlying goodwill in their business, too? If they

don’t, the assignment is likely to be invalid.

INTELLECTUAL PROPERTY ISSUES

> BY BEN CAIN

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

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

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

This issue was at the

heart of litigation over

the ditch between Kraft

Foods Group Brands LLC and

Bega Cheese Limited, which

was recently brought to a conclusion

by Australia’s highest

court.* The High Court of

Australia denied Kraft Foods

the opportunity to appeal the

decision of the Full Federal

Court of Australia, which

upheld the above legal principle.

Although an Aussie decision,

it is likely to be followed

in New Zealand.

What’s the logic? Well,

according to the Federal Court,

unregistered trade marks are

not recognised under Australian

common law as “a species

of property” – unlike registered

trade marks, which are.

What is recognised, and therefore

protected under Australian

law, is the goodwill or reputation

in an unregistered trade

mark that has been generated

by the use of that unregistered

trade mark.

According to the Federal

Court, however, the goodwill

in an unregistered trade mark

“is inseparable from the business

to which it adds value”;

consequently, the goodwill

in an unregistered trade mark

“cannot be dealt with except

in conjunction with the sale of

that business”. In other words,

you cannot sell/transfer the

goodwill in your unregistered

trade mark without also selling/transferring

the underlying

goodwill in your business – the

goodwill in the unregistered

trade mark and the business

cannot be divided. That can

change things dramatically,

especially the purchase price

of the trade mark.

How does that work though

if your company carries on several

discrete businesses under

different unregistered trade

marks? Where a company carries

on several discrete businesses

(as in the Kraft Foods

case), the principle will apply

to each separate business, such

that an unregistered trade mark

may be assigned together with

the goodwill of the related

business, rather than the company’s

business as a whole.

Why it is problematic

On a practical level, assigning

the underlying goodwill

in a business together with the

goodwill in an unregistered

trade mark is in most instances

unlikely to be an issue, as the

whole of the business is being

sold anyway.

The issue becomes problematic

when the seller wants

to carry on the same business

(for example, manufacturing

and selling peanut butter) after

market has sold its unregistered

trade mark for that

business.

According to the Federal

Court, the seller will do so

without any goodwill in its

business – i.e. the only assets

the seller may have are its

plant, equipment, property

and staff. All the goodwill the

seller had in its business must

be re-built from scratch.

The goods news is you can

prevent the issue from arising

– by registering your trade

mark. Under the Trade Marks

Act 2002, the owner of a registered

trade mark has the exclusive

right to assign or transfer a

registered trade mark either in

connection with the goodwill

of a business or not.

You can therefore assign

your registered trade mark

to a purchaser without losing

the underlying goodwill in the

business generated by your use

of that trade mark. Registering

your trade mark is a no brainer

then, really.

* Kraft Foods Group Brands

LLC v Bega Cheese Limited

[2020] FCAFC 65

The ‘soft’ Due

Diligence checklist

As we relax into summer, not only is it the season of family gettogethers

and beach barbeques, it is traditionally also the period where

many consider their future, how they avoid going back to work in their

old jobs in the New Year and what sort of business they should buy.

How much time do you want to

spend in the business versus

on the business, can you

manage a business where you

may get phone calls at any

time any day, or do you need

a business where you can

compartmentalise your time?

FRANCHISING

> BY NATHAN BONNEY

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

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

As the end of 2020

approaches and we

enter 2021, I suspect

there will be a few more people

thinking seriously around

whether a franchised business

is the option for them.

In previous articles I

have discussed the various

approaches in regard to due

diligence, most recently suggesting

that a potential franchisee

entrepreneur should start

with a motivational analysis,

i.e. asking themselves “why”

they are looking at buying a

franchised business.

My assertion is this is going

to assist in guiding a potential

purchaser as to what types

of businesses they should be

looking at. But once they have

done this, what are the other

“soft” non-financial or legal

due diligence items?

When we are guiding

potential franchisee entrepreneurs

there are three key areas

we suggest they consider.

The work-life balance

After all, the elusive work-life

balance is the reason that many

purchase their own franchised

business. In many cases, it’s

true, you could go for a surf

during the day or watch the

kids play sport, but the reality

is it’s going to be your business,

and ultimately there is

no work-life balance, balancing

work being really a part of

your life.

The questions then are,

how much time do you want

to spend in the business versus

on the business, can you manage

a business where you may

get phone calls at any time any

day, or do you need a business

where you can compartmentalise

your time? Are you

required to be in the business

every day, and for how long?

