Business Plus Aug 2015 by EMA

Issue 128 – August 2015

News and commentary for EMA members

Just popped up: the rapid success of NZ Kettle Korn - p 26

• That ‘recession’ word – p7 • Trends in sustainable practice – p10 • Drug testing: employer wins dispute – p21 • Chinese business in NZ thriving – p 24 and 28 …and much more!

On the cover...

is published by :

The Employers and Manufacturers Association (Northern) Inc 159 Khyber Pass Rd, Grafton, Auckland Private Bag 92066, Victoria Street West, Auckland 1142 Ph: 09 367 0909 or 0800 800 362 Email: ema@ema.co.nz Website: www.ema.co.nz

Chief Executive: Kim Campbell Manager of Advocacy and Industry Relations: Mark Champion

NZ Kettle Korn CEO and co-owner, Trent Brock, is pretty stoked about the company’s manufacturing success. Export growth is a focus this year. Full story, p26.

CONTENTS COMMENTARY

Manager EMA Learning: David Foley

EMA policy update

Manager of Enterprises and Strategy: Mauro Barsi

Transport progress (or not)

Waikato

EMA’s CEO Kim Campbell on ‘recession’

BusinessNZ CEO Phil O’Reilly on OH&S

Sustainability actions show benefits

Reader survey, plus book reviews

Progress on tendering for Govt contracts

Provisional tax: the no-win situation

Denis Quigan 07 823 9311 Russell Drake 07 838 0018

mob 027 203 0694 mob 021 686 621

Bay of Plenty Terry Arnold 07 575 8401

mob 021 662 656

Rotorua / Taupo / South Waikato / Whakatane Clive Thomson 07 348 0334

mob 0274 372 808

EMPLOYMENT Editor Mary MacKinven 021 636 089 mary.mackinven@ema.co.nz

Contributor Gilbert Peterson

Designer Ripeka Mikaere

Advertising Sales Colin Gestro 027 256 8014 colin@affinityads.com

ISSN No. 1176-4953

Recruitment: align branding first

Employment Chat – Q and A

Post-employment prep: housing and lifestyle

Literacy training case study

AdviceLine at work for you

Case law: drug testing

international trade

Tiger easier to tame than dragon

TPP deal: opening NZ market access

China investment in NZ

TPP deal: promised value for NZ

member profile

NZ Kettle Korn is popping

Solo Wings loves a challenge

Hale Manufacturing expands again

Glacier Investments clothing co: Chinese roots

TRAINING

A sample of upcoming courses run by EMA Learning BusinessPlus August 2015

We believe when business is strong, so are the families and communities connected to it. Here are eight reasons our members stay with us, and just a part of our commitment to you:

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Policy COMMENTARY

It’s all about the growth be at least three years of planning and consultation before a sod is turned and another four years for construction. That seems a ridiculous amount of time.”

The growth theme continued to dominate advocacy and policy discussions at the EMA over the past month, as the ongoing battle over possible port expansion entered its next phase and Auckland International Airport also continued with its planned expansion.

In our feedback on the latest proposal we are broadly supportive of the new design but critical of the lengthy delays in planning and construction. We also have issues with the proposed lack of links to and from the north at SH1 around the EastWest Corridor, and the proposed design of intersections in and around Onehunga (see more detail and graphic page 6).

The EMA was one of approximately100 stakeholders invited to a forum to identify issues around the Ports of Auckland expansion and to decide on the Consensus Working Group (CWG) that will drive the Port Future Study. The Future Study is an Auckland Council initiative that will deliver a future plan for the port in about a year’s time.

Campaigning for reform EMA continues to monitor progress of the reform of occupational health and safety law, with the revised legislation yet to come back from the select committee.

While selection for the CWG has yet to be completed and formally announced, the EMA does have a place on the Group, along with Ports of Auckland. Dr Rick Boven, a former head of the New Zealand Institute, is the independent chair of the CWG. Auckland Airport chief executive, Adrian Littlewood, also has a very positive story to tell around growth: the ongoing influx of tourists and the planned expansion to cope with that growth at the airport (see page 6). When he spoke at EMA’s Policy Forum last month he outlined some of the issues that the airport faces in moving that influx of tourists around Auckland and into the regions. During his post-Budget speech to EMA members, Finance Minister Bill English also talked about the changing face of tourism in New Zealand, saying the 300,000 Chinese visitors a year now spend more here than the 1.5 million visitors from Australia.

Transport blocks Through its participation in the Auckland Business Forum, the EMA is also continuing to push for a more integrated strategic plan for Auckland’s transport projects and priorities for funding. The Forum is very concerned at the ongoing tit-for-tat spats between Central Government and Auckland Council over

We’re also monitoring the detail in the Government’s latest proposals around casual employment contracts (aka Zero Hour contracts). Casual contracts do suit a small proportion of the workforce and can be a valuable stepping stone into fulltime employment. But they also don’t suit workers with fulltime obligations around family and mortgages. plans to get the city moving and reduce congestion. The Forum is seeking an urgent meeting with Transport Minister Simon Bridges to get an agreed strategy that is internationally peer-reviewed, with agreed funding priorities in place to support that strategy. EMA is also separately continuing to push for this result but we have real concerns that it will be at least another year, if Council and Government finally agree a joint approach, for this strategy to emerge.

It looks as if Government is continuing to recognize the value of casual contracts to both employers and employees who want flexibility, while tightening up legislation to ensure those working on a causal basis have more security and transparency around planning their work availability and income. While the vast majority of employers are very good, there are still some legitimate concerns around how more vulnerable workers might be expected to negotiate shifts or retainers.

Auckland can’t afford the delays. Delays were also among our concerns in feedback on the latest proposal for the East/West Corridor. As EMA’s CEO Kim Campbell says: “We’ve already agreed this project is a priority and should go ahead. We seem to have been talking about this for at least the past three years. Now we’re told it will

The EMA policy team has also entered the next phase of planning for a joint reform of the Resource Management Act (RMA)/Local Government Act (LGA)/Land Transport Management Act (LTMA). Our campaign is with the New Zealand Council for Infrastructure Development and the Property Council NZ. That phase includes the development of a communications strategy to create more support for reform. BusinessPlus August 2015

COMMENTARY

CITY CENTRE & WHANGAREI

A – PENROSE ONEHUNGA – PENROSE ONS CONNECTIONS

Preferred approach

CITY CENTRE & WHANGAREI

Existing PreferredWaikaraka approach Cycleway Existing Waikaraka Cycleway Extension of Extension of Cycleway Waikaraka Waikaraka Cycleway

State Highway (existing) State Highway (existing)

Existing roads Existing roads Railline line Rail

Potential intersection Potential intersection

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MutukaroaHamlins Hill Regional Park

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Mt Wellington

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PANA

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MIAMI PARADE Māngere Inlet

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AIRPORT & MANUKAU

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PANA

GTON ELLIN MT W WAY HIGH

GREAT

ROAD SOUTH

Waikaraka Cemetery AIRPORT & MANUKAU Gloucester Park

Waikaraka Park

Southdown

Sylvia Park

MutukaroaHamlins Hill Regional Park

Gloucester Park

RIV

STREET NEILSON

Waikaraka Park Waikaraka Cemetery

SO UT H

Sylvia Park

IV DR

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STREET NEILSON

Onehunga

ET TRE ANGL E S

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CAPTAIN AD RO SPRINGS

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Onehunga

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Māngere Inlet

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MANUKAU & HAMILTON

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PRINC To SH1 To Mt Wellington Highway

From SH1 From Mt Wellington Highway

To SH1 To Mt Wellington Highway

Onehunga-Penrose connections in Auckland..

