Connect The Bay’s Online Business Magazine
June 2014
Latest Business News | Events | Opportunities
BuildingBetterBusiness Tauranga Chamber Of Commerce | 1
In This Issue Connect JUNE 2014 Elicia Tan Solicitor
E
E f
E a s
C e
C w
CLM/Ent/2.5.2014
Welcome from the CEO Page .............. 3
Crombie Lockwood (NZ) Ltd DNZ Property Group Ltd Electionz.com Farmer Auto Village Ford Fulton Hogan Kale Print Lock-It Data Risk Management
Up close & personal with Brett Roberts from Cucumber Page ............... 6
Consumer Law Reforms Implications for Businesses Page .............. 9
Mills Reef Winery Personnel Resources Port of Tauranga Sanford Ltd Sign Creations Ltd Tulloch Photography ZESPRI International Ltd
Click here to download a printable version of this issue!
Chamber of Commerce Tauranga Smart Business Centre 65 Chapel Street Tauranga 3110 Ph: (64) 7 577 9823 Tauranga Chamber Of Commerce | 2
Connect
Welcome to Connect Welcome to the June edition of Connect. This is my first column as Chief Executive of the Tauranga Chamber of Commerce. During my time as CEO I’ve been seeing lots of businesses and getting a feeling for the pulse of the local economy. Since our last edition we’ve seen many changes in our economy. For the last four years we’ve lived in a low interest rate environment and now, as our economy starts to expand, interest rates are on the increase to keep any inflationary pressures at bay. This will affect our mortgage repayments whether we are on fixed or floating rates, which means belt tightening for a lot of us to ensure there’s enough disposable income left to pay our bills and live on. And that’s going to be hard for some of us to take. Loan to value ratios are hitting first home buyers hard and impacting on the whole property market with the intention of trying to reduce house price inflation. It’s working in cities like Auckland and Christchurch in cooling the residential property market. However, in the regional centres around New Zealand one could say we’re using a sledge hammer to crack open a peanut. House price inflation isn’t rampant outside of these two cities. Recent auction prices for our dairy products have decreased which will put pressure on the milk price payout to farmers for this season and into next season. Our exchange rate is still exceptionally high which hurts our primary producers, however, the flip side is that pricing for imported products is kept down. What will be interesting over the next few months, as interest rates rise in New Zealand, is what effect will that have on the dollar? What does this all mean to us? It means we are living in a very fluid environment with constant change around us. Is this the new norm which we have to adapt and get used to? Last month, I attended the Waikato University graduation ceremony in Tauranga. There were graduates from many disciplines, but what really struck me was the wide range of ages amongst the graduates, especially the older generation graduating. This is particularly pleasing as this age group will be able to fill some of the skill shortages that our economy is currently experiencing.
It has been a busy month here at the Chamber, developing and submitting our submissions on Councils’ Draft Annual Plans. We’ve made written submissions to Tauranga City Council, Western Bay of Plenty District Council and Bay of Plenty Regional Council. We’ve also made oral submissions to Tauranga City Council and Western Bay of Plenty District Council. If you would like a copy of the Chamber submissions please go to our website: http://www.tauranga.org.nz/ During the last two months I’ve met a lot of business owners and their staff. I’m really encouraged by the positivity coming from these businesses and the fact that a lot of businesses are now showing signs of growth. This is good news for our region coupled with the fact the kiwifruit industry is now recovering from the nasty effects of Psa. In June we are running new courses on advisory boards and being an effective board member. Advisory boards can improve company performance, increase accountability, plan and manage growth and manage risk. If you’re keen to learn more about the role of these boards or wish to become an advisory board member, then these courses are for you. For further details refer to Tauranga Chamber of Commerce website www.tauranga.org.nz Until next time… Best regards, Dave
Stay safe while driving DriveSafe auto-replies with a TXT to say you’re driving. It’s never safe to TXT while you’re driving, so activate Vodafone DriveSafe and auto-reply to incoming TXT messages. DriveSafe is quick and easy to use: • Before you start driving, freeTXT ‘Drive on’ to 760. • Incoming TXTs will receive this auto-reply: “I’m driving right now. I’ll read your TXT as soon as it is safe to do so. Vodafone DriveSafe.” • When you arrive at your destination, freeTXT ‘Drive off’ to 760 then check the TXT messages you received.
