March 2024 - Bay of Plenty Business News

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4 BAY OF PLENTY BUSINESS NEWS March 2024 CONTACT INFORMATION PUBLISHER Alan Neben, Ph: 021 733 536 Email: alan@bopbusinessnews.co.nz EDITORIAL Alan Neben, Ph: 021 733 536 Email: editor@bopbusinessnews.co.nz PRODUCTION – Copy/Proofs/Graphic Design Times Media – Clare McGillivray Email: clare@times.co.nz ADVERTISING Pete Wales, Mob: 022 495 9248 Email: pete@bopbusinessnews.co.nz ELECTRONIC FORWARDING EDITORIAL News releases/Photos/Letters: editor@bopbusinessnews.co.nz GENERAL ENQUIRIES info@bopbusinessnews.co.nz Bay of Plenty Business News has a circulation of 8000, distributed throughout Bay of Plenty between Waihi and Opotiki including Rotorua and Taupo, and to a subscription base. Bay of Plenty Business Publications 309/424 Maunganui Rd, Mt Maunganui, 3116 Bay of Plenty Business Publications specialises in business publishing, advertising, design, print and electronic media services. www.bopbusinessnews.co.nz In case you missed last month’s edition Scan to subscribe > THE PORTER REPORT ‘How is the air up there?’ (1) > By DAVID PORTER Entrepreneurial Texasbased space company Intuitive Machines is basking in the glory of having created and managed the first American lunar module since 1972 to land on the moon. They acted as a contractor to NASA. And IM’s stock price has soared. The landing represents a vivid example of the US government’s attempt to privatise and reduce some of the enormous cost of space exploration. The module is reportedly beginning to send reports back to Earth. As I have commented before in this column, our visible space is becoming crowded. As a result of the perfectly understandable desire of many to explore and understand the universe, the space that immediately surrounds us is becoming increasingly cluttered. Leaving to one side the aspirations of various earlier exploratory expeditions David Porter to the moon and to deeper space, we face a huge longterm problem. Our relentless increase in the use of GPS, the internet and mobile phones has resulted in a deluge of satellites circling the Earth, as well as thousands of orbiting fragments. Currently there are reportedly nearly 7,000 satellites within a few hundred miles of Earth, a number that reportedly could grow to several hundred thousand by 2027. As space scientist Chris Impey commented in a recent online article on Ars Technica, “space junk is on the rise, and no one is in charge A monthly update on the business world from leading writer David Porter of cleaning it up”. He was writing in an article republished in The Conversation. Recently in August 2023, Russia’s Luna-25 probe crashed into the Moon’s surface, while India’s Chandrayaan-3 mission successfully landed. “With more countries landing on the Moon, people back on Earth will have to think about what happens to all the landers, waste, and miscellaneous debris left on the lunar surface and in orbit,” wrote Impey. “Like many other space experts, I’m concerned about the lack of governance around space debris.” The debris includes nearly 100 bags of human waste. Humans have also left a lot of other junk on the moon, including rocket boosters from more than 50 crash landings, plus everything from feathers to golf balls. Meanwhile, Earth’s orbit apparently includes broken spacecraft and sundry pieces of debris dropped by astronauts. And the fragments are fast-moving, many times quicker and more potentially lethal than a bullet. However, there is one potentially brighter thought (depending on how you feel about the existence or otherwise of an afterlife, or cemeteries). At least two companies are offering “cheap” options to blast your loved one’s ashes into space and secure a repository for them on the Moon. Compared to the reported cost of some American funerals, I suppose they could be considered cheap. The waiting list is apparently now open. The cremated remains of more than 450 people have reportedly been blasted into space since Star Trek creator Gene Roddenberry paved the way in 1992. But apparently, almost every tiny cache of ashes has come back down to Earth or been burned up on re-entry, according to news reports. Hence, presumably, the enthusiasm of private companies to offer a promised site of eternal rest on the Moon. 1. Songwriters: Steve Duboff, Artie Kornfeld
March 2024 BAY OF PLENTY BUSINESS NEWS 5 Showcasing Kiwi cleantech innovation to Silicon Valley Twelve Kiwi ventures are a step closer to securing partnerships and a slice of around NZ$80 billion invested every year in cleantech startups after returning from Cleantech Trek USA. The globally ambitious Kiwi cleantech ventures connected with corporates and investors at networking events in Silicon Valley and at the 2024 Cleantech Forum North America, in San Diego, as part of a New Zealand Cleantech Mission led by Callaghan Innovation in January. Cleantech Mission Lead Phil Anderson says the ventures, at various stages from pre-revenue to growth, are developing solutions to global challenges in areas like renewable energy, clean water, wasteto-value, carbon capture, fusion and carbon-free concrete. “With the next wave of unicorns – start-ups valued at $1billion – likely to include plenty of companies addressing global issues like climate change and environmental degradation, there’s a huge economic opportunity for our globally focused Kiwi cleantech startups. “Aotearoa New Zealand has a rich history of developing and piloting innovation before scaling offshore. “With success stories including the likes of carbon recycling trailblazer Lanzatech, and the Kiwi cleantech founders who have attracted investment, including from the likes of IKEA and Khosla Ventures, we have some tangible momentum to lean into. “At the New Zealand pitch and networking sessions it was clear that the corporates and investors gathered were impressed with the quality of the Kiwi innovators involved, and that this group of