From my experience, perhaps

the number one issue

that franchise business owners

become dissatisfied with or

more importantly, are not successful

at, results from them

misunderstanding, or misestimating

the amount of time

and effort required in running

a business.

Family involvement

The motivation for many in

purchasing a franchise business

is to spend more time with

the family in a family business.

It may come as a surprise

that, according to the Franchise

Relationship Institute,

this motivation is actually

inversely related to statistical

business success rates.

The due diligence questions

here are: have you worked with

your spouse or family before,

and how will you structure the

business?

What will the respective

roles be for each family member,

how much time and attention

will they be required to

spend in the business.

And of course, what are

the expectations from each

family member in terms of

remuneration?

People involved with the

brand

The cliché is that being in a

franchise business is being in

business for yourself but not

by yourself. This is reassuring.

But a franchisee entrepreneur

needs to take into

consideration the other parties

that are associated with the

“not by yourself” part of the

business. These include not

only the primary franchisor

and the key franchise support

team members, but also other

franchisees.

All of these people will

have varying levels of contact

with the franchisee entrepreneur

and impact on their relationship

with the brand. This

impact can extend to other

franchisees and how they manage

their own business and

represent the brand.

The due diligence process

here is to speak to as many people

associated with the brand

as you can. Do so at the brand

or head office level, and also at

a franchisee and perhaps former

franchisee level. Can you

work with these people, are

they competent, are they doing

a good job by the brand that

you are looking at investing

in? Can you see yourself doing

what they are doing?


January 2021 BAY OF PLENTY BUSINESS NEWS 19

Foresters concerned over cap on trees

Forest owners have responded with dismay

to government plans to double down on

intentions to limit the areas that can be

planted in exotic production forests.

By RICHARD RENNIE

Prior to the election, a

growing surge in opposition

to pastoral land

being turned into forestry

resulted in Minister for Agriculture

Damien O’Connor

undertaking to make resource

consent a requirement for

planting of forests over a certain

area.

He has since confirmed

a resource consent would be

required on forest plantings

on land over 50ha that falls

into the higher quality land use

classification (LUC) of 1-5.

In Bay of Plenty, 25 percent

of the region’s land is

categorised as LUC 1-5. The

remaining three-quarters of the

region’s land falls into categories

LUC 5-8, becoming progressively

poorer in quality.

Given the first three land

classes 1-3 were too expensive

to be planting trees on,

the main LUCs affected by

the consent proposal in Bay of

Plenty are LUC 4 and 5.

Greater impact in the

Bay

The change in consent would

have a relatively greater

impact upon plantings in Bay

of Plenty, which has almost

half its forestry planted on

LUC 4 and 5 land, and would

require a consent if on farm-

I am concerned

government continues

to buy into a belief that

farming should have

priority over forestry. The

two activities are quite

compatible.”– Phil Taylor

land and was to be expanded

over 50ha.

This contrasts with the

national average where about

75 percent of the country’s forestry

estate is on LUC 6 or 7.

Western BoP, Whakatane

and Rotorua collectively

account for one-third of the

560,000ha of forest area

recorded in the Central North

Island, by far the country’s

largest exotic forest growing

region.

Pressure has risen on government

to review the rate

of forestation, despite its

“1 billion trees policy” as

rural groups raise concerns

in regions like Wairarapa and

Hawke’s Bay over land conversions

to forestry.

Farm Forestry Association

Graham West of Rotorua said

the move to curtail property

rights was a concerning one.

“We have run a few field

days on farm forestry in Bay

of Plenty, and the owners are

happy with how they have

combined forestry into their

operations.”

He pointed to the Mossop

family, who were combining

manuka honey production

with pine plantations, as one

example.

Forest Owners Association

president Phil Taylor said

enabling regional councils to

require resource consents for

tree plantations only made forestation

more complicated and

costly.

“By and large, forestry is a

permitted activity on all land

other than highly erodible

country.”

Planting activity can

already be limited on grounds

of fire risk, landscape impact

and water quality issues.

Taylor pointed to some

inadequacies in the government’s

move to cap forestry.

“I am concerned government

continues to buy into

a belief that farming should

have priority over forestry.

The two activities are quite

compatible.”

There was also the issue of

trying to control land-owners’

rights about what they can and

cannot do on their property,

despite claiming to be mindful

of those rights.