Your one stop Business Centre Access a great range of services and facilities at the Smart Business Centre. From large natural light filled meeting rooms, the latest technology including the Vodafone video conferencing suite and a 15 user computer suite, this centrally located hub is your one stop business shop! Chamber members receive discounted rates. Call us to find out more! Tauranga Chamber of Commerce 07 577 9823 or reception@tauranga.org.nz
Tauranga Chamber Of Commerce | 3
The Westpac Business Awards Launch The launch of the Westpac Tauranga Business Awards 2014 always heralds the beginning of an exciting process for the business community. Already we have people asking about “how, what and when” and the most common, “what will I get from entering” questions! The most important aspect is what you, the business, get from entering. Firstly, there is the opportunity to benchmark your business against other businesses in a similar sector or practice. This is really important, as other than looking over the fence at your competitor, it is often difficult to tell, and we all get a bit blind to our own achievements. Secondly, just by going through the process you are re-writing, or certainly testing, your business plan. This is something that should be done with a certain amount of rigour from time to time. Our recommendation, enter the Westpac Tauranga Business Awards for these two objectives alone and you are a winner. For further information call Anne on 07 577 8955 or anne@tauranga.org.nz
Westpac Tauranga Business Awards Launch Thursday 12 June @ 59 The Strand, 5.30 – 7.00pm
The need for Advisory Boards Many business owners are choosing Advisory Boards to improve their decision making capabilities, increase accountability, improve their business operations, plan and manage growth, manage risk and expand their network and associations. Having an Advisory Board provides you with a fresh approach to growing and managing your business while bringing the value of hindsight from experts. It gives you a 360° view of your company. Advisory Boards differ from a Board of Directors in the legal responsibility. Your company/business is entirely owned and operated by you, the owner, but advisors offer their valuable skill and
Connect
advice. This can be project based engagement, for instance growing into an export market, or developing a new product. Having an Advisory Board is part of the first steps to growing your business by using other skills and capacity and working in a governance model. The Tauranga Chamber of Commerce and Export NZ Bay of Plenty, are running two sessions on Advisory Boards; Being An Effective Advisory Board Member and Introduction to Advisory Boards on Tuesday 3 June, presented by Helen Down. For further information contact Emma on 07 577 6141 or emma@tauranga.org.nz
NEW MEMBER PROFILE Can you tell us about your business?
We are a small business with eight employees selling and servicing mobility scooters and ALL types of disability equipment throughout the BOP. We hold the government service contract for MOH and ACC funded equipment.
Can you tell us why you joined the Chamber?
Networking and maintaining a high profile is an integral part of any businesses success. By being actively involved with the Chamber we see opportunities to raise our profile and peoples understanding of disability needs.
Brother moving to the Bay
NZTE collaborates in the Bay to grow companies internationally By Lionel Crawley, NZTE
Brother International was founded in 1908 in Japan; today it has 19 production facilities and 43 sales companies operating in 41 countries throughout the world. Brother has had a presence in the New Zealand market for over 50 years and has grown to be the leading provider of high technology, innovative products for the print and imaging, labelling and sewing markets.
NZTE has a very clear and simple purpose, to grow companies internationally – bigger, better, faster – for the benefit of the region and New Zealand.
Brother International (NZ) Limited is relocating its head office from Wellington to Tauranga in September 2014. Having outgrown its Lower Hutt premises Brother needs an additional 50% increase in warehousing space to meet future growth targets. Tauranga was found to be the best place for the company’s head office relocation. The move will allow Brother to enhance their capabilities around warehousing, market responsiveness and customer service, resulting in substantial savings in the cost of freight. Brother will now have a 2 hour access to 60% of their customer base, instead of an 8-9 hour from Lower Hutt. Another key reason Brother chose Tauranga was proximity to the Port of Tauranga. They will now be able to import their product range through the port weekly instead of fortnightly. Around 35 Wellington based staff will be moving to the Bay with two additional staff employed from Tauranga. Tauranga Chamber Of Commerce | 4
The six-strong local team (co-located in the Smart Business Centre), with specialist support from our bases in Auckland, Wellington and 36 offices around the globe, work one-on-one with the great BOP exporters to help build their capability and boost their global reach. But NZTE cannot build economic prosperity on its own, and works in partnership with other agencies to provide support to local companies. Seven NZ Ambassadors visit companies including Zespri, Comvita, Trimax and PowerSmart this month as part of this collaborative approach. The visit will include a lunch with exporters arranged by Export NZ BOP. To facilitate collaboration around R&D, NZTE also provides hot desks for the local Callaghan Innovation Regional Partners. The Tauranga Chamber of Commerce is a key relationship under our Regional Partner programme, providing important advice and training for emerging businesses, and pointing the way to NZTE’s future exporter customer base.
