the one proposition

Transcription

the one proposition

INSPIRING BUSINESS IN HAWKE'S BAY
AUGUST – NOVEMBER 2015
THE
THE ONE PROPOSITION
HAWKE’S BAY GO GETTERS
Survival of the fittest in our CBDs
Business Hub – a look inside
Pro Primary – growing organically
Come to the Warmth …
QUEENSLAND OPPORTUNITES
ARE KNOCKING!!
Brisbane Serviced
Apartment Business
Discovery Coast
Management Rights
> Quest franchise
> Leasehold - 15 years
> 100m from Westfield
> 48 apartments
> Conference facility
> Rated No.1 TripAdvisor
> 78 4.5 star apartments
> Solid repeat business
> Experienced staff
> Financially sound
$1,560,000
$1,940,000
Surfers Paradise
Management Rights
Mooloolaba Magic
Management Rights
> 33 holiday apartments
> Prime location
> Minimal workload
> 24 years on agreements
> Phenomenal ROI
> Close to the beach
> long agreements
> 2 bed managers unit
> Only 10 years old
> Stunning fit out
$1,050,000
$2,280,481
$550K Net Gold Coast
Management Rights
Sunshine Coast
Management Rights
> 42 holiday apartments
> On stunning Broadwater
> Ticks all boxes
> Business only price valuation on unit pending
> Great first time complex
> long agreements
> 3 bed residence
> Minimal workload
> Immaculate complex
$3,350,000
$990,000
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Rent Roll on the GC
Mooloolaba
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> 48 unit complex
> 43 house rent roll
> Huge managers unit with
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CONTENTS
INSPIRING BUSINESS IN HAWKE'S BAY
AUGUST – NOVEMBER 2015
THE
8-11
PRO FEATURES
8-11
12-13
14-15
16-17
20-21
24-27
Survival of the fittest in the CBD
Merino business goes global
Ian Crooks, success in the sun
International students big business in the Bay
Te Awa School gets tech savvy
Business Hub – all together under one roof
THE ONE PROPOSITION
HAWKE’S BAY GO GETTERS
Survival of the Fittest in our CBDs
Business Hub – a look inside
Pro Primary: Growing organically
11-13
PRO PRIMARY
Cover photo by Alphapix
30-31 Dairy Goats – a new industry for HB
32-35 Organically growing businesses
PRO EXPERTS
40-41
42
43
44
45
46
47
48
Pro Finance by Tobias Taylor
Pro RMA by Cameron Drury
Pro IT by Wray Wilson
Pro Education by EIT
Pro HR by Kimberly McKay
Pro Legal by Edward Bostock
Pro Property by Paul Harvey
Pro Business by Cedric Knowles
24-27
PRO REGULARS
4-5
7
Pro HB – What’s happening in the Bay
Pro Q & A with Mark Aspden
32-35
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AUGUST - NOVEMBER 2015
THE
1
EDITORIAL
The End is Nigh
By the time the next issue
of The Profit is out, we
will know the outcome
of the referendum on the
future council makeup in
Hawke’s Bay.
At this stage we know that it
will either be five or one.
I haven’t seen too much
evidence of examples of how
life will be on the other side of
amalgamation but I’m going
to give it a go and highlight
some of the improvements
we are likely to see.
Improved council approval
processes
Builders and other tradesman
as well as property developers
will see consistency in
planning, by having one
planning process for the
entire region. It won’t matter
whether you are building a
home or commercial building
in Hastings, Napier or Wairoa,
you will fill out the same
consent application form to
the same authority.
One economic
development strategy –
implemented by one entity
Editor
Damon Harvey
[email protected]
Currently all five councils
have their own economic
development strategy, its own
resources (people) and three
of the five also fund Business
Hawke’s Bay. The councils
have be known to run off with
their own initiatives/ideas and
in some cases compete against
each other for the relocation
of the same business.
Going forward – there will
be one pot of money, one
group of skilled economic
development experts and one
very clear direction.
More efficient consultation
processes
I’ve recently made Long Term
Plan submissions to all five
councils. I had to read five
sets of LTPs, find out what
was similar, what was different
and then make submissions
accordingly. I also then
had to go and make formal
submissions to the councils.
It would be much easier if
there was one LTP document
and you submitted and
presented to one council.
More motivated councillors
I’m not saying that the current
crop are not motivated, but
we would hope to see some
fresh new energised people
becoming community leaders.
Councillors should not be able
to sit in the seat for as long as
they currently can. We have
some that have been there for
four-plus terms.
We will also finally have a
pathway to being a councillor,
by having local boards and
giving younger community
leaders a taste of what it’s like
to serve their community.
Stronger lobbying to
Government
Currently if we feel strongly
about something we need
all five mayors to agree that
it’s worth taking to central
government. They then need
to decide who takes the lead
or do they all go. They then
also need to commit to the
end result and not waiver
during the process. That’s
pretty hard to do, so it will
surely be much better if we
have one strong leader backed
by 160,000 people taking our
case to Wellington.
Innovative thinking
The council system is very
old and traditional. It’s in dire
need of a shake up. We need
to look at it through new eyes
and see how it can function
much more relevantly than
it currently does. It was
interesting to go through the
LTP formal presentations and
the different approaches to
taking on board submitters
ideas.
Regional community spirit
Each council does a great
job of pulling its community
together for a good cause.
However I don’t think we do
it well as a region. I’m not
sure why? Perhaps its because
they take turns at leading a
regional campaign or perhaps
it's because no entity actually
takes the lead.
Please make sure that you get
out and vote.
See you on the other side!
EDITOR/PUBLISHER: Damon Harvey
06 878 3196, 021 2886 772, [email protected], Twitter – @profithb
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CONTRIBUTORS: Sarah Thornton, Vivienne Haldane, Wray Wilson,
Cedric Knowles, Paul Harvey, Brent Paterson, Kimberly McKay, Catherine Wedd
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2
THE
Amalgamate.
PRO
HB
STAPLES RODWAY CHALLENGE 21 NOV 2015
Participants might be pleased to know
that this year’s river crossings in the
Staples Rodway Challenge might not
be as cold as last year. Due to the tides
working in our favour, we are able to hold it a
month later! This year’s challenge will be held
on Saturday 21st November.
The event is now regarded as one of the
most popular sporting events in the region.
It takes in some of the Bay’s most stunning
landscapes on a course that is mainly on
private land and includes windswept beaches,
native forest, waterfalls, river gorges and
stunning coastal farmland. The area includes
world renowned five-star lodge “The Farm”,
Cape Kidnappers Wildlife Reserve and
passes through the largest gannet colony in
the world. The course is 32km with three
legs forming a triangle along the two sides
of Cape Kidnappers and back across the
headland, starting and finishing at Clifton
Bay Café.
Staples Rodway Chartered Accountants and
Business Advisors have been instrumental in
establishing the Staples Rodway Challenge.
The event has raised over $80,000 for local
charities since its inception in 2009.
Charities such as ‘4 Friends Afterschool’
programme (run through Sport Hawkes Bay),
U Turn Trust, Hayseed Trust, Surf Lifesaving
Hawke’s Bay, Child Cancer, Cranford Hospice
and the Hawke’s Bay Helicopter Rescue Trust
have all benefited from this great community
minded event.
In 2015 the nominated charity is the Hawke’s
Bay Branch of Cystic Fibrosis New Zealand.
www.staplesrodwaychallenge.nz
VET RECEIVES INDUSTRY AWARD
Photo courtesy of Phil Stewart
Vet Services Hawke’s Bay veterinarian
Richard Hilson is the recipient of the
prestigious Alan Baldry Award given
out annually to a member of the Society
of Sheep and Beef Cattle Veterinarians
of the New Zealand Veterinarian
Association.
The award, a shepherd’s crook, (pictured with
Richard) was presented at the Sheep and Beef
Cattle veterinarians and Deer veterinarians’
conference in Queenstown recently.
Richard was born and bred in Central
Hawke’s Bay and has been with Vet Services
Hawke’s Bay for 24 years.
“I was pretty happy to receive it, as it is a
significant award within production animal
vet circles and represents a lot of veterinary
endeavour by many well-known vets across
many aspects of our work.”
The award was instigated in New Zealand in
February 1989 in memory of Alan Baldry, a
distinguished member of the British Sheep
Veterinary Society who died in a car crash
while in New Zealand.
Vet Services Hawke’s Bay veterinarians Dave
Quinlivan, Bert Middelberg and Richard Lee
have also received the award before.
Richard believes this is some sort of record
and reflects how closely the practice is aligned
to its sheep and beef clients.
Enviromental management
and economic development
go hand in hand.
• Resource consent
advice and planning
• Transport planning
• Water management
• Biodiversity
REGIONAL COUNCIL
4
THE
• Online irrigation data
• Land and soil science
• Pollution control
06 835 9200
www.hbrc.govt.nz
PRO
Viewpoint
BEYOND AMALGAMATION
A new beginning or hope lost?
Chris Bain
Whatever the outcome of September’s vote on local government
amalgamation in Hawke’s Bay, the region will be granted a fresh regional
leadership opportunity, whether or not it includes structural reform of the
region’s five councils.
The amalgamation proposal has been a
major regional distraction, driving virtually
all local government matters. It has
been extremely divisive. On the basis of
media coverage, separate councils should
remain. Accompanying messages say we’re
“performing acceptably” or similar.
By implication, long-term independence has
ably advanced each local council. All Hawke’s
Bay councils provide first-rate infrastructure.
All our councils deliver their customers, the
ratepayers, enhanced value.
If so, how does one explain decades of
Hawke’s Bay under-performance? There has
unfortunately been a significant mismatch
in the misleading words of some local body
politicians and any objective analysis of our
long term economic performance.
In the early 1970’s, Hawke’s Bay was on the
sheep’s back, so to speak. 40 years later we
have a sinking regional economy, one which
consistently underperforms compared to the
majority of NZ regions.
The reality of our daily life is that we live and
work in a borderless community and not in
unconnected cells. Interdependency across
our region is the fabric that makes us unique,
two complementary cities with reliance on
our rural sector. Thousands of Napierites
travel to work daily in Hastings (and vice
versa). Many Hawke’s Bay residents view
Napier as the region’s prime retail centre; most
manufacturing/production activity is based in
Hastings.
The by-product of our longstanding regional
dischord is observers - especially those from
outside Hawke’s Bay - viewing us as highly
dysfunctional.
It has been indicated to me three times since
March in Wellington government circles,
that some NZ regions are able to effectively
NZ Digital
connect with central government. These
regions also comprise separate councils,
however they place importance on always
being well dressed, organised and regionally
cohesive when in a public setting. What goes
on behind closed doors stays there. Their
regional leadership is proactive and is said to
be easy for central government to work with.
It was clear that Hawke’s Bay certainly isn’t
one of those regions.
Like it or not, most of our region’s needs (by
way of resources and infrastructure etc.) are
dependent upon the government of the day
and its policies.
Although Hawke’s Bay is a reasonably
important net contributor to the NZ economy
- that is our (export dominant) earnings exceed
total government expenditure in the region we get no Bank of Wellington 'credit '.
Ever larger sums of government expenditure
by-pass us, as Hawke’s Bay’s credits are
increasingly
moved
into
supporting
metropolitan NZ, the ‘golden triangle’
(Auckland/Hamilton/Tauranga), Christchurch
and Wellington.
Who is going to begin contesting this and a
number of other important issues confronting
Hawke's Bay?
It would be disappointing therefore if local
body politicians post amalgamation return to
their familiar, separate ways.
We need to be ambitious and regain sustainable
regional growth, as other regions are currently
making progress at our expense. We can be
far better, pro actively influencing our future
instead of sometimes reacting on an issue by
issue basis.
Each Hawke’s Bay community has strengths
and frailties. As these well-known lyrics state,
it is high time we “… extentuate the positive
and eliminate the negative”. We should
Websites, Digital Marketing & Strategy
embrace our strengths and be courageous by
foregoing unnecessary and wasteful processes.
We need to meaningfully re-engage with our
key communities again, including the business
sector.
Adding value to ratepayers to my mind should
be a regional mantra - it makes little sense
having five sets of replicated council services.
Regional development is a key example - I
understand there are 19 staff employed on an
“economic development” payroll region-wide.
Governance of this activity is carried out by
a staggering 70 councillors and directors
(representing a population base of a mere
158,000 residents).
Little wonder we struggle to be effective,
especially when many other NZ regions have
a single, focused and well funded economic
development strategy and structure. Of note,
Wellington is the latest region to recently
establish a single structure, including tourism.
There are acres of opportunities if the
sustained political will is in place to objectively
seek ongoing efficiencies and improved
services. Savings produced by being savvy
could potentially be pooled to allow increased
regional investment.
The most important part of the mix, councils’
customers - the region’s ratepayers - might
again be seen as being traditionally silent on
this matter. I sense however a high degree of
pent up restlessness and frustration over the
collective lack of leadership and performance
by our councils.
To all Hawke’s Bay’s political leaders, what are
you going to do next - return to playing in your
own backyard or turn the many wasted years
of talkfests and inaction into creating a proud
new regional legacy?
Chris Bain is an independent business consultant, a
board member of Business Hawke’s Bay and former
COO of Napier Port.
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THE
5
PRO
Q&A
PRO
Q&A
A HASTINGS EXERCISE BUSINESS IS CREATING HEALTHIER WHANAU
AND FOSTERING SOCIAL CHANGE IN THE COMMUNITY.
In a large shed on Orchard Road there’s
a gym of a different kind. It doesn’t have
mirrors, the workout gear consists of truck
tyres and ropes and there’s a distinct lack of
lycra. Patu Aotearoa is a gym designed for
whanau and its unique approach to fitness is
having a huge impact on the health of Maori
and Pacific Island communities.
Patu is the brainchild of Levi Armstrong and
business partner Jackson Waerea. Levi has a
degree in sport and recreation and was working
at Sport Hawke’s Bay when he realised there
was an opportunity to develop a gym specifically
for Māori and Pacific people.
The main driver of the business is addressing
the increasing health issues faced by Māori,
particularly type 2 diabetes, cardiovascular
disease and obesity. The statistics are alarming:
nearly half of all Māori and 60 percent of Pacific
Island adults are obese and the numbers are
increasing.* Patu’s programmes have been
specifically designed to address these health
issues and as well as operating gyms, the business
has contracts to deliver exercise programmes
for organisations including the Hawke’s Bay
District Health Board and Te Puni Kokiri.
“Patu is a weapon used by Māori warriors to
attack the enemy and to protect the whanau. In
this new era, our Māori whanau need protection
from different enemies that our ancestors never
faced: obesity and diabetes,” explains Levi.
HIT or High Intense Training underpins Patu’s
exercise programmes. Skipping, body weight
and team lifting exercises form the 31 classes run
every week. Demand for classes has increased
over the two and a half years Patu has been open,
with more than 300 whanau now attending.
Sarah Thornton
to get the country’s best social enterprise ideas
off the ground in just six months. It is an intensive
accelerator for teams with big ideas who will
benefit from support, coaching and training from
a dedicated team of handpicked professionals
and social enterprise experts.
Levi and Jackson are always looking for
opportunities to take Patu further. Last year they
launched a mobile Patu service, set up a gym in
Wairoa and developed a smartphone app.
“Generally funding and support are not readily
available for a commercial business, but more
and more organisations are looking to support
businesses that can bring a social return on
investment.
“The app gives people the ability to work out
at home. We also developed a ‘Patu Crate’ with
Furnware, essentially a box with a skipping
rope and barbell that you can use with the app
at home. It removes any barriers for people to
exercise. It’s really taking off,” says Levi.
Levi and Jackson are constantly looking at ways
to get Patu to the people of NZ. The pair hopes
to create NZQA accredited courses and build a
national franchise model.
“We go to work places, schools, marae and
community centres. Recently we held an
exercise programme and weight loss challenge
at Furnware, the staff really bought into it and
the results were fantastic.
Recently Patu was awarded $20,000 in funding
from Contact Energy through the Akina
Foundation’s Launchpad programme.
The Akina Foundation, which was borne out
of the former Todd and Tindall Foundations, is
focused on growing social enterprise across New
Zealand. Its Launchpad programme is designed
“The government is also looking at return on
its investments not just in terms of money, but
health and wellbeing. For example, decreasing
the BMI of people by two or three percent can
reduce the incidence of type 2 diabetes. This
has major positive implications not only for the
community but also the health system,” he says.
They are currently conducting a research project
with EIT to find more measurable results of
Patu’s effect on Māori.
“It’s not just about weight loss or fitness; it’s also
looking at the positive mental and social benefits
the programme delivers,” he says.
www.patunz.com
REGISTER NOW
21st November 2015 - 32km individual or teams run/walk event
Check out our website www.staplesrodwaychallenge.nz
6
THE
ATTN15PRO1607
Entries are now open for teams and
individuals for the Staples Rodway Challenge
PRO
Q&A
A NEW
Direction
AT SPORT HB
Mark was a partner in Auckland law firm Harrison Stone
and has moved to the region with his wife and son. He says
his passion for sport “and its importance for individuals
and communities” drew him to pursue the chief executive
What’s your career background?
I have mainly worked as a commercial
lawyer which means that my focus has
been on problem solving and making
things happen. I have also been a coowner of a business, which provided
home care for the elderly, and I was
acting Chief Executive of New Zealand
Football in 2013/14.
What’s a career highlight?
I really enjoyed my time at New Zealand
Football. Sport has always been my
passion and that role convinced me that
working in sport was not only something
that I could do but also something that I
really wanted to do.
What are your early observations of
Hawke’s Bay?
There is a real passion for sport in
Hawke’s Bay that you perhaps don’t see
quite as much in Auckland.
Hawke’s Bay has two real advantages over
Auckland – lots of space and a more
settled climate.
I think that means there is a tremendous
environment for people to get involved in
sport and by and large as a region I think
we take advantage of that in terms of use
of cycle ways and the like.
How do you see health and wellbeing
can be improved via workplaces?
Workplaces are where we spend a lot of
our waking hours. They are also where we
SPORT HAWKE’S
BAY IS MOVING IN
A NEW DIRECTION
UNDER NEW
CHIEF EXECUTIVE
MARK ASPDEN.
role.“Hawke’s Bay is already a very strong sporting region
and I am enjoying working with the team at Sport Hawke’s
Bay and with other key stakeholders to continue to grow
sport and recreation in the Bay.”
congregate. So if we are trying to inspire
our community to be active and healthy
then workplaces are good spots to target.
