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March 2023 - 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.

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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MARCH <strong>2023</strong> VOLUME 7: ISSUE 3<br />

WWW.BOPBUSINESSNEWS.CO.NZ<br />

FACEBOOK.COM/BAYOFPLENTYBUSINESSNEWS<br />

THE<br />

BONODLEYS<br />

BBN Franchising columnist<br />

Nathan Bonney sets himself a<br />

new challenge for <strong>2023</strong>. See p5<br />

RUNNING 100<br />

MILES NON-STOP:<br />

BBN’s Mining <strong>Business</strong> Wealth<br />

columnist Freddie Bennett<br />

considers the lessons. See p9<br />

ZESPRI’S<br />

ANNUS<br />

HORRIBILIS<br />

CONTINUES<br />

Kiwifruit growers have been dealt<br />

another body blow this summer with<br />

Zespri’s announcement <strong>of</strong> further<br />

reductions in payouts.<br />

Richard Rennie investigates, see page 5.<br />

MEETINGS | CONFERENCES | EXHIBITIONS | ENTERTAINMENT<br />

Enquire Today!<br />

trustpowerbaypark.co.nz


<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> <strong>News</strong> YearBook 2020.indd 1<br />

2/06/2020 9:19:01 AM<br />

2 BAY OF PLENTY BUSINESS NEWS <strong>March</strong> <strong>2023</strong><br />

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Publishing June <strong>2023</strong>


<strong>March</strong> <strong>2023</strong> BAY OF PLENTY BUSINESS NEWS 3<br />

Aero club leads the<br />

charge in aiding<br />

coast communities<br />

By RICHARD RENNIE<br />

Local businesses and community<br />

members stepped up in February<br />

to support Tauranga Aero Club’s<br />

efforts to deliver food and supplies to<br />

stranded communities on Te Tairawhiti<br />

after the devastating effects <strong>of</strong><br />

Cyclone Gabrielle.<br />

The result was deliveries <strong>of</strong> almost<br />

forty tonne <strong>of</strong> food and supplies by<br />

truck and aeroplane, much <strong>of</strong> it to<br />

small, isolated communities up and<br />

down the Te Tairāwhiti coast and<br />

Hawke’s <strong>Bay</strong>.<br />

Tauranga Aero Club president<br />

Darryl Hone said the result <strong>of</strong> the<br />

club’s efforts had been well beyond<br />

his wildest imaginings.<br />

“We have been getting amazing<br />

feed back for this effort, it is not<br />

something we looked for or expected.<br />

By 5.30pm on the Sunday we had<br />

finally managed to clear our hanger <strong>of</strong><br />

all the food and supplies donated over<br />

the course <strong>of</strong> the three day campaign.<br />

“We ended up flying 44 flights and<br />

also had three truck and trailer units<br />

head out fully laden.”<br />

A number <strong>of</strong> the club’s pilot members<br />

contributed their craft, along<br />

with two from the aero club itself.<br />

Among them was pilot Greg<br />

Missen who was the first flight into<br />

Hastings aerodrome on the Friday, to<br />

an area still cut <strong>of</strong>f from Napier and<br />

Ruatoria fire chief Monty Manuel (left) with<br />

Tauranga Aero Club pilot Kalarn Mark, at Ruatoria.<br />

running low on supplies.<br />

He said it had been gratifying to<br />

be welcomed with smiles <strong>of</strong> joy when<br />

he touched down in his twin engine<br />

plane at Hastings aerodrome. Being<br />

able to help out had been a vital way<br />

to show the people on the coast the<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> coast communities<br />

were thinking about them, he said.<br />

Fellow pilot Kalarn Mark flew his<br />

family’s 172 Cessna Skyhawk over<br />

the Raukumara ranges into remote<br />

Ruatoria.<br />

His was the first supply drop that<br />

community had since Gabrielle took<br />

out the bridge south, leaving only<br />

The massive collection <strong>of</strong> food and supplies donated by Tauranga<br />

community being readied in the club hanger for transport by<br />

plane and truck to Te Tairawhiti and Napier-Hastings.<br />

Locals at Ruatoria help pilot Kalarn Mark<br />

unload his plane on the local airstrip.<br />

State Highway 35 around East Cape<br />

accessible.<br />

At 17 and the holder <strong>of</strong> several<br />

national flying competition awards,<br />

the day had proven an invaluable<br />

experience for adding valuable hours<br />

to his log, and on a personal level in<br />

appreciating the impact such an event<br />

had upon communities.<br />

Daryl Hone said there were<br />

numerous Tauranga businesses the<br />

club had to thank for their efforts who<br />

had committed funds and resources to<br />

the supply drive.<br />

“We had Warehouse Tauranga put<br />

up funds for us to buy food, particularly<br />

noodle meals that are easy to<br />

fly and easy to eat, we had the Bake<br />

Shack at the Mount provide dinner<br />

and lunch for the aero club volunteers,<br />

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

We also had Brett Marsh Transport<br />

and Wetherell Transport donate truck<br />

units and drivers for runs down there,<br />

and Pacific Autos supply a smaller<br />

truck for a run to Te Karaka which<br />

had been hit really hard.”<br />

Hone said the club was also<br />

grateful to those who had donating<br />

funds which could be used to help<br />

pay for the fuel used on the east coast<br />

sorties.<br />

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4 BAY OF PLENTY BUSINESS NEWS <strong>March</strong> <strong>2023</strong><br />

THE PORTER REPORT<br />

A monthly update on the business<br />

world from leading writer David Porter<br />

www.bopbusinessnews.co.nz<br />

CONTACT INFORMATION<br />

PUBLISHER<br />

Alan Neben, Ph: 021 733 536<br />

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

EDITORIAL<br />

Alan Neben, Ph: 021 733 536<br />

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

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

Times Media – Clare McGillivray<br />

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

ADVERTISING<br />

Pete Wales, Mob: 022 495 9248<br />

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

ELECTRONIC FORWARDING<br />

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

editor@bopbusinessnews.co.nz<br />

GENERAL INQUIRIES: 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 />

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www.bopbusinessnews.co.nz<br />

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

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

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

electronic media services.<br />

In case you missed<br />

last month’s edition<br />

Scan to<br />

subscribe<br />

The unchanging<br />

<strong>of</strong> the guard<br />

One <strong>of</strong> the more entertaining<br />

aspects <strong>of</strong> the<br />

New Zealand Labour<br />

Party’s recent change <strong>of</strong> leadership,<br />

has been the decision<br />

by many headline writers to<br />

characterise this as a “surprise”<br />

or “shock” resignation.<br />

Whether one approved <strong>of</strong><br />

former Labour Prime Minister<br />

Jacinda Ardern’s performance<br />

or not, no one ever thought<br />

her stupid. Indeed, Ardern<br />

has proven clearly – after a<br />

succession <strong>of</strong> lacklustre and<br />

unsupported Labour leaders –<br />

that she has been a tremendous<br />

electoral asset for the party.<br />

This was not in any way an<br />

unexpected decision. Her decision<br />

to step down was inevitable<br />

based on her astute reading<br />

<strong>of</strong> the fact that the shine<br />

had dimmed on the glow she<br />

brought to the Labour leadership.<br />

No smart leader wants to<br />

go out a loser, and she could<br />

see that the polls were turning<br />

against her.<br />

After her latest triumphant<br />

overseas tour, it was clear<br />

that she enjoys an excellent<br />

reputation abroad. I for one<br />

would not be surprised to find<br />

her deservedly ending up in a<br />

well-paid international position,<br />

post the election.<br />

There has been some mention<br />

that she has suffered<br />

unpleasant criticism in social<br />

media. She deserves our sympathy<br />

for that. But I would be<br />

surprised if she – or indeed<br />

any senior politician – does<br />

not employ staff whose job<br />

includes reading and shielding<br />

her from such nonsense. No<br />

one is obliged to read or take<br />

seriously the rantings <strong>of</strong> online<br />

idiots.<br />

Who else was there?<br />

There has been much praise<br />

on the manner <strong>of</strong> her transfer<br />

<strong>of</strong> power to Chris Hipkins.<br />

The suggestion is that this was<br />

swiftly and deftly handled,<br />

with minimum fuss. Which<br />

it was. But after all, who else<br />

was she going to choose?<br />

She can certainly be praised<br />

for the smoothness <strong>of</strong> the process,<br />

and it clearly initially<br />

caught the opposition National<br />

Party <strong>of</strong>f guard. However,<br />

the opposition appears to be<br />

recovering.<br />

Dealing with and enduring<br />

the onset <strong>of</strong> Covid 19 has been<br />

a challenge for us all – both<br />

politicians and public. But let<br />

us not forget that, in its early<br />

days especially, this gave<br />

Labour an excellent opportunity<br />

to monopolise their coverage<br />

in the media with positive<br />

imagery <strong>of</strong> Ardern and Hipkins<br />

daily fronting the press and<br />

public.<br />

Not to mention the vast<br />

sums <strong>of</strong> free advertising<br />

expended on the subject, all <strong>of</strong><br />

which was essentially aimed<br />

at convincing the public that<br />

Labour was doing a good job<br />

<strong>of</strong> handling the crisis. Which<br />

may well be the case. The government’s<br />

current resistance to<br />

any effective analysis <strong>of</strong> this,<br />

means that we won’t know the<br />

real costs for some years.<br />

What we do know is that<br />

Labour has been largely<br />

unconvincing in much other<br />

than expending millions <strong>of</strong><br />

dollars on fruitless consultations<br />

and working groups to<br />

explore far-reaching policy<br />

aims that seem unlikely to ever<br />

come to fruition and that were<br />

in many cases not originally<br />

campaigned on. As is <strong>of</strong>ten<br />

the case, Labour’s ambitions<br />

greatly over-reached its ability<br />

to deliver.<br />

Let us dispel the notion<br />

that Hipkins was not always a<br />

fully committed member <strong>of</strong> the<br />

Labour Government leadership<br />

team that has now abruptly<br />

David Porter<br />

announced that its core policies<br />

are to be killed <strong>of</strong>f.<br />

Amongst them, especially<br />

let us not forget the<br />

poorly justified and expensive<br />

three waters scheme, which<br />

attracted a bigger volume <strong>of</strong> so<br />

far unanswered public queries<br />

and criticisms than any other.<br />

This particular policy is one<br />

<strong>of</strong> the few that has so for been<br />

“parked” for reconsideration.<br />

Meaning that it was impossible<br />

to kill for internal political reasons<br />

and is likely to re-emerge<br />

if Labour gets back into power<br />

this year.<br />

Essentially, Labour, now<br />

under Hipkins’ leadership, has<br />

stated that most <strong>of</strong> its ambitious<br />

and impossible to implement<br />

raft <strong>of</strong> policies has been<br />

abandoned, in an attempt to get<br />

out from under them ahead <strong>of</strong><br />

National’s expected electoral<br />

policy criticisms. So what<br />

does Labour really believe in?<br />

And what can it achieve?<br />

As noted, Ardern is certainly<br />

not stupid and will be<br />

deeply missed as a leader by<br />

Labour. Making a smooth<br />

transfer <strong>of</strong> power this early,<br />

will give the public good time<br />

to judge the effectiveness <strong>of</strong><br />

her successor in the run-up to<br />

the elections.<br />

Making Quality IT, Simple


COVER STORY<br />

<strong>March</strong> <strong>2023</strong> BAY OF PLENTY BUSINESS NEWS 5<br />

ZESPRI’S ANNUS HORRIBILIS CONTINUES<br />

Fruit quality losses incurred over this year’s harvest are hitting home hard for Zespri kiwifruit growers this summer. A late February board<br />

announcement has confirmed what many had been warned to expect, with Green kiwifruit growers experiencing a further 58c a tray reduction<br />

in payments and organic Green growers a 79c a tray reduction from what they expected last November.<br />

