PULSE
CHAMBER
Where to from here?
MARCH 2015
2 3 4&5 6 8
Comments from the CEO
Positive future for HB Company
Conferences with a difference Crown Hotel, Napier
PSEC riding BA5 photos high & upcoming events
PROVIDING EXPERT ADVICE TO HAWKE’S BAY BUSINESSES Chartered Accountants and Business Advisors 86 Station Street, Napier T: 06 835 3364 E: napier@bdo.co.nz
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31 March is fast approaching. Contact us for a copy of our Year End Tax Tips! Tax Specialists • Business Advisory • Audit and Assurance Information Systems / IT • Insolvency and Business Recovery Business and Succession Planning • Human Resources PARTNERS: David Pearson Ross Hadwin Glenn Fan-Robertson Heather Hallam Lisa Townshend
Where to from here? What does Hawke’s Bay look like in 10, 20, 30 years T he recent Talking Point written by Hastings District Council Councillor Malcom Dixon was refreshing in that it suggested we focus any thoughts about the structure of the region on our youth and how we build a strong economy to ensure employment of these younger people as they develop. This dove tails into the conversation about keeping our young people in the bay. I am of the thinking that we need to let them experience the world and learn skills so that when they come back they are our net gain – skills and wisdom wise. The secret to all of this is what roles will they come back to? If we think about the changes technology has made to the employment landscape – what will the jobs be that will interest our young people in 10, 20 or 30 years? Whatever these jobs are, my guess is that an environment that has strong infrastructure; includes community centres and offers business facilities to enable young people to be together when they choose; fibre and fast broadband to be connected to the world; and places to enable innovation are probably the minimum level needs. People keep mentioning the old days when we had two big freezing works, Morrison Industries, etc., as if this would be ideal for today. Much has changed and technology and economics have been a significant part of this change. We cannot expect to have industries like we used to have unless we want to use the products they used to provide, transport and the economy that those exports created. Hawke’s Bay has a very strong export economy, currently experiencing highs with beef and lamb prices and the growing pip fruit industries. Hundreds of thousands of new apple trees are being planted for picking in two to three years. Great things do grow here both literally and figuratively. We need to ensure we have the infrastructure to nurture that growth. One economic development plan, one roading strategy that links up
and works for the whole region, one infrastructure plan to prevent duplication or extra burden on rate and tax payers. Attracting Government support is more likely with one cohesive plan rather than a range of sometimes competing plans. The Hawke’s Bay Chamber of Commerce (HBCoC) is the only independent business advocacy agency in Hawke’s Bay and we work hard to ensure some of these discussions make it to the decision makers. Ensuring commercial considerations are part of the matrix of decisions is important to enable business to work well with Council’s. Business friendly Councils welcome new business and help applicants settle and develop, i.e. HDC and Kiwibank. Through the tender process with Napier, Hastings and Palmerston North competing for this same call centre, like Massey it could have gone any way. Great to have it in Hawke’s Bay, great to see people of Hawke’s Bay being employed and great to see the development of people in Hawke’s Bay expanding. We just need more of these opportunities for now, not necessarily in the future but now we need to attract businesses looking for the ideal place to operate from with a range of staffing options and a great lifestyle offering work life balance, i.e. healthy workplaces. We also need to provide opportunities for start-up businesses to flourish. HBCoC is the local agent for The Lion Foundation Young Enterprise Scheme (YES) an initiative that has been around for some time and still offers senior students the opportunity to develop ideas, do market research and take their products or services to market. This program is invaluable for the financial and economic knowledge of young people and gives them experience with starting their own business. Rod Drury did YES when he was at school, local Ben Richmond achieved significant success through the YES program and now has a key role in Xero.