What connections are there between
sport and business?
It is important to remember that sport is
just that. However if you want to run a
successful sports club or other sporting
organisation then you need to apply
some sound business practices, such as
strategic planning, budgeting and having
clearly defined roles for your staff and
volunteers. Also a lot of sport simply
wouldn’t happen without the financial
support of the business community. We
are certainly grateful to our commercial
partners for the help they give us.
How is Sport Hawke’s Bay funded?
We have a mix of funders – for example
Sport NZ, councils, sponsors, service
contracts with the DHB and Health
Hawke’s Bay, East Coast Community
Trust and gaming trusts. Like most
charitable trusts though we could always
use more.
How can you see Sport HB being
funded in the future?
One change we would be very keen to see
would be for some part of activity to be
funded by a regional rate. At the moment
we receive funding from the councils in
our region, but levels vary. A regional
rate would give us long term certainty in
the provision of our services throughout
Hawke’s Bay.
What do you see Sport HB doing in
the future that perhaps it doesn’t do
now?
I would like to see us taking more of
a leadership position in getting our
community active. While we have some
fantastic athletes, we also have some very
poor health stats. I believe that Sport HB
can play a significant role in helping to
address those, if we can just get a relatively
small amount of additional funding.
Do you have any business heroes/
mentors?
I don’t have anyone specific, except
perhaps Dilbert who probably doesn’t
count. Almost without exception I have
learned something from all the managers
I have had, although in a couple of cases
all I learned was that I didn’t want to be
anything like him or her.
What do you do in your spare time?
Sport! I play football, golf, touch and run
a bit. When I am not playing sport I like
to watch sport – preferably live, but TV
works nearly as well. Obviously family
time is important too – I watch as much
of my son’s sport as I can.
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THE
7
PRO
Hastings CBD
Economy
SURVIVAL OF THE
FITTEST IN CBD
RETAIL SCENE By Sarah Thornton
Retail occupancy rates are declining in
both Hastings and Napier. Reasons for
the slow demise of the CBD’s are no
free parking, big box retailers situated
elsewhere and the increase in online
shopping. So what’s the fix?
retailers are experiencing a record-setting year,
others are struggling to adapt to the changing
retail environment. And it’s not helped by
new developments such as The Park and the
redevelopment of the K-mart Plaza, have had
a negative effect on the CBD.
Retail in Hawke’s Bay is in pretty bad shape.
The number of empty shops in Hastings’
CBD is at its highest since 2000, and Napier is
faring only a little better.
“While the redevelopment of the K-mart
Plaza and its heavy foot traffic and free
parking are an asset to Hastings as a whole,
their strength has further weakened the
traditional small format retail spine of
Heretaunga Street,” she says.
In the February 2015 Hawke’s Bay Retail
Occupancy Survey*, rates have continued to
decline over the past 12 months; in Hastings
the occupancy rate has decreased by 8.7
percent to 85.9 percent, and in Napier by 5.7
percent to 87.8 percent.
The highest occupancy level was reported in
Havelock North, with 97.2 percent. Although
the town still experienced a 0.3 percent drop
from the same period last year, it appears to
be bucking the trend. At the time of writing
only two small retail premises were available
for rent in its CBD.
As to the reasons for the declining numbers,
common themes and issues arise. Competition
from new stores and ‘big box’ retailers away
from main streets, low population growth and
the increasing demand for online shopping are
all negatively affecting our shopping precincts
and it would appear the haemorrhaging of
retailers from our CBDs is not likely to be
stemmed any time soon.
Hastings
Hastings’ CBD is experiencing its lowest
occupancy rate since 2000. Susan McDade is
general manager of the Hastings City Business
Association and says that while some of her
8
THE
There is a real concern in filling
these spaces. The reality is we have
an over capacity of retail stock that
is undesirable by the few national
retailers making enquiries.
– Susan McDade
The Hastings Business Association is
constantly exploring ways to fill the empty
spaces and is encouraging developers and
Council to look at ‘change of use’ to reduce
the retail stock and attract more wages into
the CBD, as seen when KiwiBank moved to
the city.
“We work hard to improve the vibrancy of the
CBD and attract people into the city through
events and improved amenities, which in turn
improve ‘brand Hastings’ making it a more
desirable choice.
“The demolition of the Albert Hotel has
brought new energy and attention to the
east side of Hastings CBD. The first stage
of development of the site consists of a
multi-use green space giving the surrounding
businesses a lovely outlook and focal point. A
small container theatre will give another venue
Vacant spaces abound in the city including
high profile sites previously tenanted by
Postie Plus, Pagani, NZ Post and Whitcoulls,
all of which have been vacant for over a year.
“There is a real concern in filling these spaces.
The reality is we have an over capacity of retail
stock that is undesirable by the few national
retailers making enquiries. Often this is due to
the age and layout, earthquake strengthening
issues or landlord expectations,” adds Susan.
Registered valuer Paul Harvey from Williams
Harvey agrees. “There is an on-going problem
of a lack of demand for retail premises in
Hastings. It’s an issue facing many provincial
cities around New Zealand and one that is
not looking at improving in the near future
without a very creative solution.”
Susan McDade, General Manager Hastings
City Business Association
PRO
Economy
Retailing success: Angus and Michael Thomson
for Hastings talent, community groups and
events. The park will be ready by September
2015 in time for the Blossom Parade and
aims to be an accessible space for the whole
community. As a result of this new energy, the
200 east block is now fully tenanted,” she says.
Retailers also have a part to play to ensure a
vibrant and profitable CBD. “Retailers need
to embrace the changing landscape of their
industry by offering those values that cannot
be found online, like great personalised
customer experiences and service. Being
flexible and available to their customers how
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and when they want to shop is vital,” says
Susan.
Thomson Suits has been selling menswear
from its Heretaunga Street West store for
nearly 60 years, and has seen retailers come
and go. Angus Thomson says the formula
to the store’s longevity is in the shopping
experience it provides to customers.
“Twenty-five years ago there were 21
menswear outlets in Hastings. Now five
remain and that’s counting the Warehouse,
Farmers and Hallensteins. Successful retailing
is sticking to what you know and not wavering
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BBS ANZIV SPINZ
from that. We have always offered high
quality menswear from well-respected labels
and although we have increased our online
presence through our website and online
shopping, there is still demand for a truly
personal shopping experience.”
For an established business, keeping relevant
to the younger market is crucial. “We have
always had ‘generational customers’, mostly
farming families, but now we are seeing more
young professionals walk through the door.
Yes, you can buy cheaper suits but you can’t
go past quality, Italian fabrics, pure wool and
Kirsty Miller
BBS ANZIV MPINZ
Grant Aplin
B.Com MPINZ
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THE
9
PRO
Economy
Photo courtesy Tim Whittaker
exceptional tailoring. And that’s what you get
in our store,” adds Angus.
Susan echoes those thoughts. “Independent
retailers have a real opportunity in these
changing retail times. Personal service, points
of difference and offering unique experiences
for customers are more successful for
independents than for chain stores,” she says.
Both Angus and his father Michael Thomson
are concerned at the current state of retail in
Heretaunga Street.
“At last count there were 13 empty shops
in our block but they’re slowly getting filled.
Parking is also an issue and one we are
working through with Council as shoppers
have to pay for parking in the main street but
at K-mart and the big box stores it’s free.”
Susan says the night market attracted nearly
52,000 people over the 27 weeks it opened,
compared to 29,000 last year. Although it
improves the community’s view of the city,
there are no direct benefits for traditional
retailers. “It might bring people into the CBD
but it’s not during the day when the shops are
open and it’s not doing a thing for us,” says
Michael.
Susan says the rise of online shopping is also a
challenge facing retailers from all areas. “Some
of our members are under pressure from
online competition while others use online
tools as an integral part of their business.
Others start out selling online and move to a
bricks and mortar site as their customer base
grows. Using the internet as a tool instead of
the enemy is the key,” says Susan.
Most agree there are no quick fixes for the
challenges facing Hastings. The size of the
retail area, essentially from Stortford Lodge to
the Opera House, is too big for the demand
and our population base. But there is an
increase in interest from developers and large
employer businesses that may help address
these challenges in the next few years.
Napier
Like Hastings, Napier retail is on a downward
trend. The re-development of the Post Office
and Farmers building in Hastings Street may
have brought new energy to the city, but at the
expense of lower Emerson Street.
Napier Business Association manager Zoe
Barnes is however “relatively positive”. “It’s
the cycle of retail. As areas are re-developed,
there is a desire to be in and around them.
In the case of Hastings Street, we’ve seen
planners | engineers | surveyors | environmental
+ 64 6 835 2096 | 94 Raffles Street, Napier
10
THE
PRO
Economy
Napier CBD
increased foot traffic
and as result many
current tenants in
the western parts of
town have sought
to relocate to the
upper end, therefore
moving the retail
centre of Napier
away from the entire
length of Emerson
St.
“Vacant shops are
numerous in lower
Emerson
Street.
As well as the shift
in retail centre up
towards the Marine
Parade
end
of
Emerson
Street,
earthquake standards
have seen insurance
premiums skyrocket
in
non-compliant
buildings,
which
encourages tenants
to move. There is simply not the money
around there once was,” she says.
In amongst this, Zoe sees an opportunity for
lower Emerson Street retailers. “Now is the
time to be creative and try to think through
interesting ways to enliven that end of the
street, to give it individualised character and
to try and drive it in a new direction.
“To be fair, at the moment it isn’t the most
exciting looking of places so how do we add
that colour and vibrancy to attract consumers
down further?”
Napier City Council is currently developing
its ‘City Vision’, part of which is focussed on
making blank spaces usable. Two examples
are the urban chill-out space on Market Street
and a children’s activity zone outside Mid City
Plaza on Emerson Street.
“What the internet doesn’t provide is that
personal touch or an experience,” says Zoe.
“It’s ‘value add’ opportunities that retailers
need to embrace. Customer service is vital
to bricks and mortar retailing. Independent
retailers, provided they are savvy and
proactive, will survive provided they focus on
customer service and quality.”
“I also think we will start seeing more mixed
retail spaces. For example the new BigSave
store in Ahuriri that also contains a BMW
dealership and a café. There are more reasons
to stop and shop for the whole family.”
Unlike Hastings, Napier’s CBD is compact and
has got off “fairly lightly” from competition
from big box retailers. “The fact that our big
box stores are within walking distance of our
independent retailers makes it a much more
level playing field,” she says.
Havelock North
Although retail in Havelock North is
relatively healthy with an occupancy rate of
97.2 percent, rates are still falling from the
same time a year ago. Business Association
president Sam Jackman issues a word of
warning.
“Retail success is restricted to those who
actively promote themselves, especially to
their own database and various social media
platforms. Lazy retailers will always suffer
and in winter months – the slow period – this
will remain the same.”
Currently under construction and predicted
to be open by about September 2016 the
Village Exchange Hotel complex is likely to
bring commercial benefit to Havelock North.
“The hotel and shops will increase the size
of the accommodation pie and also add a
far superior retail product to the current mix.
Any development such as this will be actively
promoted which again is very good for the
village overall. Even the lack of parking that
we are currently experiencing will change with
the hotel and its large underground car park,”
says Sam.
Independent retailers are the primary
tenants in Havelock North. An assortment
of boutiques, homeware stores, cafés and
restaurants are the backbone of the shopping
precinct. “We offer shoppers free parking,
free Wi-Fi throughout the village, a great
selections of eateries and a safe shopping
environment with a good retail mix. Havelock
North is seen as a destination.”
Sam agrees that online shopping is a challenge
for independent retailers, but has some advice.
“Our members are feeling the squeeze with
online shopping and the government must
make a stand with regard to GST on imported
goods.
“However, some of our retailers are using the
internet to their advantage and will offer a
selection of goods not available in store to their
online customers. A retailer like Advintage is
embracing the online space and nearly all its
business is now done electronically. It’s a very
successful business.”
While Hastings, Napier and Havelock North
each have their own identity and trade on the
qualities that set them apart, it is clear that no
town is escaping the downward occupancy
trend and challenges that face our retailers
today.
*Logan Stone Retail Occupancy Survey.
“I guess the answer is if we make these areas
a more fun and interesting place to be, then
consumers will spend more time in those
areas and therefore those spaces become
more attractive to potential retailers,” she
adds.
Zoe suggests retailers and the association
need to think outside the square. “What if
all first floors were converted into high spec
apartments? Lowering the barriers to entry
such as parking issues and creating vibrancy in
the CBD will attract the people. People spend
money and that attracts the retailers. It’s more
of a grass roots approach really and focusses
on simply getting more people into the city.”
For retailers to remain relevant to their
customers and survive competition from
online shopping, the same guidelines apply
for Napier as they do in Hastings.
Sam Jackman, Havelock North Business Association
THE
11
PRO
James
and Amie Nilsson
Feature
Go Getters Prove
Bay is Best
By Alisha Neilson
Since the birth of their award-winning company Merino Kids, James
and Amie Nilsson have worked tirelessly for their business, but a
move home to Hawke’s Bay two years ago has ensured the business
now well and truly, works for them.
It’s a subtle yet significant ‘shift’ but one that
proves geography is no longer considered
the disadvantage it used to be, when it comes
to business.
Entrepreneurial couple James and Amie and
many others like them, are helping revive
the region’s economic performance levels;
in doing so they are leading an emerging
wave of skilled Bay ex-pats returning home
to take advantage of the region’s growing
opportunities.
Arriving to interview the couple at the
stunning Cape Estate property they now
call home, it’s business as usual. Amie is
wrapping up a Skype tutorial with the Lion
Foundation Young Enterprise students,
she helps mentor, and James is head down
in the busy home office that’s become the
nerve centre of the global distribution of
Merino Kids. Sitting down with the pair,
it’s easy to see why their partnership is such
a successful one. Bright eyed, go-getting
Amie with her artistic textile savvy meshed
with James’s business nous is a formidable
combination; both bringing different skill
sets to the table and exploiting the other’s
dynamism. Entering into business alongside
12
THE
your spouse is not a risk James and Amie
took lightly, but they have a tip or two for
those who are considering it.
“The key is to have a strong friendship in
the beginning, otherwise working together
probably won’t work!” they both joke.
“Right from the outset we set very clear
definitions of our roles, which is really
important. Recognition of skill sets is also
key. I’m the details man and Amie’s the
ideas wizard, one can’t function without the
other,” explains James.
“We focus on our different pastures,” quips
Amie. “I ensure James doesn’t graze in my
area and I don’t graze in his!”
When the pair launched their bestselling
‘Go Go Bag’ back in 2003, they never
dreamed the product would become the
jewel in the company’s crown. In fact, the
Merino Kids ‘Go Go Bag’ is so highly prized
that four different Royal families including
Kate and Wills and celebrities including
Rod Stewart, ‘Brangelina’, Claudia Schiffer,
Robbie Williams and Roger Federer are
lining up to buy them. With 11 years in the
global market and three iF International
Design awards, the brand now sells into
31 countries with revenue predominantly
from North America, UK, Australia and
New Zealand. The company has recorded
an average growth of 20 percent year on
year and potential for future growth seems
imminent with awareness of merino wool
fast expanding in Asia.
For Amie, the brainchild behind the now
globally renowned brand, it’s been a rocky
but rewarding ride.
“I’M THE DETAILS MAN
AND AMIE'S THE IDEAS
WIZARD, ONE CAN’T
FUNCTION WITHOUT
THE OTHER.”
– JAMES NILSSON
“We had a vision from the outset for Merino
Kids to become a brand recognised as one
which can make a positive difference to
people’s lives, and we think we’re achieving
that. The question we always ask is: how
do we not only become a leader in this
field, but how do we continue to do it
PRO
Feature
better than anyone else while reducing our environmental
impact… and encourage others to do the same.”
Today the merits of merino as a clothing textile are well
documented but that hasn’t always been the case. When
the brand launched in 2003 the baby sleepwear market was
saturated with synthetic fabrics that, while cheap and cheerful,
failed to deliver the heat regulation benefits of merino.
“We’re striving to educate and move people towards 100
percent natural sleep solutions that are innovative, sustainable,
durable and functional. The science behind it is simple: babies
cannot naturally regulate their own body temperature, they
fluctuate hot and cold regardless of how constant the room
temperature is. Merino fibre’s thermo-regulation properties
wick moisture away to keep babies cool and in reverse, trap
the air to keep the natural warmth in.”
After five years of living and breathing the brand in the UK,
James and Amie packed the family up and relocated back to
Hawke’s Bay in 2013 and haven’t looked back.
“We wanted to be closer to family and have our children’s
influential years spent enjoying the kiwi lifestyle we grew
up with. What helped us to do that was a board decision
to change to a licensed distribution model. This allows us
to work with local market distributors while focusing on
our core competencies of product design and development,
brand and IP protection and supply chain management for
11 distributors in various parts of the world – all from our
offices in Te Awanga,” says James.
By 2020, James and Amie aim to have Merino Kids triple its
multi-million-dollar turnover in global sales and included in a
portfolio of lifestyle brands by an international conglomerate.
Merino Kids products
A sizeable goal for a couple who started boxing their
product out of their Auckland bungalow’s spare room.
Enterprising by nature, the couple have engendered the
same ‘give it a go’ attitude in their three children – Lily (12),
George (11) and Scarlett (9). From a young age the trio have
been encouraged to follow their business ideas through from
concept to creation. Back in the UK at the age of 6, George
successfully launched and sold his own homemade organic
muesli to raise money in his school holidays. He’s now
currently on contract to the local BP supplying pinecones
off the farm for public sale, whilst Lily set up a crèche and
Scarlett made and sold homemade cupcakes during the
summer cricket matches that happen regularly at the farm’s
recently re-established Clifton County Cricket Club.
“There’s no rest for the Nilsson household,” laughs Amie.
These guys are the future of New Zealand so the sooner you
can start the kids doing business the better.”
With more time for research and development, Merino Kids’
product range is rapidly expanding. The brand has teamed up
with a large offshore company in setting up an R&D centre
for innovation and design, meanwhile another wool based
spin-off company has been formed.