By RICHARD RENNIE<br />

The news comes after the<br />

announcement back in August<br />

2022 when growers were<br />

informed <strong>of</strong> a $1.95 per tray reduction<br />

in Green payments and SunGold<br />

growers had a reduction <strong>of</strong> $2.80 per<br />

tray.<br />

The latest reduction has Green<br />

growers likely to take a collective hit<br />

<strong>of</strong> $40 million across the 70 million<br />

trays harvested, on top <strong>of</strong> the $136<br />

million already dealt to them back in<br />

August. It will leave over half Green<br />

growers barely breaking even this<br />

season.<br />

The earlier August 2022<br />

announcement had been accompanied<br />

by the revelation the fruit being<br />

sent to market had been the worst<br />

since early 2000s, with some fruit so<br />

bland Zespri’s own Asian GM had<br />

described them as potatoes.<br />

S<strong>of</strong>t, stained, and rotted fruit<br />

started to reveal itself post-harvest<br />

and had failed to fulfil Zespri’s long<br />

held brand promise <strong>of</strong> delivering premium<br />

quality fruit. Chinese social<br />

media had also started to fire up on<br />

fruit quality there.<br />

In a series <strong>of</strong> town hall meetings<br />

across the region recently, Zespri<br />

CEO Dan Mathieson has been delivering<br />

the bad news last season’s crop<br />

quality has dealt the sector. The latest<br />

payment downgrade comes from<br />

very poor quality fruit shipped in the<br />

final two export loads <strong>of</strong> the season<br />

to Asia and Europe.<br />

Zespri chairman Bruce<br />

Cameron confirmed the write<br />

downs in a written statement<br />

to growers late February, coming<br />

after what he acknowledged<br />

has been a particularly<br />

tough year for the sector.<br />

The news has been met with<br />

anger and dismay by growers,<br />

prompting grower group New Zealand<br />

Kiwifruit Growers Incorporated<br />

(NZKGI) to fire a sharply worded letter<br />

to the Zespri board.<br />

In it NZKGI chair Mark Mayston<br />

asks the board to explain how they<br />

got their initial orchard gate return<br />

estimate so wrong back in November,<br />

and how the latest announcement was<br />

an extreme deviation<br />

from what<br />

they had been<br />

led to expect last November.<br />

In the letter Mayston challenges<br />

Zespri’s supply chain transparency,<br />

grower communications and forecasting<br />

ability, denting grower confidence<br />

in the single seller model.<br />

Industry insiders are pointing to<br />

labour shortages as the key reason<br />

for poor quality fruit outcome, and<br />

a rise in Psa infections has also been<br />

reported in some orchards.<br />

Growers have reported poor<br />

quality harvesting techniques<br />

from contracted picking gangs<br />

resulting in fruit damage that<br />

only appears as fruit ripens,<br />

either in cool storage or on the<br />

shelf.<br />

The bad news has continued<br />

to pile up for the sector,<br />

with Cyclone Gabrielle<br />

also hitting some Gisborne<br />

and Hawke’s <strong>Bay</strong> orchards<br />

hard, many only in early stages <strong>of</strong><br />

establishment.<br />

Meantime a summer with low sunshine<br />

hours and high levels <strong>of</strong> rainfall<br />

is playing havoc with efforts to ripen<br />

fruit in time for this year’ harvest,<br />

as summer daylight hours start to<br />

shorten rapidly.<br />

Dan Mathieson has been assuring<br />

growers at a series <strong>of</strong> town hall meetings<br />

in Katikati and Te Puke Zespri<br />

has been digging deep to determine<br />

how it got its November forecast so<br />

wrong, leaving growers well short in<br />

February.<br />

He has acknowledged the original<br />

payment forecast was “significantly<br />

overstated”, and apologised to growers<br />

for this.<br />

He also acknowledged the on-going<br />

impacts the season’s atrocious<br />

weather was having on the sector, and<br />

said Zespri intended to continue to<br />

work closely with NZKGI to support<br />

growers.<br />

BUSINESS NEWS COLUMNIST LEADS A<br />

CHARGE IN PORK PIE RUN FOR CHARITY<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> <strong>News</strong> franchising columnist, Nathan Bonney is taking this Mini<br />

to Invercargill – and aims to raise a huge $100,000 for KidsCan along the way.<br />

Nathan has joined forces with<br />

another franchise personality<br />

Matt Woodley to take on the<br />

fundraising challenge .<br />

The Pork Pie Charity Run is a<br />

biennial fundraising road trip based<br />

loosely on the route taken by the<br />

Blondini Gang in the classic Kiwi<br />

movie Goodbye Pork Pie.<br />

The first run took place in 2009<br />

with 36 teams making the trip from<br />

Kaitaia to Invercargill over 5 days.<br />

The subsequent six runs have seen<br />

participant numbers increase to a 50<br />

car maximum, with the run extended<br />

to six days on the road.<br />

For <strong>2023</strong>, the Charity Run will<br />

once again be supporting KidsCan,<br />

New Zealand’s leading charity dedicated<br />

to helping Kiwi kids experiencing<br />

hardship by providing food,<br />

jackets, shoes and health products to<br />

schools and early childhood centres<br />

across New Zealand.<br />

And in <strong>2023</strong>, long-time friends<br />

and franchise personalities Nathan<br />

Bonney and Matt Woodley, are teaming<br />

up under the name ‘The Bonodleys’<br />

to hit the road with a Big Hairy<br />

Audacious Goal – to raise $100,000<br />

for the cause.<br />

Nathan is a Director <strong>of</strong> franchise<br />

brokers Iridium Partners, while Matt<br />

is CEO <strong>of</strong> the Donovan Group, whose<br />

brands KiwiSpan and Coresteel operate<br />

franchisee/licensee networks<br />

nationally.<br />

Support Kiwi kids<br />

The Bonodleys are very keen to<br />

engage with and solicit support from<br />

across the franchise sector. According<br />

to the 2021 Franchising New Zealand<br />

survey, 90 percent <strong>of</strong> franchise brands<br />

return pr<strong>of</strong>its to the community, and<br />

almost two-thirds contribute more<br />

than $20,000 a year.<br />

‘The Pork Pie Charity Run is a fantastic<br />

cause and a fun event, and one<br />

that brands can get behind – they can<br />

engage and involve their franchisees<br />

throughout the country and feel great<br />

that they are directly contributing to<br />

creating better futures for Kiwi kids,’<br />

says Matt. ‘100 percent <strong>of</strong> donations<br />

are going directly to KidsCan.’<br />

And Nathan reports, ‘Initial support<br />

from the franchise community<br />

has been fantastic.<br />

The Franchise Association <strong>of</strong> New<br />

Zealand had the team (and Mini)<br />

along to its annual Christmas Party<br />

and we have already had donations,<br />

support and pledges from Franchise<br />

New Zealand media, Columbus C<strong>of</strong>fee.<br />

The C<strong>of</strong>fee Club, Crank’d Media,<br />

Economist and VIP Home Services.’<br />

Brands which make donations <strong>of</strong><br />

$1000 and greater have the opportunity<br />

to have their logos displayed<br />

on the Mini up to and over the event<br />

from Paihia to Invercargill.<br />

‘By donating to our team, you’ll<br />

be helping KidsCan to provide essentials<br />

to kids across New Zealand,’<br />

Nathan ends.<br />

‘With these essentials, kids can<br />

Matt Woodley (left) and Nathan Bonney<br />

with the Mini they’re taking to Invercargill.<br />

participate in learning and have the<br />

opportunity for a better future. We<br />

would love your help to reach our<br />

fundraising goal, no amount is too<br />

big or small! To find out more, email<br />

nathan@iridium.net.nz or go straight<br />

to our fundraiser page at www.<br />

porkpiecharityrun.org.nz/page/<br />

TheBonodleys Thank you for your<br />

generosity!’


6 BAY OF PLENTY BUSINESS NEWS <strong>March</strong> <strong>2023</strong><br />

Taking better care <strong>of</strong> our city<br />

Complaints about overlong grass and out<strong>of</strong>-control<br />

weeds have been a consistent<br />

theme amongst the communications we have<br />

received from city residents <strong>of</strong> late.<br />

By ANNE TOLLEY, Tauranga<br />

Commission Chair<br />

The wettest winter, spring<br />

and summer on record,<br />

coupled with mild temperatures,<br />

have created optimum<br />

growth conditions and<br />

that means our normal mowing<br />

and maintenance schedules<br />

haven’t been ‘cutting it’.<br />

S<strong>of</strong>t ground conditions<br />

have also prevented machinery<br />

working a lot <strong>of</strong> the time<br />

and we now have a significant<br />

catch-up effort underway to get<br />

on top <strong>of</strong> the situation, with<br />

high pr<strong>of</strong>ile sites being prioritised<br />

and contractors working<br />

extended hours and on Saturdays.<br />

Looking beyond these<br />

short-term issues, Tauranga<br />

City Council is looking to progressively<br />

take back control <strong>of</strong><br />

much <strong>of</strong> our parks and open<br />

spaces maintenance work, as<br />

existing contracts come to an<br />

end.<br />

This exciting initiative is<br />

all about ensuring Tauranga<br />

remains a great place to live<br />

and play and follows a recent<br />

assessment <strong>of</strong> these maintenance<br />

activities, which indicated<br />

that we can achieve a<br />

higher level <strong>of</strong> service than<br />

the current contract model is<br />

delivering.<br />

We want everyone to be<br />

proud <strong>of</strong> their city and keeping<br />

Anne Tolley<br />

our open spaces well-maintained<br />

and beautiful is a key<br />

contributor to that.<br />

So in future, activities like<br />

weeding, gardening, mowing,<br />

keeping pests at bay, looking<br />

after our dunes and walkways,<br />

keeping Mauao and other parks<br />

and reserves in perfect condition<br />

and attending to customer<br />

requests will be done in-house,<br />

by staff who are totally focused<br />

on great outcomes.<br />

TCC is looking to<br />

progressively take<br />

back control <strong>of</strong><br />

much <strong>of</strong> our parks<br />

and open spaces<br />

maintenance work.”<br />

This is not about reducing<br />

costs – it’s about doing more<br />

with our current budget. That<br />

means owning the condition <strong>of</strong><br />

our greenspace assets, delivering<br />

a high-quality service and<br />

being more agile in the way<br />

we assess our priorities and<br />

respond to community feedback.<br />

It will also create efficiencies<br />

across workstreams<br />

and by incorporating our transport<br />

network greenspaces, we<br />

will be able to deliver a consistently<br />

better ‘look and feel’<br />

across all <strong>of</strong> our streets, gardens,<br />

parks and reserves.<br />

Another key aspect <strong>of</strong><br />

‘greening’ our city is an ongoing<br />

focus on creating shady<br />

areas by planting more trees, or<br />

as a short-term solution, installing<br />

shade structures. As climate<br />

change impacts our weather,<br />

shade will become increasingly<br />

important, both for the comfort<br />

<strong>of</strong> park users and in providing<br />

sun protection.<br />

These initiatives directly<br />

contribute to the ‘prioritise<br />

nature’ element <strong>of</strong> our city<br />

vision, which states that Tauranga<br />

is a city where “…we<br />

celebrate, protect and enhance<br />

our natural environment”. I<br />

think that is a goal we can all<br />

aspire to – working together<br />

to create the change our city<br />

needs.<br />

Nga mihi<br />

Lord <strong>of</strong> the Bins.<br />

One ring to avoid it all.<br />

Lord <strong>of</strong><br />

the Bins.<br />

One Ring to<br />

Remove it All<br />

Quite a clever name<br />

and slogan for a waste<br />

removal business, you<br />

might think. That’s obviously<br />

what Nick Lockwood and Dan<br />

Walker, the operators <strong>of</strong> the<br />

business in Hove, England,<br />

thought when they chose the<br />

name and phrase.<br />

Alas, Middle-Earth Enterprises,<br />

LLC, who owns the<br />

rights in “Lord <strong>of</strong> the Rings”<br />

and “One ring to rule them all”<br />

in the UK, do not share their<br />

thinking.<br />

As recently reported and<br />

discussed, 1 Middle-Earth<br />

Enterprises has demanded<br />

Messrs Lockwood and Walker<br />

change their business’s name<br />

and slogan on the grounds they<br />

infringe Middle-Earth Enterprises’<br />

trade mark rights.<br />

Add to that the use <strong>of</strong> an<br />

almost identical font for “Lord<br />

<strong>of</strong> the Bins” to the “Lord <strong>of</strong> the<br />

Rings” font by Messrs Lockwood<br />

and Walker and you<br />

can certainly see where Middle-Earth<br />

Enterprises is coming<br />

from.<br />

Mr Lockwood described<br />

Middle-Earth Enterprises’<br />

letter as “bully-boy tactics”, 2<br />

while Mr Walker claimed,<br />

“We’re just trying to make<br />

people smile and make a<br />

living”.<br />

While the latter may be so,<br />

INTELLECTUAL PROPERTY ISSUES<br />

> BY BEN CAIN<br />

Ben Cain is a Senior Associate at James & Wells. He can be<br />

contacted at 07 928 4470 (Tauranga), 07 957 5660 (Hamilton),<br />

and ben.cain@jamesandwells.com<br />

on reviewing the facts I would<br />

have to dispute Mr Lockwood’s<br />

assertion. Middle-Earth Enterprises<br />

is the owner <strong>of</strong> very<br />

valuable trade mark rights, and<br />

as the owner <strong>of</strong> those rights it<br />

will – like many other businesses<br />

– enforce those rights<br />

if it perceives they are under<br />

threat.<br />

In this case, the threat to<br />

Middle-Earth Enterprises’<br />

rights might not be obvious –<br />

collecting waste is, after all, a<br />

kingdom away from a quest to<br />

save the world from consummate<br />

evil – but it is present<br />

nonetheless as many a trade<br />

mark lawyer will tell you, particularly<br />

given the use <strong>of</strong> “One<br />

ring to remove it all” and the<br />

use <strong>of</strong> an almost identical font<br />

for “Lord <strong>of</strong> the Bins”.<br />

It’s possible Messrs Lockwood<br />

and Walker might not<br />

have attracted Middle-Earth<br />

Enterprises’ wrath if they had<br />

used “Lord <strong>of</strong> the Bins” in a<br />

different font and not used the<br />

“One ring…” slogan. 3<br />

A more cautious approach<br />

however would have been not<br />

to use the name at all (as, interestingly,<br />

Hutt City Council<br />

(NZ) chose not to do in 2021<br />

for one <strong>of</strong> its electric recycling<br />

trucks 4 ).<br />

The unfortunate reality<br />

Lord <strong>of</strong> the Bins, making headlines in The Sun, UK on Feb<br />

2, <strong>2023</strong>. www.thesun.co.uk/news/21258015/lord-<strong>of</strong>-the-bins-change-name<br />

