October 2021 - Bay of Plenty Business News

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

October/November 2021 BAY OF PLENTY BUSINESS NEWS 1

OCTOBER/NOVEMBER 2021 VOLUME 5: ISSUE 10

WWW.BOPBUSINESSNEWS.CO.NZ

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FARMER

AUTOVILLAGE

DRIVING INTO

THE FUTURE SEE PAGES 6-9

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October/November 2021 BAY OF PLENTY BUSINESS NEWS 3

Whakatane’s new Marine Precinct

going through funding process

Whakatane’s ambitious project to create a new boat

harbour on the Whakatane River has been advancing

its investigative works in preparation for filing its

resource consent application in the next month or so.

By DAVID PORTER

Despite the elimination from

parliament of Shane Jones,

his leader Winston Peters and

their party at the last election, the

party’s Provincial Growth Fund commitment

under the name of the new

government entity known as Kānoa

continues as a partner with Council

and local iwi to fund what will likely

become the first iwi/Māori owned

marina facility in New Zealand.

Phil Wardale, who was responsible

for pulling together Tauranga’s

Marine Precinct, took up the Project

Director’s role in Whakatane with his

team to advise and deliver the project.

The yet-to-be-named Boat Harbour

will be located adjacent to the river,

on 10 ha of Māori owned land that has

been unproductive for decades. Bay

of Plenty Business News profiled the

project in the July/August issue.

“The aim was to deliver more

commercial berthage, and other much

needed marine infrastructure,” Wardale

told BOP Business News.

Maori land contribution

“When we first got involved, the idea

was to try and get more berths alongside

the river in town. But we ended

up identifying a much larger plot of

Māori land up the river.”

Of the funding, $19.6 million

has been provided by the Provincial

Growth Fund for the build of the boat

harbour, and $9.8 million is being

contributed by Whakatane District

Council. Wardale described the project

as a “transformational partnership”

between the Te Rāhui Lands

Trust, the Crown, Ngāti Awa Group

Holdings Limited, and the Whakatāne

District Council. There are currently

more than 1000 beneficial owners of

the Māori land block.

Wardale told BOP Business News

that the project partners had yet

to announce the name of the Boat

Harbour, or the final makeup of the

transformation partnership, which is

scheduled to be announced during

community conversations ahead of

the filing of the resource consent

application in October.

“The first big task is to secure the

resource consent for the development

and we have been underway with

the investigative works and drafting

of the consent application for all

of 2021, and once the partnership is

formally announced we will file the

application.”

Artist’s impression of proposed new waterfront development in Whakatane. Image/ supplied.

Wardale, who has been trapped

in Auckland while the latest lockdown

was on, noted that even in his

original programme he had not been

expecting major construction works

would commence before the end of

2021.

He said he looked forward to

returning to Whakatane and engaging

with the community on the final plans

ahead of starting the process to source

and select the civil works contractor

to build the $25 million project.

“Government and its many

regional and national agencies have

been very supportive to date,” he said,

adding that usually when government

commits to contribute to something

there weren’t too many holdups.

Wardale told BOP Business

News previously that the new boat

harbour would provide commercial

boat operators and boat builders such

as Extreme Boats on the East Coast

with access to new facilities and new

modern out of river berths, while

increasing economic returns and

providing opportunities for the local

community.

The Provincial Growth Fund had

been all about helping regions grow,

and this was a perfect example he

said.

Wardale said his company and

team was busy across the country

despite the lockdowns, with a large

project in Wellington, two projects

in Nelson and a PGF project in Wanganui

that was similar in size and

complexity to Whakatane.

“We’re not sitting on our hands

and are busy working with local government

to plan or deliver new waterfront

infrastructure in several towns

and cities across the country.”

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4 BAY OF PLENTY BUSINESS NEWS October/November 2021

www.bopbusinessnews.co.nz

CONTACT INFORMATION

PUBLISHER

Alan Neben

Ph: 021 733 536

Email: alan@bopbusinessnews.co.nz

EDITOR

David Porter

Mob: 021 884 858

Email: david@bopbusinessnews.co.nz

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From the editor

The current furore over our neighbour’s decision to opt for USbacked

technology for its new submarine fleet has brought to mind

how lucky in some ways we are in New Zealand.

For many of the journalists

who reported on David

Lange’s final trip though

Asia back in the day, there

was always a suspicion that,

although he was a very bright

and often extremely funny

man who spent one third of his

life in parliament, politics did

not always seem at the front of

his mind.

Notwithstanding that,

former Labour leader Helen

Clark has praised his success

in helping create a nuclear-free

New Zealand. And

that status has to some extent

isolated New Zealand from

major fallout from the current

wrangle between France and

Australia.

The Australia, New

Zealand, US Security

Treaty (ANZUS) is the 1951

military agreement on the

Pacific Ocean region. It provides

that an armed attack on

any of the three parties would

be dangerous to the others.

New Zealand was suspended

from ANZUS in 1986

when it initiated a nuclear-free

zone in its territorial waters

during Lange’s term.

We eventually lifted a ban

on visits by US warships in

2012, leading to a thawing

in tensions, but New Zealand

remains partly suspended

from ANZUS, especially since

the US maintains an ambiguous

policy on whether or not

its warships are nuclear.

However, ANZUS has been

overshadowed by AUKUS, a

trilateral pact between Australia,

the UK and US. And,

contributing to the current

furore, it involves cooperation

in nuclear submarines, which

is for New Zealand, a no-go

area.

Dealing with global

trade partners

As we know, China is New

Zealand’s biggest global trading

partner. But sometimes

little appreciated is the fact

that the Asian giant– which

undoubtedly has expansionist

aspirations in the Asia Pacific

– is also Australia’s biggest

trading partner in terms of

both imports and exports.

Australia is China’s

sixth-largest trading partner;

it is China’s fifth-biggest supplier

of imports and its 10-biggest

customer for exports,

according to recent reports.

Twenty-five per cent of Australia’s

manufactured imports

come from China; 13 percent

of its exports are thermal coal

to China.

And as Geoffrey Miller,

an international analyst at the

Democracy Project in New

Zealand, recently put it: Australia

and New Zealand, “are

poles apart in terms of the way

they see the world... I think

this alliance underlines that

they’re going in very different

directions”.

For despite France’s wailing

and recalling of ambassadors

in protest, and its calls

for compensation, the reality

is that Australia has been trying

to ease its way out of its

French diesel submarine deal

for some time because of cost

blowouts and delays.

As US site Politico put

it recently, although French

Foreign minister Jean-Yves

Le Drian has described the

called-off estimated $50 billion-plus

deal “a stab in the

back”, they could have seen it

coming.

Canberra signalled in June

it was looking for a way out

of the contract, signed in 2016

with French company DCNS

(now known as Naval Group)

to build Barracuda diesel

submarines.

Australia’s Defense Secretary

Greg Moriarty said: “It

became clear to me we were

having challenges ... over the

last 15 to 12 months.”

He said his government had

been considering its options,

including what it could do if it

was “unable to proceed” with

the French deal.

Trouble began brewing

almost immediately after

Canberra chose the French

bid ahead of alternate designs

from Germany and Japan in

David Porter

April 2016, according to Politico,

when DCNS admitted it

had been hacked. Australia

urgently needs the subs to

replace some of its own aging

fleet, but realised they were

unlikely to be ready in time.

And a promise of thousands

of Australian jobs and

a boon for local industry has

also faded.

What seems clear is that,

while France is directing its

public ire at Australia, it is

probably even more aggrieved

at the US.

Canberra has loudly maintained

that it has previously

communicated their issues

about the French vessels.

China’s Asia Pacific neighbours

have been vociferous in

complaining about the mainland’s

tendency to extend its

reach ever-further into their

territory.

What remains unclear is

just how China will respond

to Australia’s latest nuclear

move.

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

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print media services.

Councils now own drinking

water, wastewater and

stormwater assets, directly

or indirectly. That will change.

Only iwi/Maori will have ownership

rights. Directly in some respects,

indirectly in others. Local authorities

will have none.” – Mike Judd, QC

Three Waters – ideological

government indulging sectional

political constituency – p18

The Government’s Three Waters Reform

proposal aims to ensure that all New

Zealand communities have safe and

sustainable drinking water supplies,

wastewater reticulation, treatment

and disposal systems and stormwater

services.” – Anne Tolley,

Tauranga Commission chair

Commissioners’

Three Waters reform

proposal – p15

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October/November 2021 BAY OF PLENTY BUSINESS NEWS 5

Global share markets

continue to hit new highs

Investment market update (for the quarter ended 31 August, 2021)

The majority of global

share markets have continued

to climb higher,

with many sitting at or near

record highs. Markets have

been driven higher by a combination

of:

• Companies generally delivering

better-than-expected

earnings results benefiting

from a combination

of improving economic

activity and significant cost

savings.

• Central banks and governments

remaining committed

to “loose” policy settings,

including ultra-low interest

rates, which continue

to underpin very healthy

growth in economic activity,

and support demand for

higher risk-return investments

such as stocks.

• Vaccine roll-outs in Europe

and the United States

boosting hopes that rising

cases of the Covid-19 delta

variant will not lead to further

lockdowns. Vaccines

have proved effective in

substantially reducing the

proportion of people who

catch the virus getting seriously

ill.

New Zealand market

bounces despite Covid

lockdowns

Some may be surprised the

strong performance has come

at a time when we’ve been hit

with the first Covid-19 community

outbreak in six months,

and the whole country has

been thrown back into lockdown.

Lockdowns will impact

economically exposed sectors

and companies.

The good news for investors,

however, is the New

Zealand market is dominated

by defensive companies in

sectors like healthcare, utilities,

telecommunications, and

consumer staples. The earnings

of these companies are

less affected by the economic

environment.

The silver lining of the

outbreak is that it’s been the

wake-up call for many New

Zealanders to get vaccinated.

We no longer hold the inauspicious

title of being the least

vaccinated country in the

Organisation for Economic

Co-operation and Development

(OECD). This time

round, New Zealand had no

real choice around how to

respond to the Covid-19 outbreak

— zero tolerance with

strict lockdowns. Widespread

vaccinations are the only way

to provide countries with

broader choices about how to

manage Covid-19 in the future.

Interest rate rises are

coming

The Covid outbreak caused

an about-turn decision by The

Reserve Bank of New Zealand

(RBNZ) to hold off raising

interest rates. But this is likely

to be only temporary.

The New Zealand economy

is facing pent-up demand and

capacity constraints — the

housing shortage being the

most obvious example — from

the tidal wave of migrants over

the last eight years. In recent

years, that same migration kept

a lid on wages.

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.

But now, with borders

shut, capacity pressures are

biting and inflation risks are

rising. Furthermore, unlike

other countries, New Zealanders

have been breaking

out the credit cards. Much of

our strong economy is being

funded by rising household

debt for which we’ll eventually

face a cost. The market

is pricing that the first rate

hike will most likely come at

the next RBNZ meeting on 6

October.

This time round, New Zealand

had no real choice around

how to respond to the Covid-

19 outbreak — zero tolerance

with strict lockdowns.

Invest locally and

globally

Over the past decade or so

a home market bias to New

Zealand would have been very

beneficial. Our high dividend

yielding market has been one

of the top performers globally.

A large part of this return

has been from investors’ willingness

to pay a higher price

for the income generated by

businesses in sectors such as

utilities, telecommunications,

and property. We believe the

shift in the direction of interest

rates means this benefit is now

likely at an end.

That isn’t to say you should

throw the baby out with the

bathwater. There are still

high-quality companies in

New Zealand we are happy to

remain invested in. But, it does

mean having adequate diversification

(always a mainstay

of any investment plan) across

markets and sectors may prove

even more important than

usual. As always, whether

regarding adequate diversification

or any other questions

you may have, your Forsyth

Barr Investment Adviser is

available to discuss your

investment plans at any time.

This column is general in

nature and does not take any of

your personal circumstances

into account. For personalised

financial advice, contact Forsyth

Barr for an overview of

the services we can provide.

