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November 2021 - Bay of Plenty Business News

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

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<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 1<br />

NOVEMBER/DECEMBER <strong>2021</strong> VOLUME 5: ISSUE 11<br />

WWW.BOPBUSINESSNEWS.CO.NZ<br />

FACEBOOK.COM/BAYOFPLENTYBUSINESSNEWS<br />

WARNING: URGENT ACTION REQUIRED!<br />

the bay grapples<br />

with CRITICAL<br />

housing shortage<br />

INTELLECTUAL PROPERTY<br />

The need for advance legal<br />

orders in payment.<br />

P5<br />

WORKPLACE WELLBEING<br />

Establishing a supportive<br />

workplace can help your<br />

business.P17<br />

PUBLIC RELATIONS<br />

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FOR KIWI BUSINESS


<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 3<br />

Rock project boosted with Terminator<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> raised innovator and entrepreneur Angus Robson is proud <strong>of</strong> his<br />

latest creation’s link to the region, and what it is contributing to Eastern <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong>’s future.<br />

By RICHARD RENNIE<br />

Robson grew up in Edgecumbe,<br />

but has forged an international<br />

career in developing new technology<br />

and equipment for the quarry<br />

and mining industry, including founding<br />

the Matamata-based company<br />

Rocktec.<br />

Among his many achievements,<br />

Robson can also claim building the<br />

world’s largest trebuchet, a kind <strong>of</strong><br />

medieval catapult which set a new<br />

world record when it hurtled a massive<br />

steel block 15 metres in 2004.<br />

Not counted, but even more spectacular,<br />

was the Toyota Corolla that<br />

was hurtled 100 metres by the enormous<br />

device. But his latest effort will<br />

deliver some more tangible benefits<br />

to the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, despite its daunting<br />

brand name – The Terminator.<br />

The Terminator<br />

Fitted to the front <strong>of</strong> a heavy excavator,<br />

The Terminator is a high energy<br />

rock breaker that has proven instrumental<br />

in helping accelerate the pace<br />

<strong>of</strong> construction at the Opotiki Harbour<br />

development project.<br />

The project was the recipient <strong>of</strong> a<br />

$79 million Provincial Growth Fund<br />

and requires 500,000t <strong>of</strong> crushed<br />

rock to help construct the seawall<br />

approaches to the harbour project.<br />

For Robson, the project has proven<br />

an ideal opportunity to locally showcase<br />

a machine he spent over $2 million<br />

and five years developing.<br />

Four export sales <strong>of</strong> The Terminator<br />

have already been completed,<br />

including two to the United Arab<br />

Emirates and two to a vast Canadian<br />

iron ore mine.<br />

Typically, mobile rock breaking<br />

equipment is a hydraulic hammer fitted<br />

to an excavator, using technology<br />

that has been largely unchanged in<br />

over 40 years.<br />

But combining some smart engineering<br />

and patented IP, Robson’s<br />

device can deliver an impact 10 times<br />

greater than conventional mechanical<br />

breakers, and is up to 15 times more<br />

productive than those methods.<br />

In action, the machine delivers a<br />

precise, controlled percussive blow <strong>of</strong><br />

up to 4000 tonnes to the rock surface,<br />

yet puts minimal demands on the<br />

machine and its operator.<br />

“There is no movement that sends<br />

juddering, wearying actions through<br />

the excavator itself, and the force<br />

is multiple times more focused and<br />

precise.”<br />

Rotorua reaps tough rewards<br />

The Terminator is currently employed<br />

at Rainbow Quarry, <strong>of</strong>f State Highway<br />

38 south east <strong>of</strong> Rotorua. The<br />

volcanic andesite rock destined for<br />

the harbour project is among the<br />

toughest in the North Island.<br />

Quarry manager Brian Nicoll said<br />

the machine’s productivity means the<br />

quarry is now transporting 12 truck<br />

and trailer units a day <strong>of</strong> the broken<br />

and sized rock to the Opotiki harbour<br />

site.<br />

“If we did not have it operating,<br />

with this tough rock we would be<br />

lucky to be doing three truckloads a<br />

day, and this project has required a<br />

constant supply <strong>of</strong> rock every day for<br />

two years.”<br />

John Galbraith, project manager<br />

for the Opotiki harbour project, said<br />

the Terminator has proven invaluable<br />

in providing exact sized rocks for the<br />

project.<br />

“Sizing is critical, requiring five<br />

different diameters <strong>of</strong> rock, the Terminator<br />

can break the rocks down to<br />

the required sizes, that’s difficult to<br />

do for most quarry equipment.”<br />

Robson is proud to be able to keep<br />

not only the employment <strong>of</strong> The Terminator<br />

local, but also its construction.<br />

Kawerau Engineering is playing<br />

a key role in assembling and building<br />

the machines.<br />

Kawerau Engineering owner Greg<br />

Adams says The Terminator fits well<br />

with the company’s specialist engineering<br />

focus. “Some <strong>of</strong> what we do<br />

is quite Formula-1ish, quite technical,<br />

so it fits in well with our skill set.”<br />

For Robson the future sales prospects<br />

<strong>of</strong> The Terminator are looking<br />

very positive.<br />

“There are many sites around<br />

the world in need <strong>of</strong> a high energy<br />

machine like this that significantly<br />

reduces the number and size <strong>of</strong> excavator<br />

machines needed on site. We<br />

can also use it for recycling solid<br />

steel that nothing else can break<br />

economically.<br />

“In two years <strong>of</strong> steel breaking<br />

in Russia with just two hammers we<br />

saved more than 700,000 tonnes <strong>of</strong><br />

CO2 – the same amount <strong>of</strong> CO2 that<br />

the entire transport fleet <strong>of</strong> NZ emits<br />

in three weeks.”<br />

Quarry operator Brian Nicoll (left) with Terminator inventor<br />

Angus Robson. Photos/Richard Rennie.<br />

Terminator in action at Rainbow Quarry, south <strong>of</strong> Rotorua.<br />

26 Fourth Ave<br />

Tauranga<br />

0800 225 999<br />

LINKBUSINESS.CO.NZ<br />

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· No need to be a Licensed Builder<br />

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· Highly protable, approx $100k+ annually<br />

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· Solid reputation for excellent products at great<br />

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· Household needs, gifts and special occassion<br />

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· Currently run as a managed business<br />

· Strong lease, large premise, 7 days<br />

$1,785,000 Roong Specialists. 25% ROI $950,000 Daytime Cafe Dream $597,000<br />

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· Leader in their eld, great reputation<br />

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· Consistent sales year-round<br />

· Approx 35 kgs c<strong>of</strong>fee pr wk, open 7 days<br />

· Earning $320K to one working owner<br />

· <strong>2021</strong> FY Sales $1.1m +, $22k per week<br />

· Industry experience helpful but not essential<br />

· Good rent, systems, & staff in place<br />

linkbusiness.co.nz/BOP00341<br />

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grant.jacobson@linkbusiness.co.nz<br />

Specialist Flooring $289,000<br />

North Island<br />

· Importing & installing sports ooring<br />

· Contractors across NZ to complete work<br />

· Work booked 6 months ahead & beyond<br />

· Earn $100K+ to one full-time owner<br />

· Currently home-based<br />

linkbusiness.co.nz/BOP00331<br />

Camella Anselmi 0274 454 121<br />

camella.anselmi@linkbusiness.co.nz<br />

linkbusiness.co.nz/BOP00349<br />

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Protable Eatery $495,000<br />

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· No need for hospitality experience<br />

· Perfect destination, amazing waterviews<br />

· Annual sales $1M+, 42% bar sales<br />

· Working owner earned $195K for <strong>2021</strong>FY<br />

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Theresa Eagle 021 289 0949<br />

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Niche Online <strong>Business</strong><br />

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Relocatable<br />

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· Easy to run with 1.5 staff requirement<br />

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· Easy to learn, vendors <strong>of</strong>fering handover period<br />

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All LINK NZ <strong>of</strong>ces are licensed REAA08


4 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/December <strong>2021</strong><br />

www.bopbusinessnews.co.nz<br />

CONTACT INFORMATION<br />

PUBLISHER<br />

Alan Neben<br />

Ph: 021 733 536<br />

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

EDITOR<br />

David Porter<br />

Mob: 021 884 858<br />

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

PRODUCTION<br />

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

Times Media – Clare McGillivray<br />

Ph: (09) 271 8067<br />

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

ADVERTISING INQUIRIES<br />

From the editor<br />

One <strong>of</strong> the interesting reveals <strong>of</strong> our cover story this month on the<br />

region’s housing shortage woes, to me, was that I had not realised to<br />

quite what extent the region has been victim <strong>of</strong> its own success.<br />

As noted local developer<br />

Scott Adams <strong>of</strong> Carrus<br />

Corp points out, a particular<br />

problem for the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> goes back to the high<br />

cost <strong>of</strong> land. “You’ve got very<br />

rich horticultural soils here<br />

and people are starting to pay<br />

big bucks for canopy ha,” he<br />

says. “Then you have to get<br />

it rezoned, which takes time<br />

and involves a minefield <strong>of</strong><br />

national policy statements to<br />

be navigated.”<br />

All <strong>of</strong> which makes urban<br />

development hard work. And<br />

even though I’ve been in Tauranga<br />

for more than a decade, I<br />

hadn’t fully taken into account<br />

just how the <strong>Bay</strong> and its beautiful<br />

beaches are also becoming<br />

hamstrung by the region’s<br />

very appeal.<br />

Nigel Tutt, chief executive<br />

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

development agency Priority<br />

One, notes that for the last six<br />

years the growth rate has been<br />

around double the national<br />

average.<br />

And he reinforces the view<br />

that the <strong>Bay</strong>, despite its appeal,<br />

simply isn’t an easy area to<br />

develop in, with its multiple<br />

peninsulas and low-lying<br />

areas. As well, the government<br />

is placing increasing requirements<br />

on developers to carry<br />

out major abatement to protect<br />

against future flooding and<br />

other incidents.<br />

We trust our cover story<br />

helps readers to learn more<br />

about the causes <strong>of</strong> the housing<br />

shortage phenomenon<br />

that is hurting the region’s<br />

development.<br />

~<br />

Meanwhile, a recent news<br />

report has revealed that New<br />

Zealand exporters are having<br />

increasing problems in<br />

getting their products overseas.<br />

According to the latest<br />

ExportNZ Export Barometer,<br />

more than half <strong>of</strong> exporters are<br />

failing to get shipping space.<br />

There are now growing<br />

concerns in the business community<br />

that New Zealand may<br />

get left behind as the world<br />

opens up. Assuming that it<br />

does open up, <strong>of</strong> course.<br />

The most common barriers<br />

are cost and availability <strong>of</strong><br />

transport and logistics, which<br />

are being experienced by 78<br />

percent <strong>of</strong> those surveyed,<br />

up from 66 percent last year.<br />

The inability to travel because<br />

<strong>of</strong> the pandemic, with resulting<br />

closed borders and MIQ<br />

restrictions, was cited by 52<br />

percent <strong>of</strong> respondents.<br />

Recall if you will that the<br />

<strong>Bay</strong> is one <strong>of</strong> New Zealand’s<br />

leading export centres. Many<br />

in the business community<br />

are anecdotally reporting the<br />

problems being suffered by<br />

exporters, with standard items,<br />

such as containerisation costs,<br />

having soared.<br />

According to the ExportNZ<br />

David Porter<br />

survey, which took in 300<br />

exporters, businesses are<br />

adjusting to the difficulties<br />

with 51 percent reporting<br />

an increase in export orders.<br />

That’s up from 36 percent<br />

last year and 49 percent<br />

pre-pandemic.<br />

However, 32 percent<br />

reported a fall in export<br />

orders, down slightly on<br />

last year. According to the<br />

report, the impact <strong>of</strong> global<br />

freight congestion is “staggering”<br />

for Kiwi businesses<br />

with increased logistics costs,<br />

delayed transport and some<br />

exporters simply unable to get<br />

shipping space.<br />

BUSINESS DIRECTOR<br />

Pete Wales<br />

Mob: 022 495 9248<br />

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

ELECTRONIC FORWARDING<br />

EDITORIAL:<br />

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

david@bopbusinessnews.co.nz<br />

GENERAL INQUIRIES:<br />

info@bopbusinessnews.co.nz<br />

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

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

between Waihi and Opotiki including Rotorua<br />

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

NEWSBRIEF<br />

Inspired circuit breaker welcomed by home builder<br />

“Inspired” is how leading<br />

national home builder Platinum<br />

Homes describes the<br />

Government’s announcement<br />

on freeing up urban land for<br />

housing.<br />

“We desperately need a circuit<br />

breaker to get more Kiwi<br />

families into homes and this<br />

could well be it,” says Chief<br />

Executive Dave Andrew.<br />

His company alone has<br />

plans to build 300 homes<br />

across the country in the next<br />

year – a number that could<br />

easily double – if only there<br />

was more land available.<br />

“This initiative, while it<br />

will obviously take time to be<br />

implemented, is just what the<br />

country needs.<br />

“If we could bundle this up<br />

with some improvements to<br />

building consent timelines and<br />

also address some <strong>of</strong> our current<br />

supply chain issues then I<br />

see the potential for some real<br />

progress in the home building<br />

sector,” Dave Andrew says.<br />

Platinum Homes currently<br />

has more than 100 homes<br />

waiting on building consents<br />

from councils around the<br />

country.<br />

“As if that wasn’t bad<br />

enough, we also face delays<br />

for some timber products,<br />

internal wall linings, tapware<br />

and other products, and<br />

increasing costs <strong>of</strong> our building<br />

supplies.<br />

“In some cases that<br />

means we need to steer clients<br />

towards more available<br />

choices. In other cases, where<br />

a client has their heart set on<br />

a particular feature, we have<br />

to explain that there could be<br />

a wait <strong>of</strong> several months, until<br />

we get supplies into the country<br />

or out <strong>of</strong> a New Zealand<br />

factory.<br />

“My only hope is, having<br />

reached this agreement<br />

between the Government<br />

and the National Party, that<br />

each and every politician in<br />

the House will do their bit to<br />

make sure that the momentum<br />

that has got us this far will<br />

carry on until the legislation is<br />

enacted. Only then will New<br />

Zealand be able to reap the<br />

benefits. This is a great start.”<br />

www.bopbusinessnews.co.nz<br />

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

309/424 Maunganui Road,<br />

Mount Maunganui, 3116<br />

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

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

print media services.<br />

I don’t think [housing]<br />

prices will fall, but<br />

you’ll have a better<br />

range to choose from by<br />

summer.” – Tony Alexander<br />

Development is not easy. You’ve got some<br />

pretty low-lying areas as well as<br />

peninsulas. And we’ve also<br />

collectively failed to build up<br />

as well as out.” – Nigel Tutt<br />

The <strong>Bay</strong> grapples with critical housing shortage – page 7<br />

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<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 5<br />

Global market shares hit a speed bump<br />

Investment market update (for the quarter ended 30 September, <strong>2021</strong>)<br />