Damien O’Connor said the

policy was one for local government

to enact, not an overall

national policy.

While acknowledging the

impact it may have on landowners’

rights, O’Connor said

no one had “absolute” rights

over land and the policy aimed

to protect productive land.

Values could be affected

But Taylor maintains forestry

plantings can increase farm

profits, particularly as landowners

can now receive annualised

payments from year 10

of their plantings for carbon

value.

He also pointed to a relatively

low point in total exotic

forest plantings as an indication

the country was a long

way from being overplanted

in trees.

Phil Taylor

Of 58,000ha of new forest

plantings done in the past

decade 40% was on improved

farm land, but the rest came

from unimproved pasture and

scrub country.

In contrast wholesale conversions

from trees to dairying,

including in Bay of Plenty

and Waikato, totalled almost

40,000ha over the same period.

The total exotic forested

area in New Zealand is also

sitting near a 10-year average

of 1.73 million ha, below the

2003 peak of 1.827 million ha

reported in 2003.

BEWARE OF FOREIGN IMITATIONS.

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

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

realising the full potential of our innovations, particularly

when exporting them.

At James & Wells, we can identify your competitive

edge, offer business strategies for specific markets and

help you own and leverage your intellectual property to

ensure no one steals the fruit of your labour.

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


20 BAY OF PLENTY BUSINESS NEWS January 2021

CONNECTING

BUYERS AND

SELLERS OF

QUALITY

BUSINESSES

First on the scene

The Tauranga Chamber of Commerce’s final BA5 networking event of 2020 was hosted by

Farmer Autovillage at its new MG, HAVAL & GWM showroom.

Photos by Vanessa Laval-Glad from Laval Photo & Video

When is the right time to sell

your business? Right now.

At TABAK, we promise to guide

you through the sales process

with focus, integrity and

complete confidentiality.

1 2

1 Ian Olson, Adrenalin Forest BOP and Matt Cowley, Tauranga Chamber of Commerce. 2 Mike Farmer, Farmer Autovillage

and James Clark, Redco.

FOCUS • INTEGRITY

CONFIDENTIALITY

3 4 6

3 Dave Briscoe, Farmer MG. 4 Ian Stringfellow, Vodafone, Lisa Gilmore, ABC Business Sales and Michelle Triggs, Yoga for

Every Body.

WHY TABAK

INDUSTRY EXPERIENCE

REALISTIC APPRAISALS

5 6

5 Jacqui and Peter Wren-Hilton, Wharf42. 6 Peter McKinlay, McKinlay Douglas and Geoff Williamson, Superior Shelving

Systems.

TEAM APPROACH

PRE-QUALIFIED BUYERS

147 Cameron Road

p. 07 578 6329

e. tauranga@tabak.co.nz

w. tabak.co.nz

P5177Y

7 8

7 Brian Rowney, Results Unlimited and Lyn Trail, Surveying Services. 8 Tim Taylor, Houston Technology and Mark Collins,

n-Gon Group.


January 2021 BAY OF PLENTY BUSINESS NEWS 21

The best use of techspertise

During 2020, new data

and privacy laws came

into play, remote working

exploded, and cybersecurity,

data protection and IT

risks become constant conversation

pieces. Business owners

and operators had to become

IT experts overnight. Nontrained

IT staff in organisations

have also had IT-related

tasks added to their workload.

This may have not been a

new thing, but demands seem

to have increased and expectations

and keeping up the

knowledge can be daunting.

This period of the year has

historically been the time for

new jobs, and changes of roles

and you may face a hole in the

organisation with knowledge

and the “go-to” IT person leaving

for pastures new.

This is a great opportunity

to review what resources are

required and to get the best

bang for your buck. So do you

outsource or hire in house with

specific IT assistance in mind,

or look at a co-managed IT

solution.

Deloitte’s latest Global

Outsourcing Survey found that

57 percent of companies outsource

so that they can better

focus on their core business.

Benefits of IT service

outsourcing

Focusing on your core business

activities and outsourcing

activities like IT has many

potential benefits including:

• Helping create a business

culture where everyone is

focused on achieving the

same goals.

• Increased in-house productivity:

When employees do

not have to worry about

certain IT tasks that they

have little to no experience

with, they are free to focus

solely on their day-to-day

job duties and core business

functions. This can result in

increased employee productivity

as well as reduced

stress associated with having

to perform IT tasks.

