Waikato Business News | July, 2024

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Teeing up the next link

This time last year the Southern Links project seemed another generation away - then National announced its roads of national significance. Senior writer Mary Anne Gill spoke to Finance Minister Nicola Willis about when construction might start.

When Nicola Willis delivered the latest update on Southern Links to a hungry for information group of business people at Tīeke Golf Estate last month, the irony of the location was not lost on her.

The internationally renowned 18-hole golf course - which borders Mystery Creek and the Waikato River - cost nearly $20 million to build with taxpayer funds.

Six years ago, New Zealand Transport Agency bought The Narrows - one of Riverside Golf Club’s two golf coursesfor Southern Links, and the club used the money to redevelop its Lochiel course, renaming it Tīeke.

Before National made Southern Links one of its roads of national significance, the project was decades away from starting even though NZTA had bought several hectares of land on its route.

“It’s a priority for us. It’s one of the projects of national significance that we want to see delivered,” Willis told The News.

“It’s a critical growth enabling project, that will allow for additional housing development, better freight delivery and enhance the productivity of this region and indeed the Waikato economy.”

So, instead of 20-30 years away, design should start this Parliamentary term and construction be underway in four years.

Willis told the Waikato Chamber of Commerce Budget breakfast – held at Tīeke on day two of Fieldays – better times were ahead.

“You (Waikato) are a poster child for what can happen to productive and economic growth when people get a decent road. And here’s to the Waikato Expressway,” she said.

“When I look at Hamilton, I think we have a region that represents what is possible for

our country because you have a primary production base, that has then evolved to have innovation, manufacturing and service industries. But what you also have got is entrepreneurial people.”

Southern Links joins Waikato Expressway’s Cambridge to Piarere on the roads of national significance.

The $100 million project will link SH1 from Kahikatea Drive in Hamilton to Tamahere, SH3 from Hamilton Airport to central and east Hamilton and establish a key transport in the city council’s Peacocke housing development.

One of the two new bridges associated with it, in Hamilton East, is due to open later this year.

Taupō MP Louise Upston whose electorate would benefit from Southern Links – as it would from the Waikato Expressway extension to Piarere – said unlocking housing growth, reducing congestion and improving safety were critical drivers.

“Hamilton Southern Links will open up opportunities for districts in the Waikato to connect. It will allow people to get where they need to go, quickly and safely, and boost productivity and economic growth in our region,” she said.

Waikato Regional Airport chief executive Mark Morgan said the ratepayer-owned company had been advocating for the project both locally and nationally for years.

The development of its Northern Precinct industrial park north of the airport and Titanium Park would benefit from greater transport links, he told The News.

“Southern Links is pivotal. There’s land bigger than Ruakura available for industrial. This is what Southern Links will unlock,

the

Nicola Willis stands in front of the Tīeke golf course’s 18th green with Mystery Creek and Fieldays in
background.
Photo: Mary Anne Gill.

CONTACTS

Editor Roy Pilott editor@goodlocal.nz

027 450 0115

News

Mary Anne Gill maryanne@goodlocal.nz

021 705 213 Viv Posselt viv@goodlocal.nz 027 233 7686

Chris Gardner chris@goodlocal.nz

027 231 7007

Advertising Director Janine Davy janine@goodlocal.nz 027 287 0005

Owner David Mackenzie david@goodlocal.nz

Office 07 827 0005 admin@goodlocal.nz

Website waikatobusinessnews.nz

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Celebrating two decades

The generosity of Waikato’s business community is being credited with bringing a unique Hamiltonbased family support organisation to its 20th anniversary.

True Colours Children’s Health Trust is a community-funded organisation that offers continuing care to children with a serious health condition, and their families, through counselling, nursing and education. It also cares for families who have received a poor pre-natal medical diagnosis for their baby and provides support to families who have lost a child to a serious medical condition.

Its support is centred around Dr Mason Durie’s Te whare tapa whā model, which recognises the physical, emotional, social and spiritual contexts of health and wellbeing.

The organisation was started in 2004 by nurse specialist Cynthia Ward, who received a QSM in 2018 for services to nursing and children’s health.

The operational model she founded won a Westpac Waikato Business Award in 2019.

With no government funding, the organisation is financed entirely through business sponsorship, grant applications and donations. The Hamilton house that is its base was gifted to the organisation by Annah Stretton in 2005, and the vehicles they use – primarily to access families in rural areas across the wider Waikato region – are supplied and maintained by Inghams Motors. Cleland Hancox and Harkness Henry provide their services free of charge.

“The support we have had from the Waikato business community, particularly from Hamilton, has been incredible. It has enabled us to continue and to grow to meet increasing need,” said True Colours operations manager Heidi Gleeson.

Since its inception, over 3200 families across Waikato have used the free service. That number grows each year, as does the number of re-referrals,

Teeing

which are families who may not need support for a time, but who return when their circumstances change.

Led Clinic headed by a clinical nurse specialist and aimed at strengthening the nursing arm of the operation.

Trust’s ability to continue delivering for Waikato families was its own fundraising activity. From 2006, the organisation has held the Kerr & Ladbrook True Colours Long Lunch, an event held each year on Melbourne Cup Day.

for us. We want to be seen to be raising money for ourselves as well, and not solely relying on the kindness of the business community,” she said. “Tables for the Long Lunch are already taken for this year, and there is a waiting list, but there is still an option for people to offer their support by donating items we can auction at the event.”

is on November 5.

up the next link

otherwise development will ultimately be constrained.”

The general view is that Stage One would start in the south at Airport Road – the 6.7km long State Highway 21 - which has an average daily traffic count of 9430 at the Tamahere end and 6471 at the SH3 end.

“Traffic volumes have just gone through the roof, so there needs to be a solution. The Crown – Waka Kotahi – sees it and we see it,” said Morgan.

Part of the work would involve replacing the 83-year-old Narrows Bridge –– an open spandrel deck bridge with a span of 31m and length of 34m – which an inspection in March concluded had a remaining lifespan of 30 years.

It was strengthened from further bank erosion in 2010 when a 52m long bailey bridge was built in four weeks alongside it.

Transport minister Simeon Brown said late last month all roads of national significance would be four-laned while the government would support use of alternative revenue, funding and delivery models. That could include Public Private Partnerships and tolling.

van de Molen, Parliament Buildings, Wellington.
Heidi Gleeson, operations manager at True Colours, is grateful to Waikato businesses for their two decades of support.
Photo: Viv Posselt.
Traffic counts at The Narrows Bridge over the Waikato River on SH21 Airport Road are increasing.
Photo: Mary Anne Gill.

