Waikato Business News | November, 2023

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NOVEMBER 2023

The voice of Waikato

A tick for tourism Getting visitors to the Waikato to stay longer and explore deeper is paying dividends already, senior writer Mary Anne Gill discovers.

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aikato tourism has bounced back bigger and better outperforming most of the country post Covid with the region’s 13.2 million visitors spending $857 million on card transactions. Tourist operators are treating visitors to quality and not just quantity and it is paying off, says Hamilton and Waikato tourism chief executive Nicola Greenwell in her wrap of the year ended June 30. That “stay longer and explore deeper” approach has resulted in an annual domestic visitor spend of $751.6 million – up nearly 20 per cent on the previous year, the fourth best in New Zealand and $110 million more than the 12 months ended June 30, 2019. Waikato people visiting Waikato were the top spenders followed by Aucklanders and Bay of Plenty. And the international visitors – Australians, Americans and the British were the top three - came back to spend their money leaving $105.5 million in the regional coffers; up 224 per cent on the previous year and $11 million more than 2019. Sporting, travel and cultural events are back at places including Lake Karāpiro, Mystery Creek, Hamilton Gardens, Waikato Stadium and Claudelands while business events also returned in a big way with Waikato holding 799 and accounting for 10 per cent of all the business events in New Zealand. Only Wellington and Auckland are

ahead of Waikato with the region hosting 108,500 delegates. Hamilton and Waikato Tourism’s role is to generate competitive economic benefit through visitor sector strategies focused on increasing visitor length of stay and spend. Its funds come from the region’s tourism industry and six local authorities – Hamilton, MatamataPiako, Ōtorohanga, Waikato, Waipā and Waitomo. Greenwell says June 30 seems a distant memory as the first four months of this financial year were already busy with events like the Women’s World Football Cup bringing even more people to the region. Recent promotional trips by staff to South East Asia, America, United and Kingdom were looking very strong for the Waikato market. “We’re feeling quite buoyant.” The organisation’s approach has been to promote Waikato as a place to “stop, stay and dwell” and by “selling the dream” it puts Waikato into people’s minds. At Hobbiton before Covid and at the height of the season, a tour bus would run through the movie set every five minutes. Now it is 10 minutes, she said. At Waitomo Caves where there were 24 people on the boat before, now there are 20. Operators are providing tourists with a better experience, better engagement while they are there and a lighter footprint in the community.

Waikato’s $1 million share of the government’s $26 million Covid recovery funds was put to good use. Only $9 million is left unspent, said Greenwell. “We have maximised the use of these funds with many projects, campaigns and activities for our operators. We’ve developed tools and content for the ongoing benefit of the region and the mahi that we undertake.” The tourism organisation topped up its image library used to promote Waikato overseas. It also ran sentiment surveys among residents on what they thought were the ups and downs of increasing tourist numbers. Waikato’s tourism approval rating of 51 towards international visitors was streaks ahead New Zealand’s 44 and the 67 rating for domestic visitors was ahead of the country’s 63 rating. Residents liked the benefits tourism brought such as local businesses opening longer, employment, a greater appreciation of buildings and sites and an enhanced profile. Challenges came with more litter, parking and traffic congestion and damage to the natural environment. “We look back on the year with pride in our region and (our) industry’s resilience to rebound from global pandemic and cyclone damage to now be performing very strongly,” said Greenwell. • See Nicola Greenwell’s column on Page 18

This young Te Awamutu man is playing his cards right – read about Young Enterprise Scheme winner Jacob Chetwin on Page 5.

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WAIKATO BUSINESS NEWS

CONTACTS Editor Roy Pilott 027 450 0115

editor@goodlocal.nz

News Mary Anne Gill 021 705 213 Viv Posselt 027 233 7686 Jeremy Smith 022 317 9499

maryanne@goodlocal.nz viv@goodlocal.nz

jeremy@goodlocal.nz

Advertising Director Janine Davy 027 287 0005

janine@goodlocal.nz

Owner David Mackenzie

david@goodlocal.nz

Office 07 827 0005

admin@goodlocal.nz

Website wbn.co.nz Readers’ contributions of articles and letters are welcome. Publication of contributions are entirely at the discretion of editorial staff and may be edited. Contributions will only be considered for publication when accompanied by the author’s full name, residential address, and telephone number. Opinions expressed are not necessarily those of the publishers. Waikato Business News is published by Good Local Media Limited.

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This newspaper is subject to NZ Media Council procedures. A complaint must first be directed in writing, within one month of publication, to the editor’s email address. If not satisfied with the response, the complaint may be referred to the Media Council P O Box 10-879, The Terrace, Wellington 6143. Or use the online complaint form at www.mediacouncil.org.nz Please include copies of the article and all correspondence with the publication.

EDITORIAL

Getting the News to you When Good Local Media owner David Mackenzie announced the purchase of the respected Waikato Business News masthead a month ago, a simple message about its editorial content was made clear. “Our news stories are pro-business – but not written to promote business,” he said. It is a policy I subscribe to. Many if not most of our stories will be good news for business, but that will not be the starting point for what we write. Good Local Media believes in maintaining a healthy wall between editorial and advertising and has consistently done so in its two community publications, the Cambridge News and Te Awamutu News. The two departments do liaise, it would be folly not to – but the demarcation line between what is a story and what is an advert is healthy. In short, we don’t write complimentary stories about businesses as a reward for their decision to spend money on advertising, and we don’t limit our stories to businesses who take out adverts. It is a policy which ensures the content presented to you, our readers, has passed the news test. This month’s first edition of the Waikato Business News under Good Local Media’s banner contains a raft of stories we have generated – from the Cambridge Festival of Sport to a review of Ombudsman Peter Boshier’s report on council workshops. It also brings you other stories, like the report on Waikato University’s Hiko hub, which has benefitted from having editorial and photographic material provided by skilled and knowledgeable writers working in the communications field for Waikato companies. The Good Local team of writers is led by Mary Anne Gill – whose award winning work has featured in the Waikato for many years. Her stories feature in this edition, and you can expect to see many exclusive reports from her in future. Janine Davy leads the advertising team who will help you promote your business – and she is another award winning highly experienced member of our team. I look forward to helping the Waikato Business News continue a proud history of being Waikato’s voice. Roy Pilott, editor

New bishop appointed By Mary Anne Gill Waikato-born priest Richard Laurenson has been appointed by Pope Francis as the new Catholic bishop in the Hamilton Diocese. The appointment was announced in Rome last month. Laurenson replaces Stephen Lowe, who was appointed Auckland bishop two years ago. It means all six New Zealand dioceses now have a bishop. Laurenson says he is looking forward to his new role with a mix of fear and peace and is praying that he does not disappoint. He is the parish priest at All Saints by the Sea in Papamoa Coast and has served in other parishes around the diocese in Waihi, Taumarunui and Hamilton. Laurenson was born in Hamilton in 1968 and was ordained by Bishop Denis Browne in 1995. He attended Holy Cross Seminary in Mosgiel, has a Baccalaureate in Theology from Otago University (1992) and studied for and obtained a Licentiate in Canon Law from Pontifical Urbaniana University in Rome from 2007 to 2010. As a military chaplain for a decade, he served for a time with peacekeeping forces in Bougainville and Timor Leste. Laurenson is the first priest since Bishop Max Takuira Mariu to have been in the diocese. Mariu, who was auxiliary bishop of Hamilton from 1988 to 2005 and the first Māori to be ordained a Catholic bishop, was born in Taumarunui and died in Auckland 18 years ago. Laurenson says being a parish priest means always thinking parochially, with a nod to diocesan impacts. “This change in my situation will take some getting used to, so I beg the indulgence of my brother priests and the good people of God in the diocese as we all get to grips with my new situation.”

Board members

Rail boost

New chief

Wananga planned

Janey Haringa and Mark Donovan have joined the Waikato Chamber of Commerce board. They were elected along with returning member Andrew Boyd at the chamber’s annual meeting where Tracy Clark’s nine year service was acknowledged.

Simon Wickham will succeed Kelvin Eglinton as Momentum Waikato chief executive in January. Wickham is presently chief executive at Harkness Henry in Hamilton. In making the announcement chair Neil Richardson said the organisation had evolved under Kelvyn Eglinton’s stewardship “and we’re delighted to have someone of Simon’s calibre come onboard for Momentum’s next phase”.

A third daily return run for the Hamilton to Auckland rail service Te Huia will run on Thursdays and Fridays, and a second return service on Saturdays. The additional runs, announced by Waikato Regional Council and KiwiRail will start on February 8.

Māori social impact organisation Tapuwae Roa will stage four wananga – including one in Hamilton on November 18 - as part of a push to grow the number of Māori startups. Business mentor Saara Tawha said it was hoped the interactive one-day wānanga would “ignite the entrepreneurial spirit of participants while providing key tools and skills to progress their business ideas into reality”.

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The Hamilton Diocese is a huge one and a multi million dollar business. It starts in Huntly at St Anthony’s, down to Hamilton and across to the Coromandel and Bay of Plenty, down the eastern coast to Gisborne, east to Taupō, Tūrangi and Taumarunui and then up the west coast to Hamilton with everything in between. Formed in 1980, the diocese has five secondary schools, two of them in Hamilton, 28 primary schools and two early childhood education centres. Its cathedral is the Blessed Virgin Mary in Hamilton East where Laurenson is expected to be ordained on Friday December 8 – Feast of the Immaculate Conception.

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Briefs… Top trainers

Fleetcoach was crowned best fleet safety product at the 2023 Australasian Fleet Champions Awards for their online driver training platform. The annual awards celebrate the achievements of fleet organisations working to reduce road deaths and injuries and improve fleet sustainability. Fleetcoach was based in Hamilton until early 2023 when it moved to Christchurch.

Voting starts

Voting has opened for Mitre 10’s Project Playground initiative, which so far has seen seven schools around the country receive new areas for children to play. Fairfield Primary, Ngāruawāhia Primary, Whatawhata School and Rhode Street School are among schools in a public voting round. One will get a new $90,000 playground.

WAIKATO BUSINESS NEWS

Festival fit for a king A new festival launched to fund a mental health charity could become an annual fixture. Roy Pilott reports. Alwyn Poole was so impressed by Mike King he undertook to raise $10,000 a year for his I am Hope mental health crusade. Poole, an experienced educationalist with a sporting background is making good on that pledge with his Cambridge Festival of Sport which will run at the end of the month. He has a vision of the November 23-26 festival becoming an annual event – yet despite a star studded start, he readily admits

Sister act

Hamilton Mayor Paula Southgate has hosted sister city Chengdu Mayor, Wang Fengchao for economic, education and tourism opportunity discussions. The round table talks included Waikato University and Wintec, Fonterra, Waikato Tourism, the Waikato Chamber of Commerce, Hamilton and Waikato Tourism, Project X, the Waikato Weekly Chinese Newspaper and the New Zealand China Friendship Society.

Hiring in Taupo

Hire company Kennards Hire has acquired Taupo Hire. The company, which has an outlet in Hamilton, has now extended its New Zealand footprint to 29 outlets.