• It reduces the amount you

spend on business functions

that don’t directly contribute

to revenue growth. Hiring

and managing in-house

employees requires a sig-

TECH TALK

> BY TONY SNOW

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

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

nificant time investment.

• It’s a cost-effective way

to improve your team’s

efficiency. Outsourcing

enables you to have

an in-house team that

can leverage the support of

outsourced workers. When

having an outsourced IT

department, you can often

cut costs in relation to your

company’s IT requirements

and can provide more

skilled resources for less

money. Spend can be fixed

and budgeted. For example,

having an IT team in-house

can be costly, whereas outsourcing

your IT tasks can

reduce costs in relation to

salary, employee equipment,

benefits and more.

• An Outsource IT department

remains upskilled,

trained and has your best

interests at heart. Most IT

companies have expertise

in several IT areas as

well as special equipment

or technology that allows

them to be more productive

and provide a higher level

of services. Outsourcing

IT tasks can often result in

an increased quality of task

completion compared to

having in-house staff complete

the tasks. Maintenance,

security and updates

get done and disaster recovery

plans can be checked.

There are also reasons

to hire in house

• An employee will have

greater buy-in to your

company.

• Knowledge and skills

developed by working

on your projects is kept

in-house and is available

for later use.

• An employee has greater

familiarity with your organisation,

simply because they

are onsite all the time and,

depending on your IT company

arrangements, you

have greater cost control.

• It prevents doubling up of

work efforts, which can

happen in communication

from your employees to a

third party.

• Data sensitivity and size of

company. Are you comfortable

an outside party may

have operational control

over certain business functions

and potential access

to sensitive information?

Many IT services require

that you provide sensitive

information pertaining to

your business’s security

and data, so you should

also get a clear idea of how

the IT resource – either in

house or externally – will

protect your information.

A co-managed IT situation

is also popular where an

in-house champion looks after

either strategy and longterm

plans where an outsource IT

department looks after the dayto-day

operational aspects. Or

vice versa.

With the right agreement

in place with an outsource IT

department, which deals with

hundreds of different business

environments, getting up to

speed and having best practices

can be implemented easily

and effectively.

I recommend that you

weigh up over the break the

pros and cons of outsourcing

vs employing for specific

requirements, and stay safe

this summer.

A year in reflection

By all accounts this past year has not been a typical one for

anyone in NZ and that is certainly no different in the industries I

work in. I thought I would take this opportunity to reflect back on

the past 12 months and recount just one of our more memorable

jobs (on the advice of our lawyer we have slightly changed some

details to protect privacy).

CREDIT CONTROL

> BY NICK KERR

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

He is also a director of International Private Investigations Ltd.

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

In the investigations and

repossession industry you

don’t often get seen as the

good guy by all parties in the

situation. But over the past

year we have partnered with a

nationwide estate management

company that gives us the

chance to give good news to

those who we come in contact

with and please our clients just

the same.

A few months ago we were

contacted by an estate manager

who had tried all avenues

to locate the beneficiary of a

large estate.

The estate manager knew

the beneficiary’s gender and

first name and that was it. No

date of birth, no surname and

no next-of-kin details. “We

know we are asking you to do

the impossible and have no

Over the past year we have partnered with

a nationwide estate management company

that gives us the chance to give good news

to those who we come in contact with and

please our clients just the same.”

expectations of you being able

to do this,” the estate managers

told us.

Our initial research was

to do an analysis on the first

name to see how common it

was. In this case there were

approximately 11,000 people

worldwide with the same first

name. The highest concentrations

of this name were Mexico,

Hawaii, Samoa, Tonga and

Niue, with some in New Zealand

and Australia.

We had some intel that the

beneficiary travelled in and out

on New Zealand frequently so

working on that assumption we

looked at countries which are

New Zealand territories or had

a reciprocal agreement allowing

for visa free travel starting

with the Pacific Islands.

We got in touch with the

community leaders in these

countries and after a couple

of weeks got the break we

needed, made a few phone

calls, verified the information

then presented the estate manager

with the beneficiary’s full

legal name, address, email

address, phone number and

photo ID.

As you can imagine, they

were very happy with the service

as was the beneficiary,

who had no idea any inheritance

was due at all.

In a job where you mainly

get sent out to confront people

or discover nefarious activity,

and you see people at their

lowest ebb – whether in the

grips of addiction, a downward

cycle of depression or actively

involved in criminal and harmful

activities – it makes a really

refreshing change to be an

instrumental part of a real positive

change in someone’s life.

