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May 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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MAY <strong>2023</strong> VOLUME 7: ISSUE 5<br />

WWW.BOPBUSINESSNEWS.CO.NZ<br />

FACEBOOK.COM/BAYOFPLENTYBUSINESSNEWS<br />

AUSTRALIA<br />

CHANGES<br />

COULD<br />

STRESS<br />

KIWI JOB<br />

MARKET<br />

With demand for labour already under<br />

extreme pressure here in the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong>, David Porter asks local business<br />

experts about the impact <strong>of</strong> changes<br />

to Australia’s policy on pathways to<br />

citizenship. Their predictions: the<br />

outcomes may not all be rosy. See page 3<br />

PAGE 4<br />

China tests its<br />

international reach<br />

PAGE 5<br />

Best <strong>of</strong> Mercury and Trustpower to<br />

come together under Mercury brand<br />

PAGE 10<br />

Does your bach have<br />

a hidden GST cost?<br />

Talent ID are strong advocates <strong>of</strong> the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> region and all that is on <strong>of</strong>fer.<br />

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FOR KIWI BUSINESS


COVER STORY<br />

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

oz chAnges could stress kiwI job market<br />

By DAVID PORTER<br />

Australia’s belated change <strong>of</strong><br />

policy in freeing up a path<br />

to Australian citizenship<br />

for Kiwis is likely to have a major<br />

impact on New Zealand’s tight labour<br />

situation.<br />

The previous policy has always<br />

been a source <strong>of</strong> political disaffection<br />

between the two neighbours. The<br />

changes in effect restore the situation<br />

to that in 2001 when Australia introduced<br />

the old policy.<br />

Tauranga’s Priority One chief<br />

executive Nigel Tutt told the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> <strong>Business</strong> <strong>News</strong> that Australia<br />

had recently generally been seen to be<br />

more active in attracting immigration.<br />

“But I do think this will heighten<br />

employer concerns amidst NZ<br />

companies.”<br />

Prime Minister Chris Hipkins said<br />

in a statement: “This is the biggest<br />

improvement in the rights <strong>of</strong> New<br />

Zealanders living in Australia in a<br />

generation and restores most <strong>of</strong> the<br />

rights Kiwis had in Australia before<br />

they were revoked in 2001.”<br />

From July, New Zealand citizens<br />

who have lived in Australia for<br />

four years on the current temporary,<br />

special category visa provided to<br />

all New Zealanders will be able to<br />

directly apply for citizenship, without<br />

first having to become a permanent<br />

resident.<br />

Tight Kiwi job market<br />

Kellie Hamlett<br />

It has been clear from media coverage<br />

and government comments over<br />

the past year or so that New Zealand<br />

employers have been dealing with a<br />

very tight job market. As the economy<br />

has slowed, this tight labour<br />

market shows signs <strong>of</strong> easing, but it<br />

still isn’t easy.<br />

<strong>Business</strong> <strong>News</strong>’ human resources<br />

columnist Kellie Hamlett, director<br />

<strong>of</strong> the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>’s Talent ID<br />

recruitment firm, noted: “Even with<br />

an increase in migrant arrivals here,<br />

we are still painfully short <strong>of</strong> workers<br />

across all sectors, and this change will<br />

surely put even more pressures on our<br />

employers over time.”<br />

According to Hamlett’s research<br />

into recent migration trends, even<br />

pre-Covid there was a provisional<br />

net migration loss <strong>of</strong> 8,100 people to<br />

Australia in the year ended June 2022.<br />

The loss in that year was made up <strong>of</strong><br />

net losses <strong>of</strong> 6,500 New Zealand citizens<br />

and 1,600 non-New Zealand<br />

citizens.<br />

And traditionally, there has been a<br />

net migration loss from New Zealand<br />

to Australia. This averaged nearly<br />

30,000 a year during 2004–2013,<br />

and about 3,000 a year during 2014–<br />

2019. However, it is unknown how<br />

many <strong>of</strong> these were NZ citizens.<br />

Matt Cowley<br />

“I think the reality is that in the<br />

past we have lost a lot <strong>of</strong> NZ citizens<br />

to Australia,” said Hamlett. “At present<br />

we have had 16 months <strong>of</strong> consecutive<br />

net migration losses <strong>of</strong> people to<br />

Australia.”<br />

Australia a favoured target<br />

Australia, being larger and generally<br />

more active economically, has always<br />

been a favoured target for New Zealanders<br />

seeking to start their OE.<br />

“Australia has always <strong>of</strong>fered<br />

higher wages, and an overall more<br />

attractive ‘package’ with more affordable<br />

housing and an arguably better<br />

lifestyle, so to some, it has been<br />

and is an attractive option,” said<br />

Hamlett.<br />

Matt Cowley, chief executive <strong>of</strong><br />

the Tauranga <strong>Business</strong> Chamber, said<br />

migration had been an issue in New<br />

Zealand for a long time and we were<br />

now seeing it become an issue again<br />

in the New Zealand media spotlight.<br />

“Now that Covid has moved on a<br />

bit people are beginning to feel more<br />

free to move and have more choices,”<br />

he said. “There are some sectors [in<br />

NZ] that may be more exposed to the<br />

development,” he said.<br />

Anecdotally, Cowley referenced<br />

as an example the problems faced by<br />

fruit pack houses in recent times and<br />

their concerns about Covid’s impact<br />

on employment over the past few<br />

years.<br />

“Anecdotally the immigration<br />

shift may [also] be <strong>of</strong> concern re<br />

developing our new business leaders,”<br />

he said.<br />

Cowley said he had also heard<br />

concerns expressed by bulk housing<br />

producers that the market could see a<br />

cooling-<strong>of</strong>f in the construction sector.<br />

Generally speaking, he suggested<br />

migration was more likely to affect<br />

blue collar workers in the <strong>Bay</strong>, especially<br />

in the construction sector.<br />

“It’s too soon to say whether we’re<br />

going to see a mass exodus.”<br />

The new citizenship laws were not<br />

necessarily going to be disastrous, he<br />

added.<br />

Kellie Hamlett said that even with<br />

the steep increase in wages experienced<br />

in New Zealand over the past<br />

two years, New Zealand still struggled<br />

to compete with the wages on<br />

<strong>of</strong>fer in Australia.<br />

“Whilst the recently announced<br />

path to citizenship might not be the<br />

reason people leave New Zealand, it<br />

certainly is another tick in Australia’s<br />

favour,” she said.<br />

“Even with an increase in migrant<br />

arrivals here we are still painfully<br />

short <strong>of</strong> workers across all sectors,<br />

and this change will surely put even<br />

more pressures on our employers over<br />

time.”<br />

WHAT THE CHANGES OFFER<br />

Under the changes:<br />

• Rights come into effect on July 1, <strong>2023</strong>.<br />

• Applies to Kiwis on temporary, special category, visas who have<br />

lived in Australia for four years, and meet the standard Australian<br />

citizenship criteria (e.g. pass a character check, adequate knowledge<br />

<strong>of</strong> Australia, a basic English competency, will continue to reside<br />

in or have a connection with Australia) and attend a citizenship<br />

ceremony.<br />

• Is retrospective. Those in Australia since 2001 will be able to apply<br />

directly for citizenship without gaining permanent residence first.<br />

• Is affordable (the fee is A$490).<br />

• Has no minimum income requirement or health requirement.<br />

• Gives Kiwis access to services and benefits, once they become<br />

citizens.<br />

• Allows Kiwi children born in Australia to become citizens at birth<br />

(rather than waiting till they turn 10, as they do now).<br />

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4 BAY OF PLENTY BUSINESS NEWS <strong>May</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 />

between Waihi and Opotiki including Rotorua and<br />

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

www.bopbusinessnews.co.nz<br />

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

309/424 Maunganui Rd, Mt Maunganui, 3116<br />

<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 />

China tests its<br />

international reach<br />

French President Emmanuel<br />

Macron’s recent<br />

sojourn in China excited<br />

some <strong>of</strong> the journalists covering<br />

his visit. They reported<br />

that he was given a “rock star<br />

welcome” by students at the<br />

elite Sun Yat-Sen University in<br />

Guangzhou.<br />

The coverage reminded me<br />

<strong>of</strong> my own first visit as a green<br />

foreign correspondent to China<br />

many years ago. I accompanied<br />

a group <strong>of</strong> 60 young New Zealanders<br />

who were responding<br />

to an invitation to visit from<br />

then Communist Party General<br />

Secretary Hu Yaobang.<br />

As we descended from the<br />

plane on our arrival, we were<br />

greeted by a vast crowd <strong>of</strong> Chinese<br />

citizens, banging gongs,<br />

waving banners and exhibiting<br />

great enthusiasm at our visit.<br />

We were all delighted to<br />

receive such a warm welcome.<br />

However, on later mentioning<br />

this incident to a Beijing-based<br />

Kiwi diplomat, he looked at<br />

me with some pity for my<br />

naivety and remarked drily,<br />

“Of course, they never have<br />

any problem assembling a<br />

crowd in China.”<br />

As Macron discovered.<br />

The French president<br />

reportedly also hailed China’s<br />

“critical thinking”, which<br />

seemed an inappropriate<br />

description <strong>of</strong> a country noted<br />

for its tight media and political<br />

controls.<br />

Observing Macron’s peregrinations<br />

in China, one could<br />

only note that he had chosen<br />

a very good time to be out <strong>of</strong><br />

France. His home country was<br />

roiled by massive demonstrations<br />

in burning streets amidst<br />

some <strong>of</strong> the most extreme and<br />

chaotic labour actions ever<br />

seen there over his pension<br />

change proposal.<br />

Fortunately for Macron, the<br />

relevant French institutional<br />

committee gave the go-ahead<br />

to his pension proposals and on<br />

his return he dutifully passed<br />

them into law. His detractors<br />

already deeply resented the<br />

fact that he had pushed through<br />

his original pension changes<br />

without parliamentary discussion<br />

or approval. This latest<br />

move seems unlikely to be the<br />

end <strong>of</strong> French union unrest.<br />

Ironically, the namesake <strong>of</strong><br />

the university that was credited<br />

with his rock star reception,<br />

Sun Yat-Sen, is unique among<br />

20th-century Chinese leaders<br />

for being widely revered by<br />

both the Communist Party in<br />

mainland China, and in Taiwan.<br />

The breakaway state<br />

continues to be threatened by<br />

China with imminent takeover,<br />

despite Taiwan’s evident resistance<br />

since its inception as an<br />

independent state to mainland<br />

control.<br />

Macron managed to attract<br />

comment and in many cases<br />

derision – even within the<br />

European Community – for his<br />

call that France should follow<br />

its own path and not blindly<br />

support the US – especially<br />

with regard to the status <strong>of</strong><br />

Taiwan.<br />

It would seem the French<br />

President sees himself as an<br />

international peace negotiator.<br />

Unfortunately, his telephone<br />

diplomacy to try and dissuade<br />

Russian Federation President<br />

Vladimir Putin not to invade<br />

the Ukraine was a dismal<br />

failure.<br />

Macron has subsequently<br />

purported to be trying to woo<br />

China into helping broker a<br />

peace plan with the Soviets<br />

over the Ukraine. He seems<br />

oblivious to the fact that the<br />

last thing China intends to do<br />

is dissuade Russia’s leadership<br />

from its actions.<br />

Chinese President Xi Jingping’s<br />

recent reaffirmation <strong>of</strong><br />

the warm China/Soviet “partnership”<br />

following his visit to<br />

Russia made it clear that China<br />

would not be attempting to<br />

s<strong>of</strong>ten Russian policy.<br />

After all, Putin’s doomed<br />

war policy is China’s best<br />

David Porter<br />

chance <strong>of</strong> staking a claim to<br />

independent influence in the<br />

global order and resisting<br />

international US pressure.<br />

It is one <strong>of</strong> the ironies <strong>of</strong><br />

China, as I have observed<br />

before in this column, that the<br />

mainland’s greatest strength –<br />

its vast population <strong>of</strong> almost<br />

1.5 billion people – is also its<br />

weakness. No senior leader<br />

ascends to the top <strong>of</strong> China’s<br />

political tree without understanding<br />

the country’s history<br />

and the vulnerabilities that<br />

come with the job.<br />

As became evident in recent<br />

months when the lengthy<br />

Xi-driven lockdown <strong>of</strong> entire<br />

communities to try and control<br />

the spread <strong>of</strong> Covid-19 eventually<br />

triggered mass protests by<br />

the Chinese populace.<br />

Even the government’s vigorous<br />

suppression <strong>of</strong> public<br />

opinion couldn’t manage to<br />

completely curb this, and ultimately<br />

Xi had to back down<br />

and ease the strict Covid-19<br />

control policy. All Chinese<br />

leaders understand that unsuccessful<br />

regimes risk being<br />

overthrown.<br />

Making Quality IT, Simple


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

Some <strong>of</strong> Mercury’s Tauranga team<br />

Best <strong>of</strong> Mercury and Trustpower to<br />

come together under Mercury brand<br />

This winter the Trustpower<br />

brand will transition to<br />

Mercury, bringing the<br />

best <strong>of</strong> both brands together for<br />

customers, while continuing<br />

to be a supporter <strong>of</strong> the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> community and major<br />

employer in the region.<br />

This follows Mercury’s<br />

acquisition <strong>of</strong> Trustpower’s<br />

retail business in <strong>May</strong> 2022.<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>-based Mercury<br />