Briefs…

Business networking

Economist Blair Keenan will set the scene for Raahui Pookeka/Huntly businesses at a free workforce development opportunity function at the Huntly Power Station on July 18. The event will involve service providers who are connected to the community who will discuss what is and is not working in local workforce development. Waikato District Council is taking registrations for the event.

Debt to income

The Reserve Bank’s new debt-to-income (DTI) ratios which came in this month capped borrowing at six times household income (for owner occupiers) to curb excessive debt and enhance financial stability. For property investors, borrowing is capped at seven times their income.

Rayner moves

Former Fosters Group chief executive Richard Rayner has moved from Company X in Hamilton to become the new chief of Christchurchbased fleet safety provider Fleetcoach.

Ellison on board

Waipā Networks has announced the appointment of Shane Ellison (Ngāi Tahu, Te Atiawa, Ngāti Mutunga, and Ngāti Ruanui) as its new board director.

Hotel work

Major hotel work has been announced for the Hamilton central business district including a $120 million development by the Templeton Group on the river side of Victoria St south to add a 4.5 star hotel, while work nearby across the road at Centreplace and the central city’s tallest building will add a 191 room hotel there to open in 2026. Work is also continuing on a new boutique hotel in central Cambridge to open later this year.

Garden date

Hamilton Gardens’ visitor centre is on target for a September opening, when paid entry to the 18 enclosed gardens will be introduced.

In the comfort zone

Paul Charman checks out a business pedalling a mix of comfort and rugged scenery.

Over 50s who prefer E-bikes are the backbone of a business providing accommodation to those wishing to ride through the rugged King Country back blocks.

Sitting near the centre point of an 85km trail through the ancient Pureora Forest, the Timber Trail Lodge operates year-round.

The concept revolves around an older comfortloving demographic who enjoy sipping wine and nibbling pizza, while their electric cycles are charged for the next day’s ride.

Part owner Guy Whitaker said the 40-bed lodge owed its existence to the Government’s push in 2009 to create Nga Haerenga (New Zealand Cycle Trails).

By 2012 DOC was running presentations to explain the opportunities which would flow from incorporating Pureora in the national trail.

The pitch was that with giant native totara, rimu, matai, miro and kahikatea trees, plus native birdlife, the 78,000ha forest park had everything weekend cycle adventurers could want.

“From that initial meeting I pretty much decided that the need for accommodation was a no-brainer,” said Whitaker - a former deputy mayor of Te Kūiti

The electronics retailer and his wife Nicky got involved with several other shareholders. including Bruce Maunsell and Wellington investors, Dave Bamford and Jeremy Ward. They received some North King Country Development funding for a business plan and began applying for consents.

This turned out to be a lengthy process, not finalised until 2014/2015. Along the way the company received a $1.2 million dollar grant from what turned out to be the last round of the Tourism Growth Partnership Fund.

The design needed to accommodate the realities of such an isolated spot.

The lodge was to be entirely off-grid, being powered by solar panels and backup generators. It also needed to be self-sufficient in its water reticulation and sewerage treatment. An intense waste management regime remains.

Building of the facility began in 2016 and the shared ablution wing and main hub were completed in April of the following year. The second wing, comprising staff accommodation and ensuite rooms was completed in late 2017.

Whitaker says it took three years to become profitable, then Covid hit. “We were thinking this is an absolute disaster, but what actually happened in the end was that Covid was actually good for business because everyone couldn’t travel overseas so they looked locally for holidays and leisure activities.

“Within the business, around 90 per cent is drawn from domestic tourists rather than international, and this only helped us. We certainly hope eventually to build up the international side, but that’s still a challenge for the future.

In an effort to boost winter sales the lodge has added a meeting room and begun advertising for corporate retreats.

The operation has its own fleet of vehicles which serve as a shuttle service, fetching

and carrying cyclists and their luggage at certain points to maximise the down-hillrun between Pureora village in the north and Ongarue in the south.

A large portion of the clientele is late, middle-aged with disposable income, and the lodge concentrates on pampering them. The core clientele are also big fans of the electric bikes. “Initially only 10 to 20 per cent of the bikes were hired out were E-bikes, now it’s more than 50 per cent.”

Whitaker is certain the lodge has played its part in fulfilling the government’s original vision of creating a cycle trail which helped to boost regional development.

“The majority of staff we employ are local, our maintenance is done by local trades, our food purchased from local providers. When you visit Te Kūiti in summer you see cars with bike racks on the back lined up, as they stop to eat in local restaurants.”

An economic impact report from last year said Timber

Trail users exceeded 22,000 a year. On average these people had an average stay of 4-5 nights in the Waitomo District and 3-4 nights in the Ruapehu District. It was estimated in 2023 that the Timber Trail had generated

$12-15 million a year.

“Nicky and I have not had a return on our investment yet but is looking positive in the near future. But this project benefits the district as well as the shareholders,” Whitaker said.

SMEs train for growth

More than a quarter of New Zealand small and mediumsized enterprises (SMEs) are aiming for growth this year and many prioritise training and upskilling.

An MYOB survey of more than 500 SME owners and decision-makers has revealed that business leaders believe the skills or knowledge that will be most important over the next five years are customer service, sales and marketing, and business development.

MYOB general manager Emma Fawcett said Waikato businesses had seen the value and opportunities that can come from ongoing investment in training.

Confinement Escape Rooms’ Business Development and Events Manager, Deb Bunyard, said as a small business, it often came down to price-driven decisions and compliance requirements.

“We have a liquor license now, so we have put considerable time, funds and effort into gaining duty management qualifications. But we also look at opportunities from the Waikato Chamber of Commerce and our accountancy firm, which offers courses on managing cashflow and improving profitability.”

For commercial real estate business NAI Harcourts, those in the team that hold a real estate license are required to do 20 hours of training a year.

Managing director Mike Neale, believes it’s important to have strong presenters sharing relevant content for these sessions.

Hamilton-based Precious Metals Group offers both ready-to-wear and customdesigned jewellery and creative director Alicia Platje routinely attends

trade fairs and conferences, and attends webinars and online training courses.

“On top of other digital tools like social media, AI is now a big consideration for us; finding out how we can use it to free up time and complete menial tasks so we can focus on the bigger picture is really important,” she said.

Emma Fawcett
Part owner Guy Whitaker.
The Timber Lodge concept revolves around a comfort-loving demographic who enjoy sipping wine and nibbling pizza while their electric cycles are charged for the next day’s ride.