From SH1 From Mt Wellington Highway

East-West Corridor proposal faulty The graphic above shows the latest plan of the NZ Transport Agency and Auckland Transport for Auckland’s East/ West Corridor road link to the Southern Motorway (SH1) from the industrial areas of Onehunga/Penrose suburbs. While EMA is largely supportive of the current plan, we have several concerns around the proposed design, especially at the environmentally significant Gloucester Park interchange: this is where the very tight loops in the road may not suit the large, 25 metre freight vehicles expected to be frequent users of the interchange and East-West link.

BusinessPlus August 2015

We have significant concerns with the light-controlled intersections at Captain Springs Rd and Miami Parade where we feel slip lanes or roundabouts may have a better outcome for large vehicles.

North-South access inadequate However, our main concern is the lack of direct access to the new expressway from and to the north. One of the desired outcomes of the new expressway is to ease access to SH1 for freight traffic and it seems counterintuitive to continue to force that freight traffic to use the already heavily-congested Mt Wellington interchange, especially with increasing

residential developments in the Mt Wellington area. The new corridor proposal also does nothing to address access from the suburbs to the east of SH1 and the East Tamaki industrial precinct, and fails to address the Mt Wellington overbridge two-lane choke point. We also believe there should be much greater urgency in the planning and consultation process and in the subsequent construction phase. The EMA wanted this project completed by 2021 but current timeframes delay that completion until 2022 or 2023 at the earliest.

MANUKAU & HAMILTON

CEO COMMENTARY By Kim Campbell

New Zealand’s economic fundamentals remain strong Despite the current uncertain global economic environment, we need to remind ourselves that New Zealand is well placed fiscally to weather the downturn. Indicators suggest that growth may be slower than what was predicted a year ago, but let’s not talk ourselves into a recession. Instead, let’s remind ourselves what’s in place. We predicted a growth rate of 3.5 per cent, which now may be closer to 2.5, but the fundamentals are strong and still better than our trading partners’. We have predicted there would be movement in some key indicators, in particular that inflation would be 1 per cent instead of 2 per cent, and interest rates should fall to their current level. The structural reforms are in place to deal with economic turbulence. Unfortunately for Western Europe their pain is yet to come. We have a convertible currency. We have an open economy which supports our export and import industries. We also have a relatively open market. We have an educated, motivated and engaged workforce.

“…but let’s not talk ourselves into a recession. Instead, let’s remind ourselves what’s in place.” Our currency appears to be inextricably linked to the price of dairy, but actually our agriculture economy has other strong sectors such as red meat, horticulture and wine. All of which are doing well. In addition, service industries such as tourism and education are at record levels and seem to perform well wherever the currency cross-rate sits. Tourism numbers have grown by 7 per cent

“There is considerable latent potential in our economy, which can only be unlocked by structural reforms in the regulations which affect our planning systems” for the year ending May 2015. By 2030 it is estimated that two thirds of the world’s middle class population will only be one flight away from New Zealand.

Growth in trade is essential for an open economy such as ours and we can now be more optimistic that a Trans Pacific Partnership (TPP) may well be completed.

In June, student visas increased by 11 per cent compared with June 2014, primarily for students from China, Malaysia, the Philippines and India.

In spite of indications of China’s growth slowing a little, the size of that economy and the now maturing relationship we share means we can continue to have confidence in our exports growing there as well.

Many positive indicators The educational sector has made great progress to more accurately reflect the needs of business. This is particularly so in vocational training in the growth of the New Zealand Apprenticeship scheme. It is also pleasing that we are seeing innovation in our institutions. For instance, Unitec has co-located with IBM to provide work and training for IT undergraduates. The preliminary results of our twice-yearly Employers Survey and the monthly PSI and PMI survey indices have us in positive territory. Full results of our Employers Survey will be published in the September issue of BusinessPlus.

There is considerable latent potential in our economy, which can only be unlocked by structural reforms in the regulations which affect our planning systems. Together, the Local Government Act, Resource Management Act and Land Transport Management Act make the development of infrastructure and other investments, more complicated, expensive and less timely than they need to be. Watch this space! Our economy is in good shape, so let’s not talk ourselves into a recession. • Kim Campbell is CEO of EMA. BusinessPlus August 2015

Find the middle ground. Keep your precious staff.

North or South, East or West. Health Professionals to Construction Workers. We’ve got the true picture from Kiwi employers just like you to help you make informed decisions that deal with questions such as, ‘In order to retain my precious staff, what should I pay and what benefits should I include’?

national employers

wage salary survey

nzsalarysurvey.co.nz

BusinessNZ COMMENTARY By Phil O’Reilly

Safety bill changes, more practical We are getting closer to new workplace safety law in New Zealand. The Health and Safety Reform Bill is going through the final stages of the Parliamentary process and should become law before end of the year. The goal for the new legislation was to get more focus on responsibilities for safety, and stronger penalties where needed, while being workable for business. The Bill appears to achieve this, but it is lengthy and could be hard for business to follow. It would be helpful if it could be made clearer. The Bill is based on Australian model legislation (the model that Australian states use for state safety legislation). This makes sense, since Australia and New Zealand try to harmonise their business law, under the Single Economic Market agreement. It means those who work in both countries can have a fairly consistent approach to safe practice at work. BusinessNZ has advocated for some of the Bill’s more sensible provisions, including the key definition of what must be done to achieve safe workplaces. The new Bill requires taking all steps that are “reasonably practicable” to ensure safety, replacing the current difficult requirement of taking “all practicable” steps. The definition of “reasonably practicable” can include an assessment of whether there is disproportionate cost to address risk, better reflecting the realities of workplace management. The Bill also clarifies issues around control over a workplace. The “person conducting a business or undertaking” (PCBU), with the primary duty for safety, will usually be a business entity, such as a company, but may be an individual in the cases of a sole trader or self-employed person. This makes it clearer where the primary duty for safety is. The issues which caused recent delays to the Bill concern provisions that are already a feature of current legislation. These are concerns over safety reps and liability

for non-employees. It was useful for the issues to be debated again, as they relate to significant problem areas for employers. One concern about safety reps was that a system focusing on just a few employees in the workplace (the safety reps) could make other employees feel they had no responsibility for safety, thereby weakening the incentives for safe conduct by everyone.

“Instead of a corporate manslaughter charge, the Bill will include provision for guidance to courts requiring them to consider the seriousness of an accident causing death when sentencing” Relief for small business Another concern was that the requirement for safety reps is probably too onerous for smaller employers. The Bill now clarifies that businesses in lower risk occupations, with fewer than 20 employees, will not be required to have safety reps - although they will still be required to involve their workers in health and safety matters. The concern over liability for nonemployees relates to farmers’ liability for accidents by non-employees on their land, as well as concern about employers’ liability for volunteer workers. The Bill now clarifies that the area where work is being undertaken on a farm will be categorised as a workplace, while areas where work is not being undertaken will not be categorised as a workplace. This addresses the problem of farmers being liable for hunters or trampers present in non-working areas of a farm, for example. Instances where employers are liable for non-employees are significant because workplace safety law imposes strict liability on employers, making them responsible for any accident at work regardless of employer culpability.