NEWSBRIEF

Dr Matt Glenn

named inaugural

Kiwifruit Breeding

Centre CEO

The Board of the

newly established

Kiwifruit Breeding

Centre is delighted

to announce the

appointment of

Dr Matt Glenn as

its inaugural Chief

Executive Officer.

The Kiwifruit Breeding

Centre is a

50/50 joint venture

between Plant & Food

Research and Zespri. It has

been established to drive

greater innovation within

kiwifruit breeding, and to

create healthier, better tasting

and more sustainability-focused

varieties.

Kiwifruit Breeding

Centre Chairman Michael

Ahie says the appointment

of Dr Glenn followed

an extensive recruitment

search, and the Board is

pleased to secure a candidate

with such strong

leadership qualities and

experience.

“Dr Glenn really

impressed the Board not

only with his experience

but also his vision for how

the Kiwifruit Breeding

Centre can lead the world

in kiwifruit breeding,” says

Mr Ahie.

“We know Dr Glenn

also brings strong leadership

from the roles he’s

held previously, which

include executive and leadership

roles at Hill Laboratories,

Robotics Plus and

Quayside Holdings - the

commercial investment

arm of the Bay of Plenty

Regional Council.

“We’re really looking

forward to working with

Dr Glenn, and to beginning

work at the Kiwifruit

Breeding Centre on 1

October.”

Dr Matt Glenn

Based in the Bay of

Plenty, Dr Glenn’s strong

background in science,

technology and business

management will support

the Kiwifruit Breeding

Centre as it accelerates

Zespri and Plant & Food

Research’s world-leading

new cultivar development

programme.

“I’m thrilled to join the

Kiwifruit Breeding Centre

and I’m looking forward to

working with exceptional

talent to accelerate New

Zealand’s kiwifruit breeding

success.

“We have a great opportunity

to add to the history

of innovation the industry

is known for, and help contribute

to the growth of the

kiwifruit industry within

New Zealand and to the

value we create for New

Zealand.

“We’ve seen how

the latest red variety has

encouraged new customers

to try kiwifruit, and

we’re looking forward to

continuing to explore other

new varieties in the years

ahead,” says Dr Glenn.


6 farmerautovillage.co.nz

BAY OF PLENTY BUSINESS NEWS October/November 2021


October/November 2021 BAY OF PLENTY BUSINESS NEWS 7

FARMER AUTOVILLAGE

CELEBRATING 30 YEARS

OF EXCELLENCE

From small beginnings 30 years ago across the harbour on the corner of Elizabeth Street and

Cameron Road, Farmer Autovillage has become a distinctive landmark, and the first stop for

many motorists seeking a quality vehicle, backed by award winning service.

Back in 1991 when Peter Farmer first put

up their Bay Nissan sign with a team

of 12 in a city less than half the size of

today’s, vehicle choices were a far cry from

today’s options.

SUVs were unheard of and there were still

plenty of British based models on the road.

European cars were exotic machines more

common in the movies than on the roads.

But it was from those small beginnings

today’s Farmer Autovillage sprung, to cover

today’s full city block, employing a team of

170, retailing 13 quality vehicle brands with

600 vehicles under the one roof.

It only took two short years before Bay Nissan

started a trend that continues to this day,

collecting national dealership recognition by

winning the Nissan Dealer of the Year award.

It was an award the business went on to collect

seven more times on a most popular brand

range.

Since taking over as group managing

director in 2004 and over the next 10 years

purchasing the majority shareholding, Mike

Farmer can point proudly to multiple awards

for service, performance and excellence across

the entire brand range that have made Farmer

Autovillage one of the most respected dealerships

in the Southern Hemisphere.

The company has been an innovator from

the start, including pioneering open weekends

and a family friendly approach when looking

at new cars to make car buying, or even just

looking, something of a weekend activity.

The state-of-the-art Hewlett’s Road premises

have also ensured a visit, whether for a

service or a new vehicle, continues the group’s

belief any visit should be an experience to

enjoy.

“From those small beginnings 30 years ago,

we have worked hard to retain values instilled

in the business – ensuring we have a team of

committed people who genuinely want to make

their customers’ vehicle experience the most

enjoyable possible, delivering an exceptionally

high level of standard with integrity.

“That approach has served us well as we

have grown through the years. We are particularly

proud to have achieved this right here in

Tauranga.

“I am convinced the next 30 years will bring

even more change, more quickly than we have

had as vehicle technology evolves and customers’

expectations with that – we are well positioned

to meet those changes and deliver what

our customers expect.”

ONE OF THE COUNTRY’S

MOST AWARDED DEALER GROUPS

When it comes to displaying all the awards won

by Farmer Autovillage and its team, there

would not be enough wall space to hang them

all.

The company’s success in claiming national awards

stems back over two decades, when the team claimed

the Nissan Dealer of the Year award eight times after

they opened the dealership on Cameron Road.

The Dealer of the Year Awards are held each year

to recognise outstanding achievements in sales, parts,

finance, service, marketing and customer satisfaction

across dealerships nationwide.

Farmer Autovillage’s growth along with the fantastic

feedback received from so many customers over the

years are just a few testaments of this team’s dedication

to excellence and customer care. The raft of awards

Farmer Autovillage has received reinforces it further.

For the 2020 award season, the coveted Dealer of

the Year award was claimed by Farmer Autovillage for

Audi, Jeep, Volkswagen Commercial, Volkswagen Passenger,

and Volkswagen overall, all accompanied by a

Nissan Dealer Excellence award and twenty individual

awards.

Being named New Zealand Dealer of the Year highlights

the team’s goals to achieve the absolute highest

level of service and professionalism within all aspects

of the business.

“For Audi, we have won Dealer of the Year for the

second year running. This is a well-deserved reward for

our extremely hard-working and close-knit team,” say

Blair Woolford, Dealer Principal.

“I am especially proud of how the team keep proving

that treating customers with respect and integrity

is critical to ensuring ongoing relationships with the

business.”


farmerautovillage.co.nz

8 BAY OF PLENTY BUSINESS NEWS October/November 2021

IT TAKES A VILLAGE.

DRIVING SUPPORT FOR THE

COMMUNITY

Numerous charities and groups including

Tauranga Foodbank, Waipuna

Hospice, Breast Cancer Bay of

Plenty, Homes of Hope, Tauranga Ladies

Luncheon, A Night Before Christmas,

Tauranga Garden & Arts Festival, Water

Skills for Life Plus, The Kollective, Sweet

Louise, Tauranga Boys Collage Rugby,

Tauranga Riding for the Disabled, A Night

Before Christmas, Bay of Plenty Rugby

Union, local surf clubs, bowling clubs and

the Pāpāmoa flag pole project have all

enjoyed the support and encouragement of

Farmer Autovillage over the years.

Farmer Autovillage has helped local

causes become more mobile, and able to

reach out to the people they are supporting.

For many charities the need for a vehicle

may only be for a short time.

Farmer Autovillage has long and strong

ties to Tauranga, and are acutely aware of

the hard work done, usually by volunteers,

to keep these charities going. Supporting

the community has been a key way the team

and business are able to give back.

“We are approached for sponsorship on

a regular basis. It’s humbling to meet and

work with fantastic volunteers and groups

who are working hard to help drive the

community.

“The loan vehicles or events that we

support are always anchored in bringing

benefit to as many as possible.”

“This year we committed our Volkswagen

Crafter van for community use. It was

able to be booked for short local loans free

of charge. With 12 seats and large cargo

space, it was the perfect solution for the

local clubs who loaned the van. It provided

a very safe and modern way of transport,”

says Samantha Hedifen, Group Marketing

Manager.

Farmer Autovillage recently renewed

its commitment to Movember, the men’s

health awareness month by providing a

Nissan Navara, complete with Movember

labelling to proudly raise the profile of an

important health issue throughout New

Zealand.

Movember Foundation New Zealand

Manager Robert Dunne says “Since 2019

Movember is extremely excited to partner

with Farmer Autovillage. We are known by

the quality of the people and organisations

we work with and Farmer Autovillage is a

renowned and trusted name in the Bay of

Plenty.”

Four years’ ago after a break-in at the

Waipuna Trust depot resulting in the Trust’s

van being stolen, Farmer Autovillage

stepped in to supply the trust with a vital

set of wheels.

“Helping out with a van was the least

we could do, the Trust’s work is invaluable

for people here in the Bay of Plenty,” says

Mike Farmer.

Farmer Autovillage’s latest brand

additions, Haval and MG have also most

recently been seen around town, with MG

HS powering the team from Tauranga

Chamber of Commerce and a Haval H2

completing the Hot Pink Walk for cancer

fundraising and Garden & Arts Festival.


October/November 2021 BAY OF PLENTY BUSINESS NEWS 9

FARMER AUTOVILLAGE

EYES EXCITING FUTURE

Rapidly developing car technology, electric

vehicles, changing purchasing habits

and expanding brand choices make

for an exciting future for the team and customers

at Farmer Autovillage. The team are

eagerly anticipating the re-development of the

Autovillage’s central showroom hub, scheduled

to be completed by early 2022.

This includes a stunning new café area,

business lounge and offices, alongside an

extended Škoda showroom area, a key brand

now utilised by the New Zealand police force.

“Our café, business lounge and complimentary

courtesy options are some of the

fantastic benefits when visiting Farmer Autovillage.

The designs and construction will

create a beautiful modern area to relax or use

as a base to work from, while enjoying a coffee

from our café. We can’t wait to welcome

everyone to the new hub,” says Melissa Smith,

Group Operations Manager.

Today’s customers are far more informed

and knowledgeable when they step onto the

showroom floor, having done much homework

on-line before even forming an opinion

on what car to buy, and often visiting with a

shortlist.

“We have responded to this by also ensuring

our sales team are very good at working

alongside the customers, more of an advisor

than sales-person, highlighting the key differences

and similarities between the vehicles

they may be considering and what will best

suit their requirements,” says Warren Carter,

Group General Manager.

The company has also strived in recent

years to offer services beyond a simple vehicle

purchase, incorporating a “one stop shop”

approach for all clients’ automotive needs

with total vehicle care services.

These includes servicing, parts, accessories,

roof racks, windscreen repairs and

replacements, a wheel and tyre centre and a

brand-new paint and alloy wheel repair centre.

All ensure customers’ vehicles can be

tended to quickly and professionally with

minimal delay before getting back on the road

– an onsite carwash ensures every customer’s

vehicle looks their best heading home.

“This year we opened a wheel repair centre

as a new and additional service to our total

vehicle care solution. Our wheel expert Tyler

is able to repair kerb damaged wheels with

complete precision using the latest diamond

cut technology from Europe. This service is

already proving to be popular and convenient

for our customers,” says Bevan Sheppard,

Group Service Manager.

Always aware of evolving needs in the

motoring sector, the company has also identified

the need for a trades part centre servicing

trade centres around New Zealand.

“Our trade parts centre has grown quickly

from its original team of three in 2013, to seven

specialists and nine warehouse team members

providing genuine parts for 17 brands, all from

a new purpose equipped warehousing-distribution

centre. We offer nationwide delivery

and a dedicated phone line, which are some

of the many benefits for our trade customers”

says Mark Ferguson, Group Parts Manager.

Further up the coast at Whitianga, locals

are now able to enjoy the service and choices

offered in Tauranga, thanks to Farmer Autovillage

recently establishing a base in the Coromandel

township.

A long relationship with the previous owners

of SubLab prompted the move. It has provided

the base to offer not only an authorised

service centre for many brands but also offers

a selection of the vehicles that have been

offered in Tauranga.

CHARGING AHEAD

Just as the Autovillage premises have

evolved, so too are the vehicles

offered to Autovillage customers.

Mike Farmer says electric vehicles are

among the most asked about new technologies,

one he believes will expand quickly

in the coming few years.

“We are getting more enquiry than

ever about EVs, but I suspect it will be

about five years before they really take

off. Meantime we are very well positioned

with a range of quality vehicles to meet

that need, some that will also qualify for

the EV grant recently offered.”