New offices

Financial advisors Total Life have opened a new Victoria St office in Cambridge. The company’s head office is in Invercargill.

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Alwyn Poole

he doesn’t expect the first one will get him over the $10,000 mark. But for King’s Gumboot Friday “I’ll find the money one way or another”. The festival combines two major events – a Gumboot Friday concert at Claudelands and a dinner at Tieke Golf Estate featuring Rod Dixon – and marking the 40th anniversary of his Yew York City marathon win – with sporting events where the greater the participation, the more benefit it will be for host clubs. Poole has lined up Mahe Drysdale and Juliette Haigh as spokespeople for the event. Cambridge High School band Pineja will open at Claudelands for Jason Kerrison and The Feelers. The festival of sport programme includes events aimed at children, adults, families and schools. Swimming, athletics, golf, rowing, goalkicking, basketball, cycling, crossfit, fishing and football events will be held in and around Cambridge. Poole doesn’t hide his

admiration for King. From bawdy – and successful – comedian, King has transformed into a passionate campaigner for greater awareness of mental health since launching his community korero show a decade ago. Poole describes King’s passion for mental health as almost a conversion. He was considering getting King to speak in schools eight years ago, so went and watched him at Tamaki College to be certain he would be the right fit. “Phenomenal – he had the kids laughing, engaged – he also spoke exceedingly well, too, to kids who were not struggling to tell them about their role to keep an eye out for others.” King subsequently spoke to middle schools for Poole. “He blew us away – we thought we knew our kids. He finished speaking and invited anyone who wanted to come up and chat. We left him with eight students and what they told him was extraordinary and resulted in actions we could take to ensure they were looked

after.” King was made an Officer of the New Zealand Order of Merit in 2019. Two years later, through tears, he handed the medal back, imploring people to do something. He spoke of a profound sense of sadness that “no one’s listening”. King’s Gumboot Friday is a free counselling service for people 25 and under and delivers more than 3400 sessions a month. On his website he laments that more than 100 families will lose a loved one this year, and thousands more

Mike King

will be destroyed “trying to navigate a broken system”. “Sadly, this crucial lifeline is not funded by central government and or will it ever be,” he says.

Rowing champion Mahe Drysdale, in his heyday, is now a spokesperson for the event. Photo: Supplied.

Looking at art in the city Ethan Bennett follows Graeme Cairns as he leads a tour as part of the Boon Street Art Festival in Hamilton. In the youngest city in New Zealand, creativity is thriving and can be seen from all angles, though sometimes it is hidden away from plain sight. Offering a captivating glimpse into this is the Boon Street Art Walking Tour, open on Saturdays. It provides the opportunity to discover Hamilton’s striking art murals. Tour guide Graeme Cairns provides an entertaining and informative experience while you roam the city. He started the tour I

was on by mentioning his personal experience as an artist, though his only mural was done back in the 80s. This lined up with the first instance of street art in Hamilton, the 1980s Artline scheme. He also chatted briefly about the history of Hamilton’s city centre. With a liaison between the Boon Festival, the owners of buildings and the council, the opportunity for artists has brought to life some of the side streets and prominent buildings of the city.

Cairns said specific guidelines are in place that ensure the art is deemed appropriate for all ages, something some of the artists had to look out for. From northwestern art styles, such as a bear and a wolf that are prominent in native American art and culture by Mica Still, all the way to traditional Chinese imagery on the side of a Chinese shop by Waikato artists who ate there while studying at Wintec, the range of style is massive. For an engaging look

Graeme Cairns chats about the Wintec students who used to eat at Canton Hong Kong Restaurant and the mural they painted years later

into Hamilton’s street art, as well as a way to simply local businesses and artists, the Boon Street Art Walking

Tour is definitely something to dive into. • Ethan Bennett is a Wintec journalism student.

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WAIKATO BUSINESS NEWS

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WAIKATO BUSINESS NEWS

Jacob plays his cards right Banking A

12-year-old from Te Awamutu who invented an educational card game has picked up the Te Pūkenga Company of the Year at the Waikato regional Young Enterprise Awards. Jacob Chetwin attends Te Awamutu College.

The year-12 students’ game is designed to teach year 7 and 8 students about business concepts and financial literacy. The strategic game consists of 75-card deck and has been played by over 700 students across the Waikato. Jacob plans to continue developing and

Martin Brock presented Jacob Chetwin, with his certificate.

expanding his business, called Liquidation, into 2024. He will compete at the Lion Foundation sponsored Young Enterprise National Awards in Wellington on December 4. More than 250 Year 12 and 13 students participated in Young Enterprise Scheme in 2023, setting up and operating their own businesses, creating, promoting, and selling a product or service, conducting market research, planning, budgeting, managing risk and turning problems into opportunities. The annual event aims to provide young people with opportunities to develop an entrepreneurial mindset. Results from the regional awards night: Foster Construction’s Runner Up – Reusaballs, Sacred Heart Girls College (Hamilton), Waikato Chamber of Commerce’s Excellence in Financial Management Award – UniquelyMe, Sacred Heart Girls College (Hamilton), EMA’s Excellence in Production Award – Down to Earth, Hamilton Boys High School, Waikato Pacific Business Network’s Pasifika Enterprise Award – Doughnas, Sacred Heart Girls’ College (Hamilton), Waikato Business News’ Excellence in Promotion and Marketing Award – Cheeky Chocolates, Fraser High School, CAL Isuzu’s Excellence in Innovation Award – Tyred Dogz, Hauraki Plains College, The University of Waikato’s Excellence in Leadership Award – Anna Hart, Hauraki Plains College, Excellence in Sales - Bubble No Trouble, Waikato Diocesan School for Girls, Best Trade Fair Presence – Reusaballs, Sacred Heart Girls College (Hamilton), Excellence in Sustainability Award – Sprowt, St Peters Cambridge, Best Annual Review – Play Kāri, Waikato Diocesan School for Girls, Commitment to Business Award – Liquidation, Te Awamutu College.

by degrees

Waikato University has introduced the country’s first Bachelor of Banking, Finance & Technology. Waikato Management School pro vice chancellor Matt Bolger said employers say they will increasingly need people who can thrive in both finance and technology: “The world of finance runs on digital technology. From investment platforms and digital currencies to the way we make payments, nothing happens without digital. Yet no undergraduate degree in New Zealand currently recognises the need for these dual competencies.” “The BBFinTech will fill this critical skills gap. Graduates will help businesses continue to innovate and evolve - whether they are a local Kiwi champion or a Silicon Valley startup.” A 2022 Fintech Insights report found that 200 New Zealand tech companies generated an export revenue of $1.8 billion that year. The Reserve Bank of New Zealand’s investigation into digital currencies also signals an even more cashless future, according to Bolger. Shane Marsh, founder of fintech innovator Dosh and University of Waikato alumni, said they will require more skilled people He says this sector has a range of opportunities and that regulation will be especially critical. “There is a real need for people with fintech skills who can help shape the future of financial services. We need people who understand how open banking, digital currencies and emerging technology will define the future solutions we want in New Zealand and overseas.” The BBFinTech degree will arm students with expertise in financial markets, investment platforms, digital finance, banking operations, automated trading, blockchains, cryptocurrencies, cyber security, and more.

ADVERTORIAL

Grayson Clements associate thrives on simplifying the complex for clients Grayson Clements’ Associate Lawyer, Philip McHugh, thrives on complexity and the challenge of navigating uncertainties.

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hat sets him apart, however, is his ability to put the individual, his client, at the center of the issue and develop bespoke legal solutions to protect them, their interests, and their families. Philip was recently promoted from lawyer to associate at Grayson Clements, a law firm based at Hamilton’s Innovation Park. The firm was established in 2008 by directors Michael Grayson and Andrew Clements with the desire to grow a firm that was “a little bit different” in its value-driven, clientcentric approach. It now employs 26 legal professionals across a wide range of areas. Philip’s love of learning is clear, and it’s an approach that he carries into his interactions with clients. He has a Bachelor of Arts, majoring in

philosophy and political science, another Bachelor of Arts, majoring in history and religious studies and a Bachelor of Arts with Honours in Religious Studies from Victoria University in Wellington. After forging a successful career in retail, including a stint in the complaints department for a small ship cruise line in London, Philip went back to university to study law in 2015, graduating with a Bachelor of Laws with Honours in 2018. He has been practicing as a solicitor since then, reaching associate level after only four years of his admission to the bar. He is also passionate about developments in emerging technologies, including blockchain, encryption, and AI and the developing legal framework to regulate it. At his best in complex situations, Philip is

When I’m working with a client, I start by getting to know them, what drives them, what their internal motivators are. By knowing this, and building a great relationship, we can come to a legal solution that best suits their needs and can grow as they grow. passionate about helping his clients achieve their goals with simple legal solutions. “Just because your life is complex, doesn’t

mean your legal structure has to be,” he says. It’s no surprise then that Philip thrives on making his clients feel comfortable with their legal structures and explaining complex legal terms in plain language. His specialty is in helping individual and corporate clients structure their relationships with deeds, agreements and other documentation, and he has a particular interest in the interplay of legal persons (companies, trusts, Limited Partnerships, etc) to protect, preserve and commercialise his

Philip McHugh clients’ potential. “As a lawyer, I love exploring the ‘what if’ scenarios with clients, going down rabbit holes and getting to the heart of a situation and exploring the opportunities from there. It’s really satisfying when you’ve explored all the options available and come to a solution that is beneficial for the client, not just in protecting their assets, but also in knowing you have looked at every possibility and come to the best solution based

Grayson Clements – Design, Deliver, Protect Grayson Clements was established in 2008 by lawyers Michael Grayson and Andrew Clements, who both had a desire to grow a firm that focused on designing solutions, delivering results and protecting people. Their work and reputation have gained traction and their client base has grown organically to a point where they now have a team of 26 staff across a range of practice areas.

on their needs. “I’m particularly interested in the technology space as it relates to the law, especially as so much of it has not been legislated and there’s no right answer. There’s a huge amount of work to be done in that space and that can only come through us, as legal professionals, learning more and doing more work in the field to establish some best practices.”


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WAIKATO BUSINESS NEWS

Hiko will open for business Businesses will have an opportunity from next year to work at Waikato University. So what is Hiko all about?

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aikato University has announced plans to establish a new hub for business opening next year. The Gateway building, a short walk from the Waikato Management School and The Pā, will become the Hiko hub which will provide opportunities for businesses, particularly those who want to work with students and researchers and take advantage of campus grounds and amenities. It follows similar initiatives such as the Newmarket Innovation Precinct in Auckland. Hiko means lightning in te reo Māori and reflects the fact the new venture is about the ignition of big ideas and the energy needed to grow them.