general manager customer<br />

operations, Fiona Smith,<br />

says she’s incredibly excited<br />

about the opportunities bringing<br />

together the two brands<br />

presents.<br />

“I worked for Trustpower<br />

for nearly 27 years and was<br />

very happy to join with Mercury<br />

in 2022. I’m incredibly<br />

proud <strong>of</strong> what we achieved as<br />

Trustpower, from our success<br />

in bundling after becoming the<br />

first retailer to bundle fibre and<br />

electricity together, to our support<br />

for local communities,”<br />

she says.<br />

“Now, as we transition the<br />

Trustpower brand to Mercury,<br />

we will keep the best <strong>of</strong> Trustpower,<br />

plus additional benefits<br />

will be on <strong>of</strong>fer soon - the<br />

future is bright indeed.”<br />

Mercury will continue the<br />

good work Trustpower started,<br />

investing in and being an active<br />

Fiona Smith<br />

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

communities through sponsorships<br />

and partnerships.<br />

“We also remain a major<br />

employer in the region so the<br />

folk you chatted to last week<br />

are the same ones who will<br />

continue to look after you,”<br />

Fiona says.<br />

“Locals will simply see<br />

an influx <strong>of</strong> Mercury yellow!<br />

The Trustpower Community<br />

Fund will become the Mercury<br />

Community Fund, Trustpower<br />

<strong>Bay</strong>park will be rebranded to<br />

Mercury <strong>Bay</strong>park, our <strong>of</strong>fice<br />

on Durham Street will likewise<br />

be rebranded to Mercury and<br />

other local signage and logos<br />

will be updated to the Mercury<br />

brand. There’re many benefits<br />

<strong>of</strong> bringing the brands together<br />

under Mercury,” Fiona says.<br />

“Coming together under the<br />

Mercury brand will build better<br />

experiences for our customers.<br />

This includes adding material<br />

value for our customers<br />

in terms <strong>of</strong> convenience and<br />

the delivery <strong>of</strong> innovative and<br />

exciting products.”<br />

Trustpower is currently<br />

contacting its customers about<br />

the transition to the Mercury<br />

brand.<br />

What stays the same:<br />

• Trustpower customers’<br />

plans, services and benefits<br />

will continue under the Mercury<br />

brand.<br />

• TECT beneficiaries in<br />

Tauranga will continue to<br />

receive this rebate under<br />

Mercury.<br />

• 100% NZ-based customer<br />

service.<br />

• Support for local community<br />

and employment in the<br />

region.<br />

What changes:<br />

• Trustpower branding will<br />

change to Mercury nationwide.<br />

This includes Trustpower<br />

<strong>Bay</strong>park which will<br />

become Mercury <strong>Bay</strong>park<br />

and the Trustpower <strong>of</strong>fice<br />

on Durham St which will be<br />

rebranded to Mercury.<br />

PRIVACY RIGHTS IN THE DIGITAL AGE<br />

It is important that businesses<br />

understand their responsibilities<br />

regarding any personal<br />

information they hold.<br />

According to the Privacy Act<br />

2020, personal information is<br />

defined as any recorded information<br />

about an identifiable<br />

individual.<br />

If you have records that<br />

contain information such as<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 />

name, date <strong>of</strong> birth, email<br />

address, bank account details,<br />

financial information, employment<br />

history and medical<br />

records, you have a responsibility<br />

to protect that information<br />

from unauthorised access<br />

and transmission.<br />

This includes ensuring<br />

that staff are aware <strong>of</strong> their<br />

obligations under the Privacy<br />

Act 2020 and that they are<br />

trained in how to handle personal<br />

information safely and<br />

securely.<br />

The Privacy Commissioner’s<br />

website at www.privacy.<br />

org.nz provides guidance on<br />

how to handle personal information<br />

and what steps businesses<br />

should take to protect it.<br />

The website also has a range<br />

<strong>of</strong> resources available for businesses,<br />

including guidelines on<br />

how to handle personal information,<br />

privacy statements for<br />

websites, and a privacy breach<br />

notification form.<br />

The Privacy Act 2020 sets<br />

out the requirements for notifying<br />

affected individuals and<br />

the Privacy Commissioner <strong>of</strong> a<br />

notifiable privacy breach.<br />

The requirements include<br />

notifying the Commissioner<br />

as soon as practicable after<br />

becoming aware <strong>of</strong> the breach<br />

and notifying affected individuals<br />

as soon as practicable after<br />

notifying the Commissioner.<br />

There are several new consequences<br />

for breaching New<br />

Zealand’s privacy laws under<br />

the Privacy Act 2020. This<br />

includes both criminal liability<br />

for the company (and directors<br />

if applicable), with fines up to<br />

$10,000.<br />

If you breach one or more<br />

privacy principles (or equivalent<br />

rules under a code <strong>of</strong> practice),<br />

then any individual who<br />

has been affected can make a<br />

complaint to the Privacy Commissioner<br />

to investigate.<br />

Visit elearning.privacy.org.<br />

nz for excellent free online<br />

learning resources that are<br />

short, snappy and practical<br />

– and you get a certificate on<br />

completion!<br />

Our staff are encouraged to<br />

complete these courses so we<br />

all can understand our responsibilities<br />

regarding the data we<br />

hold and have access to. I recommend<br />

they be part <strong>of</strong> every<br />

induction programme.<br />

We provide the digital<br />

tools, applications and services<br />

to protect your computer systems,<br />

networks and digital data<br />

but the weakest link is always<br />

the human one. Increasingly<br />

the bad actors are targeting and<br />

probing individuals to gain<br />

access. Education is important.<br />

<strong>May</strong> 8 – 14 is Privacy Week<br />

<strong>2023</strong> and there are events<br />

planned to provide further education<br />

on privacy rights in the<br />

digital age.<br />

Check out the Privacy<br />

Commissioner’s website and<br />

ensure you, your staff and your<br />

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responsibilities – and your<br />

rights.<br />

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

2021-12-28 5:31 PM


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

Maintaining confidentiality<br />

during sale <strong>of</strong> a business<br />

<strong>Business</strong> owners typically do not want the fact they are selling or contemplating selling their business to<br />

be public knowledge. Awareness that the business may be sold may lead to staff looking for other job<br />

opportunities, suppliers renegotiating contracts, or customers looking elsewhere for your services.<br />

Construction<br />

on new<br />

Ōmokoroa<br />

schools to<br />

begin in 2024<br />

The future layout <strong>of</strong><br />

Ōmokoroa continues to firm<br />

up with a 2024 construction<br />

start date for two new schools<br />

confirmed.<br />

Education Minister Jan Tinetti has<br />

announced works on a new primary<br />

school and secondary school are<br />

expected to kick <strong>of</strong>f early 2024, with doors<br />

to be open for tamariki and rangatahi in<br />

2025.<br />

Ōmokoroa Primary School will initially<br />

provide 350 places for Year 1–6 students,<br />

with capacity to expand the roll to 550<br />

students.<br />

While Ōmokoroa Secondary School<br />

will initially provide 800 places for Year<br />

7–13 students, with capacity to expand the<br />

roll to 1200 students.<br />

Western <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>May</strong>or James<br />

Denyer says the two schools, to be located<br />

on the corner <strong>of</strong> Prole Road and Ōmokoroa<br />

Road, are an integral part <strong>of</strong> the future <strong>of</strong><br />

Ōmokoroa and its predicted population.<br />

By 2050, the Ōmokoroa Peninsula will<br />

be fully developed and home to an estimated<br />

13,000 residents. This will include<br />

the development <strong>of</strong> 2500 new homes in the<br />

surrounding schooling area.<br />

“Fit for purpose facilities such as these<br />

schools go hand in hand with supporting<br />

the Ōmokoroa community and accommodating<br />

its growth now and into the future,”<br />

says <strong>May</strong>or James.<br />

“This announcement will provide the<br />

growing number <strong>of</strong> young families living<br />

in Ōmokoroa with school-age children<br />

the reassurance that they will soon have<br />

schooling options much closer to home.<br />

“It will also take some pressure <strong>of</strong>f our<br />

roads and State Highway with many families<br />

currently needing to take their tamariki<br />

and rangatahi to schools outside the area.”<br />

The 2024 start date closely follows<br />

Council getting underway on a $23.5 million<br />

roading upgrade <strong>of</strong> Prole Road.<br />

The $23.5m project is central to unlocking<br />

the development <strong>of</strong> the two schools and<br />

2500 homes planned, transforming Prole<br />

Road from a rural road to one fit for a future<br />

as a busy urban environment.<br />

It includes the reconstruction <strong>of</strong> 1.7km<br />

<strong>of</strong> road, from Ōmokoroa Road to Waipapa<br />

River, new shared walking/cycling paths on<br />

both sides <strong>of</strong> the road, on-road cycle lanes<br />

for experienced cyclists, safe pedestrian<br />

crossings, and a dual-lane roundabout at the<br />

intersection <strong>of</strong> Prole and Ōmokoroa roads.<br />

The future schools are part <strong>of</strong> wider<br />

changes that will see Ōmokoroa look a little<br />

different in the next decade.<br />

This will include JACE Investments<br />

Ltd’s $75 million privately-funded new<br />

town centre, new residential areas for<br />

around 2300 homes, more industrial zones<br />

for local businesses and employment, a new<br />

large reserve for active sports across the<br />

road from the new schools, and a Natural<br />

Open Space Zone to protect the extensive<br />

gully network and retain it for stormwater<br />

management and walkways and cycleways.<br />

By using a business broker,<br />

all <strong>of</strong> this can be managed<br />

pr<strong>of</strong>essionally. <strong>Business</strong><br />

brokers typically have tried and<br />

tested confidentiality policies and<br />

procedures.<br />

When writing the advertisement<br />

announcing the business is for sale,<br />

brokers take care to hide details<br />

that would identify the business.<br />

Brokers know which words to use<br />

and know how to make your business<br />

an attractive choice while not<br />

revealing anything too crucial.<br />

It’s about finding the right<br />

balance between, not disclosing<br />

too much information while still<br />

attracting the right buyer.<br />

An advert outlines key points<br />

about the business such as industry,<br />

key features, and benefits but just<br />

enough for an enquirer to want to<br />

know more.<br />

Commercially sensitive information<br />

and identifying details are<br />

typically withheld until the buyer<br />

has signed a legally binding Confidentiality<br />

Agreement.<br />

This is important for any size<br />

or type <strong>of</strong> business, but becomes<br />

even more so for larger businesses,<br />

where sales figures and other data<br />

Tupperware finds itself in this<br />

predicament seemingly as<br />

a result <strong>of</strong> a failure to innovate,<br />

both in product design and<br />

distribution methods, and despite<br />

attempts to freshen up its products<br />

in recent years and reposition itself<br />

to a younger audience. 3<br />

As one expert reportedly 4 commented,<br />

Tupperware – while considered<br />

innovative many years<br />

ago – was perhaps not as inventive<br />

and stylish as other (kitchenware)<br />

brands such as Joseph Joseph. 5<br />

Add to its innovation woes the<br />

arguable fact that the ‘Tupperware’<br />

brand name has become a common<br />

name in general public use (in trade<br />

mark speak, ‘generic’) for food<br />

storage containers, and Tupperware<br />

(the company) faces a task <strong>of</strong><br />

Herculean proportions to survive,<br />

let alone once again prosper.<br />

Tupperware’s problems highlight<br />

the need for all businesses to<br />

‘stay relevant’: that is, continually<br />

innovate in product and/or service<br />

design and delivery to meet the<br />

needs and wants <strong>of</strong> customers. As<br />

Peter Drucker 6 once declared, businesses<br />

must “innovate or die”.<br />

In more common parlance,<br />

“stay ahead <strong>of</strong> the pace <strong>of</strong> change<br />

or you’re toast”. 7<br />

In saying this, it is important to<br />

note that innovation doesn’t have<br />

to come with a huge price tag:<br />

innovation can be small and cheap<br />

– it might be a small change in how<br />

you do something, or a slight shift<br />

in how you communicate what you<br />

do.<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 business broker<br />

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

the confidentiality<br />

process and give<br />

first-hand guidance<br />

on when information<br />

should be shared.”<br />

are commercially sensitive.<br />

Once this document is signed,<br />

and before disclosing any additional<br />

information, a business broker<br />

typically asks specific qualifying<br />

questions which can help sort<br />

the serious buyers from those that<br />

are just curious or can’t afford to<br />

buy.<br />

Notably, at this stage there is no<br />

direct contact between the buyer<br />

and the business, avoiding disclosure<br />

<strong>of</strong> identifying details. Confidentiality<br />

is maintained until each<br />

potential buyer has been qualified<br />

as genuine,<br />

Release <strong>of</strong> information about<br />

the business is typically released<br />

in stages based on a tested process.<br />

Once the business broker has qualified<br />

a potential buyer, a summary<br />

document will be provided giving<br />

key facts about the business but<br />

withholding information such as<br />

Big or small, opportunities for<br />

innovation are everywhere – you<br />

just have to be open to them.<br />

Tupperware’s problems also<br />

highlight the need for brand owners<br />

staff details, customer names and<br />

full financial reports.<br />

As the buyer continues to be<br />

interested or is ready to make an<br />

<strong>of</strong>fer, more information can be<br />

released. It’s possible to continue<br />

to maintain secrecy right through<br />

due diligence, depending on the<br />

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

The business broker can take<br />

control <strong>of</strong> the confidentiality process<br />

and give first-hand guidance<br />

on when information should be<br />

shared.<br />

It is important to engage with<br />

a broker who understands when<br />

to release information to potential<br />

buyers, and who can help you balance<br />

the conflicting needs <strong>of</strong> marketing<br />

and confidentiality.<br />

TUPPERWARE ® – A TALE<br />

OF TWO (IP) ISSUES<br />

In early April, news broke 1 that Tupperware ® , the well known US-based food storage brand, is in serious<br />

trouble. With rising debts and falling sales, Tupperware warned that it could go bust unless it can quickly<br />

raise new financing. 2<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 />

to protect their brand name from<br />

becoming ‘generic’ – as ‘Escalator’<br />

and ‘Aspirin’, for example, did and<br />

‘Sellotape’ and ‘Jandals’ arguably<br />

have (at least in New Zealand).<br />

Stopping a trade mark from<br />

becoming generic in New Zealand<br />

requires a fine balance <strong>of</strong> promotion<br />

and policing (as Tasman Insulation,<br />

the maker <strong>of</strong> ‘Pink Batts’<br />

insulation, found out in the course<br />

<strong>of</strong> litigation between 2012 and<br />

2015 8 ).<br />

Promote the name too much in<br />

a manner which makes consumers<br />

perceive it as noun, or fail to stop<br />

people from using the name as a<br />

noun, and brand owners could find<br />

themselves in Tupperware’s shoes<br />

or, worse, facing a claim to de-register<br />

their trade mark.<br />

It will be a huge pity if the lid<br />

on Tupperware’s future is firmly<br />

sealed shut in the next few months.<br />

I, for one, hope the brand can be<br />

saved – all it needs (apart from a<br />

shed load <strong>of</strong> money) is the right<br />

kind <strong>of</strong> love.<br />

1. https://www.bbc.com/news/business-65237293 “Tupperware warns <strong>of</strong> collapse unless it finds funds”. 2. https://www.bbc.com/news/business-65243711 “Tupperware: Why the household name<br />

could soon be history”. 3. As fn 2 above. 4. Neil Saunders, managing director <strong>of</strong> retail at the consultancy GlobalData, see fn 2 above. 5. https://www.josephjoseph.com/. 6. Peter Drucker was<br />

an influential Austrian-American author, mentor and consultant who is considered the father <strong>of</strong> modern business management: https://www.businessnewsdaily.com/10634-peter-drucker-management-theory.html.<br />