These include the entry point MG ZS

EV, Nissan with its new generation LEAF,

through to Audi’s eye catching premium

EVs including the Audi e-tron, in both GT

quattro and RS GT variants.

Recognising the rise in EVs, Farmer

Autovillage was the first to provide the

only 175kW DC charging station in the

Bay of Plenty. Open 24/7, the station

slices many minutes off the conventional

50kW charging units found in the city, and

is easily activated through the ChargeNet

EV app.

The past 13 years since opening the

Hewlett’s Road centre have been exciting

and evolving for Farmer Autovillage.

Mike Farmer says he and his team are

already gearing up for the future where

those changes are only likely to come even

quicker, in an industry facing massive

changes.

“It is likely to be an exceptional period

of change, but we have proven to ourselves,

our customers and the industry

we are well positioned to manage those

changes.

“As we do, one thing won’t change and

that is our absolute commitment to our

customers and our community, providing

the best in service and brands, nothing is

ever a problem at Farmer Autovillage,”

says Mike.


10 BAY OF PLENTY BUSINESS NEWS October/November 2021

Something new or

something familiar?

SPECIAL

FOCUS

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

To have a successful franchised hair salon

does not necessarily require you to be a

trained hair stylist, you would, however,

require good business management skills

With over 600 systems

covering just about

every conceivable

business service and function,

choosing a franchise business

can be a daunting task for most

people.

A common approach has

been for potential franchisee

entrepreneurs to create their

short-list based on an industry

or category that interests them,

or which they believe will provide

them the financial returns

and lifestyle they desire.

There is nothing wrong

with this approach and it is a

good start, as enjoying what

you do so very important. One

of the main drivers as to why

people do what they do is how

does it make them feel?

Owning your own franchise

business is after all not just

another job, it’s an extension

of you and the lifestyle you

have chosen to enjoy.

The past 18 months or so

has seen a greater focus on this

and it will continue on as we

move forward in a world with

Covid.

If you are reading this, then

you probably have an interest

in exploring franchising and

perhaps have started thinking

about what might suit you and

your lifestyle. As you start

down this path there are a couple

of preliminary questions to

consider:

• What do you enjoy doing

about what you are currently

doing and on the flipside

what do you not enjoy

in what you are currently

doing? Many people fail

to delve down into this and

find it difficult to pinpoint

but it is an important area to

cover off.

• What current skillset do

you have? You might have

a qualification in a specific

area – is this relevant to

what makes you happy? Do

you enjoy the work associated

with your qualification?

So, perhaps the fact

that you have a qualification

demonstrates that you

are coachable, trainable,

and tenacious to see things

through. Are you brave

enough to try something

new utilising the core skills

you already have? What

transferable skills do you

have ie are you a person

who thrives on customer

interaction, managing people,

or are you a dab hand at

working with tools?

• Do you enjoy the outdoors

or prefer to work in an

office type environment?

• Are you someone who

needs variety in their work,

or do you prefer to have a

set routine?

Enjoying what you do is so

very important, having the precise

skillset for a specific franchise

business is less important

as long as you have transferable

skills.

For example, to have a successful

franchised hair salon

does not necessarily require

you to be a trained hair stylist,

you would, however, require

good business management

skills as at the end of the day

you are responsible for the

growth and success of the

business overall not just cutting

hair.

Being coachable and able to

follow a system is fundamental,

enjoying what you actually

do day to day is critical.

Everyone has a unique

skillset, it just comes down

to being able to identify this

and perhaps try something

new. Taking the leap does take

bravery but is so very, very

rewarding.

POST LOCKDOWN 2.0

a business

naviGation guide

As Bay businesses move into post-lockdown 2.0, the

months ahead will be challenging. With resource

constraints in staff and stock plus production and project

flow bottlenecks, businesses are focused on resuming

their optimal operational levels.

Leadership, guidance and support are what businesses

need to help them successfully navigate and manage the

challenging environment ahead.

This issue, our special feature draws on industry experts

and businesses to hear their story, plans and forward

vision for doing business in this economic season.

Paul

O’Driscoll

David

Forbes

David

McConnochie

Nicola

Muir

Brett

Bell-Booth

Philip

Kilpatrick

Get the expert help you need

Forsyth Barr

Andrew

Davis

Karl

Mabbutt

years combined hands on building

60+

knowledge and experience

industry

innovative, cost effective building

Unique,

techniques

assessment

thinking approach to problem

Lateral

and design solutions

solving

years combined project management

20

experience

performance in nation-wide

Proven

and large residential projects

commercial

relationships with key industry

Strong

stakeholders

0800 727 007 / 027 222 8014

P:

of Plenty / Hawke's Bay Offices

Bay

www.centralbuildingsurveyors.co.nz

www.cactusprojectmgmt.co.nz

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.

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

TAU6195-04 © Forsyth Barr Limited April 2021


SPECIAL FOCUS

October/November 2021 BAY OF PLENTY BUSINESS NEWS 11

TELECOMMUNICATIONS

2degrees helping keep

business connected as

NZ navigates lockdown

Andrew Fairgray, Chief

Business Officer, 2degrees

Over the last 18 months Covid-19 has

changed the way we work, the way

we interact and the way we do business.

Remaining connected will help

NZ business navigate through.

2degrees is in the business of

connection, as a full-service telco

offering mobile, broadband and

other technology experiences. This

focus on connection manifests itself

in a few different ways at 2degrees,

says Chief Business Officer Andrew

Fairgray, and that’s through providing

customers with a strong and reliable

network, by building meaningful external

partnerships, and by continuing

to provide products and services

that businesses want and need.

“We’re all about Fighting for Fair

for Kiwi Business, and we see these

three things as critical to supporting

that purpose, as well as NZ Inc,” he

says.

The 2degrees network:

Business connection, in or out of

lockdown, starts with a strong network

says Andrew, and in the Bay of

Plenty region 2degrees has had consistent

network coverage for some

time, with 96% of the region where

kiwis live and work covered by 2degrees’

4G network.

The $1 billion spent on the network

in recent years hasn’t gone unnoticed

by customers either, with

2degrees taking out the Canstar Blue

Small Business Telecommunications

Most Satisfied Customers award for

2021. The award recognises a range

of different drivers which contribute

to customer satisfaction, including

network, and 2degrees scored 5 out

of 5 stars in this category, the most

of any telco included in the survey

results.

Meaningful partnerships:

2degrees has also made strong connections

with external partners, particularly

those with shared values of

backing Kiwi businesses to thrive.

One of these is Manaaki, a company

started as a SME advice tool in the

first nationwide lockdown last year.

It has grown into a community that’s

engaged with more than 300,000

New Zealanders to empower them

with advice from business experts,

content to upskill and grow, and networking

opportunities.

“Prior to lockdown, we partnered

with Manaaki to develop Kōrero with

Manaaki, which gives business owners

the opportunity to catch up with

a Kiwi business expert to have a chat

and learn from their insight and expertise,”

says Andrew. “Once the

country moved back to level four, we

worked with Manaaki to get Kōrero

out to more businesses, giving them

expert advice when they most need

it, on us.”

Providing business with products

and services to keep them

connected:

A recent iteration of the 2degrees

Shaping Business Study highlighted

that it was strong and reliable broadband,

correct technology set-up and

cloud security for protection that

would keep business operating and

connected through lockdowns and

beyond. So, 2degrees business has

been launching timely and relevant

new products to market including

an out-of-the-box software-defined

wide area network (SD-WAN) solution

called Insight Network that simplifies

the management and operation of

a business’ WAN. Insight Network

provides organisations with network

control and visibility, insights, data

safety, and application prioritisation.

“We know more than ever before

that businesses are exploring their

options when it comes to the cloud

and the opportunity SD-WAN brings.

This solution is fully scalable and delivers

what we know our customers

are looking for, business efficiency,

convenience and simplicity” Andrew

says.

“Everything we do and deliver at

2degrees is so businesses can focus

on what matters most, staying connected

and doing business, whether

in lockdown or not.”

MORTGAGES

Making the most

of your mortgage

NZHL Tauranga business owner, David Hill,

shares why now is the perfect time to review

your home loan.

With interest rates on the rise and

ongoing Covid uncertainties, the

cost of ‘the mortgage’ now and in

the future is something many homeowners

are rightly reflecting on.

While low-interest rates help reduce

your interest costs (for now),

they won’t optimise the money you

have available to you daily to shorten

the life of your home loan.

At NZHL, we believe the key to financial

freedom is about focusing on

what you can control, like your home

loan structure and spending and

timely reviews, to ensure your structure

is still working for you if your

plans change. In essence we work

with our clients to make the most of

their mortgage, not the other way

around!

Make a financial plan

The key is coming up with a plan that

is tailored to work for your personal

circumstances – it’s all about setting

up your surplus and defining your

goals.

Ultimately if your goal is to pay off

your loan as quickly as possible, you

may consider increasing your payment

amounts – even $50 a week will

help you get there quicker. However,

if your goal is to add in an investment

property or renovate your home,

your advisor will need to consider the

impact on your payment plan.

David Hill

Remember, your mortgage structure

should be tailored to meet

your personal needs and goals – at

NZHL, we call this our smart home

loan structure. While we tailor it to

suit the individual, essentially, it’s all

about using your income and savings

to offset the interest you pay, which

can reduce the life of your loan in the

long term.

Get the right advice

Now’s a very good time to consider

your financial future and how NZHL

can help you make the most of your

mortgage. We’re 100% NZ owned,

100% passionately kiwi and are all

about helping Kiwi’s achieve financial

freedom, faster with personalised

service.

If you are looking at switching providers,

there are things to consider,

like the lifecycle of your loan, break

fees, and other clawbacks for benefits

provided, but that’s where NZHL’s

personalised service comes in – we

will work this through with you.

Are you making the most of your

mortgage? Come in for a chat see

what’s possible for you!


12 BAY OF PLENTY BUSINESS NEWS October/November 2021 SPECIAL FOCUS

PR

Telling the stories

that matter in a

Covid environment

The culture and perception of a

business are often defined by the

way it communicates with its staff,

customers, and the public.

When communication is done

well, businesses flourish; people

are empowered and engaged,

productivity increases, and retention

rates improve. There is also a clear

link between a brand’s reputation

and a company’s bottom line.

If there has been one good thing to

come out of the Covid-19 pandemic

from a business perspective, it has

been the importance of having great

communication.

Following Aotearoa New Zealand’s

first lockdown, many businesses put

a concerted focus on communicating

how they were navigating the

pandemic and how it affected their

people and customers. That effort

has largely continued over the past

18 months.

Organisations that have done

this well have helped to combat

the heightened levels of anxiety

and uncertainty that people are

experiencing around the Covid-19

pandemic – on a personal and a

professional level.

Covid has significantly changed

the operating environment and

businesses have been forced to adapt

quickly, think outside the square,

and embrace digital technologies

and new ways of connecting and

communicating.

Where once both internal and

external communication were

afterthoughts for many businesses,

it has become clear that refining

the nuances and delivery in your

messaging needs to be a top priority.

This is where bringing in a

specialist strategic communications

consultancy to lead these

discussions will give your business

the advantage. The Shine Collective

tells the stories that matter to shape

the communities we live in, and it is

never been a more important time to

get this right.

Our focus continues to be on

supporting our clients to navigate

how they get their story told in

Assisting

the team of

5 million at a

drive-through

vaccination

clinic.

a noisy, Covid-dominated media

environment , as well as help them

to realise the communications

opportunities for their business now

and in the future.

Our role is to work closely with you

to develop and implement a strategic

communications approach that

supports your business objectives

and strategies, while building your

reputation.

Engaging the expertise of a

communication consultancy will

ensure you’re forging genuine and

long-lasting connections with the

people that matter the most to you.

IT

Why backups are the most important

asset your business owns

It’s 2021, Covid19 has ravaged the

world, the ways we think of working

have changed radically, and we are

now working from home where we

can. Business data is now spread out

over more and more locations and

on even more devices.

Files and paper are becoming less

important (as they should with the

drive to be more eco-friendly), and

more and more critical business information

is only in one place … on

your laptop!