Because employers carry the burden of strict liability, even for accidents caused solely by employees, it is important that the new law stresses the need for everyone in the workplace – employer and employee – to be responsible for safe conduct. Otherwise, it is unfair on employers. The question of who is responsible when accidents occur is complex and emotive, with deep ramifications. There was a suggestion that a charge of corporate manslaughter should have been included in the legislation, but this didn’t eventuate. This would have brought complications. One complication would be the difficulty of successfully prosecuting an entire company, over and above any prosecution of a director or executive of the company. Another would be that having a charge of corporate manslaughter could undermine the current status of employers’ strict liability. The legal process required could entail a company’s defense that a deceased employee’s actions had contributed to his or her death, negating the strict liability provisions of the legislation. Instead of a corporate manslaughter charge, the Bill will include provision for guidance to courts requiring them to consider the seriousness of an accident causing death when sentencing. Overall, the new Bill appears reasonably balanced while maintaining a strict focus on safety. Hopefully the Bill can now be further improved to be clearer and simpler for business to follow. As the Bill gets closer to becoming law, it will also be important that WorkSafe NZ works with business to put in place systems to ensure business can comply with the new rules. • Phil O’Reilly is Chief Executive of BusinessNZ, of which EMA is the largest shareholder. www.businessnz.org.nz BusinessPlus August 2015

Sustainability COMMENTARY By Penny Nelson

Clearer benefits of sustainable business activity What are the big sustainability trends for businesses in New Zealand? According to the Sustainable Business Council, there are two important changes taking place. First is the growing number of businesses that are looking more closely at their environmental and social impact, which is helping them to identify risks and new business opportunities. Secondly, businesses that are addressing sustainability challenges are starting to see the financial benefits as a result. The Sustainable Business Council, a division of BusinessNZ of which EMA is the major shareholder, connects businesses and supports them to find solutions to sustainability challenges. Its members’ turnover makes up nearly a third of New Zealand’s private sector GDP. Council Executive Director Penny Nelson says that globally, there’s a big push towards accelerating the shift towards a low carbon economy. “Businesses in New Zealand that are looking at their long-term economic sustainability are starting to see climate change and resource use as risks that need to be managed. Businesses focused on long term value have already recognised the threat of not preparing themselves for this change,” says Penny. “But more importantly, many businesses are now also seeing the opportunities of leading the way with new innovations and technology and finding cost savings by being more resource-efficient.

Drivers “There are a few drivers for this. Increasingly, consumers are starting to hold businesses to account for their environmental and social track records. This used to be the domain of ecowarrior consumers, but now more and more consumers are concerned about how this

BusinessPlus August 2015

personally affects them, and investors are looking more closely at whether their investment is good in the long term. “Technology – especially digital – has had a big impact on increasing business transparency. People are now able to search anything on Google and share their views on social media at lightening speeds. “It means managing reputation is an issue for businesses of all shapes and sizes. Communities in general are more alert to whether businesses have their best interests at heart.” Members of the Sustainable Business Council are getting an increasing number of requests from global companies to demonstrate that, as suppliers, they are meeting high enough environmental standards. “We’re definitely seeing a growing demand for transparency from businesses. This will only increase, if international trends are anything to go by. “We know that a number of Sustainable Business Council members are already reporting on their non-financial impacts because they can see that having that transparency, and also understanding their business impacts better, will be increasingly important.”

Keeping control of costs But Penny says shaping your business to meet the new low carbon economy doesn’t always come at a cost. “A number of Council member businesses are making significant savings and finding whole new business streams by focussing on new innovations or efficiencies in areas like energy efficiency, shifting to electric fleet vehicles or freighting.” Toyota New Zealand is one example. It started assessing the way it was transporting car parts to its Palmerston North warehouse. Initially, it was looking for ways to reduce its carbon footprint and so made the shift from road to rail. The initiative has reduced CO2 emissions by 5 tonnes per year or 39 per cent, and also reduced the number of trucks on what is a heavily-congested traffic route. Not surprisingly, it has also saved the business money. Wellington Zoo is now saving $40,000pa after improving its understanding of its value chain for animal feed. By having a better understanding of its dependencies and being able to see ways to collaborate with other organisations and businesses, it also now feels much more confident in its future feed supply, Penny says. • Penny Nelson is the executive director of the Sustainable Business Council visit www.sbc.org.nz

Book review COMMENTARY

Behind the Mask

Title:

– Embrace Risk and Dare to be better Author: Donald F. Hastings and Leslie Anne Hastings Publisher: www.xlibris.com, available at their bookstore, on Amazon and Barnes & Noble RRP: $US16.57 Paperback on Amazon Reviewer: Gilbert Peterson Behind the Mask is an excellent fast read, full of action and business adventures. Any manager would want to dip into it, for the endless live anecdotes as much as for ‘lessons to be learned.’ So don’t let the opening quote from Walt Disney, “Its’ kind of fun to do the impossible”, put you off. The book is a memoir, going right back to post World War II. With the author’s daughter’s assistance, it tells how he took the 100-year-old Lincoln Electric Company from the brink of financial ruin in 1992 back to profitability, without laying off a single person from the 3000 staff. Lincoln Electric is said to be the world’s leading manufacturer of electric arc welding equipment, and welders must cover their eyes with a protective shield, hence the ‘mask’ of the book’s title. Author Donald Hastings is an engaging chap, down to earth, not full of himself, though certainly full of the ideas he spills out rapid fire. The whole book is a series of short pointed tales, often punctuated with “Then I had an idea”, which eventually led him to become the company’s President, right at the moment when US manufacturing hit the economic wall. The recession in the US in the 1980s was brought about by a crisis of confidence in US manufacturing, especially in vehicle manufacture. Repercussions downstream sent the shudders of recession throughout US plant and equipment manufacturers such as the Lincoln Electric Company. Behind the Mask does an admirable job of registering the responses made by this one unique, specialist manufacturing company in the context of the unfolding of US business history. While the book records and recalls some of the company’s engineering and management innovations during the decades of the second half of last century, it keeps the story of the people at its heart. Hasting’s tenacious and ebullient character is constantly on the move seeking new ways to keep the business busy, its people employed and its prosperity unquestioned. A great inspirational read.

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Publication

Title:

The 4 Dimensions of Total Customer Service

- The Customer Service Hallmark Author: Stuart McKechnie Publisher: Balboa Press RRP: $US28.99 Reviewer: Gilbert Peterson In this self-help manual on how to change your organisation’s business culture, author Stuart McKechnie does his level best to make it always readable and interesting. He doesn’t always make it so.

He starts out: “What successful organisations have in common is a consistently demonstrated commitment to their customers, and a high level of customer service.” So this would seem to be a reworked approach to TQM (Total Quality Management). It soon turns out the book will take a slightly different tack: to show managers how they can achieve a far deeper supplier/customer relationship. It aims to guide the reader/student well beyond the flippancy of ‘have a nice day.’ The author is well qualified. He founded McKechnie’s Ltd, a people development consultancy in the UK, then lived in Perth, Australia for 10 years. He has been engaged by many organisations in several countries across all types of business and government units. McKechnie says people talk of ‘exceeding customer expectations’ but says that’s not always realistic. What is doable is for companies to invest in learning and the development of their staff to build a customer service culture across all their functional areas. To do this he puts up a list of must dos, such as: • • •

Never promise what cannot be achieved Never let customers down Respond quickly and positively to resolve any instances of customer dissatisfaction • Engage the whole organisation in delivering quality and in continuous improvements Your customers, says McKechnie, should be positioned at the forefront of your organisation’s strategic intent; and your customer service at the core of your organisation’s culture. Then he sets off at length explaining what this means and how you can go about it. The act of reading through this management guide will immerse you in thinking about how to improve your organisation’s customer service. As it does that, it will succeed for you.

TELL US WHAT YOU THINK OF BusinessPlus! EMA wants to know what you think of THIS magazine, BusinessPlus.