7. https://hbr.org/2014/12/innovation-on-the-fly#. 8. See Tasman Insulation New Zealand Limited v Knauf Insulation Limited [2014] NZHC 960 and Tasman Insulation New<br />

Zealand Ltd v Knauf Insulation Ltd [2015] NZCA 602


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

TOP EATERIES<br />

WIN FOODIE<br />

FESTIVAL<br />

CHALLENGE<br />

A<br />

scotch egg dish and pyramid-shaped<br />

pasta have both<br />

proven a hit during the Coastal<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>’s annual foodie festival.<br />

The winners <strong>of</strong> the Plates <strong>of</strong> <strong>Plenty</strong><br />

Challenge have just been announced,<br />

with Papamoa café Pearl Kitchen<br />

receiving almost a third <strong>of</strong> all the<br />

public votes cast to claim the People’s<br />

Choice Award.<br />

Inspired by a box <strong>of</strong> locally produced<br />

ingredients, their dish featured<br />

a bacon and maple scotch egg served<br />

with a sautéed mushroom medley,<br />

truffle mushroom foam, crispy potato,<br />

rocoto romesco, and a parmigiano<br />

and madeira jus.<br />

Pearl Kitchen head chef Nigel<br />

Reid says they sold about 400 servings<br />

<strong>of</strong> the dish throughout the 10-day<br />

Flavours <strong>of</strong> <strong>Plenty</strong> Festival (24 March<br />

– 2 April).<br />

“We really thought about the ingredients<br />

in the Plates <strong>of</strong> <strong>Plenty</strong> Challenge<br />

box and wanted to represent<br />

them well. Scotch egg was perfect for<br />

our breakfast/lunch demographic –<br />

and who doesn’t love a scotch egg!”<br />

Meanwhile, Alma Eatery in<br />

Ōmokoroa caught the attention <strong>of</strong><br />

the Plates <strong>of</strong> <strong>Plenty</strong> Challenge expert<br />

panel, earning the Judge’s Choice<br />

Award for its fagottini con funghi e<br />

tartufo.<br />

Their dish, featuring pyramid-shaped<br />

pasta stuffed with mushrooms,<br />

Grana Padano cheese, ricotta,<br />

and herbs, served with truffle butter<br />

consisting <strong>of</strong> roasted hazelnuts, sliced<br />

truffle, pekepeke-kiore, and truffle<br />

salt, made one judge note: “It was<br />

dancing on my palate.”<br />

Alma Eatery co-owner and head<br />

chef, Marco Velickovic, says his<br />

whole team helped perfect the dish<br />

before its release.<br />

“It means a lot that people within<br />

the hospitality sector recognise what<br />

we’re doing. The dish sold out most<br />

days [during the festival]. We’re even<br />

planning to add the dish to our menu,<br />

going forward.”<br />

It’s the second year that the culinary<br />

challenge has been held during<br />

the Flavours <strong>of</strong> <strong>Plenty</strong> Festival,<br />

which is organised by Tourism <strong>Bay</strong><br />

<strong>of</strong> <strong>Plenty</strong>.<br />

Each <strong>of</strong> the 12 Plates <strong>of</strong> <strong>Plenty</strong><br />

Challenge entrants received a box<br />

containing mushrooms, sausages,<br />

chocolate hazelnut butter, truffle salt,<br />

limoncello, chills, and eggs, and were<br />

tasked with using at least three <strong>of</strong> the<br />

items to create a bespoke dish for the<br />

festival.<br />

Pearl Kitchen and Alma Eatery<br />

received vouchers donated by Southern<br />

Hospitality, worth $400 and $600<br />

1 2<br />

3 4<br />

1. Head chef Nigel Reid and front-<strong>of</strong>-house assistant manager Tanesha Horsburgh were excited with Pearl<br />

Kitchen’s people’s choice win. 2. Pearl Kitchen’s award-winning scotch egg entry. 3. The pyramid-shaped<br />

pasta dish, by Alma Eatery, caught the judges’ attention. 4. Alma Eatery head chef and co-owner Marco<br />

Velickovic with the Judge’s Choice Award.<br />

respectively, for their award-winning<br />

efforts.<br />

Oscar Nathan, general manager<br />

at Tourism <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, says the<br />

challenge is designed to establish<br />

and encourage beneficial partnerships<br />

between the region’s innovative<br />

foodie producers and respected hospitality<br />

businesses.<br />

“We were impressed with the creativity<br />

and culinary skills displayed<br />

by all 12 <strong>of</strong> the eateries that entered,<br />

and it was great to garner the support<br />

<strong>of</strong> the seven local producers who<br />

enthusiastically submitted their best<br />

ingredients during the challenge.<br />

“It’s been exciting to see foodie<br />

producers, hospitality venues, tour<br />

operators, and event organisers coming<br />

together during our first two<br />

annual festivals to showcase our<br />

region’s spectacular range <strong>of</strong> edible<br />

<strong>of</strong>ferings. We’re very keen to ensure<br />

that the Coastal <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> earns<br />

its rightful place on the national and<br />

international culinary tourism scene,”<br />

he says.<br />

UTF raises red flags<br />

over infrastructure<br />

decisions at TCC<br />

Tauranga’s Urban Task<br />

Force have presented<br />

a report which raises<br />

concerns with changes to the<br />

city council’s Infrastructure<br />

Development Code (IDC)<br />

highlighting the adverse<br />

effects <strong>of</strong> these changes on<br />

the environment.<br />

The report was tabled in<br />

response to mounting frustration<br />

with frequent changes to<br />

the IDC.<br />

UTF Chairman, Scott<br />

Adams, says the rules set out<br />

in the IDC appear to pay little<br />

heed to both the environmental<br />

impact <strong>of</strong> infrastructure<br />

and the cost to the local<br />

economy.<br />

“In the last 10 years alone,<br />

developers who have constructed<br />

over 70kms <strong>of</strong> new<br />

roads in Tauranga have been<br />

required to transport the specific<br />

aggregate types needed<br />

from the western side <strong>of</strong> the<br />

Kaimais to the city despite the<br />

availability <strong>of</strong> local options.<br />

This has a huge logistical and<br />

environmental cost,” he says.<br />

“The IDC also includes<br />

a move away from <strong>of</strong>ficial<br />

Standards New Zealand<br />

conditions.<br />

“This imposes changes to<br />

the overall design, inspection<br />

and compliance <strong>of</strong> a roading<br />

project, doubles the cost and<br />

causes all kinds <strong>of</strong> engineering<br />

and running contractual<br />

issues,” says Adams.<br />

“Multiply the environmental<br />

costs and the increased<br />

expense by the amount <strong>of</strong><br />

roading that developers are<br />

forecast to construct in the<br />

Western <strong>Bay</strong> over the next 30<br />

years, and you can see why<br />

we are concerned at the arbitrary<br />

specifications set by the<br />

IDC.”<br />

The report notes that the<br />

IDC is an internal Tauranga<br />

City Council (TCC) document<br />

which is not subject to<br />

external review. Any changes<br />

to the IDC are made by Council<br />

staff.<br />

“Frequent changes to the<br />

IDC significantly increase<br />

construction costs, time and<br />

risk without any evidence<br />

that TCC has considered the<br />

social, cultural, economic<br />

and environmental impacts <strong>of</strong><br />

these changes,” says Adams.<br />

“UTF would like to see a<br />

balanced and fair approach<br />

to all IDC decision-making.<br />

This should include an opportunity<br />

for better visibility, collaboration<br />

on additions/variations<br />

to the IDC document, or<br />

changes via submissions to<br />

be heard and for oversight by<br />

either a<br />

Commissioner or a panel<br />

<strong>of</strong> experts,” says Adams.<br />

The UTF report was presented<br />

to the city’s Commissioners<br />

and the Council’s<br />

Chief Executive Officer,<br />

Marty Grenfell.<br />

“We’ve asked the city’s<br />

leaders to consider the significant<br />

uncertainty that the<br />

IDC creates for the development<br />

community. We’d like<br />

TCC to follow the example<br />

<strong>of</strong> other local authority’s and<br />

restrict reviews <strong>of</strong> the IDC to<br />

a five-year cycle.”<br />

UTF have formed a<br />

sub-committee chaired by<br />

Steve Cutfield <strong>of</strong> Classic<br />

Group to work alongside<br />

Council staff and address<br />

the issues raised in the IDC<br />

report and move towards a<br />

better system for implementing<br />

acceptable changes to the<br />

IDC document.<br />

“The development community<br />

understands the IDC<br />

is an evolving document, so<br />

the UTF is pleased that the<br />

work we have put into our<br />

report has resulted in this<br />

opportunity to work alongside<br />

the Council and provide<br />

our perspective on the<br />

changes needed to the IDC,”<br />

says Cutfield.<br />

“Through its recently<br />

announced creation <strong>of</strong> a<br />

Climate Plan, TCC has the<br />

chance to reconsider the<br />

environmental impacts <strong>of</strong><br />

key documents like the IDC.<br />

UTF support these critical<br />

decisions which will lead to<br />

better environmental, economic,<br />

cultural and social<br />

outcomes for the ratepayers<br />

<strong>of</strong> Tauranga.”<br />

engineers | surveyors | planners<br />

Proudly adding expert advice to projects<br />

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

Contact<br />

Cheal to find out<br />

how we can assist<br />

with your projects.<br />

1180 Amohia Street, Rotorua<br />

Ph: +64 7 349 8470


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

Man versus machine in franchisee<br />

recruitment<br />

As a generation X person I feel we’re a link<br />

between the technology native millennials,<br />

with their cloud based notes and voice<br />

activated assistants, and the old school: pen<br />

and paper, always carry a diary, err … old<br />

schoolers.<br />

So like many, I’ve<br />

watched the development<br />

<strong>of</strong> AI and the news<br />

on what industries it’s going to<br />

completely replace and wondered<br />

if we’re next.<br />

Technology has helped,<br />

and changed, how we work<br />

How we work is now very<br />

different to when I started in<br />

franchising more than 20 years<br />

ago. This has been influenced<br />

and facilitated by technology.<br />

How people receive information<br />

relating to a particular<br />

franchise or opportunity has<br />

completely changed.<br />

The old path <strong>of</strong> a newspaper<br />

advert, perhaps followed by a<br />

telephone call, an exchange <strong>of</strong><br />

paper-based information and<br />

endless face-to-face meetings<br />

(to expound the virtues <strong>of</strong> purchasing<br />

a particular business<br />

model) is gone – dead and forgotten.<br />

It has been replaced by<br />

social media, brand websites<br />

and Google. Thank goodness.<br />

This makes for better-informed<br />

buyers and for better,<br />

more valuable conversations<br />

when we start the dialogue<br />

with people.<br />

Unquestionably, processes<br />

have also changed; the<br />

well-developed excel sheets<br />

with macros and links to<br />

access information and repeat<br />

tasks replaced by CRMs.<br />

Faxed or posted forms have<br />

been replaced by secure digital<br />

signing platforms. Printed brochures<br />

replaced by websites,<br />

downloadable PDFs and digital<br />

assets.<br />

Embedded in these new<br />

processes are time-saving process<br />

automations – sending<br />

forms, progressing sequential<br />

information flows and<br />

ensuring boxes are ticked and<br />

actions recorded.<br />

Technology has replaced<br />

manual processes, assisting the<br />

franchisee recruiter and potential<br />

franchisee along the way.<br />

Essentially the same route, on<br />

a different mode <strong>of</strong> transport.<br />

The real change now raised<br />

is the possibility <strong>of</strong> AI jumping<br />

in and replacing some <strong>of</strong><br />

the touch points <strong>of</strong> the human<br />

recruiter.<br />

A Google search “best franchises<br />

to buy in New Zealand”<br />

can already be replaced by AI;<br />

chatbots can run an interactive<br />

process resembling, and<br />

in some cases scarily close to<br />

replacing, a human recruiter,<br />

asking questions and guiding<br />

a potential franchisee buyer<br />

through the process.<br />

Their ability to collect and<br />

Chatbots can run an<br />

interactive process<br />

resembling, and in some<br />

cases scarily close to<br />

replacing, a human recruiter,<br />

asking questions and guiding<br />

a potential franchisee buyer<br />

through the process. Their<br />

ability to collect and collate<br />

data, record preferences<br />

and manage processes will<br />

in most cases surpass even<br />

the most experienced and<br />

capable recruiter.”<br />

collate data, record preferences<br />

and manage processes<br />

will in most cases surpass<br />

even the most experienced and<br />

capable recruiter.<br />

What people do that<br />

technology cannot … yet<br />

But before we log <strong>of</strong>f and hand<br />

over to the machines to complete<br />

franchisee recruitment<br />

and sales processes, it’s worth<br />

stepping back and looking at<br />

the intention <strong>of</strong> recruiting, and<br />

what the machine is not yet<br />

able to imitate.<br />

Franchising is a relationship<br />

model. The relationship is<br />

between, and relies on, people.<br />

The franchisee recruiter’s role<br />

is to make a match between the<br />

potential franchisee and the<br />

franchise brand; In essence,<br />

anything attempting to replace<br />

the human component is still<br />

trying to imitate the human<br />

relationship part, and here lies<br />

the crux.<br />

The <strong>May</strong>a Angelou quote,<br />

“People will forget what you<br />

said, people will forget what<br />

you did, but people will never<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 />