A self-funded sanctuary?

Good Local Media exclusively revealed last month that Sanctuary Mountain Maungatautari’s funds would not get it beyond August. Chris Gardner looks at one of the solutions.

Sanctuary Mountain Maungatautari general manager

Helen Hughes is tackling the operation’s cash crisis head on with a five-year plan to make the world’s largest predator-proof fence self-funded.

Last month Hughes revealed the $5000 a day 3363ha operation was at risk of closure by the end of next month because it had been “going backwards in terms of revenue for a long time”. The project is funded by grants and ticket sales. Closure would see habitat disappear for kākāpō, takahē and kiwi - and the loss of 18 full time positions.

Hughes took Waikato Business News on a short tour of the maunga where, against the backdrop of native bird call, she shared how she had been working 80-hour weeks to develop a plan to make Maungatautari internationally recognised and nationally cherished.

“That means self-funding,” said. “Not where we are at the moment. That requires the whole organisation to have a bit of a shift in terms of how we approach our work programmes, what we do, how we stick to our budgets.”

Hughes is hoping to realise $1.5 million a year by selling 3363 conservation management hectares at $450 a hectare through Ekos’ market-based conservation financing mechanism.

“If the cost of running the organisation last year, excluding tourism, was $1.5 million then dropping $1.5 million into this business today would be groundbreaking.”

Hughes is hoping to go live with a conservation management registry in the next month.

“Why? Because it comes down to the ESG (environment, social, governance) space for organisations globally that are looking to emphasise the work that they do in the environment,” she said.

“It’s no longer just acceptable to be able to make profit, you need to talk about how you’re improving social outcomes, environmental outcomes and how your governance structures work, and I think we can tag to all of that. It’s how do we become market ready and tradeable, and that’s the question we’re in at the moment.

“If we deliver on this the opportunity for every other community-led conservation project in New Zealand to come into that market space and be tradeable would change the whole way that Government need to fund things and it would be groundbreaking.”

“Everybody knows us as a conservation project. What a lot of people don’t get, and what we need to be better at telling, is we are

hugely social outcomes focused,” Hughes said.

The trust runs conservation and education programmes and employs mana whenua.

“We’ve just started to connect to areas of the community that need healing, that need an opportunity to be able to come out to the maunga and heal.”

The trust partnered with Ko Wai Au Trust in Te Awamutu, whose mission is to ensure all whanau have the skills to thrive independent and maintain violence free environments, to run a 10-week programme.

“They came out with a group of teenagers to be at the maunga and to heal.”

The trust is also discussing with the Department of Corrections how to work with people on probation.

“Māori talk about this being a transaction. So, we protect, and the maunga give us back.”

“This truly is a partnership. We’ve got iwi, we’ve got landowners, and we’ve got community.”

Hughes is also looking to attract more of the hundreds of thousands of tourists who visit Hobbiton Movie Set Tours and Waitomo Caves to Maungatautari by scheduling bespoke half-hour tours that suit visitors to the other attractions.

Sanctuary Mountain is discussing partnering with both

organisations to draw on decades of institutional knowledge of the tourism sector.

“It’s under a teach us to fish mindset, to help us work out what we can do,” Hughes said.

Hughes’ plan includes “investing in our visitor experience, refreshing the guiding programme, improving the visitor centre, getting an onsite café, and looking at what we can do in education.

“We’re looking for grant funding to allow us to run a north-south

shuttle so that people can go over the mountain and be conveyed back.”

An air bed and breakfast has been set up next to the visitor centre to accommodate anyone who wishes to stay overnight.

“We’ve got three bookings so far, one in July and two in December,” Hughes said.

“One of our guides has offered to put an outdoor kitchen in our education centre, so that opens us up to scouts and guides.”

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Helen Hughes plans to make Sanctuary Mountain Maungatautari self-funding.

Emma’s shock cancer diagnosis

In December last year, Emma Kettlewell was diagnosed with stage 3 cervical cancer.

“I had a horrendous Christmas and New Years. I’ve never struggled with my mental health ever, and those were the darkest six weeks of my entire life. It was awful.

“I have a long history of abnormal smears so I’d decided to have a hysterectomy. They found cervical cancer that had already spread into my pelvis so that started my journey with oncology.”

Emma, who is also a mum and a nurse, says she felt hopeful when she was given a treatment plan but it was an added worry knowing she needed to find a base in Hamilton five nights a week.

“I haven’t been at work since November last year so finances are already really tight. We’ve got a young family, a mortgage - how are we going to afford this? To find out I could stay at the Cancer Society’s Lions Lodge was a huge relief.”

The alternative would have been driving back and forth from Taupō each day which Emma says would have been impossible with the effects of chemotherapy.

Arriving at the Lodge for the first time, Emma says she had no idea what to expect.

“I was really scared. I was expecting everyone to be older than me, expecting to see sick people everywhere and to be confined to my room. But it wasn’t like that at all.

“Every single person has been

invigorating and full of life. It’s like a home away from home.”

As Emma nears the end of her treatment, she is positive about the future.

“It’s definitely not a walk in the park but you know there’s an end coming so you can take that.”

Emma’s stay at the Cancer Society’s Lions Lodge was made possible thanks to the ongoing contribution of the community. Please fundraise this Daffodil Day; find out how at daffodilday.org.nz

Rugby, Rotary and education

Rotary is one of the largest service organisations in the world and has been going in New Zealand for more than a century, so it seems odd the international president had never visited, until now. Senior writer Mary Anne Gill meets Gordon McInally.

It was an eight-yearold girl in an Indian school sponsored by Rotary International that was the highlight of Gordon McInally’s year as international president.

The Scot was part way through visiting New Zealand, the 63rd country he and wife Heather had been to during his term which ended last month.

The News asked him what had stood out. He had only been home for nine days and five of those were around Christmas.

His three days in the Waikato were a whirlwind which took in Matamata, Hamilton Airport, Lake Rotopiko Wetlands project near Te Awamutu, Urban Miners in Cambridge and a Rotary function in Hamilton.

“I’m humbled by it all,” McInally says of what he has seen around the world from Rotary’s four million members in the fields of health, education and the environment.

“It affirms what everybody does. I may be the president, but the work is done by them. If you took all that away, there would be a huge void.

“(But) what has really struck home with me is what we’re doing in the education field. If young people are given an education…”

He catches his breath

with some emotion and then shares the story of the eight year old girl who came up to him to thank Rotary for what the club did for her.

“She said to me ‘education is the key to the golden door of a more hopeful future’. That was a profound statement and to hear that from the lips of an eightyear-old. I will take that to my grave,” he said.