HBCoC also administers the Business Mentors NZ program. A government funded program designed to pair experienced business people with those in business looking for growth, either for themselves or for their business. Another program designed to develop skills and ensure we have a strong economic environment for our future. The HBCoC also has the contract in conjunction with the HB Regional Council for the NZTE Regional Business Partner program (RBP). This is a funding scheme to enable people to develop and grow in their employment. Businesses looking at staff development can approach the RPB manager to find out more about part funding options for them or their staff development. These three programs along with the independent advocacy position the Chamber has are all designed to strengthen and increase the vitality of business in the region – we are the business development specialist for Hawke’s Bay, working in Hawke’s Bay for Hawke’s Bay for today and tomorrow. Best Wishes, Wayne
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Technology helps engineer positive future for company Supplied by Patrick O’Sullivan, Hawke’s Bay Today
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ine Country Sheet Metal and Engineering has invested more than $2 million in cutting and forming technology over four years. It recently imported the only laser cutter of its kind in New Zealand to its Hastings factory. “Everything is a risk, especially that amount, but to a certain degree you have to back yourself and continue to grow on your plan,” owner Noel Pulford said. “We are not rich we have a great finance company and bank behind us.” He said the new laser doubled capacity and halved running costs, compared with the previous laser. “With our older laser we had no more capacity left - we were working 24 hours and Saturday, all we had left was Sunday.” Rather than shed any of the 18 staff - the company no longer operates 24 hours - he expects to hire more due to increasing commissions. Mr Pulford is confident of further growth due to a strong track record. With wife Diane, the former maintenance co-ordinator at Wattie’s bought sheet metal business Garry Kirk Ltd in 2005, operating from its Frederick St premises which it “grew out of rather quick” thanks to door knocking. “I did a lot of cold calling I’d be turning over six new customers a month,” Mr Pulford said. He often “bowled-on-up” to prospective clients without making an appointment. “It seems to work a bit better. I know all your sales manuals say don’t, but it works for me.” In 2008 they bought Wine Country’s current Alexandra St site. “We had always been into property of some sort - we had a lot of residential properties, before we started the business, which we divested.” The new factory was attractive because it was designed for engineering, with a high roof and existing gantry for moving heavy equipment. It enabled Wine Country to fix 68 earthquake-
Small to Medium Business
damaged winery tanks from Gisborne over 16 months. They bought their first Japanese Amada laser cutter in 2011, which cut up to 12mm. The new laser cuts to 22mm and shifts between cuts in the blink of an eye. “I’ve been in the industry for about 40 years. Cuts that took me 20 minutes by hand, now take 20 seconds and the quality is much better - it is almost polished”. Hawke’s Bay Chamber of Commerce chief executive Wayne Walford said
Owner Noel Pulford with a new AMADA laser cutter operating at Wine Country Sheet Metal and Engineering, Hastings.
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the investment showed the region was worth investing in. “There is more business here than you think,” he said. “Hawke’s Bay businesses are leading edge when it comes to technology and investment.” Mr Pulford said taking part in the government-backed High Performance Work Initiative helped with deciding to invest. “It has made us operate a lot better and smarter than how we were - some of the aspects of it gave us the courage to do it.
Going further, staying in touch
Windows 10 on the way
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new version of Windows will ship around September of this year and includes an array of what Microsoft is calling new universal apps. Microsoft promises Windows 10 will run across a broad set of computing devices and adapt to the computing devices you are using — from Xbox to PCs and phones to tablets and tiny gadgets — and what they’re doing with a consistent, familiar and compatible experience. Windows 10 will work on keyboard and mouse controlled desktop computers, touch enabled tablet computers and smart phones. It will offer a new seamless experience with the built in applications of Photos, Videos, Music, Maps, People & Messaging and Mail & Calendar. Microsoft has redesigned the apps to look and feel the same across different devices. Content can be stored and synced through Microsoft’s virtual hard disk drive ‘OneDrive’, enabling users to start something on one device and continue it on another. Such functionality is already included in Office 2013 and Office 365, with the ability to open files on any machine you sign in on. The new version of the operating system also includes Microsoft’s voice activated Cortana personal digital assistant which arrived on Windows Phone devices in some countries last year. Cortana is an artificial intelligence, much like the androids and computers of science fiction, which learns your preferences as you use it. Recommendations, information and reminders are just some of its functionality. The new operating systems ships with Microsoft’s new internet browser code named “Project Spartan”. It’s unclear whether the new browser will ship alongside Internet Explorer or replace it. But the new browser looks and feels as if it was designed for touch screen devices thanks to its minimalist user interface and it integrates with Cortana.