forget how you made them<br />

feel,” was not written about<br />

the franchise relationship, but<br />

it certainly does apply.<br />

As yet AI can only imitate<br />

empathy. AI will never really<br />

have any feelings. AI cannot<br />

have any collective experience<br />

and relate to the candidate, so<br />

ultimately how is that going to<br />

make you feel?<br />

So my take on AI as it<br />

relates to franchisee recruitment:<br />

it is not going to replace<br />

our ability to relate to and<br />

engage with each other on a<br />

personal level. We should not<br />

fear it taking our jobs, it should<br />

simply be seen as another<br />

(super clever) technology tool<br />

that may actually give us back<br />

some time.<br />

Room to grow for SME wellbeing<br />

A walk between meetings<br />

can help achieve restedness.”<br />

It’s no secret small<br />

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

<strong>of</strong> <strong>Plenty</strong> and across<br />

Aotearoa have been<br />

doing it tough these<br />

last few years.<br />

WORKPLACE WELLBEING<br />

> BY BRIDGET SNELLING<br />

Bridget Snelling,<br />

Xero New Zealand Country Manager.<br />

The string <strong>of</strong> Covid-19<br />

lockdowns, followed<br />

closely by high inflation,<br />

talent shortages, and uncertainty<br />

about the future, have all<br />

made a challenging work environment<br />

for our small business<br />

communities.<br />

However, if the last few<br />

years have taught us anything,<br />

it’s the resilience <strong>of</strong> our small<br />

business communities.<br />

But how does their wellbeing<br />

fare against the general<br />

population?<br />

To better understand the<br />

relationship between small<br />

business ownership and wellbeing,<br />

a new report draws<br />

comparisons on small business<br />

wellbeing across several<br />

countries including Australia,<br />

Canada, New Zealand, Singapore,<br />

South Africa, the United<br />

Kingdom, and the United<br />

States.<br />

Overall, Kiwi small businesses<br />

appear to be coping<br />

well compared to other small<br />

business communities around<br />

the world.<br />

Our small business owners<br />

ranked third in overall wellbeing,<br />

and first in overall life satisfaction,<br />

with almost half <strong>of</strong><br />

small business owners feeling<br />

calm and relaxed most or all <strong>of</strong><br />

the time.<br />

This is all testament to the<br />

strong appreciation Kiwis now<br />

have for work-life balance,<br />

with more business owners<br />

beginning to focus on fostering<br />

a positive workplace culture.<br />

While it’s encouraging to<br />

see these solid indicators <strong>of</strong><br />

wellbeing for Kiwi small businesses,<br />

their wellbeing still<br />

trends below that <strong>of</strong> the general<br />

population.<br />

It’s common for small business<br />

owners to take a hands-on<br />

approach to business, deeply<br />

involving themselves in any<br />

day-to-day operations and<br />

challenges which pop up. As a<br />

result, this <strong>of</strong>ten puts their personal<br />

wellbeing in a vulnerable<br />

position.<br />

There’s a general understanding<br />

around why small<br />

business owners <strong>of</strong>ten struggle<br />

with wellbeing – the real thing<br />

we need to focus on is what<br />

can they do about it?<br />

For small business owners<br />

concerned for their wellbeing<br />

or that <strong>of</strong> their employees, we<br />

have four recommendations to<br />

help mitigate this stress.<br />

There’s no doubt small<br />

business productivity and<br />

wellbeing go hand-in-hand.<br />

Conscious investment in wellbeing<br />

initiatives can help support<br />

you, your employees, and<br />

your bottom line.<br />

Training and guides which<br />

help address the root causes<br />

<strong>of</strong> employee’s mental health<br />

issues are also an effective way<br />

to introduce wellbeing into the<br />

workplace.<br />

This could be an expert<br />

coming into the <strong>of</strong>fice to discuss<br />

wellbeing, or even sharing<br />

helpful tips and resources<br />

with your team.<br />

Then for anyone looking for<br />

a more interpersonal approach,<br />

there are a range <strong>of</strong> counselling<br />

and peer support networks<br />

available in Aotearoa to help<br />

small businesses navigate their<br />

wellbeing challenges.<br />

Support <strong>of</strong>fered through the<br />

Xero Assistance Programme<br />

(XAP) gives small business<br />

owners on Xero starter, standard,<br />

platinum or ultimate<br />

plans free access to confidential<br />

mental health counselling<br />

and resources.<br />

Lastly, try to explore different<br />

ways to achieve restedness<br />

in your workplace, with the<br />

goal to help you and your team<br />

set business matters aside.<br />

This could be anything<br />

from taking a walk around the<br />

block in between meetings,<br />

to giving a team member an<br />

extended lunch break if they’re<br />

feeling overwhelmed.<br />

Wellbeing support comes<br />

in all shapes and sizes, and it<br />

doesn’t have to be a huge cost<br />

for your business.<br />

Small business owners<br />

have made incredible progress<br />

in the wellbeing space over the<br />

last few years, and we hope to<br />

see them continue to strive in<br />

this space.


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

Award winning Tiaki Early<br />

Learning Centre changes hands<br />

After 15 years <strong>of</strong> hard work and obtaining a unique status among early childcare<br />

services in Rotorua, award winning Tiaki Early Learning Centre changed hands<br />

on 1st April <strong>2023</strong>. It has been bought by Osatti Investments Limited which runs<br />

Playtopia Educare.<br />

The word Tiaki means to ‘care,<br />

protect and look after, to be<br />

a guardian’. This name was<br />

given to the Centre by the local hapū<br />

Ngāti Te Roro o te Rangi.<br />

Tiaki Early Learning Centre, nestled<br />

on the shores <strong>of</strong> Lake Rotorua,<br />

caters for up to 30 children. It was<br />

opened in November 2008, with a<br />

desire to create a quality place for<br />

children to grow and learn, with the<br />

support <strong>of</strong> many kaiako, families and<br />

the local community.<br />

The service is set within a large,<br />

well-established outdoor environment,<br />

with vegetable gardens, an<br />

orchard, and plenty <strong>of</strong> space and<br />

mature trees which allow children<br />

room to move, climb and play. The<br />

outside environment is intentionally<br />

designed to encourage children to<br />

connect with nature.<br />

Tiaki ELC has won several awards,<br />

including the Innovation category <strong>of</strong><br />

New Zealand National Commission<br />

(UNESCO) Award in Global Citizenship<br />

Education in 2018; Excellence<br />

in Health and Wellbeing Education at<br />

the 2019 Prime Minister’s Education<br />

Excellence Awards.<br />

Tiaki’s philosophy is rooted in<br />

whanaungatanga and tangata whenuatanga<br />

– the concepts <strong>of</strong> relationships<br />

and socio-cultural, place-based education.<br />

Place-based learning builds<br />

a feeling <strong>of</strong> belonging and fosters a<br />

strong sense <strong>of</strong> identity, <strong>of</strong> affiliation,<br />

and responsibility.<br />

The high teacher:children ratio<br />

allows the children to undertake<br />

place-based education, connecting<br />

with the local community which is a<br />

large part <strong>of</strong> Tiaki life. With time, the<br />

children develop a love and respect<br />

for the local area, they want to care<br />

and look after it, that is the essence<br />

<strong>of</strong> kaitiaki.<br />

“As a former senior environmental<br />

scientist at Scion, and Pr<strong>of</strong>essor<br />

<strong>of</strong> Environmental Science at Fiji<br />

National University, I am impressed<br />

with the philosophy <strong>of</strong> sustainability<br />

and zero waste policy at Tiaki ELC,”<br />

said Dr Guna Magesan, Director <strong>of</strong><br />

Osatti Investments Limited.<br />

“Tiaki’s philosophy will continue<br />

under new management. Similarly,<br />

excursions to local Marae, wetlands,<br />

lake, and community interactions and<br />

learning from nature will continue.<br />

To make sure that happens, we have<br />

appointed Bradley Graham, who is a<br />

current kaiako, as the interim Manager<br />

<strong>of</strong> Tiaki ELC,” he added.<br />

“At Scion, I had an opportunity to<br />

lead several projects including land<br />

treatment <strong>of</strong> effluent; nitrate leaching<br />

from gorse; biological farming and<br />

Now, it is time to bring<br />

scientific concepts to<br />

childcare education,<br />

showing importance <strong>of</strong><br />

vermicomposting, organic<br />

gardening to grow our<br />

own kai, and many more.”<br />

impacts on water quality; and “wastes<br />

to resources” programme. Now, it is<br />

time to bring scientific concepts to<br />

childcare education, showing importance<br />

<strong>of</strong> vermicomposting, organic<br />

gardening to grow our own kai, and<br />

many more,” Dr Magesan added.<br />

“We already compost all food<br />

scraps. We work hard to find<br />

resources that align with our philosophy.<br />

We avoid plastic and try<br />

to purchase well-made, long-lasting<br />

resources. All <strong>of</strong> this means we<br />

can significantly reduce the amount<br />

<strong>of</strong> waste we produce,” said Bradley<br />

Graham, interim Manager <strong>of</strong> Tiaki<br />

ELC.<br />

“The kaiako come from a range <strong>of</strong><br />

backgrounds but all <strong>of</strong> them share a<br />

passion for the natural world while<br />

ensuring the best quality education<br />

for the tamariki.<br />

“The outdoor environment is the<br />

best possible resource which helps<br />

children to become capable, confident,<br />

and resilient while developing<br />

a healthy respect for Papatūānuku,”<br />

he added.<br />

Tiaki provides delicious and nutritious<br />

vegan kai. The menu has been<br />

developed alongside a qualified and<br />

experienced pediatric nutritionist,<br />

who worked with the chef who prepares<br />

the kai. It’s about teaching the<br />

tamariki healthy ideas around food,<br />

trying new foods, understanding<br />

where your food comes from, and the<br />

effect that has on the environment.<br />

Tiaki Early Learning Centre is<br />

indeed unique, and it holds a special<br />

place within our hearts because <strong>of</strong><br />

its service, philosophy, and learning<br />

from nature. The children are able<br />

to authentically connect with their<br />

local community and its history and<br />

culture, and the result is that they can<br />

receive the physical, mental, spiritual,<br />

and emotional benefits these<br />

connections <strong>of</strong>fer.<br />

“I got into the childcare business<br />

with a concept <strong>of</strong> community development<br />

through childcare education.<br />

We are here to contribute to the community,”<br />

added Dr Magesan.<br />

“Let us all come together. Let us<br />

all work together. Let us all grow<br />

together.”<br />

Celebrating<br />

20 years<br />

<strong>of</strong> giving<br />

This year, the Acorn Foundation<br />

celebrates 20 years <strong>of</strong> connecting<br />

generous people who care with causes<br />

that matter in our region.<br />

Acorn’s Smarter Giving Model has enabled<br />

generous locals to connect with causes that<br />

matter in our region since 2003.<br />

Thanks to the generosity <strong>of</strong> more than 425 donor<br />

funds, Acorn has gifted over $13M to hundreds <strong>of</strong><br />

community organisations and award winners.<br />

Community-minded donors, committed<br />

strategic partners, and engaged local funders<br />

work with Acorn for the benefit <strong>of</strong> the WBOP.<br />

See our<br />

photographic exhibition<br />

Join us in building a stronger<br />

Western <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, forever.<br />

(07) 579 9839 www.acornfoundation.org.nz<br />

CELEBRATING 20 YEARS OF GIVING<br />

The Strand, Downtown Tauranga, 4 April – 31 <strong>May</strong> <strong>2023</strong><br />

In partnership with


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

The Te Manawataki o Te Papa development<br />

will transform Tauranga city centre.<br />

City centre revitalisation underway,<br />

but there’s no quick fix<br />

Calls for a variety <strong>of</strong> measures to assist struggling city centre businesses have been common in recent years and<br />