Since the lows <strong>of</strong> the<br />

Covid crash in late<br />

March 2020 it has been<br />

an exceptional run for global<br />

share markets. That run hit<br />

a significant speedbump in<br />

September.<br />

With many markets near<br />

record highs and valuations<br />

generally l<strong>of</strong>ty relative to history,<br />

they were susceptible<br />

to a pullback. To emphasise<br />

just how unusually calm it<br />

had been, until the last day <strong>of</strong><br />

September (when the run was<br />

broken) it had been 236 trading<br />

days since the MSCI World<br />

Index had seen -five percent<br />

drawdown. That’s the second<br />

longest period in the past 25<br />

years. Markets can sometimes<br />

be volatile, but for most <strong>of</strong> the<br />

past year (until recently) they<br />

haven’t been.<br />

New Zealand market<br />

bounces despite Covid<br />

lockdowns<br />

After being a laggard to global<br />

markets, the New Zealand<br />

share market had a strong<br />

quarter, boosted by companies<br />

reporting healthy results in<br />

August.<br />

Some may be surprised the<br />

strong performance has come<br />

at a time when we’ve been<br />

hit with the first Covid-19<br />

community outbreak<br />

in six months, and<br />

parts <strong>of</strong> the country<br />

remain in<br />

lockdown.<br />

Lockdowns<br />

will impact economically<br />

exposed<br />

sectors and companies.<br />

The good news for investors,<br />

however, is the New<br />

Zealand market is dominated<br />

by defensive companies in<br />

sectors like healthcare, utilities,<br />

telecommunications, and<br />

consumer staples. The earnings<br />

<strong>of</strong> these companies are<br />

less affected by the economic<br />

environment.<br />

The silver lining <strong>of</strong> the<br />

outbreak is that it’s been the<br />

wake-up call for many New<br />

Zealanders to get vaccinated.<br />

We no longer hold the inauspicious<br />

title <strong>of</strong> being the least<br />

vaccinated country in the<br />

OECD. This time<br />

round,<br />

New<br />

Zealand<br />

had little<br />

choice<br />

around<br />

how to<br />

respond to the<br />

Covid-19 outbreak.<br />

Widespread<br />

vaccinations<br />

are the only<br />

way to provide<br />

countries with<br />

broader choices<br />

about how to<br />

manage Covid-19<br />

in the future.<br />

Interest rate rises are<br />

coming<br />

New Zealand has been one<br />

<strong>of</strong> the first countries in the<br />

developed world to raise<br />

interest rates in a post-Covid<br />

world. On 6 October it lifted<br />

the <strong>of</strong>ficial cash rate (OCR)<br />

by 25 basis points to 0.5 percent.<br />

Our economy is facing<br />

pent-up demand and capacity<br />

constraints – the housing<br />

shortage being the most obvious<br />

example – from the tidal<br />

wave <strong>of</strong> migrants over the last<br />

eight years. In recent years,<br />

that same migration kept a lid<br />

on wages.<br />

But now, with borders shut,<br />

capacity pressures are biting<br />

and inflation risks are rising.<br />

Closed borders are also driving<br />

up import costs. New Zealand<br />

is distanced from key trading<br />

WHAT TO DO WITH YOUR MONEY<br />

> BY BRETT BELL-BOOTH<br />

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

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

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

partners and, as such, global<br />

supply chain constraints and<br />

rising freight costs have had an<br />

even greater impact here than<br />

abroad.<br />

Furthermore, unlike other<br />

countries New Zealanders<br />

have been breaking out the<br />

credit cards. Much <strong>of</strong> our<br />

strong economy is being<br />

funded by rising household<br />

debt for which we’ll eventually<br />

face a cost.<br />

The market is pricing that<br />

by May next year, we will see<br />

three more rate hikes lifting the<br />

OCR to 1.25 percent, but the<br />

environment remains fluid and<br />

subject to change. The creep<br />

<strong>of</strong> the Covid-19 delta variant<br />

south <strong>of</strong> Auckland, uncertainty<br />

over how long level 3 lockdowns<br />

will be imposed, and<br />

growing questions around the<br />

pace <strong>of</strong> the global economic<br />

recovery will all influence the<br />

RBNZ’s trajectory from here.<br />

A return to (normal)<br />

volatility<br />

Recent volatility has broken<br />

a period <strong>of</strong> unusual<br />

calm in markets. Whilst we<br />

remain comfortable retaining<br />

a healthy weighting <strong>of</strong> risk<br />

assets (shares, property) in<br />

portfolios, we also believe the<br />

easiest gains in this cycle are<br />

likely behind us and that future<br />

returns will be lower than what<br />

we’ve seen over recent time.<br />

This column is general in<br />

nature and does not take any <strong>of</strong><br />

your personal circumstances<br />

into account. For personalised<br />

financial advice, contact Forsyth<br />

Barr for an overview <strong>of</strong><br />

the services we can provide.<br />

Securing yourself against the digitus<br />

impudicus in IPONZ proceedings<br />

Picture this: You’re a<br />

local NZ business and<br />

you’ve just successfully<br />

defended an opposition to registration<br />

<strong>of</strong> your trade mark<br />

before the Intellectual Property<br />

Office <strong>of</strong> New Zealand<br />

(IPONZ). As a result <strong>of</strong> your<br />

win, the Assistant Commissioner<br />

has awarded you $2850<br />

in costs.<br />

The award is not a lot compared<br />

to what you’ve spent,<br />

but, hey, at least it’s something.<br />

Your account details have been<br />

sent to the losing party and…<br />

nothing. Silence. Your lawyers<br />

send a reminder for payment<br />

and, again, silence. The losing<br />

party has shown you its digitus<br />

impudicus. 1<br />

Frustrating, right? Annoying<br />

– sure. Especially when<br />

your lawyer tells you that the<br />

High Court process to recover<br />

the meagre sum awarded by the<br />

Assistant Commissioner will<br />

cost more than the award itself.<br />

What’s worse in your case is<br />

that the loser is based overseas,<br />

so in addition there’s the whole<br />

process – and cost – <strong>of</strong> trying<br />

to enforce the court’s order for<br />

payment in the loser’s jurisdiction.<br />

Arrghh!!!<br />

In these circumstances,<br />

your victory can seem a very<br />

Pyrrhic one, and rightly so.<br />

Fortunately, there is something<br />

parties in trade mark,<br />

patent and design proceedings<br />

before IPONZ can do to mitigate<br />

the potential for non-payment<br />

<strong>of</strong> costs. That ‘something’<br />

is obtaining security for costs.<br />

The Trade Marks Act 2002,<br />

the Patents Act 2013 and the<br />

Designs Act 1953 all have provisions<br />

2 which enable the relevant<br />

Commissioner to order a<br />

party to pay security for costs.<br />

Section 167 <strong>of</strong> the Trade Marks<br />

Act 2002, for example, states:<br />

167 Commissioner or<br />

court may require security<br />

for costs<br />

1. The Commissioner or the<br />

court, as the case may be,<br />

may require a party to legal<br />

proceedings under this Act<br />

to give security for the costs<br />

<strong>of</strong> the proceedings if satisfied<br />

that –<br />

(a) the party does not reside,<br />

and does not carry on<br />

business, in NZ; or<br />

(b) there is reason to believe<br />

that the party will be<br />

unable to pay the costs<br />

<strong>of</strong> the other party if<br />

unsuccessful in the<br />

proceedings.<br />

2. If the party does not give<br />

the security required, the<br />

Commissioner or the court<br />

may treat the proceedings<br />

as abandoned by the party<br />

and determine the matter<br />

accordingly.<br />

Looking at the scenario<br />

I started this article with, it<br />

would have been prudent for<br />

the winner to have applied for<br />

an order for payment <strong>of</strong> security<br />

for costs under section<br />

167(1)(a) if it could establish<br />

the other side did not reside,<br />

and did not carry on business,<br />

in New Zealand. In those circumstances,<br />

the Commissioner<br />

should have ordered security<br />

for costs unless there was<br />

something in the surrounding<br />

circumstances that suggested<br />

the Commissioner should not<br />

have granted the order because<br />

it would be unjust on the<br />

opponent. 3<br />

Applying may also have<br />

made the other side think twice<br />

about pursuing the opposition<br />

INTELLECTUAL PROPERTY ISSUES<br />

> BY BEN CAIN<br />

Ben Cain is a Senior Associate at James & Wells and a Resolution<br />

Institute-accredited mediator. He can be contacted at 07 928 4470<br />

(Tauranga), 07 957 5660 (Hamilton), and benc@jaws.co.nz.<br />

– or at least encouraged them<br />

to negotiate an acceptable<br />

resolution.<br />

Despite the apparent ease<br />

with which orders for payment<br />

<strong>of</strong> security may be obtained<br />

against overseas parties (I<br />

stress ‘may’), orders for payment<br />

<strong>of</strong> security in these circumstances<br />

are seemingly<br />

rare. 4 This is surprising given<br />

the number <strong>of</strong> proceedings<br />

involving overseas based vs<br />

NZ based parties, and indicates<br />

a remarkable amount <strong>of</strong> trust<br />

on NZ based parties’ behalf<br />

that their opponents will pay<br />

up if they lose. Either that, or<br />

applying for security for costs<br />

in IPONZ proceedings is an<br />

under-utilised tool. I think both<br />

are probably correct.<br />

1. Digitus impudicus (Latin) – the<br />

shameless, indecent or <strong>of</strong>fensive finger.<br />

In today’s parlance, showing the digitus<br />

impudicus is flipping the bird, or giving<br />

someone the finger.<br />

2. Section 167, Trade Marks Act 2002;<br />

section 213 Patents Act 2013; and section<br />

38, Designs Act 1953. There is no<br />

provision in the Plant Variety Rights Act<br />

1987 expressly dealing with security for<br />

costs in PVR proceedings.<br />

3. Foodstuffs (Auckland) Ltd v Homecare<br />

HCI Ltd [1991] NZIPOTM 3.<br />

4. From reviewing IPONZ decisions on<br />

NZLII.org.<br />

BEWARE OF FOREIGN IMITATIONS.<br />

There’s no shortage <strong>of</strong> great ideas in New Zealand.<br />

But for an innovative bunch, we’re not the best at<br />

realising the full potential <strong>of</strong> our innovations, particularly<br />

when exporting them.<br />

At James & Wells, we can identify your competitive<br />

edge, <strong>of</strong>fer business strategies for specific markets and<br />

help you own and leverage your intellectual property to<br />

ensure no one steals the fruit <strong>of</strong> your labour.<br />

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


6 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/December <strong>2021</strong>


COVER STORY<br />

<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 7<br />

WARNING: URGENT ACTION REQUIRED!<br />

THE BAY GRAPPLES WITH<br />

CRITICAL HOUSING SHORTAGE<br />

The <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> is by no means alone in facing a critical housing shortage – nationwide home buyers have been facing many <strong>of</strong> the same<br />

issues. But what seems to be an especial problem in the <strong>Bay</strong> is that the shortfall is very much a mixture <strong>of</strong> two key issues.<br />

One is the increasing attractiveness and prosperity <strong>of</strong> the area for incomers, and other is the difficult topography across the region,<br />

which has made housing growth expensive and difficult to produce.<br />

By DAVID PORTER<br />

As developers note, it isn’t easy to get new<br />

projects going here and some are deeply<br />

critical <strong>of</strong> past councils for not moving<br />

aggressively enough. There are some who in<br />

fact have welcomed the Labour government’s<br />

decision to put commissioners in charge <strong>of</strong> running<br />

Tauranga City Council, and many applaud<br />

the commissioners for making hard decisions<br />

about the future that had been put <strong>of</strong>f for too<br />

long.<br />

Sentiment drives prices<br />

One <strong>of</strong> New Zealand’s most astute commentators<br />

on the property sector, Tony Alexander,<br />

worked as chief economist <strong>of</strong> the BNZ for 26<br />

years before resigning in 2019 to hang out his<br />

own shingle. A widely quoted economic commentator,<br />

Alexander, recently addressed the<br />

Tauranga Property Investors Association in a<br />

Zoom seminar, and said that he expected house<br />

prices to continue going up at least into next<br />

year.<br />

“If you can get your foot on the ladder then<br />

do so,” Alexander said he advised young people.<br />

“I don’t think prices will fall, but you’ll<br />

have a better range to choose from by summer.<br />

I think there will be some extra vendors coming<br />

forward over 2022.”<br />

Alexander said he believed some house<br />

owners would be hoarding, but a lot would be<br />

thinking about selling. “The interest rates will<br />

go up a bit, and the sentiment will change,” he<br />

said.<br />

“It’s that sentiment that has driven prices<br />

up so much.” However, Alexander said, he<br />

believed prices might be flattening out and<br />

that house prices would be more interesting for<br />

buyers by the second half <strong>of</strong> next year.<br />

Major reasons for price rises<br />

Nigel Tutt, chief executive <strong>of</strong> Western <strong>Bay</strong><br />

<strong>of</strong> <strong>Plenty</strong> development agency Priority One,<br />

reinforced the view that there were two major<br />

reasons why housing growth rates had been so<br />

high.<br />

Turn to page 8<br />

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8 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/December <strong>2021</strong><br />

COVER STORY<br />

NEWSBRIEF<br />

Luxridge Apartments update<br />

The February <strong>2021</strong> Edition <strong>of</strong> the BOP <strong>Business</strong> <strong>News</strong><br />

featured Luxridge Apartments, Tauranga’s newest and<br />

most luxurious apartment project. Eight months on we<br />

contacted the developer and discussed the ups and downs<br />

<strong>of</strong> developing properties during a global pandemic. Apart<br />

from the usual feedback about Resource Consent/Resource<br />

Management delays with the local council, SSLA directors<br />

Kelly Cotter and Rob Gartshore expressed their views on<br />

meeting today’s challenges in an ever-changing global market.<br />

First the good news, apartment living<br />

is being embraced by the Tauranga<br />

community as well as the wider New<br />

Zealand housing market. Luxridge has<br />

a mix <strong>of</strong> purchasers from Tauranga, the<br />

Waikato, Auckland, Wellington, and the<br />

South Island. Sales continue to exceed<br />

expectations with 14 <strong>of</strong> the 24 apartments<br />

sold. The developer is in negotiations<br />

with three more prospective purchasers<br />

but Auckland’s Level 3 restrictions make<br />

finalizing those sales difficult.<br />

Slight changes to the architectural<br />

drawings allow for better use <strong>of</strong> modern<br />

building technology. The façade engineers’<br />

suggestions ensure a warm, dry<br />

environment in winter months with crisp,<br />

fresh living throughout the spring and<br />

summer. Luxridge Apartments are unique<br />

in that the building has an on-site fitness<br />

centre. Purchasers looking for additional<br />

workspace (without the need to leave the<br />

building) will find separate <strong>of</strong>fice/hobby<br />

rooms available; these units are adjacent<br />

to the fitness centre on Level A and two <strong>of</strong><br />

the five units are sold.<br />

Many purchasers have opted to purchase<br />

an additional storage unit and there<br />

are three different size storage units to<br />

choose from.<br />

The not so good news. As anyone<br />

keeping up with the over stretched global<br />

supply chain knows all too well, costs for<br />

building materials and appliances continue<br />

to rise. Raw materials and shipping<br />

costs are at their highest levels in over 40<br />

years. In order to meet feasibility requirements,<br />

Luxridge has instigated price<br />

increases to meet the cost blowouts. The<br />

project remains on track with demolition,<br />

site clearance, and sub-structure work<br />

expected to begin in the first half <strong>of</strong> 2022.<br />

Cotter and Gartshore acknowledge that<br />

SSLA is in the same boat as all New Zealand<br />

developers. Developers must keep<br />

the construction schedule reasonable and<br />

only promise what they can deliver. The<br />

Luxridge core team <strong>of</strong> First Principles<br />

Architects, WSP Engineering, CMW<br />

Geotech, Urban Lounge Interiors, the<br />

Longview Group, and Fluid Engineering<br />

Consultancy remain dedicated to meeting<br />

today’s challenges. The Luxridge Apartment<br />

development that BOP <strong>Business</strong><br />

<strong>News</strong> featured eight months ago remains<br />

the Luxridge <strong>of</strong> today, “Apartment Living<br />

that Aspires to New Heights”.<br />

The finished product promises to be<br />

a new landmark in Tauranga apartment<br />

living. The Tauranga CBD will benefit<br />

greatly from Luxridge and all other city<br />

apartment projects that bring life back into<br />

the city centre.<br />

For floor plans and a list <strong>of</strong> sales, visit<br />

www.luxridge.co.nz<br />

From page 7<br />

“For the last six years the growth rate has<br />

been around 3.5 percent a year – double the<br />

national average,” he said. “If you grow that<br />

quickly you’re going to have challenges.”<br />

The second reason was simply that the <strong>Bay</strong><br />

wasn’t an easy region to develop in.<br />

“It’s full <strong>of</strong> peninsulas and the geography<br />

doesn’t lend itself to your good old city type<br />

development,” he said.<br />

“Development is not easy. You’ve got some<br />

pretty low-lying areas as well as peninsulas.<br />

And we’ve also collectively failed to build<br />

up as well as out. There’s no real incentive to<br />

change away from the traditional style <strong>of</strong> housing,<br />

even though the infrastructure costs are far<br />

too low.<br />

“To build more high rises, the planning<br />

roles will need changes. But the costs for a<br />

developer are pretty much the same. Land is<br />

the big problem. Right now we can’t provide<br />

the capacity needed for what I believe is a very<br />

reasonable population growth estimate.”<br />

Perfect storm <strong>of</strong> problems<br />

Scott Adams, who heads up one <strong>of</strong> the region’s<br />

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COVER STORY<br />

<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 9<br />

Rotorua needs to boost<br />

its build rate<br />

Adams was dismissive <strong>of</strong> the past efforts <strong>of</strong><br />