We have our essential business

presentations in PowerPoint, our

budgets and forecasts in Excel, our

important template letters, and our

strategies in Word. Then we have our

designs, supplier contacts and excel

sheets, customer lists, and records

of meetings … our whole business

depends on all that data.

What if one email to everyone in

your company, seemingly a Payslip,

triggered a Ransomware infection

and encrypted all that data? Sure,

you can reinstall all the laptops to get

them going again, but where will all

those vital documents be? What if

your laptop got damaged and was

unrecoverable?

There are some critical questions

CEOs and boards should be asking,

and one should not assume all these

are being adequately done; it’s possibly

even more crucial than an audit!

Here are some important

questions to ask:

• What is the actual cost to your

business if all your data is gone

forever?

• Do you have a daily backup?

• Do you know what it is backing

up?

• Is the data from your cloud-based

storage and email also backed up?

• Is the backup immutable (can’t be

deleted by even your IT guy)?

• When was it last tested to ensure

it can restore?

• Who is responsible for your

backups?

Be aware that OneDrive, Google

Drive and iCloud are not proper backups.

They are great for sharing files

and having a copy available online

and easily shareable. Still, they do not

follow the correct backup process.

There have also been cases where a

previous staff member has created

personal OneDrive accounts, a credit

card expires, or password is lost, no

one can find that ex-employee, and

you are in trouble.

Our advice is to get an IT professional

to ensure your backups are in

order.

We help great companies simplify and take control of their IT

07 222 0091 hello@bit4bit.nz www.bit4bit.nz

IT SUPPORT | NETWORKING | CYBERSECURITY | CLOUD SERVICES | BACKUP & RECOVERY | CONSULTING


SPECIAL FOCUS

October/November 2021 BAY OF PLENTY BUSINESS NEWS 13

INSURANCE

SMARTpak: business insurance for SMEs

Insurance is something most business owners

know is necessary, but don’t have time to turn

their full attention to. Crombie Lockwood

designed its SMARTpak cover specifically with

the needs of New Zealand SMEs in mind.

SMARTpak, is based on the four

pillars of insurance that are important

to the majority of SMEs. These

are: material damage, business

interruption, liability and commercial

motor vehicle cover.

Crombie Lockwood’s years of

experience working with SMEs really

shaped the structure of SMARTpak

and it has some important benefits

built in to ensure appropriate

coverage that clients may have not

otherwise considered.

As an example, within the material

damage policy benefits and with

basic conditions met, a business can

claim up to $1 million if that business

is unintentionally underinsured.

The premiums however are based

on the declared sums insured, not

the $1 million limit. This offers a lot

of peace of mind and SMARTpak is

the only package to offer this type of

cover.

A powerful safety net in a

difficult business climate

Crombie Lockwood are passionate

about SMEs and their success

especially as they are the backbone of

New Zealand’s business community.

Putting clients’ interests first is

among our values and SMARTpak is

very closely aligned to that value.

SMARTpak has proven itself to be

a powerful safety net for clients, with

the $1 million cover component being

utilised for many businesses that

might not otherwise have been fully

covered. Given the uncertainty some

businesses have faced in the last 18

months, there is a great sense of

pride within Crombie Lockwood that

we can exclusively offer the benefits

of SMARTpak to the businesses that

need it most.

Alleviating worry for SME’s has

been amplified in the challenging

business environment. Crombie

Lockwood has introduced a special

SMARTpak introductory offer until

the end of November 2021, which

means eligible SMEs who are not

currently insured with SMARTpak can

save 20% on SMARTpak insurance.

Get your insurance sorted with

your local Bay of Plenty team

Phone 07 579 7600

crombielockwood.co.nz

CL903A

Your local brokers get

your insurance sorted

07 579 7600

crombielockwood.co.nz

CL903A CLMB advertorial local ad 256mm(w) x35mm(h) V1.indd 1

20/09/21 8:50 AM

COMMERCIAL &

INDUSTRIAL PROPERTY

All roads

lead to

Tauriko

One of the key drivers for the Tauriko

Business Estate’s appeal to investors

is the strength of the Port of Tauranga

and the easy motorway access from

Tauriko to the Port, notes Commercial

Managing Director, Philip Hunt.

“When we last spoke about Tauriko

(around last year’s lockdown), there

was some uncertainty,” says Hunt,

who is a well-established expert on

the Estate’s activity.

“But how wrong we were!

Demand has been incredibly strong

in all aspects of the market, including

retail, commercial and industrial –

Tauriko came out swinging.”

Hunt comments that Tauranga

tends to underestimate the strength

and significance of the Port, citing

From left: Michael McMichael, Jacki Seddon, Ivy Shen, Philip Hunt, Kate Bosworth, Christy Arundel, Sean McKenzie.

the example of Auckland company

Winstone Wallboards, which is well

advanced in building out a 13ha

plasterboard manufacturing and

distribution facility within Tauriko

Business Estate.

“One of the reasons they are here

is because of the ease of transport to

our Port,” he says.

“It’s the motorway access to the

major roads and it’s the Takitimu Drive

access to the Port,” he says. “This is

what I’m hearing almost every day

when I speak to tenants and buyers.

And of course, with Tauriko growing,

you’ve got the economy of scale –

everybody wants to be there.”

Hunt says the fact that the Estate

is getting built-out doesn’t matter as

potential purchasers are demanding

the opportunity to buy from existing

owners.

He notes that when the region

moved into lockdown recently, he

and his team felt that working from

home was just like a normal day at the

office with activity levels. “Nothing

seemed to change and the level of

enquiry was as strong as ever.”

Hunt, who recently won Top

Commercial Agent at this month’s

Ray White New Zealand awards for

the sixth year in a row, pays tribute

to his experienced team, crediting

his PA Kate Bosworth with helping

secure his latest award.

“We have a boutique, professional

and loyal team, each member

offering unique strengths.”

Commercial and Industrial Specialists

Phone: 07 928 0000

Email: tauranga.commercial.nz@raywhite.com

Web: raywhitecommercialtauranga.com BOP Commercial Realty Limited (Licensed REAA 2008)


14 BAY OF PLENTY BUSINESS NEWS October/November 2021 SPECIAL FOCUS

ADVISORY

Safeguarding

your business

post lockdown

The latest Covid-19 lockdown has

highlighted a new reality. The old

‘business as usual’ mindset can no

longer be relied on to take your business

into the future.

The new reality of operating

alongside Covid-19 requires proactive

future planning around current

and potential revenue streams. We

encourage rethinking your business

strategy and being flexible with goal

setting which will help your business

overcome further challenges.

Now more than ever, it’s important

to maintain good relationships with

your creditors, client base and your

team.

The new reality of business has

paved new ways of thinking and

change. Clients that have been

successful in achieving higher profitability

are the ones who have proactively

reached out to us. We work

with them to achieve a future focus

through compiling annual forecasts

and adaptable plans. Through this

process we’ve found that business

owners who are open to learning and

developing extra skills have reaped

the benefits of improving organisational

culture which in turn improves

the bottom line.

While managing the ever changing

environment it is important to focus

on making decisions that will benefit

the business in the long-term. We

recommend our clients take the following

actions to grow their business

and reduce risk during these uncertain

times:

• Build better habits – Have a plan to

implement changes in your business

to help it grow. The smallest

change can compound into great

rewards.

• Create an annual forecast – with

the help of your advisor, focus on

maximising revenue and cutting

out unnecessary expenditure.

• Get stuck in – Stay actively engaged

with your creditors and your

client base, ensure that your good

relationships are maintained.

• Stay calm – Don’t opt for a short

term focus that could be detrimental

in the long term.

• Be open to learning.

• Take care of your team and the

community.

We are holding free webinars over the

next couple of months to discuss future

proofing your business. Contact

tauranga@bdo.co.nz to be added to

our mailing list for the latest updates

on how to prepare your business, or

if you have any queries please reach

out to Linda Finlay.


SPECIAL FOCUS

October/November 2021 BAY OF PLENTY BUSINESS NEWS 15

INVESTING

PMG remains robust and resilient

Bethlehem Town Centre

Since 1992, our diversified commercial

property funds have delivered

regular and reliable cash returns to

investors through multiple economic

cycles. PMG’s strategy has always

been to offer defensive investments

diversified by geography, tenant and

business sector. In times like these,

our approach has proven to be the

right one.

With over $750 million worth of

assets under management across

our five unlisted commercial property

funds, PMG is known for being one of

the country’s most trusted and established

property funds managers.

Our most recent offer saw PMG

Generation Fund (the Fund) acquire

the high-profile Bethlehem Town

Centre here in Tauranga, and we

welcomed more than 2000 new

investors on board. The centre is

underpinned by notable national and

multi-national tenants, some of which

are classed as essential services or

were able to operate at Level 3.

This brought the total portfolio

value to $166.1 million*, which comprises

five commercial properties

located within main metro centres

across New Zealand.

“When we launched PMG Generation

Fund in 2020, the aim was

to help more New Zealanders gain

access to the benefits of investing

in commercial property, providing

regular income and the opportunity

for good capital growth on their

investment,” PMG Chairman Denis

McMahon said. “This latest offer has

certainly achieved this.”

Not only does the Fund offer a

low minimum entry point, but PMG’s

Reinvestment Plan also allows investors

to reinvest their distributions

from any of PMG’s funds into units

in PMG Generation Fund (subject to

availability) – allowing investors to

reap the rewards of compounding

returns. PMG’s online Compounding

Calculator helps investors see just

how their money could be working

harder for them.

While PMG and our funds are not

immune to economic headwinds,

our investors’ investments and our

properties are in experienced hands.

We have complete confidence that all

our funds are well placed to thrive in

these uncertain times.

If you are looking for regular and

reliable income from a historically

robust and resilient asset class, get

in touch with your local PMG Investor

Relationships Manager today by visiting

www.pmgfunds.co.nz.

Disclaimers

*The Product Disclosure Statement for this closed

offer can still be found on the PMG website. Property

valuations stated as per the value of the most

recent independent valuation report held by the

Fund per property as at the date of the PDS.

Past performance is not an indication of future

performance. Prospective investors are recommended

to seek professional advice from a

Financial Advice Provider who take into account

an investor’s personal circumstances. PMG, and

members of the PMG Investor Relationships Team,

do not provide advice.

Cash returns like

clockwork

How are your investments ticking over?

Returns of

5.5-6.0% p.a. *

Returns

paid

monthly

or quarterly

*Returns are based on historical performance of the funds managed by PMG, as at 9 September

2021. Past performance is not a guarantee of future performance. Please refer to pmgfunds.co.nz for

current metrics and more information. Prospective investors are recommended to seek professional

advice from a Financial Advice Provider who takes into account their personal circumstances.

RESIDENTIAL PROPERTY

Leaning in and

looking through

As market leaders in top end Tauranga real

estate, Jason & Cameron of Oliver Road have

experienced firsthand the aftermath of last

year’s lockdown – the booming property market

we’re still in.

Few would have predicted during

those first days, and the extraordinary

news spreading across the world that

over the next year, here in the Bay of

Plenty, median house prices would

increase by 25% and that interest in

unique, high-value homes would be

the strongest it has ever been.

This all makes sense. Demand

soared as expats returned home and

those outward bound paused or canceled

their plans.

Supply tightened as owners found

more enjoyment in their current

homes or were unable to find suitable

replacements, and the availability

of credit became overwhelmingly

attractive to those with the appetite

and patience for signing countless

unread pages of commitment.

Although not expecting a repeat of

last year, as the second Level 4 lockdown

was announced, Oliver Road’s

approach was to lean in and look

through.

Having recently taken on several

full-time trade staff in the development

of their pre-market improvements

service, the priority was to

reassure those staff of their job security

and to pay 100% of usual wages

throughout. This approach was

Jason Eves and

Cameron Winter

rewarded with a team of grateful and

motivated staff ready to do whatever

was required as restrictions lifted.

Feeling confident in their team’s

readiness to deliver the international

award-winning service allowed Jason

and Cameron to focus not on Level 4

but rather to look straight through to

the coming months.