though is that Messrs Lockwood<br />

and Walker ‘chose…<br />

poorly’ (to quote the Grail<br />

Knight from “Indiana Jones<br />

and the Last Crusade”).<br />

As I wrote in an article for<br />

this publication in 2019, 5 when<br />

it comes to choosing a name<br />

for your business, product<br />

or service, it makes sense to<br />

choose wisely.<br />

That means conducting a<br />

trade mark search before you<br />

settle on a name and calling a<br />

specialist trade mark attorney<br />

for advice.<br />

Thus it is that one ring to a<br />

trade mark attorney by Messrs<br />

Lockwood and Walker could<br />

have avoided it all.<br />

1. Eg. https://www.theguardian.com/uk-news/<strong>2023</strong>/feb/04/refuse-firm-lord-<strong>of</strong>-the-bins-ordered-to-change-its-name-by-tolkien-franchise; https://www.rnz.co.nz/national/programmes/thepanel/audio/2018876728/the-panel-with-allan-blackman-and-julia-hartley-moore<br />

2. https://www.thesun.co.uk/news/21258015/lord-<strong>of</strong>-the-bins-change-name/ 3. As the makers <strong>of</strong> a children’s game called “Lord <strong>of</strong> the Bins” have done: https://lumaworld.in/products/lord-<strong>of</strong>-the-bins-a-strategy-card-game-to-learn-waste-management<br />

4. https://www.nzherald.co.nz/nz/trucky-mctruckface-christened-as-one-<strong>of</strong>-lower-hutts-seven-new-recycling-trucks/HU5Z5KEZR5QQGBKNBDK7ZB5PXY/ 5. https://bopbusinessnews.co.nz/intellectual-property-issues/names-have-power-so-choose-yours-wisely/


<strong>March</strong> <strong>2023</strong> BAY OF PLENTY BUSINESS NEWS 7<br />

Helping SMEs recover in<br />

wake <strong>of</strong> Cyclone Gabrielle<br />

Aotearoa was rocked by<br />

an extreme weather<br />

event in February, with<br />

Cyclone Gabrielle leaving<br />

many Kiwis dealing with the<br />

aftermath <strong>of</strong> such an unprecedented<br />

and horrific event.<br />

Many households and businesses<br />

were severely damaged,<br />

undoubtedly causing significant<br />

trauma and distress for<br />

those involved.<br />

As we turn our attention to<br />

clean up and recovery in the<br />

wake <strong>of</strong> Cyclone Gabrielle,<br />

there are some things small<br />

business owners can keep in<br />

mind to help them get through<br />

WORKPLACE WELLBEING<br />

> BY BRIDGET SNELLING<br />

Bridget Snelling,<br />

Xero New Zealand Country Manager.<br />

and back in business.<br />

Advice for small<br />

business owners:<br />

1. Get in touch with<br />

customers and suppliers<br />

No doubt there will be disruption<br />

to your day-to-day operation,<br />

which is likely to cause<br />

delays for your customers.<br />

Proactively reaching out to<br />

discuss the situation will help<br />

get everyone on the same page<br />

when it comes to deliverables<br />

and working through the<br />

recovery in the near future.<br />

Likewise, reach out to your<br />

suppliers to check in on how<br />

they fared and what sort <strong>of</strong><br />

delays they’re facing when it<br />

comes to operating.<br />

Having a grasp on this will<br />

give you the insight necessary<br />

to plan around any shortages<br />

or obstacles your business may<br />

face in the short term.<br />

2. Government support<br />

schemes<br />

In the aftermath <strong>of</strong> an incident<br />

like Cyclone Gabrielle, the<br />

Government can support the<br />

recovery with financial aid.<br />

For example, the Civil<br />

Defence Payment could be an<br />

option to consider.<br />

If your insurance is unable<br />

to cover the extent <strong>of</strong> the damage,<br />

there are opportunities to<br />

seek additional relief to get<br />

you back on your feet as soon<br />

as possible.<br />

3. Take stock and plan<br />

ahead<br />

Natural disasters are something<br />

we <strong>of</strong>ten don’t consider<br />

as part <strong>of</strong> our business plans<br />

until it’s too late.<br />

Now’s the time to review<br />

your business protocols around<br />

natural disasters to ensure you<br />

and your employees know<br />

what to do in the event <strong>of</strong> an<br />

incident.<br />

Creating a Civil Defence<br />

pack with important numbers<br />

and information would also<br />

be helpful, as well as regularly<br />

checking your first aid kits.<br />

As we start to recover and<br />

rebuild, small business owners<br />

can take the lessons learned<br />

from Cyclone Gabrielle and<br />

investigate ways to mitigate<br />

the impact <strong>of</strong> potential future<br />

incidents.<br />

For example, if your business<br />

was brought to a standstill<br />

due to the cyclone, what<br />

role could digitalisation play<br />

in helping you reopen and get<br />

back on track in the future?<br />

Cloud-based tools and technology<br />

can help businesses<br />

operate during challenging<br />

times, like when we saw Kiwi<br />

small businesses embrace<br />

e-commerce in droves during<br />

the Covid-19 lockdowns in<br />

2020.<br />

4. Look after your and<br />

your staff’s wellbeing<br />

Events like this can be quite<br />

traumatic, especially if you or<br />

your employees have experienced<br />

major damage to property<br />

or belongings.<br />

Taking care <strong>of</strong> your<br />

wellbeing – as well as your<br />

employees’ wellbeing – is so<br />

important in these times <strong>of</strong><br />

hardship.<br />

At Xero, we’ve extended<br />

the Xero Assistance Programme<br />

to all small businesses<br />

in the North Island, regardless<br />

<strong>of</strong> whether they are subscribers<br />

or not.<br />

This means any small business<br />

owner, employee or their<br />

family in the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

will have access to three free<br />

confidential counselling sessions<br />

through XAP until Friday<br />

31 <strong>March</strong>.<br />

To anyone wanting to<br />

access XAP, simply message<br />

xap@xero.com.<br />

Now’s the time to show<br />

support for your employees, as<br />

well as taking care <strong>of</strong> your own<br />

personal wellbeing.<br />

LOOK TO THE STARS –<br />

<strong>2023</strong>, the year <strong>of</strong> LEOs<br />

ADVERTORIAL<br />

In early February, I finished drafting<br />

a piece about how <strong>2023</strong> would<br />

be a massive year for Low Earth<br />

Orbiting satellites – think Starlink,<br />

the most famous company in this<br />

growing sector.<br />

Then Cyclone Gabrielle hit.<br />

Our teams leapt into action.<br />

2degrees deployed test units we had<br />

into the field to provide backhaul<br />

(that’s getting info from a cell site<br />

into our network), helicoptering<br />

units into Gisborne, and we weren’t<br />

the only one. The single unit in<br />

Wairoa was whipped <strong>of</strong>f a bach and<br />

used as the town’s only method <strong>of</strong><br />

connection.<br />

We have expedited introducing<br />

a Starlink <strong>Business</strong> <strong>of</strong>fering, making<br />

10 enterprise grade devices<br />

available to emergency services to<br />

help with Cyclone recovery efforts,<br />

and opened registrations <strong>of</strong> interest<br />

from our business customers.<br />

LEOs are here – and they are<br />

going to be a core component <strong>of</strong> the<br />

telco mix going forward.<br />

The telecommunications market<br />

is about to be revolutionised –<br />

again – thanks to tens <strong>of</strong> thousands<br />

<strong>of</strong> satellites being deployed by<br />

companies such as SpaceX, Amazon,<br />

and OneWeb.<br />

Already thousands <strong>of</strong> Kiwis<br />

have snapped up SpaceX Starlink<br />

units – allowing remote dwellers to<br />

get online where no mobile or fibre<br />

services are available.<br />

But that’s just the start. This<br />

year will be when they move from<br />

a handy way to connect the bach<br />

to the web into a major <strong>of</strong>fering<br />

for businesses and a key tool for<br />

redundancy and resiliency in geographically<br />

diverse and challenging<br />

countries such as ours.<br />

Another major benefit will be<br />

service such as additional mobile<br />

coverage when in remote areas – a<br />

huge benefit for thousands <strong>of</strong> farmers,<br />

boaties, trampers, and adventurers<br />

generally.<br />

For companies like 2degrees,<br />

we aren’t in a position to launch<br />

our own LEO network (Starlink has<br />

a constellation <strong>of</strong> more than 3,300<br />

low-earth orbit (LEO) satellites<br />

providing high speed broadband<br />

connectivity to some 45 countries),<br />

but we are in a position to innovative<br />

via the technology – and help<br />

Andrew Fairgray, Chief <strong>Business</strong> Officer, 2degrees<br />

Kiwi businesses ensure it’s suitable<br />

for their needs.<br />

Late last year we established a<br />

pro<strong>of</strong> <strong>of</strong> concept in the Chatham<br />

Islands, as remote as it gets in<br />

New Zealand. The Te Whero Aura<br />

medical centre on the island now<br />

employs a Starlink unit to ensure<br />

its telemedicine links are always<br />

available and <strong>of</strong> great quality, and<br />

we expect other organisations with<br />

unique needs to follow suit.<br />

As an additional arrow in the<br />

2degrees quiver, Starlink and other<br />

LEO products that will make it<br />

highly attractive for the many<br />

farms and other organisations<br />

located in the countryside requiring<br />

high speed connectivity. Far from<br />

a replacement or even competitor<br />

for the UFB network, LEO services<br />

have their place in our service stable,<br />

providing greater options and<br />

flexibility for the varied needs <strong>of</strong><br />

our business customers.<br />

And, yes, Starlink is perhaps<br />

the ultimate redundancy solution<br />

for disaster recovery and business<br />

continuity. As a failover service,<br />

it can keep you connected even if<br />

cables are washed away, cell towers<br />

upended in a quake, or any other<br />

major disaster strikes. Again, having<br />

this additional option is invaluable<br />

for creating solutions for specific<br />

use cases as they emerge.<br />

While <strong>2023</strong> is a year where<br />

many are expecting challenges, it’s<br />

also one where we can expect satellite<br />

internet to come <strong>of</strong> age. You<br />

might even say it’s written in the<br />

stars.