many city councillors, stating that they tended<br />

to be wedded to supporting the general view<br />

<strong>of</strong> older house owners and voters calling for<br />

“fixed rates for life”.<br />

‘You end up with these guys who have no<br />

commercial experience, no qualifications and<br />

have never taken a risk,” he said. “Some <strong>of</strong><br />

them can’t read a balance sheet. You end up<br />

asking people to run a multi-billion dollar city,<br />

but there’re no meaningful decisions getting<br />

made.”<br />

Certainly not when growth and infrastructure<br />

are concerned, he said. Yet he felt the new<br />

commissioners had made some really tough<br />

decisions to move things ahead.<br />

Adams is one <strong>of</strong> the leaders <strong>of</strong> the newly<br />

formed – and somewhat property-centric –<br />

Urban Task Force, which has recently sent <strong>of</strong>f<br />

a letter to local government minister Nanaia<br />

Mahuta. It commended her for putting the<br />

commissioners in place. Adams also said<br />

he endorsed sentiment being voiced about<br />

extending the commission’s term.<br />

“I want us to go back to a democracy, but<br />

we’re not ready for that yet so we need another<br />

three years with these guys at the helm,” he<br />

said. “And hopefully that period will start to<br />

attract better quality elected members who can<br />

actually govern the city the way it needs and<br />

deserves to be.”<br />

Need for more flexibility<br />

Adams noted that one <strong>of</strong> New Zealand’s fundamental<br />

flaws was that local government was<br />

responsible for the planning and implementation<br />

<strong>of</strong> trunk infrastructure. In many other<br />

countries, it tended to be the central or state<br />

government that put the infrastructure in the<br />

ground. In addition, the Local Government<br />

Finance Act caps the amount <strong>of</strong> money that<br />

can be borrowed. “That will have to change<br />

and I think the government has realised that,<br />

and that’s why you have all these reforms coming<br />

in to change it.”<br />

Adams takes the view that a particular<br />

problem for the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> goes back to the<br />

high cost <strong>of</strong> land. “You’ve got very rich horticultural<br />

soils here and people are starting to<br />

pay big bucks for canopy ha,” he said.<br />

“Then you have to get it rezoned, which<br />

takes time and involves a minefield <strong>of</strong> national<br />

policy statements to be navigated.”<br />

His view was that it was difficult to find a<br />

Turn to page 10<br />

Bryce Heard, chief executive <strong>of</strong> the<br />

Rotorua Chamber <strong>of</strong> Commerce,<br />

said there was a definite shortage <strong>of</strong><br />

houses in Rotorua.<br />

“We’ve got to build 6,000 houses in the<br />

next 10 years, according to our numbers.<br />

But we’re currently building at the rate<br />

<strong>of</strong> about 260 a year, so we’ve got to get<br />

that up to 600 a year – and all <strong>of</strong> them are<br />

needed now.”<br />

Heard noted that one <strong>of</strong> the key elements<br />

<strong>of</strong> Rotorua topography was that<br />

the region drained into the lakes, meaning<br />

problems with storm water etc to be considered<br />

by developers.<br />

“Whenever you develop more land<br />

you have to deal with these infrastructure<br />

issues,” he said.<br />

“The existing cost <strong>of</strong> abatement is more<br />

than elsewhere, which makes it difficult to<br />

bring on big new blocks for urban development<br />

and Rotorua has been quite static in<br />

population for nigh on 30 years.<br />

“But over the last decade we’ve seen a<br />

25 percent increase and that was a bit <strong>of</strong> a<br />

shock to the system,” said Heard.<br />

“The ability to keep up with that growth,<br />

infrastructure-wise, has been stretched as<br />

escalating property prices have put even<br />

rentals beyond the reach <strong>of</strong> many here. So<br />

property prices continue to rise and government<br />

keeps putting in unsuitable changes,<br />

Bryce Heard, chief executive,<br />

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

eg capital gains tax. With landlords building<br />

almost half <strong>of</strong> the houses, government<br />

action has actually made the shortage more<br />

acute.”<br />

However, Heard said he was aware<br />

Council was trying very hard and working<br />

on measures to try and improve housing<br />

access and affordability in the region.<br />

We’re seeing increased demand from both local and out <strong>of</strong> town buyers<br />

who are seeking a change <strong>of</strong> lifestyle and the kind <strong>of</strong> freedom you can<br />

only find in the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>. Right now is the perfect time to bring your<br />

property to the market and capitalise on the newfound need for change.<br />

Combine <strong>Bay</strong>leys’ first class marketing strategies and outstanding Auction<br />

results with our extensive buyer pool and you’ve got a recipe for success.<br />

Get in touch with <strong>Bay</strong>leys today.<br />

<strong>Bay</strong>leys Tauranga 07 578 2118 | info@bayleystauranga.co.nz<br />

<strong>Bay</strong>leys Mount 07 572 1580 | info@bayleysmount.co.nz<br />

<strong>Bay</strong>leys Whakatane 07 307 2710 | info@bayleyswhakatane.co.nz<br />

<strong>Bay</strong>leys Rotorua 07 349 3210 | info@bayleysrotorua.co.nz<br />

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

ALTOGETHER BETTER<br />

Residential / Commercial / Rural / Property Services


10 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/December <strong>2021</strong><br />

COVER STORY<br />

EASTERN BAY IN URGENT<br />

NEED OF HOUSING<br />

Karl Gradon, General Manager,<br />

strategy, Toi Eda<br />

Karl Gradon, general manager for<br />

strategy at Toi EDA, noted that while<br />

the housing situation was bad in Tauranga<br />

and Rotorua, in fact the two worst<br />

towns in the region statistically were Kawerau<br />

and Opotiki.<br />

“You will not find worse conditions in<br />

the region for overcrowding and housing<br />

shortages,” he said.<br />

“It’s absolutely critical in the Eastern<br />

<strong>Bay</strong>. We have the leading rate <strong>of</strong> rheumatic<br />

fever in the country, which is a key indicator<br />

for overcrowding and dampness.”<br />

Gradon said he felt there was a huge<br />

challenge in the region, but disagreed with<br />

Kainga Ora’s decision to continued investing<br />

in Tauranga and Rotorua to try and<br />

resolve housing challenges.<br />

“We have had extensive discussions<br />

with them,” he said. While they were said<br />

to be considering the difficulties in Opotiki,<br />

there was no sign <strong>of</strong> immediate change, he<br />

said.<br />

“There’s a huge amount <strong>of</strong> [housing]<br />

work especially with the amount <strong>of</strong> work<br />

to be done and the huge jobs being created<br />

in the Eastern <strong>Bay</strong>,” said Gradon, who estimated<br />

there could be 7000 jobs created by<br />

2030.<br />

“We don’t have constructors to build<br />

them and that means we have to attract talent,”<br />

he said. “We’ve already seen where<br />

projects are bringing people home, but they<br />

don’t have anywhere to live.”<br />

Gradon noted that Opotiki was a large<br />

centre <strong>of</strong> new kiwifruit developments.<br />

“We’re asking central government to<br />

come to the Eastern BOP and provide a<br />

total support package to build new resident<br />

housing in outlying rural areas rather<br />

than focusing on problems that are real,<br />

as in Tauranga and Rotorua, but not as<br />

systematic.”<br />

From page 9<br />

way through national policies on issues such<br />

as the environment in order to carry out urban<br />

development.<br />

In the end developers might be best <strong>of</strong>f to<br />

pay massive premiums for land that is already<br />

zoned residential. “You still pay massive<br />

amounts <strong>of</strong> money and just sit there land banking<br />

for years,” he said.<br />

Smart Growth to play key role<br />

Peter Winder, who recently tendered for and<br />

took over as chairman <strong>of</strong> Smart Growth from<br />

Bill Wasley, who was appointed one <strong>of</strong> the<br />

Tauranga commissioners, said there were a<br />

number <strong>of</strong> property rising issues facing the<br />

region.<br />

Winder said these were “… fundamentally<br />

rapid population growth and high rates <strong>of</strong> previous<br />

pre-Covid immigration, as well as quite<br />

significant domestic migration towards attractive<br />

places to live, like Tauranga and the Western<br />

<strong>Bay</strong>”.<br />

The increasing acceptance <strong>of</strong> home <strong>of</strong>fices<br />

was one element he said, noting that the ability<br />

to work from anywhere means that people<br />

have more choice as to where they live than<br />

they might have had previously.<br />

“Other things for the region include the fact<br />

that we have had a very strong export economy<br />

and the resurgence <strong>of</strong> kiwifruit,” he said.<br />

“All <strong>of</strong> these things that are part <strong>of</strong> the BOP<br />

economy have contributed to that. Even in a<br />

post -covid world, where net inwards migration<br />

from <strong>of</strong>fshore has been zero, the potential<br />

for ongoing moves out <strong>of</strong> Auckland towards<br />

places like Tauranga remains high.”<br />

Winder said that, on the one hand there had<br />

been very strong growth and on the other, Tauranga<br />

and Western <strong>Bay</strong> were quite complicated<br />

and constrained in terms <strong>of</strong> their topography<br />

and the availability <strong>of</strong> lands that can sensibly<br />

be developed for housing.<br />

“And that’s not necessarily a result <strong>of</strong> crazy<br />

planning rules. It’s a reflection <strong>of</strong> the particular<br />

geology and topography and it’s part <strong>of</strong> what<br />

makes the area attractive. We have wonderful<br />

beaches and a beautiful harbour, but it’s a<br />

tricky place to build.”<br />

Tauranga City has recently written to the<br />

Ministry <strong>of</strong> the Environment and made it clear<br />

that in the medium term it is unable to meet<br />

the requirements <strong>of</strong> the national policy statement.<br />

However, said Winder, there was regular<br />

ministerial level engagement with the Western<br />

<strong>Bay</strong> and a number <strong>of</strong> groups supporting Smart<br />

Growth.<br />

The work on Smart Growth provided an<br />

opportunity to deal with a range <strong>of</strong> really complicated<br />

questions in one <strong>of</strong> the areas most<br />

challenged by growth, said Winder..<br />

“Yes, we will see progress, but it won’t be<br />

overnight.”


COVER STORY<br />

<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 11<br />

CLASSIC GROUP PARTNERS WITH NZ SUPER<br />

FUND TO TACKLE HOUSING SHORTAGE<br />

A new land development company established by Tauranga-based developer Classic Group and the $58 billion<br />

NZ Super Fund aims to use its scale and capital to increase housing supply in New Zealand.<br />

Classic Group Directors Peter Cooney and Matt Lagerberg<br />

Kaha Ake (Stronger Together) aims to<br />

develop and market a range <strong>of</strong> sites across<br />

New Zealand with a focus on meeting the<br />

demand for housing.<br />

The partnership’s first development will be<br />

in Warkworth, North Auckland delivering more<br />

than 500 lots for a new community to be developed.<br />

Over the coming years the partnership<br />

expects to achieve a development pipeline <strong>of</strong><br />

upwards <strong>of</strong> 3,000 sites for new homes.<br />

Classic Group Director Peter Cooney says<br />

the company sees this as an opportunity to find<br />

solutions to some <strong>of</strong> the property sector’s complex<br />

and historic challenges.<br />

“We’re delighted to partner with NZ Super<br />

Fund. With the long-term financial support this<br />

partnership <strong>of</strong>fers, Kaha Ake will be in a strong<br />

position to support the development <strong>of</strong> homes<br />

for Kiwis at a pace and scale that will help meet<br />

the demand for quality affordable housing.”<br />

“In a complex and challenging industry, we<br />

want to work collaboratively alongside councils<br />

and Government to develop land and enable the<br />

building <strong>of</strong> homes and communities throughout<br />

the regions, at pace and scale,” Cooney says.<br />

“We see a major opportunity ahead to<br />

address the scale and infrastructure problems<br />

bedeviling New Zealand’s property sector. NZ<br />

Super Fund shares our commercial mindset and<br />

sense <strong>of</strong> social responsibility, and we look forward<br />

to working together.”<br />

NZ Super Fund Manager, Direct Investments<br />

Hishaam Mirza says the investment is<br />

part <strong>of</strong> a broader strategy to increase the Fund’s<br />

exposure to real estate.<br />

“It’s great to be able to partner with a highly<br />

experienced New Zealand developer in Classic<br />

Group. We believe our capital can help create<br />

a break-through moment for a sector weighed<br />

down with interconnected challenges <strong>of</strong> affordability,<br />

land supply, lack <strong>of</strong> scale, poor infrastructure<br />

and compliance.<br />

“In line with our commitment to responsible<br />

investment, sustainability will be at the forefront<br />

<strong>of</strong> Kaha Ake’s approach.”<br />

The Classic Group has 25 years’ experience<br />

in the property sector and includes Classic<br />

Developments (a land development company)<br />

and Classic Builders (one <strong>of</strong> New Zealand’s<br />

largest residential builders).<br />

Its projects include a joint venture partnership<br />

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

to deliver affordable housing in Omokoroa,<br />

a 13.8 hectare joint venture project in Papamoa,<br />

Hishaam Mirza<br />

120 hectares <strong>of</strong> future development in Tauriko,<br />

a 72 lot subdivision in Queenstown, Edgewater<br />

Apartments in Hobsonville, 650 lot subdivision<br />

at Ramarama (Hunua Views) in Auckland,<br />

as well as having worked with Kainga Ora<br />

on KiwiBuild developments in Tauranga and<br />

Christchurch. All up, Classic currently has a<br />

land pipeline <strong>of</strong> approximately 3,000 sections.<br />

Kaha Ake anticipates making announcements<br />

on future development opportunities in<br />

due course.<br />

Ideal lifestyle location in the BOP close to the Katikati town<br />

centre and in easy reach <strong>of</strong> Tauranga, Auckland and Hamilton<br />

Private quality flat to gently sloping land with peaks <strong>of</strong> the<br />

harbour, quality fencing and established planting peacefully<br />

situated well <strong>of</strong>f the main road<br />

A modern yet comfortable sprawling single level home with<br />

timeless architectural and designer touches, and all the must<br />

haves/mod cons.<br />

Large Flexible floorplan provides countless desirable options<br />

suited to variety <strong>of</strong> individual, family, blended family and<br />

extended family needs<br />

Quality built-in furniture throughout<br />

Indulgent Master Suite<br />

Beautiful, yet functional, family kitchen with fully appointed<br />

scullery<br />

Mudroom entry and high spec laundry<br />

Resort style living with pool house, studio and gym, and<br />

expansive outdoor gathering options<br />

Generous internal access garage and storage or hobby room<br />

Two substantial quality sheds provide additional opportunities<br />

to work, store or play<br />

Supplementary income or lifestyle through well established and<br />

set up Avocado Orchard with strong projected productivity<br />

Full suite <strong>of</strong> Bosch and Smeg appliances throughout kitchen as<br />

well as Bosch & Miele laundry appliances<br />

Concrete indoor pool heated with an Oasis heat pump and<br />

with a Badu Swimjet system for stationary swim training<br />

Advanced pool care with Quantum Photocat Oxidation ACP<br />

Bedrooms: 5 Bedrooms<br />

and pH Perfect Doser and Pentair Chlorine Feeder<br />

Bathrooms: 3 + 1 (Studio)<br />

Manual pool cover and HVAC pool house ventilation system<br />

Powder Rooms: 2 + 1 (American Barn)<br />

Swish automated sliding door safety barrier<br />

Living: 3 + 1 (Studio)<br />

2.66 Ha <strong>of</strong> established Avocado orchard with a further 30 trees<br />

Garaging: I/A Double Garage + 77m2 American Barn + 72m2 Pole Shed<br />

on order as well as 1.15 Ha approx <strong>of</strong> Lifestyle land for<br />

Floor Area: 480 m2 House + 68 m2 Pool House + 41 m2 Studio/Gym<br />

enjoyment or further orchard development<br />

Land Area: 3.81 Ha (2.66 Ha approx. Avocados)