Safe in the knowledge that in any

market, the best choice for a vendor

will remain the best, this time around

Oliver Road has doubled down and

leant in – not scaling back but ramping

up investment in new people,

technology and marketing.

With a near-full spring calendar of

$2M+ listings being prepared for the

market; one thing is certain – what

Oliver Road is doing is working.


16 BAY OF PLENTY BUSINESS NEWS October/November 2021 SPECIAL FOCUS

CO-WORKING SPACES

A workspace

revolution

The changes wrought by Covid-19 on businesses have

created effective and long-lasting new ways of working as

companies look to capitalise on the operational savings

made during lockdown. Jade Maddox, managing director

of shared work, meeting and event space BloomCo,

discusses what this means for local businesses.

Jade Maddox

“Last year, when Covid-19 first landed

in New Zealand, we had just opened

a shared working premises in Pyes

Pa. Many people said to me that

things were going to be challenging;

that nobody will want to work near

others after this,” says Jade.

“My response was “I think it’ll be alright,

mate”, and what an understatement

that turned out to be,” she says.

Jade believes that the old saying,

necessity is the mother of invention,

has proven true as businesses seek

new ways of working.

“Consequently, the popularity of

flexible office spaces has never been

higher. Covid actually provided the

impetus to super-charge the revolution

in changing the way we work and

do business in this country,” she says.

“By now, every business here has

experienced working from home and

seen the many pros and cons of that

compared to our traditional standards

and expectations around ‘office

time’.”

Businesses of all sizes are moving

in droves away from the office-based,

fixed commercial lease model. Bayleys

Research recently reported that

more than half of all Vodafone NZ

staff work from home, and BNZ have

cut 30% of their office space for a

permanent shift to hybrid flexi working

and adaptable “liquid spaces”.

With the greater prevalence of

coworking spaces, especially in

the suburbs, more sole operators

who traditionally based themselves

from home are also now using such

premises as a flexible base or a professional

front for meeting their

clients.

Globally, research suggests 5 million

people will be working in coworking

spaces by 2024, which is a 104%

increase from today.

Here in New Zealand, Jade says

that the industry is still evolving to

meet client needs.

“While some still seek hotdesking

spaces, there is more demand now

for businesses seeking private office

spaces with shared areas, and room

for meetings and collaboration.”

“Locally, Tauranga is lucky to already

have a plethora of coworking

premises, each with their own vibe

and options to meet the needs of

those in our community,” she says.

Work. Meet. Thrive

Shared work, meeting and event space

hello@bloomco.nz | 021 061 6961

bloomco.nz

PRINT

Kale Print – Keeping an eye on the

temperature of the economy

Kale Print’s manager Peter Lloyd

is philosophical when it comes to

talking about the lockdowns which

have plagued businesses throughout

the last year; “Having been through

this before allows us to quickly mobilise

our team under lockdown levels

in order to keep operations going. We

have been fully operational for all essential

communications under lockdown

level-4 which has sustained

our business and also provided some

new oportunities.”

According to Lloyd, their clients

are ‘in good hands’ – Kale Print’s

highly skilled team are able to operate

remotely for estimating, account

management and studio work during

lockdown.

That means they’re always ready

to hit the print button as alert levels

come down, allowing for non-essential

communications. “Even through

lockdown the direct lines of enquiry

have been open and flowing.”

The business has worked hard to

adapt to the new normal. Not only for

meeting the current environment but

to keep their people safe. “As things

change we will continue to communicate

to our staff and clients to ensure

safety protocols are followed”.

Looking beyond the world of lockdowns,

he says Kale Print remains

focused. “The key is keeping an eye

on the temperature of the economy,

being sensible and keeping our greatest

asset, our team, on board.”

“Also making sure we continue

to evolve and implement strategies

to keep us up with market demands

and trends as we have done for

generations.”

This means not lessening the

focus on technology, or on reducing

the company’s environmental footprint.

“We offer a broad range of visual

communications, not just traditional

print. From design to signage

to packaging – for small boutique

businesses to large corporates, as

well as trade partners such as other

printers – we support a wide demographic

nationally.”

“Being out of the Covid hot spots

like Auckland has allowed us to be

more agile and to provide support

from the regions,” he says.

According to Lloyd, “Technology

has been key. We are doing a lot more

Zoom and Teams meetings these

days. This helps to reduce the location

barrier even more for our clients

nationwide. And, of course, we also

have a strong presence online via social

media, google and our website,”

he points out.

“It’s been pleasing to see our enquiries

exceeding pre-Covid levels

demonstrating the resilience of the

business community in the Bay of

Plenty”. It’s a great feeling to be able

to support businesses in continuing

operating as uninhibited as possible.

Offering a level of certainty during

these unpredictable times.”


October/November 2021 BAY OF PLENTY BUSINESS NEWS 17

Trustpower Baypark

is back in business

Trustpower Baypark is open and gearing up for an exciting line-up of events to

finish off 2021. As the “Hub of Entertainment” for Tauranga and Bay of Plenty we

have a variety of events for the entire family.

Baypark Speedway

Opening night for Baypark

Speedway is set for Saturday

October 23 and will see

all adrenaline junkies come out of

hibernation. The opening night is

just the start of what is set to be an

action-packed season. There will be

no shortage of thrills this Speedway

season. Once confirmed all speedway

dates can be found at www.bayparkspeedway.co.nz

Did you want to treat one of your

valued clients? Or how about coming

to Speedway for your Staff Christmas

party?

We have a number of exclusive,

spacious corporate boxes with balconies

to entertain up to 20 guests comfortably.

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.

BOP Home Show

Create your happy place at the Bay of

Plenty Home Show. Explore everything

from blinds, builders and beds

to spas, solar and smart home technology

– over 200 inspirational exhibitors

showcase the latest products and

services to bring your next home

improvement project, renovation or

new home to life.

See food come to life in the

BespOak Live Cooking Theatre featuring

the iconic Jo Seagar each day

at 11.30 and 2.30, doing what she

does best – minimum effort for maximum

effect! Chatty and relatable, Jo

brings you great recipes and tips so

you can dine in style without breaking

the bank.

Enjoy the range of food trucks,

entertainment for children, go in the

draw to win great prizes and take

advantage of exclusive show deals

and offers. Find everything you need

from top of the line to budget conscious

– and have fun doing it! – at

the Bay of Plenty Home Show 29, 30

& 31 October.

National Olympic Weightlifting

Championships 2021

The 2021 New Zealand Weightlifting

Championships is returning to

Mount Maunganui this November.

This event will be action packed, with

over 120 of New Zealand’s top Junior

and Senior athletes competing across

10 weight classes. Catch Olympic and

Commonwealth Games athletes live,

as well as our up-and-coming talent.

Impressive feats of strength and

coordination will be on display across

three busy days; from Friday 19

November to Sunday 21 November.

Battle of the Trades IV

BAY BOXFIT is proud to bring to

you Base Up BATTLE-OF-THE-

TRADES IV – The Bays Best Charity

Boxing Event.

A very popular Corporate Boxing

show which showcases tradespeople

challenging themselves by navigating

their way through 3x 2 min rounds

against one another.

This is a BLACK TIE event so

be sure to dress to impress on 13

November.

Polo in the Bay

Polo in the Bay is more than just a

new event, it’s a whole new tradition

on 27 November.

Every year, we’ll be kicking off

the Mount Maunganui Summer with

fast-paced entertainment and firstclass

hospitality – it’s a weekend

that’s hard to resist.

The inaugural event features some

of New Zealand’s most talented Polo

players going to head-to-head in their

provincial colours and this fresh Polo

format brings you closer to the action

– there isn’t a bad seat in the house.

We have a range of hospitality

options available, from a casual picnic-style

Family Zone, to Private

Marquees and the VIP Pavilion with

specialty bars, catering and lounge

areas.

Polo in the Bay features include:

• Movember Brunch (R18)

• The Polo Lawn (R18)

• VIP Pavilion (R18)

• Private Marquees (R18 – limited

spaces)

• Free Family Zone (unlicensed – all

ages)

• Après Polo – Eat + Drink + Play at

our Official Dining Precinct

Tickets available from www.

polointhebay.co.nz.

Women’s Lifestyle Expo 2021

Do you need a girls’ day out? The

Women’s Lifestyle Expo is a two-day

event for woman of all ages, featuring

everything from fashion and beauty

to health and fitness, artisan good,

gourmet food & beverages and much

more.

This is the only event of its kind

happening in nine regions across New

Zealand so grab your girlfriends, sisters,

mum, grandma or daughters for

the ultimate weekend at the Women’s

Lifestyle Expo on Saturday 18 &

Sunday 19 September.

Tickets are just $10 at the door or

get a 2-for-1 deal on GrabOne in the

lead-up to the show. Kids under 12

are free.

Salmonella

Dub

Aotearoa’s Dub &

Bass heavy-weights,

the space-weaving

Salmonella Dub will be

here 3 December.

The multiple platinum-selling

and award-winning D&B pioneers

are performing across Aotearoa,

delivering what promises to be a phenomenal

two-hour multimedia dance

floor set of the Dub’s classics, alongside

a bag of new tunes from their

forthcoming album Return To Our

Kōwhai.

Joining the band on stage for this

auspicious spring tour are old time

members Conan Wilcox and Tiki

Taane, plus special guests Whirimako

Black and Laughton Kora.

From their very first live appearance

in 1993, to these forthcoming

Aotearoa Spring Tour shows, passion,

creativity, energy, driving bass beats

and pure joy are the signature hallmarks

of Salmonella Dub live.

7 Days Live

The 7 Days Live tour is now officially

an annual tradition. And this year our

comedians will smash out 13 shows

in 13 towns around New Zealand with

(nearly) no fear at all.

Jeremy Corbett, Dai Henwood,

Paul Ego and the team jump in a van

and bring much-needed comedy to

the nation, laughing directly in the

face of Covid-19 (wearing a mask of

course).

Don’t miss this show – part quickfire

stand-up from the country’s best,

on 16 December and part a completely

un-censored and un-edited 7

Days show, it’s exactly the medicine

we need in 2021 (along with the vaccine

of course). Be there to see our

comedy heroes, live!

It’s never too early to start

thinking about Christmas

It’s that time of year again when your

work social committee starts to brainstorm

ideas for your staff Christmas

party. What have we done before?

How can we make it better than last

year?

Sure you could invite everyone

to the conference room for drinks, or

go out for dinner – but that’s all been

done before.

Why not celebrate the festive season

at Baypark this year and indulge

in a delicious Christmas feast created

by our award-winning Executive

Chef? Why not make your party

extra special and visit BayStation and

enquire about Drift-triking or Blokarts?

To book or make an enquiry

call 07 577 8560 or email events@

bayvenues.co.nz.

Tauranga’s Premier Venue

Trustpower Baypark is Tauranga’s

Premier Venue for conferences, meetings,

entertainment and exhibitions.

Offering a complete package in one

convenient location that features state

of the art meeting rooms, in-house

catering, audio visual services, professional

conference organiser (PCO)

and marketing/promotional services.

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

visit www.trustpowerbaypark.co.nz or email events@bayvenues.co.nz.


18 BAY OF PLENTY BUSINESS NEWS October/November 2021

Three Waters – ideological government

Tim Hunter’s excellent piece in NBR, 20 August, The flaw at the heart of water reform called attention to the

disjunction between councils’ 100 percent ownership of the infrastructure with their 50 percent

control of the oversight boards. This understates the impact of the

three waters proposal.

By GARY JUDD, QC*

Councils now own drinking

water, wastewater

and stormwater assets,

directly or indirectly. That

will change. Only iwi/Māori

will have ownership rights.

Directly in some respects,

indirectly in others. Local

authorities will have none.

Legal scholars argue about

what is meant by ownership,

but it is certain that if one has

no rights in relation to a thing

— e.g., no right to use it, to

enjoy it, to gain a return from

it, to dispose of it, to destroy

it, to control it or to control its

use — one does not own the

thing.