The project is being overseen by chief operating officer Jim Mercer and Pro-Vice Chancellor at the Waikato Management School, Matt Bolger. Natalie Swart recently appointed as the Hiko Hub manager. The university says the new hub aspires to improve the connection between the business community and the University, acknowledging it can be a challenging landscape to navigate. “This is a concept that’s been brewing for several years, motivated by a desire to be more aligned to the needs of specific industry groups, as well as making smarter use of our space,” Jim Mercer said. “We’re confident Hiko hub meets a real need for small businesses in the region who want to offer their

teams a vibrant and modern workplace and generally be part of something bigger.” Hiko will comprise a mix of open plan, private and semi-private offices. Operational costs and a raft of support services will be bundled into tenancy fees. The Hiko team say interest has been strong, particularly from the technology sector. The university had taken inspiration from co-working spaces around the country, along with feedback from business owners across the region. Swart said. “What we’ve been hearing is that many of them are reassessing what they need from a commercial office but creating a sense of community when people are in the office is more important than ever.”

Pro Vice-Chancellor for the Waikato Management School, Matt Bolger, left, pictured with HIKO hub Manager Natalie Swart and Chief Operating Officer Jim Mercer.

Scholars announced The Waikato Regional Council and WaikatoTainui Te Arikinui Dame Te Atairangikaahu scholars for 2023 have been announced. The list includes 10 Waikato tauira studying a range of academic fields have won. The scholarships provide up to $4400 to support Māori students pursuing fulltime undergraduate programmes at Waikato University, particularly in resource management or environmental fields. Applicants must be enrolled in full-time undergraduate study at Waikato University, be of Māori descent, and from a family that resides in the Waikato Regional Council boundary. The scholars are • Tina Hille-Taylor (Te Waenganuitanga), 19, who is studying a Bachelor of Management Studies with Honours and Bachelor of Laws and lives in Hamilton. • Jasmine (Ngahuia) Young (Te Rarawa), 20, is due to complete a Diploma in Te Tohu Paetahi and is enrolled for further undergraduate study. • Keana Hepi (Tainui), 19 is studying a Bachelor of Arts and Bachelor of Laws and lives in Hamilton.

• Tui Barrett (Tainui/Kaitahu), 26, is from Hamilton is undertaking a Bachelor of Health Sport and Human Performance. • Tiffany Walker (Ngāti Tūwharetoa), 36, from Tūrangi is undertaking a Bachelor of Environmental Planning in Te Ara Taiao: Māori and the Environment. • Atawhai McDonnell (Tainui), 19, from Hamilton is undertaking a Bachelor of Arts. • Mekayla Peneha (Ngāpuhi, Ngāti Maniapoto, Te Rarawa, Ngāti Kahu), 30, from Ngāruawāhia has just commenced her third year of study of a Bachelor of Health in Poutū-manahau Population Health. • Kimihia Solomon-Banks (Tainui), 24, from Raglan is undertaking a Bachelor of Business. • Aaron Barnsdall (Waikato, Raukawa, Ngāti Tūwharetoa, Ngāti Pūkenga, Pouākani), 38, from Hamilton is undertaking a Bachelor of Environmental Planning in Te Ara Taiao: Māori and the Environment. • Ella Cooper-Levin (Whakatōhea), 21, is completing an honours year of her Bachelor of Computing and Mathematical Sciences and is from Te Kauwhata.

Celebrating scholars: Back, from left, Bruce Clarkson (Waikato Regional Council), Dr Charles Lee (Waikato University), middle, Kimihia Solomon-Banks, Glenda Taituha (Waikato-Tainui), Tim Manukau (Waikato University), Aaron Barnsdall, Tui Barrett, Johnny Kenny (Regional Council), Tina Hille-Taylor, front, Mekayla Peneha, Hone Thompson (Tumuaki o te Kingitanga), Jasmine (Ngahuia) Young, Atawhai McDonnell, Tiffany Walker and Keana Hepi.

AI – the need for transparency Heather Claycomb sees huge benefits that will come with artificial intelligence adoption – but she believes it has muddied the waters of trust between businesses and their customers. Businesses face new challenges when building and maintaining trust in the ‘ChatGPT age’, Heather Claycomb says. With the help of artificial intelligence, AI, businesses are streamlining operations, enhancing customer experiences, and even creating written and visual content that was once the sole domain of human creativity. But people are nervous about the use of AI and distrustful of companies using it, Claycomb, a director of PR agency HMC, says. The trust issue is tackled in the company’s latest podcast. A global, 31-country

survey by Ipsos in July found New Zealanders were more nervous about AI and more distrustful than their global counterparts. It found only 43 per cent of New Zealanders trust companies that use AI will protect their personal data, and a similar percentage trusted companies that use AI as much as they trust other companies. In the same study, 63 per cent of New Zealanders surveyed said products and services that use AI make them nervous - compared with a 52% global country average. “Generative AI is relatively new – we are just days away from ChatGPT’s oneyear launch anniversary,”

Claycomb said.. “However, most people in our community have virtually no awareness or understanding of generative AI technologies. So, when they discover that a photographic image isn’t a real picture, or that an article was produced by a computer, not a person, it jars their mind. They can become distrustful very quickly.” She says one key to maintaining trust when embracing the use of generative AI is full disclosure. “Not only does this maintain business integrity, it also helps people acclimatise to the use of the technology. As AI becomes

normalised, it’s likely disclosure will no longer be necessary. But it is for now,” she says. With AI stirring up nervousness and suspicion, businesses must be purposeful to reap the benefits of trust. “Creating a high-trust organisation is basically your license to operate. It gives you the power to take risks and recover quickly when you make mistakes. Trust gives you a competitive advantage. And high-trust organisations reap the rewards of loyal, hard-working staff,” says Heather. • See meet your partner, Page 18

new


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BUSINESS SHOWCASE

How Company-X grew during the pandemic

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t was the worst of times. Company-X co-founders Jeremy Hughes and David Hallett called a companywide meeting as New Zealand responded to the global pandemic with its first lockdown. Hallett and Hughes were prepared for the worst and hoped for the best. More than 50 people joined the call from home offices, bedrooms, dining rooms and lounges around New Zealand to hear the co-founders promise that they would take Company-X to a fourday week rather than lose anyone in a pandemic-propelled downturn. The Company-X team took a collective sigh of relief. Three years on and Company-X has retained and grown its team while avoiding going to a four-day week. “We immediately expected a downturn and a struggle to retain our team,” Hughes reflected. “Our goal was to keep everyone together and leave no one behind,” Hallett added. Hughes and Hallett had spent eight years building a team of around 50 highly skilled, tightly knit, selfmanaging, and co-located team of analysts, architects, designers, developers, testers, and project managers. Company-X’s team had earned a reputation creating tools and systems that help their clients make evidencebased decisions. The software specialist is renowned for creating solutions that consolidate

“We hired a bunch of people who are prepared to take initiative. That is one of the things that really made a difference.” asset, financial and other statistical information from a range of sources to provide insights into performance. Company-X supports clients to improve the quality of business-critical data for effective decision making. The team also has deep expertise in simulation and virtual reality. “We firmly believed we had a fantastic team that we wanted to retain,” Hughes said. “Looking back, we are so pleased, grateful and thankful that we came through the last few years growing as a company and retaining the team,” Hallett said. “We hired a bunch of people who are prepared to take initiative. That is one of the things that really made a difference,” Hallett said. Company-X had implemented strategies that supported team members mental, physical, and

emotional health during the pandemic. “The vision was to help the team ‘stay the course’,” Hallett said. “During the pandemic it was not unusual for team members to receive a phone call from a wellbeing representative asking how they were going.” Company-X sent care packages to team members who tested positive for COVID-19. “We are proud of what we have accomplished during the pandemic,” Hallett said. “We have shown that we are a resilient company that is able to adapt to change,” Hughes concluded.

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Above: Company-X retained and grew its team during the COVID-19 pandemic. Below: Company-X co-founders Jeremy Hughes, left, and David Hallett.


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NOVEMBER 2023

WAIKATO BUSINESS NEWS

Being mayor, doing that… Mary Anne Gill catches up with Waipā’s first female mayor, Susan O’Regan.

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lenty of people are prepared to put a wager on Waipā mayor Susan O’Regan becoming a National Party member of Parliament. But right now, it would be a tough ask prising her out of the job she describes as the best she has ever had. Politics pores through her veins – her mother Katherine O’Regan was the first woman elected on the Waipā County Council and was then an MP from 1984 to 1999; serving as a minister in various portfolios during the fourth National government. In 2018 when Katherine died of breast cancer – diagnosed through the free screening programme she helped set up as Associate Health minister – Susan was in her first term as a Waipā district councillor. Two years earlier she turned down the opportunity to become the National Party MP in Taranaki-King Country because she was pregnant with son Jack. The 51-year-old is Waipā’s first female mayor. O’Regan recently reflected on the 12 months as mayor before heading off to Le Quesnoy in France to represent Waipā at the opening of Te Arawhata – New Zealand Liberation Museum followed by her first break in a year. Cambridge, Waipā’s largest town, and Le Quesnoy are sister cities and in 2018 Waipā controversially donated $150,000 towards the museum’s establishment. O’Regan abstained early on from voting on moral grounds saying she would

have preferred to see that money go on a museum of relevance for Waipā ratepayers – one which would acknowledge the New Zealand Land Wars’ impact on the district. “I always had a little bit of reservation in my mind because there were our own histories here which needed attention. “But this is a crucial piece of telling New Zealand history in an area where there is a paucity of New Zealand stories. “It’s such a great story and the connection Cambridge has to Le Quesnoy and the town has with New Zealand means it is an important story to tell.” When O’Regan stood for the mayoralty last year, her biggest task was getting to know what the issues were in Cambridge. She is closely aligned with Te Awamutu. The Judge Road 240ha dairy farm she and husband John Hayward have is closer to Te Awamutu than Cambridge – the town is where she and her family play sport and gravitate to - plus she had been a practising barrister in Te Awamutu specialising in family law. So, she worked Cambridge hard and secured the business community’s support at the Chamber of Commerce’s Town Hall meeting. She romped home campaigning on “A Time for Change” against incumbent Jim Mylchreest and newcomer Chris Woodhams, a brash businessperson who lost crucial support when he said Cambridge businesses had nothing to offer by way of employment

Meet the family: Susan O’Regan and husband John Hayward with their children, from left: Lily, George, Jack, Emily and Ben. Photo: Mary Anne Gill.

opportunities. As Waipā’s first female mayor, she joined other Waikato women in politics with two National Party MPs Louise Upston (Taupō) and Barbara Kuriger (TaranakiKing Country) and Labour’s Nanaia Mahuta, whose Hauraki Waikato seat was won at the election by Te Pāti Māori’s Hana Rawhiti Maipi-Clarke. There are four Waikato women mayors: O’Regan, Jacqui Church (Waikato), Paula Southgate (Hamilton) and Adrienne Wilcock (Matamata-Piako). Plus, there are three women deputy mayors – Angela O’Leary (Hamilton), Liz Stolwyk (Waipā) and Carolyn Eyre (Waikato) and rounding out the female influence is Waikato regional

council chair Pamela Storey. O’Regan threw herself into the job which she describes as “full time and then some.” Her conscience played havoc with her emotions and time in those earlier months. She now admits she did too much. “It’s a female thing. If I’m not here, you are failing the people, and if you are here too much, you are failing the children, the husband, the farm.” She feels she has the balance right now even tacking on some days away in Europe with her husband at their own cost. “He’s never been to Europe, and I only had a fleeting visit 20 years ago.” O’Regan is expecting a tough workload on her return, a reference to rising

Women in charge: A zone two meeting at Lake Karāpiro brought together some of Waikato’s female leaders, from left: Pamela Storey (Waikato Regional chair), Adrienne Wilcock (Matamata-Piako), Susan O’Regan (Waipā), Paula Southgate, Angela O’Leary (both Hamilton) and Liz Stolwyk (Waipā). Photo: Mary Anne Gill.