12 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/December <strong>2021</strong><br />

COVER STORY<br />

LOCKWOOD ATTRIBUTES COMPANY<br />

SUCCESS TO “KEEPING IT LOCAL”<br />

By DAVID PORTER<br />

One <strong>of</strong> New Zealand’s most recognised<br />

and trusted brands, Lockwood Homes,<br />

now in its 70th year, believes one <strong>of</strong> the<br />

secrets to its longevity has been its focus on<br />

local sourcing.<br />

“In a world where many companies rely on<br />

global manufacturing chains to help produce<br />

their products, our capability to source our<br />

main manufacturing element – timber – has<br />

seen our business thrive,” said managing director<br />

Andrew La Grouw.<br />

La Grouw told <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> <strong>News</strong><br />

the company originally got underway in Wellington,<br />

but soon realised Rotorua was becoming<br />

the North Island’s major timber town The<br />

nearby pine forest plantations and timber<br />

mills <strong>of</strong> Kaingaroa Forest were the key driver<br />

for Lockwood to establish manufacturing in<br />

Rotorua.<br />

“Not only have we forged an enduring relationship<br />

with local suppliers, but the advantages<br />

<strong>of</strong> local sourcing have become even more<br />

relevant during these Covid times, allowing us<br />

to increase our manufacturing capacity to meet<br />

current demand.”<br />

A family business<br />

La Grouw is a grandson <strong>of</strong> one <strong>of</strong> the two<br />

Dutch founders who set up the company in<br />

Rotorua in 1951. As one <strong>of</strong> New Zealand’s<br />

most iconic innovative manufacturing success<br />

stories, family-owned Lockwood has proven to<br />

be as enduring as it is successful.<br />

La Grouw acknowledged that a few decades<br />

there were a few issues with some residents<br />

regarding Lockwood Homes as somewhat<br />

“noisy” because <strong>of</strong> its innovative system for<br />

locking the components together.<br />

“But performance has been steadily increasing<br />

over time,” he said. “We sorted out the noise<br />

issue about 20 years ago. And we’re constantly<br />

looking at how we can improve our system.”<br />

La Grouw said most <strong>of</strong> its product as manufactured<br />

in the factory to make it easy to get to<br />

residents’ sites.<br />

Humble beginnings, global presence<br />

“From our humble beginnings, with our first<br />

home built as a fishing bach in Rotorua, to now<br />

having constructed more than 50,000 Lockwood<br />

homes and buildings around the world,<br />

we are extremely proud <strong>of</strong> our rich history,”<br />

says Andrew.<br />

“Today we have a team <strong>of</strong> more than 50<br />

people at our head <strong>of</strong>fice in Rotorua where the<br />

components for our homes and buildings are<br />

still manufactured to exacting standard by our<br />

team <strong>of</strong> skilled craftsmen and women.”<br />

La Grouw said the company had supplied<br />

Lockwood homes to all corners <strong>of</strong> the globe.<br />

“But I am most proud <strong>of</strong> all the Lockwood<br />

homes that have been built in New Zealand for<br />

Andrew<br />

La Grouw<br />

kiwi families. High quality housing is important<br />

to family health and wellbeing, and I’m<br />

proud <strong>of</strong> our tradition <strong>of</strong> setting and maintaining<br />

our own quality standards. We are honoured<br />

to have shared the lives <strong>of</strong> all our employees,<br />

some <strong>of</strong> which have been with us for more than<br />

35 years.”<br />

He said the company was proud to say that<br />

the average length <strong>of</strong> time our staff members<br />

stay with was 11.5 years, compared with the<br />

national average <strong>of</strong> just four years.<br />

Lockwood has been voted New Zealand’s<br />

Most Trusted Building Brand in 2013, 2014<br />

and 2016 and runner up in 2015, 2018, 2019,<br />

2020 and <strong>2021</strong>.<br />

PROPERTY VALUATION<br />

SERVICES<br />

PLANNING.<br />

SURVEYING.<br />

ENGINEERING.<br />

ENVIRONMENTAL.<br />

We deliver land development solutions that work!<br />

Covering the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> and Coromandel - lakes to sea!<br />

Let us take the stress out <strong>of</strong> your residential and<br />

lifestyle property decisions.<br />

0800 463 378<br />

adrienne.m@propertyindepth.co.nz<br />

www.propertyindepth.co.nz<br />

40255<br />

07 262 2282<br />

tauranga@ckl.co.nz<br />

www.ckl.co.nz


<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 13<br />

Nitro Circus is coming<br />

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

Summer is on the horizon and Trustpower <strong>Bay</strong>park has just confirmed that Nitro<br />

Circus will be coming in February 2022. In the meantime, there are also other<br />

exciting events coming up for the entire family to enjoy.<br />

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

The opening night has been<br />

delayed due to alert level restrictions,<br />

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

will start <strong>of</strong>f the season with a bang<br />

by combining Opening Night with<br />

Fireworks on Saturday 6 <strong>November</strong>.<br />

This will be followed by a line-up <strong>of</strong><br />

race nights throughout the season to<br />

keep the speed demons entertained.<br />

All speedway dates can be found at<br />

www.bayparkspeedway.co.nz<br />

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

valued clients? Or how about coming<br />

to Speedway for your Staff Christmas<br />

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

exclusive, spacious corporate boxes<br />

with balconies to entertain up to 20<br />

guests comfortably. These boxes are<br />

also available on an annual basis to<br />

cover the entire Speedway Season.<br />

Please contact us on events@bayvenues.co.nz<br />

or 07 577 8593 for more<br />

information.<br />

7 Days Live<br />

The 7 Days Live tour is now <strong>of</strong>ficially<br />

an annual tradition. And this<br />

year our (not very) brave comedians<br />

will smash out 13 shows in 13 towns<br />

around New Zealand with (nearly) no<br />

fear at all. Jeremy Corbett, Dai Henwood,<br />

Paul Ego and the team jump in<br />

a van and bring much-needed comedy<br />

to the nation, laughing directly in the<br />

face <strong>of</strong> Covid-19 (wearing a mask <strong>of</strong><br />

course).<br />

Don’t miss this show – part quickfire<br />

stand-up from the country’s best,<br />

on 16 December and part a completely<br />

un-censored and un-edited 7<br />

Days show, it’s exactly the medicine<br />

we need in <strong>2021</strong> (along with the vaccine<br />

<strong>of</strong> course). Be there to see our<br />

comedy heroes, live!<br />

Polo in the <strong>Bay</strong><br />

New Mount Maunganui event, Polo<br />

in the <strong>Bay</strong>, has this week chosen to<br />

postpone their inaugural event to January<br />

22, 2022.<br />

Event Director, John Guise, says<br />

that a challenging year has just got<br />

even harder for the entire events<br />

industry.<br />

“Every organiser is faced with<br />

incredibly difficult decisions right<br />

now and after a year like 2020, we<br />

were all hoping these disruptions<br />

might be behind us for this Summer.”<br />

Every year, we’ll be kicking <strong>of</strong>f<br />

the Mount Maunganui Summer with<br />

fast-paced entertainment and firstclass<br />

hospitality – it’s a weekend<br />

that’s hard to resist.<br />

The inaugural event features some<br />

<strong>of</strong> New Zealand’s most talented Polo<br />

players going to head-to-head in their<br />

provincial colours and this fresh Polo<br />

format brings you closer to the action<br />

– there isn’t a bad seat in the house.<br />

We have a range <strong>of</strong> hospitality<br />

options available, from a casual picnic-style<br />

Family Zone, to Private<br />

Marquees and the VIP Pavilion with<br />

specialty bars, catering and lounge<br />

areas.<br />

Polo in the <strong>Bay</strong> features include:<br />

• Movember Brunch (R18)<br />

• The Polo Lawn (R18)<br />

• VIP Pavilion (R18)<br />

• Private Marquees (R18 – limited<br />

spaces)<br />

• Free Family Zone (unlicensed – all<br />

ages)<br />

• Après Polo – Eat + Drink + Play at<br />

our Official Dining Precinct<br />

Tickets available from www.<br />

polointhebay.co.nz.<br />

Nitro Circus<br />

Buoyed by the strong momentum<br />

<strong>of</strong> the Covid-19 vaccination rollout,<br />

action sports leaders Nitro Circus<br />

have revealed plans to return to<br />

Tauranga’s Trustpower Stadium, for<br />

the first time in 5 years, on Monday<br />

Feb 7th, 2022. This announcement is<br />

part <strong>of</strong> a comprehensive<br />

tour <strong>of</strong> outdoor stadiums<br />

across New Zealand &<br />

Australia in early 2022.<br />

This news comes with<br />

Nitro Circus is in the middle<br />

<strong>of</strong> a six month, 27-city<br />

North American tour which<br />

stretches from coast to coast,<br />

hitting major markets such as<br />

Seattle, Phoenix and Nashville.<br />

The brand has emerged from the<br />

lockdown challenges <strong>of</strong> 2020 in a<br />

position <strong>of</strong> strength: its total number<br />

<strong>of</strong> shows worldwide this year marks<br />

an increase <strong>of</strong> more than 33% from<br />

2019.<br />

One <strong>of</strong> the biggest names in action<br />

sports, and the face <strong>of</strong> Nitro Circus’<br />

2022 tour, is Sunshine Coast’s Ryan<br />

Williams. The BMX & scooter world<br />

champion and three-time X Games<br />

gold medalist is thrilled to ride for<br />

his home country fans once again.<br />

“It’s crazy that after touring Australia<br />

and New Zealand every year since<br />

2010, it will have been three years<br />

since we have gotten to do a show<br />

in front <strong>of</strong> the best action sports fans<br />

in the world. We love New Zealand<br />

crowds!” Williams says. “Now we<br />

are primed to send it! We’ve used that<br />

time at home to work up a bunch <strong>of</strong><br />

insane new tricks and trust me, you do<br />

not want to miss these shows!”<br />

In the decade since launching its<br />

touring business, which debuted in<br />

Australia and New Zealand, Nitro<br />

Circus has gone on to perform on<br />

five continents and established itself<br />

as a major global live event property.<br />

To date, Nitro Circus has performed<br />

more than 360 shows in over 30 countries<br />

worldwide in stadiums, arenas<br />

and festivals with an exciting blend <strong>of</strong><br />

action sports excitement, jaw-dropping<br />

stunts and outrageous fun.<br />

Tickets go on sale Friday <strong>November</strong><br />

12th through nitrocircus.com.<br />

It’s never too early to start<br />

thinking about Christmas<br />

It’s that time <strong>of</strong> year again when your<br />

work social committee starts to brainstorm<br />

ideas for your staff Christmas<br />

party. What have we done before?<br />

How can we make it better than last<br />

year?<br />

Sure you could invite everyone<br />

to the conference room for drinks, or<br />

go out for dinner – but that’s all been<br />

done before. Why not celebrate the<br />

festive season at <strong>Bay</strong>park this year<br />

and indulge in a delicious Christmas<br />

feast created by our award-winning<br />

Executive Chef? Why not make your<br />

party extra special and visit <strong>Bay</strong>Station<br />

and enquire about Drift-triking<br />

or Blokarts? To book or make an<br />

enquiry call 07 577 8560 or email<br />

events@bayvenues.co.nz.<br />

Tauranga’s Premier Venue<br />

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

Premier Venue for conferences, meetings,<br />

entertainment and exhibitions.<br />

Offering a complete package in one<br />

convenient location that features state<br />

<strong>of</strong> the art meeting rooms, in-house<br />

catering, audio visual services, pr<strong>of</strong>essional<br />

conference organiser (PCO)<br />

and marketing/promotional services.<br />

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

visit www.trustpowerbaypark.co.nz or email events@bayvenues.co.nz.<br />

Legal support from ‘I do’ to ‘I don’t’<br />

From prenups to childcare arrangements to divorce, Holland Beckett Law’s newest Associate,<br />

Katherine Dyer, can support you through it all.<br />

A Family Law specialist, Katherine’s ability to deal with complex matters<br />

sets her apart. Katherine started at Holland Beckett as a summer clerk<br />

in 2014, before joining permanently as a graduate two years later.<br />

She is a very well-regarded family law specialist, with regular Court<br />

experience and a unique ability to deal with challenging cases.<br />

Katherine is passionate about achieving practical solutions for her<br />

clients, including through out-<strong>of</strong>-court dispute resolution methods,<br />

where possible.<br />

Her extensive experience includes contracting out agreements<br />

(“prenups”), post-separation relationship property disputes,<br />

care <strong>of</strong> children and guardianship issues, family violence<br />

matters, estate claims, adoptions, and dissolutions<br />

<strong>of</strong> marriage (“divorce”).<br />

Congratulations on your promotion, Katherine.<br />

Katherine Dyer<br />

Associate<br />

DDI 07 928 7095<br />

katherine.dyer@hobec.co.nz<br />

hobec.co.nz<br />

HOBJ200022–BN


14 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/December <strong>2021</strong><br />

NEWSBRIEF<br />

Flooding maps updated<br />

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

Newly updated flood hazard maps for rural<br />

areas and small settlements in the Western<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> have been published<br />

recently.<br />

The new maps have been produced to provide<br />

up-to-date and accurate flooding information<br />

for properties outside Waihī Beach, Katikati,<br />

Ōmokoroa and Te Puke.<br />

Western <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> District Council’s<br />

Group Manager for Policy, Planning and Regulatory<br />

Services, Rachael Davie says, “For most<br />

rural areas and some small settlements, it is the<br />

first time that flood modelling has been used,<br />

and the team have been able to correct a number<br />

<strong>of</strong> historical inaccuracies in this process.”<br />

The possible effects <strong>of</strong> climate change<br />

have also been taken into account, including<br />

increased rainfall intensity and sea level rise<br />

(where applicable).<br />

Rachael says, “People looking to make<br />

informed decisions about building, buying property<br />

or preparing for natural hazards will now<br />

have updated information to work with.”<br />

The updated maps will be<br />

• shown on relevant property files and Land<br />

Information Memoranda (LIMs);<br />

• used when processing building and resource<br />

consents; and<br />

• used for updating the District Plan when its<br />

review starts in 2022.<br />

The new flood maps, along with other natural<br />

hazards which have already been identified,<br />

can be viewed on Council’s natural hazards<br />

webpage with an interactive online map. Any<br />

one can browse the map or search for a specific<br />

property by address or Parcel IDs. Affected<br />

property owners have also been notified by mail.<br />

Council’s work to update flooding maps<br />

for rural areas and small settlements is part<br />

<strong>of</strong> a multi-year project with the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