Tauranga City Council is continuing to invest heavily in solutions to the area’s malaise. Many <strong>of</strong> those solutions will take<br />

time to put in place, so in the meantime, we’re implementing a range <strong>of</strong> actions to bring people into the city centre and<br />

re-energise Tauranga’s commercial heart.<br />

By ANNE TOLLEY, Tauranga<br />

Commission Chair<br />

When the Commission<br />

first joined Tauranga<br />

City Council at the<br />

start <strong>of</strong> 2021, we were saddened<br />

to see the state <strong>of</strong> the<br />

city centre; a result <strong>of</strong> years <strong>of</strong><br />

indecision and inaction by previous<br />

councils.<br />

One <strong>of</strong> our main priorities<br />

ever since has been to revitalise<br />

the city centre, so it once again<br />

becomes the thriving, beating<br />

heart <strong>of</strong> Tauranga city – a great<br />

place for people to live, work,<br />

learn, visit and play.<br />

That’s one <strong>of</strong> the key reasons<br />

we’ve committed to the<br />

transformative redevelopment<br />

<strong>of</strong> the civic precinct – Te<br />

Manawataki o Te Papa.<br />

At $303 million, this will<br />

be the biggest investment the<br />

city centre has ever seen and<br />

will include a new library and<br />

community hub; a civic whare<br />

(community meeting place); a<br />

museum where the city’s heritage<br />

can be displayed; an exhibition<br />

gallery; and landscaping<br />

linking the civic precinct to the<br />

nearby waterfront reserve.<br />

On top <strong>of</strong> this, Council has<br />

also redeveloped a city centre<br />

mall between Devonport Road<br />

and Grey Street to house He<br />

Puna Manawa – our library<br />

and customer service centre<br />

– until the new Civic Precinct<br />

facilities are constructed; and<br />

has committed to leasing a<br />

10,000sq.m-plus building<br />

now under construction at 90<br />

Devonport Road as its future<br />

administration building.<br />

The private sector is also<br />

playing its part, with several<br />

large-scale developments<br />

already underway and more<br />

planned across the city centre.<br />

We do acknowledge that<br />

this revitalisation won’t happen<br />

overnight, and we really<br />

feel for those businesses who<br />

have been impacted by previous<br />

inaction.<br />

We are committed to working<br />

with them and other organisations<br />

such as Downtown<br />

Tauranga, so together we can<br />

support our city centre through<br />

this transformation.<br />

We have already begun<br />

implementing some immediate<br />

solutions to help bring people<br />

back into the city centre<br />

through initiatives like community<br />

events.<br />

These are working well,<br />

with a noticeable increase <strong>of</strong><br />

people spending time in the<br />

city centre over the past summer,<br />

and we are looking to<br />

continue activation events over<br />

the coming months.<br />

Creating more spaces for<br />

people to spend time is another<br />

great way to bring people into<br />

the city centre and this is a big<br />

driver for the transformation<br />

that’s underway at the waterfront,<br />

from Dive Crescent right<br />

along The Strand.<br />

A key objective <strong>of</strong> this<br />

development, and the wider<br />

city centre transformation, is<br />

the need to make the heart <strong>of</strong><br />

our city a place our community<br />

can feel proud <strong>of</strong>.<br />

Cleaning up our streets,<br />

increasing the number <strong>of</strong> trees<br />

and plants and creating places<br />

for people to sit and spend time<br />

are just a few <strong>of</strong> the ways we<br />

are doing this.<br />

We’re also exploring other<br />

solutions to support businesses<br />

based in the city centre, such as<br />

a review <strong>of</strong> licence to occupy<br />

arrangements, which allow for<br />

our outdoor dining areas.<br />

A return to paid on-street<br />

parking in the city centre was<br />

undertaken in December to<br />

support retailers and customers<br />

who were concerned about<br />

people working in the city<br />

using parking spaces all day.<br />

Anne Tolley<br />

To further support businesses,<br />

earlier this month the<br />

Commissioners approved widening<br />

the scope <strong>of</strong> an existing<br />

city centre residential accommodation<br />

fund.<br />

This creates a huge opportunity<br />

for us to kick-start a wider<br />

range <strong>of</strong> initiatives that we<br />

know businesses need in the<br />

short-to-medium term, while<br />

our city centre goes through<br />

this period <strong>of</strong> transformation.<br />

We welcome all ideas from<br />

local businesses and will check<br />

back in with our city centre<br />

community over the coming<br />

weeks to discuss possibilities<br />

for making the best use <strong>of</strong> this<br />

fund, so as many people as<br />

possible can benefit.<br />

Does your bach<br />

have a hidden<br />

GST cost?<br />

There are thousands <strong>of</strong> baches for rent in the wider BOP and<br />

Coromandel regions and I would put money on a significant number<br />

<strong>of</strong> these being owned by GST registered entities.<br />

Sometimes the GST registration<br />

is necessary<br />

because the total rental<br />

is over $60,000 per year, or the<br />

entity owning the bach carries<br />

on some other GST taxable<br />

activity.<br />

In these cases the owner<br />

has had no choice but to make<br />

the property subject to GST,<br />

meaning GST can be claimed<br />

on the purchase but must also<br />

be paid on the eventual sale <strong>of</strong><br />

the bach.<br />

This is the same as for<br />

any other business asset, but<br />

because the expectation is<br />

that baches will rise in value<br />

the owner effectively pays<br />

GST on the capital gain on the<br />

property.<br />

On the other hand, there<br />

will be a number <strong>of</strong> bach owners<br />

who have registered for<br />

GST voluntarily. You might<br />

be wondering why do they do<br />

this?<br />

In my experience, this is<br />

<strong>of</strong>ten done to make the sums<br />

work on buying the bach in<br />

the first place. Especially with<br />

coastal properties increasing<br />

in value significantly in recent<br />

times, if a buyer is struggling<br />

to get the purchase over the<br />

line with the bank they may<br />

see making a GST claim an<br />

easy way to reduce the overall<br />

cost <strong>of</strong> purchase and therefore<br />

the amount they need to<br />

borrow.<br />

But this strategy can be<br />

short-sighted because GST<br />

will be payable on sale <strong>of</strong> the<br />

bach.<br />

Take the example <strong>of</strong> a bach<br />

that was bought for $600,000<br />

and the owner claimed back<br />

GST <strong>of</strong> $78,260. If the bach<br />

increases in value by $1m, a<br />

$1.6m sale means the owner<br />

has to pay $208,695 in GST.<br />

Being GST registered will<br />

have cost the owner a net<br />

$130,434 in GST.<br />

Often this is not well understood<br />

by the owner and can be<br />

a surprise when they come to<br />

sell.<br />

The good news for these<br />

owners is that a recent GST<br />

law change may give them<br />

ability to opt the bach itself out<br />

<strong>of</strong> the GST net by paying back<br />

the GST that they claimed in<br />

the first place.<br />

If the purchase was zerorated<br />

for GST the opt out still<br />

applies, but the amount <strong>of</strong> GST<br />

payable is based on the GST<br />

that would have been charged<br />

on the purchase if it had not<br />

been zero-rated.<br />

Owners are only able to opt<br />

out if the bach was acquired<br />

and used primarily for private<br />

purposes, so as a family bach<br />

rather than a permanent shortterm<br />

rental for example, and<br />

they have to be able to fund<br />

the GST that will be payable to<br />

Inland Revenue.<br />

The rental income remains<br />

subject to GST after making<br />

the opt out election and GST<br />

is still claimable on the rental<br />

costs.<br />

But the upside is that the<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 />

GST payable on opting out is<br />

based on the cost <strong>of</strong> the bach,<br />

not the current market value or<br />

the future sale price.<br />

This represents a real saving<br />

for affected owners when<br />

you look at the long-term position<br />

and is preferable to deregistering<br />

for GST because this<br />

will cost the owner GST on the<br />

current market value.<br />

There is a two-year window<br />

in which to make an opt<br />

out election for baches bought<br />

before 1 April <strong>2023</strong>, and similar<br />

rules apply for baches purchased<br />

after 1 April where the<br />

owner can elect not to claim<br />

the GST on purchase and the<br />

future sale will not be subject<br />

to GST.<br />

If this sounds like something<br />

you need to consider<br />

make sure you seek advice<br />

from your accountant or tax<br />

adviser.


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

EAT CHOCOLATE, GET RICH<br />

A recent Easter egg hunt revealed a surprise even sweeter than<br />

chocolate - the discovery <strong>of</strong> how to make more sales with fewer<br />

resources, while making more pr<strong>of</strong>it in less time.<br />

“If you don’t know where<br />

you’re going, any road<br />

will take you there”,<br />

purrs the Cheshire Cat in Alice<br />

<strong>of</strong> Wonderland.<br />

I look at things a different<br />

way: If you don’t know what<br />

you’re trying to fix, doing<br />

nothing feels like the perfect<br />

solution.<br />

Your pressing problem<br />

might not be immediately<br />

obvious. Which one to choose?<br />

Obviously, there’s the<br />

whole ‘too busy’ thing. Too<br />

many clients and customers,<br />

not enough resources. Who<br />

needs to pick up the slack?<br />

Well that’s you, <strong>of</strong> course.<br />

More money would be high<br />

up the list. You wouldn’t be<br />

greedy, <strong>of</strong> course. Just a little<br />

bank account boost to help take<br />

the weight <strong>of</strong>f your shoulders.<br />

Then there’s time: The<br />

one thing you never have<br />

enough <strong>of</strong>. Waking up every<br />

morning, thinking, “I didn’t<br />

sleep enough”, then going to<br />

bed every night muttering, “I<br />

didn’t do enough”.<br />

Whatever problem you<br />

believe you face, the easiest<br />

solution is ‘do nothing’, followed<br />

by telling yourself: ‘it<br />

will sort itself out eventually’.<br />

I’ve spent years perfecting<br />

both these approaches: I am a<br />

male, after all.<br />

But, if you’re prepared to<br />

undertake a little journey <strong>of</strong><br />

discovery, there is another way<br />

to achieve outcomes you seek<br />

in business and in life.<br />

The secret lies in the most<br />

unlikely <strong>of</strong> places … an Easter<br />

egg hunt.<br />

The chocolate anticlimax<br />

Let’s pretend we all took a<br />

proper break during Easter,<br />

like we promised we would.<br />

When I paused from my<br />

one-man, chocolate-fuelled<br />

mission to contract early<br />

onset-diabetes, I saw my children<br />

in the garden, on their<br />

quest for hidden Easter eggs.<br />

In that moment I received<br />

a priceless lesson in sales,<br />

money and time.<br />

Observe children on an<br />

Easter egg hunt … You will<br />

see excitement, curiosity, joy<br />

and delight. They’re empowered<br />

by this wondrous journey<br />

<strong>of</strong> discovery.<br />

When the search is over,<br />

they sit down to eat the chocolate.<br />

Their energy drops. Eating<br />

the eggs almost feels like a<br />

chore. It’s an anticlimax.<br />

And herein lies our first<br />

lesson: It was never about the<br />

OUTCOME – It was always<br />

about the DISCOVERY.<br />

In our goal-based society,<br />

it’s too easy to get fixated on<br />

the destination. We’re so busy<br />

aiming for the top <strong>of</strong> the mountain<br />

that we keep tripping over<br />

pebbles in our path.<br />

Stop looking for the big<br />

goal, just focus on the next<br />

step. You’ll get where you<br />

need to go even faster.<br />

(Don’t) follow the white<br />

rabbit<br />

During this particular Easter<br />

egg adventure, children aren’t<br />

worried about ‘how they’re<br />

coming across’.<br />

They’re not panicking<br />

because they only allocated<br />

45 minutes to this particular<br />

activity but it’s actually taking<br />

an hour and a half.<br />

They don’t fear they must<br />

‘provide significant value<br />

up-front’ before they deserve<br />

any Easter eggs.<br />

They don’t say they ‘really<br />

wanted’ to undertake this<br />

quest, but capacity challenges<br />

and resource constraints meant<br />

it couldn’t happen.<br />

You won’t get an unexpected<br />

invoice next month<br />

because the kids were terrible<br />

at estimating their time<br />

investments.<br />

The tears only happen<br />

when they start stressing about<br />

how many eggs ‘other people’<br />

are getting … but when they<br />

focus on their own basket, they<br />

do just fine.<br />

The message is clear: If we<br />

start paying too much attention<br />

to the competition / colleagues<br />

/ other members <strong>of</strong> the leadership<br />

team / business coaches<br />

/ the neighbours, we come<br />

unstuck.<br />

Trust yourself a little more.<br />

You’ve felt lost before, but<br />

you’ve always found a way out<br />

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

As Alice says, when she<br />

tries to escape Wonderland,<br />

“It’s no use going back to yesterday,<br />

because I was a different<br />

person then.”<br />

The egg-sell-ent<br />

adventure<br />

Like all good things, Easter<br />

egg hunts must come to an end.<br />

Kids being kids, they<br />

always want more.<br />

However, if you listen<br />

closely (there’s a lesson in<br />

itself).<br />

Children don’t ask for more<br />

chocolate.<br />

They ask for another Easter<br />

Egg hunt.<br />

The teaching here is to<br />

detach ourselves from the need<br />

to GET MORE EGGS.<br />

Whether you want to<br />

achieve more sales, greater<br />

pr<strong>of</strong>its, or just a little breathing<br />

space, ‘outcome indifference’<br />

is a powerful tool. It sounds<br />

like a paradox – being indifferent<br />

to that which you desire the<br />

most – but it works.<br />

You only find something<br />

when you stop frantically<br />

searching for it.<br />

Who would you rather be<br />

someone who was stomping<br />

around their garden, digging<br />

holes with a shovel, wild eyes<br />

blazing, muttering about ‘need<br />

to get more eggs this month’?<br />

Or the individual who<br />

was inviting people on an<br />

adventure? Someone who<br />

approached the task at hand<br />

with playful curiosity, no particular<br />

outcome in mind apart<br />

from finding some hidden<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 />