8 BAY OF PLENTY BUSINESS NEWS <strong>March</strong> <strong>2023</strong><br />

<strong>Business</strong><br />

vs dating<br />

“You don’t know what you don’t know” is a well-known adage.<br />

“You don’t know who you don’t know” is equally valid in my opinion.<br />

“I never knew who I was living with until I spent a year trapped at<br />

home with them.” This is the catch cry <strong>of</strong> many in our post-Covid<br />

society. People are hitting the internet in droves to find their next exwife,<br />

ex-husband or consciously coupled life partner.<br />

CREDIT CONTROL<br />

> BY NICK KERR<br />

Nick Kerr is regional manager for DebtFree NZ Ltd and director<br />

<strong>of</strong> International Private Investigations Ltd. He can be reached<br />

on 021 876 527 and Nick@debtfreenz.com<br />

People are swiping left,<br />

swiping right and social<br />

media is stalking potential<br />

mates with an RSI enduring<br />

level <strong>of</strong> dedication; They<br />

have learned that you cannot<br />

know too much about a person<br />

if you are to successfully couple<br />

with them in a long-term<br />

fashion.<br />

If this level <strong>of</strong> investigative<br />

fervor was used in the business<br />

world I would be one very<br />

impoverished credit management<br />

advisor, not to mention a<br />

very bored fraud investigator.<br />

The separation between<br />

personal and business life is<br />

essential to have a good worklife<br />

balance (many <strong>of</strong> us have<br />

learned that the hard way), but<br />

just because the arena is different,<br />

awareness <strong>of</strong> warning<br />

signs should be no less diligent.<br />

The reason this, some<br />

may say, strange comparison<br />

has come to me is the result <strong>of</strong><br />

two phone calls I received just<br />

last week.<br />

The first call was from a<br />

friend seeking advice: she had<br />

matched with a chap on a popular<br />

dating app, they had begun<br />

chatting, the guy seemed like a<br />

genuine ‘good bloke’ and he<br />

asked her if she would like to<br />

meet up.<br />

She had his name and did a<br />

full social media stalk on him<br />

and could not find anything<br />

at all, bar a very locked down<br />

Facebook page.<br />

She mentioned that all <strong>of</strong><br />

his pictures were quite dated<br />

and none clearly showed his<br />

face. Also, he wanted to meet<br />

in a rest area near a forest.<br />

After reviewing the evidence<br />

I deduced that her conversation<br />

with this person was<br />

possibly the prelude to a very<br />

unpleasant experience.<br />

The second call was from<br />

a client who had completed<br />

some earthworks for a major<br />

development in the South<br />

Island.<br />

The developer had not paid<br />

the final progress claim <strong>of</strong><br />

$115k.<br />

I asked him the usual questions:<br />

“Did you submit a payment<br />

claim with the correct<br />

paperwork? Is there an agreed<br />

‘terms <strong>of</strong> trade’ and does it<br />

have the proper provisions?<br />

Did you credit check the<br />

developer? How old is the debt<br />

and who is the debtor?”<br />

My client had done all <strong>of</strong><br />

the post engagement steps perfectly<br />

but unfortunately he did<br />

not do a credit check or simple<br />

google search.<br />

I did one while he was on<br />

the phone and the first four<br />

results were a picture <strong>of</strong> the<br />

developers face with headlines<br />

like, “Bad paying developer<br />

strikes again,” “Developer<br />

sentenced to home detention<br />

for fraud,” and “Bankrupt<br />

developer found guilty.”<br />

His credit report linked him<br />

to three aliases used within<br />

the last 12 months and several<br />

judgements against his true<br />

legal name.<br />

My client will be suing for<br />

the remainder through his lawyer,<br />

but it doesn’t look good<br />

as there a quite a few others in<br />

line.<br />

The two scenarios above<br />

demonstrate to me that best<br />

practice is best practice in all<br />

areas <strong>of</strong> life. My friend avoided<br />

a potentially dangerous situation<br />

and my client learned a<br />

very expensive lesson.<br />

Just a thought<br />

Nick<br />

<strong>Business</strong> continuity and disaster<br />

recovery in <strong>2023</strong><br />

Our thoughts go out to all those who have been affected in the recent<br />

cyclonic events and our thanks to those incredible folk who are<br />

involved in the response and recovery efforts. The work will continue<br />

long after Gabrielle has exited the headlines. Friends, family, friends we<br />

have not yet met, and businesses who have been affected will need our<br />

support and assistance for a long time. Let’s look out for each other<br />

and, where we have opportunity, let us do what we can.<br />

TECH TALK<br />

> BY YVONNE BLANCH<br />

Yvonne Blanch is an Account Manager at Stratus Blue.<br />

She can be contacted at yvonne@stratusblue.co.nz<br />

As we have seen with the<br />

catastrophic weather<br />

events that have<br />

affected our country in the<br />

last few months, damage from<br />

natural events can be swift<br />

and devastating and have long<br />

term consequences, not only to<br />

families and homes, but also to<br />

businesses and livelihoods.<br />

Previously damage from<br />

weather events may have been<br />

able to be remedied quickly,<br />

with power restored, roads<br />

cleared and communication<br />

networks operational, but<br />

such has been the severity <strong>of</strong><br />

Cyclone Gabrielle that long<br />

term and widespread damage<br />

has been suffered by our communications<br />

infrastructure and<br />

the power and transport networks.<br />

Our IT relies on these<br />

utilities to continue to function.<br />

All businesses should<br />

plan for what they can do to<br />

mitigate any issues, continue<br />

business as best they can and<br />

maintain livelihoods while services<br />

are being restored.<br />

Does your business have<br />

a <strong>Business</strong> Continuity and<br />

Disaster Recovery (BCDR)<br />

Plan? If you do, it is a good<br />

time to review and update it,<br />

taking into account what we<br />

are learning from the weather<br />

events <strong>of</strong> <strong>2023</strong>. If you don’t<br />

have a BCDR plan, there is no<br />

better time than the present to<br />

start.<br />

BCDR planning doesn’t<br />

just cover what to do with your<br />

IT infrastructure, applications,<br />

data, internet access and telecoms<br />

but also all other operational<br />

facets <strong>of</strong> your business<br />

such as where you work (<strong>of</strong>fice<br />

and home), how you travel,<br />

what to do in the event <strong>of</strong> theft<br />

or power outage etc. Do you<br />

have up-to-date and securely<br />

accessible in all circumstances<br />

contact information <strong>of</strong> your<br />

employee’s next <strong>of</strong> kin?<br />

Your IT Account Manager<br />

should be able to assist with<br />

advice on and implementation<br />

<strong>of</strong> solutions regarding your IT.<br />

Make contact and start talking.<br />

You should consider what<br />

hardware, applications, data,<br />

and functionality your business<br />

requires to function and<br />

how long you can function<br />

without it.<br />

How will you protect it?<br />

How will you access it and<br />

operate it in disaster scenarios?<br />

Also, how can you keep<br />

it secure while operating in<br />

less-than-optimal situations?<br />

The bad actors aren’t going<br />

to go on holiday and wait until<br />

you’re back to normal before<br />

resuming their attacks. Your<br />

vulnerability will be noted<br />

and added protection will be<br />

required against the digital<br />

as well as the warm blooded<br />

looters.<br />

Let’s work together for<br />

recovery but also to make our<br />

business landscape more resilient<br />

and robust in the future.<br />

The worst thing we can do is<br />

not learn from the past.


<strong>March</strong> <strong>2023</strong> BAY OF PLENTY BUSINESS NEWS 9<br />

100-mile ultramarathon reveals<br />

secrets to timeless business success<br />

Running 100 miles / 162 km non-stop is not for the faint <strong>of</strong> heart.<br />

But undertaking such an impossible challenge can uncover scary,<br />

uncomfortable – and pr<strong>of</strong>itable – truths about our lives and<br />

businesses. Not tempted to slip into your running gear? Fear not. I ran<br />

100 miles so you don’t have to.<br />

In February, I ran a 26-hour<br />

gauntlet <strong>of</strong> lakes, forests and<br />

trails to finish the Tarawera<br />

Ultramarathon.<br />

Running the equivalent<br />

<strong>of</strong> four back-to-back marathons<br />

all day and all night can<br />

change a person. The experience<br />

reveals harsh, controversial<br />

and compelling truths<br />

about our lives, businesses and<br />

relationships.<br />

Now, I can reveal these<br />

secrets to you. Be warned:<br />

What you’re about to see cannot<br />

be unseen.<br />

MINING BUSINESS WEALTH<br />

> BY FREDDIE BENNETT<br />

Guinness World Record Holder, podcast host and bestselling author,<br />

Freddie is known as ‘The Pr<strong>of</strong>it Hunter’. He helps business owners<br />

enjoy more time, money and freedom by discovering and extracting<br />

hidden pr<strong>of</strong>its in their companies. Freddie@conqueryourmedia.com<br />