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Please give us the benefit of your views online, when we send an email to you right after you get this August issue in the post. Our survey should take no longer than five minutes AND every completed survey will go in the draw to win a case of 12 bottles of fine wine! As a member of EMA your organisation receives this monthly magazine, BusinessPlus, in the post, 11 times a year. bePS explained In this issue:

• Why IP should top your to do list Pt2 eSIa: • The whole story on maternity Indon leave • Thinking of rebranding? Trade mission report • SPrIng member brIefIng Schedule In this issue: Pt2 list do to top your • Why IP should on maternity leave story whole • The ing? • Thinking of rebrandbrIefIng Schedule er • SPrIng memb

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So we want to know what you like and dislike about it. Your views will help us decide what information you would like to see more (or less) of, and other issues such as its frequency and size. Thank you in anticipation! BusinessPlus August 2015

COMMENTARY

Winning Government jobs is high on the radar value for money should account for all the costs and benefits over the life time of the goods and services” – so taking quality into account, not just lowest price bid.

to medium sized companies, so they need to be somewhere in the supply chain. In Australia the rules require a local industry participation plan for larger projects.

However, the overall rating of government procurement activity is still far from where it needs to be.

The principles also refer to taking account of economic and environmental impacts.

We are working with MBIE to encourage them to publish the results of their audits of government procurement performance.

We are working with policy staff at the Ministry of Business, Innovation and Employment (MBIE) to make Government procurement more user-friendly for small to medium size (and even large) New Zealand suppliers.

We know that some aspects of tendering for contracts have been improving, such as the length of time tenders are in the field and the clarity of information in tender documents. But other areas, like post-tender feedback and regular contract review meetings, are still poor.

We have argued that in a small economy, the only way to grow bigger companies of scale is to get them involved in bigger projects.

Business feedback

Helping business procure a slice of Government work contracts has been a focus of Manufacturing NZ, with some success.

Who does bigger projects in the New Zealand economy? The Government – with a $40 billion annual spend. We have had some success, with an upgrade of the rules of procurement to include principles that state the “best

BusinessPlus August 2015

New Zealand firms are very reluctant to complain – even if they know how to, as they don’t want to risk getting a bad name. This is in contrast to the US, where suppliers are expected to complain and they do. There is a lot more transparency around decisions and complaints. Also in the US they have a rule that 20% of Federal Government work must go to small

In addition we would also like to see all tenders listed on GETS.govt.nz (website of the New Zealand Government Electronic Tenders Service) to provide an option for suppliers to rate the tender experience. Issues to be rated could include the sufficiency of Government’s pre-market engagement, of time to respond to the tender and of the information provided. · By Catherine Beard, executive director of Manufacturing NZ, a division of Business NZ of which EMA is the major stakeholder. Catherine is happy to receive any suggestions from readers on this topic. You can email her at cbeard@businessnz.org.nz.

Tax COMMENTARY By Jo Doolan and Claire Dilks

Provisional Tax the no win situation One of the worst rip-offs - that is unlikely to feature on Fair Go - is New Zealand’s provisional tax system. Firstly you are expected to accurately anticipate what your next year’s profit is going to be and then pay tax in advance in three equal instalments. Unless you have a very good clairvoyant on board, this is close to impossible so most either end up using a tax pooling agent or under or overpaying their tax. Secondly the interest rate you receive if you overpay your provisional tax is 2.63%. This applies from May 8th and was previously 1.75%. If you underpay, you get charged use of money interest at 9.21%, which is up from 8.40%. I am no banking expert, however, these have to be the best spreads in town and if these types of margins existed for most banks the screams of ‘unfair’ would be very loud. At present provisional tax applies where the residual income tax you owe in any year exceeds $2,500. There are three methods under which you can estimate your provisional tax. The first is the standard uplift method whereby you estimate your provisional tax as 105% of your previous year’s residual income tax.

To say the practical application of these rules is enough to give business owners a serious headache is the understatement of the year.

Making it simpler Riding in on a white horse we have a Government discussion document, “Making tax simpler – a Government Green Paper on Tax Administration”. In the foreword the Finance Minister Bill English and Minister of Revenue Todd McClay tell us they want businesses to be able to focus on running their businesses, with tax as a secondary consideration. And they want to make it more difficult for people to fall into overdue debt, and easier for them to manage their tax payments. Options presented for consideration include calculating and paying business income tax on account, as income is earned during the year. This would be akin to introducing a PAYE for businesses. Other options include using interim accounting profit calculations as the basis for paying provisional tax, with a few key adjustments like reversing out capital gains and losses. This would also involve aligning these calculations to accounting software packages. There is also the concept of basing provisional tax payments on a percentage of a business’ turnover and using systems

improvements to allow for a bespoke provisional tax rate based on a business’ previous tax position. For other businesses the position of changing the safe harbour limits could be considered. Where businesses are using calculations based on approved software, the existing monetary threshold for those using the standard uplift option and have a residual income tax of less than say $50,000 would no longer be subject to use of money interest throughout the year. Use of money interest would still apply if you did not make the payments by the due date. As shown by a study in 2014 from Victoria University’s Associate Professor Lisa Marriott, what we have achieved is the dubious honour of having one of the highest combined annual penalty and interest rates in the world, at around 26.72% compared to Australia at 9.59%. See the graph below. While the concept of simplifying taxes and allowing businesses to spend more time on their businesses is noble, the reality is the ongoing chatter about tax simplification could qualify for a “Tui” advertisement, with wording something like: “Tax simplification moves are making progress – yeah right!” · Joanna Doolan is a tax partner and Claire Dilks is a senior tax manager at Ernst & Young. Email Joanna.doolan@nz.ey.com or Claire.dilks@nz.ey.com

Or if you have not yet filed your previous year’s return, the amount is 110% of the residual tax payable the year before. You then have the option of estimating your provisional tax with the overriding requirement that this has to be a fair and reasonable estimate, and interest is still payable or receivable on any provisional tax that is under- or overpaid along with shortfall penalties of 20% if you fail to take reasonable care. Lastly, we have the GST ratio method, which means you pay provisional tax based on a percentage of your GST taxable supplies. To qualify for this there are strict requirements, such as your residual income tax being more than $2,500 but no more than $150,000, and you have to be registered for GST for a whole year and filing monthly or two-monthly GST returns.

Victoria University study by Associate Professor Lisa Marriott (2014) BusinessPlus August 2015

Provisional tax doesnâ&#x20AC;&#x2122;t have to be scary. With Tax FINANCE you can delay payments to a time that suits you. Avoid more expensive funding options and keep cash in your business. For a better tax outcome visit tmnz.co.nz, talk to your tax adviser or call 0800 829 888.

EMA/FP/T/TF2

EMPLOYMENT By Nicola Pohlen

Customer experience needs to be reflected in recruitment strategy Delivering an exceptional experience in all customer connections has gained momentum for organisations in every sector. It offers differentiation from competitors, engages employees, may improve profitability and provide a sustainable business model. Transferring the deliverance of exceptional customer experience to a recruitment process in which a candidate applying for a position is also a customer, is equally important. Outlined below are elements for consideration that provide a sound base towards ensuring candidates feel valued; that they experience a timely, professional recruitment process; and that afterwards they contribute to development of a strong brand for your business in the market.

Company and employer brand alignment Ideally people experience the company brand the same whether they are interacting with it as a customer purchasing a product or service, or as a prospective or existing employee. Achieving this brand alignment requires integration of strategies and tactics. Marketing and human resource functions need to deliver consistency in messaging, policies, practices, themes and behaviours at all touch points. This extends to strategic partners who provide an outsourced function, such as logistics, sales or talent to ensure their representation is appropriate.

Communication design Developing a communication plan for recruitment projects keeps participants informed and saves time, when managed effectively. A combination of communication forms tailored automation, phone, email, social media and face-to-face - is appropriate to demonstrate respect for the individual’s investment in the process, to enhance their experience and the organisation’s brand. This is one of the simplest ways to stand out as an employer of choice.