Watching you: National’s Christopher Luxon, then Leader of the Opposition, and Taupō MP Louise Upston will have to wait a bit longer before Susan O’Regan joins them in Wellington. Photo: Mary Anne Gill.

costs and rate increases or the three Is – inflation, interest and insurance. “The very obvious elephant in the room is that very strong headwinds in the financial space. I can’t emphasise enough the challenges we will have.” In that respect Waipā is not alone among Waikato councils but she rules out any thoughts of a Super Waikato City including neighbours like Hamilton and Waikato. “We already have a high level of cooperation and there are a lot of (other) ways to collaborate.” Collaborations, shared services, deals with neighbours – that is the way to do it, she says. “I see we (already) have a high level of co-operation.” There are two more years before another local body election – O’Regan is in the camp which thinks it should be four and not three years. “We are making decisions that fit into a picture that lasts more than a three-year

cycle.” Decisions should be longer-term ones making elected officials better ancestors. She wants to keep focused on the end goals. Prime Minister Christopher Luxon once gave her some advice – ‘write your last report or letter now and when you do decide to leave or are pushed out, you better hope that what you said at the beginning has come to fruition’. The fact she references Luxon is a nod to O’Regan’s continued interest in national politics but for now she loves being mayor more. “It’s been really fun. It’s such a privilege, a huge privilege, it’s the best job I’ve ever had. It just plays to all of the parts about me as a person. “I just love this district. The more time I spend out of the district, at mayoral things and local government things, I realise how fortunate we are.”


NOVEMBER 2023

9

WAIKATO BUSINESS NEWS

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WAIKATO BUSINESS NEWS

NOVEMBER 2023


NOVEMBER 2023

11 ADVERTORIAL

WAIKATO BUSINESS NEWS

what does the change Playing pass So, of Government really the parcels mean for you?

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A Waikato couple have gone head to head with New Zealand Post – what’s it all about? Roy Pilott reports.

Dani and Ian Kennedy fear for their company’ future.

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he next stage of a festering row over postal deliveries is days away as Justice Gault prepared to release a ruling on an injunction bid. Te Awamutu couple Ian and Dani Kennedy are challenging New Zealand Post’s plans to change delivery services and introduce a Multi Run business model. The couple say they have invested significant money and their company, Three Hills Group Ltd , is protected by a contract, while New Zealand Post is attempting to change who can deliver where. In particular, the company wants to make changes in rural areas which are being swallowed up as towns and cities expand. One such case is the outskirts of Hamilton, where the RD3 run Dani and Ian Kennedy maintain is, they say, under threat. They were in the High Court in Hamilton last month challenging the change – now they are waiting to see whether or not their injunction application succeeds. Their case is backed Pro Driver Advocates whose chief Peter Gallagher said the latest edition of the company’s communique discusses the idea of “one network” for one person to deliver both mail and parcels to each address. “What this is saying is what we have been stating all along – that the contracted right

for an exclusive run is only as exclusive as NZ Post decides it is – and this is definitely not what these RD guys have been paying big money for.” The Kennedys are well known in their RD community – when a parcel is dropped off, they send a text message to someone in the home. Gallagher says the couple invested almost $500,000 in their run four years ago, and New Zealand Post wants to terminate their contract to make way for a multi run courier business model and increase its use of CourierPost deliveries. The court has been told the couple were the victims of a marketing strategy which was entirely for the benefit of NZ Post “and its culmination was in the dismembering of urban fringe rural delivery routes”. Gallagher says mail is declining, but there is an increase in parcel fright – and that is where future profit lies. Dani and Ian Kennedy updated their customers last month with a “we need your support” flyer outlining their concerns and inviting them to tick a box to indicate their support. It says the new One Network model was announced with no consultation with existing operators.

f we look at the respective policies of ACT, National and NZ First, there’s a lot of commonalities. They include: • Cancel the planned fuel tax hikes which would have added another 12 cents per litre of petrol. • Repealing the Ute Tax will be a boon for farmers and the large Waikato motor industry. • Start reducing public sector expenditure by 6.5% on average by requiring CEOs to identify back-office spending not critical to frontline services. • Establish a permanent Rural Regulation Review Panel to assess regulations affecting the primary sector in order to cut red tape. • Introduce legislation to restore 90day trial periods for all businesses. • Begin work on establishing a National Infrastructure Agency and issue a draft Government Policy Statement on Transport reflecting new Roads of National Significance and public transport projects. • Begin work on National’s Going for Housing Growth policy, to expand housing supply, build infrastructure and give councils flexibility to deliver. • Introduce legislation mandating approval of building materials and product systems meeting international standards equivalent to New Zealand’s. • Repeal the RMA 2.0 legislation and introduce a fast-track consenting regime. • Repeal of the Three Waters legislation. And, even if NZ First does come into a formal coalition arrangement, there are things they are keen on that would be good for business. Such as: • On infrastructure and logistics,

Don Good, CEO of Waikato Chamber of Commerce. they want the medium-term focus to be on infrastructure that improves productivity. A new Ministry of Infrastructure will be tasked with determining an optimal investment programme to provide greater investment and employment certainty for private sector contractors. From the Waikato Chamber’s perspective, there have been three projects we wish to see the new government start ASAP. The first is complete the Cambridge to Piarere extension of the Waikato Expressway. The second is the University of Waikato Medical School. It is an investment in our regional NZ health and well-being. The third is the big Southern Links project which gives the Waikato region a huge economic boost. So, a lot of positive changes that will make it easier to do business, both here in the Waikato and around the country. We look forward to the proposed mini budget before Christmas which will give us clear direction as to what the new Government wants to achieve.

Look before you leap… Two Waikato centres have tapped into an app which enables users with specific needs to “call in” ahead of their visit. Cerge is a communication platform which assists people with disabilities. In its promotional material Belgravia Leisure says “as an individual with a disability, imagine having an exceptional guest experience every time you visit your local leisure centre, simply by using an app to alert the venue ahead of time of your service preferences.” It says the facility is now available in five centres around New Zealand and 30 venues in Australia.

The New Zealand centres are the Gallagher and Huntly aquatic centres in Waikato, Mount Albert Aquatic Centre, Franklin Pool and Leisure Centre and Trust House Recreation Centre in Masterton. The Cerge app is free and allows users to alert customer service staff to their needs. Belgravia says it provides an access pathway. “This includes personalised greetings, express check in or skip the queue, having accessible equipment set up before arrival, arranging guided tours pointing out accessible features and any other tailored experience necessary to allow the guest

to have an exceptional experience, all whilst removing the guesswork for staff to provide these services.” The platform can also provide virtual tours where visitors can explore venues in advance and audio guides powered by A.I. Belgravia Leisure operates more than 230 venues across New Zealand and Australia. “Launching Cerge in Belgravia Leisure’s New Zealand venues is a significant step towards our mission of making leisure venues more inclusive and accessible,” the company’s Disability and Diversity Manager Jeff Walkley said.

Connect - Grow - Inspire - Represent


12

ADVERTORIAL

Looking to maximise value – well, you can’t sell a secret

Meta picks up legacy award Pacific business successes have been celebrated in Hamilton

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n the current challenging environment of commercial real estate, marketing your property for sale is not just a choice; it’s a strategic necessity. Effective marketing can often significantly increase the likelihood of a successful sale, firstly by leaving no stone unturned to find the best buyer(s) and secondly by adding the element of potential competition. Many vendors (and I know of some agents too for that matter) seem to think that if it’s on TradeMe and the agent has fired it off to a few parties from their database, then job done. Not so! When executed well, marketing is an investment, not an expense. So why market your property and what are the benefits ? 1. Attracting a Larger Pool of Potential Buyers • You broaden the buyer pool by ensuring it is seen by a wide and diverse audience. This is essential in a challenging market where finding the right buyer can be more complex. 2. Exposure and Competitive Advantage • Your property competes with numerous other listings, so by highlighting its unique features, benefits, and potential, your property is set apart to stand out and make it more appealing to potential buyers. 3. Price Optimization • Wide coverage increases the likelihood of receiving multiple offers, which can lead to a competitive bidding process that ultimately improves terms and drives up the selling price. 4. Speed of Sale • Effective marketing can expedite the sale of your property. In a challenging market where properties may linger, a strategic marketing plan can reduce the time your property spends on the market. Length of time on the market is often detrimental to its value. 5. Confidence Building • A well-planned marketing strategy demonstrates commitment to selling, which can instil confidence in potential buyers. It showcases a genuine desire to sell and provides transparency and honesty in the transaction. Some Potential Marketing Components To Consider • Websites: such as Realestate.co.nz, Trademe.co.nz, Oneroof.co.nz • Databases: both the agents and their companies. • Print: major daily’s

NOVEMBER 2023

WAIKATO BUSINESS NEWS

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such as Waikato Times, NZ Herald, The Press, The Post, Sunday Star Times • Print: regional papers exist all around the country and have strong local followings • Signage: Pedestrian and vehicle profile - a call from a sign indicates that the party knows where the property is and they like what they see. • Social Media: LinkedIn, Facebook, Instagram, Google etc. this can be demographic and geo targeted. • Industry and trade publications: Real Estate company portfolios, databases, newsletters, social media coverage etc. And there are more ……….. “The number one reason people don’t sell, is because they believe there is a better offer out there” John Abbott Marketing isn’t a cookie cutter or one-size-fits-all approach. Effective strategies need to be adjusted to align with the specific property and changing market conditions. Ensuring that your property remains attractive to buyers even in challenging times is absolutely paramount. Whether it’s a small vacant industrial unit likely to attract a local owner occupier, or a large commercial building with national/ corporate/government tenants attracting national and even possibly international interest, a marketing investment must be tailored specifically to the likely buyer pool for your property. What is the one thing that potential purchasers are currently looking for? – genuine vendors with genuine motivation to sell. These are the instances that attract more buyers, which invariably leads to the prices being maximised. Talk to your marketing specialist today, to ensure that the best possible plan has been put together, ensuring maximum exposure – and that the marketing content is being reviewed regularly. Mike Neale. Managing Director NAI Harcourts Hamilton.

he Waikato Pacific Business Network has presented the founder of a Hamilton East business with a Legacy Award. Meta Tyrell is a co-founder of the LM4 Group which has its head office in Hamilton and branches in Auckland and Tauranga, Her enterprise was launched in 2002 when she set a goal of enhancing the lives of her community by fostering better career opportunities. The company oversees three subsidiaries - Alignz Recruitment, Puatele and Oyonnx – employing more than 400 people and serving more than 100 clients. There are plans to expand the business into Christchurch, Wellington and Samoa next year. The company is providing training and labour for the civil works across the Rotokauri Rise Project, a residential development which will encompass nearly 900 sections and include three park areas and several wetlands. It is also providing training and labour for the work on the Lockerbie retirement village development at Morrinsville and has partnered CB Civil to provide training and labour on the Peacocke wastewater project for Hamilton City Council.