The government, whilst

claiming that the new entities

would be publicly owned, did

not say how. Under pressure,

by the end of June the Minister,

Nanaia Mahuta, was saying

they would be owned by local

authorities, by being listed as

owners in the legislation.

As the proposal deprives

local authorities of all the

rights of ownership, this

“ownership” is a fiction. It is

“spin” on a grand scale.

Listing in the legislation

does not confer ownership if

it does not confer ownership

rights.

Three Waters to be

dominated by “rights

and interests of iwi/

Maori”

Hunter referred to a Cabinet

paper, under Mahuta’s name,

titled “Protecting and Promoting

iwi/Māori rights and

Interests in the New Zealand

Three Waters Service Delivery

Model: Paper Three.”

At least the Minister is

sort-of upfront about what

she is doing. As you can see,

the title is premised on iwi/

Māori already having rights

and interests in what councils

now own.

Analysis of the Cabinet

paper shows a clear intention

to establish a system dominated

by the “rights and interests

of iwi/Māori”.

It commences with a preamble

from Michael Webster,

Secretary of the Cabinet, setting

out what has previously

been agreed and what will be

agreed at the Cabinet meeting.

The first paragraph of

Webster’s preamble asks that

it be noted that government

has ambitions to improve

the safety, quality, resilience,

accessibility, and performance

of the three water services, in

a manner that is efficient and

affordable for New Zealanders

“and which protects and promotes

the rights and interests

of iwi/Māori in the proposed

new three Waters service

delivery system.”

Following Webster’s preamble

is Minister Mahuta’s

Cabinet paper itself. Paragraph

8, in the executive summary,

comes closest to summarising

iwi/Māori rights and interests:

water.

It says [they], “can be a

taonga of particular significance

and importance to Māori

and the Crown has a duty to

protect iwi/Māori rights and

interests under the Treaty …,

and existing and subsequent

Treaty settlements…. The

Crown has responsibilities

under the principles of Te Tiriti

to protect such a relationship

and allow for an appropriate

exercise of tino rangatiratanga

alongside kāwanatanga.”

Note the sleight of hand.

Water can be a taonga for

Māori. Perhaps it can be, but

the question is, is it in this

case? Specifically, is drinking

water in a Council dam, reservoir

or pipes taonga? Wastewater

in sewers and sewage

ponds? Stormwater channelled

from the streets to the sea?

According to māoridictionary.co.nz,

taonga is “treasure,

anything prized — applied to

anything considered to be of

value including socially or

culturally valuable objects,

resources, phenomenon, ideas

and techniques.”

Drinking water is vital for

life. Without it we die. It is not

just of value; it is essential for

everyone. Proper disposal of

wastewater is hygiene and disease

prevention for all. Proper

disposal of stormwater is

needed by everyone. Not just

Māori.

Water is taonga for all

If taonga is to be the basis for

an alleged right or interest, the

Cabinet paper should explain

why these specific waters have

that status, and why iwi/Māori

are being singled out as the

only ones within the country

who have the right or interest.

Paragraph 8 also referred

to the Crown’s duty to protect

iwi/Māori rights and interests

under the Treaty.

Appendix B purports to be

an analysis of iwi/Māori rights

and interests, but it does not

analyse relevant rights and

interests. The analysis should

have been directed to Council

provided drinking water,

wastewater and stormwater

systems and the associated

Council (not Crown) owned

assets (“council services”).

It’s the old trick of asserting

something without proof,

and then moving quickly on

in the hope that no one notices

that an unarticulated foundation

has never been proved.

The classic example is:

“when did you stop beating

your wife,” incorporating the

assumption that at some stage

you started beating your wife.

The first item in Appendix

B notes Article two Treaty

right to make decisions over

Gary Judd, QC

resources and taonga, which

Māori wish to retain and

assumes, without proof, that

this applies to Council services.

Council services were

created by councils using ratepayer

funds.

Māori cannot “retain”

something Māori never had.

This is a confidence trick. It

is not retention of rights; what

the Minister proposed, and

Cabinet agreed to was acquisition

of rights.

The second item relies on

Article 3 and states “Implicit

assurance that rights will be

enjoyed equally by Māori with

all New Zealanders. This may

warrant special measures to

attain that equal enjoyment of

benefits.” Another confidence

trick. Equality for all is translated

into special considerations

for some.

Litigation risk to be

created

Hunter referred to the litigation

risk justification for the

proposals. Paragraph 22 of

the Paper says Crown Law

advice was that there are two

significant applicable Treaty

principles: partnership (requiring

the treaty partners to act

reasonably and with good

faith to each other) and active

protection.

It is not in doubt that the

Court of Appeal decided in

1987 that those obligations

exist. The Cabinet paper

asserts in paragraph 23 that

“Failure to meet those obligations

would undermine the

Māori/Crown relationship and

would create a litigation risk

for the Crown,” noting that the

risk is greater in the Waitangi

Tribunal which “would likely

deal with a claim about the

three waters in its National

Freshwater and Geothermal

Resources Inquiry.”

No doubt the three waters

will now be raised in that

Inquiry, but unless and until

the Tribunal has identified

exactly how iwi/Māori have a

right or interest in Council services

any different to the right

or interest of every New Zealander,

there is no possibility

of examining the legitimacy of

the claim.

In fact, of course, paragraphs

22 and 23 are political,

not legal statements. The

Treaty is not part of New

Zealand’s domestic law. The

principles identified by the

Court of Appeal require con-

Commissioners’ Three

Waters reform proposal

The Government’s Three Waters Reform proposal aims to ensure that all New Zealand

communities have safe and sustainable drinking water supplies, wastewater reticulation,

treatment and disposal systems and stormwater services.

By ANNE TOLLEY, Tauranga

Commission Chair

Those services are currently

provided by local

councils and while they

are generally in good shape in

the western Bay, many communities

are not in such a fortunate

position.

A national study indicates

that to continue to meet environmental

and water quality

standards, keep up with

demand and cope with the

impacts of climate change on

our three waters infrastructure,

New Zealand councils

may need to invest up to $180

billion over the next three

decades.

Given that many councils,

including Tauranga City, are

debt-limited, that’s a scary

prospect.

To futureproof our waters

Anne Tolley

services, the Government

is proposing the formation

of four regional entities that

would not be constrained by

debt limitations and would

have the capability required to

provide the high-quality services

New Zealand needs.

Tauranga and 21 other

councils from Waikato to the

Whanganui/Rangitikei area

would be part of, and would

own ‘Entity B’, on behalf of

their communities.

If the proposal proceeds,

Entity B would own all of the

waters assets, take-on all of the

debt relating to those assets

and – from 2024 onwards –

be responsible for providing

and maintaining three waters

services and any investment

required to ensure they remain

fit-for-purpose into the future.

That’s the big picture, but

as always, we have to consider

the detail before making any

commitment on our community’s

behalf.

In that regard, the Commissioners

have a number of

issues to raise with the Government.

These include:

• The need to ensure that our

communities can provide

local input into the reform

process

• Protecting our water assets

against privatisation

• Ensuring that Tauranga’s

growth needs are met

• Understanding what the

reforms mean for stormwater,

because the focus

to date has largely been

on drinking water and

wastewater

• And clarifying how our

assets are managed during

transition, if the reforms do

proceed.

We’ve also asked the community

for feedback, via Council’s

website (www.tauranga.

govt.nz/three-waters-reform).

Up until mid-September,

there had been 182 responses

via the online survey provided,

but also 30-plus emails directly

to Commissioners.

It’s fair to say that most

of those did not support the

reform, although many did not

engage with the reform proposals

and merely asked for a

referendum on the decision to

join.

The Commission will

nevertheless report the unfiltered

community feedback to

Government.

Key community concerns,

again as at mid-September,

include:

• The loss of a community

voice in the governance

and management of waters

services

• Removal of assets paid for

by the community, without

fair compensation

• The need for a binding

referendum to determine

whether Tauranga opts in or

out of the reforms

• Fears that iwi were being

given disproportionate

power in determining

Entity governance arrangements,

and/or ownership of

assets

• Fears about the privatisation

of community assets.

There’s obviously a lot

more water to flow under the

bridge on this subject and

we’ll keep the community

informed and, where possible,

engaged in the reform process

as it develops.


October/November 2021 BAY OF PLENTY BUSINESS NEWS 19

indulging sectional political constituency

… [the cabinet paper] title is premised

on iwi/Maori already having rights and

interests in what councils now own.”

– Gary Judd, QC

sideration and implementation

only if legislation requires this

to happen.

The 1987 decision arose

because the State-Owned

Enterprises Act provided that

the Act must not to be implemented

in a manner inconsistent

with the principles of the

Treaty. This meant that the

Court of Appeal had to ascertain

what those principles were

and then to decide whether the

way in which the Crown was

proposing to pass assets over

to the enterprises was consistent

with the principles.

As the Treaty principles

have not been incorporated in

legislation relating to the three

waters, it can be expected

that an attempt to rely on the

Treaty in the ordinary courts

would need to overcome that

argument.

No doubt this explains why

the Paper describes the risk

before the Tribunal as greater

— to imply that there is still a

risk before the ordinary courts,

when without a departure from

current precedent no such risk

exists.

Whilst there is no real risk

today, this will change if the

Minister gets her way. She

proposed that the legislation

require the new entities to conduct

themselves in accordance

with Treaty principles and be a

good Treaty partner: paragraph

82.

And she did get her way.

Cabinet agreed the legislation

would contain a reference to

the principles of the Treaty

requiring the new entities to

maintain systems and processes

to ensure they have

the capability and capacity to

give effect to the principles

of the Treaty and to engage

with Māori and to understand

perspectives of Māori: Webster’s

preamble, paragraph

7. Litigation risk which does

not exist now will be deliberately

created by the proposed

legislation.

Paragraph 7 also recorded

agreement for Te Mana o te

Wai to be included in legislation.

This means that “water

service entities will need the

ability to connect governance

with delivery on the ground at

a hapū/whānau level” (paragraph

16).

No principled basis

The Cabinet paper contains

no principled basis for making

the provision of the three

Waters services subservient

to iwi/Māori. Its impenetrable

language is a smokescreen for

a political determination to

put these assets under effective

iwi/Māori governance and

control by the structure the

legislation will create.

Hunter described the structure.

There will be a Regional

Representative Group comprising

local authority representatives

and mana whenua

representatives (50% each).

The Group will appoint and

monitor an Independent Selection

Panel which will in turn

appoint and monitor boards

of entities which will provide

delivery.

Sound a good way of choosing

directors to make decisions

about delivery of water services?

Judge for yourselves

from what Cabinet agreed.

The board of each water

services entity is required to

have general collective competence

in understanding the

principles of the Treaty and

mātauranga Māori, tikanga

Māori, and te ao Māori, and

members with specific expertise

in supporting and enabling

the exercise of mātauranga

Māori, tikanga Māori, kaitiakitanga,

and te ao Māori with

respect to the delivery of water

services. As noted above, the

entities will also need “the

ability to connect governance

with delivery on the ground at

a hapū/whānau level.”

Undemocratic aims

clearly revealed

The Minister’s aims are

clearly revealed by paragraph

26 where she says, “my

reforms of the three Waters

system provide the opportunity

for a step change in the way

iwi/Māori rights and interests

are recognised throughout the

system.”

The three waters proposal

has been deliberately designed

to give iwi/Māori the predominating

governance influence.

In addition, as Hunter pointed

out, it was agreed that the

water services entity would

fund and support capability

and capacity of mana whenua

within an entity’s boundary to

participate in relation to three

waters service delivery. Bear

in mind that getting a return

from an asset is a right attributable

to an owner. Therefore,

the proposal would confer on

iwi/Māori, but no one else, a

direct attribute of ownership.

We live in a “free and democratic

society”. For example,

the rights and freedoms contained

in our Bill of Rights

may be subject only to such

reasonable limits prescribed

by law as can be demonstrably

justified in such a society. Yet,

the proposals are advanced

notwithstanding the “democratic

deficit”, as Tim Hunter

put it.

This will indicate to many

that there is something deeply

wrong with the proposal and

that it shows that those advancing

it are prepared to sacrifice

something that should be dear

to all.