Culture and behaviours Employees are the critical element in making a difference to the effective implementation of a satisfying customer interface. This is a key business imperative that cannot be automated; it relies on personal attributes combined with the use of business processes and technology to deliver a memorable experience. This usually begins with establishing an internal philosophy aligned with having customers at the centre of the organisation’s thinking; it is a long term strategy and requires engagement from the whole company to ensure leadership behaviours and employee capabilities have a customer orientation.

Impact of talent shortages on attracting candidates Talent shortages can be prevalent in some functional areas, at particular experience levels and for specific employee attributes. In each circumstance it creates greater competition for candidates, requiring your company to deliver a heightened customer experience and establish an attractive brand, to ensure the organisation is top of mind when these talented people seek a career change.

Recruitment process Robust, objective evaluation requires planned steps, each of which present opportunities to interact with candidates as customers by: • Acknowledging written applications, • Defining general timeframes, • Engaging in a collaborative interview style, • Ensuring interviewers are accomplished company advocates, • Providing feedback following interview(s), and • Advising unsuccessful candidates of the final outcome.

•

• • •

Know the timeframes and steps required to completion of the recruitment process, Understand values and behaviours that underpin the culture of the company; Learn about potential career opportunities for future development; Appreciate remuneration parameters early on to ensure alignment; Be excited by current employees who will engage them in the process.

Good business practice Delivering an exceptional customer experience through a structured, communicative recruitment process has wider implications for the organisation, bringing the following benefits: • Development of talent pipelines – candidates who are unsuccessful in one process may be suitable for opportunities in the future; this practice is cost effective, timely and a strategic approach to managing organisational capability. • Brand ambassadors – prospective employees can be an additional voice to current employees in promoting the company, elevating your proposition and overshadowing your competitors. • Commercial impact – engaged individuals will share their knowledge and awareness of the company with their networks, potentially leading to increased sales and ultimately profitability.

Summary

Candidate insights

The impact of a seamless, enjoyable customer interaction on creating a positive brand image is acknowledged by all sectors - businesses, charities and government agencies. It is integral to the success of a business and is highly dependent on employee delivery. This requires integration across all processes and behaviours, including attraction and evaluation strategies for potential employees who form opinions on organisations based on this experience.

Delivering a positive experience to applicants throughout a hiring process is easier when you understand their expectations. Their preferences are to:

• Nicola Pohlen is a principal at Pohlen Partners human resources and recruitment specialists. www.pohlenpartners.co.nz BusinessPlus August 2015

Employment CHAT

Considering instant dismissal and taking If you didn’t have a co-signed employment agreement, you must deal with the issues on the basis of minimum employment conditions in regard to what constitutes serious misconduct.

Q. I lent one of my guys my credit card to top up the truck with diesel – next thing I know; he’s cleaned me out of 10 grand. He’d been with me a while so I was gobsmacked. Can I just fire him on the spot? Oh, and I’ve reported the theft to police. – Hank

If, after the investigation and disciplinary meeting are over and you are satisfied that the employee needs to be terminated for serious misconduct, you do not have to give notice and the employee can be required to leave that same day. (Serious misconduct is different to misconduct.)

Dear Hank I won’t say the obvious…but I don’t suppose this will happen to you again. There are good reasons for going to the trouble of getting an account with a service station… Yes this level of harm to the business would probably qualify as a case for summary (instant) dismissal. However as per usual, you will have to follow the disciplinary process and investigate the matter with the employee first. It is important to ask for the employee’s explanation as it is very rare that a longstanding employee would attempt to breach your trust and confidence at this stage of their employment. The employee might offer some justification for his actions that, if confirmed by investigation, would make disciplinary action unfair or unreasonable. What if someone was holding a gun to

your guy’s head at the ATM when he made the withdrawal (and it wasn’t a set-up with friends….)? There may be witnesses that step forward part way through the disciplinary process which will require you to investigate further. There will definitely need to be an inquiry leading up to every decision to take any disciplinary action against an employee, and that inquiry should be both full and fair. To start with, check the employment agreement you have with him! This document should set out the standards of conduct that are expected and the sanctions that may follow if those standards are breached. Perhaps the agreement entitles him to free use of the card…but only to the amount needed to fill the gas tank.

Misconduct applies to any conduct that does not attract the ultimate censure of instant (summary) dismissal but instead results in counselling, a reprimand, a warning or dismissal on notice. Repetitions of misconduct, whether they involve the same or different conduct, will mean that the offending employee will progress along a disciplinary process as laid out by the employer. But serious misconduct is conduct that an employer considers to be so serious, that after consideration it justifies ‘firing on the spot’. It is recommended that the payment of the final pay coincide with the last day of the employee’s employment. The recognised categories of serious misconduct are:

Adviceline

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Free call NZ 0800 300 362 AU 1800 300 362 Visit www.ema.co.nz

BusinessPlus August 2015

Employment CHAT

on a man with a criminal record • • • • • • • •

Deliberate disobedience to a lawful and reasonable instruction; Personal abuse; Violence and harassment; Serious breach of work rules (including those involving health and safety); Dishonesty; Misrepresentation; Breach of implied duties such as confidentiality, loyalty and fidelity; Conduct outside work that brings the employer or the employment relationship into disrepute.

So in your case, dishonesty is the justification. Also, you can pursue a criminal case quite separately from the employment issues. It would be assumed the guy had left your employment before this began, or your accusation would not look genuine. As this might be hard to keep quiet from other staff, it might pay to explain in basic terms what is going on and that you have a (new) policy around the use of company vehicles that they should refresh themselves with. We encourage employers to seek advice, such as from our AdviceLine team, before commencing any disciplinary process. Q. I have a candidate with a criminal conviction from the last seven years, but

he went to jail for six months of a one-year sentence. This means he doesn’t qualify for the clean slate thing. What can, and do I, need to know about him? He seems worth a try…it’s a manufacturing plant with no kids. - Bobby

Dear Bobby You are right, that because he had been sentenced to a custodial sentence (eg, imprisonment, corrective training or borstal) he cannot conceal his record from you. You have the right to ask what his conviction was for and what the sentence was, so that you can be sure of the health and safety of your other workers and of him of course. Perhaps with help from a recruitment expert and further candidate testing you can verify his honesty and character in a nutshell, and his ability to do the job. And it is recommended that employers check themselves, rather than rely on the candidate’s understanding of this Act or attempt to ascertain all the information from the candidate. • By the EMA communications team in consultation with EMA Advice, and loosely based on real calls to EMA’s AdviceLine. All names are fictional. The information in this article is a guide only and not to be used as business advice without further consultation.

EMA members can start with our free AdviceLine team at phone 09-367 0909 or 0800 300 362 (within New Zealand), and 1800 300 362 (from Australia), 8am8pm weekdays. Alternatively, email advice@ema.co.nz or read or print information such as the A-Z of Employing – a manager’s guide on more than 100 specific employment topics, at www.ema.co.nz

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EMPLOYMENT By David Shannon

Choosing where to live and how to spend time in retirement In this final article of our series on retirement planning, we look at issues around housing and the leisure time we expect to have in retirement. The final critical decision in retirement planning – housing – is unavoidable. You could be living in this home 20 years after you retire - when you are in your 80s, and maybe on your own. You want your home to be mortgage-free, cheap to run, safe, convenient, easy to maintain and comfortable. Without going into details, an overview of the basic physical aspects of your potential housing should include: • location, • safety, • maintenance, • comfort, • convenience, and • costs. Assuming you have considered all these issues, following are a few more to look at.

Insurance Having got your retirement home set up, make sure that both your home and contents are adequately insured against fire and other disasters. You will generally get a better deal if you shop around and group all your insurances. Be aware of the distinctions between “indemnity,” “fixed sum” and “replacement” values in your insurance, and check to ensure coverage of possessions even in your absence from home.