Conferences with a difference… N umerous accolades and awards are a consequence of The Crown Hotel Napier’s dedication to consistently high service, and hard work. Recently the hotel was rated fifth on Trip Advisor’s Top 25 New Zealand Hotels and was listed in the top 25 Most Romantic Hotels in New Zealand. Awards in 2014 include the 2014 Hawke’s Bay Accommodation Award (Hawke’s Bay Tourism Awards), Expedia Insiders Select Award and Wotif.com Award for top hotel in Napier and Number 5 in NZ hotels. Its waterfront location in picturesque Ahuriri is within easy walking distance
to the beach, restaurants, bars and boutique shopping. The hotel offers boutique accommodation with 42 guestrooms and suites, along with conference and functions space. Whilst they have seen growth in the conferencing market from outside the region, principally Wellington and Auckland, their predominant market is within Hawkes Bay. However, there are still many businesses and business owners within the region that may be unaware of the valuable resource right on their doorstep. The Crown Hotel’s distinctive conference facilities are located in
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the beautifully refurbished, original 1932 Crown Hotel building, luxury apartments and in Globe Theatrette. The meeting spaces provide an outdoor courtyard for breakouts, functions or cocktails. With so many options the hotel can cater for conferences, meetings and functions for up to 100 guests. Functions are supported by the latest audio-visual equipment, wifi and high speed internet, full catering and bar. The Crown Hotel has a commitment of providing a dedicated service that is welcoming and understands individual needs, along with tailored and innovative ideas to ensure successful and memorable events. Offering conference and meeting facilities along with accommodation, provides clients with a relaxed and
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intimate experience. The location also provides delegates with offsite activities and alternative dining options. As the only 4 ½ star Qualmark rated hotel in Hawke’s Bay the team strive to maintain personal and genuine service. Attention to detail, understanding the hotels key service deliverables and enhancing guests’ experiences during their stay are underpin the hotel’s business philosophy. The team at The Crown Hotel are committed to continuous improvement to ensure the hotel always exceeds expectations. Conference and meeting facility inquiries may be directed to Conference Manager, Ms Averil Paterson. www.thecrownapier.co.nz, email conference@thecrownnapier.co.nz or PH (06) 833 8300
CHANGE IN TAX TREATMENT OF EMPLOYEE ALLOWANCES
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his article is a reminder for businesses that new tax rules apply in relation to employee allowances and employer provided accommodation from 1 April 2015. In some cases the new rules are able to be applied to previous income years, depending on the relevant benefit and how businesses have historically treated them for tax purposes. The changes introduce specific rules for accommodation, meals and distinctive clothing and also seek to clarify the tax treatment of employee payments more generally. For example, there are some limited exemptions from income (for the employee) for each of employee accommodation for outof-town secondments or projects, accommodation where an employee has to work at more than one workplace on an ongoing basis and for accommodation where an employee needs to attend a workrelated meeting, conference or training course. Where an exemption does not apply, the new rules confirm that the taxable value of employer-provided accommodation is the market rental value, less any rent paid by the employee and any adjustment for business use of the accommodation. If you have any concerns regarding your obligations with respect to employee allowances or other payments, you can contact Greg Neill, Tax Advisor at Crowe Horwath, on (06) 872 9250. This information is general in nature and readers should seek specialist advice before making financial decisions.
Exciting new event
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resbyterian Support East Coast (PSEC) as part of local fundraising is encouraging creativity with an exciting new event Redefine, being held on Saturday September 5th from 10am – 5pm at East Pier, Napier. Redefine “love your op shop” this event focuses retail purchases from Op shops. Entrants use their creativity to change the use and appearance of items. Six categories with prizes judged at the event. There will be a range of activities and fantastic day out for everyone interested in “Charity Op Shopping” Presbyterian Support East Coast’s five Op shops make a valuable contribution towards the $3.2 million needed each year to provide essential social services in the region. Redefine is a perfect event to complement fundraising activities; not only can people get redefining, they can also make donations of pre-loved items.