Capital investment is also crucial for business and regional growth. The NZTE capital team is mapping investment opportunities in the region in partnership with Priority One and the Regional Council (under the Bay of Connections Regional Growth Strategy). It’s a difficult challenge for businesses to understand the potential of local government and how best to work with it. It is complex, rulebound, monopolistic and its decision processes can be very drawn-out. From a business perspective it can easily look like something best left to people who have got nothing better to do. Nothing could be further from the truth. Unless your business is genuinely mobile - you can move across the world tomorrow at little or no cost - your wealth and your income is critically dependent on the strategic capability of your Council. Worldwide the most successful places are ones where business, councils and the wider community build genuine long-term strategic partnerships to achieve the outcomes they want. Tauranga - and the rest of the Bay of Plenty needs to do the same.
Online and on time Successful innovations are not just about being one step ahead of the competition. They’re also about providing services that people need in the way they want it – and that’s exactly the reason behind Bay of Plenty Polytechnic’s array of online-delivery tertiary programmes. Leading the charge is the suite of ‘legal programmes’ that the Polytechnic offers - throughout New Zealand and the world.
“Online delivery extends the reach of a tertiary institution to a national and worldwide market,” says David. “In the last offering of the Graduate Certificate in New Zealand Immigration Advice there were students in seven other countries as well as in New Zealand. Identifying, building and then supplying high quality niche programmes to specific markets is the key to success in this space.” Seeing the benefits of innovative online learning for a wide range of learners, we further delved into the online world with their Road Transport Management (Operations) qualification.
study - a win-win for both employer and employee.” Another adaptation of that same model is the online learning in our construction programmes. “Many construction firms operate throughout New Zealand so they need the ability to have their employees train while working and all study with one provider from anywhere in New Zealand,” says Malcolm. “Our online programmes are geared towards the unique characteristics of the learner – we provide interactive online programmes allowing students to join the existing classroom of students via Adobe Connect.
Programmes such as Conveyancing, Legal Executive and Real Estate provide access to high quality education via distance learning. We are the only tertiary provider of the Diploma in Conveyancing – a qualification allowing graduates to work as registered conveyancers (the legal transfer of property; until 2008 this work was restricted to solicitors in New Zealand). We’re also the only provider of the Graduate Certificate in New Zealand Immigration Advice – a qualification now required before a person can apply to the Immigration Advisers Authority for a licence to practice as an immigration adviser (either domestically or internationally). Dr David Lyon, Head of School of Business, says offering the online delivery programmes was a natural progression.
Malcolm Hardy, Head of School of Applied Technology says “Freight management is both highly competitive and challenging requiring varied skills. Managers often have little resource available to provide the kind of training needed for their staff." “We offer a fully online Road Transport Management L4 programme accessible via the internet which gives students the opportunity to interact with their tutor wherever they are in the country,” says Malcolm. “They can continue working while completing their
This allows them to ask questions, participate in discussions and talk directly to the tutor – from anywhere in the country.” As the learning needs of our region and beyond continue to evolve and change, we will be right there every step of the way providing innovative solutions for all learners to achieve their goals and dreams.
Business Leader Feature
Connect
Brett Roberts, Cucumber
If you could have dinner with three influential people (dead or alive) who would they be?
Ricky Gervais, John Lennon and Melinda Gates. How do you deal with stress and pressure in your role?
After years of research I have found that walking, loud music, reading, catching up with friends, laughter and a glass or two of good wine all work wonders although not necessarily simultaneously. What is your next career challenge after this one?
Maybe something to do with innovation and growing ‘NZ Inc’. An offshore or start-up role could be interesting too. Whatever it turns out to be it’s a safe bet it will involve interesting people and technology.
What are you most proud of (in life/work generally)?
My three kids are definitely at the top of that list.
Have your qualifications been important in your career?
Yes and no depending on time and place and possibly a bit more “no” than “yes” I suspect. What is the best part about your job?