Moving away If you are thinking of moving away to another town or city, be very careful in making the decision. As a couple, make sure you are both of a like mind, and make sure you are not just looking for a long holiday, the attraction of which may wear off. Before you buy at a new location, ask yourself: will this be all right in 20 years’ time, and how will it be on my own?

BusinessPlus August 2015

Retirement and rest homes Retirement villages and rest homes are an alternative to living in your own home. They offer secure accommodation and relief from the responsibility of maintaining your own home – as well as companionship. Many also offer additional services such as nursing and life-care, and larger establishments often have their own hospital facilities.

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Don’t be self-centred: Even if you are a loner, try to include at least one activity that will bring you into contact with others. You need to have at least one activity with and for other people, not necessarily your partner.

•

Avoid vulnerability: Do not concentrate solely on one interest that is reliant on the weather or some other circumstances beyond your control. Cultivate a good mix of interests, some requiring physical activity, others mental stimulation; some indoor and some outdoor.

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Partners should avoid…:Sharing all leisure pursuits, or not sharing any leisure pursuits. Do not become too reliant on your partner. The “Darby and Joan” couple may present a sweet image, but what about the trauma when one dies?

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Don’t get up late habitually: Time is precious and the older we get the more precious it becomes. Don’t waste your time lying in bed unnecessarily. There is just so much to do out there.

On the other hand, there may be some disadvantages. For example, all the residents are elderly – will this suit you? There may be limitations on visitors, pets or having your own garden. If you contemplate a retirement village or rest home, shop around and check out any prospects thoroughly. Have your lawyer check the terms and conditions of residence, or ownership, before you commit yourselves and especially check re-sale clauses if you ever want to move.

Principles of leisure When you retire, you switch from a “working life” to a “life of leisure” and the manner in which you spend this new-found leisure time will determine the enjoyment and satisfaction you will get in your retirement years. Remember that you are going to have an extra 220 days of leisure time on average each year. It is a lot and it’s worth waiting for, but don’t forget the following basic principles when choosing your leisure activities. •

•

Avoid boredom: It is no good having nothing to do. You will be bored and boredom can lead you to an early grave. Relaxation: This is not the same as filling in time. If you relax all day, your sleeping pattern will change, and so will your figure. It is fine to take time out, to just sit and listen to the grass grow, but you can’t make a lifestyle out of it.

And finally: •

Maintain your sense of purpose: The “sense of Purpose” for a working person often comes from job satisfaction. When you retire you will need something to replace this strong influence on your mental health.

In summary, planning is essential for a “successful” retirement. We hope the issues discussed in this series will be helpful in planning yours. • David Shannon is EMA’s remuneration consultant. He is also a retirement planning consultant. Phone +64 27 600 8793, email david.shannon@ema.co.nz

EMPLOYMENT

Improved workforce literacy pays off Good communication is essential in a large, customer-driven organisation such as SKYCITY Auckland. Employees need to have strong interpersonal skills to provide excellent customer service and to perform their duties proficiently in a team. SKYCITY decided to undertake literacy training after attending an introductory seminar run by the Employers and Manufacturers Association in association with Workbase, a literacy training provider. SKYCITY Auckland is the single largest visitor destination in New Zealand, and employs more than 3,500 people from more than 40 different cultures. First, Workbase delivered a programme to 22 SKYCITY participants mostly from support services and cleaning services. The training was tailored to individual needs and based on relevant departmental documents and communication. The training was funded by the Tertiary Education Commission’s Workplace Literacy Fund. SKYCITY managers were so impressed with the results that they continued the training, paying for it themselves. Training then covered a wider range of SKYCITY departments and job roles. The company’s Learning and Development Manager, Ruth Smillie, says, “It was an easy decision to continue with literacy training for our employees. Those who attend appreciate the training; they are able to communicate more clearly and to fill in documentation more accurately. “Managers can see the benefit to the business too. By providing targeted support to employees who need it, we have been more able to promote staff internally, and to improve the effectiveness of people in their job roles.” As an example, Ruth mentions two supervisors who needed to make sure health and safety documents are accurately completed. After literacy training for staff, the supervisors were both able to provide clear instructions to their teams to ensure the product they used was applied correctly and the documents were completed.

SKYCITY staff member

“Workbase has been working with us for many years now,” says Ruth, “They know our business inside out and the tutors feel like part of the team. They adapt their programmes to our employees’ needs and our staff tell us it feels more like coaching than teaching. The value for SKYCITY and for our staff ticks so many boxes, in the workplace and at home.”

Essential information The programmes are aimed at: •

Employees who have low or no qualifications

•

NZ citizens or permanent residents

Employees undertaking Governmentfunded literacy training receive a total of 40 hours of teaching over 10 or more weeks.

What other clients say about workplace literacy training “The way I see it, workplace literacy training is a win-win-win. It’s a triple dose of the

good stuff. I win, our employees win and our customers do to.” - Tony Gorton, Chief Executive Officer, Cardinal Logistics “Over the past year there has been a drop in picking errors of 74%. This is a cost saving for the company and of course it keeps our customers happier when they receive fewer wrong deliveries.” - Bruce Graham, Warehouse Manager, Snell Packaging & Safety EMA’s Advocacy team has submitted views on behalf of members, on the Tertiary Education Commission’s Literacy and Numeracy Implementation Strategy for 2015-2019. EMA supports increasing the focus on the workplace. About 40% of people in the workforce have literacy and numeracy skills below the level needed to function well in a knowledge society and information economy. Contact Michael Burgess for more information: Email mike.burgess@ema.co.nz BusinessPlus August 2015

EMPLOYMENT

Employment agreements and leave - most troublesome for employers Employers’ determination to correctly engage new staff and ensure they have appropriate employment agreements and terms in place, were the biggest issues that drove our members to call AdviceLine for help, according to EMA’s annual call analysis.

The other issues of concern are shown below.

whether you have a specific query or just wish to talk over an employment issue or process”. Most people prefer to phone to discuss their employment concerns, but AdviceLine also responded to 1709 email queries from July 2014 to June 2015.

AdviceLine is open 8am-8pm on weekdays at 0800 300 362 for New Zealand members, and at 1800 300 362 for Australian members who have operations in New Zealand, or at advice@ema.co.nz

AdviceLine advisers received over 30,000 freephone calls last year and 17.1% were about employment agreements and recruitment. The next most common issue members called about was employee leave, which was the subject of 14.9% of the calls. This was closely followed by discussions around discipline (including termination), which were the subject of 14.7% of calls. EMA’s AdviceLine is a free service to members, who can call from 8am to 8pm weekdays to discuss any business issue. The rostered team of trained advisers can also refer callers to EMA’s in-house Legal team for representation where necessary, as well as to consultants specialising in employment relations and occupational health and safety. AdviceLine team manager Sean Hanna says, “AdviceLine is here to help employers. We encourage members to call

ADVICE AND SUPPORT WHEN YOU NEED IT. Free call NZ 0800 300 362 AU 1800 300 362 Visit www.ema.co.nz

BusinessPlus August 2015

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EMPLOYMENT

Undermining drug testing procedures led to justified dismissal A recent finding by the Employment Relations Authority (ERA) has upheld a gold mining company’s decision to dismiss an employee for not cooperating with its drug testing policy. The former employee, Mr Ivamy, claimed he was unjustifiably dismissed by Oceana Gold (New Zealand) Limited in October 2013 following a drug testing procedure. The ERA decision was finally made in June this year that Oceana was entitled to conclude Mr Ivamy had engaged in conduct designed to undermine the testing process. The ERA found his dismissal was therefore justified. Mr Ivamy had not been dismissed for actually using drugs, but for undermining Oceana’s attempts to test him. Back on October 17 in 2013, Oceana staff was required to undergo a drug test at approximately 4am. At the time, Mr Ivamy was working at the bottom of the mine and did not expect the call to leave the mine was for the purpose of undergoing a drug test. And in any case, he said he had urinated prior to departing so was unable to produce the required sample by the time his shift was scheduled to end at 7am. He was also unable to stay on site after the shift ended because he had to look after his son during the day and advised both the underground manager, Mr Pattinson, and the mine safety officer, accordingly. He then left for home on the companyprovided bus. When Mr Ivamy got home he was advised that Mr Pattinson had been telephoning him. He did not respond then, as he needed to deliver his daughter to school and his wife to work. When he returned he had missed a number of telephone calls from Mr Pattinson and decided to consult with his union about his rights regarding the drug testing procedure, prior to responding.