Almost 300 people were at the inaugural Waikato Pacific Business Excellence event where the presentation was made by network chair Rachel Afeaki Taumoepeau. Excellence awards were also presented to Josh Stowers (Mixmaster) Robbie and Jacina Stapleton (Wash and Pest Control), Pivot Bail Accommodation, Talents of the Pacific Academy, Deep Dive Division, Grace

Ratima (Acie Designs), JP Landscaping Ltd, TJ Brothers Construction, Waikato Shutters & Blinds, Felila Asiata-Feausi (Oyonxx), Ray Allen, Meleane Burgess (Dynamic Advisory), Taimaaiono Grace Stowers (Hartson Stowers Law), Nanise Ginnen (Impact Hub Waikato), LT8 Design and Fabrication and Surgeons on Clarence.

Meta Tyrell, right, pictured with Hamilton mayor Paul Southgate and, left, Impact hub Waikato chief Nanie Ginnen.

Bess be blessed

An aerial view of Bess at Rotowaro.

The country’s largest battery energy storage system – Bess - will store energy to meet the daily demands of over 2000 homes and provide reserve support for the North Island grid. Bess was being commissioned lsst month, marking the completion of the 35MWh project at Rotowaro, Huntly, started in July 2022. The project was a joint venture involving Infratec and its parent company WEL Networks.

“The battery will maximise the benefits of solar power, providing charging capacity for electric vehicles and back up during grid emergencies,” WEL Networks chief Garth Dibley said. The battery’s role in reducing the need for non-renewable energy sources would also be a contributor to lowering emissions in support of New Zealand’s net zero emissions target by 2050. The battery is the first of its scale in the country.


NOVEMBER 2023

13

WAIKATO BUSINESS NEWS

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Clean Car Discount not included -and please visitsubaru.co.nz/CCP subaru.co.nz/CCP $136 and situation, afee PPSR feeand of On costs are excluded. Clean Car Discount Fee isFee not included - please visit were not driven on salt water conditions as Subaru do recommend exposing toissalt water. this offer, which is$7.39. available at participating Authorised Subaru Centres. Vehicles were parked in vehicles a controlled environment although depicted in a beachtoto find out the CCP implications on Subaru models. Offer valid until 31st October 2023 or while stock lasts. Subaru reserves the right to vary, withdraw or extend were not on models. or throughOffer salt water Subaru 2023 do not recommend exposing salt water. ut the CCPsituation, implications on driven Subaru valid conditions until 31st as October or while stock lasts.vehicles Subarutoreserves the right to vary, withdraw or extend this offer, which is only available at participating Authorised Subaru Centres. 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14

NOVEMBER 2023

WAIKATO BUSINESS NEWS

ADVERTORIAL

What Immigration Changes can we expect from the new Government?

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ew Zealand’s immigration settings over the last 6 years of the Labour Government were very significantly impacted by the Covid border lockdown, and then the protracted border re-opening. It has only been in the last 15 months that the Government finally introduced the employer accreditation regime that it had announced pre-covid, the new investor category, and then, and only very recently, the new Skilled Migrant residence settings. Looking back, the main features of the last few years has been the transition to online visa application processing, the staggering number, and frequency of, policy changes (almost every week!), and the increase in incidence of migrant exploitation. So, what can we expect from the new Government? – and what would we like to see! The National Party has already announced it will introduce a 5-year visitor visa for parents and grandparents to visit their family in New Zealand, and which can be renewed for a further 5 years. It will also look to expand the work rights for international students in an endeavour to revitalise the international education sector. Three capped visa programmes to attract top talent will also be introduced. The International Graduates Visa, is a 3 year open work visa for graduates of the top 100 universities in the world; the Global Growth Tech Visa is a residence visa for people who have been working in top global tech companies earning NZ$400,000 pa; and the Digital Nomad Visa which is a 1 year visa to attract highly mobile people to come to New Zealand while working remotely for an overseas-based company. Collectively there is a cap of 1,000 people under these three new visa policies. As always, the devil will be the policy detail as good visa ideas often lose their “gloss” once the policy-writers have their say! National has already expressed concerns, in regard to the present high levels of immigration, that some 60% of the workers now coming

to New Zealand fall into lower skill job categories. As a consequence it is likely we can expect some “tightening” in this area, with maybe more emphasis on getting NZers into, or trained for, these jobs and/or employers having to at least evidence they are doing more to fill these roles with NZers. Because the employer accreditation, skilled migrant and investor policies are all still being “bedded in” it is unlikely that there will be any immediate changes. However, there are obvious flaws in all these policies which will need attention sooner rather than later. It is expected the new Government will introduce a new visa fee regime in which an additional fee is be paid for urgent visa processing. This may be part of a bigger plan to make Immigration New Zealand a profitcentre in its own right, and similar to what is the case in Australia. Expect visa cost increases! Most current immigration policies have a linkage with the New Zealand median pay rate (currently $29.66 ph). This linkage was introduced by the Labour Government on the understanding it was, in some way, a measure of the skill level of the employment role. Clearly this is not the case and, instead, the arbitrary imposition of the median pay rate across the various visa categories has simply had the effect of pushing up employer costs across the board. The median pay rate increase to $31.61 ph next February should, at least, be deferred while the new Government considers the impact of this additional cost on businesses – many of whom are under financial strain. Overall, what we would most like to see is the new Government being much more willing to engage and consult on the pragmatism, risks and outcomes of the policies it wishes to introduce to ensure these can best deliver the intended objectives. Taking a little more time to get it right first time is one lesson the new Government can learn from its predecessor – hopefully?

Councils told to open for business The Ombudsman has drawn a line under councils who do too much talking in secret. Mary Anne Gill looks at the ramification.

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report criticising councils for conducting business behind closed doors should result in an end to the secret exchanges which in some cases protect councillors from looking stupid. Workshops, briefings, forum, hui, wānanga – they’ve been given a myriad names - but too many have been away from the public glare, Chief Ombudsman Peter Boshier’s Open for Business report released last month concludes. And opening them up may make what are some of the biggest businesses in town a lot more relevant to their communities. District councils across the Waikato - Hamilton city councillors a notable exception with their robust debates - retreat to workshop style meetings, out of the public eye, to discuss key issues while voters’ interest in the triennial elections wane. Boshier’s hard hitting report tells councils to get back to their council chambers rooms and talk in public. Waikato Business News’ sister publications in Cambridge and Te Awamutu have been arguing the point with Waipā District Council

Peter Boshier

all year. The council’s workshops last four to five times longer than their actual council meetings and the “informal” workshops between councillors is a chance to compare diaries, catch up on issues around the district and discuss who is going to attend the various events on offer. No decisions are made, staff are not present but they come in afterwards where matters are discussed for “information only,” according to the council’s Governance manager. The News’ issue with Waipā is the regularity elected members cite information they received at workshops when making decisions at public meetings. Sometimes it makes it difficult to follow the debate

because councillors had information gleaned at the workshop which was not available to the public, or the media. Boshier investigated eight councils, none of them were in the Waikato with Rotorua Lakes Council the closest. He found no evidence that any of the councils were making decisions in the workshops. But the next day a new councillor at Rotorua – during a council meeting where its damning report was discussed as an “urgent item” - said he believed decisions were made in workshops. Boshier found some workshop practices were counter to the principles of openness and could contribute to a perception that workshops are not being used in the right way. “I also discovered that a range of council officials and elected members didn’t want to open workshops for a number of reasons including that asking questions could make them look stupid.” Protecting councillors was not a valid reason to close the workshop doors. “Elected members should be resilient enough to withstand reasonable public scrutiny. It is the job they are elected to do.”

Ingham to drive in Expect to see a spade in the ground before Christmas. That is the word from Ingham Motor Group principal dealer John Ingham about the former Bunnings site in Cambridge. And the man who started in Ōtorohanga in 1968 and then expanded into Te Awamutu and Hamilton as well as across the upper North Island has confirmed the development is a four-year project. Given the nature of the motor industry today, do not expect to see too much duplication in the Waikato market, he says. Ingham has eight brands - Hyundai, Isuzu, Kia, Suzuki, Mercedes-Benz, Renault, Honda and Mitsubishi – at 17 dealerships. “The motor industry is really changing

at the moment,” said Ingham, who would not confirm what three franchises would operate John Ingham in Cambridge. But one of them will not be Mercedes Benz, he said. Ingham Group’s resource consent application to demolish the Bunnings building and redevelop on the overall 6852 sq m site for a car dealership and associated vehicle servicing was granted in July. The development would be in two stages. Building consents are expected to be lodged with Waipā District Council next month and site works, starting with the demolition of the Bunnings building, soon afterwards.

Joe’s a bright spark

Pathways to New Zealand ™ Level 2 | 586 Victoria Street | Hamilton 3204 Level 3 | 50 Manners Street | Wellington 6011

07 834 9222

enquiries@pathwaysnz.com

pathwaysnz.com

Joe Wilson has received a Billie Award for Strengths-Based Research at the Te Auaha Pito Mata – New and Emerging Researcher Awards, hosted by Community Research New Zealand. The award recognises the work of the Lots of Little Fires initiative, a project under the Waikato Wellbeing Project, “We’re immensely proud of Joe Wilson and the Lots of Little Fires project,” Wellbeing Project executive director Harvey Brookes said. “Joe’s commitment to the transformative power of storytelling has not only enriched our communities but also embodies the core values of the Waikato Wellbeing Project.” He said his work was a reminder of the positive change that can happen “when we focus on the strengths and unique stories of individuals within our communities”.

Joe Wilson, pictured with Garth NowlandForeman (left). The Billie award is named after his mother.

Through the lens of cinematographer Muredach Daly, Lots of Little Fires celebrates the journeys, resilience, and unique contributions of everyday people.