Diversifying seems to be the cornerstone on which the
Nilsson family has capitalized on their iconic coastal property
of Te Awanga Downs. The homestead, Cape Estate is fast
establishing itself as a sought after venue for weddings and
corporate events, whilst James’ brother Matt and wife Amy
run the region’s leading outdoor activity company Outfoxed
www.outfoxed.co.nz.
Creating positive change is what drives and inspires James
and Amie Nilsson and when you appreciate what they are
achieving, you realise their success isn’t just about the ideas,
but about making those ideas happen.
“One day Hawke’s Bay could become the innovation hub of
New Zealand. As a province we have so many exciting ideas,
it’s now about how we export those to the world,” Amie said.
www.merinokids.co.nz
THE
13
PRO
Feature
A golden chance
takes Ian to the top
By Damon Harvey
Ian Crooks
Not long after The Profit launched in 2011, we received
an email from Ian Crooks in Australia. Ian had picked
up a copy of The Profit and was impressed by the range
of stories within the magazine. He wanted to become
a subscriber.
Since then we have kept in contact, via him continuing to
subscribe. I recently received a press release about Ian’s business,
Resort Brokers Australia, which was celebrating 30 years in
operation. Until then I didn’t realise how successful Ian was.
Fortunately I was heading over to Brisbane and I suggested we
catch up. We met on the Gold Coast at his regular café hangout.
It was one of the most enjoyable breakfast meetings I’ve had. He
is a genuine nice guy, who is proud of his roots – Waipukurau
and Hawke’s Bay. He’s also loving life in Australia, and as his
career winds down, the business continues to grow from strength
to strength.
Asked for words to describe Ian Crooks, those who know him
will almost always come up with ‘enthusiastic’ and ‘energetic’.
These are the signature characteristics of a property industry
veteran who hails from Waipukurau. Ian has revolutionised
motel investment in Australia and built a market-leading agency
dedicated to tourism and accommodation property, since moving
across the ditch more than 30 years ago.
Ian worked out early in his career in stock and station agencies in
Hawke’s Bay and Gisborne that he was a dab hand at sales.
Having established a successful motel brokerage, Chevron Real
Estate based in Tauranga, as well as owning and operating a few
motels with his wife Karin, he convinced her to give Australia
a go.
“Motel leasing was accepted practice in New Zealand,” Ian
recalls. “In the eighties, lots of Kiwis were shifting to Australia
for better opportunities and warmer weather. The two countries’
economies were the opposite then. Things in New Zealand were
tight, while Australia was going great guns.
“Just 12 months is what I was allowed and we’ve now been here
for 30 years!”
Australia was and still is in Ian’s view, a land of huge opportunity,
for those that are prepared to work hard.
“I think most people shift to Australia for the weather. Here we
are in the middle of June and it’s 20 degrees (at 8am) and it will
get up to 23 degrees today.
14
THE
“I think there are some who believe that although they haven’t done so well
in New Zealand, they can move here and make it. But if you can’t make it
in New Zealand you certainly won’t make it in Australia, as business is far
more ruthless than in New Zealand.
“You can still do business in New Zealand on a handshake, but you
wouldn’t dare do business that way in Australia. It’s a more cut and thrust
environment. Over-riding this though is the unbelievable opportunity that
comes down to the bigger population.
“A lot of New Zealanders have done well because we have a very strong
work ethic.”
For Ian, he had a huge appetite to work hard. Business went well, thanks
to his relentless effort and discipline. A typical day would start at 4am
with a one-hour run, then he’d record correspondence on a dictaphone,
leave home at 6am, and drop the tapes at a typing service before hitting
the road.
In the evening, he’d pick up from the typists’ after-hours box and, after
a quick dinner with the family, it was on to the phone. Every night from
7pm to 9pm, Sunday to Thursday without fail, non-stop calls, building his
incredible network of contacts.
“I remember looking at pages of motel ads in the newspaper and
wondering how on earth I would break into the industry,” Ian says.
What he did was drive 2000 kilometres a week, knocking on just about
every motel door across Queensland and most of New South Wales.
“I knew virtually every motel. Someone would mention a town and I
could tell them all the motels there, how many rooms they had, how big
the manager’s residence was. I gathered every bit of information I could
and memorised it.”
Ian’s exhaustive knowledge was one thing, but it wasn’t all that set him
apart. He applied the same meticulous approach to his goal of introducing
motel leases to Australia.
“I HAVE ALWAYS MANAGED TO STAY OPTIMISTIC.
IN BUSINESS, YOU ALWAYS HAVE SETBACKS, SO
BEING ABLE TO RECOVER QUICKLY IS A VALUABLE
SKILL. I ALWAYS TELL OUR NEW RECRUITS HOW
IMPORTANT IT IS TO KEEP LOOKING FORWARD AND
NOT TAKE THE KNOCKS TOO PERSONALLY.”
— IAN CROOKS
PRO
Feature
Being a Kiwi, Ian is passionate about
“We had motel leases in New Zealand,
but there were no formulas for setting
rugby, he proudly supports the All
them up and pegging values. Before
Blacks and he attends every Bledisloe
I came to Australia, I gathered all the
Cup match on both sides of the ditch.
motel Profit and losses I could lay my
He’s also attended the last two World
hands on. I studied and compared
Cups, and he’ll be in England to
hundreds of them to calculate some sort
back the men in black at this year’s
of industry average operating costs.”
World Cup.
He vividly remembers the first motel
Resort Brokers is now a family
lease he set up, the 17-unit Mary Ellen
business, with Ian, close to 70 years,
Motel, in Ipswich, just west of Brisbane.
The Profit editor Damon Harvey was recently in Brisbane
Today, thanks largely to Ian Crooks, more
visiting family. While there, he met with Ian Crooks at his slowly passing over the reigns to his
favourite café on the Gold Coast. children and their partners.
than 70 per cent of Australia’s motels are
split into active leasehold and passive
“I couldn’t be happier to now have the
freehold investment components.
perfect business succession plan, with Trudy, Carla and her husband
Now the nation’s acknowledged motel specialists, Resort Brokers was Alex, and Tim in key roles in the business. We have the strategies and
soon in demand across the accommodation spectrum – management expertise to really take Resort Brokers forward and a clear vision of
rights, hotels, caravan parks, B&Bs and backpackers too. When it was where we are headed.”
suggested we sell management rights, I was initially unsure, given the After all, Ian says, accommodation properties remain very strong
lower returns compared to motel leases,” Ian recalls.
investments.
“But we found a vast pool of people from New Zealand and Resort Brokers just sold the management rights to one of the Gold
throughout Australia eager to take up opportunities and live between
Coast’s most visible landmarks – the Soul complex along the front row
Coolangatta and Noosa, where they were concentrated. Management
rights were a real revelation to me and now they represent 50 percent of the Gold Coast, for an undisclosed amount, but which is reported to
be over $20 million, a world record.
of our business.”
Now in its 30th year Resort Brokers Australia, is stronger than ever, “We’re now negotiating another which will surpass this.
Ian says. But he does admit to a couple of “financial reversals” along “The motel business is still outstanding. If you were able to borrow 100
the way, thanks to some brutal market downturns. True to form, percent to buy one, you could pay it off in 10 years and still enjoy a very
though, he bounced back.
comfortable lifestyle along the way. Management rights are no different.
“I have always managed to stay optimistic. In business, you always “That’s the essence of what we do – help people to enjoy a great lifestyle
have setbacks, so being able to recover quickly is a valuable skill. and financial security through the accommodation industry.
I always tell our new recruits how important it is to keep looking “I still get excited to get up every morning and give it a go, but I’m also
forward and not take the knocks too personally.”
ready to pass on to the kids now.
Ian still puts great store in the qualities that have driven his entire
working life: hard work, willingness to take a calculated risk, the ability “I’m keen to spend more time in Hawke’s Bay. I love going back and
to learn from your mistakes, and think outside the box. “There’s I’ve probably had some of the best times in my life in Hawke’s Bay,
going back and seeing the guys I haven’t seen since I was at Napier
always more than one way to do a deal.”
Boys’ High School,” Ian says.
IT’S TIME FOR YOUR
BUSINESS TO TAKE OFF
RELOCATE TO HAWKE’S BAY’S
AIRPORT BUSINESS PARK
• DESIGN BUILD OPTIONS TO SUIT
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THE
15
International Students Big
Business for Hawke’s Bay
Education Providers By Catherine Wedd
A small ageing population and a
growing economy are all factors
driving a need to bring in skills and
knowledge from offshore.
Education leaders say the best way
to do this is to educate international
students; with a hope they will stay
and meet the needs of our economy.
International education is New
Zealand’s fifth largest export industry.
16
THE
It contributes an estimated $2.6
billion to the economy annually.
So how does the international
education market stack up in the Bay
and how does it help add value to
our economy? We asked some local
education providers why they were so
motivated to attract students from
abroad.
Taradale High School Students
International student numbers in Hawke’s
Bay are growing, with 2014 enrolments up
eight percent on 2013, to 1222 students,
according to the latest International
Education Snapshot report.
The number of international students at the
Eastern Institute of Technology (EIT) is at
an all time high.
Last year 450 students studied across its
three campuses and International Director
Philippa Jones says she expects the numbers
this year will be much higher.
PRO
Feature
“We have had an increase because we have
relevant programmes to meet their needs,
there are very good strategies in place and
the New Zealand Government has been very
supportive, helping us grow international
student numbers.”
“We believe that understanding more
about the countries we visit and trade with
is important for students going into the
workforce.
“Our international students also foster
relationships and links to New Zealand and
we hope this makes them think of New
Zealand more when it comes to business.”
Philippa uses the wine industry as a good
example. EIT’s viticulture and wine science
programmes are growing in popularity
with international students, especially the
Chinese.
“It’s more efficient to bring the world to our
students, than send our students out to the
world.”
International students pay a lot more than
domestic students. Their yearly fees can
range from $12,000 at public schools to
$30,000 at integrated schools.
“Taradale High School is a high decile
school, so funding is a challenge. The fees,
which international students generate means
we can afford more resources.
“The money goes into general operations
and isn’t identified as separate cash
flow. We are substantially under funded
and this extra money enables us to give
more back to our domestic students.”
There are students from 41 different
countries at EIT and strong marketing
overseas is attracting students as far afield as
Bhutan.
Click here to
view a recent
video produced
for Hastings
Girls High
School.
“We are a collaborative model. Members
come from schools, the Institute of
Technology and Polytechnics (ITP) and
Private Training Establishments (PTE)
and we aim to work together as a group to
promote the region on the world stage.
Sun Weiting
Stephen says a New Zealand public high
school student costs the government about
$8000 per year to educate.
Marketing is a key focus for Philippa who
spends 12-15 weeks a year travelling to
promote EIT offshore.
“We can’t cover all areas of the globe and
we concentrate a lot of our efforts in China,
India, Germany and the Philippines. We find
that a lot of marketing comes through word
of mouth and friends and family too.
“Not only is the money helping the school
but the wider community. For every $1 paid
to the school, the student will spend a further
$2 in the community. Homestays benefit as
well as local retailers and the economy.”
“It’s a very competitive environment in New
Zealand. We are competing against the other
education facilities to attract students to
Hawke’s Bay. Each institution has a desire
to grow, but our greatest competition is the
UK, Canada, Australia and the USA.”
“It’s enormously positive for the school. It
means our students are introduced to a wide
range of cultures and different languages.
Many of our students make lifelong
friendships with overseas students which is
great for when they travel.”
Schools Bring the World to their
Classrooms
Taradale High School is one of Hawke’s
Bays largest host schools typically enrolling
up to 40 students a year.
Hastings Girls High School’s international
roll is also growing. It currently has 11
international students and is focusing
attention on marketing.
Taradale High School Principal, Stephen
Hensman said over 30 years ago the
school saw a need for students to mix with
international students, to open their eyes to
cultures around the world.
Education providers have been
using video as a way to promote
their school and the surrounding
Hawke’s Bay scenery.
Heading the group is Stephanie Kennard
who started her role in January this year.
“Legislation dictates the minimum we can
charge international students and schools
determine their own fee structures beyond
that. We are also charged by the government
to host international students.”
The school has a long established history
with most students coming from Japan,
Korea and Germany.
Promoting Education
Through Video Marketing
Collaborative Regional Approach To
Attract International Dollar
Education Hawke’s Bay was recently set
up to unite the region’s efforts to attract
international students.
“This gives opportunity to link more with
the Chinese wine market, an area which
Hawke’s Bay wine exporters would like to
break into. When these students go back to
China they will take a wealth of knowledge
and connections with them and hopefully
as a result we will see more wine going to
China."
There’s no doubt that profit is also a huge
motivator for education providers when it
comes to international students. They pay
higher tuition fees and this provides extra
cash flow for EIT to invest in facilities and
equipment.
PRO
Featur
International director, Jillian Frizzell says
Germany is a strong market even though all
the schools there are co-ed.
“We have done a lot of marketing in Germany
and now we have good word of mouth there.
“Our international programme is great for
the school. We have a good buddy system
and it gives our girls a better overview of the
world. It adds culture and diversity.”
“Our members are at different stages with
their international attraction so we can add
further value as a group by teaming up and
focusing on what the region has to offer.”
Stephanie says the value of an international
student is $20,000 per year to the region.
“Students spend on items outside of their
tuition fees. For example they buy insurance,
go to the supermarket, spend money at local
retailers, take part in local tourism events
amongst other things.
In Hawke’s Bay international students may
make up 5 percent of the school population
whereas in Auckland they may be up at 10
percent.
“Auckland is not for everyone and Hawke’s
Bay definitely has so much to offer. Students
do not only come to study, they are here to
have an experience and there is just as much
learning outside of the classroom as there
is in.”
With a new brand and website soon to be
released, Education Hawke’s Bay is ready
to raise the bar on marketing the regions
education facilities to the world.
Stephanie says the main goal is to double
the value of international students to New
Zealand by 2025 and in the short term
increase the value by 25 percent from 2014
to mid 2016.
THE
17
BUSINESS PROFILE:
LOCAL
PRESENCE
GROWS
FOR GHD
When Tony Harrison
moved into offices on
the corner of Queen
Street and Karamu
Road in Hastings,
he was unsure on
how long it would
take to establish a
fully-fledged branch
of global infrastructure and engineering
consultancy firm GHD.
Tony had been based in GHD’s Palmerston
North branch, but was keen to set up in his
home town. He had a wealth of contacts
and a proven track record, having previously
worked for the Hastings District Council.
He has over 20 years experience in roading
design, network maintenance contract
management, contract management, project
management and providing specialist
transportation, traffic and road safety
advice on local authority and state highway
networks.
“I could see a huge opportunity for GHD in
Hawke’s Bay. We already had projects in the
Bay and it was about taking the next step to
having a physical presence and reconfirming
to our clients, our commitment to the area.
“With GHD I could see that we had a
different offering in the market than others.
We had people like me on the ground here
in Hawke’s Bay, but we could bring in
national and global expertise when required
for support.
“GHD is a global network of specialists
in water, energy, resources, environment,
property and buildings as well as transport,
which we could quickly access."
Five years on Tony has firmly established
the GHD office and he’s been joined by a
multidisciplinary team of ten, a few of who
are also returnees to Hawke’s Bay.
When he reflects over the past five years it
is particularly satisfying to see the team and
client base grow.
Tony says the profile of the local team has
predominantly been related to transportation
projects but over the last couple of years the
team has expanded to include geotechnical,
structural and water engineering services as
well as general civil engineering.
“The office has gone from co-locating with
another business to being standalone. We’re
now bursting at the seams and are expanding
through to the offices next door and creating
a larger meeting space to provide technical
sessions for staff and clients.
Tony says GHD has developed a strong
client base primarily from the high level of
ownership the local team has over project
delivery.
Recent examples of non-transport
and private sector projects delivered
by the Hawke’s Bay Office are:
• Site access redevelopment for
Fonterra at Paraparaumu;
• Scheme development for NZL for a
container park;
• Successful Ministry of Health
subsidy application ($1.6m) and
engineering for a new water reservoir
for Wairoa District council;
• Geotechnical investigations for
Frimley Estate;
• Earthquake prone building
assessments for the Ministry of
Education;
• Travel plans for schools – with the
aim of increasing non motorised
transport modes;
• Traffic impact assessments for land
development; and
• Heating, ventilation and air
conditioning reviews.
“While the local office often leverages off
technical specialists from around NZ and
sometimes GHD’s international team, the
ownership remains with the local team who
firmly believe their reputation is only as
good as the last project delivered.
“We have also developed strong working
relationships with other local strategic
partners, to ensure we deliver a ‘best for the
job’ team” he says.
An example of this is GHD’s relationship
with
Environmental
Management
Services Ltd (EMS) a local planning and
environmental consultancy.
While GHD has planners and environmental
consultants throughout New Zealand who
provide support to Hawke’s Bay, we also
partner with EMS who bring the added
benefit of local experience and has enabled
the two firms to collaborate regularly.
GHD uses EMS for planning services while
EMS has utilised GHD’s engineering staff
for services such as traffic engineering,
geotechnical investigations, and water/
wastewater design.
GHD has extensive
experience in property
and buildings such as
the LAV Hangers at
Linton Army Camp.
“This approach provides national best
practice delivery from a local team with
projects such as the Whakatu Arterial for the
Hastings District Council being leading edge
in terms of the design by enquiry process
which resulted in the Notice of Requirement
being granted for the project to proceed to
construction."
The expansion of the team and services has
led to delivery of a wider range of projects
as well as delivery further up the east coast to
Wairoa and Gisborne.
www.ghd.com
18
THE
Why a Mortgage Advisor?
There are many benefits to using a
mortgage advisor/broker, but since the
industry’s heady heights in the late 90s
and early 2000s, they’ve become a best
known secret.
I’ve been back in the mortgage advisory
industry for 12 months, so I thought I was
well qualified to make a few observations
regarding how the market perceives my
industry.
The first stark observation is that the market
has generally forgotten what a Mortgage
Advisor (Broker) does. Therefore my first
job has been to educate the market about
what I do.
I am an intermediary between you (the client)
and the Lender therefore I work for you.
However I’m remunerated by the lender,
which means using my advisory service to
arrange your finance, does not cost you.
When you engage my services we agree on
what I will do for you in regards to obtaining
your finance based on your specific needs.