At approximately 9.30am on October 17 Mr Pattinson and Mr Ivamy spoke and Mr Pattinson asked that he complete the drug testing procedure by either going to the testing agency’s premises or having the testing agency visit him at home. Mr Ivamy agreed to the testing agency visiting his home as his union had advised it would be a good idea for him to complete the testing process.

opportunity to comply with the drug and alcohol policy and his failure to do so was grounds for a disciplinary investigation.

The testing technician arrived soon afterwards and the required sample was provided, but it was immediately determined the sample was diluted and therefore unsuitable for testing purposes.

However, Oceana Gold considered Mr Ivamy’s responses were inadequate and decided to dismiss.

Mr Ivamy intended being away for the weekend and he offered to provide a further sample on Monday, but was told that would not be acceptable to Oceana and that the testing agency could return at 3pm on the 17th. Mr Ivamy said he would be out collecting his wife and daughter then. When offered to be tested at the testing company’s facility at 3.30pm, Mr Ivamy said by then he would have been awake for some 24 hours, and went to sleep.

Ample opportunity to be tested The news Mr Ivamy had not completed the test led to further attempts by Mr Pattinson to contact him. The following day Oceana concluded Mr Ivamy had had ample

Mr Ivamy attended a disciplinary meeting accompanied by a union official, reiterated he was not deliberately trying to avoid the test and indicated a preparedness to take one immediately and continue taking a weekly test if required.

Essentially Mr Ivamy tried to argue there was no evidence he used drugs in the mine on the night of 16-17 October 2013 and that as a result he could not be dismissed. The Authority said that approach missed one key point. Oceana’s policies advised serious misconduct may include conduct which obstructs or interferes with drug testing, such as: a failure to report for testing when required; an inability to provide an adequate sample; and the dilution of a sample by, for example, excessive drinking prior to the provision of a sample. Having considered the evidence, the Authority concluded Oceana was entitled to conclude such conduct had occurred. It was clear Mr Ivamy failed to provide a sample when required. Oceana was entitled to conclude Mr Ivamy had engaged in conduct designed to undermine the testing process. The dismissal was justified.

Summary This case highlights that for employers, drug testing is more than about staff being under the influence of drugs and resulting safety issues at work. The law supports companies’ rights to test in the first place, and to enforce their testing policies. However, employers must have comprehensive policies in place to cover these types of scenarios. They must also ensure that employees are aware of the policies and of the consequences of any breaches. BusinessPlus August 2015

EMPLOYMENT

Engaging young people with career pathways in your industry Careers New Zealand is helping employers highlight to young people career pathways in their industry and provide them with realistic connections with the world of work. They are doing this by innovating to help people make informed learning and work choices so they and the country will have a better future. “We are here to help young people move from school to further education and work,” says Careers New Zealand’s Chief Executive Keith Marshall. Forestry Big Day Out helps young people explore job opportunities “We have a number of ways to do that – including providing interactive digital tools and resources to help with making career choices, providing professional training for people who support other people to make career choices and running innovative programmes to connect educators and employers.” He says recent results from a Neilson random survey have shown Careers New Zealand to be one of the “go-to” places for career help and advice. “The results showed over half of New Zealanders have heard of us. In addition 70% of 15-24-yearolds have heard of us and half of them have used our services. Further good news is that a huge 84% of people who know us, trust us.” Keith says he thinks the survey results show Careers New Zealand’s programme of work is proving successful.

Realistic connections with the world of work “We are about helping young people become career ready. While the tools and resources on our website help them think about, plan for and research possible career options, there’s nothing like making a face-to-face connection with an employer to provide a real experience of a work environment. “And for employers, good connections with young people can help them connect to the youth market, discover new business ideas and help develop their future workforce.”

BusinessPlus August 2015

Keith says the Industry Big Day Out (IBDO) programme which helps young New Zealanders explore different industries and develop a much clearer idea of future job opportunities and the skills they’ll need, is one example of a programme connecting employers and students. Phil Matthews, Director of Universal Engineering, has been involved in an IBDO and said the programme enabled his company to link up with enthusiastic students and their schools. “We believe as an industry we need to encourage young, educated people into the trades and other engineering roles. The programme highlights the good career paths available in the engineering trades.” Students say the programme gave them an opportunity to talk to people in an industry while teachers say their students are making subject and training choices based on what they discovered through the programme. IBDOs have been run in Gisborne, the Hawkes Bay and Porirua and the programme will be steadily expanded across New Zealand over the coming year. Careers New Zealand is also supporting COMET’s Youth Employability Passport programme that’s linking educators, government and business leaders to support youth employability in Auckland city. Superior Scaffolds hosted one young boy under the programme and Operations Manager

John Murray says he is happy with the way the programme went and would be interested in taking on more students in the future. Another two boys are going to on-the-job experience at Moana-Nui-a-kiwa (Auckland Council - Mangere Sports & Leisure) where they will get help to work towards qualifying for the Police and may also pick up enough skills to get a paid job during the summer holidays. “Another innovation we are very excited about is the internationally successful Work Inspiration programme,” Keith says. “This is an employer-led work exploration programme which gives employers an opportunity to showcase career options within their industry and young people a chance to get genuine insights into the world of work. “We have bought the licence to this programme from the UK-based developers, Business in the Community, and are currently in the process of piloting it and adapting it to the New Zealand environment.” There is more information available on workinspiration.nz. If you would like to contribute to improving young people’s transitions into work, please email wendy.drumm@careers.govt.nz or contact Careers New Zealand on 0800 222 733. Visit careers.govt.nz

International TRADE

Taming four tigers makes more sense than taking on a dragon By Nada Young The so-called Four Asian Tigers - South Korea, Singapore, Hong Kong and Taiwan - are resilient, free markets with a thriving middle class and a thirst for international goods. They sit apart from their Asian neighbours as role models for growth and prosperity. Exporting to the Tigers is a breeze, thanks to clear regulatory platforms and uncomplicated business processes. In the food and beverage (F&B) sector, where I operate, compliance with local authorities can be achieved in a matter of days. No time is wasted wading through layers of red tape. New Zealand now has free trade agreements (FTAs) with all Four Tigers and while this is a moot point in Singapore and Hong Kong, tariff preferences under the respective FTAs in Taiwan and Korea make our goods significantly more competitive.