McInally, 67, joined Rotary in 1984 when he was a dentist in Edinburgh and newly-married.

Two of the things he retained, after he sold his dental practice in 2016 –and retired to the Scottish Borders - were his car park and seats at Murrayfield, home to his beloved Scotland rugby team.

He has seen the All Blacks play Scotland several times and never win. “One of these days,” he says wistfully.

Another thing he wants to see achieved in his lifetime is the eradication of polio.

Following anti vaccination campaigns the infectious disease has “bubbled up” again, something which clearly irks him given Rotary was a founding partner of the Global Polio Eradication Initiative in 1979.

The six recent cases have been on the AfghanPakistan border.

“We’ll do it, we’ll beat it. We’re certain of that and our partner World Health

Organization and the Gates Foundation are with us.”

McInally was astonished to find he had been the first international president to visit New Zealand with the exception of Aucklander Bill Boyd who served during the 2006-2007 term.

Along with the gifts he and Heather are taking back to their Scottish Borders home – where they will reunite with daughters Rebecca and Sarah and granddaughters Ivy and Florence – are projects for their Rotary club.

McInally was intrigued with what he saw in Cambridge where the Rotary’s Urban Miners project is collecting e-waste and diverting it from landfills.

There is an area in his local rubbish dump where televisions, microwaves and other electric appliances are separated but he concedes to not knowing what happens after that.

“I’m very impressed with what Urban Miners are doing. We only have one planet and unless we take proper care of that planet, then we’ve got a problem.”

And with that, McInally was off making the most of his final days on the road as international president and with the promise of taking in a match at Auckland’s Eden Park, happy to be in the land of rugby.

Emma Kettlewell
Rotary International president Gordon McInally speaks at the Lake Rotopiko Wetlands Project supported by Te Awamutu Rotary Club.
Photo: Mary Anne Gill.

Signals look good for 2025

If Kiwibank economist Mary Jo Vergara knows her stuff, interest rates will fall later this year. Senior writer Mary Anne Gill listened in on her predictions.

Business and consumer confidence might be weak and the economy in slow down, but it is all part of a plan, says Kiwibank senior economist Mary Jo Vergara.

“It is all by Reserve Bank design and it’s intended to get inflation back under control,” she told Waikato Chamber of Commerce’s After Four function in Kiwibank’s Hamilton headquarters in Union Square last month.

“It’s all about inflation at the end of the day.”

Vergara was guest speaker and told a packed audience, 2024 was a year of slow growth but an improvement on 2023.

“2025 will be better.”

By November, she and Kiwibank’s economists expect the Reserve Bank to make a crucial call and finally cut the official cash rate from 5.5 to 3 and not by increments of .25 or even .5 basis points.

“When they decide to go, it will be to three per cent,” she said.

In her explanation as to why, Vergara said Purchasing Managers’ Index indicators – the prevailing direction of economic trends in the manufacturing and service sectors – were starting to move into positive territory in countries like China and the United States.

Watching the United States

economy evolve had been

“incredibly fascinating,” she said.

“They’ve had just as much inflation as us, maybe a little bit more, they’ve been able to get it down north of nine per cent, where it is now at three per cent, without having a recession and without a deterioration in their labour market.

“This is a signal for 2025 – it should be better (here).

“As these expectations start to turn, we should see the market pick up again.”

But she warned there were tailwinds to watch out for such as migration and regulatory changes.

Others were council rate rises, increased insurance costs and unemployment, particularly in places like Wellington where there are public service layoffs.

Regulatory changes include the Bright Line property rule – a way to tax financial gains people make when they buy and sell a house for income – have reduced from 10 years to two years from July 1.

Interest deductibility will be fully restored by this time next year and the loan-to-value ratio restrictions eased.

That should see investors come back into the property market and they were expected to test the

waters a bit more come spring, said Vergara.

New Zealand’s inflation had gone from 7.3 to 4 per cent easily but getting that down to 2 per cent, was going to be tougher.

Hence the Reserve Bank was unlikely to change the official cash rate until November, or even February.

The bank had little influence over soaring local government rate rises and insurance increases.

“We still see it (the OCR) going below 3 per cent this year. We do think we will get back to that 2 per cent target; we see inflation back below 3 per cent by the end of this

year and that should really open up the Reserve Bank to rate cuts.”

They would come a year earlier than Kiwibank economists had earlier predicted.

Public service layoffs would have an impact on the unemployment rate – expected to level out at five per cent nationally but even higher in Wellington where businesses are already closing.

“If you walk in Wellington now, you can feel that anxiety in the air,” said Vergara.

But given all that, 2025 is expected to see an improvement in the economy and a boost for the flagging property marked.

Vergara joined the Kiwibank economics team in 2019 and has a keen interest in how the Kiwi economy fits within the global landscape.

Her research ranges from macroeconomics to environmental economics to New Zealand’s economic history. She is skilled in quantitative analysis including statistical and econometric modelling.

Prior to joining Kiwibank, she worked in economic consulting as a research analyst following five years of university study where she obtained a master’s in economics at Auckland University.

We

Justine
Kiwibank senior economist Mary Jo Vergara during her presentation to Waikato Chamber of Commerce.
Photo: Mary Anne Gill.

The visa conundrum of working remotely in

New

Zealand

Remote working became the norm during Covid, and not just from home, but also from different countries and now, globally, some 35% of organisations allow their workers to work remotely from other countries – including Pathways.

Advancements in technology have made remote work increasingly normal and feasible across international borders but people considering this option need to be mindful of the potential challenges arising from time differences, tax consequences, living conditions and costs, and, most importantly, visa requirements.

New Zealand immigration policy has largely been silent on any visa holders’ ability to work remotely for an overseas employer while in New Zealand. Current policy defines “work” as any activity undertaken in New Zealand for gain or reward and is irrespective of whether such work is for a New Zealand or overseas entity, and in order to undertake any work an overseas person must hold a visa allowing such work. Recently, Immigration NZ issued guidance that a person holding a partner work visa, only allowing work for any NZ accredited employer, would be in breach of their visa conditions if they worked remotely for an overseas employer.

Given the current definition of “work” it appears that some work visas which allow work for any employer in any role and location can facilitate remote work for an overseas entity – and this would include all working holiday visa holders. However, the crunch issue is in regard to visitors in New Zealand. While on holiday we all check our emails and try and keep on top of our work, so how much of this “remote working” is allowed for visitors to our shores? We can all imagine the impact on our tourism industry if visitors were deemed to be in

breach of their visitor visas simply by checking their emails! Of course, this is nonsensical, but is the reality given the current immigration definition of “work”, and while there are no clear “remote working” policy parameters. The simplest solution is to change the work definition so that the visa status of genuine visitors is not compromised.