Unfortunately, it is not dear

to all as the manifestly undemocratic

nature of the three

waters proposal demonstrates.

Philip Joseph in his Constitutional

and Administrative Law

(5th Ed, p 90) records that at

the Constitutional Conference

in 2000, “Vocal Māori advocated

entrenching the Treaty as

supreme law and rejected the

Western political ideal of “one

person, one vote”. Representative

democracy was a Pākehā

construct that continued the

subjugation of Māori.” The

government has succumbed to

sentiments such as those, for

if a free and democratic New

Zealand were their concern,

they could not have gone down

this path.

Here we have the Minister

recommending and Cabinet

agreeing to a section of society

being given significant control

of assets and substantial

influence over the delivery of

services which are vital to the

health and well-being of all

New Zealanders. This goes

well beyond any obligation on

the Crown to act reasonably

and with good faith to Māori.

If Māori are seeking this —

and it is not at all clear they are,

for the Paper suggests less than

enthusiastic involvement by

the Māori who have had to be

persuaded to consult and will

be paid for their involvement

if the system is established —

they will hardly be discharging

their obligation to act reasonably

and with good faith in

their dealings with the Crown

(taking the Crown to be representing

all New Zealanders).

The government has an

ideology-driven desire for centralised

bureaucratic control.

They do not care if it divorces

providers from the communities

they are supposed to serve

and reduces accountability. In

doing so they are taking the

opportunity to indulge a sectional

political constituency

at the expense of the principles

of democracy and the

community.

* Gary Judd has been a

Queen’s Counsel since 1995.

He was chairman of ASB Bank

from 1988 and its associate

life assurance company, Sovereign,

from 1998, until 2011. He

was chairman of Ports of Auckland

for three years and was a

prime ministerial appointee

to the Apec Business Advisory

Council (ABAC) 2009-12. This

is a modified version of an

article first published by NBR

on 31 August 2021

Falling for the Magpie Syndrome

Over the past 15 years of studying debtor behavior and advising

business owners I have observed a characteristic that seems to

be shared by a number of directors/owners of businesses that

fail within the first few years of trading that I have dubbed the

“Magpie Syndrome”.

I

have called it this because

these business owners seem

to value the acquisition of

“shiny things” over the development

of a reputation and a

legacy. It’s very much a case of

style over substance and a little

bit of “fake it till you make it”,

but sadly few actually do ever

make it.

I have the unique opportunity

to see them as the rise as

a business credit advisor, then

as they fall, as a repossession

agent who has to remove the

shiny things so I feel I am qualified

to make the observation.

For some, owning your

own business is an opportunity

to build a legacy and make a

real mark on the industry in

which you are operating.

For others unfortunately

it’s is an opportunity to access

another level of indebtedness

and to acquire the accoutrements

of wealth and success

before the hard graft and dedication

has naturally led them

to have these things.

I have seen this time and

time again in the trades where

a freshly graduated apprentice

strikes out on their own using

the bank of mum and dad or

a guarantee from a proud and

hopeful parent to open up

accounts, finance brand new

over-specced vehicles and hire

staff in anticipation of a meteoric

rise to the heights of success

that never happens.

Often emulating the habits

of the successful can be a good

thing, but the aspiring moguls

who emulate the image forget

to implement the dedication

and industriousness rather

than simply the look and the

trappings.

I once interviewed a business

owner after the liquidation

of his construction company,

which owed around $3.6

million dollars to a variety of

creditors, about how the whole

house of cards collapsed.

He told me that he was targeting

high end clients that all

had large houses and expensive

cars.

CREDIT CONTROL

> BY NICK KERR

Nick Kerr is a Business Advisor at NJK Advisory Ltd.

He is also director of International Private Investigations Ltd.

Nick can be reached at nick@nzipi.com

His reasoning was that they

would not want to deal with

him if he looked “poor” so he

bought a house that he could

not afford and several high end

European cars on 100 percent

finance using his over-leveraged

house as security, bought

designer clothes and hung out

at expensive restaurants so he

could be seen by his potential

clients.

The business owner spent

so much time hob-knobbing

that he was not supervising

his staff or monitoring the

costs of his project and he

ended up having massive cost

overruns and many problems

to fix.

He was so fixated on looking

like a “real’’ business

owner that he forgot to behave

like one and ended up having

huge bills with no margin to

pay them with and just started

borrowing more and more

money to stay afloat until it all

got too much and the Inland

revenue liquidated and bankrupted

him.

Instead of looking like an

average person and working

his way to being a person

who could afford to have the

lifestyle he desired, his “shortcut”

to success became a highway

to financial and personal

hell.

Although the above is an

extreme example, it is nevertheless

a real one and I see

similar cases on a fairly regular

basis.

What is so important to

remember is that the view

from the top is much more

enjoyable if you have worked

hard to climb there. You will

be able to recognise a sufferer

of magpie syndrome.

Just a thought.


20 BAY OF PLENTY BUSINESS NEWS October/November 2021

NEWSBRIEF

Council backs community

projects with funding

Thirty five community groups from across

the Western Bay of Plenty have been granted

a share of $140,000 from Council’s Community

Matching Fund. To be eligible for funding

applicants must ‘match’ Council’s financial

contribution, but unlike many other funds,

the Council’s fund values volunteer hours and

in-kind support equally with cash donations.

Council’s Community Manager David

Pearce says, “Community groups are vital

to our way of life in the Western Bay. These

groups do incredible things for our people and

our environment and don’t make a fuss about

it.” The current Covid response is a great

example. Groups like the Pacific Island Community

Trust and the Katikati Community Centre,

have become the frontline of support for

those in need. “We’re proud to support them to

do what they do best, and spread the benefits

of this fund as far and wide as possible,” says

David.

Each year $40,000 is dedicated to environmentally

focused projects. This year includes

the Wai Kokopu community group, who will

use their cash grant to purchase native plants

for Te Waihi estuary to enhance the riparian

margin.

Other funded projects include assisting the

Waihī Beach Events and Promotions group to

install accessibility mats and improve beach

access for all. The Te Puke Gymsport will be

funded to run another year of their coaching

education programme, and the Pukehina Residents

and Ratepayers Association will also

receive funding to install mara kai (vegetable

gardens) and orchards, improving their overall

resilience.

This is the fifth year of the community-matching

fund and it remains popular, with

demand from community groups exceeding

available funding. A panel of staff and Council

members consider each application according

to a set of criteria to ensure fair and objective

results.

Data centres in demand

The global pandemic

has ramped up

demand for data

centres around the

world and it’s a trend

that’s taking off in New

Zealand, too.

Bayleys’ national director

industrial, Scott Campbell

said with the uptake of

remote working thanks to lockdowns,

corporate reliance on centralised

off-site cloud computing

was amplified.

“Add in new technologies

such as 5G, artificial intelligence,

and the huge uptick in online

shopping whereby companies are

reliant on cloud-based systems

for on-demand ordering, inventory

updates and fulfilment – and

it’s no surprise that large-scale

data centres are in hot demand.

Campbell stressed that data

centres are very expensive to

build.

“They require resilient and

secure infrastructure, need to

be built at scale to achieve efficiency

and profitability, they’re

power hungry needing sophisticated

temperature control systems

and location-wise, there are

strict parameters.

“Continuity of power supply

and diesel backup generators are

vital, state-of-the-art fire detection

and extinguishing capability

are obligatory and water-tight

security – non-negotiable.

“They require well-located

large sites for efficiencies, can’t

Auckland’s northwest will be home to a number of

sophisticated data centres and there’s still more in the pipeline.

be in a flight path or near service

stations, noxious use, or

where there is any threat of natural

disaster, and they need to be

future-proofed to cater for projected

demand without becoming

obsolete over time.”

Auckland’s northwest will be

home to a number of sophisticated

data centres and there’s still

more in the pipeline. Asia-Pacific

company DCI Data Centers

has gained Overseas Investment

Office (OIO) approval to buy

land at Westgate, where it will

build its first New Zealand-based

data centre or server farm.

Microsoft gained OIO

approval for three data centres

in Auckland – believed to be in

Westgate, Hobsonville and the

North Shore.

Datagrid, a New Zealand

start-up, wants to build a hyperscale

data centre in Southland

using Manapouri-generated electricity

that is currently keeping

the soon-to-be-redundant Tiwai

Point smelter alive.

Bayleys’ global real estate

partner Knight Frank has undertaken

research into the data centre

sector across 28 key international

markets and reports strong

momentum in 2021. It said while

some markets have kept up with

demand, there’s a shortfall in

other areas.

Edge markets worth watching

internationally include Africa,

Istanbul and Warsaw which are

picked to become significant

hyperscale regions, while Mumbai

and Sydney have both performed

well with strong levels of

new supply added to the market.

As an asset class globally, it is

widely-tipped that the data centre

sector will be very fast-moving

with high levels of competition to

secure new sites.

Stephen Beard, partner and

co-head of global data centres at

Knight Frank, said: “The increase

in data centre facilities is becoming

more widely distributed,

as providers expand into new

territories to add political and

geographic diversity, as well as

meeting new data protection legislation

requirements”.

Knight Frank identified that

one factor that may slow data

centre expansion is the growing

concern and associated regulatory

response around the global

climate emergency, which calls

the likes of sustainable power

supply into question.

www.bayleys.co.nz/workplace/

industrial/insights/data-centres

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


October/November 2021 BAY OF PLENTY BUSINESS NEWS 21

Feeding the masses 2.0

Musings on luxury and leisure, post annus horribilis

We can both applaud

and decry the internet

for the effect it has on

our day-to-day lives. No-one

can deny the world wide web

has dramatically changed our

lives, from how we work and

how we live, to what we eat.

In some ways the internet is

like a wardrobe that contains

a lion, a witch, and a burger

and large fries – like it or not,

you’ll end up eating the burger

and fries eventually.

Ironically there is an interesting

parallel between the

New Testament bible and the

newer testament internet.

LUXURY & LIFESTYLE

> BY ALAN NEBEN

Alan Neben is a Mount Maunganui local and an experienced New

Zealand publisher. He enjoys organically grown whole-foods –

occasionally served with fries. alan@bopbusinessnews.co.nz

The first recalls how Jesus

miraculously fed 5,000 with

five loaves and two fish (4,000

if you prefer the gospels of

Mark and Mathew, but that’s

splitting hairs).

The second, gloriously

illustrated by the rise and rise

of Uber Eats and My Food

Bag, has similarly facilitated

miraculous growth in the

feeding of the masses – in the

Western world at least.

I prefer the loaves and

fishes variant – no credit card

needed, no added preservatives

and le poisson was pretty

much mercury-free, yet still

loaded with Omega3 – just

saying.

Food miracles have gone

mainstream. Order food on the

internet via your really-smart

phone and ‘hey presto’ it

arrives at your house, hot(ish)

and ready to eat – and here’s

the clincher – sans dirty dishes

to do.

How has fast food

become ubiquitous?

Putting “fewer dirty dishes”

aside, how has fast-food

become so ubiquitous? A key

to the success is the speed. This

food is fast. You can be eating

a three-course meal within seconds

of ordering without even

getting out of your car – now

that’s progress!

By comparison consider the

slow food movement – sorry

France, but that’s just ridiculous;

Get with the programme!

Progress is speed and deepdown

we all want to be progressive

– don’t we?

Indeed, watching a recent

episode of My 600 Pound

Life, I wondered how one

would possibly rack up such

extraordinary caloric input

fast enough if one couldn’t

source fried chicken instantly

– imagine if you actually had

to kill the chook, pluck it,

stuff it, crumb it and cook it

before you could eat? – way

too slow methinks, that’s not

progress.

But is the average modern

consumer more discerning

when it comes to what he

or she stuffs in his or her gob

compared to the somewhat

pedestrian paleo tastes of our

‘loaves and fishes’ predecessors

of year zero?

Consider the equivalent

modern-day providers of

fishes and loaves: Old Mac-

Donald doesn’t even have a

farm – he now has a complex

supply chain and an extensive

global real estate portfolio.