Once we agree on the terms of engagement
I will:
• Agree on areas of advice requirements
and establish our terms of our
engagement
• Get to know you and gather all
necessary facts of your situation
and identify your specific needs and
objectives
• Analyse and research your
circumstances and develop strategies
to meet your needs and objectives
• Facilitate the application process for
agreed products and services
• Prepare and present a statement of
advice outlining my recommendations
and implement any such agreed
recommendations
• Monitor the implementation and review
these strategies and actions
• Provide an ongoing service of assisting
you in managing the re-fixing of your
mortgage facilities.
You may be thinking based on the above
why don’t more people use the service where
the sole focus is the client’s needs? The
reason for this is that lenders prefer you to
go directly to them, so that they can control
the process.
The reason why it can be so effective using
an advisor is the banks know we have access
to most of the other main lenders products
in the market therefore if you don’t get what
you want from one lender I can
approach another.
Another observation I have made
is lenders have introduced a whole
raft of employee lending packages
for their corporate, government
and business client’s which has the
desired effect of attracting those
employees to those lenders to take
advantage of the “special package.”
It's human nature to be drawn
to something that is supposedly
treating you better than ‘Joe Public’
however how do you know you
are getting the best deal regardless
of the apparent benefits of the
“special lending package.” This is
where an advisor can be beneficial
to use to negotiate the deal on
your behalf.
Advisors have partly filled
the relationship gap which
was once looked after by your
local banker due to the banks
decreasing branch staff numbers
or replacing some of the old wise
owls from their lending teams.
This has left a relationship gap.
So what does this mean?
Recently I helped a lovely couple
who have two businesses. They
required finance to purchase a
property to live and run their
business from. They engaged my
services with specific needs in
regard to the loans they required.
I approached three banks on their behalf,
saving them their time and getting the
desired result they needed to achieve their
objective.
As a matter of interest out of the three
lenders I approached one declined the
application, one approved it and the other
was very interested to take the application
further. Once again an illustration of the
benefits of using a mortgage advisor.
The other point of difference was the client
was able to contact me in the evening and
in most cases they got a response from
me that night. Therefore the client knew I
had their back and was available to discuss
their application when they needed to
within reason.
Bridging finance needed
Another client had to arrange bridging
finance urgently as they had a deadline to
meet their incumbent bank couldn’t come
to the party however I was able to secure
a loan offer for them from another lender.
“I am an intermediary between
you (the client) and the Lender
therefore I work for you.”
– Darrin McCormack
The point of difference is I have access to a
number of Banks’ lending criteria, unlike a
banker who can only work with the criteria
of the bank they are employed by.
By using a dmconsult advisor it’s all about
you, we will not beat around the bush. We
will call it as we see it, there is no point
stringing a client along with an application
that can’t be approved however we will not
leave it at that we will inform you what needs
to be done to help you attain your objective.
It is our role to look outside the square for
you but work within lenders’ criteria and the
regulatory framework the whole industry
must adhere too.
Darrin McCormack has 30 years’ experience in the
Banking, Broker, advisory industry.
You can contact Darrin at
www.dmconsult.co.nz or 027 476 3816
THE
19
PRO
Feature
The Future
of Education
By Damon Harvey
CODING, CREATIVITY, COLLABORATION AND BEING CRITICAL
THINKERS ISN’T SOMETHING YOU WOULD USUALLY ASSOCIATE
WITH PRIMARY SCHOOL STUDENTS.
Well that’s until now and at Napier’s Te Awa
Primary School, year 1 to year 6 students are
not only learning to spell, read and count but
also learn computer code to create their own
digital games.
Three years ago the school’s principal Tim
Van Zyl decided that the school with 160
students would embrace new technology in
a way that wouldn’t put too much financial
pressure on parents.
While other schools introduced ‘bring your
own device’, Tim was unsure of what was
going to be best for his decile 1 school, so
he went and did a graduate diploma in ICT.
“I decided to get the knowledge first before
jumping on the bandwagon of any particular
device.
“A lot of research was pointing out that
tablets are more for singular use devices and
more suited to reviewing information rather
than being a creating tool.
20
THE
He then talked to leading IT support
company Computercare about installing
Multipoint, which was then introduced in
the junior school and Google’s chromebook
computers and Google classroom software
in the senior school.
Multipoint is a small terminal device that
connects the teacher to students. The
teacher can view or take control of what’s
on the student’s device.
“We wanted devices that enabled students to
get together and that’s what computers do,
we could have three to four students to sit
around a computer and be creative thinkers
and problem solvers themselves.
“Senior classes have one-to-one chrome
books, using Google classroom and the
rest of the school has multipoint, which is a
more secure network.
“The teacher has a server and a monitor
giving them full control of what individual
students are doing. They can also display a
student’s work onto a whiteboard screen,”
he says.
The decision has paid dividends and in 2012
seventy nine percent of its students were at
or above the national average for reading,
mathematics and writing in 2012 and was
above other higher decile schools.
In 2013 the school did even better, with the
school reaching 84 percent, as reported on
the Ministry of Education website.
Tim’s wife Greta, a teacher at the school sees
the benefits firsthand and says the software,
which is preloaded into Chrome is accepted
into the New Zealand education curriculum.
“It’s a blended learning environment using
computers as a tool, just like a pencil and
calculator.
“We use international numeracy and literacy
programmes and enquiry learning,” Greta
says.
PRO
Feature
Programmes used include Mathletics, Lexia
and Sunshine Online and there are “lots and
lots” of free online programmes.
Lexia provides personalised learning on
fundamental reading skills, which accelerates
reading skills development, predicts
students’ end of year performance and
provides teachers data driven action plans.
“My classroom is split into three groups.
One will have direct teaching with me,
teaching strategies; another group is doing
a follow up activity out of a text book and
the other group is doing a set online activity,
all of which is following the NZ curriculum.
They then rotate around,” she says.
Tim says teachers can see progress and gaps,
which allows them to target specific learning
needs.
“With Lexia students progress through
the questions and are marked as they go
through. It shows specific areas within each
strand that they need to work extra on.
“Our students can actually challenge others
from around the world. They do like
challenges, they can ‘live’ challenges and
they can do that with anyone that’s online
at the same time wherever they are in the
world.
“There’s a world leader board, which we’ve
topped and that’s their goal to be top class
or top student."
Te Awa Principal Tim Van Zyl.
“We try to avoid too much of an emphasis on IT. We don’t know what kind
of jobs our children are going to have. All we can do is give them a range
of skills. It’s not about giving them the answer, we’re teaching them skills
in order for them to go out and do whatever they choose to do.”
In a world experiencing rapid explosion of
technology, Tim says all they hope for is that
they are teaching students to become critical
thinkers.
“We try to avoid too much of an emphasis on IT. We don’t
know what kind of jobs our children are going to have. All we
can do is give them a range of skills. It’s not about giving them
the answer, we’re teaching them skills in order for them to go
out and do whatever they choose to do.
“When we came out of school we had been taught to do
particular skills that could done anywhere in the world such as
write neatly, basic maths, grammar so that no matter where you
went you would fit in.
“The jobs that they’ll be doing aren’t even created today.
“We are trying to teach kids to be creative, collaborative,
have good communication skills, and be critical thinkers
and if we can get that into our students then anything
is possible,” Tim says.
– Tim Van Zyl
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THE
21
BUSINESS PROFILE:
From left: Ian Jennings, Cameron Drury, Vicki Wilkins, Roger Wiffin & Joe Hallam.
YOU MAY HAVE SEEN THE “CHEAL” SIGNS ON PROPERTY
DEVELOPMENTS AROUND HAWKE’S BAY RECENTLY AND
WONDERED WHO WAS BEHIND THIS BUSINESS AND
WHAT DO THEY DO.
Well to set the record straight Cheal isn’t a new business. In fact it was established
75 years ago by Laurie Cheal in Taupo in 1940, and now has branches in Taupo,
Taumaranui, Ohakune, Whakatane, Rotorua and Napier. Over the years the
company has continued to develop its geographical reach as well as the services it
provides.
Cheal offers extensive expertise across the fields of engineering, surveying, planning
and 3D laser scanning throughout the Central North Island. The Hawke’s Bay
operation was established three years ago with local lad Cameron Drury at the helm.
Cameron, has worked for the Hawke’s Bay Regional Council and the Napier City
Council, as well as his own private practice. He could see scope for bringing like
minded and skillful people together under the one umbrella of a multi-disciplined
firm. He quickly developed a team of experienced planners and engineers with
planner Roger Wiffin, design engineer Joe Hallam, geotechnical engineer Ian
Jennings and operations support Vicki Wilkins.
Like Cameron, Roger has worked as both a consultant and within council. He has
a wealth of knowledge and experience as well as an impressive track record across
commercial and land development activities.
Joe Hallam is an experienced design engineer with key strengths in designing
and constructing land development projects and stormwater
management solutions.
Ian, joined the team and provides a local Geotech resource to
undertake and manage foundation investigations, water harvesting
projects, subdivision developments, roading projects, land stability
analysis and retaining wall design. Vicki focuses on operations and
assisting with the growth and development of the Hawke’s Bay
branch and wider company.
“We’ve taken an innovative yet practical approach, problem solving
abilities and professionalism and applied to these to the areas in
which we work, and are proud of the projects that we’ve been
involved in,” Cameron says.
Touching many sectors, the team is involved in land
development projects, water allocation matters,
commercial developments and municipal projects,
and provides strategic advice from the feasibility
stage of a project to its completion.
Cheal already boasts an impressive portfolio of
local success stories such as the East Pier Hotel
redevelopment, the new retail complex on the corner
of Georges Drive and Kennedy Road in Napier, the
new carwash in Hastings, and the upgraded medical
centre opposite Anderson Park.
Cheal has also been instrumental in creating a global
water consent for growers within the Twyford area.
“This is a product of innovative thinking around
how water resources are allocated and managed.
Working well with key associates is of primary
importance to the company, and Cameron and his
team foster good relationships within the regions
five Local Authorities.
“We have great working relationships with all the
councils and work hard at maintaining these. The
better we can work with the councils the better we
can work for our clients.”
Cameron and his team are passionate about the
growth of Hawke’s Bay.
“We’re all local and we take our role in the
development of the region very seriously. This is
the mantra of the wider company which is focused
on developing and supporting the regions. We are
small enough to provide one on one service that we
all like and expect, yet have the capacity to resource
the demands of larger projects.”
Talking to these guys you get the sense of a 'can
do' attitude, but it’s the underlying strategic thought
and innovative approach together with an indepth
awareness of what’s going on in the region that
makes these guys really interesting.
With a desire to work alongside a growing network
of colleagues providing complementary services,
the team is well placed to contribute to the
development of the region in what seems to be a
fresh and exciting manner.
www.cheal.co.nz
“WE’RE ALL LOCAL AND WE TAKE
OUR ROLE IN THE DEVELOPMENT
OF THE REGION VERY SERIOUSLY.”
— CAMERON DRURY
Cheal was involved in the redevelopment of the East Pier Hotel complex.
22
THE
NEW KIDS
ON THE (Sun)
BLOCK
BY SARAH THORNTON
Olly and Martha Van Arts are the brains behind Skinnies, a sun protection gel shaking
up the sunscreen category in supermarkets and pharmacies around the country.
The idea for Skinnies arrived on a hot
Hawke’s Bay weekend when Olly and Martha
were in their garden doing what most Kiwis
do: mowing the lawn and enjoying the
summer’s heat.
“I was slathered with greasy sunscreen. It
was greasy, sticky and I was sweating it off
- it wasn’t pleasant,” says Olly. “As a family
that spends a lot of time outside in the
summer, we’re aware that we need to protect
our skin from the sun’s harsh glare. But
traditional sunscreens don’t deliver a very
good experience. We knew there should be
an alternative, something that felt good on
your skin, that only needed to be applied
once a day and still gave great protection.”
After consulting with friends and colleagues,
the pair realised a gap in the market existed
for a new style of sun care and set about
creating their brand, Skinnies.
‘Disrupting the market’ is ad-speak for
launching a new product that shakes up its
category, a product that makes consumers
think and feel in a different way. Martha and
Olly, who own an advertising agency, had
the right credentials to create a brand that
would stand out from the rest.
Skinnies’ branding is tongue in cheek, a
little irreverent. The name gives a nod to
its relationship to skin, but like Charlie’s, a
name which has nothing to do with juice,
Skinnies doesn’t explain itself completely
and its advertising is punchy, modern
and creative.
The major difference between Skinnies
and traditional sunscreen products is that
Skinnies has no water in it. “Most brands
have between 50 and 70 percent water in a
100ml bottle. Ours doesn’t have any.
As an environmental engineer, Martha
needed to ensure Skinnies’ formulation and
its impact on the land was a positive one.
“Skinnies is an efficient product – there’s no
re-applying and when it washes off it doesn’t
clog up the waterways. The formulation is
made with the least ingredients possible,
with no preservatives. It’s a gel in its most
natural form.”
“Sunscreen is a listed medicine so it has to
work. We had to improve the formula to
meet new standards and did this with the
help of funding support from Callaghan
Innovation. There is a lot of investment
in R&D, testing and compliance and the
funding has meant we can now produce a
product that meets both New Zealand and
international standards,” says Olly.
Olly and Martha Van Arts
In the early days the couple say they were
“bright eyed and bushy tailed” selling
Skinnies by cold-calling pharmacies and
boutiques. The past four years have seen
production increase from 1,000 units to
between 10,000 and 15,000 units and to
meet the growing demand for Skinnies
in pharmacies and supermarkets, Martha
and Olly recently enlisted an Auckland
distribution company.
“We’ve ramped up distribution and this
year we’ll be stocked in 500 to 700 stores
throughout New Zealand and Australia.
Skinnies is also finding its way further
afield, with an order recently exported to
Switzerland.
“Being a seasonal business, 80-90 percent
of our sales occur between August to April.
The Swiss licence enables Skinnies to be
sold throughout Europe in our off-season.”
Skinnies’ marketing is fun and positive with
universal appeal. The company sponsors
mountain bike champions, rowers and
surfers. Cricketer Brendan McCullum uses
Skinnies and it’s also the official supplier to
NZ Hockey.
Six new Skinnies products are currently in
development. “We are working on a tanning
gel, a tinted gel, a baby product and a gel for
extreme athletes. The Callaghan Innovation
grant is helping with our research and
development of the range. It’s a very
exciting phase in our business.”
www.gotskinnies.com
My idea of financial freedom
Getting up early to fish on
the Tukituki River
Whatever your idea of financial freedom, we can
help keep your vision on track.
At Spicers we have been providing specialist
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A disclosure statement from your Adviser
is available, on request and free of charge.
THE
23
GROWING BUSINES
Blazing A Better
Business Trail
– Hawke’s Bay’s Business Hub Steams Ahead
The open plan entrance with cafe
By Alisha Neilson
Good business leaders create a vision,
articulate that vision, passionately own
the vision and relentlessly drive it to
completion. It seems without exception,
Hawke’s Bay’s top business leaders
epitomise that character and drive the
result of which we can now all benefit
from.
Hawke’s Bay’s Business Hub located in Ahuriri
is attracting growing attention from central
government since opening its doors in May, as
a national first ‘one stop shop’ business
support centre. What makes it unique is the
range of development agencies working
cohesively within a purpose-designed facility
to support local business growth. It also
Jason Forbes, Managing Partner–
BNZ East Coast
Chris Collins, Chief Executive – EIT
Collaborating EDA’s under one
roof has similarities to our business
model at BNZ. Seven years ago we
took down our internal silos and
introduced BNZ Partners.
We represent 5 core segments
(property, business, commercial, agribusiness, private banking) on a one
to one relationship model. We are
well designed to support customers
at every stage of their growth path.
Our mission is to be the bank FOR
NZ by helping New Zealanders
be good with money. We believe in
a high achieving Hawke’s Bay, by
enabling business growth.
Supporting the Ahuriri Business
Hub was therefore an easy decision
for us.
EIT strongly supports strategies that
are business friendly and support the
advancement of business enterprise
in Hawke’s Bay.
24
THE
provides an environment for collaborative
projects. It has been the brainchild of
Business Hawke’s Bay (BHB), that, back in
2012, identified the need for more – visible,
accessible and coordinated business support
services.
Hamish Whyte – Furnware
Tom Skerman, Economic
Development Manager – HBRC
Over the past 15 years I have called
upon the services of many agencies
to assist me to grow my business.
If I were to start my journey again
That’s one reason why we supported and walk into one place with all the
the temporary location of these resources and people I need, this
agencies at EIT while the Business would be it.
Hub facilities were being developed The Business Hub is a positive
in Ahuriri.
initiative for Hawke’s Bay. Without a
Bringing key agencies together under doubt it will drive economic growth
one roof in a business focused and all residents will benefit from
environment is a great step forward, better resources and more jobs in our
and EIT looks forward to continuing community.
Critical to the success of any
strategy to lift the region’s economic
performance is a well-resourced, coordinated and collaborative effort on
behalf of the agencies devoted to
growing and attracting business to
Hawke’s Bay.
to work with the Hub and its agencies
in supporting the businesses and
business ventures in HB.
By bringing central and local
government agencies under one
roof together with the likes of the
Chamber of Commerce, Icehouse
and the Food Innovation Network,
Business Hawke’s Bay has set the
platform for a step-change in the way
we engage with existing and future
businesses.
SS – GROWING THE REGION
What was once seen as an ambitious
initiative littered with obstacles has finally
reached fruition, and while it is still early
days, BHB chief executive Susan White
says the feedback already from the business
community is resoundingly positive.
“The drum has started beating and with
word of mouth so strong in our region,
volume has been steadily building. Already
we’re seeing our inter-agency relationships
strengthen; we’re all under the one roof
now, so it’s easy to tap someone on the
shoulder to meet that business owner,
clarify an issue or get something nailed
down,” Susan says.
The first thing that strikes people when they
walk through the doors of the Business
Hub (formerly the BigSave furniture store),
is its welcoming feel. Whether it’s
due to the café style entrance or
the friendly staff, it is by no means
intimidating.
Icehouse, and representatives from HBRC,
HDC, and NCC, the Hub also provides
‘hotdesks’ and conference facilities for hire.