In its’ pre-election immigration manifesto the National Party committed to the introduction of a Digital Nomad Visa – limited to 250 visas in the first year. The DNV does not address the above issues but does cater for a growing cohort of people who want the benefits and experience of living in another country, while continuing to work for their overseas employer. There are now around 60 countries throughout the world who have a digital nomad-type visa. Italy is the latest country to join this list while a number of countries, including New Zealand, are also now looking to introduce such visas.

Digital Nomad Visas are generally issued for 12 month periods and may be able to be extended for one or more years depending on the country. Most DNVs have minimum income and private health insurance requirements, and the main areas of difference are in the nature of the work allowed, and in the tax treatment of the income earned while working in the country. It is this tax treatment, as well as New Zealand’s high cost of living, which are likely to prove the deciding factors in the take-up of the New Zealand DNV if, and when, this is introduced.

The issue of being able to work remotely, and to what extent, in New Zealand has long been a grey policy area that the Government has purposefully shied away from addressing. However, the nature of work and how it is undertaken in the modern world have now overtaken New Zealand’s policy settings - and it is time to catch up!

Getting the big (Mac) picture

Visitors to Fieldays ask why multinational food giant McDonald’s is there giving away free soft serve ice cream and apple pies. Senior writer Mary Anne Gill talked to the company after a sustainable beef roundtable discussion and finds out why.

Beetroot takes about four months to mature.

When you are growing thousands of tonnes for an iconic hamburger brand, you need plenty of advance warning.

That’s why McDonald’s tell beetroot growers a year in advance when they plan to sell Kiwi Burgers, the company’s Impact and Communications head Simon Kenny reveals.

“Our impact on the supply chain on the scale we operate is interesting,” he says in a laid back way which belies the impact McDonald’s has on New Zealand’s primary industries.

Kenny had just been part of a panel discussion at Fieldays by the New Zealand Roundtable for Sustainable Beef members.

McDonald’s - an inaugural member of the panel – sources about 10 per cent of the beef produced in this country.

The company bought 6601 tonnes of beef and 589 tonnes of Angus beef for its burgers here and 37,000 tonnes of beef was exported to other McDonald’s markets.

“So, while we’re a minnow in the McDonald’s world in terms of restaurants, we’re a strategically important country in a supply chain that feeds around 70 million people around the world each day.”

Getting the country’s beef farmers, producers and industry experts talking to each other was therefore

critical, says Kenny.

Because beef farming is the single biggest contributor to McDonald’s greenhouse gas emissions, it explained why the restauranteur works with the beef sector to look at ways to further reduce methane emissions.

But it is not just beef for the patties that McDonald’s sources locally. There are potatoes, tomatoes, lettuce, chickens, milk, cheese, eggs, buns and beetroot for the Kiwiburger. The burgerwhich was initially trialled and proven a success in five Hamilton restaurants in the early 1970s – only returns as a limited-time item.

Consumers often think it is in response to competitors’ actions but Kenny quickly disavows that notion by saying the company needs to tell growers months in advance so they can grow thousands of extra tonnes of beetroot.

“There’s the number of extra (free range) eggs as well. You can’t just whip up a million extra eggs,” he says.

Many beef farmers do not know what happens to their product when it leaves the farm gate and the stand gave the company the opportunity to tell that story.

The panel discussion included roundtable chair Richard Scholefield, a beef farmer, Rabobank sustainable business development head Blake Holgate, AgResearch scientist Grant Rennie, Beef and Lamb NZ chief executive

Sam McIvor and SPCA chief scientific officer Arnja Dale. They discussed the future productivity, profitability and resilience of the beef sector and how working together contributes to improvement across the industry.

Kenny also revealed he overheard one farmer saying when he spotted the McDonald’s stand: “That that American beef.”

“I wanted to tap him on the shoulder and say no,” he told the panel.

Dale says New Zealand’s beef production is world leading in its care of animals.

“There are things we could do better – shade and shelter for our animals for example,” she says.

Scholefield managed Whangara Farms - 8500ha on the North Island’s East Coast with 7500 head of cattle and 60,000 sheep – and became chair of the roundtable when it was established in 2019. He is also a Beef and Lamb farmer councillor.

The roundtable supports the continuous improvement of beef and celebrates the work done by the beef industry value chain.

“We don’t tell our stories well enough,” he says.

Simon Kenny
Where McDonald’s sources its food in New Zealand.

Back on a roll

Forgotten Highway Adventures is getting back in track after a challenging 2023 season.

Paul Charman catches up with the new conductor.

Before buying his King Country tourism business Grant Ross played professional rugby in France, then a TV executive there.

Today the Cambridge man heads up Forgotten Highway Adventures, running golf carts over the defunct rail track between Taumarunui and Stratford.

Travelling at up to 22 kph, these machines trundle past working hill country farms, native forest and pine plantations.

There are 24 tunnels (three more than 1 km long), 90 bridges, viaducts and steep saddles along the 142 km route.

“But the main appeal is history rather than scenery,” Ross says. “Judging by the comments on Trip Adviser our customers go in expecting to be wowed by the scenery, and they see plenty, but they leave with the history.

The view stokes the imagination regarding derelict farmhouses and schools, plus old decaying shops, homesteads and shearing sheds.

The line was built in the pick and shovel days between 1901 to 1933, sustaining numerous tiny rural communities when New Zealand made its living off the sheep’s back.

Villages and settlements flourished along the track and the Forgotten Highway (SH43), which runs parallel for some of the way. They were even serviced by a railcar, which ran daily between New Plymouth and Taumarunui.

But with wool’s decline the villages and settlements

began disappearing and are now mostly a memory. The track was mothballed in 2009.

Waikato farmer and keen outdoorsman Ian Balme saw the potential for railcarts and launched the business 2012. The gamble soon paid off. The business grew to 9000 visitors a year and employed 40 staff in peak season. But after 10 years Balm was looking to sell and along came Ross.

The former professional rugby player had received a one-way ticket to South Africa for his 21st birthday, played rugby there for two years and then moved to south-western France to play for Mont-de-Marsan and later Brive Clubs. Brive were European champions at the time.

Ross moved one last time, finishing his rugby career with Stade Français, in Paris, where he was French champion.

“When I played there the owner, Patrick Sébastien, was probably the biggest television star in France, with a show then watched by 13 million people.”