1. You’re never ready for<br />

what happens next<br />

I am not a runner. Four<br />

years ago I was overweight,<br />

unhealthy, depressed and<br />

drunk. One day I decided to<br />

quit self-destruction and see<br />

what I was capable <strong>of</strong>.<br />

Sure, I’ve run a few marathons<br />

and slow ultramarathons<br />

since those dark days, but<br />

never anything close to 100<br />

miles.<br />

In fact, prior to this race, I’d<br />

only run 50 miles once in my<br />

life…and that was three years<br />

ago.<br />

But when you set your<br />

sights on a goal, you cannot<br />

wait until you feel ‘ready’.<br />

Because if you do, you will be<br />

waiting for an eternity.<br />

Go. Now. Take the first<br />

step.<br />

2. Don’t get drunk on data<br />

Thanks to the wonders <strong>of</strong> technology<br />

I could track my speed,<br />

heart rate, oxygen, cadence,<br />

altitude … and a whole lot <strong>of</strong><br />

stuff I didn’t even understand.<br />

It’s easy to get drunk on<br />

data, but choose creation over<br />

consumption.<br />

I stumbled along the first<br />

few miles, eyes glued to smartwatch,<br />

worrying about my race<br />

going ‘wrong’.<br />

But only when I looked<br />

up and decided to create the<br />

adventure I wanted to experience,<br />

did a smile appear on my<br />

face.<br />

3. Confidence is a con<br />

I desperately wanted to feel<br />

confident about running 100<br />

miles.<br />

But what would happen if<br />

we knew confidence would<br />

never arrive? Would we stop<br />

the pursuit <strong>of</strong> our goals? Or<br />

would we say, “confidence<br />

be damned” and take action<br />

anyway?<br />

The confidence I was seeking<br />

arrived not at the start line,<br />

but at the finish.<br />

Stop waiting, start deciding.<br />

4. Everyone needs a little<br />

‘crazy’ in their life<br />

I’ve lost count <strong>of</strong> the number<br />

<strong>of</strong> people who called me<br />

‘crazy’ to even attempt running<br />

100 miles.<br />

For a people-pleaser who<br />

likes to be liked, that was a<br />

bitter pill for me to swallow.<br />

But one person’s ‘crazy’ is<br />

someone else’s ‘everyday’. I<br />

don’t care whether it’s ultramarathons,<br />

golf, nordic walking,<br />

hardcore knitting, extreme<br />

reading or whatever else floats<br />

your boat … find your thing<br />

and throw yourself into it with<br />

a passion that makes non-believers<br />

shake their heads in<br />

disbelief. Life’s too short to<br />

live someone else’s dream.<br />

5. Be a warrior, not a<br />

worrier<br />

The worried mind sees a challenge<br />

and imagines all the<br />

things that could go wrong.<br />

The warrior mind only sees an<br />

opportunity <strong>of</strong> victory.<br />

If I only thought <strong>of</strong> fear,<br />

dread and all the things that<br />

might go wrong, I would have<br />

packed my bags and gone<br />

home during those terrifying,<br />

dark, hours running alone<br />

through Rotorua forest all<br />

night.<br />

When you are afraid: take<br />

decisive action. Then the fear<br />

won’t matter. Keep taking<br />

action, and the fear will not<br />

exist.<br />

6. You don’t need another<br />

expert<br />

After running 100 kilometres,<br />

my feet were falling apart,<br />

my stomach churning and my<br />

mind in pieces. And I was just<br />

over halfway through the race.<br />

At that point I can categorically<br />

say: I knew I didn’t need<br />

another performance coach, I<br />

didn’t need another self-development<br />

book to read, I didn’t<br />

need another mindset podcast.<br />

All I needed was all I had:<br />

My self-belief, and the knowledge<br />

I could back myself to<br />

deliver.<br />

You already have everything<br />

inside you, you just need<br />

to unlock it.<br />

7. Time cannot be beaten<br />

Tick, tick went the clock. I was<br />

falling behind schedule, and at<br />

risk <strong>of</strong> missing my cut-<strong>of</strong>f time<br />

window.<br />

No matter what hacks,<br />

shortcuts and quick fixes we<br />

try … one day, time will run<br />

out.<br />

The finish line is inevitable<br />

for us all, whether we like it or<br />

not. The good news is that we<br />

have control: We get to choose<br />

whether we arrive on our<br />

hands and knees, or whether to<br />

turn up in style.<br />

8. Become a master <strong>of</strong><br />

completion<br />

I used to be a big ‘ideas’ guy.<br />

I loved to start things: businesses,<br />

relationships, projects,<br />

adventures.<br />

But I wasn’t so good at<br />

finishing them. Completing<br />

things means overcoming<br />

challenges, obstacles and<br />

issues, which isn’t very fun.<br />

When you become a ‘completer’,<br />

you prove to yourself<br />

that you can exceed your<br />

expectations.<br />

9. Create your own future<br />

The best way to predict the<br />

future is to create it.<br />

In the final few miles, I<br />

imploded. My thoughts turned<br />

to failure. How embarrassing!<br />

How many people would I<br />

let down? How stupid would<br />

I look? I was terrified by an<br />

outcome that hadn’t even happened<br />

yet.<br />

When we think <strong>of</strong> the future,<br />

the fear creeps in. But it never<br />

has to happen. We always have<br />

a choice whether to continue on<br />

our present path.<br />

10. Remember who will be<br />

there at the finish line<br />

I crossed the finish line, fell to<br />

my knees and saw my family<br />

cheering.<br />

When it mattered – when I<br />

really needed support – no-one<br />

else was there for me. Not<br />

the business partner who had<br />

promised me a life <strong>of</strong> riches;<br />

not the performance coach<br />

who ‘really wanted me to succeed’;<br />

not the boss who ‘had<br />

all my best interests at heart’;<br />

not the elusive customer who<br />

‘was definitely going to buy<br />

soon’.<br />

It is <strong>of</strong>ten those who support<br />

us the most who get the<br />

least <strong>of</strong> our time and attention<br />

in return.<br />

One day, you will reach the<br />

finish line.<br />

Who will be by your side?<br />

Give those people the version<br />

<strong>of</strong> YOU that they truly<br />

deserve.<br />

IP protection, simplified.<br />

We’ve been championing innovation since 1979.<br />

A safe pair <strong>of</strong> hands delivering outstanding results.<br />

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J&W Quarter Page Advert.indd 1<br />

2021-12-28 5:31 PM


10 BAY OF PLENTY BUSINESS NEWS <strong>March</strong> <strong>2023</strong><br />

When the proverbial hits the fan<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 />

Just when business was<br />

thinking the worst <strong>of</strong><br />

the economic impacts<br />

<strong>of</strong> Covid were behind us, we<br />

are reminded by flooding in<br />

Auckland and the significant<br />

impact <strong>of</strong> Cyclone Gabrielle<br />

that there are always risks<br />

involved in business, and<br />

unfortunately these are sometimes<br />

unforeseen and completely<br />

unrelated to the trials <strong>of</strong><br />

business-as-usual.<br />

It re-enforces how essential<br />

it is for businesses to have<br />

asset and business interruption<br />

insurance, and business continuity<br />

plans covering every<br />

aspect <strong>of</strong> the business from<br />

supply chain, human resources<br />

and, depending on the business,<br />

even stretching to utilities<br />

provision.<br />

For businesses operating<br />

within a franchise structure,<br />

there are some additional considerations<br />

for when the proverbial<br />

hits the fan.<br />

It is critical to understand<br />

the obligations in your franchise<br />

agreement, starting with<br />

fee structures; some systems<br />

generate fees or royalties<br />

based on turnover, whilst some<br />

have a flat or minimum base<br />

It [Cyclone Gabrielle] re-enforces how<br />

essential it is for businesses to have asset<br />

and business interruption insurance, and<br />

business continuity plans covering every<br />

aspect <strong>of</strong> the business from supply chain,<br />

human resources and, depending on<br />

the business, even stretching to utilities<br />

provision.<br />

fee. Whilst the former is tied<br />

directly to revenue, the latter is<br />

independent, so what happens<br />

if you are not generating any<br />

revenue?<br />

The flat fee issue raised<br />

its head during Covid and<br />

lockdowns, and responses<br />

from franchisors varied<br />

considerably.<br />

I would suggest it’s now<br />

taken into consideration by<br />

many franchisors, franchisees<br />

and their pr<strong>of</strong>essional advisors,<br />

and is certainly something<br />

that should be discussed and<br />

covered before entering into a<br />

franchise agreement.<br />

Some franchise agreements<br />

also have what are called minimum<br />

performance standards.<br />

These are designed to ensure<br />

franchisees grow and focus on<br />

their business.<br />

In effect this means if a<br />

business is underperforming<br />

the franchisee risks being in<br />

breach <strong>of</strong> their franchise agreement.<br />

But what happens if<br />

external factors hamper business<br />

performance? Will these<br />

clauses be evoked and how<br />

will they be managed?<br />

You should understand any<br />

restraints from the franchise<br />

agreement on supply chain<br />

and approved suppliers and the<br />

impact <strong>of</strong> interruptions on your<br />

franchised business.<br />

Finally, should the worst<br />

occur, and you need to exit<br />

the franchise, you should<br />

understand the termination<br />

provisions <strong>of</strong> the franchise<br />

agreement.<br />

Luckily, the above considerations<br />

will usually be<br />

addressed and understood<br />

through due diligence before<br />

entering a franchise agreement,<br />

and furthermore there<br />

are a number <strong>of</strong> advantages <strong>of</strong><br />

being part <strong>of</strong> a franchise when<br />

the proverbial hits the fan.<br />

First and foremost, as a franchisee,<br />

you are not alone. You<br />

have the support <strong>of</strong> the franchisor<br />

and in many cases, the support<br />

<strong>of</strong> other franchisees. They<br />

may have experience in the<br />

situation you find yourself, and<br />

have pre-prepared contingency<br />

plans ready to go.<br />

Whilst it’s good to know<br />

that you’re not alone, access to<br />

additional external resources<br />

can be huge.<br />

After the Christchurch<br />

earthquake we witnessed<br />

incredible support within franchise<br />

systems ranging from<br />

franchisees and franchisors<br />

physically getting stuck in<br />

and assisting with cleaning,<br />

clearing and getting back to<br />

business, loaning stock, assets<br />

and even staff, through to franchisors<br />

providing additional<br />

financial support in the form<br />

<strong>of</strong> fee holidays and re-directing<br />

marketing spend to rebuild<br />

sales.<br />

Most franchise systems are<br />

likely to have intrinsic supply<br />

chain and cost advantages<br />

including insurance, supply<br />

chain robustness, and the<br />

marketing power and reach to<br />

assist with rebuilding business<br />

levels.<br />

Year-end tax<br />

considerations<br />

TAXATION<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 />

As we are fast approaching the end <strong>of</strong><br />

the <strong>2023</strong> tax year, there are some key<br />

developments that need to be actioned before<br />

31 <strong>March</strong> (for those with a standard balance<br />

date) along with some standard year-end<br />

tax issues to consider and some recent<br />

developments that you should also bear in<br />

mind as you work through your year end.<br />

Bad debts<br />

Do you have receivables<br />

that are not likely to be<br />

paid? Make sure these<br />

bad debts are properly written<br />

<strong>of</strong>f in your accounts before<br />

year-end so that they can be<br />

deductible.<br />

Imputation credit account<br />

Your imputation credit account<br />

must have a credit balance at<br />

31 <strong>March</strong>. This applies to all<br />

taxpayers, regardless <strong>of</strong> balance<br />

date. A debit balance will<br />

result in a penalty so it is wise<br />

to pay careful attention to this<br />

especially if you have paid out<br />

imputed dividends, received<br />

tax refunds or have a loss <strong>of</strong><br />

shareholder continuity.<br />

Depreciation<br />

Check your fixed asset register:<br />

are you using the correct<br />

depreciation rates? Remember<br />

to depreciate new assets from<br />

the beginning <strong>of</strong> the month<br />

<strong>of</strong> acquisition, not just from<br />

the date <strong>of</strong> purchase. On the<br />

other hand, if you have pooled<br />

assets, these can be depreciated<br />

for the full year <strong>of</strong> purchase.<br />

If you are writing <strong>of</strong>f<br />

assets, make sure they have<br />

been disposed <strong>of</strong> by year-end.<br />

Low value assets<br />

Remember that assets that cost<br />

less than $1,000 can be immediately<br />

deducted, rather than<br />

depreciated, as long as you<br />

didn’t buy more than one <strong>of</strong><br />

the item on the same day from<br />

the same supplier.<br />

Trading stock<br />

Have you considered reviewing<br />

your trading stock valuation?<br />

A stocktake should be<br />

done at balance date, and any<br />

trading stock that is obsolete<br />

may be able to be re-valued.<br />

You must be able to substantiate<br />

valuations that are below<br />

cost.<br />

Losses – forfeited if<br />

continuity breach<br />

If you are expecting to carry<br />

forward tax losses and your<br />

company has had a change<br />

in shareholding during the<br />

year, you may want to check<br />

whether the shareholder continuity<br />

and business continuity<br />

rules have been breached.<br />

A breach <strong>of</strong> both can result<br />

in all <strong>of</strong> your tax losses being<br />

forfeited.<br />

Fourth quarter FBT returns<br />

31 <strong>March</strong> also marks the end<br />

<strong>of</strong> the FBT year, regardless <strong>of</strong><br />

your financial balance date.<br />

The <strong>March</strong> quarter (or annual)<br />

FBT returns are due to be filed<br />

by 31 May <strong>2023</strong>.<br />

This presents an opportunity<br />

to use the various alternate<br />

rate options to reduce the<br />

FBT payable from the standard<br />

63.93% rate.<br />

GST mixed use taxable<br />

and non-taxable supplies<br />

If you are GST registered and<br />

have assets that are used to<br />

make both GST taxable and<br />

GST exempt supplies, you<br />

may need to make an annual<br />

change <strong>of</strong> use adjustment in<br />

the GST return period that<br />

includes your balance date.<br />

GST invoicing changes<br />

from 1 April <strong>2023</strong><br />

Gone are the days <strong>of</strong> GST tax<br />

invoices (kind <strong>of</strong>). I remind<br />

you that from 1 April <strong>2023</strong>, the<br />

current requirements for tax<br />

invoices are being relaxed.<br />

It will no longer be necessary<br />

to hold a valid tax invoice<br />

to claim an input tax deduction<br />

and details <strong>of</strong> what you need<br />

to provide your customers in<br />

relation to sales are changing.<br />

You don’t need to change<br />

your existing practices, but<br />

you may find that you get different<br />

looking documents from<br />

your suppliers for purchases<br />

you make.<br />

UOMI rate increase<br />

IR use <strong>of</strong> money interest rates<br />

have shot up recently, currently<br />

sitting at 9.21% for<br />

underpayments <strong>of</strong> tax. If we<br />

see further rises in the OCR,<br />

we can expect that the IR rate<br />

may also increase further.<br />

This high interest rate<br />

makes it much more attractive<br />

to make use <strong>of</strong> tax pooling to<br />

minimise your overall interest<br />

cost. If you have provisional<br />

or terminal tax payments to<br />

make, and do not already use<br />

tax pooling, I urge you to look<br />

into this.<br />

The tax pooling process not<br />

only minimises your interest<br />

cost, it can also provide the<br />

flexibility to make your tax<br />

payments at times that suit<br />

your own cashflow patterns.<br />

Navigating all <strong>of</strong> the tax<br />

rules and obligations can be<br />

a nuisance for people who<br />

understandably just want to<br />

focus on running their business.<br />

If you have questions or<br />

would like help managing your<br />

end <strong>of</strong> year tax affairs, please<br />

seek advice from your tax<br />

accountant or adviser.