It has played host to a series of Free Trade
Agreement roadshows for Taiwan and
South Korea, hosted workshops and training
sessions, and more recently provided the
venue for meetings between business groups
and Jetstar delegates. Not to mention the
networking events held by the individual
members of the Hub themselves.
The amount of business engagement is a
good lead indicator for the success of the
Business Hub. An example cited by Susan
is the Better by Lean workshop, brought
to the region through the joint efforts
of NZTE and BHB during May, with the
support of Callaghan Innovation. Of the 12
“Our self-help café area sets the tone;
people can come in, have a chat and
make connections on the fly or head
to our adjoining conference and
meeting rooms,” she says.
Business Hawke’s Bay provides connections
and information to businesses and investors, lead
specific projects, and support to initiatives led by
others. We tap into local, national and international
networks to identify sources of support and
information to improve business productivity,
capacity, capability and growth.
Susan White [email protected]
Food Hawke’s Bay works with growers,
manufacturers and the hospitality industry by
create connections, and share knowledge. FHB
also assists companies with compliance issues,
marketing and finding new sales channels. It also
organises annual events to promote the food and
hospitality sectors.
Patricia Small [email protected]
www.foodhawkesbay.co.nz
NZTE is always on the lookout for smart, forwardthinking companies with potential for international
growth that will provide lasting benefits for
New Zealand. We identify, plan for and act on a
company’s biggest opportunities for international
growth. We do this by boosting the company’s
global reach and market knowledge, and building
their capability to succeed internationally.
Sue Greenwood
[email protected] www.nzte.govt.nz
The NZ Food Innovation Network (NZFIN) is an
accessible, network of science and technology
resources that has been developed to support
the growth and development of food & beverage
businesses. The focus is to provide access to
the expertise required to take new food products
from idea to commercial success. NZFIN has a
Business Development Manager placed in Hawke’s
Bay to work alongside companies situated on the
East Coast of the North Island.
Sally Gallagher [email protected]
As well as housing BHB, Business
Central, Export NZ, Food Hawke’s
Bay, NZ Food Innovation Network,
HB Chamber of Commerce, New
Zealand Trade and Enterprise, The
Duncan Wallace, Hawke’s Bay
Technologies
Amanda Martin,
Regional Manager – NZTE
Hawke’s
Bay
Technologies
(HBT) provides the IT network
infrastructure enabling Hub agencies
to connect and communicate. The
state of art wireless network provides
access to internet cloud services and
internal line of business applications.
The Hawke’s Bay Business Hub
will help us collaborate regionally
to ensure Hawke’s Bay companies
succeed internationally.
In addition, HBT has provided full
access to printing and scanning
services via their Ricoh multifunctional printers, with users
swiping security cards at the printer
to retrieve print jobs on demand,
securely and right on time. HBT is
the go to IT services company for
the Business Hub and Hawke’s Bay
businesses.
Meet the agencies
at the Business Hub
Craig Cameron, Economic Development
Manager – Hastings District Council
Jeff Parker, Managing Director –
Hurford Parker
Hastings District Council sees the
Business Hub as the place that brings
together key organisations whose
role is to support and promote
New Zealand Trade and Enterprise business growth in the Hawke’s Bay
(NZTE) is proud to be part of this economy, because Great Things
Grow Here.
business-led vision.
Our purpose is simple: to grow The Hub partners’ collective
companies internationally - bigger, expertise and networks bring ideas
better, faster - for the benefit of New and resources that any business
Zealand. If your company is looking owner, manager or stakeholder can
to internationalise come and visit us access to grow their business, in turn
at the Business Hub for advice and growing the Hawke’s Bay economy
and generating new jobs.
support.
Hurford Parker is proud to support
the HB Business hub. As a local
business with national strength
and global capability we see the
importance of contributing to
the wider Hawke’s Bay business
community of which we are apart.
The success in any business is around
growth and efficiencies. The Hub is
at the forefront of contributing to
a strong local economy, which we all
agree is necessary to future proof the
Hawke’s Bay.
Hurford Parker provides innovative
tailored insurance solutions and
risk management advice, ensuring
competitive pricing to its established
clientele.
THE
25
PRO
Feature
companies from Hawke’s Bay and beyond
who participated, five have so far signed up
to continue with a couple still considering.
“That’s a solid conversion rate and means
those businesses are planning to invest
in improving their business performance
through the application of lean principles,”
explains Susan.
Establishing the Business Hub took a
huge commitment from the board of
Business Hawke’s Bay and chairman Stuart
McLauchlan estimates some members put in
up to 300 voluntary man-hours, getting the
Business Hub off the ground.
“It’s not the end game - our commitment is
for the long-term. We see the hub evolving
over time with the potential for other
agencies (who can contribute to the purpose
of ‘unleashing business potential’), joining
us to address gaps and add to the upside
potential,” says Stuart.
“What people need to realise is that this is
not a commercial venture, far from it. It’s
the work of a passionate group of people
who want to see business development in
Hawke’s Bay prosper because every one of
us can see the wider benefits that come from
working together.”
It is thanks to the partners and supporters
of the Business Hub, including businesses
and local councils that the Business Hub has
been established.
Now it is up to local businesses to leverage
off the facilities’ services.
Stuart McLauchlan, Partner –
Langley Twigg
Langley Twigg supports and
sponsors a number of business and
community activities in Hawke’s Bay.
Supporting Business Hawke’s Bay
and the Business Hub has been a
no brainer. Bringing these agencies
together under one roof and
working together to support business
is fantastic. One of the biggest
opportunities and gains we can make
in the Bay is to take our existing
businesses and grow them – take
them to the next level, as we believe
this will naturally lead to increased
productivity, business activity and
more jobs in the region.
Langley Twigg is all about providing
advice and services to take your
business to the next level.
26
THE
Agency pods at the Hub
Businesses Share Their
Experiences of The Hub
Being proactive in business is fundamental
to success and nobody knows that better
than Jenni Giblin, director and founder of
specialist consultants Giblin Group.
Jenni’s company is fast becoming recognised
as a national leader in facilitating large capital
projects for local government via funding from
central government coffers. With around 70
percent of the country’s smaller to mid-size
councils now clients, Jenni saw the need to
James Rowe, Napier
City Council
integrate systems to help ensure the company’s
rapid growth remains sustainable. She applied
for The Icehouse Owner Manager Programme
Scholarship and to her delight, she was one of
eight candidates accepted.
“It was fantastic to win. Kate de Lautour at
The Icehouse put a solid case together for me
and was brilliant to deal with. As a selected
business owner, I’m extremely appreciative
of the benefits this course will deliver.”
Ken Sutherland, Chief Executive
– Unison
Napier City Council strongly
supports the Business Hub and local
businesses. We are endeavouring to
build a strong business culture that
will support start-ups, high growth
companies, investors and new
businesses to the region.
The Unison Group is passionate
about the Hawke’s Bay Hub. It
showcases the power of collaboration,
where a region’s business people and
stakeholders can come together with
a single vision to promote economic
benefit and deliver a better future for
Council plays a key part in a new Hawke’s Bay.
regional collaborative approach to The Hub is a vital initiative for our
business attraction and growth. We great region and one we are delighted
work with the other partners at the to be part of.
Hub to ensure that businesses in To see businesses reap success from
the region have a go-to place to get this initiative, and help to keep
support, help and advice, whatever the Hawke’s Bay economy strong,
their challenges.
reaffirms why we got behind the Hub
for the greater benefit of the Bay.
Robert Darroch, Managing Director
– Future Products Group
Future Products Group proudly
supports Business Hawke’s Bay
and has been actively involved with
bringing the hub concept to reality.
As a Hawke’s Bay-based business,
we believe our region will benefit
from this fantastic facility and more
so from the capable and relevant
team of agencies that are ready and
willing to help grow the Bay .
The establishment of the Hub
has nailed home the fact that our
region has some fantastic people
helping many local businesses
navigate the challenges of growth
or sustainability.
PRO
Feature
the Business Hub is invaluable. BHB
is a really well run organisation whose
board members have skin in the game.
It goes without saying that having all our
support agencies in one space enables the
cross-pollination of ideas, which is really
important.”
As export manufacturers of premium
quality meals and meal ingredients,
GreenMount Foods based in Hastings’
Omahu Road is also reaping the benefits of
the Business Hub. Technical sales manager
for Australasia, Rebecca Klee believes that
with the training and workshops the Hub
provides, their company will achieve its
goals faster.
“The uniqueness of having all Hub agencies
under one roof speeds up our progress
exponentially. Processes that traditionally
would have taken weeks, can now take a
matter of minutes thanks to the agencies’
accessibility.”
As manufacturers of 2000MT of vegetable
products, soups, sauces, stocks and prepared
meals bound for Australia, Singapore,
Japan and Dubai, the importance of food
innovation and ‘adding value’ is paramount
for GreenMount Foods.
Economic Development Minister Steven
Joyce with Business HB CEO Susan White.
Giblin Group also regularly engages with other
agencies within the Business Hub, namely
NZTE (New Zealand Trade and Enterprise)
and Business Hawke’s Bay. As a growing
organisation, Jenni is proud to see a region like
ours leading the pack.
“For businesses that don’t know where to go
to access information, getting linked up with
The company’s staff regularly attend BHB
and The Icehouse run workshops along
with Export HB meetings, while also
working closely with NZTE, Food HB,
the NZ Food Innovation Network and
Callaghan Innovation.
“As a small company like ours it’s critical we
use the resources and information available
to us. The Hub has everything we need the meeting room and break out facilities
are first rate, right down to the coffee! Its
location near the airport is fantastic and
with a concierge to guide you, you instantly
feel welcome.
Meet the agencies
at the Business Hub (cont.)
Callaghan Innovation is the government’s
innovation agency. We give businesses access to
specialist research, engineering and commercial
expertise, and R&D grants they need to succeed.
Jenny Brown
[email protected]
www.callaghaninnovation.govt.nz
The HB Chamber of Commerce is the only
independent business advocate in HB. It promotes
ways to help council’s create an environment that
makes doing business easier in HB. The Chamber
offers; events for commercial connections, Business
Mentors NZ, Regional Business Partner and the
youth YES, to stimulate commercial literacy in HB.
Wayne Walford
[email protected]
www.hawkesbaychamber.co.nz
Business Central is an HR and employment
relations specialist providing advisory, legal, training
and advocacy services to help Hawke’s Bay and
Gisborne businesses stay safe, remain successful
and get ahead.
Anne Rocard
[email protected]
www.businesscentral.org.nz
ExportNZ is a membership organisation that works
alongside businesses to support and helps them
grow. It is a national network that has strong links
with government agencies and non-government
organisations. Through the network we provide
knowledge, information, contacts, training and
support services.
Amanda Liddle
[email protected]
www.exportnz.org.nz
New Zealand Food Innovation Network provides
food and beverage companies from SME to large
corporates that have export potential, to access food
and beverage technical specialists in added-value
processed foods. We facilitate links through internal
and external networks (Universities and CRIs) in food
innovation.
www.foodinnovationnetwork.co.nz
“We feel like we’re on the fast-track now…
with resources like this, why not tap
into them.”
Hamish White, Chief Executive – NOW
The decision to get behind
and support a business hub for
Hawke’s Bay was an easy one.
Hawke’s Bay’s future is dependent
on supporting and growing our
existing businesses and nurturing
new businesses.
So enabling ‘doing business in
Hawke’s Bay’ to be as easy as
possible by having a business hub
where all of the business support
agencies are physically based
together and fully collaborating
cuts straight to the heart of this.
Monday
28
•
•
•
•
BUSINESS
CENTRAL
Empowering Business in the Central Region
an
THE
27
PRO
Feature
Hadley Brown
Synergies opening doors for
Colliers Rural and Agribusiness
Farming in New Zealand has moved
on significantly in recent times and
while the traditional family farm is still
a cornerstone in the rural sector, a trend
has developed towards investment in
agriculture and horticulture industries as
investors look to diversify and grow their
portfolios.
With this trend has come a whole new
market of buyers and more prominent than
ever is the synergy developing between the
investment and the rural worlds.
One company that is noticing this synergy
is the recently established Colliers Rural
and Agribusiness, a division of Colliers
International.
Managing Director Hadley Brown says that
move to establish a rural division of the
business was a ‘no brainer’.
“The cross-over we are seeing with the
commercial division is significant. Two out
of the three farms we have sold in the last
month have been successfully concluded
with existing commercial clients.”
Hadley says that in all his years in real
estate, the momentum the company has
experienced since launching in February has
been like nothing he has seen.
While the Real Estate Institute of NZ
(REINZ) reported fewer farms for the three
months ended May 2015 than for the three
28
THE
months ended May 2014, Hadley says the
demand has been unprecedented and he
attributes this to the many doors that are
opening through the Colliers commercial
networks.
Since the company’s launch, Hadley and his
fellow colleague Mike Heard have sold over
$10 million worth of farms, with Ruawai
farm on Dartmoor Road and Seven Oaks
farm on Glengarry Road selling significantly
over valuation for $5 million and $2.6
million respectively, with numerous parties
presenting multiple offers to the vendors.
“There were 46 viewings of the Dartmoor
Road property and the tenders that we
received were in the double figures.
“We are in an enviable position with the
commercial arm of the business accounting
for 80 percent of the Hawke’s Bay market
share, giving us access to large databases
of qualified buyers. We are able to really
maximise the opportunities we have
working closely with the commercial team
as well as the existing networks Colliers have
throughout New Zealand and Australia and
that has been evident in the sales of Ruawai
and Seven Oaks,” he says.
While Hadley agrees that traditional
transactions between those in the industry
are still the key to rural real estate, he says
that the team is having to increasingly
look outside this for other more suitable
Seven Oaks on Glengarry Road sold
recently for $2.6m.
“There were 46 viewings of the
Dartmoor Road property and the
tenders that we received were in
the double figures.”
– Hadley Brown
structures to meet investors’ needs. The firm
has been involved in some large portfolio
opportunities, coming up with equity fund
scenarios to restructure existing models.
“There is a lot of optimism out there and
professionals who love the idea of having
ownership in a farm but they don’t want
anything to do with running it, are investing
in the sector by partnering with a young
farmer, that has all the skills and knowledge
but limited capital.”
He says that with some of the deals they are
doing, there may not even be a transaction in
terms of land. The original landowner may
stay on but the farmer wants to release some
equity and new capital is introduced.
Hadley says that the nature and scale of some
of the transactions they are dealing with are
akin to large commercial transactions as
Ruawai on Dartmoor Road sold for $2m over valuation for $5m.
groups with large portfolios look to spread
their investments over sheep, beef, dairy,
horticulture and viticulture sectors across
Australasia.
“We have been working closely with our
Australia offices to satisfy these buyer
requirements and when their buyers are
looking into the New Zealand market,
Hawke’s Bay is often top of the pecking
order with prime land suitable for the
primary sector.”
He says that the Hawke’s Bay horticulture
sector is particularly looking ripe for
investment as the apple industry is
experiencing good returns and driving
optimism with land being re-developed back
into apples.
Hadley believes that the relationship
between investment and the rural sector will
only continue to grow, “the synergy we see
between the investment and rural sectors
translates well into the Colliers International
Hawke’s Bay business. It’s an exciting time
to be in rural real estate and we look forward
to seeing the business grow alongside
the industry.”
WE WILL
WORK THE
LAND AS
HARD AS
YOU DO.
FARMS • HORTICULTURE • VITICULTURE • LIFESTYLE
Hadley Brown 027 442 3539 Mike Heard 027 641 9007
Colliers International New Zealand Ltd Real Estate Agent REAA 2008
RURAL & AGRIBUSINESS
THE
29
PRO
Primary
Dairy goat farm
takes off,
in Hawkes Bay
By Vivienne Haldane
As they launch their new dairy goat venture, Tuki Tuki
Dairy Goats, father-daughter team, David Phillips and
Lydia Baty are feeling very positive.
Their happiness was apparent the day they showed The Profit around
their brand new, state of the art, milking facility. “It’s purpose built
and as good as you can possibly get,” says David.
The family, who has farmed in the area for three generations,
recently converted 41 hectares of sheep and beef farm to a goat
farm and plan to be milking around 650 goats this spring.
They are perfectly poised to take advantage of new developments in the
goat milk infant formula market that has the potential to boost the region’s
economy over the next 10 years to the tune of $360 million.
David estimates the net returns per hectare will be four times that
of sheep and beef farming – an attractive proposition for the
next generation of farmers. “This move is really about
succession planning. Our children can’t afford to buy
this land and we’d like the farm to stay in the family,
so we had to find some way of farming with a profit.”
Adds Lydia, “We are really proud of what we’ve achieved
so far. It’s been a hard slog and there have been lots of
hurdles to go through what with contending with the mud,
resource consents and contractors.”
With the completion of a covered shed that has a holding capacity of
1000 goats and kids, production is about to begin.
The internal rotary shed has been set up to handle milking goats for
ease and efficiency. It can be operated by two people and will be fully
automated when technology allows. “Every single goat and its details
will be tracked via computer. We won’t have to wait for the milk to
go to the factory to work out the grades and how much volume of
milk has been produced,” says David.
Lydia, who manages the farm along with her husband Sean,
graduated from Lincoln University with a Bachelor of Commerce
majoring in Agricultural Management and Rural Valuation
before working as a rural bank manager in Waikato. That’s
when she first became interested in dairy goats. She visited a
few farms and came back home and told her father, ‘this is
what we are going to do on our farm.’
The temperate, sunny climate in Hawke’s Bay is ideal for
farming goats. Goats are easier on the environment too
– Lydia estimates their impact is 10 percent of that of a
dairy farm. Goat manure – typically small, hard pellets –
does not pose the same nutrient leaching problem cow
manure does.
Lydia Baty
30
THE
The establishment and
operation of the industry
and the associated value
chain could generate
$1.5 billion
in gross revenue for the region
cumulatively over the next 10
years and
CREATE 178 JOBS,
according to research
commissioned by regional
economic development agency
Business Hawke’s Bay (BHB).
Over the coming decade, a
goat milk formula industry could
contribute
$364m to the region’s GDP.
In 2024 alone, the contribution
to GDP could reach $62.38m –
nine percent of the agriculture
sector’s current GDP.
Source: Business Hawke’s Bay.
Lydia Baty and David Phillips
Having worked as a share-milker in Waikato
for the past year, Lydia was able to gain
valuable skills before starting her own venture.