As for the colonel – don’t

be taken in by the white goatee

and western bow tie – he has

an ultra-secret recipe involving

12 ‘potentially’ genetically

modified herbs and spices

– we’re never really going to

know the true GMO status, cos

they’re secret.

Yup, we’re in safe hands.

Which brings me to now:

What is the single most significant

difference identified by

Kiwi’s between Level 4 lockdown

and Level 3? Access to

fast food of course. No contest.

Slam dunk.

Payment – contactless.

Nutritional value – who cares?

Dirty dishes – none.

Now that really is progress.

How flexibility impacts

the modern workforce

WORKPLACE WELLBEING

> BY CRAIG HUDSON

Craig Hudson is Xero’s managing director for

New Zealand and the Pacific Islands.

The past 18 months have

changed a lot for small

businesses in Aotearoa.

Covid-19 forced many

businesses to rapidly innovate,

shifting to online tools to

connect with their customers,

deliver sales and manage their

staff and operations.

As the country transitioned

to remote working during Alert

Level Four in March 2020, it

taught us a lot about the importance

of flexibility and agility

– lessons we’ve needed to tap

into for the latest lockdown.

Our day-to-day lives were

transformed by necessity as we

adapted to the challenges posed

by Covid-19, lockdowns, and

the need for the economy to

continue.

Business leaders had to

learn how to support their

teams remotely with new ways

of working. In order to survive,

and thrive, we had to work

smarter, not harder.

It took a global pandemic to

kickstart widespread change.

Many of the ways that Covid-

19 has changed the way we

work are here to stay.

To stay ahead of the curve,

business owners need to learn

how to support their employees

in the new nine to five.

For example, some employees

may prefer working in an

office for structure and collaboration,

while others will

require flexible working to

flourish. It’ll be challenging for

both employers and employees

to strike the right balance.

However, the businesses

that thrive in the new world

will be the ones paying attention

to how the pandemic

has affected their employees’

needs and working styles, and

then adapting accordingly.

Things won’t simply go

back to normal, employers

need to stay on top of what

employees are demanding or

they risk being left behind by

their competitors.

The way businesses hire

staff is also changing. Because

of flexible working, many

businesses are no longer limited

to the prospects in their

immediate vicinity.

In fact, we’ve just

announced a new flexible work

programme where employees

can choose to work fully

remote, from the office or in

a hybrid model. If they have a

good internet connection, they

can work from basically anywhere

if they choose.

For people in Bay of Plenty,

flexible work means they no

longer have to move to Auckland

or head overseas for a job

opportunity.

Of course, for many professions,

it’s not possible to offer

flexible working for staff. But

for who can, be sure to make

careful considerations when

deciding how to manage staff

in the world of Covid-19.

Don’t let memories of the ‘old

world’ impact your policies or

you’ll risk being left behind.

Pets in the pandemic open opportunities

for Bay of Plenty producer

A Te Puke-based pet food producer is preparing for an influx in demand for its products as

the pandemic puts pressures on global supply, national pet numbers increase, and market

trends push consumers towards higher quality, wholesome pet food.

Local brand, Wishbone

Pet Foods, entered North

Island supermarkets this

month, saying demand is

extremely high and this has led

them to recruiting more staff

and making plans to expand

their production lines, the

company said in a statement.

Wishbone Pet Foods New

Zealand Sales Manager, Paul

Mansfield said their product

has only been on supermarket

shelves for a few weeks and

already they’re being asked to

supply more.

“We’ve just landed on the

shelves of New World and Pak

n Save and our future orders

from the supermarkets’ keep

increasing. It’s fantastic to see

and shows just how high the

demand is out there for our

gourmet products,” he said.

Wishbone Pet Foods

exports its small batch, artisanal

pet food to 15 countries

around the world, all from its

Te Puke factory.

Supporting local

“One thing this pandemic has

proven to us all, is just how

important supporting local is

– not just for the business, but

more importantly, the wider

community.

“We partner with farmers

around New Zealand to supply

our pasture-raised, grass-fed

beef and lamb, making sure we

work particularly closely with

Bay of Plenty farmers to keep

it as local as possible.”

New Zealand has the second-highest

rate of pet ownership

in the world. With 64 per

cent of households owning at

least one pet – with approximately

70 per cent of those

owning either a cat or dog - our

total pet population is nudging

close to our human population,

at 4.35 million.

According to Companion

Animals NZ, this number

continues to grow along with

the rest of the world as New

Zealanders seek comfort from

their cats and dogs during the

pandemic. This has placed

pressure on pet food suppliers,

which has recently made

headlines in New Zealand for

international shortages.

Overseas demand

Demand from overseas is also

increasing the demand for

Wishbone Pet Foods products

as pet owners become more

aware of the importance of

natural ingredients for their

cats and dogs, creating a big

market opportunity for food

producers.

“Our overseas markets are

looking for a natural product

that they can trust. Every bag

of Wishbone is made with

eight superfoods and cooked at

lower temperatures to preserve

beneficial enzymes, vitamins,

and minerals and that’s something

we’re proud to be delivering,”

said Mansfield.

“All our food is gently airdried

in small batches. This

ensures not only the nutrients

in each ingredient are retained

but it also seals in the real,

wholesome flavours of our

local ingredients. The process

makes it more nutritious and

appealing for our pets.”

A recruitment campaign

to attract young talent is currently

underway, allowing

Wishbone and its co-brands to

increase production and capture

more opportunities. New

production lines are expected

to be in place at the Te Puke

factory by the end of this year.

The Te Puke factory is the

largest and most technologically

advanced dry pet food

plant in New Zealand.

During the pandemic, the

company has also ramped up

its support of animal shelters

and has donated 3,000kg of pet

food valued at $40,000 to Help

Us Help Animals (HUHA) –

enough to fill 12,000 bowls.


22 BAY OF PLENTY BUSINESS NEWS October/November 2021

Taking the leap into

public relations

In 2012, Austrian daredevil Felix Baumgartner ascended in a helium

balloon for two and a half hours, reaching “the edge of space” at an

eye-watering height of 39km. Then, he jumped.

The jump was broadcast

on YouTube across the

world. Falling from the

stratosphere, he reached a

record-breaking top speed of

1,357.64km/h, smashing the

sound barrier, but spinning

wildly out of control.

Felix survived, managing

to regain stability and deploying

his parachute after over

four minutes of freefall. He

landed – incredibly – on his

feet, safely in New Mexico.

Why did he do this? To test

the limits of human capability?

Yes. To go down in history?

Yes. But first and foremost, he

risked his life in this death-defying

stunt... to sell energy

drinks.

The jump was all part of

the Stratos Project. Conceived

by energy drink company Red

Bull, whose tagline is “gives

you wings” (see what they did

there?), it will be remembered

as one of the boldest PR stunts

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.

ever undertaken.

Red Bull is renowned for

its PR mastery. It’s widely

reported that the company

reinvest 1/3 of their profits

back into marketing, with the

Stratos Project alone costing

$65 million. This is a staggering

sum of money. So why do

they do it?

Simply because PR, also

known as public relations, is

powerful. It is employed for

any number of reasons: to save

a celebrity’s reputation, make

billions of dollars for a company,

or even win an election.

In its essence, it’s influence

through storytelling. By predicting

and understanding the

public’s psyche, a person or

organisation uses various communication

channels to build

a relationship with the public,

and uses that to frame people’s

perception of them.

This can take many forms

– a social media trend such as

the Ice Bucket Challenge, a

big stunt like Red Bull’s Stratos

Project, brand partnerships

such as New Zealand Rugby’s

recent deal with INEOS, or

celebrity affiliation, like when

Jacinda Ardern picked up US

talk show host Stephen Colbert

from the airport when he

visited New Zealand. She was

interviewed by him on the

drive home, and then invited

him to a BBQ at her house

with singer Lorde.

And the results speak for

themselves. Eight million people

watched Felix’s jump live

and more than three million

Tweeted about it.

It made headlines across

the world, turning Felix into an

overnight celebrity. He set new

records and contributed valuable

research to the scientific

community.

It’s the kind of publicity one

can only dream of. But what

made it a success? Money

PR… is powerful. It

is employed for any

number of reasons:

to save a celebrity’s

reputation, make

billions of dollars for

a company, or even

win an election. In its

essence, it’s influence

through storytelling.”

obviously helped, but plenty

of organisations have a lot of

money and never achieve this

level of buzz. So, what else?

Firstly, it was cool. Red

Bull know their target audience:

young people. Extreme

sports and websites like You-

Tube are something this group

gravitates towards.

It also had worth, providing

real, useful research into

the effects of space travel and

extreme environments on the

human body. For even the

most sceptical of people, they

can’t argue with those real-life

contributions.

Next, they hit the media

sweet spot of doing the “first,

fastest, highest”. News stories

thrive off these kind of headlines

and what makes a story

stand out. It was also exceptionally

visual, lending itself

perfectly to TV, online and

print.

Finally, it was bold. Red

Bull literally shot for the stars.

It was captivating, brave, full

of drama, and inspiring. Who

could turn their heads away

from that?

While we don’t all have

Red Bull’s budget, we can

still embody these principles

when diving into our own PR

journey. In any circumstance,

we should understand our

audience and tap into what

Photo Flickr

makes them tick. We can also

do something of worth, giving

back to our community

and contributing to the world,

as well as looking into what’s

new and innovative, even if

just on a small scale. And we

can be bold, setting high standards

for ourselves and not settling

for the mediocre.

By investing in PR, we not

only raise awareness, but we

can control the narrative. PR

attracts media attention, builds

relationships, and persuades

people. When done right, you

could still be remembered

decades later.

So, are you ready to take

the leap?

Covid lockdown effects on employment

The most recent lockdown has caused much uncertainty for

many employees around their job security. With Auckland only just

breaking free of level 4 and Delta spreading into the Waikato (a little

too close to home) this has caused many to wonder, can they cope

through another lockdown on a wage subsidy?

HUMAN RESOURCES

> BY KELLIE HAMLETT

Talent ID are Recruitment Specialists and can support you through

your recruitment process. Please feel free to talk to us about this by

calling 07 349 1081 or emailing kellie@talentid.co.nz

Many have taken the

lockdown break to

rethink what they are

doing and left many considering

making a move to another

role.

There are definitely going

to be some sectors effected

more than others through

covid lockdown, but the trend

is continuing with many businesses

busier than ever, unable

to keep with up with demand

and growth, thus requiring

more staff.

With 1,629 roles currently

advertised on trade me

throughout the Bay of Plenty,

it truly is a candidate-driven

market.

With the latest figures due

to be released from Ministry

of Social Development it will

be interesting to see, once

published, what the lockdown

effect has been on the region in

terms of unemployment.

In initial reports, it was said

that the increase was near on

680 people from across the

region during our level 4 lockdown.

Perhaps add to that the

additional people now wishing

to move from Auckland and

there may be enough to create

competition for roles.

Need for diversification

Candidates looking for work

may need to diversify and try

new industries or roles. Often

understanding that many skills

are transferable, employers

and employees alike need to

value experiences when considering

roles or candidates.

Although talent is in hot

Whilst having the right skill set is important,

having the right attitude and trainability can

be just as powerful in an application.

demand, employers realise

the value of hiring for fit, and

aren’t being drawn into the

hiring based on skills alone.

With compliance costs rising,

employers can’t afford to make

costly hiring mistakes.

Whilst having the right skill

set is important, having the

right attitude and trainability

can be just as powerful in an

application.

The seven most looked for

skills on Careers NZ relate to:

positive attitude, communication,

team work, self-management,

willingness to learn,

problem-solving skills and

resilience.

This is all considered by

the employer along with the

skill and knowledge base of a

candidate. That being said, the

pool is still small.

For employers, it’s a tough

candidate market, roles are

taking longer to fill and lack

of resource inhibits a businesses

ability to grow. We’ve

seen a lot of diversification,

streamlining of systems and

processes and thinking outside

of the box to navigate through

these unusual times.


October/November 2021 BAY OF PLENTY BUSINESS NEWS 23

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