treasure.<br />

None <strong>of</strong> this is supposed<br />

to be hard. We just delight<br />

in making life difficult for<br />

ourselves.<br />

If you get the discovery<br />

wrong, you’ll never find the<br />

Easter eggs … even if they’re<br />

right in front <strong>of</strong> you.<br />

Remember, it’s not about<br />

how hard you’re searching; It’s<br />

about knowing where to look.<br />

Through the looking glass<br />

Whether you’re looking for<br />

money, time, freedom or chocolate,<br />

be careful what you wish<br />

for.<br />

Remember, you can have<br />

too much <strong>of</strong> a good thing.<br />

And once you get your<br />

hands on that thing you seek,<br />

you realise it doesn’t actually<br />

unlock your freedom from the<br />

rabbit hole.<br />

Perhaps the Cheshire Cat<br />

was right after all, it doesn’t<br />

really matter which path you<br />

take … any path is better<br />

than ‘do nothing’ or ‘change<br />

nothing’.<br />

Lead. Explore. Take the<br />

first step, and you might be<br />

surprised who follows you.<br />

Just remember, everyone<br />

wants to go on a quest.<br />

No-one likes a boring hunt.<br />

Trust me, would I lie to you?<br />

Lately I have been asked<br />

a seemingly very simple,<br />

yet quite complex question:<br />

“How do I know who to<br />

trust?”<br />

When preparing to write<br />

this I drew on a few other<br />

information sources in addition<br />

to my own experience.<br />

One was the adventurer<br />

(and some may say epitome<br />

<strong>of</strong> “toxic masculinity”) Ernest<br />

Hemingway who famously<br />

said, “the best way to find out<br />

if you can trust somebody is to<br />

trust them.”<br />

When posed the question,<br />

“what does trust mean<br />

to you”, my son William (18)<br />

said, “trusting someone makes<br />

you vulnerable, but those<br />

defences need to be lowered<br />

in order to truly connect.” To<br />

be honest that was a much<br />

‘deeper’ response than I was<br />

expecting.<br />

The IPI investigation<br />

inbox has been getting absolutely<br />

slammed with infidelity<br />

related investigation requests<br />

recently – more in a month<br />

than we would have received<br />

in a year pre-Covid.<br />

We do not do infidelity<br />

My advice for business owners is to set<br />

your systems up like everyone is going to<br />

lie to you and try to steal your money, then<br />

you can appear to trust everyone while<br />

knowing that you really can’t.”<br />

investigations; they always<br />

end in tears, and if nothing is<br />

found, the client still believes<br />

there is something going on<br />

and you are just not good<br />

enough to find it.<br />

There is also always something<br />

sad about one person<br />

being betrayed by another and<br />

our witnessing the moment<br />

they realise it.<br />

One particularly gutting<br />

case from my Debt Free work<br />

that we have just completed<br />

involved a building developer<br />

who contracted a trades company<br />

to perform major works<br />

when they knew full well that<br />

the company was going into<br />

liquidation.<br />

The trades company lost<br />

around $200k with virtually<br />

no chance <strong>of</strong> recovering the<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 />

amounts owed. The case has<br />

not only seriously affected the<br />

business from a financial perspective<br />

but also decimated<br />

any confidence that they can<br />

trust any client without a large<br />

amount <strong>of</strong> due diligence and<br />

risk mitigation.<br />

It seems that trust is becoming<br />

a rare commodity in these<br />

post-Covid times (much like<br />

an affordable block <strong>of</strong> cheese<br />

or a sub $10 punnet <strong>of</strong> raspberries);<br />

people have even lost<br />

trust in what have traditionally<br />

been considered bastions <strong>of</strong><br />

legitimacy and trustworthiness<br />

such as governments, healthcare<br />

providers and religious<br />

institutions.<br />

In particular, it seems we<br />

have lost trust in each other<br />

which is adding to a general<br />

atmosphere <strong>of</strong> tension and<br />

mistrust in the business community<br />

as well.<br />

So what do we do?<br />

Well, my advice for business<br />

owners is to set your systems<br />

up like everyone is going to<br />

lie to you and try to steal your<br />

money, then you can appear to<br />

trust everyone while knowing<br />

that you really can’t.<br />

We do it with other parts<br />

<strong>of</strong> life, for instance most <strong>of</strong> us<br />

lock our doors when we leave<br />

our homes, yet we don’t expect<br />

every passing pedestrian to be<br />

an opportunist thief.<br />

Trust is fine to have as long<br />

as you insure there are adequate<br />

checks and balances to<br />

give you a chance should the<br />

trust prove to be misplaced.<br />

Just a thought.


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

Flight-to-quality trend<br />

is not a flight <strong>of</strong> fancy<br />

Income growth is now a key determinant <strong>of</strong> property value and is <strong>of</strong>f-setting macro<br />

headwinds for landlords who are staring down rising inflation, increased lending<br />

rates, s<strong>of</strong>tening yields and higher compliance thresholds.<br />

Latest MSCI data from December<br />

2022 highlights that income<br />

returns are propping up total<br />

returns in the commercial and industrial<br />

property sector – citing 5.3 percent<br />

for <strong>of</strong>fice and 4.1 percent for<br />

industrial – and signalling that this<br />

will strengthen further.<br />

Rental growth is negating s<strong>of</strong>ter<br />

cap rates evidenced around the country,<br />

with signs that the higher rents<br />

being seen nationwide could continue<br />

this year.<br />

In its latest Outlook Report, <strong>Bay</strong>leys’<br />

global real estate partner Knight<br />

Frank said a renewed focus on income<br />

growth will guide investor strategy<br />

and asset selection during <strong>2023</strong>, with<br />

a spotlight on lease structures that<br />

have the capability to ratchet up rents<br />

in line with higher inflation.<br />

With <strong>of</strong>fice occupiers seeking<br />

higher amenity, “greener”, and modern<br />

fit-for-purpose buildings to help<br />

draw staff back to the <strong>of</strong>fice, and<br />

landlords across the commercial sector<br />

increasingly opting to upgrade<br />

sustainability credentials to address<br />

obsolescence issues with older buildings,<br />

rents have been on the march.<br />

The flight-to-quality trend is not a<br />

flight <strong>of</strong> fancy – it’s tangibly altering<br />

the dynamics <strong>of</strong> the occupier market<br />

and resulting in historically-low<br />

vacancies and significant rental<br />

growth across prime properties.<br />

Rising interest rates and tightening<br />

credit lines have contributed<br />

to dampened yields and lower sales<br />

transaction numbers across most markets,<br />

and with economists reluctant to<br />

definitively state when inflation and<br />

long-term interest rates could reach<br />

their peak, uncertainty still hovers for<br />

property owners.<br />

Aggressive moves by the Reserve<br />

Bank <strong>of</strong> New Zealand (RBNZ) have<br />

impacted the commercial and industrial<br />

construction outlook and confidence,<br />

with caution being exercised.<br />

Rider Levett Bucknall’s (RLB)<br />

latest Forecast Report 103 forecasts<br />

a slowing down <strong>of</strong> new activity and<br />

notes a decline in architects’ forward<br />

work on commercial projects comparable<br />

to that at Covid-19 onset and the<br />

GFC.<br />

RLB’s construction cost indices<br />

show significant increases for developers<br />

in the last three years, and when<br />

coupled with substantially higher<br />

thresholds <strong>of</strong> design, resilience, sustainability<br />

and building code compliance,<br />

it is inevitable that higher rents<br />

will be needed to make new developments<br />

feasible.<br />

New builds are establishing fresh<br />

rental benchmarks and landlords are<br />

looking for leases with mechanisms<br />

to regularly reset rents to market<br />

(rather than long periods with fixed<br />

increases) so they can optimise rental<br />

streams in a growth market.<br />

Meanwhile, tenants need to get<br />

sound advice about rental budgets –<br />

particularly if they have an upcoming<br />

market rent review.<br />

NZX-listed Precinct Properties<br />

documented in its 2022 annual report<br />

that its well-performing portfolio<br />

reflects the quality <strong>of</strong> occupiers, an<br />

overall portfolio WALT <strong>of</strong> 7.1 years<br />

and occupancy levels <strong>of</strong> 99 percent.<br />

The report said rentals achieved<br />

on new <strong>of</strong>fice leases were on average<br />

4.8 percent higher than valuation<br />

rents at 30 June 2021 and, including<br />

structured rent reviews, Precinct<br />

completed a total <strong>of</strong> 183,973sqm <strong>of</strong><br />

reviews at a 3.0 percent premium to<br />

previous contract rental.<br />

Further, there were 17,441sqm <strong>of</strong><br />

market rent reviews settled at a 5.9<br />

percent premium to 30 June 2021 valuation<br />

rentals.<br />

Dire lack <strong>of</strong> new supply around the<br />

country has seen vacancy rates plummet,<br />

prompting owners <strong>of</strong> existing<br />

and dated stock to unlock measures to<br />

improve building quality, resilience<br />

and efficiencies to counteract rising<br />

interest rates and protect asset values.<br />

Value-add mechanisms include<br />

creating more efficient yet reduced<br />

space footprints at a higher per square<br />

metre rental rate, providing quality<br />

end-<strong>of</strong>-trip facilities, leveraging<br />

shared meeting and event space, pursuing<br />

higher sustainability credentials<br />

via NABERSNZ or Green Star ratings,<br />

and providing responsive property<br />

management services.<br />

David McGuinness, managing<br />

director (development), Willis Bond<br />

says delivering highly resilient, sustainable<br />

workplaces with quality<br />

amenity like its current projects at 110<br />

Jervois Quay in Wellington’s CBD<br />

and Blue Mountains Campus, Upper<br />

Hutt, comes at a cost but rent is only<br />

one part <strong>of</strong> the equation for occupiers.<br />

“As the return to the <strong>of</strong>fice continues,<br />

these buildings have intrinsic<br />

value for occupiers in helping drive<br />

higher productivity, team synergy,<br />

and business continuity.<br />

“They also attract talent and<br />

deliver lower occupancy costs over<br />

time through more efficient, futurepro<strong>of</strong>ed<br />

buildings – it’s what businesses<br />

need and that’s why we are<br />

building them.<br />

“Bell Gully is a great example <strong>of</strong><br />

a business that has reset its staff and<br />

client experience in its new base-isolated<br />

building on Wellington’s waterfront<br />

– we understand staff love it<br />

and attendance at the <strong>of</strong>fice is very<br />

high, which is a pointer for other<br />

businesses.”<br />

While there is a rental per square<br />

metre differential between premium<br />

A-grade space in the CBD versus<br />

regional locations, mainly due to land<br />

value, McGuinness says it’s not as<br />

much as people think and a focus on<br />

square metre rates doesn’t tell the full<br />

story.<br />

“We are building New Zealand’s<br />

largest mass timber <strong>of</strong>fice building in<br />

Tauranga and the cost <strong>of</strong> this would<br />

be virtually the same in any New Zealand<br />

location putting aside land value<br />

and site specifics.<br />

“The nature and quality <strong>of</strong> the<br />

building are the paramount drivers <strong>of</strong><br />

rents and smart businesses focus on<br />

the efficiency <strong>of</strong> the space, potential<br />

for staff engagement and productivity,<br />

and how the premises connect with<br />

their customers and surroundings.”<br />

Auckland<br />

<strong>Bay</strong>leys Auckland leasing specialist<br />

Ben Wallace says given the depth <strong>of</strong><br />

the corporate market and the limited<br />

supply <strong>of</strong> quality properties in desirable<br />

locations, rental rates for prime<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>May</strong> <strong>2023</strong> BAY OF PLENTY BUSINESS NEWS 13<br />