There’s two ‘best parts’: The first is the amazing, smart and incredibly customer-centric people I get to work with and the second is seeing those people finding ways to use technology to do really cool stuff for our clients. Where do you see Tauranga in the next 10 to 15 years?
Substantially bigger than today population-wise (due to Auckland refugees like myself I suspect) and slightly closer to North America due to continental drift. If you could change anything in Tauranga what would it be?
Run an international competition asking architects and town planners to re-imagine and re-design the central city area. What’s the best bit of advice you have ever been given?
Try turning it off and back on again.
What advice would you give someone going into a leadership position for the first time?
Create a compelling vision, surround yourself with the best people, give them what they need and get out of their way. And get a USB Nerf missile launcher.
Tauranga Chamber Of Commerce | 6
What do you feel is a key element to having a successful team environment?
Hiring the right people in the first place is the most important one. Promoting open and honest communication is up there too. What did you want to be when you grew up?
Apparently 4 year-old me wanted to be the guy that drives the ‘sucker upper truck’ that cleans out stormwater drains. A little further down the track I wanted to be a commercial pilot, but the eyesight test and I didn’t get on. If you could have a super power what would it be?
? The ability to fly (Hah ! Take *that* eyesight test) Who has been the most influential person in your life?
There is no way I could answer this with just one name. I have been lucky enough to cross paths with a very large number of smart people over the years and I have learned something from each and every one of them. If you could have created anything in the world (i.e. invention, cure) what would it be?
The internet. Firstly for the incredible impact it has had on society and secondly so I could put “invented internet” on my CV. Other than your current position what would be your dream job?
Fighter pilot or Foo Fighters roadie.
“ people finding
ways to use technology to do really cool stuff for our clients
New Zealand Government Budget 2014 Loosening the purse strings
After keeping a very tight rein on spending in recent years, the Government loosened the purse strings in the Budget, without any matching increase in revenue. This extra Government spending will exacerbate the current economic upswing – the Reserve Bank will be watching carefully. It will also erode the Government’s ability to deal with the economic downturn that we anticipate later this decade. The consequence of more spending and the same revenue is, of course, small surpluses. This does still see the Government books comfortably back in the black over the forecast horizon, and on track to meet its twin fiscal targets of a surplus in 2014/15 and reducing net debt below 20% of GDP by 2020. We think Treasury forecasts might be relatively optimistic on the medium term outlook for revenue. In particular, they could be under estimating the extent of the slowdown in the New Zealand economy generated by the trifecta of rising interest rates, a slowing housing market and the eventual wind down of the Canterbury rebuild. Business as usual continues to account for a large share of the rise in spending, especially in healthcare. A nagging concern is that the Budget, not unusually, had a strong focus on the next five
years. It remained silent on how the Government might help New Zealand meet some of the longerterm challenges it faces, such as the growing costs of an aging population. New Zealand is not alone in facing these challenges. However, it does seem to be relatively reluctant to put them front and centre of the debate around long-term fiscal management. Just this week, Australia made big changes to pension eligibility mirroring the changes that have been made in many parts of the developed world since the GFC. An aging population means that this will become increasingly true over time, under current policy settings.
productivity in recent years, and the economy’s demonstrated capacity to grow without rising inflation, it may be that these little changes are adding up to a lot. Once again though, no effort to address some of the structural challenges for fiscal policy. The current Government has already proved itself to be a steady hand in terms of fiscal management over the next few years. But we would like to see something on the rise in age-related spending over the long term, or the challenge of increasing national savings, or the wildly differing tax treatment for investment across asset classes.