NOVEMBER 2023

15

WAIKATO BUSINESS NEWS

TECH TALK

YOUR BUSINESS

Talking risk mitigation

Meet your new partner

By BRYAN MILES

By JOSH MOORE

Business analysis is all about identifying business needs and determining solutions to business problems. By taking the time to understand the business needs, the current state of the organisation, and the potential risks to a project, business analysts can help to ensure that the project is successful. One of the most important things that business analysts do is to help organisations to identify and understand the risks to their projects. This involves gathering information from stakeholders, analysing the data, and identifying the potential risks. Once the risks have been identified, business analysts can help to develop strategies to mitigate or avoid them. There are several different ways to mitigate risk. One common approach is to develop contingency plans. Contingency plans are plans that are put in place in case something goes wrong. For example, a contingency plan for a software development project might include a plan for dealing

with unexpected delays or budget overruns. Another way to mitigate risk is to use risk-based decision making. Riskbased decision making is the process of making decisions based on the potential risks and benefits of each option. For example, a business analyst might use risk-based decision making to help an organisation to decide whether to implement a new software system. By taking the time to understand and manage risk, business analysts can help to ensure that projects are successful and that organisations achieve their goals. One of the biggest risks in software development is building the wrong thing. This can happen for several reasons, such as not understanding the business needs, not having a clear vision for the project, or not getting feedback from stakeholders. There are several things that can be done to avoid building the wrong thing. One of the most important things is to have a clear

understanding of the business needs. This involves talking to stakeholders, understanding their goals, and identifying their pain points. Another important thing is to have a clear vision for the project. What are the project’s objectives? What is the scope of the project? What are the success criteria? By having a clear vision, the team can stay focused and avoid getting sidetracked. Finally, it is important to get feedback from stakeholders throughout the project. This will help to ensure that the team is building the right thing and that the stakeholders are happy with the progress. Business analysis is an essential part of any software development project. By taking the time to understand the business needs, identify and manage risks, and avoid building the wrong thing, business analysts can help to ensure that projects are successful. • Bryan Miles is a business analyst at Company-X.

THE JOB MARKET

What if I told you that the most popular business productivity tools—apps like Google Sheets, Google Docs, and Excel—could now harness the boundless power of ChatGPT? It’s like having an extraordinary mind at your side, ready to assist, suggest, and co-create within the very applications you rely on daily. This is not science fiction; it’s the current reality that businesses are taking advantage of, and those who aren’t are getting left behind. A joint study just released from Harvard, MIT, Warwick Business School and Boston Consulting Group tested over 700 consultants, requiring them to complete a series of tasks. Half were allowed to use AI. They completed tasks 25 per cent quicker and produced 40 per cent higher quality in their results. Welcome to a world where ChatGPT becomes your indispensable partner in achieving unparalleled excellence. You can now use GPT within Google Sheets or Microsoft Excel to write formulas. A small setup

process is required, but once connected, you can save time and effort. Let’s look at an overly simple example. Having entered sales data for last year, you can ask GPT in plain English, for the formula you need to calculate the totals. For example, “total all sales figures in cells c3 to f3.” GPT replies saying, “Assuming the sales figures are in cells C3, D3, E3, and F3, you can use the following formula: =SUM(C3:F3)” But where the power really kicks in is writing complex formulas for you that would normally take an Excel expert to write. With ChatGPT connected you can just describe in plain English what you want to happen, and it will create the formula for you. You can also use some specific GPT functions to extract information from within cells. This can be extremely useful for extracting names, emails, domains, or company names from a big list of data. The power comes in ChatGPT understanding what you want to extract. One of our team members

• Josh Moore is head of marketing at Duoplus

OUR ENVIRONMENT

Good news on the horizon?

Too big for our boots?

By SENGA ALLEN

By PHIL MACKAY

In the world of recruitment, it often feels like a rollercoaster ride, swinging between feast and famine. There are times when there are too many job openings and not enough qualified candidates, while at other times, there’s an oversupply of job seekers and too few opportunities. The disruptive impact of Covid-19 wreaked havoc on New Zealand’s job market. Lately, talk of a looming recession and an economic downturn has prompted businesses to scrutinise their staffing levels and financial stability. More talent is entering the job market, but are there sufficient job opportunities to match? Is there a glimmer of hope on the horizon? According to The Jobs Report (thejobsreport.co.nz), signs of change are beginning to emerge. This quarterly report analyses job demand and opportunities in Australia and New Zealand, providing a detailed breakdown by industry, occupation, and region. The September quarter has brought some stabilisation to the New Zealand employment market. The New Zealand Job Index surged by a promising 3.7 per cent in the quarter, marking a welcome return to positive growth after three consecutive quarters of contraction. However, the number of job postings remains 21.8 per cent lower than in September of the previous year and significantly down from the post-Covid peak observed in the last quarter of 2021. In the same period, the

spent three hours manually creating some very complex formulas to extract URLs from a long list of data. Another team member used a ChatGPT function to achieve the same result in less than four minutes. One of the things ChatGPT has become famous for is its ability to write very well-written content. We can tell GPT that we want it to, “create a brief thank you email to send to the people who attended our networking evening”. The results come back within seconds, and it’s very well written. We could tell GPT that we want it to, “write a LinkedIn post, welcoming our new sales manager, Tim Major, formerly Queensland Territory Manager for XYZ Widgets in Sydney”. While the results aren’t always perfect, the speed and productivity boost that comes from embracing AI is so impressive that every office-based company needs to be embracing AI to boost productivity and effectiveness.

Flexible Jobs Index dropped by 6.3 per cent, while the Permanent Jobs Index increased by 5.7 per cent. It’s evident that employers are keen to secure scarce talent. Certain industries have witnessed substantial growth, notably accommodation and food services, possibly influenced by the FIFA Women’s World Cup. The Public Sector remains relatively stable, with a modest decline of just 2.7 per cent. However, there’s cause for concern in the financial and insurance services sector, which has experienced a fourth consecutive quarterly contraction, totalling a 37 per cent annual decline. Interestingly, despite the overall “softness” in employment markets, the demand for executives and managers remains largely unscathed, surging by an impressive 20.3 per cent in the last quarter. Technology professionals have weathered a relatively minor 2.6 per cent decline in demand for their services, a significant improvement compared to the 28.5 per cent plunge in the preceding June quarter. Remuneration is also showing signs of returning to more “normal” market levels. A particularly heartening development is the 11.5 per cent rise in trade and technician roles, following a prolonged decline over the previous three quarters. Let’s keep our collective fingers crossed for a continuation of this positive trend for 2024. • Sengna Allen is Managing Director for Everest

Dad used to tell me that the powers that be had let Hamilton’s Central Business District get too big in the 1970s and ‘80s. I’m not sure I appreciated what he really meant during my teen years in ‘90s Hamilton, but it’s an idea I’ve reflected on often in the years since. How much more vibrant would the city centre be if it extended no further north than London Street, for example? If the businesses and workers in those blocks between London and Liverpool streets were accommodated in the CBD further south, how much busier might the retail shops and cafes be? What’s more, imagine how many people we might house in that same area, within walkable distance of the city centre, the river and sports stadiums. More recently, I’ve been asking the question of what to do about it now. How do we make a big CBD small again? It’s not as though we can just pick up those northern blocks and drop them in the downtown area. The last five to 10 years have seen significant re-invigoration and re-investment in the city centre – think Genesis Energy, Waikato Regional Council, and ACC, not to mention the regional theatre due for completion next year. But there are still empty shops on our main street, and the area north of London remains low-rise, low density, and underutilised. A number of people or organisations have approached our practice with their concerns

about the vibrancy of the downtown central city. To their credit, Hamilton City Council planners have grasped this challenge – or opportunity. The current district plan makes the distinction between the core CBD, the ‘Downtown’ precinct, and what is termed ‘City Living’ to the northern and western fringe, the objective being to encourage more residential and mixed use development around the fringes of the ‘Downtown’ area. However, in my view we could go a lot further. The central city zone features maximum height overlays that enable more building up rather than out, but why not have minimum height limits as well, or explore other mechanisms to encourage developers to build up? It seems crazy that we would allow single storey development to happen anywhere in our CBD. Likewise, if we view that it’s desirable to direct commercial activity to the core downtown area, we could limit commercial above ground level in the City Living precinct, to ensure that this area sees more of a residential focus. Those are only a couple of ideas for starters, but it’s important that our city planners and elected members - and those of us who vote for them – are both brave and creative in thinking about how we can shape a better, more vibrant central city for the future. • Phil Mackay is Business Development Manager for Paua Architects


16

NOVEMBER 2023

WAIKATO BUSINESS NEWS

A view from on high… Viv Posselt was present when sporting legend Rob Waddell shared his views on what leads to success

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ob Waddell says a strong work ethic, striving for excellence, teamwork and leadership are the core values that bring success. Top those off with joy in whatever activity you feel driven to follow, says the only Kiwi to win Olympic gold at the Sydney Olympics in 2000 and arguably a “living legend”. Waddell is one of New Zealand’s most respected sporting sons and attributes much of this country’s global sporting success to its ability to collaborate effectively. Kiwi sporting agencies and organisations work particularly well together, he told last month’s Cambridge U3A (University of the Third Age) meeting. “We’re big enough to have economies of scale but not so big that we are clumsy. Our ability to share information gives us a competitive advantage internationally.” He said New Zealand’s ranking just outside the top 10 listed Olympic nations rates the country just under some of the world’s far larger players, including the United States, Britain, China, Australia and France. Waddell’s multi-faceted involvement in New Zealand

sport has spanned decades and covers his roles as a high-achieving athlete to that of a successful sports administrator. The former brought the talented rower acclaim as a New Zealand Olympic gold medallist and double world champion single sculler before he segued into a different role as America’s Cup yachtsman. He was named New Zealand’s Supreme ‘Halberg Awards’ Sportsperson of the year winner three times and made a fine fist of his later role as Chef de Mission of the New Zealand Olympic team, leading them through the 2014 Commonwealth Games in Glasgow and the Summer Olympics in 2016 and 2022. His prowess at giving sports organisations a legup was shown through his involvement in helping secure $32 million in funding for the Cambridge velodrome, thereby providing a local base for New Zealand’s Home of Cycling, and through his extensive contribution to other organisations including the Halberg Disability Trust and Te Awa River Trust. He now runs a business

from Cambridge building partnerships across sport, business and philanthropy. The determination that led to his success was shown early. The Te Kuiti-born athlete arrived in this world at a whopping 4700g (10lb 6oz) and spent an idyllic childhood ranging the family farm in Piopio. Sporting success came early through Roller Mills rugby, the second oldest provincial rugby tournament in New Zealand after the Ranfurly Shield. It is for players aged 13 and under and weighing less than 55kg from Waikato, Thames Valley, King Country, Bay of Plenty, Auckland, CountiesManukau, North Harbour and Northland. “I remember the excitement of being presented with my King Country rugby jersey by Sir Colin Meads.” Despite finding it difficult to settle in to boarding life at Auckland’s King’s College, it was there he found his passion for doing well in life and where he found rowing as a way to focus it. “I was all arms, legs and large feet… but I was determined to do well from a young age because I didn’t

really have any natural ability. I worked really hard at it, but at each stage, I just wanted to make the next team above the one I was in.” From then on Waddell did life at a cracking pace, surging through his competitive years to move into governance with a view to aiding sports organisations with strategy management and funding.

Doing a U3A version of ‘Little and Large’, Cambridge U3A’s standard-sized Lyndall Hermitage squares up to 2m tall Rob Waddell before his talk.