It also gave her time to do her research and
find a processing facility and a market.
In July, Gregg Wycherley, founder of
Fresco Nutrition Ltd, told attendees at
the Infant Formula Industry for Hawke’s
Bay Conference conference, 'When we
build, we will build here.'
“We have a 5-year contract with our main
supplier Fresco Nutrition – our milk is taken
to Hamilton where it is turned into infant
formula and other milk products.
Fresco Nutrition plans to invest up to
$30million in a spray dryer and canning
facility in Hawke's Bay. It is estimated the
facility will provide around 40 jobs.
INFANT FORMULA SUCCESS
Gregg described Hawke’s Bay as being
an ideal region in which to locate
his operation in terms of its climate,
land prices, Napier Port, transport
infrastructure, water and trade waste
systems and supportive local government.
The infant formula industry is set to
establish itself in Hawke’s Bay with two
different investors making plans to build
facilities here over the next two years.
NZDP’s estimated $80million project
includes a large scale farming operation
for both dairy goats and sheep. Company
managing director, Chris Berryman
said such scale would enable NZDP to
control quality from farm to finished
product – an important factor for access
to some Asian markets.
Chris estimated the new factory – to
be built in 18 months – and farm would
provide a boost to the local economy with
up to 70 new jobs.
The new plant will also manufacture
Shegoa™ Infant formula that is made
from a combination of goat milk and
sheep milk.
It is hoped that the first stage of
development will give NZDP the capacity
to produce up to 15 million tins of goat
milk and Shegoa™ Infant formula, for
export to over 24 countries.
Business Hawke’s Bay food and beverage
programme manager, Catherine Rusby
said, “To have both these businesses
commit to Hawke’s Bay is tremendous.
“It signals that Hawke's Bay is a serious
place for growing and manufacturing nonbovine dairy products.”
ATTN13PRO1407
Fresco Nutrition Ltd, a dairy goat infant
formula manufacturer and New Zealand
Dairy Products Ltd (NZDP, a sheep and
goat milk infant formula manufacturer, plan
to capture the rising demand for infant milk
formula and other nutritional powder.
Milk will also be sourced from other local
goat and sheep farmers.
Caring for your large and small animals right across the bay
Talk to us for the best advice on pre-lamb treatments
Napier - 210 Taradale Road, 06 843 5308
Hastings - 801 Heretaunga Street, 06 876 7001
Waipukurau - 43 Takapau Road, 06 858 9060
Dannevirke - 193-195 High Street, 06 374 7021
www.vshb.co.nz
THE
31
Scott Lawson
PRO
Feature
DEMAND FOR ORGANIC
DRIVES BUSINESS
By Vivienne Haldane and Catherine Wedd
A growing number of consumers would rather pay
more for food, beverages, textiles, health and hygiene
products they know and trust to be certified organic,
according to the latest statistics.
Organic food sales have risen 8–12 percent in New
Zealand during the past two years. The developing
organic market is regarded as an opportunity not
to be missed. According to Organics Aotearoa
New Zealand (OANZ) chair Brendan Hoare, “world
demand for organic products far exceeds world
supply in most categories.”
However, just over one percent of New Zealand’s
farmland is farmed organically, compared to three
percent in Australia and much higher percentages in
most European countries.
The Profit spoke to three Hawke’s Bay certified organic
producers to find out more about how they have
grown their businesses.
LAWSON’S TRUE EARTH™ CERTIFIED ORGANIC FARM
Scott Lawson of Lawson’s True Earth™
Organics thinks food production is the most
important job in the world. It’s the reason
he begins each day with such enthusiasm.
“You have to have a passion to make it work
because food production is hard at the best
of times and organic food production is even
harder,” he says.
Scott and his partner, Vicki Meech, grow
blueberries, potatoes, onions, carrots, potatoes
and barley lucerne on their 65 hectare property
near the Gimblett Gravels, east of Hastings.
They’ve been organic since they began in
1992, became certified in 1994 and launched
Lawson’s True Earth™ brand in 1999.
They are one of the largest producers of
certified organic berry fruit and vegetables
in New Zealand with outlets in niche market
stores and supermarkets all over the country.
Scott chose organic farming over conventional
farming because he’d seen market
opportunities, prior to 1992, with many people
wanting good, safe food. “We started looking
at food production systems and thought that
organics sat well with our ethics, so that’s why
we went into it.”
That integrity is of utmost importance when it
comes to building a brand. “The True Earth™
mantra is that we produce good, healthy,
nutritious, certified organic food from our
family to your family.
“It is hard to quantify how important that
brand is. As with any branding, you work
hard at building one and hope it adds value
and gives you credibility, but you have to walk
the talk as well. We back up our integrity by
being BioGro certified. There’s a lot of green
washing of brands that goes on and people do
get taken to task over it.”
He notes that organics in New Zealand have
had nowhere near the growth enjoyed by
organics in the United States, United Kingdom
or European markets. “It could be that a lot
of people in New Zealand think we are green
and clean anyway. I see a wasted opportunity
here – we have a really strong educated farmer
and producer base and a strong post-harvest,
packhouse export base, as well as innovative
food processors, there’s no reason why we
can’t do more value-adding right through that
whole food production chain.”
True Earth™ customers come from all
sectors. “We’ve got the younger generation
with no kids buying our food, those in the
30–40 age group who are really precious about
what their children consume, as well as the
baby boomers who have more time to focus
on what their grandchildren are eating. We also
have people who struggle to make ends meet
each week but will choose to buy certified
organic products because that’s their belief
system.
In most parts of the world, organic products
can be bought alongside other retail items
and while this is happening to some extent in
New Zealand, it’s not that common yet. “We
don’t want organics being sold separately. You
should be able to go to, say, a wine shop and
be able to easily find certified organic wine. In
supermarkets, if certified organic is placed in
a special section, perhaps buried in the lowturnover areas of a store, it doesn’t sell very
well. Customers can’t find it and staff tend not
to rotate the stocks properly. However, when
you start to offer it, you can grow sales. We’ve
had success with some supermarkets doing
that; it’s all down to how good that retailer is
and how committed they are.”
www.trueearth.co.nz
Source: Better Business Better Future Report, Colmar Brunton (2014).
32
THE
Ben Bostock
BOSTOCK’S ORGANIC FREE RANGE CHICKEN
Bostock’s Organic Free Range Chicken is
another success story on the Hawke’s Bay
organics scene.
In less than a year in business, poultry farmer
Ben Bostock has doubled production to 3,000
chickens a week to meet increased demand
across the country. Word has it that customers
can’t get enough of the organically fed and
optimally raised chicken.
The certified organic producer can vouch that
his chickens are GMO-free, antibiotic-free and
chlorine and chemical-free with no growth
hormones.
Ben says he started out with small orders but
business has grown substantially due to his
steady and targeted marketing approach.
“We made cold calls and focused on building
strong direct supplier relationships. While I
believe our organic free-range chicken would
become popular, ultimately it’s the consumers
who make the choice.
Bostock’s Organic Free Range Chicken is
making its mark in Remuera New World,
which was one of the first to sell the product.
Butchery manager Grant Harvey says, “the
chickens are flying off the shelf. Customers
are coming back and asking for more; they are
telling us the chicken tastes like chicken, the
meat has flavour and the bones are strong, not
brittle. It’s always fresh and reliable.”
Sam Orton, owner of Orton Tailored Cuisine,
says he is seeing an increasing demand for
organic free-range products. “It’s a premium
product, which suits our reputation and the
prestige that we want to carry through our
business. It’s delivered a result for us that we
were looking for.”
Bostock’s Organic Free Range Chicken has
nationwide distribution into all the main
regions through a selection of specialty
food stores, supermarkets and even service
stations.
The wider organic industry is pushing for
the Ministry for Primary Industries (MPI)
and the Ministry of Business, Innovation
and Employment (MBIE) to regulate the
term organic. “It’s a term that can be used
loosely and it is watered down all the time,”
says Ben. “We believe the term should be
regulated because consumers need to know.
It’s frustrating for those of us who have put
a lot of effort and cost into being organically
certified and are doing it properly.”
www.bostocksorganic.co.nz
GROW YOUR BUSINESS THROUGH
Better People.
People are the primary connection between
Performance, Productivity and Proﬁtability.
PRIMARY SECTOR RECRUITMENT
06 871 0450
www.ruraldirections.co.nz
LEARN MORE ABOUT RURAL DIRECTIONS CUSTOMISED SUITE OF BUSINESS SOLUTIONS
THE
33
PRO
Feature
BOSTOCK NEW ZEALAND
Pioneer of organic apple growing in New
Zealand, John Bostock says international
demand for organic produce is at an alltime high.
“This year we have exported record volumes
of organic apples. Our production base has
grown with the addition of more organic
orchards. We are exporting to more customers
in more countries throughout the world than
ever before.
“The demand for organic apples has driven
major growth and helped create more
permanent jobs, with plans to plant more
trees each year for the next five years and
introduce more organic apple varieties as part
of our orchard redevelopment programme.”
John’s company has just launched a new
corporate name and brand to reflect the
positive growth.
The Bostock Group’s three main brands, JB
Organics, JM Bostock Ltd and DM Palmer,
will all now become part of Bostock New
Zealand.
The change of name heralds exciting new
opportunities for the company but John says
Bostock New Zealand’s core values won’t
change.
“Growing healthy, superior tasting produce is
the priority for Bostock New Zealand, which
John Bostock
Video is a strong
visual way to promote
the organic story to
international markets.
Click here to see how
Bostock New Zealand
portrays its natural
growing practices
in a clean, pure
environment.
34
THE
has a proud history of sustainable production.
We believe in educating the wider population
about the benefits of eating well. We are all
about clean and pure, working together as
a community to protect our land for future
generations,” said John.
John’s latest venture is also aimed at getting
more people eating organic, healthy food. He
opened the Bostock Organic Kitchen in June.
The purpose-built kitchen has been designed
as a place for Bostock New Zealand staff and
the public to enjoy premium organic meals.
Bostock New Zealand employs up to 500
people in the height of the season and staff
are welcome to partake of the wholesome
meals cooked by a top chef. All meals are
subsidized and on occasions, free.
“We are strongly committed to the wellbeing of all our staff. We are a country that
has major issues with poor diet, obesity
and sugar, but we can change this by giving
people opportunities to learn new, exciting
and interesting ways to eat healthily.
“By taking away the cost barrier, we hope we
will start changing eating habits,” says John.
The initiative backs his philosophy, ‘we
are what we eat,’ and getting more people
eating well.
www.bostock.nz
Plating up at Bostock Organic Kitchen
PRO
Feature
Andy Tait Jamieson and Sophie Siers
THE ORGANIC FARM BUTCHERY TI KOUKA FARM
Andy Tait Jamieson made the decision
to farm organically because the amount
of chemicals used in conventional
farming bothered him. “I didn’t want
to eat anything that had a whole lot of
chemicals in it and on a farm you see that
all the time,” he says. He was brought up
on a dairy farm in Waikato and in those
days, chemical use was minimal.
Andy, his wife Sophie Siers farm South
Devon cattle and Wiltshire sheep on 750
acres at Waimarama.
“Our philosophy is to produce ethical,
sustainable, free-range, grass-fed meat so
people who want that can have it and know
exactly what they are buying,” says Sophie.
The couple also owns the Organic Farm
Butchery in Hastings. This standalone
business, which is 80 percent wholesale, has
seen a consistent 10 percent growth rate for
the past three to four years.
The butchery is a popular and recognised
brand that supplies pre-packaged meat to
supermarkets, cafés, restaurants and retailers
throughout the country.
They also sell at the Hawke’s Bay Farmers’
Market and have regular customers who buy
their organically raised meats.
When Sophie talks about farming organically
she has a big-picture view. For her, it is not
about short-term gain.
“Profit to us is not about how much money
we make. More importantly, it’s working a
system that has long-term gain and wins on
many levels.
“It’s about sustainable, long-term production
that has lots of profits, so you haven’t
compromised the land or people. You haven’t
used cheap Chinese labour, for instance.
These are costs to all of us at the end of the
day. ”
One of the best things about being certified
organic they say is that it gives people
confidence in what they are buying. And
they are coming to it for a variety of reasons,
according to Sophie. “Some buy our meat
because they think it must be better for the
waterways. They are not convinced about
health or organic but they can make a
difference to erosion or water quality.
Sophie believes that “if anybody wants
anything to change in the food world,
consumers have to be prepared to pay for
food that comes from reputable sources so
they are actually backing their own rhetoric.
“You have to go out and say, I’ve found
a farmer who is doing something about
it, like Scott and Vicki, the Bostocks and
us. When people come to our stall and
say, ‘pigs in crates, isn’t it disgusting? The
government should do something.’ I say, the
government doesn’t need to do anything.
Just stop buying it!”
www.theorganicfarm.co.nz
Sustainable, healthy and pure
Bostock New Zealand grows packs and markets
high quality squash, onions, grain and organic
apples. We are committed to sustainable
growing practices, protecting our land and
rivers for future generations. Our apple orchards
are 100% organic, free of synthetic pesticides
and artificial substances. We believe in having
GE-Free land, fertile soils and clean water
supplies to produce premium products.
If you have cropping land to lease please
contact us:
www.bostock.co.nz
THE
35
Unison’s Smart Network
Driving Efficiencies
Unison has again delivered a strong performance for its customers,
achieving network performance well below regulatory limits, and reporting an
increased dividend pay-out to its beneficial owner, the Hawke’s Bay Power
Consumers’ Trust.
Unison has continued to deliver reliability of
supply to customers, due in part to the continued
roll-out of its Smart Network.
Unison Chairman, Kevin Atkinson has reported
the consumer-owned Company achieved a major
milestone in the last financial year, completing the
implementation phase of its vision to establish a
Smart Network across its three regions of Hawke’s
Bay, Taupo and Rotorua.
“The Smart Network utilises some of the most
advanced technology in the globe, integrated to
create an innovative solution that anticipates
our future environment. Completing the
implementation phase positions the Company to
deliver cost savings and enhanced performance to
its 110,000 customers.”
The next stage of the project involves extracting
the full benefits from these technologies, together
with completing the integration of the Advanced
Distribution Management System (ADMS) – a
world-leading automated network control system
and key enabler of the overall Smart Network
initiative.
“Once fully integrated, Unison will have the
ability to capture and analyse detailed real-time
data from its smart assets, which will ultimately
provide benefits to customers through sustained
reductions in expenditure on assets over the
longer term.”
Whilst researching and deploying cutting-edge
electricity distribution technology, Unison has
also been focused on better understanding future
technologies that will impact how its consumers
use electricity.
With solar generation trending towards becoming
economically viable in the next decade or so, the
Company is trialling solar and battery storage
solutions within a small housing development
in Hastings. Over time this will provide Unison
with first-hand experience of the operation,
performance and potential impact this technology
may have for customers, and on the Network.
“The knowledge gained from this trial will help
inform Unison’s network design and investment
strategies, as well as position us to help customers
understand the technology and make informed
decisions when it comes to energy services.”
Unison Chief Executive Officer, Ken Sutherland,
said that as solar panels become cheaper and more
efficient and battery storage becomes viable for
“Far from fearing a future
where technologies such
as solar generation disrupt
our conventional business
model, Unison is seeking
to embrace the challenge
of transitioning to a world
where customers have
much greater options to
meet their energy needs.”
– Unison Chief Executive Officer,
Ken Sutherland
Unison Chairman, Kevin Atkinson with Richard & Heather Morrish - residents
participating in Unison’s solar energy and battery trials in Hastings.
36
THE
Line Mechanic, Leslie Setu, guides an elderly resident past a worksite on Kennedy Road, Napier. Unison completed this
major project with the Hawke’s Bay Power Consumers’ Trust to replace the overhead network with underground cables as
part of a record year in terms of delivering on its capital and customer projects programme of works.
consumers, traditional business models associated with building additional conventional electricity
generation and transport infrastructure to meet consumers’ demands would come under threat.
“Far from fearing a future where technologies such as solar generation disrupt our conventional
business model, Unison is seeking to embrace the challenge of transitioning to a world where
customers have much greater options to meet their energy needs.
“Our Smart Network Strategy positions us to meet these future challenges, and will improve
our capability to manage our assets through improved utilisation and deferring, if not avoiding,
significant upgrades which will provide long-term benefits to our customers.”
Unison’s Performance
Results
Financial Performance
• Group Revenue $210.5m
• Net Profit After Tax $27.5m
• Capital Expenditure $49.5m
• Equity/Total Assets 49%
• Dividend $9.550m
Network Performance
SAIDI 115 mins – on average, this is the
total number of minutes a customer was
without power over the 2014/15 year.
SAIFI 2.0 – on average, this is the
number of times a customer was
without power over the 2014/15 year.
Subsidiaries
The Unison Group has performed
strongly in 2014/15, with subsidiary
ETEL delivering a strong result for
the year.
Unison Fibre Ltd has continued to grow
the number of customers connected to
its network, with about 1000 customers
enjoying the benefits of ultrafast fibre.
Control Room Operator, Ian Newton, utilising the new Advanced Distribution
Management System (ADMS) during a power outage event.
Unison Contracting Services Ltd
delivered a record year in terms of
completing its capital and customer
work programme, whilst helping
maintain the performance of the
network.
THE
37
Photo courtesy Hawke's Bay Today
The Hawke's Bay A&P Bayleys Wine
Awards now in its 15th year is the oldest
regional wine awards competition in New
Zealand has been launched. The awards
dinner on October 20 at the Showgrounds
is a must attend event! Make sure you
book your tickets go to
www.showgrounds.co.nz
At last!
Hawke’s Bay has its own
arts festival: a myriad of topclass entertainment from
international and New Zealand
performers in a venue worthy
of its own show.
The Famous Spiegeltent was
built in 1920 and has spent
a lifetime at festivals and
fairgrounds throughout Europe
and beyond. Now it's coming
to Hawke’s Bay to play host
to cabaret, theatre, comedy,
music and more.
hbaf.co.nz
Havelock North Village Green
27 Oct – 8 Nov 2015
38
THE
PRO
Primary
HAWKE’S BAY – why it
attracts agri-people
By Brent Paterson | Rural Directions
What’s it got going for it anyway? Is
it the people, the land, the beaches,
the climate, the port, the processing
capacity, the schooling, the wineries,
the fruit or the Ranfurly Shield?