In addition to the above

example, some numbers we’ve

achieved in the last year have

included:

• 280 successful repossessions

out of a total of

290 repossession orders

received.

• Four major fraud/ commercial

espionage cases investigated,

and $4.5 million

worth of loss prevented.

• 85 “unfindable” debtors

located out of 88 requests

received.

• More than $2 million worth

of liquidation loss avoided

for 40 credit management

clients.

And that is in addition to

my other work of setting up

100 best practice credit management

systems for local

businesses to prevent debt and

liquidation losses.

All in all, it has been a

great year for business and I

would like to thank all of our

clients that have trusted us,

the suppliers that we have had

the pleasure to work with, and

the readers that have read my

ramblings and given me some

wonderful feedback.

Best wishes from me and

my team for a profitable,

rewarding – and above all

enjoyable 2021.


22 BAY OF PLENTY BUSINESS NEWS January 2021

Why focusing on existing customers is

smart business

Picking up new business takes time and investment. Yet many

business owners make it their focus, sometimes at the expense of

servicing their existing customer base.

As we head into 2021 and

reflect on the year that

has been, many of us

will no doubt be thankful for

the support of our long-term

customers. For a lot of Bay of

Plenty businesses, it’s repeat

business that has got them

through.

So why not make them

your focus in the New Year?

Not only is it the right thing to

do, but you will often get a better

return on investment when

pitching to people who already

know your products and the

great service you provide.

Here are a few ideas to keep

your customers engaged and

to help ensure you stay at the

forefront of their minds.

Send a token of

appreciation

Sure, it’s old school, but a

personal message and a token

of appreciation still go a long

way. Your may have forgotten

to send a Christmas card

and gift, but that doesn’t mean

you’ve missed the chance to

say thanks. In fact, a token of

appreciation that falls outside

of a traditional “gift-giving

window” can feel more genuine.

Why not launch the New

Year by reaching out to clients

and showing you care?

Get active on social

media

Social media can be a useful

way to keep your regular customers

in the loop. It can be an

avenue for informal updates,

an opportunity to reward existing

customers, or a chance to

provide customers with critical

information.

Existing customers are

your most important audience

on social media as they are the

ones that often turn into your

biggest champions, telling the

world what you can offer.

Don’t forget to respond to

their comments and engage

in a way that is personable,

in line with your brand, and

won’t come across as robotic.

New Zealand takeaway

chain BurgerFuel does it well,

and now has an audience of

more than 300,000 followers.

They have created a social

media identity that people connect

with, coupled with regular

competitions and special

offers.

Keep in touch using

e-newsletters

Email newsletters are far from

dead. They still result in a better

return on investment than

many other marketing channels.

But people are facing

an ever-increasing barrage of

email marketing campaigns,

so it’s critical yours stands out

from the crowd.

Your main consideration

should always be what matters

to the reader – if you add value

through articles they care

about and special offers they

will benefit from, your audience

will grow and people will

keep reading every time you

click send.

Don’t leave customers

out of special deals

Sales and special deals can be

a good way to move stock, or

to launch a new product. But

how often do you see deals that

are only available to new customers?

It might be a month

free on a Sky TV package for

new sign-ups, or 10 percent

off a cut and colour at a local

hairdresser for new customers

only. Too often these kinds of

deals leave existing customers

feeling undervalued.

It might not result in immediate

revenue, but I guarantee

that if you provide some

unexpected sales and benefits

to existing customers, your

chance of retaining them longterm

will drastically increase.

Keep in mind that if something

hasn’t been selling it

won’t suddenly move just

because you put it on sale –

you still need to couple your

discount with a strong message

that communicates why people

should care about the product

or service you’re offering.

Make follow-up calls

THE LAST WORD

> BY JAMES HEFFIELD

Director of Bay of Plenty marketing and PR consultancy Last

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

james@lastwordmedia.co.nz.

As a customer, it can sometimes

feel like businesses are

trying to take your money and

run. That first sale or business

transaction sometimes feels

like a one-night stand, rather

than the start of a beautiful

relationship.

Make sure to send emails

and make follow-up calls to

check people are happy. Listen

to their feedback. It can be a

great way to build a relationship,

and it can also help you

discover things about your

business that you may not have

noticed from the inside.

Is there anything you have

found has worked particularly

well to keep existing customers

engaged?

If so, I’d love to hear it

– drop me an email at the

address mentioned at the start

of this article.