PSEC Shops • 14 Joll Rd, Havelock North • Cnr Gloucester and White Streets, Taradale – Opens March
Cranford Shops • 306 Queen St West, Hastings • 52 Ruataniwha St, Waipukurau • 126 Dickens St, Napier
Riding High since taking award
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resbyterian Support East Coast (PSEC) is riding high since taking away the award for ‘Supreme Business of the Year’ at the Westpac Hawke’s Bay Chamber of Business Awards 2014. PSEC entered and won in the “Large Business” category, making them to eligible for the “Supreme Business of the Year” award. The judges were impressed by PSEC’s business approach to financial sustainability and service delivery. PSEC’s Chief Executive Officer Sanja Majstorovic says the Board, volunteers and staff were delighted that many years of hard work was publicly recognised through the awards. “It was our honour and very humbling to be recognised by the rest of Hawke’s Bay’s business community for our achievements, and to know our services and business systems have been judged to such high standards,” says Mrs Majstorovic. Winning the top award has helped the organisation continue to raise awareness of the need for the services that PSEC provides. Established in 1946 as the Presbyterian Social Services Association of Hawke’s Bay and Poverty Bay, PSEC has since expanded its work throughout the East Coast region with four different services: Enliven service assists elderly to maximise their independence by providing an alternative to a rest home
care, while Family Works provides specialised care and protection to children and support for their families. Cranford Hospice, Hawke’s Bay’s specialist palliative care provider, supports terminally ill patients and their families. The Real People team supports younger adults with physical disabilities and degenerative disorders. PSEC team’s commitment (300 staff and 400 volunteers) to deliver the best outcome for clients is measured by the Result Based Accountability framework. The professionalism and high standard of operations provide reassurance to all stakeholders that every dollar that they invest is measured against the result and nothing is wasted. PSEC’s contribution to commercial business innovations is not readily recognised by those with limited understanding of the economy, its forces and commercial sector operations. By providing essential services and increasing resilience and workforce capabilities and readiness in the community, PSEC supports other sectors and commercial organisations to operate sustainably and create a value for their shareholders. With the ongoing support from the community, donors and volunteers, PSEC can continue to provide their award-winning services to those most in need throughout the East Coast region.
There are many ways for Hawke’s Bay businesses to support this exciting event to a wide audience. Please contact Pam Joyce, Event Campaign Manager 021 765 644 or loveyouropshop@redefine.net.nz
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Not only are you offensive to anyone. are not Leaving the home in a family home behind good quality paint Choose a high calibre tenant clean and tidy condition with all repairs to be rented. that will who is more likely in order is the key last. home owner, you to attracting Replace ripped may have left a few to pay premium market rent for wall your home. As a paper and glue these in order and maintenance issues back down Oxygen can assist slip. 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Letting & Property Managem ent
biz events DIARY: 4 Decembe r 2014
Who: BA5 - NOW Xmas Party Date: 10 December 2014 Time: 5.30pm - 7.00pm Venue: NOW, 86A Austin Street, Onekawa, Napier Who: Westpac Hawkeâ&#x20AC;&#x2122;s Bay Chamber of Commerce Date: 5th December Business Awards 2014 Venue: HB Showgrounds, Time: 6.30pm - 12.30am Exhibition Hall, Kenilworth Road, Hastings If you have any business events you would like to advertise in this advertisement please email the details to melanie.west@hbtoday.co.nz
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Bringing Down the Power
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he health and safety legislation landscape is changing â&#x20AC;&#x201C; or is it really changing that much? Last week the Hastings District Court fined Britton Housemovers Ltd $60,000 for significant safety failings. However it did not stop there - the Company Director, Arthur Britton, was sentenced to four months home detention. In December 2013 the Company was transporting a house which brought down a power line on a farm property. While the employee moved the power line (with a stick) neither he nor the company notified the power authorities, even after the farmer advised of the situation. Livestock and two sheep dogs were killed, and a shepherd narrowly missed electrocution thanks to the farmerâ&#x20AC;&#x2122;s diligence. This situation could have led to a tragic outcome. The sentencing outcome sends a clear message that disregard for safety will not be tolerated and that Directors can be held accountable for not only their own individual actions, but also the actions (or inactions) of the companyâ&#x20AC;&#x2122;s workforce. This a poignant reminder that Directors and Employers hold a specific duty of care as stipulated under the current Health & Safety legislation (Health & Safety in Employment Act 1992) to ensure the safety of employees and non-employees alike. The Act gives very clear guidance outlining implied duties and responsibilities of Directors, Employers and those who control places of work. They must ensure â&#x20AC;&#x2DC;all practicable stepsâ&#x20AC;&#x2122; are taken to control hazards as they arise ensuring the safety of everyone concerned. Contact the Grow HR Health and Safety team, Nikola Bass and Andrew Morton, on 878 5454 for further information regarding obligations under the Health and Safety in Employment Act.
angela.bellamy@hbtoday.co.nz
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snapped BA5 with Art Deco Trust Chamber events BA5 at Caci Clinic - 11th March BA5 with Pidd Atkinson - 25th March BA5 Child Cancer - 15th April
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