<strong>March</strong> <strong>2023</strong> BAY OF PLENTY BUSINESS NEWS 11<br />

Escape with Armageddon<br />

– entertainment and fandom at its finest, since 1995<br />

By SCOTT YEOMAN<br />

William ‘Bill’ Geradts, owner<br />

and operator <strong>of</strong> one <strong>of</strong> New<br />

Zealand’s largest public<br />

expo events, Armageddon, is by<br />

his own description “an old school<br />

nerd”.<br />

He beams in from Christchurch,<br />

his <strong>of</strong>fice visible in the background<br />

and full <strong>of</strong> an assortment <strong>of</strong> figurines<br />

and other entertainment<br />

paraphernalia.<br />

Bill explains how he is currently<br />

listening to a podcast about a group<br />

<strong>of</strong> guys rewatching the original Star<br />

Trek: The Next Generation from the<br />

1980s.<br />

In his next breath – and this is<br />

the secret to Armageddon’s success<br />

– Bill is talking about the hit<br />

<strong>2023</strong> show The Last <strong>of</strong> Us, Game<br />

<strong>of</strong> Thrones, and the new trailer for<br />

The Flash which has just “dropped<br />

today”. “Feed me more,” he says<br />

with a laugh.<br />

The 52-year-old’s appetite for<br />

entertainment is insatiable – he is a<br />

Doctor Who obsessive, he creates<br />

and publishes comics and graphic<br />

novels – but at the same time is in<br />

no way stuck in the pop culture <strong>of</strong><br />

the past.<br />

Armageddon wouldn’t still be<br />

around if he was.<br />

“We’re always evolving, and<br />

that’s why it’s called Armageddon,”<br />

Bill says. “It’s a name that means<br />

nothing. It is just a cool name for<br />

what we’re doing. It’s not a Comic-Con,<br />

it’s not an anime event, it’s<br />

not a K-pop festival, it’s not a gaming<br />

expo. It is a bit <strong>of</strong> everything, and<br />

that’s where our strength lies.”<br />

Armageddon Expo started in<br />

Auckland in 1995 and over the past<br />

28 years has grown to include events<br />

in Wellington, Christchurch, Hamilton,<br />

Tauranga and Palmerston North.<br />

There have also been Armageddon<br />

events held in Melbourne.<br />

“It’s been my baby since we created<br />

it,” Bill says.<br />

The “we” being him and his “very<br />

patient wife” Adele.<br />

“We did a couple <strong>of</strong> years’ worth<br />

<strong>of</strong> Doctor Who video days beforehand,<br />

and that evolved into Armageddon,<br />

and pretty much really, in<br />

my 20s, it was just a great way to<br />

pay for all my geek stuff that I was<br />

buying. That’s the whole reason it<br />

was created. I needed to buy Doctor<br />

Who videotapes from England and<br />

they were expensive.”<br />

Now Armageddon attracts thousands<br />

<strong>of</strong> people each year. At the<br />

annual Tauranga event alone, between<br />

10,000-11,000 tickets are sold.<br />

This year will be Armageddon’s<br />

seventh year in Tauranga, always at<br />

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

“One <strong>of</strong> the things I love most<br />

about <strong>Bay</strong>park is that it gives us room<br />

to breathe,” Bill says. “We’re bringing<br />

some extra gaming stuff this year<br />

and we needed room to do it, and<br />

we’ve got the room here.”<br />

Armageddon takes over the whole<br />

indoor arena for the weekend, as well<br />

some <strong>of</strong> the space outside.<br />

“It’s got all the facilities we need,<br />

it’s easy to use, it’s reasonably central,<br />

it hits a good base around the<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>,” Bill says.<br />

“But, at the end <strong>of</strong> the day, it’s just<br />

a great venue and that just makes it<br />

easy when you can pretty much rock<br />

up, know that things are going to<br />

get looked after, and know that the<br />

show is going to go well. The staff<br />

are great. We’ve always had a really<br />

good experience at <strong>Bay</strong>park. It’s one<br />

<strong>of</strong> the venues I always look forward<br />

to.”<br />

Armageddon will be hosting its<br />

first high school Esports league event<br />

in Tauranga this year, as well as a<br />

K-pop concert – another first for the<br />

Tauranga event.<br />

“We’re always looking for the<br />

new thing. We’re always looking for<br />

the next thing,” Bill says.<br />

“The main guest for this show is<br />

from Stranger Things, and he’s one<br />

<strong>of</strong> the most current guests we’ve<br />

hosted because he’s right in between<br />

seasons. He’s done a lot <strong>of</strong> different<br />

things. We put a lot <strong>of</strong> resources into<br />

bringing him to Tauranga, because<br />

we wanted to bring one big guest to<br />

the show.”<br />

That is English actor Jamie Campbell<br />

Bower, who is also known for his<br />

parts in Sweeney Todd: The Demon<br />

Barber <strong>of</strong> Fleet Street, The Twilight<br />

Saga, Camelot, The Mortal Instruments:<br />

City <strong>of</strong> Bones, Harry Potter<br />

and the Deathly Hallows – Part 1,<br />

and Fantastic Beasts: The Crimes <strong>of</strong><br />

Grindelwald.<br />

Other special guests at the Tauranga<br />

event will<br />

include cosplay<br />

superstar<br />

Alyson Tabbitha,<br />

Tauranga Armageddon <strong>2023</strong><br />

is on <strong>March</strong> 25th and 26th<br />

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

Arena, 81 Truman Lane,<br />

Mount Maunganui.<br />

animation voice<br />

actor Brian Beacock,<br />

and young New Zealand<br />

actress Amie Donald, mostly<br />

known for her role in Sweet Tooth<br />

and, more recently, for playing an AI<br />

doll in the movie M3GAN.<br />

There will also be the usual eclectic<br />

mix <strong>of</strong> exhibitors – dozens and<br />

dozens <strong>of</strong> stalls covering every corner<br />

imaginable <strong>of</strong> pop culture, fantasy,<br />

anime and animation, gaming, tech,<br />

comics, collectibles, movies and TV.<br />

This is entertainment and fandom<br />

at its finest, plus plenty <strong>of</strong> food vendors<br />

and retailers to keep everyone<br />

well fed.<br />

Tickets start at $10<br />

for children and $15<br />

for adults.<br />

William ‘Bill’ Geradts<br />

“I think that one <strong>of</strong> the strengths<br />

that Armageddon has is that we see a<br />

lot <strong>of</strong> families, young and older, coming<br />

together to the show,” Bill says.<br />

“There is stuff that parents love<br />

and there’s stuff that the kids love.<br />

And it’s not <strong>of</strong>ten that you can both<br />

enjoy different aspects <strong>of</strong> the same<br />

thing. This is a fun family event.”<br />

Tauranga’s<br />

Premier Venue<br />

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

premier venue for conferences,<br />

meetings, entertainment,<br />

and exhibitions. It <strong>of</strong>fers a complete<br />

package in one convenient<br />

location, featuring state <strong>of</strong> the art<br />

meeting rooms, conference and<br />

expo spaces, in-house catering,<br />

audio visual experts, and marketing<br />

and promotional services.<br />

For more information and enquiries about events at Trustpower <strong>Bay</strong>park, please visit www.trustpowerbaypark.co.nz or email events@bayvenues.co.nz


12 BAY OF PLENTY BUSINESS NEWS <strong>March</strong> <strong>2023</strong><br />

Western <strong>Bay</strong> joins taskforce<br />

to get young people in work<br />

Imagine all young people under 25 engaged in<br />

appropriate education, training, work or positive<br />

activities in their communities – that’s the goal <strong>of</strong> a<br />

new programme rolling out in Te Puke and Maketu.<br />

Western <strong>Bay</strong> Mayor, James<br />

Denyer has joined the programme<br />

– Mayor’s Taskforce<br />

for Jobs – adding our rohe to a<br />

nationwide network <strong>of</strong> Mayors, working<br />

together to get all young people<br />

16-25 working, training or contributing<br />

to their communities.<br />

Other councils in the Taskforce<br />

have created initiatives that have seen<br />

over 380 people placed into apprenticeships,<br />

enabled 500 people to gain<br />

their driver licence, and supported 700<br />

education and training opportunities.<br />

According to a recently released<br />

study from the Salvation Army,<br />

the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> has the highest<br />

proportion <strong>of</strong> young people not in<br />

employment, education, or training<br />

in Aotearoa, so this programme has<br />

some work to do (in June 2022, 18.7<br />

per cent – or 6500 – <strong>of</strong> 15- to 24-yearolds<br />

in the region were not in education,<br />

employment or training).<br />

This much needed Western <strong>Bay</strong><br />

version <strong>of</strong> the programme will be<br />

focused on helping youth in Te Puke<br />

and Maketu where support is most<br />

needed (over 400 young people<br />

unemployed, or not in the workforce,<br />

source: 2018 Census).<br />

This complements the existing<br />

youth employment programme ‘Katikati<br />

Poutama – Pathways for Rangatahi’<br />

already in action at the western<br />

end <strong>of</strong> the District.<br />

The new Taskforce team will be<br />

working closely with existing local<br />

providers, and partnering with Colab,<br />

a group <strong>of</strong> social sector organisations<br />

based in Te Puke. The partnership<br />

will ensure that the Taskforce builds<br />

on their existing good work.<br />

To assist Mayor James in making<br />

the Taskforce goal a reality, a new<br />

coordinator Davina Edwards, has<br />

joined the team.<br />

Davina’s role will be focusing<br />

on tailoring the Taskforce’s mission<br />

to our Western <strong>Bay</strong> communities<br />

and connecting communities with<br />

opportunities. She will be helping to<br />

create paths and remove the barriers<br />

between our young people and education,<br />

training, and jobs.<br />

Mayor James says, “Our District is<br />

so full <strong>of</strong> opportunities just waiting to<br />

be seized, but our young people can<br />

be stopped at the first hurdle.<br />

“Often it’s something we take for<br />

granted, like having access to driver<br />

licensing and testing, that blocks<br />

people from working towards their<br />

goals.<br />

“I’ll be working with Davina to<br />

understand what we can do to remove<br />

those hurdles, and be an advocate for<br />

our young community.”<br />

Existing businesses in our local<br />

communities also stand to benefit<br />

from the programme with access to<br />

new recruits, so it’s a positive for the<br />

whole community at a time when a lot<br />

<strong>of</strong> people are doing it tough.<br />

Western <strong>Bay</strong> Mayor James Denyer, meets with the new Mayor’s Taskforce For Jobs<br />

co-ordinator, Davina Edwards. Together they plan to get work with young people in Te Puke<br />

and Maketu to help them find new education, training and employment opportunities.<br />

For Davina, tailoring the solution<br />

to the community and its needs is the<br />

key to success.<br />

“I’m new to the Western <strong>Bay</strong> and<br />

I’ve spent the last few weeks making<br />

my way around the rohe speaking<br />

with our communities and tangata<br />

whenua. Our District is rich with cultural<br />

diversity and that strong social<br />

fabric is something we can tap into to<br />

build successful programmes.”<br />

Chris Johnstone, Colab coordinator<br />

says, they are excited about this<br />

great initiative.<br />

“This is a great opportunity to<br />

work in partnership with Western<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> District Council and<br />

the community, to provide good outcomes,<br />

training and employment for<br />

our young people.”<br />

Council is a supporter <strong>of</strong> Colab<br />

and all the things they do for the Te<br />

Puke community. We look forward to<br />

working with them on this project.<br />

Check out the Mayors Taskforce<br />

for Jobs website www.mtfj.co.nz/ for<br />

more information.<br />

More information about Colab can<br />

be found on their website www.colabcommunity.nz.<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>March</strong> <strong>2023</strong> BAY OF PLENTY BUSINESS NEWS 13<br />