Ross recalls Sébastien gave him a job on his show

Owning Commercial Fit-Outs – Who Bene ts and Who Should Own em?

e visa conundrum of working remotely in New Zealand

Commercial fit-outs are expensive, they depreciate over time and may or may not be of any value to a future Tenant. Landlords often prefer not to own them, as they are frequently Tenant specific, although this can vary between retail, office and industrial premises. What to consider as a Landlord, before entering into ownership of fitout items:

1. Customization and Specificity: Fit-outs are often highly customized to the specific needs of the Tenant, such as layout, decor, and even specialized equipment. These customizations might not be desirable or even useful to a future Tenant. This is particularly so for retail tenancies.

talking entertainment. “I was the dumb guy with the foreign accent; I didn’t mind the ribbing and being the butt of all the jokes, but I hated the limelight. So, when they offered me an alternative off-camera, selling television shows abroad I jumped at it.”

Initially this involved taking in-house shows and selling them into other countries. Later he got a job acquiring and adapting television programmes for the biggest production company in the world, Endemol France. And eventually Ross set up his own production company, buying the likes of Survivor and Wheel of Fortune, before adapting them for use in other countries.

Then, when he and his English wife Laura decided to move to New Zealand he began surfing the internet to look for a Kiwi business to buy.

“I was advised not to touch anything to do with tourism or hospitality, but once I’d read about Forgotten World that was it.”

Ross has no regrets but acknowledges the last season was a shocker.

“It was tough due to the economy and the election. Okay, obviously not for everybody, Queenstown had an incredible season thanks to their nine flights-a-day from Australia.”

During June, July and August/ September Forgotten World’s railcarts stay in their tunnel, while the company concentrates on taking bookings for the forthcoming season.

“Last year we started operations in October behind 8 Ball and just stayed that way.

“But already its looking better for next year. Sales were really good in May and June. So hopefully we’ll go from what was a bad season to a fairly good one. Roll on 2025.”

2. Cost and Depreciation: Fit-outs can be expensive to install and may not significantly increase the property’s value or future desirability. There can be some tax benefits for Landlords in owning and depreciating items of fit-out. However for Tenants, the tax treatment of fit-outs might be more advantageous.

3. Maintenance and Responsibility: Owning the fit-outs would usually mean the Landlord is responsible for maintaining, repairing, and replacing these items. This responsibility can potentially be burdensome and costly.

4. Tenant Turnover: When Tenants leave, they often remove their fit-outs, which depending on the lease reinstatement provisions, can involve additional costs and effort for the Landlord to restore the space to a leasable condition.

5. Higher Rent Premiums: Landlords can often charge higher rents for spaces that come with modern, well-designed versatile fit-outs, as Tenants might be willing to pay a premium for the convenience and cost savings of not having to invest in their own fit-outs. This particularly applies to office.

6. Flexibility for Tenants: Tenants often prefer to handle their own fit-outs to ensure the space meets their specific operational needs, but may request an incentive from the Landlord.

We are seeing incoming and potential Tenants with requests to upgrade.

Below are some regular items, that may be of benefit to the Landlord and future Tenants. These would be worth consideration, either all or in part: Industrial

• motorised roller doors

• LED lighting

• Heat pump(s) in the office area

Office

Fixed floor coverings

LED lighting and

ceilings / ceiling treatments

• Air conditioning / heat pumps

• Kitchen and toilet facilities Retail

• Possibly heat pump(s) to the main retail area

• Small kitchenette and toilet facilities

• Very little else, as many items are unlikely to be of direct value to future Tenants

Once it has been agreed as to what items are the Landlords, having an itemised list of “Landlord’s Fixtures and Fittings” included in the lease should be a mandatory requirement – a photographic catalogue at the commencement of the Lease will not only identify the items, but also provide an indication for both Landlords and Tenants of their current condition. Having a robust ‘make-good’ clause in your lease is important for when the lease ends and before a new Tenant is sourced. Ensure you get professional legal and accounting advice before agreeing to contribute to fit-outs, as there are longer term implications for these decisions. Several recent cases where reinstatement was required:

• One Landlord agreed to the scope of works provided by the Tenant, but requested the Tenant undertake the works to their satisfaction, which was duly completed.

Another Landlord agreed the scope of works and the Tenant’s quote for those works, but agreed instead to a lump sum payment (slightly discounted), in lieu of the works being completed. As there were existing fit-out elements that may benefit an incoming Tenant, this allowed the Landlord discretion to use the lump sum as a fit-out incentive for an incoming Tenant. Overall, avoiding extensive ownership of Tenant fit-outs allows Landlords to reduce financial risk, simplify property management, and maintains the flexibility and appeal of their properties. While there are benefits to owning fitouts, it’s important for Landlords to carefully assess the specific needs of their market, the types of Tenants they aim to attract, and the overall return on investment before deciding to invest in fit-outs.

Grant Ross, right, two years ago after ankle replacement surgery, with wife Laura and family.
Photo: Supplied.
Views on line – Forgotten World Adventures takes customers from Taumarunui to Stratford.

Helping hand at play

Whatawhata School children are enjoying a $90,000 playground funded by a Hamilton business.

The facility was funded by Mitre 10 Mega Hamilton as part of ‘Project Playground’, a nationwide company Helping Hands initiative aimed at establishing play spaces and encouraging physical activity and creative play.

Four of the more than 20 Waikato schools that vied to receive a new playground went through to a public voting round.

Judges from Mitre 10 and its partner Playground People then visited each of those four schools, and based on a set of criteria that included the condition and number of existing playgrounds, roll size and the difficulty of self-funding based on local demographics, Whatawhata School was voted the winner.

Principal Rob Gunn described the opening

of the new playground as a milestone achievement for the kura and community.

He said the school’s PTA had worked tirelessly for some time to fundraise for a new playground. They entered the national Project Playground competition in 2021 but missed out on that occasion, so gave it another shot.

“We are very thankful that Mitre 10 Mega Hamilton had a big enough heart to give back, and we are so thankful to those who supported us to make this happen, especially our school PTA,” said Gunn.

Hayden Camp, owner of Mitre 10 Mega Hamilton stores described the project as a great example of a business helping a community.

Corban Fray, marketing co-ordinator for Mitre 10 MEGA Hamilton stores managed the campaign.

“Seeing the incredible impact of opening this new playground for Whatawhata School, I am really proud of what we have achieved.”

Using story telling

Telling the world how wonderful our region is has to be one of my favourite parts of working for Hamilton and Waikato Tourism.