ADVERTORIAL

Strategy keeps Waikato at the fore of business events

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new strategy aims to see the Waikato business events industry go from strength to strength. Launched this month, the 2023-2026 Waikato Business Events strategy was developed by Hamilton & Waikato Tourism in partnership with event industry leaders and other key stakeholders, such as Te Waka and industry bodies. It comes on the back of a solid performance in Q2 2023, with the latest figures from the Business Events Data Programme showing the region’s market share is third only to Auckland and Wellington. Hamilton & Waikato Tourism Events Manager, Aimee Tyson, says Waikato remains

New Zealand’s leading regional business events destination. “While the COVID-19 pandemic hit the business events sector particularly hard, our share of the market remained largely stable between Q3 2020 and Q2 2023. “We’ve also maintained our position during a period where other regional centres have increasingly prioritised the attraction and retention of business events. “That kind of performance really speaks to the strength of what we’ve got to offer here in the Waikato and to the professionalism of our local events people, delivering memorable delegate experiences resulting in businesses wanting to come back.”

The strategy considers how to build on the region’s strengths, including its prime location, awardwinning venues and thriving industry sectors such as agriculture, technology and high value manufacturing. It also considers how to address challenges like accommodation constraints, intensifying competition and workforce shortages, in order to remain competitive. “It’s a blueprint for the considered growth of business events in the Waikato over the next three years, as well as laying important groundwork for the future,” Tyson says. “We know a thriving business events sector supports a thriving region. We want to ensure the business events we bring

to the Waikato contribute positively across all four well-beings – cultural, societal and environmental, as well as economic – in line with the focus on regenerative tourism in both New Zealand’s Tourism Industry Transformation Plan and Waikato Destination Management Plan. “Regenerative tourism ensures tourism gives back more to people and places than it takes, contributing to a positive, enduring legacy for the region.” Business events contribute to the region in many ways, whether through local delegates spending money at local businesses, or through facilitation of knowledge creation and exchange, attracting trade, external investment and talent.

Meet in the Waikato!

The Waikato has award winning venues, unique attractions, and a group of friendly event professionals ready to help you deliver an exeptional event.

We’re here to assist with your event planning - meetwaikato.com

Event organisers play an important role in these outcomes and a growing number are supporting regional communities by prioritising local suppliers, sharing of local culture, or contributions – whether financial or through participation – to community groups or environmental causes. “There is a lot of value in what business events bring to the Waikato, over and above the economic benefits they provide. “As an industry, we’re very much looking forward to seeing where that might take us in the future.”


NOVEMBER 2023

17

WAIKATO BUSINESS NEWS

MORTGAGE ADVICE

TOURISM

The problem with all stick and no carrots

Tourism dollars are good for all

By CLAIRE WILLIAMSON

By NICOLA GREENWELL

In another life, I spend a lot of time in the bush, taking action to support nature and biodiversity to improve and grow, and restore native forests and ecosystems. A lot of nature is about symbiosis - our native trees and birds rely on each other for survival and longevity, and it’s magical how these two come together for food, seed dispersal and the longterm success of both species. This is how I’d like us to think about providing rental accommodation in New Zealand; property owners being trees that need to attract birds to spread their seeds. The birds are like tenants who come and go, but often birds return to areas where there has always been a good food source of food over time. Property has long been the choice for “mum and dad” to put their money. Bricks and mortar, whether residential or commercial, has been seen as a ‘safe’ investment that appreciates over time, and you can drive down the street and see with your own eyes. In recent years, the balance in property investment businesses has been affected by several factors, many of which have been legislated by central Government and are now starting to bite across the sector. This includes the extension of the Bright Line Test to 10 years for existing properties and five years for new builds. The loss of interest deductibility for rental property businesses, the Healthy Homes standards in 2019, the changes to the Residential Tenancies Act, and the Credit Contract and

Consumer Finance Act are some of the other changes we’ve seen hit investors. It looks as though National and Act policies will be front and centre as a result of the election. It will be important to address a problem we’ve been ignoring for too long - the demand for rental properties is starting to outstrip supply by a considerable amount, and this having a negative impact on tenants. The big issues we’re trying to tackle are for tenants to have the option of warm, dry, safe homes, ideally for a decent length of time, so they can put down roots as a family and have a level of certainty about their futures. Investors want good tenants to pay their rent, low maintenance homes, and a modest return on their investment, and largely the freedom to do what they want with their properties within reason. I believe we’re currently looking at it all wrong, and we’re all stick and no carrot. There’s not enough consideration to pull towards the positive - where do these two ‘needs’ intersect? Warm, dry homes (up to standard) - big tick for the Healthy Home rules here Certainty over time, both in rent and tenure of occupation. Why can’t we incentivise these outcomes? For investors, if they provide all these things (perhaps even guaranteed rent) for a period of three years, couldn’t they receive some form of small tax benefit? Would that stop the incidences of selling quickly, flipping properties, and

having to vacate properties to maintain them? For tenants, if they had certainty of tenure and rental payments and successfully completed their term, could they get some kind of universally accepted recommendation? I’m seeing so many landlords fed up with trying to meet a plethora of legislation requirements, unable to meet tax payments, and worrying about whether their tenants will look after their property or not. It’s not encouraging the supply of better quality, long-term accommodation, which New Zealand desperately needs. I’d love to see the new government do more to fix it than just oppose legislation that wasn’t fit for purpose. Incentivising positive behaviour, creating some real benefits to those who are putting their money into building up good quality rental stock with long-term outcomes in mind. And while I advocate daily for home ownership for more Kiwis, there are many who can’t afford to buy a property, or choose not to own their own property. They too deserve the right to put down roots in a community, live in good quality homes, and raise their families in an environment of certainty. And some of the great forests of Aotearoa prove what’s possible when symbiosis is at its best. Long living, quality ecosystems full of thriving trees, birds and people. • Claire Williamson is a mortgage advisor for My Mortgage

Tourism is back and so is its impact on business in the Waikato. With spring well and truly here in the Waikato as a tourism industry we now turn our attention to the coming Christmas and summer season, which is shaping up to be a busy one. With the growing air connectivity from of key international markets, we are hearing of predictions of an influx of international visitors to our shores, and if the long-range weather forecasts materialise, we’re in for an extended and scorching summer. A sunfilled summer not only means more international visitors but also more New Zealanders exploring our beautiful backyard. In terms of numbers some are predicting higher than 2019 visitor numbers and if our recent months statistics are anything to go by then this could be correct. In August, we welcomed an average of 51,000 visitors to the region each day. Of these, 88 per cent were domestic visitors and 12 per cent came from overseas. In dollar terms, the impact of those numbers is significant. In the 12 months to the end of July, domestic and international visitors spent $757 million and $106.4 million respectively in the Waikato, according to Tourism Electronic Card Transactions data. Both are an increase on 2019 pre-Covid visitor spend – domestic spend showing an increase of 18% and international is up 13 per cent. International visitor

spend was up across all product categories compared to the same time last year, with particularly impressive growth in ‘cultural, recreation and gambling services’, such as concerts, festivals and other events, and ‘other tourism products’, such as guided experiences. ‘Retail sales – other’, which includes things like clothing, home appliances, electronics and books, has the highest share of both domestic and international tourism spend in the Waikato, at 26 per cent and 23 per cent of total spend respectively. These figures demonstrate that the economic value tourism brings to our region stretches beyond those directly involved in tourism - accommodation providers, tourism operators and hospitality businesses. Tourism is generating growth and creating jobs for local businesses of all sizes such as mechanics, butchers, petrol stations, supermarkets and hairdressers. As the organisation charged with promoting the Waikato to the world and converting interest and inspiration into action, we’re incredibly proud of our collective industry’s work behind these figures. Alongside the region’s vibrant and talented communities, councils, tourism operators and other businesses, as well as national organisations like Tourism New Zealand, our team plays a key part in the success of tourism in the Waikato.

This year we’ve brought international travel media to the region to help showcase the Waikato on the world stage through hosting international broadcast media and influential travel sellers, and promoting the best the region has to offer to Kiwis through campaign activations. As well as launching a new Business Events Strategy and hosting leaders from New Zealand and Australia as part of the Ausae Linc Conference and offering educational opportunities for our tourism operators to upskill themselves in management and marketing practises. And it’s paying off. While there is no clear data set, if we conservatively equate our efforts to just one per cent of the $757 million domestic and $106.4 million international visitor spend in the 12 months to the end of July, that’s a total of $8.6 million extra we would have brought into the region and put in the pockets of local community businesses, as well as accommodation providers, tourism operators and hospitality businesses. But it doesn’t stop there. We recognise a thriving regional tourism industry is good for business and a thriving business community is good for tourism. Opportunities for tourism and business to continue to grow in the Waikato are abundant and I, for one, look forward to continuing to explore them. • Nicole Greenwell is the Chief Executive of Hamilton and Waikato Tourism

TALKING ECONOMICS

Time for another shake-up By PETER NICHOLL

The major state-sector reforms of the late 1980s gave the New Zealand public sector a huge shake-up. Its size was significantly reduced and its performance significantly improved. The impact of these reforms has gradually faded over the last 35 years to the point where it is hard to know what the systems of performance monitoring and accountability are in the New Zealand public sector today. There are many examples of poor delivery of outcomes by government agencies, but nobody seems to take responsibility, and nobody seems to be held accountable. What we do know is that the public service has got a lot bigger again. On June 30, 2017, the public

sector employed 348,000 people or 13.8 per cent of the work force. By the end of 2022, that number had risen to 448,000 or 18.7 per cent of the work force. On top of this, most Government Departments make significant use of outside consultants for many of their projects. The spending on consultants in 2022-23 was just over $1200 million. The muchvaunted ‘do-it-yourself’ mentality of New Zealanders seems to have disappeared from our public service. While the number of public servants has risen strongly, satisfaction with the delivery of outcomes from the public service has fallen. Last year, a survey on the “Mood of the Boardroom’ gave

the public service a score of only 1.63 out of 5 for the ‘execution and delivery of policies’. That’s an extremely low score. Examples of poor delivery from public sector agencies appear in our newspapers frequently. The latest one was the Electorate Commission failing to get easy-vote cards to almost a million voters before the recent election. Another survey done last year titled ‘Working in the Public Service’ also had some worrying conclusions. Many of the respondents said that most government agencies are riskaverse and tell ministers what they think they want to hear. That isn’t being an advisor. The ministers are the decision-makers, but their

advisors should give them a range of options on most issues and if the advisor thinks something being considered by a minister would not be a good policy, they should say so – and why. Also, public agencies are spending more and more on communication but most of what is being communicated is more accurately described as advertising than information or accountability. I have been told that the Reserve Bank of New Zealand now has 26 people in its Public Relations Department. When Don Brash was Governor and I was Deputy Governor, there were 3 public relations staff – and Don made a lot of speeches. The focus of much of the public

sector now seems to be on writing reports, media campaigns and advertising programmes rather than implementing policies. The new government will have to reform the public sector’s culture urgently so the emphasis goes back on implementation and accountability is based on outcomes and not on writing long reports or having fancy advertisements campaigns. If they don’t, they will have a hard job implementing their policies too. The public service, not the cabinet, is the delivery mechanism for a government’s policies. • Peter Nicholl is a former deputy governor of the Reserve Bank of New Zealand


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NOVEMBER 2023

WAIKATO BUSINESS NEWS

ADVERTORIAL

How is Artificial Intelligence impacting you?