ROTORUA’S QE HEALTH OPENS THE DOORS TO MULTI-<br />

MILLION DOLLAR HEALTH AND WELLNESS FACILITY<br />

Aaron Randell moves the carved stone into the new reception.<br />

QE Health has opened the doors<br />

to its new $19M purpose-built<br />

health and wellness facility<br />

in late February following a karakia<br />

(blessing).<br />

QE Health Chief Executive, Dr<br />

Aaron Randell, says the blessing and<br />

opening <strong>of</strong> the facility, now located at<br />

1084 Hinemaru Street, is a significant<br />

milestone for everyone involved in<br />

the project.<br />

“Plans for the new facility began<br />

way back in 2019, so between Covid<br />

lockdowns and rising building costs,<br />

there have been many challenges<br />

along the way – it was a great feeling<br />

to acknowledge that journey,” says<br />

Aaron.<br />

The former QE Health building on<br />

Whakaue Street was originally built<br />

80 years ago as a convalescent home<br />

for soldiers returning from WWII.<br />

“The building was never intended<br />

to be used for more than 15 years,<br />

but here we are more than 80 years<br />

later, with a new facility, which will<br />

serve the community for generations<br />

to come,“ he says.<br />

While most services have<br />

re-opened at the new facility, the<br />

geothermal pools will not open until<br />

Monday 6 <strong>March</strong>.<br />

As part <strong>of</strong> the karakia, a rock was<br />

moved from QE Health’s former garden<br />

to the new facility’s reception.<br />

The rock originates back to the 1980s<br />

when the former Patient’s Association<br />

funded a Japanese-inspired garden as<br />

a quiet space for patients staying at<br />

QE Health.<br />

QE Health Trustee, Mary Lean,<br />

says local sculptor Trevor Nathan has<br />

now carved a koru and the year ‘<strong>2023</strong>’<br />

into the rock as the completion date <strong>of</strong><br />

the facility.<br />

“The rock symbolises a new<br />

beginning for QE Health and carries<br />

the spirit <strong>of</strong> the original building and<br />

what QE Health embodies into the<br />

new facility,” she says.<br />

QE Health will host a community<br />

open day on Saturday, 11 <strong>March</strong><br />

where members <strong>of</strong> the public can walk<br />

through and experience the facility<br />

themselves. Hosted by NZME, the<br />

event will also feature a free BBQ<br />

and spot prizes. A formal ministerial<br />

opening will take place on Friday, 10<br />

<strong>March</strong>.<br />

The new facility’s layout will provide<br />

visitors with a much-improved<br />

visitor experience with the gym,<br />

QE Health CEO, Dr Aaron Randell and Dr Anaha Hiini who led the blessing.<br />

Pilates studio, Rachel Pools and<br />

clinic rooms all easily accessible to<br />

one another.<br />

“Our new health and wellness<br />

facility enables us to take our unique,<br />

clinically integrated approach to<br />

health and wellness to the next level,”<br />

says Chief Executive, Dr Aaron<br />

Randell.<br />

“One <strong>of</strong> our aims is to provide<br />

additional health and wellness options<br />

for more Kiwis – an aspect which is<br />

becoming increasingly important as<br />

our population increases and ages,”<br />

he says.<br />

QE Health is New Zealand’s only<br />

clinically integrated health and wellness<br />

centre. It provides a complementary<br />

range <strong>of</strong> personalised clinical<br />

health services to help people reach<br />

their wellbeing goals.<br />

The new facility has been funded<br />

through a series <strong>of</strong> predominately<br />

loans and some grants from Kānoa,<br />

the Government’s Regional Economic<br />

Development & Investment<br />

Unit, Rotorua Trust, and Rotorua<br />

Lakes Council.<br />

How to prepare<br />

your business<br />

for sale<br />

For business owners, the thought <strong>of</strong> selling your business may be quite<br />

daunting. However, if you prioritise preparation and engaging with the<br />

experts, the process can be simpler than you think!<br />

Minimising costs<br />

and increasing<br />

annual pr<strong>of</strong>it by<br />

a modest amount<br />

can add to the<br />

potential sale<br />

price.”<br />

There’s no such thing as<br />

preparing for the sale<br />

too early. Preparing your<br />

business for sale is a process<br />

that requires careful planning.<br />

The longer you have to prepare<br />

your business, the better<br />

chance you have at successfully<br />

selling it – not to say that<br />

it can’t be done quickly if need<br />

be.<br />

It is important to determine<br />

an exit plan early on, establishing<br />

a solid understanding <strong>of</strong><br />

the drivers <strong>of</strong> business value<br />

and targeting the level <strong>of</strong> pr<strong>of</strong>its<br />

likely to deliver a successful<br />

sale at the desired value.<br />

A crucial step in preparing<br />

a business for sale is determining<br />

its value. A business<br />

appraisal analyses every aspect<br />

<strong>of</strong> the business, from the market<br />

value <strong>of</strong> its assets to its<br />

future earnings prospects.<br />

An expert’s opinion, who<br />

has relevant comparable business<br />

sales data, on what your<br />

company is worth will help<br />

you determine whether now is<br />

the right time to sell; and how<br />

much you might be able to sell<br />

it for.<br />

It will also give an insight<br />

into how to improve the business<br />

before placing it on the<br />

market.<br />

Timing is everything.<br />

Bringing the business to market<br />

when it can be shown to be<br />

running at peak efficiency, and<br />

with a solid record <strong>of</strong> pr<strong>of</strong>its<br />

trending upwards, is always<br />

going to result in more buyer<br />

interest.<br />

This may require trimming<br />

<strong>of</strong> costs, greater sales, and<br />

increased pr<strong>of</strong>it margins and<br />

reviewing other variables.<br />

Minimising costs and<br />

increasing annual pr<strong>of</strong>it by a<br />

modest amount can add to the<br />

potential sale price. A healthy<br />

and thriving business with<br />

robust financials and a smooth<br />

operation is likely to sell more<br />

easily.<br />

A business is more attractive<br />

if its success isn’t solely<br />

dependent on the owner’s<br />

operational know-how, technical<br />

skill or personal relationships<br />

with clients or suppliers.<br />

Having an experienced,<br />

reliable management team<br />

demonstrates that the business<br />

will remain successful<br />

post-sale.<br />

Clear signs that there are<br />

competent staff tasked with<br />

spreading the workload and<br />

helping drive the business forward<br />

are crucial to giving buyers<br />

confidence that the business<br />

will continue to perform<br />

post sale.<br />

Getting the records in order<br />

is one <strong>of</strong> the most important<br />

steps you can take to prepare<br />

your business for sale. Review<br />

all financial statements from<br />

BUSINESS SALES<br />

> BY STEVE CATLEY<br />

Steve Catley is a <strong>Business</strong> Broker at LINK <strong>Business</strong> Brokers. He can be<br />

contacted at 021 341 117 and steve.catley@linkbusiness.co.nz<br />

the past few years and make<br />

sure they’re accurate and up<br />

to date.<br />

Your accounts should be<br />

organised and include everything<br />

relevant to the business.<br />

It is also key to provide<br />

a set <strong>of</strong> ‘normalised’ accounts<br />

to show maximum operating<br />

pr<strong>of</strong>its, as well as your actual<br />

accounts.<br />

This means adding back<br />

expenses that are not directly<br />

related to operations – and<br />

being prepared to discuss these<br />

with potential buyers. This can<br />

make a big difference to the<br />

selling price.<br />

You may have experience<br />

running a successful business,<br />

but does that mean you are<br />

right person to sell it and to<br />

achieve the best return?<br />

Hiring a team <strong>of</strong> experienced<br />

pr<strong>of</strong>essionals, who can<br />

represent your business appropriately,<br />

have experience in<br />

business sales with access to<br />

relevant comparable data and<br />

an insight <strong>of</strong> the industry will<br />

help you find the best position<br />

for your business.


14 BAY OF PLENTY BUSINESS NEWS <strong>March</strong> <strong>2023</strong><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 />

Appointments signal a strong start to <strong>2023</strong><br />

Despite the challenging weather events so far this year, there is no shortage <strong>of</strong> drive in our local business community. This month we feature<br />

new appointments in accounting, recruitment, insurance, finance and IP law, as well as introducing new talent in local arts and tourism.<br />

Craig Rossouw<br />

Trans-Tasman accounting and advisory<br />

firm William Buck is delighted<br />

to announce the promotion <strong>of</strong> Craig<br />

Rossouw to Associate Director, Audit<br />

& Assurance.<br />

Craig joined William Buck’s Tauranga<br />

Audit and Assurance team in<br />

2020 and has a wide range <strong>of</strong> experience<br />

in audit and accounting, including<br />

in South Africa and the United<br />

States.<br />

Craig previously ran his own<br />

accounting, audit and assurance practice,<br />

prior to moving to New Zealand<br />

from South Africa.<br />

As Associate Director he moves to<br />

a leadership position in the Tauranga<br />

<strong>of</strong>fice working alongside director<br />

Richard Dey.<br />

Lucy Clack<br />

Tradestaff Tauranga is pleased to<br />

announce the appointment <strong>of</strong> Lucy<br />

Clack as team leader. “With over six<br />

years experience as a fitness coach I<br />

have always had a passion for helping<br />

people reach their potential and<br />

achieve their goals,” says Lucy.<br />

“After spending four years travelling,<br />

I am excited to bring my knowledge<br />

and love for connecting with new<br />

people to my current role at Tradestaff.<br />

My goal is to continue building relationships<br />

with past, current and new<br />

clients and supply them with the best<br />

service and candidates in the <strong>Bay</strong>. My<br />

time with Tradestaff so far has been a<br />

fantastic experience and I’m looking<br />

forward to leading the team and growing<br />

our relationships with our valued<br />

clients and candidates.”<br />

Michael Dent<br />

Hallam Jones Insurance and Superannuation<br />

Ltd, welcomes Michael<br />

Dent to Hallam Jones.<br />

Michael has successfully obtained<br />

his New Zealand Certificate in Financial<br />

Services Level 5 in Life, Disability<br />

and Health Insurance. He is currently<br />

working towards his lending<br />

accreditation.<br />

For Michael, this marks a complete<br />

change in direction from running<br />

his own electrical business for<br />

the last 24 years. Michael has always<br />

had the desire to help people, so if<br />

you want an advisor who is willing to<br />

go the extra mile to find you increases<br />

in cover for reasonable prices, or,<br />

savings in fees with comprehensive<br />

cover, Michael is the adviser you<br />

need to talk to.<br />

Sam Oughton<br />

First Mortgage Managers Limited<br />

(FMML), manager <strong>of</strong> First Mortgage<br />

Trust (FMT), New Zealand’s largest<br />

non-bank first mortgage lender has<br />

appointed Sam Oughton as a <strong>Business</strong><br />

Development Manager, based in their<br />

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

Sam Burgess, Head <strong>of</strong> Lending<br />

for First Mortgage Trust says, “We<br />

are delighted to have Sam join our<br />

Christchurch team. First Mortgage<br />

Trust have provided investment and<br />

property finance opportunities to<br />

kiwis for over 25 years, with business<br />

continuing to grow.”<br />

Sam Oughton brings over 10<br />

years’ experience in the finance, property<br />

and real estate sector, as well as<br />

experience as a registered property<br />

valuer.<br />

Tonia Brugh<br />

Renowned IP specialist Tonia has<br />

re-joined James & Wells as Partner<br />

in their Tauranga <strong>of</strong>fice.<br />

Tonia gained significant international<br />

experience working with mega<br />

US media technology companies<br />

such as Apple Corp, Warner Bros.<br />

and Google.<br />

Tonia is passionate about supporting<br />

Pasifika and Māori entrepreneurs<br />

in her work.<br />

She is an advocate <strong>of</strong> te reo Māori<br />

and tikanga and assists a number <strong>of</strong><br />

Māori Boards in a pro-bono capacity,<br />

as well as acting as Co-Chair<br />

on the Pacific Island Community<br />

Tauranga Trust (PICTT) and supporting<br />

her esteemed Trustees at Te<br />

Murumāra Foundation (Te Aka Māori<br />

Dictionary).<br />

New Tauranga Art Gallery Trust and Tourism<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> board trustees appointed<br />

Tauranga City Council is pleased to announce it<br />

has made new appointments to the Tauranga Art<br />

Gallery Trust (TAGT) and Tourism <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