Regional Council. The remaining natural hazard<br />

maps for the District such as coastal erosion,<br />

coastal inundation, tsunami, landslide and liquefaction<br />

will be completed over the coming years.<br />

LOCAL GOVERNMENT<br />

Urban transformation needs<br />

to start now<br />

2060<br />

Tauranga is growing quickly and that means<br />

we need to focus our efforts on the things that<br />

need to happen to accommodate growth and<br />

safeguard our great lifestyle. For a start, we<br />

need to think about building up and not just out.<br />

And we need to think differently about how and<br />

where we live and how we get to work, school<br />

and tertiary education.<br />

By ANNE TOLLEY, Tauranga<br />

Commission Chair<br />

Anne Tolley<br />

Over the next 30 years, it’s<br />

estimated that 15,000<br />

more people will be living<br />

on the Te Papa peninsula<br />

– the area between the Harbour<br />

Bridge and Barkes Corner.<br />

That means we need to start<br />

work now to transform Te Papa<br />

into a place where more and<br />

more people can live, work,<br />

study and play.<br />

Te Papa urban transformation<br />

will take time, but the key things<br />

it will provide are:<br />

• Greater housing choices and<br />

more dwellings within our<br />

existing footprint.<br />

• People-friendly streets.<br />

• A thriving economy.<br />

• More efficient public transport<br />

and increased bus use.<br />

• More opportunities for walking<br />

and cycling.<br />

• More connected neighbourhoods<br />

with great public<br />

amenity.<br />

• A more sustainable and<br />

greener urban footprint.<br />

• Connection to a vibrant city<br />

centre.<br />

Work is underway on a number<br />

<strong>of</strong> fronts to start our urban<br />

transformation process, including<br />

plan changes to allow housing<br />

styles that are better suited<br />

to peoples’ needs, such as apartment<br />

buildings and duplexes. Of<br />

A concept drawing on how housing in central areas such as<br />

Te Papa could change gradually over time. Photo/Supplied.<br />

course, those changes have to<br />

be matched by improvements to<br />

facilities and services, so that our<br />

great city lifestyle is safeguarded.<br />

At the same time, work has<br />

started to futurepro<strong>of</strong> Cameron<br />

Road, the Te Papa’s main transport<br />

corridor, largely funded by<br />

a $45 million Government grant.<br />

The first stage <strong>of</strong> this project<br />

focuses on the section between<br />

17th Avenue and the CBD and<br />

will provide morning and evening<br />

bus clearways (with a move<br />

to dedicated bus lanes as demand<br />

increases); wider paths and better<br />

and safer crossings for pedestrians;<br />

a dedicated two-way cycle<br />

way; and more trees and planted<br />

areas.<br />

Aging water and wastewater<br />

infrastructure will also be<br />

renewed and upgraded to provide<br />

for an increasing population,<br />

while stormwater systems<br />

will undergo environmental<br />

improvements to prevent run-<strong>of</strong>f<br />

contaminating waterways and<br />

Tauranga Harbour.<br />

Stage 2 <strong>of</strong> this project will<br />

complete the job <strong>of</strong> transforming<br />

the whole corridor from the CBD<br />

right through to Barkes Corner<br />

and beyond to the Tauriko business<br />

and commercial areas.<br />

Te Papa urban transformation<br />

is a critical building block<br />

for Tauranga’s future and we’re<br />

working with our regional and<br />

central Government partners,<br />

local residential and business<br />

communities and tangata whenua<br />

to ensure we get it right.<br />

Change won’t happen immediately,<br />

<strong>of</strong> course, but the actions<br />

we are initiating now will help us<br />

accommodate growth, reduce car<br />

dependency, reduce our carbon<br />

footprint and create a more sustainable,<br />

people-friendly city.<br />

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<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 15<br />

NEW APPOINTMENTS<br />

BBN’S GUIDE TO NEW PEOPLE AND NEW ROLES ACROSS BUSINESS IN THE BAY<br />

To feature in New Appointments email us at new.appointments@bopbusinessnews.co.nz<br />

Swathe <strong>of</strong> new executive appointments<br />

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

Rebecca<br />

Dean<br />

Rebecca joins Tompkins<br />

Wake’s Tauranga <strong>of</strong>fice as a<br />

Senior Associate in the dispute<br />

resolution team. Rebecca specialises<br />

in family law, including<br />

parenting disputes, relationship<br />

property disputes, contracting<br />

out and separation agreements,<br />

protection <strong>of</strong> personal<br />

Paul<br />

O’Driscoll<br />

David<br />

Forbes<br />

David<br />

McConnochie<br />

Get the expert help you need<br />

Forsyth Barr<br />

Do you have a plan on how to best<br />

meet your future financial needs?<br />

Ensuring that you have enough income<br />

to see you through retirement and are<br />

able to manage unforeseen changes in<br />

income can be a significant challenge.<br />

At Forsyth Barr we have a dedicated<br />

team who can help you to plan, build<br />

and manage an investment portfolio<br />

to suit your needs.<br />

Fees and charges will apply if you elect to have a<br />

continuing relationship with Forsyth Barr.<br />

and property rights matters,<br />

paternity, Oranga Tamariki Act<br />

1989 matters, and family violence.<br />

Rebecca practiced in the<br />

Wellington region for just over<br />

15 years, and has extensive litigation<br />

experience, as well as<br />

regularly representing clients<br />

at mediation.<br />

In 2014 Rebecca was<br />

appointed to the Lawyer for<br />

Child panel and received regular<br />

appointments from the<br />

Court as Lawyer for Child and<br />

Lawyer to Assist.<br />

Cheryl<br />

Drought<br />

Cheryl joins Tompkins<br />

Wake’s Rotorua team, representing<br />

clients in a wide range<br />

<strong>of</strong> disputes with a specific<br />

focus on family law, particularly<br />

relationship property, settling<br />

property matters, and contracting<br />

out agreements. Cheryl<br />

Nicola<br />

Muir<br />

Brett<br />

Bell-Booth<br />

also represents clients in Family<br />

Protection Act and Will disputes<br />

(challenges to Wills and<br />

claims against estates).<br />

Cheryl enjoys working<br />

with clients to ascertain the<br />

best strategy to deal with their<br />

legal problem. She looks for<br />

practical solutions, focusing on<br />

resolving disputes before they<br />

escalate.<br />

Philip<br />

Kilpatrick<br />

Andrew<br />

Davis<br />

Karl<br />

Mabbutt<br />

Whether you need to maintain a<br />

certain level <strong>of</strong> income, or grow funds<br />

to help future generations reach their<br />

financial goals without the burden <strong>of</strong><br />

debt, we can provide the expert help.<br />

Contact us for a free review <strong>of</strong> your<br />

investments in confidence and a<br />

no-obligation discussion on how we<br />

can help you achieve your future<br />

financial goals.<br />

40 Selwyn Street, Tauranga | (07) 578 2737 | forsythbarr.co.nz<br />

TAU6195-04 © Forsyth Barr Limited April <strong>2021</strong><br />

Lauren<br />

Gamble<br />

Lauren joins Tompkins Wake’s<br />

Tauranga <strong>of</strong>fice as a solicitor in<br />

our Disputes Resolution team<br />

with a focus on family law<br />

and civil litigation. Lauren was<br />

admitted to the Bar in 2019 and<br />

before joining Tompkins Wake,<br />

previously worked at a boutique<br />

law firm in Tauranga specialising<br />

in family law.<br />

Tess<br />

Blacklock<br />

Tess joins Tompkins Wake’s<br />

Tauranga <strong>of</strong>fice as a member<br />

<strong>of</strong> our Property & Real Estate<br />

team. Tess is experienced<br />

in residential conveyancing<br />

as well as Wills, EPAs and<br />

Estates.<br />

Kirsty<br />

Wyndham<br />

Formed in 1998, the Rotorua<br />

Sustainable Charter is an<br />

incorporated society based at<br />

APR Consultants comprising<br />

many businesses committed<br />

to sustainable outcomes<br />

and to continually improving<br />

their environmental & social<br />

performance.<br />

The Rotorua Sustainable<br />

Charter is pleased to welcome<br />

Kirsty Wyndham to the team in<br />

the newly formed role <strong>of</strong> Marketing<br />

and Communications<br />

Advisor.<br />

Kirsty brings with her<br />

over 15 years <strong>of</strong> Tourism and<br />

Marketing experience, building<br />

some <strong>of</strong> the most incredible<br />

activities into must-do<br />

adventures!<br />

With a passion for doing the<br />

right thing, Kirsty is looking<br />

forward to working with Charter<br />

members with their sustainability<br />

journeys, sharing their<br />

sustainability and conservation<br />

stories. www.rotoruasustainablecharter.org.<br />

Chad Hooker<br />

<strong>Bay</strong> Venues is pleased to<br />

announce that Chad Hooker<br />

has been appointed as its new<br />

CEO. Mr Hooker has been the<br />

Director <strong>of</strong> Operations at H3,<br />

Hamilton City Council’s event<br />

and venue division since 2010.<br />

In his current role Mr<br />

Hooker has overseen the<br />

operation <strong>of</strong> FMG Stadium<br />

Waikato, Seddon Park and<br />

Claudelands Events Centre.<br />

He has also been responsible<br />

for attracting and delivering<br />

major events on behalf <strong>of</strong><br />

Hamilton including sporting<br />

world cups across rugby, football,<br />

rugby league and cricket<br />

as well as the highly successful<br />

HSBC NZ Sevens.<br />

Prior to his role with H3<br />

he spent over a decade managing<br />

shopping centres,<br />

including leading Westfield<br />

Chartwell Shopping Centre in<br />

Hamilton through two major<br />

redevelopments.<br />

Mr Hooker explains that<br />

he is “passionate about ensuring<br />

that public venues like<br />

those operated by <strong>Bay</strong> Venues<br />

deliver exceptional benefits<br />

for the community. That they<br />

enhance Tauranga as a great<br />

place to live and provide economic<br />

opportunities to local<br />

businesses.<br />

“ My focus will be on supporting<br />

the <strong>Bay</strong> Venues team<br />

to further develop as a high<br />

performing team, so that they<br />

can continue to provide the<br />

best possible service to <strong>Bay</strong><br />

Venues customers and the<br />

community.”<br />

“<strong>Bay</strong> Venues operate a wide<br />

range <strong>of</strong> community facilities<br />

and I am excited to see how we<br />

can best maintain and develop<br />

them for the long term. As Tauranga<br />

grows, I look forward to<br />

exploring opportunities for<br />

<strong>Bay</strong> Venues to work with Tauranga<br />

City Council and the<br />

wider community to contribute<br />

to the ongoing development <strong>of</strong><br />

the city and region.”<br />

Simon Clarke, <strong>Bay</strong> Venues<br />

Board Chair, says that ‘the<br />

Board are excited about the<br />

experience and leadership that<br />

Chad will bring to the organisation.<br />

He has a strong balance<br />

<strong>of</strong> commercial and community<br />

experience and his enthusiasm<br />

for the industry is evident. We<br />

are confident that he will lead<br />

the <strong>Bay</strong> Venues team positively<br />

as kaitiaki (guardians)<br />

<strong>of</strong> Tauranga’s key community<br />

facilities.”<br />

“The Board would also<br />

like to acknowledge and thank<br />

Adam Ellmers for stepping<br />

into the CEO role over the last<br />

few months. He has done a<br />

great job and we look forward<br />

to his ongoing leadership contribution<br />

as he returns to the<br />

Chief Financial Officer role on<br />

Chad’s arrival.”<br />

Mr Hooker will start with<br />

<strong>Bay</strong> Venues on Monday 8<br />

<strong>November</strong> <strong>2021</strong>.<br />

Greg<br />

Stephenson<br />

Tauranga-based legal<br />

tech start-up, LawVu, has<br />

announced the appointment <strong>of</strong><br />

Greg Stephenson in their newly-created<br />

role <strong>of</strong> Chief Marketing<br />

Officer.<br />

Greg joins LawVu with an<br />

extensive background in marketing<br />

across global markets<br />

for companies such as LinkedIn,<br />

Vodafone, and Garmin.<br />

With an appetite for the ambitious<br />

start-up scene in NZ, he<br />

will play a key role in helping<br />

LawVu in its global expansion.


16 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/December <strong>2021</strong><br />

NEWSBRIEF<br />

EDS attack on forestry ignores<br />

threat <strong>of</strong> climate change<br />

The forest industry is calling a media statement from<br />

the Environmental Defence Society an ill-informed<br />

rant against forestry which ignores the threat <strong>of</strong> climate<br />

change.<br />

Forest Owners Association President, Phil Taylor, says<br />

he would not have expected what amounts to a denial <strong>of</strong><br />

the significance <strong>of</strong> climate change from an environmental<br />

organisation.<br />

“EDS acknowledges the need to address climate<br />

change. But then EDS condemns the central role plantation<br />

forests must play over the next three decades if we<br />

hope to get New Zealand to carbon neutral. At the moment,<br />

our forests <strong>of</strong>fset a full third <strong>of</strong> all New Zealand industry<br />

and agriculture emissions. As we head to the critical next<br />

three decades <strong>of</strong> the global fight against climate change,<br />

our forests will be even more important.”<br />

He says the huge challenge to reduce greenhouse gas<br />

emissions at source is vital.<br />

“But without fast growing plantation trees filling the<br />

carbon gap the task would be politically and technically<br />

impossible. Without more exotic forest plantings, farmers<br />

would have to severely cut back on their stocking rates to<br />

compensate. Their production would fall. Does the EDS<br />

want that?”<br />

Phil Taylor says the EDS suggestion to plant more<br />

native trees for carbon sequestration may make sense –<br />

but only in the long term.<br />

“The climate scientists tell us we need real action<br />

now to avoid a runaway catastrophe. We don’t have long<br />

enough to wait for native trees to lock up carbon from the<br />

atmosphere. Pines and eucalyptus do it in years. Even the<br />

fastest growing indigenous trees take decades.”<br />

“Indigenous forest carbon sequestration hardly registers<br />

by 2050. It can only become significant in the 22nd<br />

century. To change the Emissions Trading Scheme to<br />

favour carbon in native trees, as the EDS wants, flies in the<br />

face <strong>of</strong> science and jeopardises any attempts to get New<br />

Zealand to Carbon Zero by 2050”.<br />

Phil Taylor says the EDS complaint about foreign<br />

investment in forestry is also misplaced.<br />

“EDS claims <strong>of</strong> unspecified ‘vast swathes’ <strong>of</strong> overseas<br />

investment reads as cheap xenophobia. Most overseas<br />

interests in forestry in New Zealand earn no carbon credits.<br />

Forests earn their own way economically.”<br />

“Forests are also vital for the developing bio-economy<br />

in New Zealand to replace unsustainable use <strong>of</strong><br />

petrochemical derived products. And it can be done over<br />

a small area. It’s not ‘swathes’ as EDS would have us<br />

believe. The 380,000 extra hectares <strong>of</strong> new planting the<br />

Climate Change Commission envisages would take less<br />

than four percent <strong>of</strong> the current hill country farm estate<br />

out <strong>of</strong> farming – and the least productive farmland at that.”<br />

Phil Taylor says large and small exotic forests harbour<br />

substantial intrinsic biodiversity, contrary to EDS’s claim.<br />

“EDS says it supports farming, while it attacks forestry.<br />

The fact is that there is at least as much indigenous habitat<br />

in our forests as there is on farmland.”<br />

Christmas entertaining and<br />

gifts: What’s tax-deductible<br />

A wonderful Christmas season is almost here, and Christmas parties are being planned. For<br />

any business, these times are just as important as the busiest time <strong>of</strong> the year.<br />

Entertainment expenses<br />

have always been a bit<br />

<strong>of</strong> an ambiguous area for<br />

business owners and in-house<br />

accountants. If I was to give<br />

one suggestion it would be<br />

this: what may’ve been tax-deductible<br />

in the past, may not be<br />

anymore, things have changed.<br />

Entertainment is part <strong>of</strong><br />

your business, and this is fully<br />

accepted by the IRD. You can<br />

claim the cost <strong>of</strong> entertainment<br />

to build up business contacts,<br />

keep your employees happy,<br />

or promote your goods or<br />

services.<br />

When you are spending<br />

money on entertainment, a<br />

good question to ask is this: If I<br />

spend this money, will I generate<br />

extra income? If the answer<br />

is yes, you may be able to get a<br />

tax deduction.<br />

You can claim 100 percent<br />

<strong>of</strong> food and drinks you provide<br />

at a conference, education<br />

course or similar event<br />

that lasts for four consecutive<br />

hours or more.<br />

You can claim 100 percent<br />

<strong>of</strong> the food or drinks<br />

if it’s a light meal, and consumed<br />

as part <strong>of</strong> the manager’s<br />

employment duties. For<br />

example: Once a month, senior<br />

managers at A2Z Ltd meet in<br />

their executive dining room<br />

to review the month’s figures.<br />

The light meal <strong>of</strong> sandwiches<br />

and fruit is 100% deductible.<br />

You can claim 100 percent<br />

if you supply entertainment<br />

to promote your products or<br />

services, for example if you<br />

run a networking event with<br />

the purpose <strong>of</strong> promoting your<br />

business.<br />

Another category <strong>of</strong> entertainment<br />

expenses is only 50<br />

percent deductible because<br />

they have a significant private<br />

element. Even if you think<br />

that the private element was<br />

more or less than 50% <strong>of</strong> the<br />

expense, you can only claim<br />

50 percent as a deduction.<br />

Corporate boxes, marquees,<br />

tents or similar exclusive areas<br />

at cultural, sporting events<br />

or away from your business<br />

premises, are only 50 percent<br />

deductible.<br />

You can deduct only 50<br />

percent <strong>of</strong> the cost <strong>of</strong> food and<br />

drink you provide at your business<br />

premises, it may be a celebration<br />

meal or a party. This<br />

rule applies whether the entertainment<br />

is provided to staff or<br />

to guests invited from outside<br />

the business. Example: A2Z<br />

Ltd holds a Christmas party<br />

for its employees at work. The<br />

company can claim 50 percent<br />

<strong>of</strong> the costs.<br />

Another area worth your<br />

TAXATION<br />

> BY VALERIE ROWE-MITCHELL<br />

Accounting and other money matters with Valerie Rowe-Mitchell,<br />

owner <strong>of</strong> Emerald <strong>Business</strong> Advisers. Valerie can be reached on<br />