So, I am really proud of our recent partnership with Hamilton City Council to showcase the Tiaki Promise through a series of videos and articles about organisations making standout contributions to the environment, community and cultural storytelling; as well as creating resources to inspire others to embrace the promise.

Launched in late June, Tiaki in Kirikiriroa is an initiative highlighting examples of tiaki (caring for people, place and culture). It includes interviews with individuals from businesses across the visitor sector.

This nitiative follows in the footsteps of our earlier Tiaki in Waitomo series, created last year to share the work done by tourism operators in and around Waitomo to embody and encourage tiaki in the area. In both cases, the aim is to instil pride in the work many businesses are doing to give back to the people, land and communities around them, as well as to share the innovative approaches being taken so other businesses can learn from them.

Some of the initiatives highlighted by Tiaki in Kirikiriroa really are leading the way, from the 5000-square-metre solar farm powering the terminal at Hamilton Airport to the truckloads of produce from Hamilton Gardens feeding some of the city’s most vulnerable.

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That’s not to mention the e-bikes used by zookeepers and groundskeepers at Hamilton Zoo, the staff wellness initiatives and gully restoration undertaken by the teams at Novotel and Ibis Tainui, the plastic-saving jar library at Bare Refill, or the efforts to minimise food waste and buy locally championed by Hayes Common and Weave Eatery.

These are all real examples of tiaki in action. They demonstrate that no matter the size of your business or organisation, there are opportunities to make a meaningful difference.

I know there are many tourism operators, venues, hospitality businesses and retailers across the city setting out each day to do their part by making changes to the way they do things.

Our Tiaki in Kirikiriroa and Waitomo initiatives have been created as part of the regenerative tourism kaupapa of our Waikato Destination Management Plan; a guiding document articulating our strategy for ensuring the visitor economy positively contributes to Waikato communities. It’s an honour for us to share the stories showcasing the passion for doing things better and we hope the videos, guides and articles help to inspire this same commitment to people, culture and the environment in fellow Hamilton businesses.

• Nicola Greenwell is Chief Executive, Hamilton and Waikato Tourism

The problem with all

While New Zealanders for a long time have enjoyed a love-affair with property investment, the shifting regulatory environment from government and the Reserve Bank has confused a lot of wouldbe investors keen to have an impact on the shortage of rentals.

Recent adjustments in debt-to-income ratios (DTIs), interest deductibility, the Bright Line Test, and loan-to-value ratios (LVRs) have opened up the attractiveness of investment property and had an impact on what might be your next move.

Another key tax change is the Bright Line Test, which assesses the need to pay tax on the profit after the sale of a property. Following July 1, this time period will reduce, meaning investors will not be required to pay income tax on the profit (or loss) from selling a rental property if they’ve owned it for two years or more.

Debt-to-income ratios (DTIs) have unofficially been in place for a while with most banks, but until now the practical applications have been vague. With most bank servicing calculations still restricted by stress-testing interest rates, it will be some time before the DTIs actually have any impact. Rates will need to drop considerably to affect capacity of borrowers, so this will be one to watch in the coming years.

Interest deductibility has been the most confusing of all tax policy in the last few years, where the ability to deduct mortgage interest from rental incomes was reduced incrementally in October 2021 by the thenLabour led Government. For each financial year a different percentage of all interest costs could be claimed, but earlier this year, things were simplified.

Loan-to-value ratios (LVRs) are the way the Reserve Bank regulates how much lending can be put in place for different property types, on July 1 this year, this requirement for investment properties will increase to 70 per cent , meaning a lower deposit (or less equity) is required for the purchase of a rental property.

So what does all this mean for investors?

In a nutshell, the changing regulations have an interesting effect on the average property investor. Their equity (or deposit) will go a bit further than it did for the past few years, their income position will be relatively unchanged, and their cashflow with interest deductibility will improve, particularly come tax-time.

As we move forward, investors should treat these changes as a new set of rules in the property investment playbook. Those who do not adapt will get left behind and there will be plenty of investors who have decided it’s easier to sell up and invest in less regulated assets.

From April this year you can claim 80 per cent of the interest incurred for funds borrowed for residential property. This is regardless of when the property was acquired or when the loan was drawn down. From April next year interest deductibility will be fully restored, and you will be able to claim 100 per cent of the interest incurred.

Now is a key time to get the right advisers on your team. Opportunities are endless in a slightly slower property market, but getting advice from a tax specialist, lawyer and mortgage adviser will ensure you’ve got all the tools and are set up to succeed.

• Claire Williamson is a mortgage advisor for My Mortgage.

Whatawhata School pupils enjoying their new playground courtesy of a Hamilton company ‘Helping Hands’ initiative.

Rodney Stirling

Rodney Stirling

Rodney Stirling

Rodney Stirling

EXPERT CONCRETE GRINDING,

Rodney Stirling

Hope for granny flats and tiny homes

The rule changes around the 60sqm buildings that NZFirst and the coalition government announced earlier this month are currently undergoing submissions as to how the legislation could or should look. It’s been touted as affordable answer for families who are spending more than 40% of their incoming on putting a roof over their heads according to Deputy Prime Minister Winston Peters and RMA Reform Minister Chris Bishop.

“High housing costs have a greater impact on Māori, Pasifika, and people with disabilities, as well as seniors – so unlocking the space in the backyards of family members opens the door to new ways of living,” Winston Peters said.

“Over a quarter of households that do not own their home spend more than 40 per cent of their income on housing.

“High housing costs have a greater impact on Māori, Pasifika, and people with disabilities, as well as seniors – so unlocking the space in the backyards of family members opens the door to new ways of living,”

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Doing so will remove the requirement for building consents other than an expected engineers report.

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He said that while granny flats were a great option for seniors, they’ve also become increasingly popular with other families such as those who want homes where their university-age children can live at home but maintain some privacy and independence, or families who want to provide extra support to a loved one. It does however, mean amendments of both the Building Act and the Resource Management Act.

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Our

“Many district plans already allow granny flats without resource consent, but there’s a lack of consistency and different standards across the country. We’re proposing a National Environmental Standard (NES) to require all councils to permit a granny flat on sites in rural and residential zones without resource consent. An NES means changes can come into force quickly,” Chris Bishop said.

The Government released a discussion document with proposed changes to the Building Act and the resource management system which included changes across both systems.