Probably a combination of many of
the above but tailored to the individual’s
specifications. I couldn’t suggest many places
in NZ have this menu of benefits to offer
agri-people or any people for that matter.
Add the Dam to this and we have a whole
new industry in itself. Come on the Bay!!
When you are in the market 365 you get a
pretty good understanding of the benefits
and desired intangibles that make that
role the one to really target. HB is full of
quality tangibles (above) and many desirable
intangibles.
Historically Hawke’s Bay has always been
a great place to visit, people come and
experience the great weather, concerts and
events such as Art Deco Weekend and FAWC,
(just to name a few). These great events are
firmly engraved on calendars hanging on the
walls of fun seekers throughout the country.
We want to make this place a destination
Brent Paterson is the founder and managing director
of Rural Directions- Primary Sector Recruitment & HR.
His rural credentials are impressive from running a
sheep stud and beef operation in Patoka, through to
his involvement in Rural Directions subsidiary company,
Primary Industry Management. To contact Brent,
email – [email protected].
not just a holiday and when roles come up
and we get the opportunity to get it out to
the market we get real attention from the
candidate market.
Our business is involved in many agrimanagement roles and this seems to be the
demographic particularly attracted to the Bay.
There is a large emphasis placed on schooling
(just so happens that people looking a these
roles often have children in their teens) and
we are spoilt for choice, outstanding boys
and girls options throughout the region.
There is an element of families re locating
to the Bay in anticipation of great things to
come, they understand that “agri-business is
brewing” and that this is a well positioned
region. We get calls from people asking
about our opinion on what opportunities
might arise if the Dam goes ahead, the
business of ‘spec homes’ has been about for
years, people are now discussing the options
of ‘spec careers’...
So my summary is that it’s the diversity of
the Bay that attracts, it is as I have mentioned
a combination of all of the above, it’s the
attitude of the people and the attitude of
“Hawke’s Bay is full of quality tangibles
and many desirable intangibles”
the business, it’s the proactive manner with
which we drive business, we give things a
go, we are early adopters, now is the time to
build from this momentum.
I’m not a physicist but a good example to me
of the value of momentum is like when you
are watching the fuel gauge in a boat as you
are bringing it up onto the plane, hard work,
heavy lifting energy sapping but the relief for
the engine when you reach the plane makes
it all worth it. The boat is suddenly efficient,
the wake is smaller and you can maintain
speed with less rev’s and less fuel. Let’s keep
Hawke’s Bay agribusiness up on the plane.
The NZ (and global) agribusiness candidate
market see Hawke’s Bay as an attractive
proposition, applications rates are high for
roles here, there is a belief in the candidate
community that we deliver quality. Sell the
benefits and the desirable intangibles to
the market every chance you get, if you get
the best people working in your businesses
because of them they quickly turn into
tangibles.
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THE
39
PRO
Finance
Three Steps to Security
Secure your retirement against these 3 hidden vulnerabilities.
By Tobias Taylor | Spicers Portfolio Management
As we get older we are likely to be
confronted with a number of hidden
financial
vulnerabilities,
or
some
especially difficult, personal challenges,
that go beyond just maintaining a steady
income from our retirement savings and
investments.
As a financial adviser, I have the privilege
of working with a large number of retired
clients, and as a result I have seen firsthand
the problems that many older Kiwis have to
wrestle with.
Three of the most common problems
elderly retired face are:
1.One partner is responsible for all the
finances (the money manager) and when
that person dies, the surviving partner is
vulnerable because they don’t know what’s
going on with the money;
2.Historical financial structures which have
become redundant; and
3.Financial exploitation of the elderly.
1. The sole money manager
In my experience, particularly with the older
generation, the wife or female partner is
usually happy to leave the management of
the couple’s financial affairs to the husband
or male partner. The exception to this rule is
often the retired rural family where running
the family farm or orchard was very much
a collaborative exercise, often with the wife
or female partner also being the financial
controller.
This of course is a demographic that is
changing with time.
Unfortunately, what happens in most other
instances however, is that the husband passes
away first, leaving his wife unprepared to
take over management of the finances – very
often she has no idea of what their financial
position is.
To avoid this problem, both partners should
participate in the financial management
of their affairs, including attending all
meetings with their financial advisers.
At the very least, have a checklist, which
summarises your current situation and what
needs to be done. This should be kept with
other important papers like your annual
accounts.
2. Redundant historic structures
Another potential problem faced by some
people in retirement is that the financial
structures that were set-up in the past –
particularly some trusts – have not been
future proofed. It is always a wise idea to
discuss contingency and succession planning
with your professional or independent
trustee.
This is especially common in rural areas.
Clients set-up these structures and once
‘everything is in place’, forget about them.
An annual review of your financial position,
including your financial structures, is
absolutely essential.
Just like your farm or business, a succession
plan is vital to your ownership structures.
Part of the difficulty is that many older people
do not like talking about money. They are
private, but also very trusting. For that reason,
I cannot over-emphasise the importance
of having a reliable, independent support
person on hand to offer advice, particularly
when making big financial decisions.
Another area where a support person
is important is in helping you to work
SHAPING THE FUTURE
OF BUSINESS
Hawke’s Bay Office
86 Station Street
Napier
T: 06 835 3364
E: [email protected]
CHARTERED ACCOUNTANTS
Manawatu Office
32 Amesbury Street
Palmerston North
T: 06 358 4163
E: [email protected]
PARTNERS:
• Tax Specialists • Business Advisory • Audit and Assurance
• Information Systems / IT • Insolvency and Business Recovery
• Business and Succsession Planning • Human Resources
David Pearson
Glenn Fan-Robertson
Heather Hallam
Lisa Townshend
Ross Hadwin
W: www.bdo.co.nz
40
THE
PRO
Finance
through, and understand, complex financial
documents.
3. Financial exploitation
Financial exploitation of retired people is too
common a problem that the elderly face. It
is a problem because, while you may want to
help people who are in need, you risk eroding
your only means to support yourself into old
age.
Louise Collins, who co-ordinates Age
Concern’s efforts to fight elderly abuse,
believes that financial abuse of the elderly is
a very big and on-going problem, which is
fuelled by the attitude that older people don’t
need the money – that they are sitting on a
nest egg that the younger person has more of
a need for, or is more deserving.
“More than 75 per cent of those that
financially abuse older people are family
members, that we see. The problem is, elderly
people have no means of generating an
income after they’ve given the money away.
As a result we see them unable to afford to
replace things like their spectacles or hearing
aides (which are not subsidised), because
they’ve given their money away.
“We are supportive of older people being
able to make decisions to give money to their
children. The problem comes when they are
forced to do it through threats or bullying,”
Ms Collins said.
One solution is to require the signature of an
independent, professional support person,
like a lawyer or accountant. That person,
being aware of the financial situation, is likely
to know the risks and vulnerabilities you face,
and this provides an extra layer of protection
for those who may find it difficult to say ‘no’,
ask ’why?’ or at least discuss the rationale
behind unplanned activity.
In my opinion, the support person should
certainly not be the person’s manager of funds.
Separation of duties and responsibilities when
managing client funds is essential. When I
manage a client’s funds, I believe that I should
not have a say in providing permission for the
distribution of that money, other than giving
written and researched advice in line with my
agreed scope of service.
The so-called ‘trigger signature’ or ‘second
signature’ for a transaction should not sit with
the financial adviser who manages the client
funds. This is why I respectfully decline to be
a trustee on client portfolios.
A financial plan is the best answer
A good start towards overcoming challenges
like the death of a spouse, financial
exploitation and historic structures that have
not been future proofed, is to have a financial
plan in place from the beginning – it’s a way
to roadmap your retirement so that every
phase, and eventuality, is considered and
planned for.
A good financial plan is a visual, step-by-step
big picture both partners can understand. It
should also have precautions built in; such as
annual financial reviews to ensure goals and
portfolio are kept current.
With a plan, you can exercise a measured
approach to your income that is related to
the various stages of ageing that you will
experience. It also oversees the releasing of
funds in a planned and structured manner – it
gives your funds a sustainable lifecycle.
A trust that is properly set-up to ensure
longevity is one more protection for people
in retirement. However, a trust is not for
everyone and legal and estate advice should
be sought before making any changes to one’s
ownership structure.
Having a financial plan is also a structure that
protects your money because protecting your
capital is a financial goal in itself. Finally, a
plan is also better able to deal with things like
a conflict between maintaining your income
and protecting your capital.
Tobias Taylor is a Certified Financial Planner (CFP) and
Authorised Financial Adviser (AFA). Tobias is an Investment
Specialist and is the Managing Principal of the Spicers
Hawkes Bay & East Coast office, which is a Spicers
Franchise and thus proudly a Hawkes Bay and East Coast
owned business. For more information on Spicers see
www.spicers.co.nz. This article contains information of a general
nature only and is no substitute for personalised advice. If you
would like advice that takes into account your particular financial
situation or goals, please contact your financial adviser. A disclosure
statement is available from your adviser, upon request, and free
of charge.
THE
41
PRO
RMA
What challenges do we face
in Hawke's Bay?
Ministerial briefing paper outlines key challenges
By Cameron Drury | Cheal Consultants
In 2014 the New Zealand Planning
Institute released a briefing paper
for incoming Ministers that outlined
key challenges over the coming
years. These included demographic
changes,
transport,
housing
affordability, infrastructure, energy,
freshwater, and RMA reforms.
So are these regional as well as national issues?
They are certainly are big topics, but let’s
briefly traverse them and see how Hawke's
Bay may be placed.
Demographic Changes
Our aging population is an on-going
challenge. Similarly, we are experiencing
increasing cultural diversity and the needs
and interests of different social-economic
groups continue to be diverse. We need to
understand the issues and expectations of
the various players in our communities so
that the facilities or solutions we provide are
functional and capable of delivering.
Transport
We are gradually improving our traffic
networks and connecting key areas with key
infrastructure. The cycleway projects have
been hugely successful, but now we need to
make the best of this resource. Managing our
rural roads and links to Wairoa and Gisborne
will continue to be challenging, but what we
really need to do is resolve the issue of access
to the Port of Napier. The Port is our doorway
to national and international markets and we
need to make sure it is wide open. Although
there are challenges with existing corridors
and development, we need to confront these,
and there needs to be regionally integrated
approach.
Housing Affordability
Housing affordability is influenced by a
range of factors. On a national scale, perhaps
the regions can offer a solution. Land and
development is less expensive in the regions,
and improved and affordable national
transport links could support people living
in Hawke's Bay and commuting to the main
centres. Maybe air travel has a greater role to
play than we realise. Imagine if we invested a
small proportion of the millions earmarked
to support growth in Auckland in travel
between the regions and main centres. Better
42
THE
Solar power is part of the future in Hawke’s Bay
still, bring business here, and let’s be honest,
affordable housing isn’t $350,000 plus.
Infrastructure
Our thinking needs to be long term, but
we need to maintain momentum. We need
clear priorities but must be nimble enough
to make the right decisions. Our plans and
strategies need to be aligned and integrated,
and while our solutions need to be resilient,
we must welcome innovation. Take urban
growth; have we accepted that regional
CBD’s may be too large? Is this not what
Christchurch has discovered? Could the
periphery be better used, after all, this is
where infrastructure is available. Let’s not
forget about telecommunications either as
we need the best possible resources to attract
business options.
Energy
The economic appetite for energy expansion
projects is probably limited, especially if
nationally significant users decline. Over the
long term however, wind maybe an option for
Hawke's Bay, and with our level of sunlight
hours we could certainly be part of the solar
power industry. Delivering secure and diverse
supplies of energy is still the key objective,
and any option over oil that may arise must
still surely be considered.
Freshwater
Most of the region is familiar with the
Tukituki Plan Change and Ruataniwha
storage scheme. Regardless of views, what
is clear is that the future development of
our region is dependent on how freshwater
resources are managed. We need to keep
these issues in context however, and have the
confidence to try new ideas. Strategies and
provisions can be put in place to reassess and
respond, and while potential risks need to be
balanced, the worst thing we can do is allow
ourselves to miss out on opportunities; as the
consequences for the wider community could
be considerable.
RMA Reforms
Like it or not, the issues confronting us will be
played out in the resource management sector.
Yes the direction of the RMA probably needs
to be made clearer, but while it’s likely to be
criticised, words on paper are implemented by
people, and if we’re really honest, it’s actually
people who participate in these processes and
make decisions. Regardless of ideas around
reform, we need to get excited and approach
new ideas with a ‘yes’, and then follow with
questions to confirm or refine. Starting with a
no will not take us forward.
These are big topics and warrant far more
consideration than a few observations. What
is clear however is that Hawkes Bay is in the
thick of it. Yes, we have challenges to resolve,
but fortunately we have a lot of solutions
as well.
Cameron Drury is a Full Member of the New Zealand
Planning Institute and a Senior Planner with Cheal
Consultants with the role of Regional Manager of the
Hawkes Bay operation. Email Cameron at cameron@
cheal.co.nz. Cheal provides expert services in the
fields of Planning, Surveying and Civil, Geotechnical
and Traffic Engineering. Offices are located in Hawke's
Bay, Taupo, Ohakune, Taumaranui and Rotorua.
PRO
IT
The Internet of Things & You
We all know about the internet but do you know anything
about the ‘internet of things”?
By Wray Wilson | Need a Nerd
Unless you live in a cave somewhere
very isolated (like CHB perhaps)
you will no doubt have heard of
the internet. But you may not have
heard of the ‘Internet of Things’,
which is going to be one of the next
‘big things’ over the coming decade.
The Internet of Things (IoT) is the network
of physical objects (things) embedded with
some electronics that allow transmission
or reception of information or data. Each
‘thing’ is uniquely identifiable and is able to
communicate with a variety of users be they
you, an operator, a manufacturer or other
devices via the internet. An example might
be a new air conditioning unit that you can
operate from outside your home via a mobile
device.
It is estimated that the IoT will consist of
up to 50 billion devices world wide by 2020.
That’s a big number you say, but what’s the
impact on me?
Like any new technology there are perceived
risks and benefits – this list is by no means
exhaustive. Risks include:
Privacy concerns – the IoT has the ability
to capture huge amounts of data about
individuals and groups with little control
over the use of that data. The significance
of privacy is constantly shifting and attitudes
towards it are often naive at best – think of
the way in which today’s youth use social
media with no thought of the future impact it
may have on them.
Security – the IoT will open the door ever
wider to cyberattack. Your office fridge might
not attack you, but if it auto-orders your milk
when it runs out, it
may be vulnerable to
releasing your credit
card details.
Environmental – the proliferation of devices
that could potentially be replaced (for
example light switches) and the electronicsheavy nature of new IoT devices could have
a significant impact on the environment. We
already live in a society that replaces things
because they are perceived to be obsolescent
rather than actually being broken (gotta have
that new iPhone!) and IoT will only accelerate
this.
Loss of employment – As more and more
devices connect to the internet, there
will be a corresponding decrease in the
employment prospects of less educated
workers. For instance, people who check
inventory can be replaced by a system
that reports information directly to the
owner no matter where the inventory is.
And on the flipside, some of the benefits are:
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Cost savings – collecting data across your business can save you money,
for instance; reducing your inventory, less downtime for unscheduled
maintenance and shorter times to market. Improved asset tracking
and utilization can also drive savings.
Process efficiency – Using real time insights can lead to better business
decision making and reduce operating costs.
New revenue streams – The IoT opens up opportunities for new
product ranges and services and to develop existing ranges further.
3
1 We come to you
2 We fix it over the phone
3 Not urgent? You drop it in
(201 Pakowhai Rd, Stortford Lodge, Hastings)
Customer information – The mirror of the risk to compromised
privacy is the ability to track consumer data. This could allow you to
provide a more ‘personalised’ service that could increase sales.
Lastly, one of the big issues that the IoT will bring is complexity. This
is already evident through a lack of a universal coding language or
protocol – in essence, not all products can talk to each other. And how
might this affect you? How many remote controls do you currently
own? Want a few more?
I didn’t think so.
0800 63 33 26
Wray Wilson is the chief executive of Need a Nerd. Need a Nerd is a nationwide
technical sales and support business to the SME and residential market. Email [email protected]
THE
43
PRO
Ed
EIT Appoints New Head
of Business School
As she settles into her new job as head of EIT’s School of
Business, Rebekah Dinwoodie feels like she is returning
to her roots.
Rebekah worked in various roles at EIT over a period of ten
years. Originally employed in 2002 as a programme coordinator
for equine studies, she was seconded to the academic quality
team and then later appointed as programme leader in the
School of Applied Science.
Seeking more external experience, Rebekah left in 2012 to take
up the position of Hawke’s Bay manager for an agricultural
training centre. She was soon made responsible for all the
educator’s regional sites, managing campuses in Northland, the
Waikato, the Manawatu, Taranaki, Auckland and Invercargill as
well as Hawke’s Bay.
Throughout that time, she maintained links with EIT – not
only was she based on EIT’s Hawke’s Bay campus, she also
continued to chair EIT’s animal ethics committee.
At 36, she agrees she is young to be heading the business school but
says she has always had bold aspirations – “I’m just very motivated I
think.”
Rebekah relaxes with a Briard named Ted.
When she was in her 20s, Rebekah successfully battled Hodgkin’s
lymphoma and says having cancer heightened her awareness of life’s
fragility and made her more determined about attaining her goals.
“The support of the New Zealand health system was amazing. I am
also grateful for the support I had from EIT, particularly as my own
family are back in England.”
EIT
THINK
TANK
In the Journal of Financial Regulation and Compliance, Accounting Lecturer
Noel Yahanpath and M. Islam published a refereed article on Evaluation of
post-GFC policy response of New Zealand: Non-banking perspective.
EIT’s degree and post-graduate programmes are underpinned by
lecturer research activity, directly linking to their teaching.
Ranked in the top two polytechnics/institutes of technology in
New Zealand, independently assessed EIT academic staff research
performance is held in high regard nationally.*
*Official ranking of The Performance Based Research Fund (PBRF) audit by
the Tertiary Education Commission every six years.
0800 22 55 348 | research.eit.ac.nz
THE EXPERIENCE YOU NEED
& THE SUPPORT TO SUCCEED
44
THE
Growing up in Surrey, Rebekah trained as a secondary school teacher
and met her kiwi partner Tim Forster when he was on OE in the UK.