startups is, like those who have gone before, positioned for global acceleration. Phil Anderson says while the economic opportunity is great there are still challenges to overcome before more Kiwi > Aotearoa New Zealand has a rich history of developing and piloting innovation before scaling offshore. With success stories including the likes of carbon recycling trailblazer Lanzatech, and the Kiwi cleantech founders who have attracted investment, including from the likes of IKEA and Khosla Ventures, we have some tangible momentum to lean into.” – PHIL ANDERSON cleantech startups can succeed in global markets. “We have world-class people and technology but in many cases we just don’t have the market size or growth capital needed for our cleantech startups to reach their potential in global markets. That’s why it’s vital for founders to seek out international connections. “For US-based entities it’s much easier to partner with or invest in local technologies and talent. They need to see something very special and believe strongly in a founding team before wanting to work with a Kiwi cleantech venture. Phil Anderson says having a number of capable and passionate female founders there was a highlight, as was supporting ventures from across the motu, including those from Auckland, Tauranga, Rotorua, Taupo, Wellington, Christchurch and Southland. “Having representation from our local deep tech venture capital funds Outset Ventures, Pacific Channel and Quidnet Ventures showed offshore investors the potential for strong local VC partnerships,” he says. Nilo CEO Glen Willoughby says there was, “huge value for us because we have just opened our series A capital raise. We met with all the strategic investors we wanted to connect with and others we weren’t aware of as well. We also had some excellent strategic conversations at the Stanford Doerr School of Sustainability and with US-based Kiwi cleantech founders.” Bspkl CEO Christina Houlihan says, “The journey in the US has been nothing short of amazing, providing valuable connections with inspiring individuals and uncovering insightful stories. The wealth of knowledge gained about navigating investment pitches in the USA has been invaluable. I’m grateful for the opportunities and excited about what lies ahead.” Cetogenix CEO Trevor Stuthridge says the Cleantech Trek was “an incredibly valuable enabler for international outreach and ecosystem engagement. Cetogenix was privileged to participate and proud to be in such inspiring company.” New Zealand Climate Tech For the World, a Cleantech Group report commissioned by Callaghan Innovation, found that New Zealand cleantech innovators raised 95% less investment than those in small advanced economies on average between 2011 and 2021. Recent data showing a big increase in New Zealand cleantech investment in 2023, with venture and growth investment worth over $NZ390 million compared to around NZ$80 million in 2022, shows the sector is heading in the right direction, says Phil Anderson. New Zealand Climate Tech For the World recommended that this country take a co-ordinated approach to supporting cleantech innovators with global ambitions. “Cleantech Trek USA is an example of efficient and aligned collaboration from across Aotearoa New Zealand’s agencies to support participating ventures. “Building the profile of the New Zealand cleantech startup ecosystem is a marathon, not a sprint. We look forward to working with our cleantech ventures and our partners going forward,” says Phil Anderson. NEW RATE WILL OVERTAX 89% OF TRUSTS New data from Inland Revenue has revealed that incoming legislation to tax all trusts at the top 39% tax rate will result in 89% of all trusts being overtaxed. Appearing at the Parliamentary Finance and Expenditure Committee (FEC) this morning, Chartered Accountants Australia and New Zealand (CA ANZ) Tax Leader John Cuthbertson FCA spoke to new information obtained through an Official Information Request, the disproportionate effect on thousands of small trusts, and CA ANZ’s proposed solution. “The proposed 39% rate is aimed at the 11% of trusts that earned 81% of the income, and in most cases that’s entirely fair. But it’s a sledgehammer that will have significant collateral damage. Based on Inland Revenue’s numbers, the remaining 89% of trusts will be overtaxed.” “Our proposal for a two-tier tax structure with a $100,000 tax cliff is pragmatic, and is more likely to be acceptable to Government, given a reduced fiscal cost. Trusts under that threshold would be taxed at 33%. Trusts with taxable income over $100,000 would have the whole amount taxed at the top 39% rate.” “The benefit of this approach is that it mitigates taxation overreach for 83% of trusts, reduces the need for multiple exemptions, provides certainty and simplicity and minimises compliance costs – all key components of good tax design.” Notably, the proposal features a tax cliff, where every dollar of income is subject to tax at the higher rate if the threshold is breached. This differs from a marginal rate structure, where only the additional income above the threshold is taxed at a higher rate. Implementing a tax cliff at $100,000 would help alleviate concerns about gamesmanship, such as the potential for multiple trusts to be formed to take advance of the proposal, as the costs to set up and administer multiple trusts would outweigh the benefits. “It should be understood that trusts are formed for a variety of reasons including asset protection, business continuity and succession, privacy and confidentiality, providing for the welfare of beneficiaries, charitable giving and intergenerational wealth transfer.” “The two-tier proposal would still enable the top tier of trusts to be taxed at 39%, while allowing for targeted exclusions to reduce this rate where appropriate.”
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March 2024 - Bay of Plenty Business News

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