07 579 5777 or valerie@emeraldbusiness.co.nz<br />

attention is gifts <strong>of</strong> food and<br />

drink.<br />

The IRD is clear that gifts<br />

<strong>of</strong> food or drink that will provide<br />

a private benefit to the<br />

recipient and a business benefit<br />

to the taxpayer are only<br />

50 percent deductible. For<br />

example: Real estate agent<br />

Bob delivers a bottle <strong>of</strong> champagne<br />

to a client. Bob can only<br />

deduct 50 percent <strong>of</strong> the cost <strong>of</strong><br />

that bottle.<br />

Bob also sends a gift basket<br />

containing a bottle <strong>of</strong> wine,<br />

cheese and various household<br />

items such as tea towels<br />

and soaps. He can deduct the<br />

full cost <strong>of</strong> the tea towels and<br />

soap, because these items are<br />

not food and drink. But he can<br />

only deduct 50% <strong>of</strong> the cost <strong>of</strong><br />

the food items.<br />

And <strong>of</strong> course, if the<br />

expense doesn’t help your<br />

business earn extra income,<br />

it’s a private expense and no<br />

tax deduction will be allowed,<br />

even if you paid for it out <strong>of</strong><br />

your business account.<br />

Team building and social<br />

interactions with customers<br />

and suppliers are an important<br />

part <strong>of</strong> running a successful<br />

business, keep accounting for<br />

it correctly and keep building<br />

those strong successful<br />

relationships.<br />

This article is substantially<br />

based on the IRD’s Entertainment<br />

Expense guide and if you<br />

have questions or just would<br />

like to say “Hi” please email:<br />

valerie@emeraldbusiness.<br />

co.nz<br />

Covid’s ongoing impact on franchising<br />

Without question,<br />

Auckland’s continued<br />

lockdown is<br />

most acutely felt in Auckland,<br />

but if we use the old butterfly<br />

analogy, businesses based in<br />

the regions – whilst up and<br />

running – are affected to some<br />

extent.<br />

This may vary depending<br />

on their reliance on travel or<br />

tourism, whether they require<br />

stock or services, originated<br />

in or through Auckland, or if<br />

their markets are in Auckland.<br />

Clearly we have an economy<br />

that is running in different<br />

gears.<br />

These impacts and influences<br />

are not unique to any<br />

particular business model, but<br />

there are some additional fac-<br />

FRANCHISING<br />

> BY NATHAN BONNEY<br />

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

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

tors from the ongoing lockdown<br />

that specifically affect<br />

franchised businesses.<br />

Uncertainty creating<br />

paralyses<br />

The greatest difference I have<br />

seen during this Auckland<br />

level 3 lockdown and previously<br />

is the influence on business<br />

confidence.<br />

During previous lockdowns,<br />

we noted potential<br />

franchise business purchasers<br />

either holding <strong>of</strong>f on purchasing<br />

decisions or not proceeding.<br />

This behaviour based on<br />

apprehension has resurfaced<br />

and is definitely stronger<br />

amongst investor and potential<br />

franchisees, across the country.<br />

More people are deferring<br />

decisions.<br />

What is very different this<br />

time around is a universal<br />

inability to plan and execute<br />

business plans.<br />

Franchisees and franchisors<br />

alike are feeling less confident<br />

around what the future holds<br />

and unable to make decisions<br />

and or execute business plans.<br />

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

country being in different levels<br />

is also being felt as Auckland<br />

based franchisors are<br />

unable to travel. The lack <strong>of</strong><br />

clarity and lack <strong>of</strong> plan has<br />

created a continuing holding<br />

pattern for many.<br />

Additionally, and extremely<br />

frustrating for franchisees and<br />

franchisors alike, is the lack<br />

<strong>of</strong> control or ability to solve<br />

issues themselves.<br />

Franchisors usually operate<br />

within a framework where<br />

they have the answers for their<br />

franchisee’s problems based<br />

on tested experience and processes.<br />

Currently they don’t<br />

have solutions for franchisees<br />

not being able to trade,<br />

and many <strong>of</strong> the implications<br />

derived from that situation.<br />

Regional movement to<br />

intensify<br />

My enthusiasm for the franchise<br />

business model and its<br />

application to regional New<br />

Zealand is extremely well documented<br />

and I have written on<br />

it on several occasions. Lower<br />

housing prices, lower rentals,<br />

less competition combined<br />

with the opportunity to achieve<br />

a desirable lifestyle contribute<br />

to the attractiveness and<br />

success rate <strong>of</strong> many regional<br />

franchised businesses.<br />

There is plenty to indicate<br />

that regions are doing well and<br />

I fully expect that when people<br />

can exit Auckland, the numbers<br />

doing so will increase.<br />

As discussed previously, many<br />

will need to find business<br />

opportunities in the regions<br />

and will look towards franchising<br />

as a safer option.<br />

International brands<br />

expansion into New<br />

Zealand<br />

The entry into New Zealand<br />

and growth <strong>of</strong> international<br />

Franchisees and franchisors alike are<br />

feeling less confident around what<br />

the future holds and unable to make<br />

decisions and or execute business plans.<br />

franchised brands and system<br />

is one area that remains difficult<br />

to predict.<br />

Six months ago, New Zealand<br />

was perceived internationally<br />

as a safe place and<br />

open for business. We have<br />

been working with a number<br />

<strong>of</strong> international brands to<br />

enter or expand into the New<br />

Zealand market and there has<br />

certainly been a desire to do<br />

business here.<br />

But as other countries open<br />

up their economies and New<br />

Zealand stalls, that’s perhaps<br />

not the current view.<br />

Additionally, restrictions<br />

on travel into the country seriously<br />

retard international business<br />

access.<br />

At the same time as many<br />

businesses and business models<br />

including franchising are<br />

not without challenges, past<br />

experience and the bounce<br />

back from 2020s’ lockdowns<br />

have demonstrated that the<br />

systemised approach to business,<br />

fast track start-up and<br />

ramp-up models <strong>of</strong> franchising<br />

will see continued growth in<br />

this sector.


<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 17<br />

How to get back in touch with the<br />

reason why you got into business<br />

There’s a reason why you’re in business. It’s what makes you turn up<br />

each day and keep pushing. Maybe it’s the freedom <strong>of</strong> being your<br />

own boss, the satisfaction <strong>of</strong> helping others, the thrill <strong>of</strong> upskilling, or<br />

even just the life your job affords you.<br />

Self-employment can be a<br />

rewarding, but demanding<br />

way to make a living.<br />

It takes persistence, dedication<br />

and resourcefulness to<br />

work for yourself and build a<br />

successful business.<br />

Sometimes, the pressure<br />

and stresses <strong>of</strong> work can get<br />

in the way <strong>of</strong> why you started<br />

your business in the first place.<br />

It’s tough out there, and you<br />

can end up bogged down, confused,<br />

or losing touch with<br />

what’s at the core <strong>of</strong> why you<br />

do it.<br />

When I’m talking to small<br />

business owners, there are<br />

many sources <strong>of</strong> stress for<br />

small business owners. Below<br />

are just some <strong>of</strong> the key ones,<br />

but there are many ways to<br />

overcome these and reconnect<br />

with why you’re in it.<br />

I’m stressed about<br />

money<br />

The small business economy<br />

is a major part <strong>of</strong> Aotearoa’s<br />

economy, contributing more<br />

than a quarter <strong>of</strong> GDP and<br />

accounting for 97 percent <strong>of</strong> all<br />

businesses across the country.<br />

When our small business<br />

community is humming,<br />

everyone benefits. Whatever<br />

your industry, there are digital<br />

tools to help you keep better<br />

track <strong>of</strong> how your business is<br />

doing.<br />

For example, signing up<br />

to Digital Boost will give<br />

you the tools and insight you<br />

need to understand how to<br />

improve your cashflow and<br />

productivity.<br />

It’s free, only takes a minute,<br />

and can really help Kiwi<br />

small business owners with<br />

their understanding <strong>of</strong> money<br />

issues within their business –<br />

as well as the potential solutions<br />

to them.<br />

I’m working too much<br />

For many Kiwis, making the<br />

decision to become a small<br />

business owner is rooted in the<br />

ability to be their own boss and<br />

live more flexibly while working<br />

fewer hours.<br />

But this isn’t always the<br />

case – small business leaders<br />

are telling us they are working<br />

unsustainably long hours.<br />

According to a survey <strong>of</strong><br />

more than 1,000 small business<br />

owners and sole traders<br />

across Aotearoa, one in three<br />

small business owners feel<br />

they’re working too many<br />

hours a week. 1<br />

Not only this, but more than<br />

a quarter <strong>of</strong> them believe the<br />

number <strong>of</strong> hours they work per<br />

week is unsustainable. 2<br />

Overworking can have a<br />

negative impact on your wellbeing<br />

and eventually lead<br />

to burnout, not to mention<br />

directly impacting your bottom<br />

line as you’re less likely to<br />

make your best business decisions<br />

when under pressure.<br />

Digitisation is the key to<br />

unlocking time and streamlining<br />

administrative tasks, with<br />

almost half <strong>of</strong> small business<br />

owners thinking their wellbeing<br />

would be improved by<br />

making their business more<br />

productive with digital tools.<br />

I’m not looking after<br />

myself<br />

When you’re focusing on the<br />

success <strong>of</strong> your business, it can<br />

be easy to let things like your<br />

WORKPLACE WELLBEING<br />

> BY CRAIG HUDSON<br />

Craig Hudson is Xero’s managing director for New Zealand<br />

and the Pacific Islands.<br />

wellbeing fall down the priority<br />

list.<br />

But you’re not doing your<br />

best work when the pressures<br />

<strong>of</strong> life and business get too<br />

much. Now’s the time to take<br />

control <strong>of</strong> your wellbeing and<br />

the health <strong>of</strong> your business.<br />

That’s why Xero has<br />

developed the Self-Employed<br />

Check-In, a guide to improving<br />

resilience and wellbeing in<br />

the workplace with a focus on<br />

self-employed Kiwis.<br />

By establishing routines<br />

and rhythms, setting clear<br />

boundaries, managing stress<br />

with the tools available, taking<br />

small steps to look after yourself<br />

and finding support, the<br />

guide details how little steps<br />

can add up to big changes over<br />

time.<br />

I’m worried about my<br />

team’s wellbeing<br />

It’s hard to know what to do<br />

when your team is struggling.<br />

But as a manager, you need to<br />

help make sure they’re cared<br />

for and have the support they<br />

need.<br />

Establishing a supportive<br />

work environment is not<br />

only the right thing to do, it<br />

can make your business more<br />

pr<strong>of</strong>itable.<br />

There are also wellbeing<br />

support services you can <strong>of</strong>fer<br />

your team. If you use Xero,<br />

you, your employees and families<br />

have access to free confidential<br />

pr<strong>of</strong>essional counselling<br />

sessions through the Xero<br />

Assistance Programme (XAP).<br />

By understanding what’s<br />

getting in the way <strong>of</strong> your<br />

why, you can get back on track<br />

faster and reconnect with what<br />

made you start a business in<br />

the first place.<br />

It’s time to take action and<br />

reconnect with your why.<br />

Visit Xero.com/whywereinit<br />

to find out more.<br />

1. 32.7% <strong>of</strong> small business owners<br />

believe they work too many hours a<br />

week.<br />

2. 28.3% <strong>of</strong> small business owners don’t<br />

think it’s sustainable to keep working<br />

the number <strong>of</strong> hours they currently do.


18 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/December <strong>2021</strong><br />

NEWSBRIEF<br />

Council’s credit rating<br />

remains strong<br />

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

retained its strong AA credit rating.<br />

International credit rating agency Standard<br />

& Poor’s (S&P) says that despite a planned<br />

investment <strong>of</strong> $168 million in infrastructure<br />

projects during 2022-2024 (partly funded by<br />

debt) Council’s financial position is strong.<br />

Council’s AA rating gives assurance to<br />

lenders that any debt carried comes with a very<br />

low credit risk and strong capacity to repay<br />

debt drawn down for significant infrastructure<br />

or unplanned events.<br />

The score also allows Council to access<br />

lower interest rates from the Local Government<br />

Funding Agency.<br />

Council’s Group Manager Finance and<br />

Technology Services, Kumaren Perumal says a<br />

strong and stable credit rating in the face <strong>of</strong> a<br />

large capital expenditure programme, and the<br />

impact <strong>of</strong> COVID-19, shows our investment<br />

approach is sound. “We’re in a great position<br />

and the rating provides confidence that if we<br />

need to borrow funds because <strong>of</strong> an unexpected<br />

event, we can do that.<br />

“This credit rating result also provides our<br />

stakeholders and communities with assurance<br />

that Council has fiscal discipline and a prudent<br />

approach to financial management.”<br />

The S&P report says Western <strong>Bay</strong>’s regional<br />

economy is looking similarly strong.<br />

“Western <strong>Bay</strong>’s location and economic<br />

pr<strong>of</strong>ile mean it will outperform domestic<br />

peers during the COVID-19 pandemic. This is<br />

because the pandemic has had a limited effect<br />

on the largest industries <strong>of</strong> agriculture, forestry,<br />

and fishing, which account for about 20 percent<br />

<strong>of</strong> economic output. … Western <strong>Bay</strong> is also<br />

less reliant on tourism than other councils.”<br />

S&P is a global credit agency that gives out<br />

ratings based on factors such as finance, debt<br />

repayments and the economy. Their independent<br />

credit ratings indicate an organisation’s<br />

ability to take on and repay debt in the future.<br />

Suburban desk talk<br />

The way we access and use workplaces was<br />

already undergoing change prior to the pandemic<br />

outbreak, but the global health crisis accelerated<br />

some <strong>of</strong> those trends in the <strong>of</strong>fice sector.<br />