<strong>of</strong>fice space are holding firm, and<br />

in some instances, still on the rise.<br />

“Occupiers <strong>of</strong>ten mistakenly<br />

assume that options will be plentiful<br />

when looking to relocate<br />

so there is <strong>of</strong>ten some educating<br />

required in the early stages <strong>of</strong> that<br />

process,” he says.<br />

“Assuming they are paying a<br />

market-driven rent at the time, and<br />

want to remain in a specific geographic<br />

location whilst also maintaining<br />

a similar level <strong>of</strong> quality,<br />

it can be challenging to present<br />

alternative solutions at more competitive<br />

rental rates than they are<br />

currently paying.<br />

“There is definitely a disconnect<br />

between the current levels <strong>of</strong> inflation<br />

and the level <strong>of</strong> rental growth<br />

occupiers are willing to commit to,<br />

but more than ever, occupiers are<br />

wanting certainty.”<br />

Wallace says that the majority<br />

<strong>of</strong> deals they are concluding<br />

are with fixed annual increases <strong>of</strong><br />

around three percent per annum,<br />

with reviews to market at renewal<br />

time.<br />

“Most landlords accept that<br />

although inflation is running high,<br />

a fixed annual increase <strong>of</strong> three<br />

percent compounded over a number<br />

<strong>of</strong> years is likely to average out<br />

over time.<br />

“Occupiers also want to partner<br />

and work collaboratively with proactive<br />

landlords for mutually-beneficial<br />

outcomes for all parties”.<br />

Tauranga<br />

Pr<strong>of</strong>essional tenants are happy to<br />

pay a substantial premium over<br />

current market A-grade <strong>of</strong>fice<br />

leasing rates for top quality newbuild<br />

<strong>of</strong>fice space in the Tauranga<br />

CBD as there’s such a shortage <strong>of</strong><br />

it, according to <strong>Bay</strong>leys Tauranga<br />

commercial sales manager Mark<br />

Walton.<br />

“The market is extremely tight<br />

so there’s significant competition<br />

for high-quality sustainability-focused<br />

space that is well-located for<br />

private and public transport, and<br />

<strong>of</strong>fers modern, efficient workspace<br />

with ample amenity to encourage<br />

workers back to the <strong>of</strong>fice.<br />

“Tenants are prepared and willing<br />

to pay what developers require<br />

to make these new <strong>of</strong>fice developments<br />

viable, however, there<br />

is resistance from occupiers to<br />

commit to CPI-linked rents, with<br />

a preference for fixed increases<br />

or, at a minimum, capped rental<br />

increases to allow for budgeting.”<br />

Hamilton<br />

In Hamilton, <strong>Bay</strong>leys Waikato<br />

commercial manager David Cashmore<br />

says lease negotiations can<br />

be protracted as tenants and landlords<br />

bring different subtleties to<br />

the table.<br />

“Tenants want fixed rental<br />

increases to provide some certainty,<br />

while landlords prefer CPIlinked<br />

rents to accommodate rising<br />

costs – but we can generally get<br />

consensus to complete a deal.<br />

“A significant portion <strong>of</strong> the<br />

tenant market is prioritising quality<br />

<strong>of</strong> space and staff productivity over<br />

rental rates, but obviously others<br />

are more conscious <strong>of</strong> outgoings<br />

and business bottom lines.”<br />

Rhys Harvey, development<br />

director at leading Waikato construction<br />

firm Foster Group Limited,<br />

says to date, he’s not noted a<br />

tangible disconnect between landlords<br />

and occupiers over rental<br />

rates on new-build property, but he<br />

can see it coming.<br />

“With developers and newbuild<br />

landlords now dealing with<br />

rising yields and the escalating cost<br />

<strong>of</strong> capital, building and regulatory<br />

costs, rents will have to increase to<br />

get new builds across the line.<br />

“There’s little negotiation flexibility<br />

or risk tolerance on rents and<br />

most <strong>of</strong> the tough conversations are<br />

around rent review ratchets, and<br />

cap and collars.<br />

“However, most aspirational<br />

occupier groups know that the<br />

tight market means limited space<br />

options and their lens is generally<br />

more than just rent – it’s also retention<br />

and attraction <strong>of</strong> talent, plus<br />

the efficiencies and productivity<br />

modern <strong>of</strong>fice space allows.”<br />

Oceanography researcher<br />

recognised for making<br />

waves around the world<br />

With a sea captain for a<br />

grandfather and childhood<br />

summers spent<br />

around the sea, it’s no surprise that<br />

Pr<strong>of</strong>essor Karin Bryan was drawn<br />

to studying the deep blue. A passion<br />

for math and physics led the<br />

University <strong>of</strong> Waikato Pr<strong>of</strong>essor to<br />

physical oceanography.<br />

Pr<strong>of</strong>essor Bryan is one <strong>of</strong> the<br />

new Royal Society Te Apārangi<br />

Ngā Ahurei a Te Apārangi Fellows.<br />

She has been honoured for her<br />

research on estuarine processes,<br />

coastal morphodynamics, and climate-driven<br />

variability in waves,<br />

which has gained international recognition<br />

over a period <strong>of</strong> more than<br />

20 years.<br />

“I like to think it is the most<br />

challenging because <strong>of</strong> the complexity<br />

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

immediate impact on coastal communities,<br />

and in turn, our impact on<br />

coastal ecosystems.”<br />

Pr<strong>of</strong>essor Bryan says climate<br />

change is a game changer for an<br />

already complex discipline.<br />

“It is really hard to provide useful<br />

information in such an uncertain<br />

environment. The focus was<br />

first on the slow onset hazard <strong>of</strong> sea<br />

level rise, but these massive events<br />

<strong>of</strong> the last few months are making<br />

it even harder to visualise the<br />

future. There is no time to perfect a<br />

theory or model anymore, we need<br />

to learn and improve really quickly<br />

to be able to help.<br />

The recognition that comes with<br />

the Fellowship also comes with a<br />

reminder for Pr<strong>of</strong>essor Bryan.<br />

“I think for my research it will<br />

remind me to focus on fewer but<br />

higher quality (and, most importantly,<br />

more useful) outcomes,” she<br />

says.<br />

It’s also a prompt to keep working<br />

with the next generation. As<br />

Dean <strong>of</strong> Te Mata Kairangi School<br />

<strong>of</strong> Graduate Research, Pr<strong>of</strong>essor<br />

Bryan is committed to demonstrating<br />

the value <strong>of</strong> graduate study<br />

in creating useful knowledge for<br />

society.<br />

“This year I want to focus on<br />

helping students get real value<br />

out <strong>of</strong> their university experience.<br />

It sounds corny, but to show that<br />

universities still have a place in<br />

creating useful knowledge for<br />

societies.”<br />

Her world-leading work in the<br />

University <strong>of</strong> Waikato Pr<strong>of</strong>essor Karin Bryan has<br />