The most high-profile policy announcements were focused on young children and their parents. In all fairness, these are not just crowd-pleasers; giving children a better start in life can pay big dividends in the long term. All of the policies are well-targeted at specific areas of need, and adverse unintended consequences are limited. The Government continues to push a range of growth-enhancing initiatives, such as increased funding for science and more favourable tax treatment for R&D. In the past we’ve been a little skeptical that these would amount to much more than tinkering. But given the evidence of improved
Tauranga Chamber Of Commerce | 7
Upcoming Events and Training JUN
2014
TRAINING:
Managing Chaos
EVENT:
EVENT:
City Leaders Lunch
BWN - Lunch with Therese Walsh
06
TRAINING:
How to protect and Expand Key Accounts
TRAINING:
Managing Text in Microsoft Word
09
TRAINING:
Effective Business Communication
TRAINING:
Facilitation Skills
10
TRAINING:
Managing Staff for the First Time
EVENT:
2014 Westpac Tauranga Business Awards Launch
17
12
TRAINING:
Strategic Planning in a Day
TRAINING:
How to Hire the Right Salesperson
03
20 TRAINING:
Xero for Beginners
10
15
24 TRAINING:
Negotiation Skills
22
JUL
2014
Xero for Experienced Users
24
Business After 5 - St Peters College
02
26 TRAINING:
EVENT:
TRAINING:
Outstanding Reception and Customer Service Skills
29
SNAPPED! 1
3
2
1. Richard Coad, Tony Pearce 2. Kevin Palmer, Trudy Marshall 3. Ron Coutts, Steve Wagstaff 4. Jason Stockdale 5. Diana Manutai Esau, Amber Kedian, Dale Hobson 6. Dean Dalton, Jo Dalton, Shirley McCombe 7. Matt Cowley, Anne Pankhurst 8. Blanche McMath, Saint Whatuira 9. Eve Court, Sue Matthews, Judith Honeyfield 10. Hayley Hohneck, Paul Brlijevich
2 3
4
7
6
6
7
9
8 Tauranga Chamber Of Commerce | 8
5
10
Consumer Law Reforms Implications for Businesses By Elicia Tan Key consumer laws that may affect your business will be changing. It is important that you understand the changes to avoid penalties and reputational damage and to build trust in your business. From 17 June 2014, the Consumer Guarantees Act 1993 (CGA) will apply to all transactions including goods sold at auction or by competitive tender. The CGA will also include new guarantees relating to: • Delivery - if goods are delivered to customers by mail or courier, the guarantee of acceptable quality will start from when the customer receives the goods and you will have to provide a remedy if the goods arrive damaged or do not arrive on time • Supply of electricity and gas – there is a new acceptable quality guarantee that specifically applies to the supply of electricity or gas to consumers New obligations and restrictions under the Fair Trading Act 1986 (FTA) will also take effect from 17 June 2014: • Unsubstantiated representations - claims about a product or service cannot be made without evidence or reasonable grounds
• • • • •
Extended warranties - any extra guarantees over and above the CGA must be explained when selling these warranties and customers will have the right to cancel a warranty within five working days of receiving it Uninvited direct sales (formerly door-to-door sales) - buyers will have five days to cancel any uninvited direct sale when approached at home or at work by phone or in person Unsolicited goods and services - payment cannot be demanded for any goods or services that a customer has not requested Lay-by sales – these sales are defined differently and there are new rules about the information that must be disclosed to customers and about cancelling a layby sale Internet sales - when offering goods or services for sale online, businesses must make it clear to consumers that they are in trade
consumer finance agreements and gym memberships. If a contract term is declared to be unfair, you might not be able to apply, enforce or rely on it. You should review your standard form consumer contracts to check for any potentially unfair (and unenforceable) terms. Changes to other consumer laws such as the Secondhand Dealers and Pawnbrokers Act 2004, Weights and Measures Act 1987 and Carriage of Goods Act 1979, and the introduction of a new Auctioneers Act 2013, may also affect your business. Your lawyer can assist you to understand these changes and manage their impact on your business.
From 17 March 2015, the Commerce Commission will be able to seek a court order declaring that a term in a standard form consumer contract is unfair. An 'unfair contract term' is a term in a contract that is not needed to protect the interests of a party (usually a business), but that causes the other party (usually the consumer) to be disadvantaged. Examples of standard form contracts may include rental car agreements,
Elicia Tan Solicitor
Expertise & Experience Effective, timely and relevant legal advice for your business. Elicia Tan is a senior solicitor at Cooney Lees Morgan and specialises in corporate, commercial and financial services law. Call Elicia for advice on 07 578 2099 or email her at etan@clmlaw.co.nz. Cooney Lees Morgan www.clmlaw.co.nz
CLM/Ent/2.5.2014
Event Management with Passion
Fresh Marketing Ideas
Product of Tuskany
Captivating Designs Product of Tuskany
Product of Tuskany
tuskany
Brand Development > Event Management > PR > Marketing & Communication Strategies > Graphic Design
BRAND & MARKETING SPECIALISTS
P. 07 577 1630 E. results@tuskany.co.nz www.tuskany.co.nz
7 777 Physiotherapist
P2P Physio
7 77 Tauranga 7
77777777777 7777