How it may work is that a new schedule would be added to the Building Act 2004 to provide for simple standalone houses up to 60 sqm in size. The building system proposals include:

• the conditions and criteria for these homes to be exempt from a building consent;

• assessment of the associated short and long-term benefits, costs and risks;

• sufficiency of occupational licensing requirements to ensure all building work will meet the building code;

proposed exemption;

• time and money savings compared to the status quo;

• additional or alternative ideas to the proposed options.

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• potential barriers to the uptake of the

“Removing the regulatory red tape will not only speed up the build process, it is also estimated to save up to $6,500 just in the standard building and resource consenting fees per build, not to mention all the savings in time and resource,” Chris Bishop said. Final policy decisions will be made later this year, with the legislative changes expected to be in place from mid-2025. The consultation opened on June 17 and submissions can be received until 5pm Monday August 12. The public can provide feedback online or by emailing grannyflats@mbie.govt.nz

Rodney Stirling

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WE ARE THE BEST EXCELLENCE

Out and about…

CLOCKWISE FROM TOP LEFT:Terry Pidduck, founder of Cambridge Travel Lines and who now lives in Ruakura was manning the Waikato Veteran & Vintage Car Club’s spare parts department during the annual double 50 classic car rally. Photo: Mary Anne Gill.

Bernice Mene was a regular visitor to Mystery Creek as a Silver Fern and Southern Sting netballer earlier this century – this year she was an ambassador for National Fieldays Society sponsor Hyundai and came suitably decked out in her Red Bands. Photo: Mary Anne Gill.

Hamilton Operatic Society’s production of The Hunchback of Notre Dame opens at the Clarence Street Theatre in Hamilton this month and members of the cast have been hard at work learning the music. The musical is directed by David Sidwell and is based on the Victor Hugo Novel with songs from the Disney film. Photo: Sarah Hughes.

Volunteers at the ready inside the main gates at Fieldays just before the Southern Hemisphere’s largest agricultural expo gets underway on day one last month. From left, Duncan Johnstone, Michelle and Alexandra Perry. Photo: Mary Anne Gill.

Waikato Chamber of Commerce’s Business After 4 function last month was hosted by Kiwibank. Economist Mary Jo Vergara was on hand to give attendees the low down on the state of the economy. From left: Danielle Quigg, Heather Connolly, Don Good, Jenny MacGregor, Rohit Sharma, Mary Jo Vergara, Bridget Smith, Grant Kyd, Rakesh Kumar, Eddie Stocks. Photo: Mary Anne Gill.

Hamilton Bunnings’ team in Melville ran a sausage sizzle to help raise funds to fight Motor Neurone Disease – and across the country staff raised $33.500. Pictured from left were Daniel Siciliano, Jacob Perrin, William Pokaina, Linda Scott, Helen Palmer, Pieta Mace and Deidre McRobie.

Photo: Mary Anne Gill.

Prime Minister Christopher Luxon was a popular visitor among Fieldays patrons last month at Mystery Creek in the Waipā district. Here he is pictured with a group from the Philippines and Malaysia.
Photo: Mary Anne Gill.
Colin and Donna Storey of Hamilton with their 1938 green MG SA catch up with Tracey Winterbottom of Auckland before the start of the Waikato Veteran and Vintage Car Club’s annual double 50 classic car rally last month. Photo: Mary Anne Gill.
Heather McInally’s version of Amazing Grace on the native timber guitar hand made for Rangitunoa Black (Ngāi Tūhoe and Ngāti Apakura) was a highlight of her visit to Rotopiko Reserve near Ōhaupō last month. The classically trained former professional opera singer and music teacher is the wife of Gordon McInally, Rotary International’s world president. Photo: Mary Anne Gill.
Platform 1’s Tom and Heather Rodden of Te Awamutu won one of the lucky prize draws at Waikato Chamber of Commerce’s Business After 4 event last month. Photo: Mary Anne Gill.
Hamilton’s Murray Davies, 74, works on wetlands’ maintenance for Waipā District Council and has a lifetime experience in the bush. He is pictured during the International Rotary president’s visit to Rotopiko Reserve north of Te Awamutu.
Photo: Mary Anne Gill.
Waikato Pacific Business Network had a table at the Waikato Chamber of Commerce Budget breakfast with Nicola Willis at Tīeke Golf Estate during Fieldays. From left: Joe Fuavao, for Australian Trade and Investment Commission Senior Business development manager, Tony Begbie, business broker at ABC Business Sales Limited, Rachel Afeaki, network chairperson, Suria O’Brien, network Business Development and Marketing navigator, Tonga Robertson, NEST Interiors and Design owner, John Wilkinson, ASB Bank senior commercial manager.
Photo: Mary Anne Gill.

Blending modern aesthetics with the comforting ambience of a traditional pub, Fergus Bar and Kitchen has been loved by locals since it opened in Rototuna on Valentine’s Day 2024.

Located on the corner of Fergy Place and Turakina Rise, it’s an inviting space where friends, families and neighbours can pop in for a morning coffee, enjoy a laid-back lunch or relax with a pint over a delicious evening meal.

“We always had high expectations for a quality finish, and we’ve been very happy with the outcome,” said Veros Development Manager Aaron Fergusson, who oversaw the facility’s construction process.

“It’s an awesome space. It’s exactly as we envisaged, and it ties in with the architecture of the surrounding development, so it looks fantastic.”

The project was launched in a time of “high construction cost volatility”, Aaron said, and Fosters won the tender after backing themselves to offer a lump sum design and build contract.

“It was clear they understood exactly what our clients wanted to achieve, so we had complete confidence they would provide both a high-quality build for our tenants, and cost clarity prior to committing funds,” he said.

There were multiple challenges for the Fosters construction team, including difficult ground conditions and wet weather.

Fosters’ ability to manage resources to deliver this project on time and on budget despite the challenges... was outstanding. They are a trustworthy and capable construction partner who impressed us from the word go.

A raft slab designed to span low-strength soils worked brilliantly to minimise excavation work, Aaron said.

“Fosters demonstrated their experience by questioning some original geotechnical advice, seeking a second opinion and coming up with a better solution under programme pressure.

“They were really good – really collaborative in terms of pushing for a better result.”

Also impressive was Fosters’ willingness to integrate a tenant fitout into the original base build programme.

“It would have been easier for them to run separately, but they took on the challenge to achieve a better outcome.”

Late changes to the kitchen layout were not a problem either, as Fosters collaborated with the tenant, consultants and kitchen designers to satisfy Hamilton City Council consent requirements.

“Fosters’ ability to manage resources to deliver this project on time and on budget despite the challenges that arose during construction was outstanding,” Aaron said.

“They are a trustworthy and capable construction partner who impressed us from the word go.”

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