been made a Royal Society Te Apārangi Ngā<br />

Ahurei a Te Apārangi Fellow. Photo/Supplied.<br />

oceanography <strong>of</strong> the coastal ocean<br />

and today’s announcement following<br />

the rigorous election process<br />

for Royal Society Fellows are testament<br />

to that value.<br />

Ngā Ahurei a Te Apārangi Fellows<br />

are recognised by the Royal<br />

Society Te Apārangi for their distinction<br />

in research and advancement<br />

<strong>of</strong> science, technology or the<br />

humanities. They are world leaders<br />

in their area <strong>of</strong> research and<br />

scholarship.<br />

THREE<br />

WATERS<br />

REFORM<br />

RESET<br />

BRINGS THE<br />

COMMUNITY<br />

BACK INTO<br />

THE PICTURE<br />

A move to give local<br />

communities a greater<br />

degree <strong>of</strong> influence over<br />

their water services is being<br />

welcomed in the Western<br />

<strong>Bay</strong>.<br />

Prime Minister Chris Hipkins<br />

Prime Minister Chris Hipkins<br />

and Local Government Minister<br />

Kieran McAnulty’s revamped<br />

and renamed ‘Affordable Water<br />

Reform’ is headlined by the originally<br />

proposed four ‘mega entities’ being<br />

scrapped, and 10 regional water infrastructure<br />

entities to be formed in their<br />

place.<br />

The 10 entities will be owned by<br />

local councils on behalf <strong>of</strong> the public,<br />

and entity borders based largely<br />

on existing regional areas – delivering<br />

Three Waters (freshwater, wastewater,<br />

and stormwater) services to<br />

households.<br />

It means the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> will<br />

have its own entity, covering Rotorua<br />

Lakes, Kawerau, Ōpōtiki, Tauranga<br />

City, Western <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> and<br />

Whakatāne.<br />

Each entity would be run by a<br />

pr<strong>of</strong>essional board, with members<br />

appointed on competency and skill.<br />

The 50/50 split <strong>of</strong> mana whenua<br />

and council representation remains<br />

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

<strong>May</strong>or James Denyer welcomes the<br />

reset on the Three Waters Reform as<br />

something which has the potential to<br />

create greater acceptance nationwide.<br />

“Having only seen the highlights<br />

this morning, I’m pleased the Government<br />

has listened to councils and the<br />

community. It’s clear these changes<br />

reflect some criticism <strong>of</strong> the original<br />

proposal and that the mega-entities<br />

would not be close enough to the communities<br />

they serve.<br />

“Providing every <strong>May</strong>or <strong>of</strong> every<br />

local authority with a seat at the table<br />

<strong>of</strong> their respective entity will guarantee<br />

the priorities <strong>of</strong> local communities<br />

are heard and make it easier to retain a<br />

local workforce.”<br />

While the legislation will be in<br />

place before this year’s election the<br />

new model won’t start delivering<br />

water services until 1 July 2026. The<br />

10 new regional entities have the<br />

option to begin before the 2026 date if<br />

they are ready.<br />

The reform was initially set down<br />

for a 1 July 2024 implementation<br />

under the four mega-entities after the<br />

Government made the reform mandatory<br />

for all councils in 2021.<br />

For more information on the<br />

Affordable Water Reform visit<br />

– www.westernbay.govt.nz/<br />

affordable-water-reform


14 BAY OF PLENTY BUSINESS NEWS <strong>May</strong> <strong>2023</strong><br />

Shared <strong>of</strong>fice provider Bad Company<br />

first in NZ to <strong>of</strong>fer franchise model<br />

Bad Company first opened its<br />

doors during the summer <strong>of</strong><br />

2017 in what is now a 300sqm<br />

light-filled space in the heart <strong>of</strong> Mount<br />

Maunganui.<br />

Even in 2017, before the whisper<br />

<strong>of</strong> a pandemic had been uttered Kiwis<br />

were turning towards greener pastures<br />

and greater work/life balance.<br />

Co-working spaces were already a<br />

trend in urban centres, but with many<br />

pr<strong>of</strong>essionals relocating to rural areas<br />

there was a dearth <strong>of</strong> shared <strong>of</strong>fice<br />

<strong>of</strong>ferings.<br />

Enter Bad Company founder Tori<br />

Taylor. Taylor began her mission to<br />

create a community focused workspace<br />

that <strong>of</strong>fered co-working and<br />

collaboration with other like-minded<br />

individuals, taking the isolation and<br />

disconnection out <strong>of</strong> the usual start-up,<br />

sole contractor and small business<br />

work environments.<br />

Moving to Mt Maunganui from<br />

Auckland in 2016, Taylor immediately<br />

noticed a gap in the market. For<br />

a community-minded town there were<br />

few options available to the independent<br />

businesspeople in the area. Part <strong>of</strong><br />

Taylor’s move out <strong>of</strong> New Zealand’s<br />

largest city was to prioritise her health<br />

and well-being, pr<strong>of</strong>essionally and<br />

personally.<br />

Taylor champions the work/life<br />

balance and believes it is this ethos that<br />

sets Bad Company apart, alongside the<br />

anti-urban approach. Bad Company’s<br />

model is targeted at the burgeoning<br />

rural locations, with no current plans<br />

to enter any <strong>of</strong> Aotearoa’s main cities.<br />

Taylor says, “We’re on a mission to<br />

create community focused workspaces<br />

that <strong>of</strong>fer co-working and collaboration<br />

with other like-minded characters,<br />

enhancing each other’s <strong>of</strong>fering<br />

and providing supportive creators.<br />

Afternoon banter and tunes are just<br />

an added bonus. We want people to<br />

feel welcome and included. Coming<br />

straight from the beach? Need to bring<br />

your pup or feel like channelling your<br />

inner DJ? It all happens at Bad Company.<br />

The vibe is very much ‘come as<br />

you are’, it’s relaxed.”<br />

Offering a variety <strong>of</strong> workstations<br />

to suit individual needs such as monitors<br />

for dual screens, knee chairs for<br />

those focused on core and spine health,<br />

Bad Company also has private call and<br />

meeting rooms available for more<br />

confidential requirements and client<br />

meetings.<br />

Bad Company Wānaka is now<br />

home to 16 desk spots, housing permanent<br />

and part-time businesses and is<br />

renowned as a small but mighty asset<br />

to the local business community. The<br />

bustling community welcomed the<br />

92m 2 addition with open arms.<br />

Now into its sixth year, the next<br />

evolution <strong>of</strong> the ‘destination workplace’<br />

company, introduces what is<br />

believed to be a first for New Zealand.<br />

A franchise model for the co-working<br />

space business.<br />

“Two minds bounce ideas, four<br />

create momentum and action, eight<br />

achieve ongoing change”, notes Taylor<br />

when talking about what inspired the<br />

new <strong>of</strong>fer.<br />

The opening <strong>of</strong> Bad Company<br />

Hawke’s <strong>Bay</strong> provides a welcome<br />

option, interim or permanent, for business<br />

owners in the hard-hit region, in<br />

an art deco building that was fortunate<br />

enough to not be impacted by the devastating<br />

floods that took place earlier<br />

this year.<br />

There was a setback in terms <strong>of</strong> the<br />

opening date: owner Belinda Williams<br />

held <strong>of</strong>f the refit for a week to ensure<br />

she could volunteer in the community<br />

during that time.<br />

A first-floor <strong>of</strong>fice space in the<br />

Hastings CBD, the high-stud character<br />

space is filled with natural light<br />

from stunning large windows. Two<br />

boardrooms and separated ‘private’<br />

<strong>of</strong>fice areas are also available as well<br />

as kitchen and amenities in line with<br />

Bad Company’s standard <strong>of</strong>fering<br />

across all its locations. The site is close<br />

to cafés and retail and adjacent to The<br />

Tribune development.<br />

Fellow co-working space business<br />

owner Matt Knight, founder <strong>of</strong> Shared<br />

Space which opened its doors in 2010,<br />

believes there is nothing better than<br />

sharing and thinks the franchise model<br />

may be the way forward for growth in<br />

the category.<br />

“It’s fantastic to see Bad Company<br />

achieve a successful franchise sale for<br />

their new location in Hawkes <strong>Bay</strong>.<br />

This is the first successful coworking<br />

franchise sale I’ve seen within NZ.<br />

I think this is a wonderful model for<br />

people wanting to set up a new space<br />

and it works well with the unique<br />

<strong>of</strong>fering Bad Company coworking<br />

spaces provide”.<br />

They cater to a hugely varied pool<br />

<strong>of</strong> pr<strong>of</strong>essionals including designers,<br />

developers, IP lawyers, e-commerce,<br />

sustainability experts, accountants,<br />

digital media mavens, marketing specialists,<br />

copywriters, holistic health<br />

specialists, town planners and VR<br />

creators.<br />

In a country built on SMEs, a<br />

rurally focused co-working company<br />

<strong>of</strong>fering a franchise-model could be<br />

just the answer to those looking to put<br />

down rural roots, yet also take their<br />

business to the next level thanks to a<br />

small company focused on collaboration<br />

and community.<br />

Scion innovation leads to flexible<br />

4D printing filament<br />

A colour-changing and flexible 4D printing filament<br />

developed by Scion scientists is set to benefit educators,<br />

industry and New Zealand’s fast-growing home-based<br />

3D printing community.<br />

The 4D printing filament<br />

changes colour with heat<br />

and can be used to create<br />

fun and flexible<br />

objects<br />

popular with<br />

children.<br />

The new filament, known as<br />

‘Morph’ at Scion, has hit the<br />

market following a successful<br />

research collaboration between Auckland<br />

filament manufacturer Imagin<br />

Plastics and Crown Research Institute<br />

Scion.<br />

3D printing enthusiasts will be able<br />

to use the filament to create fun and<br />

flexible objects, including bath toys,<br />

that change colour with heat. The<br />

product, with its special stimuli-responsive<br />

feature, is the only flexible<br />

filament <strong>of</strong> its kind in New Zealand.<br />

It’s expected to be popular among<br />

3D printing hobbyists, teachers, and<br />

spark commercial interest from the<br />

automation industry for its potential<br />

to support development <strong>of</strong> temperature-sensitive<br />

machine componentry.<br />

In the education space, Scion’s<br />

Morph development team scientist Dr<br />

Angelique Greene says the product<br />

can be used to teach students about<br />

the concept <strong>of</strong> 3D printing, with an<br />

added science component thanks to<br />

its flexibility and thermochromism.<br />

“There are other fun 4D printing<br />

filaments on the market, but they are<br />

typically rigid. We wanted to create<br />

a unique, flexible filament that had<br />

added functionality.<br />

“Morph is a flexible filament that<br />

is also thermochromic; so, when it<br />

senses a temperature change, like<br />

holding it in your hand for example, it<br />

changes colour from black to yellow.<br />

This is the first product that combines<br />

both properties.”<br />

The concept <strong>of</strong> 4D printing is<br />

similar to 3D, where both print three<br />

dimensional objects (using length,<br />

width and height), but 4D also features<br />

an added dimension which<br />

changes over time. In Morph’s case,<br />

its thermochromic properties means it<br />

changes colour with temperature.<br />

Morph is made from a flexible<br />

biodegradable polyester. During its<br />

development, Scion scientists successfully<br />

printed a number <strong>of</strong> objects,<br />

including phone cases, animals such<br />

as a gecko and octopus, as well<br />

as moveable objects like stretchy<br />

bracelets.<br />

Senior materials scientist Dr Robert<br />

Abbel says although it sounds<br />

self-evident for a 3D or 4D printing<br />

filament to actually print objects, it is<br />

not guaranteed.<br />

“Flexible materials are more difficult<br />

to print than stiff ones, so we are<br />

very happy that it performs so well.<br />

This opens up a space for creative<br />

product prototyping that has been<br />

inaccessible with existing products.”<br />

Greene adds New Zealand is home<br />

to a “hobbyist 3D printing army” that<br />

will be looking to experiment with the<br />

new material as well.<br />

“The true potential <strong>of</strong> Morph is in<br />

the hands <strong>of</strong> whoever holds it.”<br />

Work to commercialise the Morph<br />

4D printing filament gained impetus<br />

The Scion team that helped bring Morph to life (from left) Beatrix<br />

Theobald, Robert Abbel, Angelique Greene, Ben Davy and Rob Whitton.<br />

when Imagin Plastics picked up the<br />

concept after it was showcased at an<br />

event for Scion’s industry partners.<br />

This followed an in-house design<br />

pitch competition, Innovation Jumpstart,<br />

which Scion ran at the beginning<br />

<strong>of</strong> 2020 to help foster capability<br />

and market validation for developing<br />

technologies.<br />

Together, Scion and Imagin Plastics<br />

worked on finalising the raw<br />

feedstock, before it was then turned<br />

into a printable filament.<br />

Ben Blakley, sales and technical<br />

manager at Imagin Plastics, says what<br />

brought the two teams together was<br />

the exciting new applications for 4D<br />

printing filament.<br />

“We’ve worked with Scion on<br />

projects for a number <strong>of</strong> years in different<br />

capacities and the development<br />

potential <strong>of</strong> this project was two-fold<br />

for us – building the relationship further<br />

and bringing a 4D printing filament<br />

into the market.<br />

“Initially we were interested in<br />

having a printing material we could<br />

see being used in the education sector,<br />

like high schools and universities,<br />

that has a fourth dimension to it. It<br />

opens up opportunities for students<br />

to use it for their own research and<br />

development.”<br />

Blakley says as well as education,<br />

Morph has potential for use in the<br />

likes <strong>of</strong> the automation industry.<br />

“Machine componentry in the<br />

packaging and food processing industries,<br />

for example, could use it to<br />

detect temperature change, and even<br />

program artificial intelligence to recognise<br />

it.”<br />

Now Morph is on the market,<br />

Greene says Scion is also using it for<br />

community education.<br />

“Our role as a Crown Research<br />

Institute is to support industry, but it’s<br />

also about supporting the communities<br />

in which we operate. We can use<br />

Morph to do that.”<br />

During the school holidays, Scion<br />

is holding a 4D printing interactive<br />

workshop on Wednesday 12 April at<br />

Te Aka Mauri | Rotorua Library to<br />

introduce young people aged 11-plus<br />

to the new filament and the world <strong>of</strong><br />

3D printing. People can register for<br />

the workshop on the library’s website.<br />

Morph is the second printing<br />

filament that Scion scientists have<br />

developed commercially in partnership<br />

with Imagin Plastics, the first<br />

being a wood-filled PLA 3D printing<br />

filament.<br />

As a partner, Blakely says Scion’s<br />

research capabilities create real value.<br />

“There’s no rulebook on how we<br />

work together; from our perspective<br />

everything’s possible.”<br />

The Morph filament is available<br />

through Imagin Plastic’s website:<br />

www.imaginplastics.co.nz/


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

The ANZAC spirit is alive and well<br />

– after 1pm<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 />

I<br />

like to write this column<br />

ahead <strong>of</strong> time, but rarely do.<br />

Today, however, it’s<br />

ANZAC Day as I write so I’m<br />

ahead <strong>of</strong> schedule. Two questions<br />

are on my mind, both as a<br />

result <strong>of</strong> today being ANZAC<br />

Day.<br />

The first question is a<br />

broadly sociological one: why<br />

has there been a resurgence <strong>of</strong><br />

patriotic fervour around the<br />

celebration <strong>of</strong> ANZAC Day in<br />

the last few years?<br />

The second question is a<br />

far more mundane one: what’s<br />

open today (and when)?<br />

The answer to one <strong>of</strong> these<br />

questions fills me with hope.<br />

The answer to the other<br />

simply makes my head hurt.<br />

Let’s start with the philosophical<br />

one.<br />

The world we live in today<br />

seems to be fraught with tribalism<br />

– a, ‘if you’re not with us,<br />

you’re against us; if your ideas<br />

differ from our ideas, you’re<br />

cancelled (and BTW we’re<br />

storming parliament)’, kind <strong>of</strong><br />

world.<br />

So how is it that in this time<br />

<strong>of</strong> anti-liberal, anti-fascist,<br />

anti-trans, anti-cis, anti-mining,<br />

anti-nuclear, anti-everything<br />

sentiment, virtually<br />

everyone in this country has<br />

got behind the celebration <strong>of</strong><br />

our forebears the ANZACs.<br />

Despite our 21st century<br />

lens identifying and acknowledging<br />

that the ANZAC effort<br />

so <strong>of</strong>ten discriminated against<br />

women, pilloried pacifists<br />

and conscientious objectors,<br />

treated heroic Māori and Pasifika<br />

soldiers miserably, and<br />

was in many instances an<br />

abject lesson in poor planning<br />

and arrogant colonial butchery,<br />

we have all conspired to<br />

treat the ANZAC celebration<br />

with upmost reverence and its<br />

protagonists with increasing<br />

adulation.<br />

I am pleased we have a<br />

common cause that unites all<br />

<strong>of</strong> us, be we male or female,<br />

young or old, Māori or<br />

Pakeha: a respect for the sacrifice<br />

<strong>of</strong> others.<br />

But why has the annual<br />

Kiwi pilgrimage to Gallipoli,<br />

or attendance at the nation’s<br />

ANZAC dawn parades<br />

recently become so important<br />

to our people?<br />

I think it may be our human<br />

response to the fractured<br />

social structure we navigate<br />

daily. Our peer groups, our<br />

ethnicities, our genders and<br />

our social-media groups constantly<br />

drive wedges between<br />

‘us’ and others who are ‘not<br />

us’; but deep down maybe we<br />

all want the chance to identify<br />

as a collective ‘us’.<br />

Perhaps as we become<br />

more disparate, our desire for<br />

unity actually becomes stronger.<br />

<strong>May</strong>be that is why we<br />

are seeing the celebration <strong>of</strong><br />

ANZAC Day become more<br />

pervasive every year – maybe<br />

its because we need it more.<br />

Believe it or not, that was<br />

the easier <strong>of</strong> the two questions<br />

to answer.<br />

The second question:<br />

“What’s open and when?” …<br />

now that’s a real tester!<br />

Let me see if I can clarify<br />

it for you.<br />

ANZAC Day is a public<br />

holiday, and as such you will<br />

almost certainly be required<br />

to pay a 15% surcharge at any<br />

hospitality venue. But they<br />

won’t necessarily be open<br />

because most aren’t sure if<br />

they’re allowed to open, or<br />

some may simply choose not<br />

to open.<br />

There’s no surcharge at the<br />

shops, even though they’ve<br />

also got to pay staff extra for<br />

working on a holiday. Unless<br />

they don’t. And they might<br />

not be open. Or they might.<br />

Depending on whether they’re<br />

in a tourist area.<br />

It’s okay, you don’t have to<br />

buy a meal if you’re having a<br />

drink like you do at Easter …<br />

well not all Easter … just Easter<br />

Sunday, or Good Friday, …<br />

actually, no, just Easter Sunday<br />

I think.<br />

There are <strong>of</strong> course different<br />

rules in different locations,<br />

but you won’t really know<br />

which ones are which because<br />

those rules change <strong>of</strong>ten. Some<br />

councils give dispensation in<br />

some areas for some holiday<br />

trading.<br />

Now just remember that the<br />

opening rules only apply up<br />

to 1pm on ANZAC Day, but<br />

you’ve gotta pay the surcharge<br />

even after 1pm.<br />

Garden centres are different<br />

(depending on where they are I<br />

think), and pharmacies are not<br />

restricted. Some garden centres<br />

will <strong>of</strong> course choose to<br />

open even when they are technically<br />

not allowed to by law.<br />

I’m not sure if the cafés in<br />

those garden centres that do<br />

open illegally on public holidays<br />

are allowed to add the<br />

surcharge – I guess that’s at<br />

their discretion?<br />

Unfortunately, one additional<br />

complication is making<br />

the holiday trading landscape<br />

a little opaque at present –<br />

many hospitality venues are<br />

having trouble finding staff,<br />

so some <strong>of</strong> them are choosing<br />

not to open after 1pm due<br />

to the staffing problems: the<br />

upside – they won’t be adding<br />

the 15% surcharge ‘cos they’re<br />

not open.<br />

I hope that helps clarify the<br />

holiday trading situation. I was<br />

told it’s really quite difficult for<br />

overseas visitors to understand<br />

– thank God we’re locals aye?<br />

Salary rises in NZ<br />

over the past year<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 />

The past two years have seen a significant rise in salaries throughout New Zealand and no sector has been untouched. Whilst this has been<br />

welcomed by the workforce, most employers have found themselves struggling to keep up with the significant and continual increases the market<br />

has demanded. With low unemployment, low immigration numbers, and a tight employment market, it is still very much an employee-led market.<br />

According to data from<br />

Statistics New Zealand,<br />

median weekly earnings<br />

from wages and salaries rose<br />

by 8.8 percent to $1,189 in the<br />

year to the June 2022 quarter.<br />

The 8.8 percent annual<br />

increase in median weekly<br />

earnings from wages and salaries<br />

was the largest annual<br />

increase since the series began<br />

in 1998. My sense is that they<br />

have risen again since then.<br />

The rise in salaries is due<br />

to a number <strong>of</strong> factors, including<br />

a growing economy, low<br />

unemployment, and government<br />

policies aimed at improving<br />

living standards for New<br />

Zealanders.<br />

One <strong>of</strong> the primary reasons<br />

for the rise in salaries is<br />

the strong economic growth<br />

that New Zealand experienced<br />

post-Covid. Despite the challenges<br />

posed by the Covid-19<br />

pandemic, the country’s economy<br />

remained resilient.<br />

The growth was driven by<br />

a number <strong>of</strong> factors, including<br />

a robust construction sector,<br />

strong domestic demand, and<br />

the government’s support measures<br />

such as the wage subsidy<br />

program. Simply put, the<br />

demand has been high and the<br />

Employers are looking at more<br />

creative ways to ‘add-value’ to<br />

packages without necessarily<br />

paying outside <strong>of</strong> the base<br />

salary range.”<br />

supply low.<br />

With fewer jobseekers than<br />

available jobs, workers are<br />

put into a stronger bargaining<br />

position when it comes to<br />

negotiating salaries and as a<br />

result employers are competing<br />

for talent, leading to higher<br />

salaries to attract and retain<br />

employees.<br />

Government policies aimed<br />

at improving living standards<br />

for New Zealanders have also<br />

played a role in the rise in<br />

salaries.<br />

For most employers, at<br />

some point this has been problematic.<br />

Keeping up with the<br />

steep rise in inflation which<br />

has been reflected in salaries,<br />

to losing staff to competitors<br />

who are paying more, getting<br />

into a bidding war when making<br />

<strong>of</strong>fers or the problem <strong>of</strong> pay<br />

relativity within a workforce.<br />

Employers are looking at<br />

more creative ways to ‘addvalue’<br />

to packages without<br />

necessarily paying outside <strong>of</strong><br />

the base salary range.<br />

With cost <strong>of</strong> living at an<br />

all-time high, there is no doubt<br />

that while cash in the hand is<br />

what employees are needing, a<br />

benefits package can sweeten<br />

the <strong>of</strong>fer significantly.<br />

This is referred to as a total<br />

remuneration approach and<br />

refers to not only the base salary<br />

an employee receives but<br />

also takes into account other<br />

forms <strong>of</strong> compensation such as<br />

bonuses, commissions, allowances<br />

and benefits.<br />

For example, benefits may<br />

include, a company car with<br />

full use, health insurances and<br />

paid time <strong>of</strong>f.<br />

A total remuneration package<br />

is designed to provide a<br />

comprehensive compensation<br />

structure that recognises the<br />

value <strong>of</strong> the employee’s contribution<br />

to the organisation.<br />

It is <strong>of</strong>ten used by employers<br />

as a way to attract and<br />

retain talented employees by<br />

<strong>of</strong>fering a competitive and<br />

attractive compensation package<br />

that goes beyond just a<br />

basic salary or wage.<br />

Total remuneration packages<br />

can be structured in different<br />

ways, depending on<br />

the needs and goals <strong>of</strong> the<br />

employer and the preferences<br />

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

With the commentary<br />

around the looming economic<br />

downturn, my feeling is that<br />

we will see some stabilisation<br />

in the employment market.<br />

However, as a nation we are<br />

still have a low level <strong>of</strong> immigration<br />

and while unemployment<br />

may rise in the months to<br />

come, I think we are still going<br />

to experience a candidate short<br />

market in the foreseeable<br />

future.

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