(TBOP) boards.<br />

Passionate contemporary<br />

visual arts leader, Zara Stanhope,<br />

has been appointed to<br />

the TAGT board, and respected<br />

local mana whenua representative,<br />

Charlie Rahiri, has been appointed<br />

to the TBOP board, with approval<br />

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

Council, as a joint TBOP<br />

shareholder.<br />

City Development & Partnerships<br />

General Manager, Gareth<br />

Wallis, says Zara and Charlie bring<br />

with them a wealth <strong>of</strong> expertise<br />

and experience to the council-controlled<br />

organisations (CCOs), and<br />

will help ensure both boards continue<br />

to deliver great community<br />

outcomes, events, and activities for<br />

Tauranga locals and visitors.<br />

“I’d like to acknowledge the<br />

mahi from our current council-controlled<br />

organisation board members<br />

and welcome the new trustees<br />

for Tauranga Art Gallery Trust<br />

and Tourism <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>. We’re<br />

delighted to have such high calibre,<br />

respected, and experienced people<br />

We’re delighted<br />

to have such high<br />

calibre, respected, and<br />

experienced people<br />

joining these boards.”<br />

– Gareth Wallis<br />

joining these boards,” says Gareth.<br />

“It strengthens what is already a<br />

great platform for decision making<br />

and shaping an engaging, inclusive,<br />

and vibrant city full <strong>of</strong> opportunities<br />

for everyone to enjoy.”<br />

Zara Stanhope<br />

Currently Director <strong>of</strong> the Govett-Brewster<br />

Art Gallery | Len<br />

Lye Centre in Ngāmotu, Zara has<br />

served as an aspiring trustee on the<br />

Tauranga Art Gallery Trust board<br />

since 2021 and comes strongly<br />

endorsed by the current board for<br />

her contributions to date.<br />

Zara has an extensive career<br />

history in the local, national, and<br />

international art and academia<br />

realms. She holds a PhD plus tertiary<br />

and postgraduate qualifications<br />

in art history, accounting, and<br />

communications.<br />

Charlie Rahiri<br />

Endorsed by Te Rangapū Mana<br />

Whenua O Tauranga Moana Committee,<br />

Tourism <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> is<br />

pleased to now have mana whenua<br />

representation on their board. This<br />

will improve decision making at<br />

governance level, by enabling<br />

tangata whenua participation and<br />

improving relationships with mana<br />

whenua across Tauranga Moana.<br />

Charlie holds qualifications in<br />

Te Reo Māori, leadership, Māori<br />

mentoring, communications<br />

and health promotion, and has a<br />

wealth <strong>of</strong> governance experience<br />

as a Chair, trustee, and committee<br />

member.<br />

Charlie has a notable career<br />

history in advisory and management<br />

roles, particularly in Māori<br />

development, partnerships, and<br />

education.<br />

The Tauranga Art Gallery Trust<br />

is a council-controlled organisation<br />

<strong>of</strong> Tauranga City Council, and<br />

Tourism <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> is a joint<br />

council-controlled organisation<br />

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

Council.<br />

The new appointments commenced<br />

from Thursday, 1 and<br />

Friday,16 December 2022 respectively,<br />

for a three-year term.<br />

RESIGNATION<br />

Stephen Cleland<br />

The Tauranga Art Gallery Trust<br />

Board announce that Stephen Cleland<br />

has resigned as Director <strong>of</strong><br />

the Tauranga Art Gallery to pursue<br />

other opportunities.<br />

“During his time at the Gallery,<br />

Stephen has led our organisation<br />

through a challenging period,<br />

overseeing a number <strong>of</strong> strategic<br />

changes and realising ambitious<br />

exhibitions and programmes along<br />

the way. This work has placed the<br />

gallery in a strong position for<br />

future success” said TAGT Board<br />

Chair Rosemary Protheroe.<br />

Megan Cleverley, Tauranga Art<br />

Gallery business development and<br />

relationships manager, has been<br />

appointed acting director while the<br />

Board works through the recruitment<br />

process.


<strong>March</strong> <strong>2023</strong> BAY OF PLENTY BUSINESS NEWS 15<br />

<strong>2023</strong>: When will it be over please?<br />

Last October my monthly<br />

column was entitled<br />

‘2022: It just feels<br />

different.’<br />

In that column I remarked<br />

that the world seems to have<br />

changed in many ways over<br />

the period since 2017. I posed<br />

the question: “Is it just me, or<br />

does the world feel different?<br />

Really, weirdly, different?”<br />

I went on to say that for me,<br />

there’s now a permanent sense<br />

<strong>of</strong> impending doom.<br />

Now we’re in <strong>2023</strong> I can’t<br />

help but feel that for most <strong>of</strong><br />

us the heightened anxiety<br />

that was induced in the four<br />

or five years preceding 2022<br />

hasn’t subsided. If anything,<br />

it has multiplied exponentially<br />

already this year – and we’re<br />

only in <strong>March</strong> (scary face<br />

emoji).<br />

Does the world feel different?<br />

Bloody oath it does!<br />

Floods that devastate large<br />

swathes <strong>of</strong> land, displacing<br />

and killing people and leaving<br />

HAVE YOU EVER NOTICED?<br />

> BY ALAN NEBEN<br />

Alan Neben is a Mount Maunganui local and experienced New Zealand<br />

publisher. His columns provide a light-hearted perspective on social<br />

changes effecting New Zealanders.<br />

communities in chaos with the<br />

seemingly impossible task <strong>of</strong><br />

rebuilding lives and infrastructure<br />

are what we see on CNN<br />

in overseas countries – not<br />

what we expect to see here in<br />

New Zealand.<br />

And to be so hot on the<br />

heels <strong>of</strong> the unprecedented<br />

Auckland floods, one has to<br />

ask: “What have we come to?”<br />

The geography and geology<br />

<strong>of</strong> Aotearoa provides a<br />

backdrop for amazing postcard<br />

photos, but, on the downside, a<br />

host <strong>of</strong> challenges for building<br />

roads and bridges and houses.<br />

Most New Zealand towns<br />

and cities are either sited<br />

on a coastline or a riverside<br />

– DANGER.<br />

We’ve been hearing about<br />

the potentially catastrophic<br />

impacts <strong>of</strong> global warming for<br />

years now – the general consensus<br />

is that these impacts<br />

will have devastating effects<br />

in the future. When exactly?<br />

Well, nobody could really say<br />

… but soon.<br />

It seems to me that ‘soon’ is<br />

actually ‘now’.<br />

For how many years have<br />

we slagged-<strong>of</strong>f the weather<br />

forecasters? But have you<br />

noticed that as <strong>of</strong> 12 February<br />

<strong>2023</strong> we have become far<br />

more wary <strong>of</strong> their warnings <strong>of</strong><br />

impending rain and storms? I<br />

certainly have.<br />

Forecasts that before 12<br />

February may have been dismissed<br />

with a fair dollop <strong>of</strong><br />

scepticism, are now feeling<br />

more real and anxiety inducing.<br />

‘She’ll be right’ has been<br />

turfed out as a response,<br />

replaced with, ‘God, don’t let<br />

this one be the one that gets<br />

us!”<br />

When a New Zealand town<br />

was deluged with rain and<br />

flooded on a Saturday, in the<br />

past we have tended to say,<br />

’bad luck’, ‘bit <strong>of</strong> a freakish<br />

downpour that one’, ‘one in<br />

one hundred years’, ‘unprecedented’<br />

… then on Monday<br />

we’ve continued to argue with<br />

the building inspector that,<br />

“the piles don’t need to be that<br />

deep”, and “the engineering<br />

calculations are ‘bloody over<br />

the top’.”<br />

I suspect we won’t be arguing<br />

those points so vigorously<br />

anymore now.<br />

Unfortunately, it seems to<br />

me we <strong>of</strong>ten need the wake-up<br />

call <strong>of</strong> a real disaster to spur us<br />

into action.<br />

If Christchurch hadn’t happened,<br />

would we ever have<br />

embarked on the nation-wide<br />

rebuild we now call ‘earthquake<br />

strengthening’?<br />

If Whakaari White Island<br />

had never happened, I expect<br />

tourist trips to the volcano<br />

would still be running.<br />

If the Mosque shooting<br />

hadn’t occurred, I suggest I’d<br />

still be allowed to keep a stash<br />

<strong>of</strong> automatic ‘hunting’ rifles at<br />

home.<br />

Out <strong>of</strong> each these disasters<br />

have come change for the<br />

better: better buildings, safer<br />

tourism and a lesser chance <strong>of</strong><br />

local mass killings <strong>of</strong> innocent<br />

people.<br />

The recent floods have<br />

bought out the best in people<br />

– communities have banded<br />

together to help those in need,<br />

people have given freely to<br />

those impacted, Canterbury<br />

people have been nice to<br />

Auckland people, and, perhaps<br />

most hearteningly for me, I<br />

hear an entire nation feeling<br />

for its effected people.<br />

Even the opposition political<br />

parties have largely steered<br />

clear <strong>of</strong> political sniping in<br />

relation to the Government’s<br />

disaster response (so far).<br />

Let’s build on this national<br />

spirit <strong>of</strong> caring and empathy<br />

and unite to find effective<br />

solutions to the climate change<br />

challenges our country now<br />

faces.<br />

There will be change, there<br />

must be change, to how we<br />

build and where we build and<br />

the roads we use to travel to<br />

where we build. It won’t be<br />

done without some pain and<br />

some heartache, and it certainly<br />

won’t be done overnight,<br />

but let’s start now.<br />

Looking to the devastation<br />

from the recent earthquakes in<br />

Turkey and Syria, one <strong>of</strong> the<br />

major causes <strong>of</strong> the massive<br />

loss <strong>of</strong> lives is linked to the<br />

huge number <strong>of</strong> non-compliant<br />

buildings in those countries<br />

– estimates suggest 7.5<br />

million buildings in Turkey<br />

alone are illegally constructed<br />

(non-compliant).<br />

Steel is expensive, so leaving<br />

it out <strong>of</strong> the construction<br />

process can be quite cost-effective<br />

in the short-term.<br />

Here in New Zealand we are<br />

starting from a comparatively<br />

strong position then when considering<br />

how we change our<br />

planning procedures to better<br />

mitigate the effects <strong>of</strong> weather<br />

events in the future.<br />

We generally have effective<br />

codes for building and<br />

infrastructure, good compliance<br />

and little corruption. If<br />

the codes need changing and<br />

the compliance needs to be<br />

administered differently, I like<br />

our chances <strong>of</strong> achieving those<br />

changes more than the chances<br />

<strong>of</strong> Recep Tayyip Erdoğan convincing<br />

Turkish builders not to<br />

cut corners by leaving out the<br />

steel.<br />

As the Russia Ukraine war<br />

threatens to boil over into<br />

a world war, the death toll<br />

continues to rise in Turkey<br />

and Syria, and the destruction<br />

<strong>of</strong> the flood events her in<br />

Aotearoa New Zealand continues<br />

to overwhelm us, my concerns<br />

about a lack <strong>of</strong> decent<br />

restaurant service due to<br />

Covid-19-induced staff shortages<br />

seem fairly inconsequential<br />

– from now on no more<br />

restaurant complaints from me<br />

in <strong>2023</strong>!<br />

More warning needed for<br />

minimum wage increase<br />

1 April <strong>2023</strong> will see<br />

the adult minimum<br />

wage increase to<br />

$22.70 per hour<br />

from the current<br />

hourly rate <strong>of</strong><br />

$21.20 – a 7.1%<br />

increase. With<br />

this, the training<br />

and starting-out<br />

minimum wages<br />

will also both<br />

increase to $18.16<br />

per hour – a rise<br />

from the current<br />

minimum rate <strong>of</strong><br />

$16.96 per hour.<br />

Whilst many believe<br />

that it is quite a significant<br />

jump, others<br />

consider it fair as it keeps in<br />

line with inflation.<br />

Economic and political<br />

commentator Bernard Hickey<br />

believes that previous minimum<br />

wage hikes over the last<br />

five years have been “double<br />

inflation”, whereas this year<br />

will be more in line with the<br />

rate <strong>of</strong> inflation, adding that:<br />

“In real terms, this is actually<br />

a slow-down in the minimum<br />

wage increase.”<br />

Overall, minimum wages<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 />

have steadily increased from<br />

$16.50 in 2018 to $22.70 in<br />

<strong>2023</strong> and while this must be<br />

a relief for minimum-wage<br />

workers, some might argue<br />

that this rise, combined with<br />

the recent floods, as well as<br />

the aftermath <strong>of</strong> Covid-19,<br />

might place significant strain<br />

on some small business owners<br />

who are hanging onto their<br />

companies and livelihoods for<br />

dear life.<br />

Further to the above, a survey<br />

conducted by Retail NZ,<br />

recently revealed that 57% <strong>of</strong><br />

retailers will reduce the work<br />

hours available to their teams<br />

while 41% plan to reduce staff<br />

numbers. Others are planning<br />

on increasing retail prices,<br />

reducing store hours, with a<br />

small percentage even considering<br />

shutting down their businesses<br />

entirely.<br />

According to this survey,<br />

the wage hike will impact<br />

employees “at every level, not<br />

just those on the minimum.”<br />

As one retailer said, “Most<br />

<strong>of</strong> my staff are paid above the<br />

new minimum wage, but they<br />

too, will expect an increase<br />

to maintain the differential.<br />

That’s where the expense<br />

comes in. I don’t think the<br />

government understands the<br />

expectations <strong>of</strong> employees<br />

already above the minimum<br />

wage.”<br />

These views suggest<br />

this increase might place<br />

unplanned strain on certain<br />

businesses, and quite possibly<br />

the mental wellbeing <strong>of</strong> these<br />

business owners.<br />

This wage increase might<br />

mean massive relief to struggling<br />

families. Whilst it might<br />

be inevitable and in line with<br />

inflation, taking into consideration<br />

the financial year-end<br />

and the fact that April is right<br />

around the corner, more warning<br />

time could have given<br />

small businesses the opportunity<br />

to better prepare for this<br />

“hairy” jump in wages, as it<br />

has been referred to on a few<br />

occasions.<br />

* Sources: 1news.co.nz, Human<br />

Resources Director NZ


16 BAY OF PLENTY BUSINESS NEWS <strong>March</strong> <strong>2023</strong><br />

See what 2degrees<br />

business can bring<br />

to the table<br />

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