A

rtificial Intelligence (AI) is emerging as the defining technology of our age, with many industries already utilising AI in some form whether you know it or not. Examples of AI include: • ‘Personal assistants’ such as Alexa and Siri and customer chatbots • Machine learning customer analytics to predict and recommend actions to prevent customer turnover • Retailers being able to predict customer orders in advance • Customised robo-advice for consumer investments • Intelligent process automation (robotic process automation combined with AI) • Optimising the scheduling and rescheduling of healthcare appointments, including prediction of non-attendance • Tesla Autopilot driver assistance system. The next big thing Almost every aspect of our daily lives has been digitised. Internet and mobile technologies have transformed the way that we live and work. A new wave of technology is now coming through, and it centres on data. 72% of US business leaders believe AI will be the business advantage of the future. AI will utilise data to assist us with the many tasks that we currently do ourselves today and will be able to do things that we’ve never even conceived of before. AI at work Commercially applied AI has expanded in recent years, driven by a combination of computing power, the availability of huge datasets and advances in machine learning techniques. AI enables machines to respond on their own to signals from the world at large, signals that programmers do not directly control and therefore can’t anticipate. The fastest growing category of AI is machine learning, the ability of software to improve its own activity, based on interaction with the world at large. The spectrum of AI can be divided into three areas: • Assisted Intelligence; widely available today, improves what people and businesses are already doing • Augmented Intelligence; emerging today, enables people to do things they couldn’t otherwise do • Autonomous Intelligence; being developed for the future, establishes machines that act on their own PwC’s Global Artificial Intelligence Study Highlights from our Global AI Study include: • AI has a potential contribution of $15.7 trillion to the global economy by 2030 Up to 10.4% boost in GDP for local developed Asia economies (including Australia and New Zealand) from AI by 2030 • Labour productivity improvements - driving initial GDP gains as firms seek to “augment” the productivity of their labour force with AI technologies and to automate some tasks and roles • 45% of total economic gains by 2030 will come from product enhancements. AI will drive greater product variety, with increased

personalisation, attractiveness and affordability over time. AI is set to be the key source jobs at potential risk of automation ofoftransformation, disruption and by early 2020s competitive advantage in today’s fast

3%

technology Investment in AI is expensive now, but it is anticipated that the of jobs at potential riskover of automation costs will decline the next ten by mid-2030s years as the software becomes

30%

Equip users for responsible use

44%

and oversight - teach employees

who use AI low the basics of how it of workers with education at risk of automation by mid-2030s works, when and how to use it, and

Strategy

Control ds

Responsible Practices

Core Practices

Data & AI Ethics

Governance

Consider the moral implications of uses of data and AI and codify them into your organization’s values.

Enable oversight of systems across the three lines of defense.

Interpretability & Explainability

Problem Formulation

Policy & Regulation Anticipate and understand key public policy and regulatory trends to align compliance processes.

Enable transparent model decision making.

Compliance

Sustainability

Comply with regulation, organizational policies, and industry standards.

Minimize negative environmental impact and empower people.

Risk Management

Robustness

Expand transitional risk detection and mitigation practices to address risks and harms unique to AI.

Enable high performing and reliable systems.

changing economy. Impact on jobs We analysed over 200,000 jobs in 29 countries to explore the economic benefits and potential challenges posed by automation. AI will both generate the demand for many jobs, but there are also concerns that it could displace many existing jobs. Job displacement will increase over time as AI technologies mature and are rolled out across the economy. Autonomous vehicles and other machines will replace many manual tasks and increased automation will impact those in clerical and other administrative jobs. While AI may displace certain jobs, it is forecast to create more jobs than it displaces. Some business sectors will be impacted more than others, with increases expected in health and social work, education and professional, scientific and technical services. AI will also increase productivity and make jobs more enjoyable by automating the more mundane tasks within a job role, enabling people to focus more on creative and teamwork aspects of their job. Four steps to making the most out of AI: 1. Work out what AI means for your business The starting point for strategic evaluation is a scan of the technological developments and competitive pressures within your sector, how quickly they will arrive and considering how you will respond. You can also identify operational pain points or opportunities that AI could address both with what is available now and more importantly, where the technology is heading in the future. 2. Prioritise your response In determining your strategic evaluation, consider these key questions: What is your appetite and readiness for change? Do you want to be an early adopter, fast follower or follower? Your answers will assist in determining how the different AI options can help you deliver your business goals. 3. Make sure you have the right talent and culture, as well as

Security

Validation

Develop systems that preserve data privacy.

Identify the concrete problem you are solving for and whether it warrants an AI/ML solution

Evaluate model performance and continue to iterate on design and development to improve metrics.

Safety

Standards

Monitoring

Follow industry standards and best practices.

Implement continuous monitoring to identify drifts and risks.

Enhance the cybersecurity of systems.

Privacy

Design and test systems to prevent physical harm.

Bias & Fairness Define and measure fairness and test systems against.

more commoditisied. While the enabling technology is likely to be increasingly commoditisied, the supply of data and how it’s used are set to become the primary assets. 4. Build in appropriate governance and control Trust and transparency are critical. For example, in relation to autonomous vehicles, AI requires people to trust their lives to a machine - a huge leap of faith for both passengers and public policymakers. Anything that goes wrong (malfunction or crash) is headline news. And this reputational risk applies to all forms of AI, not just autonomous vehicles. Customer engagement bots have been known to acquire biases through training or manipulation. Key AI risks • Biased, offensive or misleading content - AI is only as good as the data it was trained on. • Novel privacy breaches - AI’s ability to connect data from within the vast datasets could compromise your privacy controls. • Unsafe models built on theft - with so much data underlying some AI, you may not know its source or if you have permission to use it. • Inadvertently sharing your intellectual property - without care, you could find your proprietary data and insights from the information you enter into a generative AI model becoming part of the database and widely shared. • Hallucinations threaten performance - Generative AI is good at coming up with convincing answers, but sometimes its answers are flat-out wrong, yet presented authoritatively. • Cyber Threats - AI can assist malicious actors to impersonate someone’s writing style, manner of speech and facial expressions. This could then be used to spread misinformation or to attempt to convince you to share sensitive data or lead to financial loss. Responsible AI - some mitigations for the risks

when and how to verify or modify outputs •

Set risk based priorities - based upon your use of AI, assess the risks and give greatest attention to the greatest risks

Revamp cyber, data and privacy protections - update your policies and processes to help mitigate the risks from malicious actors

Watch the regulatory landscape policymakers around the world are issuing more and more guidance on AI development and usage

Monitor third parties - know which of your vendors provide content or services that use AI (including the software and applications you use e.g. Microsoft Copilot for Office)

Oversight - consider emerging software tools to identify AIgenerated content, verify its output, assess it for bias or privacy violations and add citations as needed

Right from the start It’s better to implement confidence by design and ethics by design from the start, rather than racing to close gaps after systems are up and running. PwC has a responsible AI framework that can help manage these risks and others too. It delivers confidence by design through the entire AI lifecycle, with frameworks, templates and code-based assets and it is relevant at all levels of your organisation. •

For more information visit www. pwc.co.nz/services/risk-services/ what-is-responsible-ai.html Local Contact: Aaron Steele, Director, Risk Assurance, PwC


NOVEMBER 2023

19

WAIKATO BUSINESS NEWS

Applauding future leaders Waikato’s best young talent was celebrated last month at the annual Young Enterprise Awards at Wintec. Photos: Deearn Strawbridge

Foster Construction’s Runner Up was Reusaballs from Sacred Heart Girls College. Pictured with Lee Patchett were, from left, Ashleigh Smith, Helen De Vries, Abigail Young, Mia Hartstone and Anna Miles.

The Waikato Business News’ Excellence in Promotion and Marketing Award went to Khushi Sehgal and Jason Cheng of Cheeky Chocolates at Fraser High School.

CAL Isuzu’s Excellence in Innovation Award went to Tyred Dogz from Hauraki Plains. Alex Boles was pictured with students, from left, Anna Hart, Sophie Pepper, Ryan Denize, and Julian Upfold

The Excellence in Sales Award was won by Waikato Diocesan School for Girl’s Bubble No Trouble - from left, Marina Lyu, Charlotte Bryant and Meg Crawford.

Waikato University’s Excellence in Leadership Award went to Anna Hart (Hauraki Plains College) and was presented by Paula Sutton

Waikato Chamber of Commerce’s Excellence in Financial Management Award went to UniquelyMe (Sacred Heart Girls College) from left, Ruby Hermann, Isabella Anstis, and Savanna Van Der Lee. They were pictured with Liam Rodden (left) and Danielle Quigg and Rob Finlayson.

The Excellence in Sustainability Award went to Sprowt (St Peters Cambridge), represented by Maia Williams, pictured with Smart Waikato’s Mary Jensen.

The Best Annual Review award went to Play Kāri (Waikato Diocesan School for Girls) and was presented by Maja Murray. The team comprised Anna Hansen and Emerson Wright.

The Waikato Pacific Business Network’s Pasifika Enterprise Award went to Doughnas (Sacred Heart Girls College) and was presented by Rachel Afeaki. The team included Ann Kaninteang, Francesca Tongol and Raukura Hodges-Macdonald

EMA’s Excellence in Production Award was awarded to Down to Earth, Hamilton Boys High School and presented by Kerri Gorrett


20

NOVEMBER 2023

WAIKATO BUSINESS NEWS

“Fosters are a superb team with an innate ability to manage stressful situations and deliver solutions...” John Daley, Mainstream

Mainstream’s new 2,400m2 transit freight facility was constructed in just 5 months, creating cost savings for the business, and enabling operations to be up and running 4 weeks ahead of schedule.

The construction agreement was signed in January 2023 and key materials procured by the end of March, which is when the construction team broke ground. By the end of August, John had the keys to the building.

Mainstream Property Manager John Daley says Fosters was considered for the job because they were part of the New Zealand Construction Alliance, with whom Mainstream had worked to build their Palmerston North depot.

“That turnaround is simply amazing” says John. “I talk to plenty of people about this job and delivery in five months is unheard of.

He adds that Fosters won the tender due to their collaborative approach from the outset. “Fosters were not the cheapest, nor the most expensive” says John. “We were simply impressed by how proactive they were in establishing a relationship and then working through the tender process. From the get-go, Fosters made it clear that they would give feedback on the design and areas of improvement. We welcomed that engagement.” Fosters knowledge of the area was another key strength, according to John. “Having an intimate understanding of their backyard - where and what they were building - they projected a sense of confidence all the way through.”

Got a build project in mind? Get in touch with Fosters today! FOSTERS.CO.NZ

07 849 3849

“Fosters are a superb team with an innate ability to manage stressful situations and deliver solutions, which we very much appreciated.” Specific features in the project included installation of pallet racking, 126 solar panels on the roof, high-end EV charging for standard and heavy-duty vehicles, rain water collection tanks for grey water use, and data cabling and security provisions. “Scheduling contractor work and connectivity added extra challenges alongside a demanding construction programme, but Fosters managed it all exceptionally well. “With their collaborative approach and operational efficiency, Fosters absolutely exceeded our expectations. We got a highquality build, delivered ahead of programme and on budget.”


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