Advances in technology, a<br />

more diverse workforce, a<br />

flight to quality, the importance<br />

<strong>of</strong> global marketplaces and<br />

changing expectations around<br />

property requirements, were all<br />

having an impact on the space<br />

that companies and <strong>of</strong>fice-based<br />

operators were committing to.<br />

There was never a “one size<br />

fits all” template in the <strong>of</strong>fice<br />

market, however what is becoming<br />

clear is that businesses that<br />

embrace new ways <strong>of</strong> working,<br />

are flexible, and leverage technology,<br />

will thrive in the post-<br />

Covid economy.<br />

The work-from-home mandate<br />

saw <strong>of</strong>fice workers plugging<br />

in from widespread locations, and<br />

since then, there has been serious<br />

reconsideration about where<br />

employees could be based going<br />

forward, with CBD premises not<br />

necessarily being the sole answer.<br />

This emphasis on having a<br />

more distributed workforce is a<br />

trend being seen globally and in<br />

New Zealand, as corporates and<br />

larger businesses opt to positively<br />

fragment their physical space<br />

footprint beyond the usual centralised<br />

head <strong>of</strong>fice model.<br />

Lloyd Budd, <strong>Bay</strong>leys’ director<br />

Auckland Commercial &<br />

Industrial, believes that the way<br />

<strong>of</strong>fices are designed, how occupancy<br />

costs are approached, and<br />

this evolving distributed workforce<br />

model will structurally<br />

change <strong>of</strong>fice space dynamics<br />

and the suburbs will take on new<br />

meaning.<br />

“Larger companies and businesses<br />

with scale are proactively<br />

looking to the core + flex model<br />

<strong>of</strong> <strong>of</strong>fice space with a consolidated<br />

central location supported<br />

by smaller satellite flexible<br />

spaces in the suburbs that can<br />

expand and contract to cater for<br />

varying staffing and work flows.<br />

“Those businesses with a core<br />

+ flex model in place, will be able<br />

to have different teams working<br />

safely from different premises for<br />

a far more efficient use <strong>of</strong> time<br />

and resources should other disrupting<br />

events occur in the future.<br />

“Many <strong>of</strong>fice-based businesses<br />

operate on a project basis<br />

rather than an <strong>of</strong>fice hours basis,<br />

and so can accommodate flexible<br />

ways <strong>of</strong> working in the suburbs –<br />

with one upside being fewer cars<br />

making the commute in and out<br />

<strong>of</strong> CBDs.”<br />

Budd says work-from-home<br />

as an operational <strong>of</strong>fice business<br />

model will not become our new<br />

workplace normal.<br />

“We are social beings and if<br />

we’re isolated in our homes –<br />

even with the best technology<br />

and support – there’s just not the<br />

same capacity to build culture<br />

and be inspired.<br />

“Face-to-face interactions<br />

drive innovation and connection<br />

– video link meetings from home<br />

don’t achieve that in the same<br />

way.<br />

“There’s also physical work<br />

space health and safety concerns,<br />

potential for security or confidentiality<br />

breaches and likely productivity<br />

drains in working from<br />

an <strong>of</strong>ten-busy home situation.<br />

“I think businesses will have<br />

work-from-home as a backup<br />

plan and to allow flexibility in<br />

certain situations, but not as a<br />

broad-stroke mandate.”<br />

Budd says a move to suburban<br />

<strong>of</strong>fice space in smart mixed-use<br />

precincts could see the revitalisation<br />

<strong>of</strong> retail and hospitality in<br />

those areas resulting in stronger,<br />

more consolidated neighbourhoods<br />

where a real village atmosphere<br />

prevails.<br />

“Perhaps micro-communities<br />

could evolve within a commercial<br />

strip or shopping centre with<br />

a mix <strong>of</strong> <strong>of</strong>fice space, boutique or<br />

niche retail and hospitality such<br />

as a whisky bar for after-work<br />

drinks, a classy hairdresser or<br />

barber premises, a tailor, a farmers’<br />

market-type store with artisan<br />

suppliers or the like.<br />

“It’s an opportunity to redefine<br />

the look, feel and service<br />

<strong>of</strong>ferings that suburban locations<br />

<strong>of</strong>fer.”<br />

www.bayleys.co.nz/workplace/<br />

industrial/insights/data-centres<br />

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

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

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

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

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

<strong>Bay</strong>leys Tauranga<br />

Commercial Property Management<br />

07 579 0609<br />

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

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

ALTOGETHER BETTER<br />

Residential / Commercial / Rural / Property Services


<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 19<br />

You can leave the house<br />

without burning it down<br />

How you leave a relationship, be it employment, personal or business, is just as important as<br />

how you behave within it.<br />

We all know the saying<br />

“you only get<br />

one chance at a first<br />

impression”. Well your last<br />

impression is just as important<br />

and can have far reaching<br />

consequences. Especially in<br />

business.<br />

I have had occasions where<br />

I spend a lot <strong>of</strong> time working<br />

with a potential client on solving<br />

a credit issue the likes <strong>of</strong><br />

which I have seen hundreds, if<br />

not thousands <strong>of</strong> times, and the<br />

client just won’t get on board.<br />

As we will never be able to<br />

work together we decide to<br />

part ways.<br />

Now, in this situation, I<br />

could either tell the client, “I<br />

wish you the best <strong>of</strong> luck with<br />

the issue, if you decide that I<br />

can be <strong>of</strong> value please give<br />

me a call” or detail what the<br />

disastrous consequences <strong>of</strong> his<br />

poor judgment will be, wait for<br />

them to happen, then call him<br />

and say “not such a bad idea<br />

now is it buddy!”<br />

I have had this situation<br />

crop up quite a few times since<br />

I began my career.<br />

Sometimes the clients’<br />

decisions have cost them hundreds<br />

<strong>of</strong> thousands <strong>of</strong> dollars<br />

whereas my solution would<br />

have cost a few grand.<br />

Let me tell you the temptation<br />

to make the “I told you<br />

so” call can be very strong, but<br />

me looking petty and making<br />

the client feel stupid will have<br />

long lasting and very negative<br />

effects on both my reputation<br />

and the willingness for the client<br />

to refer other people to me<br />

to assist them with avoiding<br />

similar issues.<br />

Who wants to refer business<br />

to a pompous dork who<br />

made you feel stupid?<br />

Facing up to being<br />

cheerleader<br />

For employees this also<br />

applies. When you are a passionate<br />

and dedicated pr<strong>of</strong>essional<br />

you do not simply work<br />

for a company or organisation,<br />

you become the face <strong>of</strong> it, its<br />

cheerleader. Its welfare and<br />

success becomes your mission<br />

and sometimes the focus <strong>of</strong><br />

your life.<br />

CREDIT CONTROL<br />

> BY NICK KERR<br />

Nick Kerr is a <strong>Business</strong> Advisor at NJK Advisory Ltd.<br />

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

Nick can be reached at nick@nzipi.com<br />

Sometimes jobs don’t work<br />

out, roles become stale or the<br />

employees’ passions change.<br />

The employee meets with the<br />

employer, states their wish to<br />

depart respectfully and moves<br />

on.<br />

I have met the aforementioned<br />

employees while they<br />

held the role and after they had<br />

departed.<br />

When asked, they simply<br />

say that they chose a new<br />

direction and that they wished<br />

the old team well.<br />

These people seem to fit<br />

well into the new environment<br />

and are generally successful.<br />

The fact that they were an<br />

ardent advocate <strong>of</strong> the previous<br />

employer and now another<br />

does not seem hypocritical or<br />

unusual, that is just who they<br />

are.<br />

Sometimes the employee<br />

quits in a dramatic, over the<br />

top and sometimes violent<br />

way blaming all and sundry<br />

for their decision to leave. He<br />

or she then insults everyone<br />

they work with on the way out<br />

and afterwards takes every<br />

chance to run down the old<br />

employer and former<br />

team members.<br />

They may raise<br />

overblown or exaggerated<br />

personal<br />

grievances against<br />

the former employer<br />

and actively discourage<br />

people from engaging with<br />

the business for vague and<br />

unprovable reasons, seemingly<br />

out <strong>of</strong> spite, when only months<br />

before they were all “No ‘I’<br />

in team” and “Together<br />

Everyone Achieves More”<br />

while being passionate<br />

cheerleaders.<br />

Such people may find<br />

it very hard to get ‘buy in’<br />

from their new teammates,<br />

employers and clients alike,<br />

Sometimes jobs<br />

don’t work out,<br />

roles become stale<br />

or the employees’<br />

passions change.<br />

The employee meets<br />

with the employer,<br />

states their wish to<br />

depart respectfully<br />

and moves on.<br />

as they will seem fickle and<br />

hypocritical.<br />

Just remember that the client<br />

that you embarrassed, the<br />

former teammate that you ran<br />

down, the employer that you<br />

ridiculed publically and the<br />

business that you tried to damage,<br />

may be the referrer or reference<br />

that you need to get that<br />

promotion, large deal or other<br />

life changing opportunity.<br />

Everyone knows someone and<br />

that someone may know the<br />

someone who has a very dim<br />

view <strong>of</strong> the last impression you<br />

made.<br />

Just a thought<br />

The warmer months are on the way –<br />

add value & make the most <strong>of</strong> your outdoor<br />

space with our fantastic pergolas,<br />

outdoor blinds and other accessories.<br />

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20 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/December <strong>2021</strong><br />

First on the scene<br />

Photos from the recent Tauranga Chamber <strong>of</strong> Commerce BA5 with PMG Funds.<br />

Photos by Salina Galvan<br />

1<br />

2 3<br />

4<br />

1 Elena Smirnova, Jeremy Levy (Trustpower Ltd). 2 Mark Inman, Andre Jay (<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> Youth Development Trust). 3 Steve Smith (EmbroidMe Tauranga), Valerie Rowe-Mitchell (Emerald<br />

<strong>Business</strong> Advisers Ltd). 4Shane and Angela Hale (Sign Creations).<br />

5 6<br />

7<br />

Confidential<br />

personal<br />

5 David Hill (NZHL), Mark Walton (<strong>Bay</strong>leys Commercial), Natasha Stocks (PMG). 6 Chris Symes (Oxygen8 Consulting), serviceAlan Neben (BOP <strong>Business</strong> <strong>News</strong>). 7 Lani Wreaks (Tauranga Chamber<br />

<strong>of</strong> Commerce), Jenna Tournier (Booking Rooster), Matt Cowley (Tauranga Chamber <strong>of</strong> Commerce), Moira Moroney (Booking Rooster).<br />

Confidential<br />

Key items when preparing your<br />

personal<br />

service<br />

ADVERTORIAL<br />

business for sale<br />

When preparing your business for sale it is important to identify<br />

the parts <strong>of</strong> your business that you have control over and which<br />

can have an impact on the value <strong>of</strong> your business.<br />

At Tabaks we have a<br />

detailed checklist that<br />

we go through with<br />

business owners which outlines<br />

the key parts <strong>of</strong> your<br />

business such as the owners<br />

input, systems & processes,<br />

staff structure, leases, customer<br />

& supplier agreements,<br />

Worksafe and Health<br />

& Safety to name a few.<br />

The importance <strong>of</strong> having<br />

these elements <strong>of</strong> your<br />

business in a current, well<br />

presented and documented<br />

order cannot be overstated. A<br />

buyer who is looking at your<br />

business will want to satisfy<br />

themselves that they are able<br />

to walk in on day one and the<br />

business systems will continue<br />

to operate as normal<br />

without you as the owner<br />

being there. This makes<br />

up the goodwill part <strong>of</strong> the<br />

transaction.<br />

If, as an example, the systems<br />

& processes are all in<br />

the current owners head and<br />

are not documented, or the<br />

owner is so vital to the business<br />

operation that the business<br />

cannot operate without<br />

him, then the intangible asset<br />

value is diminished. This is<br />

also the same if the lease on<br />

the premises expires soon or<br />

there are no details <strong>of</strong> customers<br />

and supplier arrangements,<br />

work safe creditation<br />

or Health & safety records. If<br />

these are not documented or<br />

current they will have an impact<br />

on the business goodwill<br />

value and attractiveness to a<br />

purchaser.<br />

Presentation is also a factor<br />

that some business owners<br />

do not pay enough<br />

Selling<br />

atten-<br />

your busines<br />

tion to. I have come across<br />

cases where the vehicles are<br />

dirty and unkept (they do not<br />

need to be new but should<br />

be clean and presentable) or<br />

the premises and <strong>of</strong>fices were<br />

not clean and tidy. This first<br />

impression is going to reflect<br />

badly on a purchaser who is<br />

looking at your business.<br />

I urge business owners to<br />

have a critical look at your<br />

business from the outside<br />

BETTER BUSINESS SALES<br />

> BY PAUL BRLJEVICH<br />

Director at TABAK <strong>Business</strong> Sales. Paul can be reached on<br />

027 693 4079 or paulb@tabak.co.nz<br />

and see how your business<br />

presents, not only from a<br />

physical point <strong>of</strong> view but<br />

also internally i.e. systems &<br />

Selling your business?<br />

processes. This is the view a<br />

purchaser is going to get so Remember, when you<br />

We connect quality businesses with serious bu<br />

you want to make sure it is a<br />

We connect quality good one. businesses with serious buyers<br />

Unfortunately there are<br />

some parts <strong>of</strong> your business<br />

operation that are out <strong>of</strong> your<br />

control such as Covid, Government<br />

policy, supply and<br />

labour shortages. These are<br />

affecting some businesses<br />

more than others but here in<br />

the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> I suggest<br />

that we are doing much better<br />

than a lot <strong>of</strong> other areas.<br />

decide it is time to consider<br />

selling your business make<br />

sure that you take the time<br />

to prepare it and change the<br />

things that you can control so<br />

that you maximise the presentation<br />

and goodwill value<br />

<strong>of</strong> your business.<br />

Selling your business?<br />

We connect quality businesses with serious buyers<br />

Confidential<br />

personal<br />

service<br />

For more information call: (07) 578 6329<br />

or email: tauranga@tabak.co.nz<br />

For more information call: (07) 5786329<br />

or email: tauranga@tabak.co.nz<br />

Licensed REAA (2008)<br />

147 Cameron Road<br />

www.tabak.co.nz<br />

For more information call:<br />

or email: tauranga<br />

Licensed REAA (2008)<br />

Licens


<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 21<br />

Metaverse: The<br />

new buzzword in<br />

technology<br />

In October, Facebook founder Mark Zuckerberg made the<br />

announcement that while the Facebook app might be the<br />

cornerstone <strong>of</strong> the company, the future <strong>of</strong> the company belongs to<br />

the Metaverse. The corporate behemoth is set to hire 10,000 people<br />

over the next five years in the European Union to build this metaverse<br />

and transform how we interact digitally.<br />

The metaverse, short for<br />

“meta-universe,” designates<br />

a cyberspace parallel<br />

to physical reality where<br />

a community <strong>of</strong> people can<br />

interact in the form <strong>of</strong> avatars.<br />

The concept was coined<br />

by author Neal Stephenson in<br />

the 1992 science fiction novel<br />

“Snow Crash”. It refers to<br />

the merging <strong>of</strong> physical, augmented,<br />

and virtual reality in a<br />

shared online space.<br />

In essence, the “Metaverse”<br />

started as a science fiction<br />

thing and while defining the<br />

term is not easy, one thing is<br />

probably true.<br />

The term will not be<br />

defined by one single person<br />

or company, it will be defined<br />

by many, and it will evolve.<br />

The language we use to<br />

describe the future today is<br />

ever-changing.<br />

Google the term metaverse<br />

and you’ll find several<br />

definitions.<br />

Video giants<br />

Currently, two <strong>of</strong> the biggest<br />

players in this space in <strong>2021</strong><br />

are video game companies<br />

Epic Games, maker <strong>of</strong> Fortnite<br />

and Roblox Corporation,<br />

maker <strong>of</strong> kids gaming phenomenon,<br />

Roblox.<br />

Both games boast a world<br />

<strong>of</strong> many experiences where<br />

avatars can create new worlds<br />

and games, hang out with<br />

friends, catch a concert, or<br />

even go to the movies. Each<br />

with their own cryptocurrency,<br />

players can buy and trade<br />

items or “skins” to customize<br />

their characters.<br />

It seems crazy to think that<br />

in a digital universe, social<br />

status is still represented by<br />

the brands your avatar wears.<br />

Brands such as Gucci made a<br />

splash in May when a Gucci<br />

handbag sold for $4,155.<br />

This inspired Gucci to<br />

create an entirely customised<br />

virtual experience on Roblox<br />

which acquired approximately<br />

20 million visits, and hundreds<br />

<strong>of</strong> thousand Roblox users<br />

acquired new items for their<br />

avatars to parade.<br />

In 2020 Roblox corporation<br />

generated a total revenue<br />

<strong>of</strong> over NZ$1.2 billion, all<br />

through the sale <strong>of</strong> its virtual<br />

currency “Robux” which<br />

players use to purchase virtual<br />

items created by Roblox as<br />

well as the community <strong>of</strong> creators<br />

on the platform.<br />

Fortnite on the other hand,<br />

generated more than 5 billion<br />

within its first year, with a<br />

model <strong>of</strong> being a free game,<br />

this revenue transpired solely<br />

from gamers leveling up on<br />

their aesthetics.<br />

Social norms crossing<br />

over<br />

While we might look at this and<br />

think these are simply games,<br />

it highlights how “in real life”<br />

social norms are crossing over<br />

to a digital space, a Travis<br />

Scott concert on Fortnite drew<br />

a crowd <strong>of</strong> 12.3 million and Alt<br />

music duo Twenty One Pilots<br />

had a sold-out Takeover Tour<br />

with a concert entirely within<br />

the Roblox platform.<br />

The ability to purchase<br />

brands and experience concerts<br />

as a digital character is<br />

still for now predominately in<br />

a 2D world and yet the monetary<br />

investment for these conglomerates<br />

continues to rise as<br />

people search for more ways to<br />

TECH TALK<br />

> BY MARIETTE TOLMAY<br />

Mariette Tolmay is the marketing lead at Stratus Blue.<br />

She can be contacted at mariette@stratusblue.co.nz.<br />

“live” within a digital world.<br />

Conversation around a<br />

more tangible, actualized Internet<br />

seems only more pointed in<br />

light <strong>of</strong> our current shelter-inplace<br />

reality in response to the<br />

coronavirus pandemic. Where<br />

the online world echoes and<br />

fulfills real-world needs and<br />

activities.<br />

So what will this<br />

“Metaverse” mean to us?<br />

At the moment, people<br />

interact with each other online<br />

by going to websites such<br />

as social media platforms or<br />

using messaging applications.<br />

The idea <strong>of</strong> the metaverse is<br />

that it will create new online<br />

spaces in which people’s interactions<br />

can be more multi-dimensional,<br />

where users are<br />

able to immerse themselves in<br />

digital content rather than simply<br />

viewing it. Its ambitions<br />

are to alter the way we work,<br />

play, spend and consume<br />

technology.<br />

If all this sounds beyond<br />

your ken, know that instead<br />

<strong>of</strong> checking your phone first<br />

thing in the morning, at some<br />

point you will be checking into<br />

the Metaverse.<br />

Pr<strong>of</strong>essional advice<br />

may be required<br />

October 1 was not only the dawning <strong>of</strong> a new month, but it was an<br />

interesting day for tax legislative development in New Zealand.<br />

ACCOUNTING<br />

> BY ANDREA SCATCHARD<br />

Andrea Scatchard is a Tax Partner at Deloitte, based in the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong>. She can be contacted on ascatchard@deloitte.co.nz<br />