Time to relax, restore and reassess

It has been an unusual year with many unforeseen challenges

to mitigate. People are tired, stressed and more than ever in

need of a break. And with the end of the year, comes a time to

rejuvenate. The holiday season is perfect for reassessing and

re-evaluating what we’re doing and pressing the reset button for

the coming year.

HUMAN RESOURCES

> BY KELLIE HAMLETT

Kellie Hamlett is Director and Recruitment & HR Specialist, Talent

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

Reflecting on the year,

there have been several

life lessons to come out

of the lockdowns and having

to deal with the uncertainty

around us. People have chosen

to re-train for new careers,

they have enjoyed the flexibility

of working from home, and

enjoyed spending more time

with family and friends.

We have all learnt to be

more grateful for what we

have. The beginning of the

year is a great time to reflect

on the past. But it’s also an

excellent time to think about

what you’d like to achieve in

the coming 12 months.

Let’s call it your own Personal

Annual Review. Here’s

an outline of a few key points

that could form part of this personal

review:

1. Make a list of things

you are grateful for

Be sure to include the things

you appreciate and want to

give thanks for. This can

include friends and family,

partner, work, colleagues,

health, home, your motivation

and success – the list goes on.

For our business we have

so much to be grateful for,

having supportive clients and

candidates within our community

is one. It is something that

we never forget, because great

vision without great people is

irrelevant.

2. Create a list of your

successes

Thinking back through the

year that has been, note down

successes and achievements.

It’s always good to look back

and evaluate how you started

the year and see how far you

have come. Successes can be

small or large – they are all

relevant.

For us, recruitment can

bring highs and lows. It can be

easy to feel uninspired when

things do not go to plan, but it

is important to remember the

little successes along with the

big, such as putting a smile on

a candidate’s face when you’ve

helped them to secure their

new dream job.

3. Develop a plan

This may or may not be

something you already have,

and let’s face it, life does not

always go to plan – especially

this year. There are always

going to be bumps in the road,

but having a plan is always a

good start.

What do you want to

achieve within the different

facets of your life? e.g. regarding

family, friends, health,

financial, spirituality, community,

career, hobbies, etc.

We always encourage our

candidates to think about what

they want their career to look

like five-to-10 years down the

track. What are the key incremental

steps that need to be

taken to achieve that goal.

Each step of the way, it’s helpful

to evaluate and review – is

this helping me to reach my

goal?

4. Establish your goals

For each life area, create a

specific goal in the form of a

desire that will contribute to

achieving your ultimate satisfaction

level – e.g. I want to be

mortgage-free by December

2022.

Make your goal specific.

If you want to attain new levels

in your life, you need to

extend yourself in some way

– whether it’s learning a new

skill, re-training for a new

career, or working smarter.

At Talent ID, one of our

goals is that whenever we

spend time with a candidate

or client, we like to give them

a positive takeaway from meeting

with us. Every candidate is

an individual and has something

of value to offer in terms

of their skills.


January 2021 BAY OF PLENTY BUSINESS NEWS 23

Steve Ellingford, Bayfair Centre Manager

The Bayfair Redevelopment saw 11,000m²

added to the Mount Maunganui shopping

centre, including a supermarket, a bigger

retail precinct, alfresco dining, a new cinema

complex and parking.

The 3-year project, begun in 2017, and was

undertaken while the existing shopping

centre remained fully operational.

Centre Manager Steve Ellingford says they

chose Foster Construction for the job because

of their ‘can do attitude’ and customerfocused

culture, which was a good fit with

their values.

“Fosters were great” says Steve. “Their

practical expertise was invaluable during

the design process, helping us to manage

construction costs.

“Once underway, there was a lot of pressure.

Timeframes for each stage of the project

were hellishly tight, while public safety and

ensuring our retailers could continue trading

were critical factors in the overall success of

this project.”

Much of the resources and subcontracting

work was delivered by Bay of Plenty

businesses, ensuring local engagement in

creating the new community hub. For Fosters,

this is key in any project.

“The Foster team worked with each delivery

timeframe in mind, pulling out all the stops to

get the job done” continues Steve.

“This project was successful because Fosters

can manage the complexities of a project

this size and deliver a high-quality product. I

would certainly work with them again.”

FOSTERS.CO.NZ . 07 570 6000


24 BAY OF PLENTY BUSINESS NEWS January 2021

More magazines by this user
Similar magazines