The couple returned to Hawke’s Bay and have two children, Zoe (2)
and Kate (5).
“I think New Zealand and particularly Hawke’s Bay is a great place to
raise children,” she says. “I am an outdoors person and enjoy running,
walking and horses.”
The family live on a 4ha block at Bridge Pa, where they provide grazing
for horses.
“I probably want to see how the job pans out but I think it’s likely the
next purchase will be ponies for the girls,” she laughs.
Rebekah is working on a self-reflective business project as her final
paper for a Master in Management degree, which she will complete
this year.
She considers it an interesting time to be heading a school of business.
“EIT’s business programmes will be very much affected by the NZQA
review of qualifications which will likely result in a new suite of
business qualifications in the school. My responsibilities also include
overseeing the business qualifications offered at EIT’s Tairawhiti
campus in Gisborne and EIT’s Auckland campus, where all our
students are internationals.”
While she doesn’t believe in a pre-ordained destiny, Rebekah believes
that working towards her goals has taken her to where she wanted
to be.
“When I left EIT all those years ago, I told staff I would be back,”
she says with a smile. “I was always hopeful that would be the case.”
PRO
HR
Find the Right Digital Balance
Are devices and apps ruling your life and distracting
you from what really matters?
By Kimberly McKay | BDO Central
I’m not tech savvy. I can operate the systems
I need to for business and personal life but
I’m not an early adopter or super-user by any
means. I recognise the power of technology
to connect us, process volumes of data, and
automate routine tasks. The explosive rate
of development of new mobile phone apps
will soon mean the smartphone will be an
accepted part of many daily activities.
When considering the people aspects of
business this concerns me. Most businesses
rely on people power and while technology
can support good people management, it
can’t do it for you.
There are lots of HR processes we now do
electronically. To name just a few:
• We post jobs on-line
• Applicants mostly search for jobs
on-line and apply on-line
• Employers do pre-screening and
applicant testing on-line
• Large organisations have on-line
induction
• Often training is delivered through
webinars or self-paced e-learning
• We have on-line appraisal tools –
some managers are disappointed
to discover that these systems
still require a meeting with the
employee and discussion
• Employee engagement and other
staff surveys are on-line
• We have electronic suggestion
boxes
In many instances these tools and processes
allow us to automate form filling, collect
and manage data, and connect people cost
effectively across locations. They save time,
paper, and sometimes money. These are
real benefits and the way of the future – we
just need to balance them with real human
interaction.
There is a good reason for that desperate
feeling of wanting to talk to a real person
when you have phoned Spark, or similar
organisations (as I recently did), and
conversed with their computers and selected
options from endless menus or you may have
gone on-line to their website and tried but
failed to find what you want. When you have
a problem you want to speak to a real person
who will listen to the whole story, including
allowing you to vent some feelings (instead
of describing your problem in 3 words to a
computer), someone who will show some
empathy and sort it out for you. For stuff that
matters, in particular important HR stuff, we
need personal communication.
We all do a lot of business communication
electronically, for obvious reasons – it’s
fast, inexpensive and has great reach. Large
organisations have company intranet to keep
staff informed. We can email, text or instant
message instead of picking up the phone
or walking up the stairs and missed calls go
to voicemail instead of being picked up by
someone else. We video-conference because
it’s cheaper and requires less time than
bringing people together physically.
Technology has its place but the key is choosing
the appropriate method of communication
and getting the right balance between digital
and personal. Electronic communication
is great for sending information but it’s
no substitute for conversation to develop
relationships and it’s not appropriate for
anything sensitive. And by sensitive I don’t
just mean bad news, handling conflict or
critical feedback. Appreciation, good news
and celebrating success also have far more
impact delivered in person.
When we bring people together as a group we
are reminded they are real people with families,
problems and a sense of humour. Building
relationships improves understanding, creates
connections and means people are more likely
to go out of their way for us when we or the
organisation need them to. That’s why we do
team building, team meetings and networking
in person – it’s all about relationships.
The other mixed blessing of digital
communication that’s accessible anywhere,
anytime, is that we never leave work behind.
Digital overload can be a stress-inducing
hazard and is a new dimension to the
challenge of work-life balance. We compound
the problem at home – not only does the TV
stifle conversation but we now watch it while
using our portable devices. It’s important to
allow people to have down time and to learn
to manage 24/7 connectivity in a healthy way.
According to a 2014 Canadian poll (on-line
of course), those who owned a smartphone
– around half the country – said they spend
86 per cent of their time staring at one screen
or another.
So mixed in with your digital information
sharing organise some gatherings (with
a purpose of course), pick up the phone
instead of emailing and throw in a bit of
‘management by walking around’ occasionally
to surprise people. Use your electronic
devices for transactions and make meaningful
connections in person.
According to psychologist Daniel Goleman,
author of Focus: the Hidden Driver of
Excellence, “We have been seduced by
distraction. We are being pulled away from
paying attention to the things that enrich our
lives.” Let’s ban tablets and cell phones from
the meeting room, the training room, the
dinner table, and the lounge. When people
are physically together make the most of it.
Kimberly McKay is a Human Resource Consultant at
BDO Central (NI) Limited. She has extensive experience
assisting both small and large employers with all aspects
of their HR needs. BDO Central (NI) Limited are Chartered
Accountants and Business Advisors, with offices in Napier
and Palmerston North. They are able to support clients
with a comprehensive suite of accounting, information
systems and HR services.
THE
45
PRO
Legal
Greater safety net when
building your home
Early this year some important changes we made to residential building
contracts. We take a look at what this means for those building a new house.
By Edward Bostock | Bramwell Grossman Lawyers
At some time or other most of us will use
(or at least consider using) a builder on a
residential property and with that in mind
we thought it worth highlighting some
changes affecting residential building
contracts entered into after 1 January 2015.
The Building (Residential Consumer Rights
and Remedies) Regulations 2014, which
came into force on 1 January 2015, inserted
new requirements into the Building Act
2004 regarding residential building contracts
valued at $30,000.00 or more.
The main changes regard information that
the builder is obliged to provide to their client
and to prescribe minimum requirements for
the building contracts.
Firstly a builder must give their client a
prescribed checklist (copy can be obtained
from Ministry of Business, Innovation and
Employment) which informs them of the
steps to consider before entering into a
contract. For example:
nAdvising
how to ensure the builder you
hire is competent; and
nAdvising
how to compare, consider and
agree the price and the payments.
Secondly a builder must now ‘disclose’ certain
information about themselves to their clients
prior to entering into the building contract.
nwhat
insurance policies the builder holds
or intends to take out to cover risks
associated with the build.
The requirement to provide the checklist and
the relevant disclosure only kicks in if the
building contract is valued at over $30,000.00
however it is important to note that they
must also be provided (no matter the size of
the job) if requested by the client. Builders
should therefore have procedures in place to
ensure that these elements can be met with a
minimum of fuss.
Finally, and most significantly, the Regulations
provide that residential building contracts
(over $30,000.00) must be (a) in writing, (b)
dated and (c) comply with the minimum
requirements prescribed.
It is not appropriate to list all of the prescribed
content however below are some of the items
that must now be included:
nEach
party’s contact details (physical
address, postal address, address for service,
phone numbers and email address);
nDescription
of work to be undertaken and
materials to be used (if known);
nNames
of the person(s) who will carry out
the work and who will be supervising the
work;
nThe
expected start and completion dates;
The Regulations detail the information that is nContract price and number (& frequency)
to be disclosed and includes: Vehicle Graphics
of payments; and
nThe skills, qualifications, Building
and licensing
nMechanisms
/ Shop
Fronts for negotiating and agreeing
status of the person undertaking the work;
variations.
Footpath Signs
nInformation about any guarantees and
We would expect that most builders currently
warranties being offered by the builder; and use a standard form contract or have
C
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CM
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46
THE
developed their own over time and as such it
will be important for these to be reviewed - a
builder could be fined for not complying with
the Regulations.
The Building Act 2004 previously included
warranties that were implied into every
residential building contract such as the work
must be
nCarried
manner;
out in a proper and competent
nIn
accordance with all laws and legal
requirements; and
nCarried
out with reasonable care and skill.
However the Building Act 2004 (as amended
by the Building Amendment Act 2013)
now specifies remedies for breaching these
warranties. The remedies differ depending
on whether the work is capable of being
remedied but they include the ability for
the client to require the builder to remedy
the breach and to obtain damages for any
loss suffered as a result of the breach (loss
must be reasonably foreseeable). It is worth
noting that these remedies will only apply to
contracts entered into on or after 1 January
2015.
These changes should create more consistency
for clients across the building trade but will
(at least at the outset) require builders to
undertake some ‘housekeeping’ to ensure that
their procedures and documentation comply
with the new regulations.
Edward Bostock is a solicitor at Bramwell Grossman
Lawyers in Hastings. He has Bachelor of Laws from
the University of Sheffield in the UK. To contact
Edward, email [email protected]
PRO
Property
Take time to value property
The residential sales market appears to be more buoyant
and there has been a much publicised increase in the
volume of house sales in Hawke’s Bay.
By Paul Harvey | Williams’ Harvey Registered Valuers
Certainly our office has seen the
number of residential valuation
reports for Mortgage Security
purposes dramatically pick up
since March. Furthermore YTD we
have seen nearly a 14% increase in
the number of residential sales as
compared to the same time last year.
Value levels have also increased YTD
showing a 1.3% increase in Napier
and 1.8% in Hastings.
The upturn in sales activity could be
attributed to a number of factors such as:
• Lifting of the LVR to 15% (outside
Auckland)
• Lower interest rates and softer lending
constraints
• Homestart subsidy and larger Kiwisaver
withdrawals for first time home buyers
• Investors from outside Hawke’s Bay
looking for more affordably priced homes
With Spring and Summer approaching, a
prime time for buying and selling, we are
likely to see an increased demand on an
already limited housing stock and our office
has already seen an increasing amount of
instructions being given with impracticable
expectations with regard to turnaround.
If you require mortgage security the main
trading banks will require a valuation
report from a Registered Valuer and they
now operate through valuer panels such as
Property IQ or Valocity. Urgency fees can
and are applied to jobs that need a quick
turnaround. However, this could often be
avoided with some knowledge of what is
involved in getting a valuation report. It is
advised to be as organised as possible and
give instructions with realistic turnaround
times so that you do not compromise a
prospective deal or incur unnecessary fees.
Vendors and buyers alike need to educate
themselves to the marketplace and
understand the difference between a
perceived value an Appraisal, a Government
Valuation (GV) and a current market value
(CMV) by a Registered Valuer.
Appraisals are only intended as a guide to
pricing and can be requested from real estate
salespeople. Appraisals are estimated by
knowledge of the local area and recent sale
prices and should only ever be used as an
estimate of price. They are not definitive and
have no legal standing. It is rare to charge a
fee for appraisals and they are generally only
requested by potential vendors to get a ‘feel’
for the local market.
The market value of your property can be
very different to the insurance reinstatement
value too. CMV indicates “the most
probable price that would be achieved
in a hypothetical exchange in a free and
open market transaction”. As building
improvements get older they can depreciate
and become obsolete. This may reduce
their market value. Reinstatement Value for
insurance purposes is distinctly different, as
this refers to the cost to replace your asset
today, to the same size and scale, taking into
account modern equivalent technologies,
materials and services. Cost does not
always equal value and if you have an older
premises, cost to recreate may well be above
the asset’s CMV.
What does a Registered
Valuer do?
•Inspects both the interior and
exterior of the property
•Takes detailed notes on
construction materials, fixtures
and fittings and their condition
•Searches property title and
researches any interests
that may potentially affect
the value such as caveats or
encumbrances
•Measures and calculates floor
area of all the improvements
•Views (from the road) and
analyses comparable market
sales
A Government Valuation (GV) and/
or a Rating Valuation (RV) are valuation
conclusions based on mass appraisal
techniques only revised triennially and
are used primarily for assessing the local
authority rates. In many cases the subject
property has not been inspected in assessing
this value. They do not include chattels and,
in our opinion, should not be relied upon to
set the CMV of your property.
If you do require the best indication of
price, engage the services of a Registered
Valuer so that you can be sure of the true
value of your property. A formal valuation
can only be conducted by a Registered
Valuer. Valuing is a complex task and will
take some time to complete. A formal
valuation will take into account factors such
as the property’s location, building structure,
materials, fittings and their condition,
features of the home, local Council zoning
and any additional features of the property
(particularly relevant in high value property)
Depending on the type of valuation, the
Valuer will use two or three of the most
appropriate methods of valuation and then
provide an appropriate written report to
the client identifying the property’s CMV
meeting the requirements of NZIV & PINZ
reporting standards, practice standards and
guidance notes. A full valuation report
is then compiled. This is a considered,
professional written assessment of how
much your property is worth.
As you can appreciate there is a timeframe
in which a realistic turn around of a
valuation report can take place in order to
receive the best advice. Also valuers will
have jobs they have been instructed to do
prior and will also be working towards those
deadlines. Commercial properties are often
even more complex and can take even more
time. Therefore when dealing with one of
your most expensive assets, it is best to be
organised. Give timely instructions to the
Valuer to do a good job and yourself enough
time to decide what is the most prudent
course of action when making your property
decisions.
Paul Harvey is the Director of Williams’ Harvey Registered
Valuers. He has a diverse and broad knowledge of the
HB property market. To contact Paul, email:
[email protected]
THE
47
PRO
PRO
Business
Business
Now for the Financial News
Is it all doom and gloom or is there some positive? A candid view.
By Cedric Knowles | KNOWLedge Accountants
Dairy Prices Continue to slide
The first international milk powder auction
in July saw a further fall in prices and a
Fonterra payout likely to be at its lowest for
at least six years.
An Auckland accountant, who admitted
having little industry knowledge, nevertheless
suggested that dairy prices had to drop at
some stage, as they were to be found on
almost every street corner and were simply
not competitive with supermarkets and
petrol stations.
Economic Crisis in Greece
Over the weekend, Greece was voting in an
historic referendum concerning demands
for further austerity measures from their
foreign creditors. The fallout is likely to be
felt globally, as it may mean Greece exits the
Euro.
A government spokesman was quoted as
saying “Greece exiting the Euro is no great
concern, as it is still available on Netflix, and
anyway, John Travolta and Olivia NewtonJohn have moved on to bigger and better
things.”
Economists Predict further cuts to
Official Cash Rate
The governor of the reserve bank announced
a 25 point cut to the Official Cash Rate on 11
June 2015. Economists are now suggesting
that the governor might reduce the rate by a
further 75 points over the coming months,
following hard on the heels of their recent
predictions that the OCR might rise later in
the year.
As this accountant knows, an economist can
have his or her head in an oven, and feet in
a freezer, and declare that on average they
are quite comfortable. This explains why, on
average, they are now predicting that rates
will rise, fall or stay the same.
Auckland Property Prices spilling over
into other centres
During Winter, Auckland delivered its first
$2million average house price suburb, and
agency Barfoot’s Auckland-wide average
nudged past $826,000. Auckland investors
are now seeking better value in other cities
and provincial areas, including Hawke’s Bay.
Local real estate identity Simon Tremain
was apparently overheard commenting: “I
recently got a ridiculously good price from
48
THE
an Aucklander for a two storey house – one
story before the sale and a different story
afterwards!”
Mushroom Farm creates a stink in
Havelock North
Residents have been complaining about
the smell sometimes emanating from Te
Mata Mushrooms, established in 1967 when
the nearest houses were kilometers away.
Prosecution and restrictions by the HB
Regional Council could result in closure and
the loss of up to 120 jobs.
Owner Michael Whittaker apparently
commented: “Hey, it would be great if the
Nimby’s realised that I’m just a fun-guy!”
Amalgamation of Hawke's Bay Councils
expected to save millions
The proposed amalgamation of Hawke’s
Bay’s 5 councils is expected to save
$59million over its first 8 years, according to
the McGredy Winder & Co report released
in 2013. A big part of the cost savings will be
centralising the region’s main council office
in Napier, and mothballing the Hastings
Council head office.
The proposal goes to the vote in September
and Napier Mayor Bill Dalton has already
suggested that “if the “eyes” have it, I’ll
arrange for the “nostrils” off the Hastings
Council building to be placed at the “mouth”
of the Ngaruroro River – that’ll be an about
“face” for Lawrence!
Jetstar is Considering Hawke’s Bay for
new Flight Routes
Budget airline Jetstar has been investigating
operating flights in and out of Hawke’s Bay
Airport, a competitive move that will bring
significant benefits to the Hawke’s Bay
economy. One local councilor, always vocal
on airport matters was quick to criticise:
“it is ridiculous that there will still only be
two airlines servicing Hawke’s Bay, when
Heathrow has eighty – something must be
done.”
Cedric Knowles is a director of KNOWLedge
Accountants, Hawke’s Bay. He has worked as an
accountant in the Bay since 1987. Contact Cedric by
email: [email protected]
tickets on sale now
JOIN US FOR
AN EVENING OF
RECOGNITION & ELEGANCE
Taste winning wines that will accompany a sensational four
course meal prepared by four of Hawke’s Bay’s leading chefs…
Nathan Beilby Vidals | Tasting plate
A S W E C E L E B R AT E F I N E W I N E &
PRESTIGIOUS AWARDS
Daniel Pistone Black Barn Restaurant | Entrée
D A T E 20 October 2015
Lucinda Sherrat & Ben Cruse Little Black Bird | Dessert
T I m E 6pm
V E N u E Waikoko Gardens, Showgrounds Hawke’s Bay
Kenilworth Road, Hastings
m A S T E R O F C E R E m O N I E S Jeremy Corbett
D R E S S Formal Attire
EIT Culinary Arts Team EIT | Main
Be there for the announcement of this year’s
C h A m P I O N W I N E O F S h O W award as judged
by our national and international judges. Gold medal and
trophy winners will be announced on the night.
T I C k E T S $195 (incl GST)
Tickets are limited, so be quick! | Freephone 0508 946 329
RSVP 9 October 2015
Pre-dinner drinks 6–6.30pm | Awards Ceremony commences 6.45pm
E [email protected] | www.hawkesbaywineawards.co.nz

the one proposition

Transcription

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