Following an initial consultation<br />

phase, the<br />

well-publicised and<br />

debated changes to the brightline<br />

rules and the ability to<br />

deduct interest on residential<br />

properties took effect from that<br />

date.<br />

This is despite the legislation<br />

not having been passed,<br />

the consultation period for<br />

the draft legislation still being<br />

open and the accompanying<br />

detailed commentary (which<br />

provides a more accessible<br />

description <strong>of</strong> the rules) only<br />

being subsequently released<br />

on October 12.<br />

The legislation is not<br />

expected to be passed until<br />

March next year and while<br />

there is precedent for retrospective<br />

application <strong>of</strong> new<br />

tax legislation, this is contrary<br />

to New Zealand’s Legislation<br />

Guidelines and more<br />

commonly occurs where the<br />

changes are either taxpayer<br />

friendly or are aimed at closing<br />

known loopholes. These<br />

changes definitely are neither<br />

<strong>of</strong> those.<br />

The interest denial changes<br />

are contrary to the general tax<br />

principle that costs incurred<br />

in earning taxable income are<br />

able to be claimed against that<br />

income, and are an example <strong>of</strong><br />

the Government using tax policy<br />

settings to drive taxpayer<br />

behaviour and achieve a nontax<br />

goal <strong>of</strong> improving housing<br />

affordability.<br />

Interestingly the <strong>of</strong>ficial<br />

documents released with the<br />

draft legislation show that<br />

Inland Revenue did not support<br />

the proposals, considering<br />

that they will lead to higher<br />

rents and may reduce the supply<br />

<strong>of</strong> new housing developments.<br />

Time will tell what the<br />

true effect will be.<br />

The developments represent<br />

some very important and<br />

very complex law changes that<br />

will affect various types <strong>of</strong><br />

residential landlords and other<br />

investors in residential land.<br />

Given the breadth <strong>of</strong> the<br />

changes and the fact that the<br />

commentary to the draft legislation<br />

is 129 pages long it is<br />

just not possible to adequately<br />

summarise the changes in this<br />

article.<br />

Readers can find more<br />

detail in our Deloitte Tax Alert<br />

at www.deloitte.co.nz, and a<br />

series <strong>of</strong> information sheets<br />

issued by Inland Revenue on<br />

the changes can also be found<br />

at https://taxpolicy.ird.govt.nz/<br />

publications/<strong>2021</strong>/<strong>2021</strong>-other-interest-limitation<br />

Review rules in detail<br />

While landlords with a simple<br />

residential rental property<br />

should generally be able to<br />

understand the interest denial<br />

rules easily enough, taxpayers<br />

with more complicated circumstances<br />

will need to review<br />

these rules in more detail and<br />

seek pr<strong>of</strong>essional advice on<br />

their application to the calculation<br />

<strong>of</strong> taxable income and<br />

payment <strong>of</strong> provisional tax.<br />

Some <strong>of</strong> the complex situations<br />

will include taxpayers<br />

with mixed commercial/residential<br />

use properties, mixed<br />

use borrowing (either for<br />

mixed commercial/residential<br />

properties or where some<br />

properties held are excluded<br />

from these rules), land which<br />

contains an existing property<br />

where a new build may be<br />

added, subdivided land and<br />

properties where borrowing<br />

needs to be refinanced.<br />

In the same week, Inland<br />

Revenue also released, but<br />

with much less publicity, a<br />

draft Interpretation Statement<br />

on the application <strong>of</strong> the<br />

land sale rules (including the<br />

brightline test) to “changes in<br />

co-ownership, subdivisions,<br />

and changes <strong>of</strong> trustees”.<br />

An Interpretation Statement<br />

is not a change in law<br />

but rather is the Commissioner’s<br />

interpretation <strong>of</strong> how the<br />

existing law applies, so once<br />

this is finalised following the<br />

consultation period we should<br />

expect it will be applied retrospectively<br />

by Inland Revenue.<br />

The draft Interpretation<br />

Statement highlights a range<br />

<strong>of</strong> scenarios where there is a<br />

change in ownership interests<br />

in land which may result in a<br />

“disposal” for the purposes <strong>of</strong><br />

the land sale rules, with the<br />

consequence possibly being<br />

a surprise tax cost (for example,<br />

if the change in ownership<br />

occurs within the brightline<br />

period).<br />

It also makes it clear that in<br />

Inland Revenue’s view registration<br />

<strong>of</strong> a change in ownership<br />

percentages on the land<br />

title will restart the brightline<br />

period for the owners. This<br />

will be <strong>of</strong> particular interest<br />

to friend or family groups<br />

that buy property together and<br />

subsequently make changes to<br />

their respective proportions <strong>of</strong><br />

ownership.<br />

Submissions on the both<br />

the draft legislation and Interpretation<br />

Statement can be<br />

made until 9 <strong>November</strong> <strong>2021</strong>,<br />

although whether the Government<br />

will take this feedback on<br />

board remains to be seen.


22 BAY OF PLENTY BUSINESS NEWS <strong>November</strong>/December <strong>2021</strong><br />

When chicken<br />

hits the fan: what<br />

is good crisis<br />

comms?<br />

The impact <strong>of</strong> a bad story can be devastating, so<br />

when chicken or doughnuts hit the fan, respecting<br />

the public with the correct response means they’ll<br />

respect you back.”<br />

Life is full <strong>of</strong> challenges, particularly in the world <strong>of</strong> business. <strong>News</strong><br />

can go viral overnight, with organisations finding themselves in a<br />

bad PR storm before they even know it. But if there’s one thing<br />

that people love, it’s a comeback story. Ingenious, well-planned<br />

messaging can be just what’s needed for a brand to fight their way<br />

back to success.<br />

In the UK in 2018, KFC faced<br />

a problem: they ran out <strong>of</strong><br />

chicken. For a fast-food<br />

restaurant with chicken as their<br />

main menu item, this was quite<br />

the mess up.<br />

It culminated in a dramatic<br />

news broadcast from police<br />

pleading with people to stop<br />

calling them to report the lack<br />

<strong>of</strong> chicken (yes, really).<br />

While this could have been<br />

an embarrassing and financially<br />

damaging scenario, KFC<br />

pulled out an astonishing turnaround,<br />

giving us a lesson in<br />

great crisis management.<br />

Firstly, they put the status<br />

<strong>of</strong> each restaurant on<br />

their website and constantly<br />

answered questions on social<br />

media. Pretty standard stuff.<br />

But their main stroke <strong>of</strong><br />

inspiration came from their<br />

marketing team who rolled<br />

out a series <strong>of</strong> brilliant newspaper<br />

advertisements showing<br />

a bucket <strong>of</strong> their iconic<br />

chicken... with one main difference.<br />

They rearranged the<br />

KFC letters to read “FCK”.<br />

It was a bold move to use<br />

such risqué language and not<br />

sugar coat the mess up – but it<br />

went down a storm.<br />

Their ability to laugh at<br />

themselves and take complete<br />

ownership <strong>of</strong> the mistake resonated<br />

with people. They were<br />

open, quick to respond, and<br />

stayed faithful to their brand<br />

voice.<br />

Customers loved this transparency<br />

and praised them<br />

widely. KFC took back control<br />

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

were celebrating them, rather<br />

than cursing them.<br />

Other organisations, however,<br />

have not done so well in a<br />

crisis. In the same year, Krispy<br />

Kreme were opening their first<br />

store in New Zealand. They<br />

had been running an extensive<br />

PR campaign for weeks, getting<br />

journalists along to a special<br />

preview event and <strong>of</strong>fering<br />

thousands <strong>of</strong> freebies to the<br />

first 100 customers.<br />

Over zealous and fired<br />

But hours into opening, an<br />

“over zealous and tired” security<br />

guard turned a Filipino<br />

woman away from getting free<br />

doughnuts because he assumed<br />

that she wasn’t a Kiwi.<br />

Krispy Kreme responded<br />

by justifying the incident, saying<br />

their competition T&Cs<br />

stipulate that only residents <strong>of</strong><br />

the specific country the competition<br />

is taking place in can<br />

enter it. They did also apologise,<br />

but people thought that<br />

their response was defensive,<br />

full <strong>of</strong> empty words, and came<br />

too late.<br />

The incident prompted<br />

fury, with people accusing the<br />

company <strong>of</strong> racial pr<strong>of</strong>iling<br />

and renaming them “KKK”<br />

(Krispy Kreme for Kiwis<br />

only). The Philippine Ambassador<br />

even got involved.<br />

Krispy Kreme’s big opening<br />

went from sweet to sour.<br />

So, what can be learned<br />

from these two incidents? We<br />

THE LAST WORD<br />

> BY JAMES HEFFIELD<br />

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

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

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

all know that people and companies<br />

are imperfect and will<br />

slip up. But these days, mistakes<br />

are difficult to hide – the<br />

lines between organisations<br />

and the public are more blurred<br />

than ever, as proven by how far<br />

and quickly word spread about<br />

these two scandals. Therefore,<br />

having good crisis communications<br />

is crucial.<br />

Getting your messaging<br />

out at the right time, in the<br />

right tone, and in a meaningful<br />

way are vital tactics to turning<br />

things around, as are authenticity<br />

and taking ownership<br />

<strong>of</strong> mistakes. The impact <strong>of</strong> a<br />

bad story can be devastating,<br />

so when chicken or doughnuts<br />

hit the fan, respecting the public<br />

with the correct response<br />

means they’ll respect you<br />

back.<br />

NEWSBRIEF<br />

Employment market update<br />

New Kiwifruit<br />

Breeding Centre<br />

launches to boost<br />

innovation<br />

Healthier, better tasting<br />

and more sustainability-focused<br />

varieties are<br />

the goals <strong>of</strong> the new<br />

50/50 joint venture Kiwifruit<br />

Breeding Centre that<br />

opens its doors this week. Matt Glenn<br />

The Kiwifruit Breeding<br />

Centre (the Centre) has been established<br />

by Plant & Food Research and Zespri to take<br />

their 30-year relationship <strong>of</strong> successful kiwifruit<br />

breeding to the next level.<br />

With about 45 staff, the Centre is based in<br />

Te Puke, and operates out <strong>of</strong> Kerikeri, Motueka<br />

and Mt Albert. It will also have a presence <strong>of</strong>fshore<br />

in selected kiwifruit regions.<br />

The Centre will be jointly funded by Zespri<br />

and Plant & Food Research, a New Zealand<br />

Government-owned Crown Research Institute.<br />

The organisations will share royalties from any<br />

future commercialised new varieties.<br />

The Centre’s inaugural CEO Matt Glenn<br />

said he was drawn to the opportunity to lead an<br />

organisation focused on science and commercial<br />

success.<br />

“The Centre will be key to the future success<br />

<strong>of</strong> New Zealand’s iconic kiwifruit industry.<br />

Plant & Food Research and Zespri have laid a<br />

very strong foundation. They now want us to<br />

spread our wings and develop new cultivars that<br />

will delight consumers all around the world.”<br />

The Centre aims to extend New Zealand’s<br />

position as the world’s leading innovator in<br />

kiwifruit. Experienced agrifood and innovation<br />

sector director Michael Ahie is Chair <strong>of</strong> the<br />

Kiwifruit Centre Board. Mr Ahie is Chancellor<br />

<strong>of</strong> Massey University and a former Chair <strong>of</strong><br />

Plant & Food Research.<br />

We are currently working<br />

within interesting times and<br />

the only constant seems to be<br />

change. With daily updates<br />

and mandates, changing rules<br />

and legislation, business is<br />

changing too.<br />

Like many others, the recruitment<br />

sector is experiencing<br />

supply issues, with our product<br />

– being our people – being in<br />

short supply, but high demand.<br />

For recruiters, times such as these<br />

are relentlessly demanding.<br />

Many sectors are absolutely<br />

booming, and recruiters can’t<br />

keep with demand and need quality<br />

staff to help enable them to<br />

keep up and to grow. While there<br />

has been plenty <strong>of</strong> movement in<br />

terms <strong>of</strong> people changing jobs<br />

in the past 18 months, there are<br />

simply not enough trained and<br />

qualified people to fill the current<br />

demand.<br />

Looking at some recent stats<br />

from a survey <strong>of</strong> job seekers<br />

which dated back to June 21,<br />

many <strong>of</strong> the people actively<br />

looking for work were from the<br />

Healthcare and Education sectors,<br />

closely followed by Retail<br />

and Tourism. Unsurprising, and<br />

suggesting clear evidence <strong>of</strong><br />

the toll that Covid has taken on<br />

these sectors and recent mandates<br />

around vaccinations.<br />

One out <strong>of</strong> five New Zealanders<br />

are actively looking for work.<br />

These are the candidates that<br />

respond to job advertisements,<br />

One out <strong>of</strong> five<br />

New Zealanders are<br />

actively looking for<br />

work.<br />

HUMAN RESOURCES<br />

> BY KELLIE HAMLETT<br />

Talent ID are Recruitment Specialists and can support you through<br />

your recruitment process. Please feel free to talk to us about this by<br />

calling 07 349 1081 or emailing kellie@talentid.co.nz<br />

and applications through traditional<br />

advertising methods have<br />

drastically reduced. It’s the passive<br />

candidate that we now need<br />

to be looking for, those who are<br />

not actively looking, but are open<br />

to a new opportunity.<br />

Some <strong>of</strong> the main reasons that<br />

people are looking for a new job<br />

include better career prospects/<br />

change <strong>of</strong> career, better pay, loss<br />

<strong>of</strong> job, and more flexibility.<br />

Top three goals<br />

So what are the top three goals that<br />

these candidates looking for in a<br />

new role?<br />

At the top <strong>of</strong> the list is job<br />

security – which makes total sense<br />

given the uncertainly we are living<br />

with presently.<br />

Secondly, achieving work/life<br />

balance, followed by company<br />

culture/fit. A competitive salary<br />

also plays a major part. It really is<br />

a candidate-driven market at present<br />

and we are seeing pay rates<br />

increase substantially.<br />

To sum up, the demand for staff<br />

is high across all sectors. Attracting<br />

passive candidates is the key to<br />

filling roles, but be prepared to pay<br />

well, and <strong>of</strong>fer key benefits. It’s<br />

interesting to note that flexibility<br />

and the ability to work from home<br />

is no longer being considered as an<br />

additional benefit to job seekers,<br />

but more <strong>of</strong> a given as to how we<br />

work nowadays.<br />

On average it is now taking<br />

people less than a month to find a<br />

new role, which is very fast. Good<br />

candidates are extremely hard<br />

to find and generally have multiple<br />

<strong>of</strong>fers to choose from. Be<br />

prepared.


<strong>November</strong>/December <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 23

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