Of course, exporting to the Four Tigers is Bongeunsa Temple in Seoul, Korea not without its also makes it difficult to know your challenges. Strong customers, respond to market changes competition from rival nations, expensive and protect your investment. It’s common trading terms and communication to hear cautionary tales of exporters challenges are part of doing business in who have not been paid or have lost these markets. their market share due to copycats manufacturing their product for a fraction And yet, these factors are trivial when of the price. compared to doing business with China, ‘the Dragon of the East’. Intricate and With challenges like these, taming the Four changeable regulatory systems mean Asian Tigers is a walk in the park compared that it can take many long months before to taking on the Dragon of the East. compliance is gained and your goods can be legally sold in China. • Nada Young is Asia Market Director at Incite. www.exportincite.com The complex nature of the China market

New Zealand needs TPP for access to important markets As New Zealand gets into the final stages of negotiating the new free trade deal with the Trans Pacific Partnership (TPP) countries, we have high hopes for a good quality deal that includes all our agricultural exports, which is where the biggest tariffs are typically applied. The TPP aims to create a regional free trade agreement involving 12 Asia Pacific countries: New Zealand, Australia, Brunei Darussalam, Chile, Japan, Malaysia, Peru, Singapore, the US, Viet Nam, Mexico and Canada. The agreement would deepen economic ties by opening up trade in goods and services, boosting investment flows, and promoting closer links across a range of economic policy and regulatory issues. It has been impossible for us to access markets like the US and Japan on an equal footing with other countries that already have trade deals with them - costing our

exporters many millions in earnings and hampering our competitiveness.

We hope people will take a breath and evaluate the benefits of the TPP rationally once we have more information to go on. Already, economic analysis of the expected benefits of TPP by US Professor Peter Petrie is outlined on p25.

The fact that the global dairy price slump is sending our economic commentators into a tail-spin just Catherine Beard highlights how important it is that we have lots of The benefits will not all be from market access choice around the world and that we are not penalised by tariffs or agriculture either, but from services exports (IT, education, commercial limiting quotas, and that we don’t have services, tourism) and from increased all our eggs in a few select markets. The inward and outward investment. more we can spread our risk the better. Because this trade deal has taken so long to get to the crunch point and our negotiators and politicians have been reluctant to reveal too much detail, it has been fertile ground for anti-traders to create a level of fear about possible trade-offs, by talking up a whole lot of worst case scenarios.

Those questioning the value of free trade agreements should look carefully at the results achieved by a few of New Zealand’s existing agreements. Trade with China has grown spectacularly since the free trade deal came into force, Continued on p25 BusinessPlus August 2015

International TRADE

Insights into China investment in NZ Western tradition is to lock down every last eventuality and possible liability in cross border contracts, while the Chinese approach is to allow for flexibility, came a key insight from Vicki Slater, the legal counsel for Huwaei in New Zealand, at the latest Business Intelligence Breakfast in Auckland.

Whereas Westerners may feel aggrieved if the tight wording of their contract is questioned, the Chinese may infer from an unwillingness to do this, a lack of trust and respect. Because partners don’t so much sign a contract as build a relationship –build Guangxi.

The topic was “Learning from Chinese Doing Business in New Zealand” at the breakfast workshop series run by Lowndes lawyers in partnership with EMA.

Vicki went on to talk about loss of face. ”An insult in China is to say someone has no face,” she said. When a Chinese person gives a vague response to a question, rather than being impolite it may be in their best interests, to avoid losing face.

Workshop host and chair Mark Lowndes, managing director of Lowndes company, framed the core issue of the breakfast session, saying, “We’re past the point of identifying differences between us for doing business, so how can we now forge strong partnerships to achieve greater benefit?”

“What impressed me most at first, was the extent that social and business norms intersperse in Chinese commercial life.”

Huwaei is the world’s largest telecoms equipment manufacturer with 170,000 staff in 170 countries. Half of their staff do research and development costing US$5.5 billion a year. Vicki said, “What impressed me most at first, was the extent that social and business norms intersperse in Chinese commercial life.”

It’s important to keep an open mind on what may be taking place; as with all relationships, the practices of compromise and courtesy are very important. Learning the signals paves the way to enjoy the Chinese style. Praising someone in front of their superiors builds face for the person as well as their superiors.

But he pointed out we are all migrants here and welcome the most recent arrivals for bringing new capital, new ideas and new colour. The Bank of China, the 7th largest bank in the world with a capital base of US$2.44 trillion, has just registered in New Zealand as the bank’s 37th country. Some revealing remarks were: “Chinese hardly ever do cold calls. They trust their relationships, and do business with people introduced through their networks.” To avoid a loss of face, never assume New Zealand practices are understood by the Chinese, Chris said. Always brief them in advance on what is scheduled to take place. They’re a kind, open-hearted and grateful people, he said.

Big investors James West recounted the story of Martin Jetpack thus far, from its beginnings in a Dunedin garage in 1984 till the present, having a controlling interest now held by the Chinese venture company Kuang-Chi. As the chief financial officer of Martin Jetpack, James related the circumstances that led to this new investment. When China’s President Xi Jipeng came to New Zealand last year, his delegation included principals of Kuang- Chi, all PhD-educated in the US and with more than one billiondollar start-up companies to show as their credentials.

From left: Workshop presenters Chris Tremain, Vicki Slater and James West, and host and chair Mark Lowndes

In the past, she said, the law was less important than social relationships. Business deals are still done on a handshake, and the law in China has taken time to catch up with its current international era.

Allow plenty of time to meet people individually, to build guangxi. It’s always about the relationship first and not the business deal, she said.

Then they handed over the money, agreed on the company’s development strategy aimed at commercialising the Jetpack, and left them to it.

Cultural comfort

She said the Chinese may feel it is entirely reasonable to change a contract shortly after signing it; they may think this shows trust in the relationship that the deal is based upon.

A new culture can always introduce unease, said chairman of the Bank of China, New Zealand – who is also a former New Zealand Cabinet Minister - Chris Tremain. He opened his presentation in fluent Maori to illustrate the case suggesting many of us are uncomfortable in the presence of the practices of a different culture.

The values of Kuang-Chi and Martin Jetpack, which is now listed on the Australian stock exchange, are closely aligned, James said.

For cross border contracts, the Western tradition is to lock down every last eventuality and possible liability. The Chinese approach is to allow for flexibility.

Kuang-Chi representatives decided not to invest the $25m Martin Jetpack was seeking earlier this year; instead they put in $50m.

BusinessPlus August 2015

He emphasised theirs was a unique experience, but one that demonstrated the possibilities from forming a partnership with a company such as Kuang-Chi with people who were young, energetic, Westernised and extremely well connected in China.

International TRADE

NZ to gain most from TPP An independent review of the economic benefits of the Trans Pacific Partnership (TPP) trade agreement has found that New Zealand, with a potential 2% bump in GDP, will be the country to benefit the most from the 12-member Countries agreement. Professor Peter Petri, a professor of International Finance at Brandeis University in the US, led an international team that has modelled the benefits of trade agreements stretching back to the 1980s. He found the potential economic benefits of the TPP to New Zealand were around $4 billion or 2% growth over current GDP, by 2020.

Expected GDP improvements resulting from three trade agreements – the TPP, RCEP and FTAAP

On most recently available figures the agricultural sector contributes around $9bn to New Zealand’s GDP while forestry generates around $1.4bn. Much of the focus in the debate around the TPP has been on the potential negatives, and that focus has largely overlooked the economic gains for New Zealand. Professor Petri and has team have analysed the outcomes of regional and trans-Pacific trade agreements among APEC members going back to 1983 to model the benefits of the TPP, as well as of the Regional Comprehensive Economic Partnership (RCEP) that is under negotiation and a proposed Free Trade Agreement across the Asia Pacific. Professor Petri believes that with the support of both the Senate and Congress in the US – recently gained by President Obama – the TPP is on track to be signed at the November APEC conference. However, the US political process means it may take another year to be implemented. We were pleased that New Zealand’s lead negotiator in the TPP talks, David Walker, was a recent guest at the EMA’s Policy Forum. While acknowledging the concerns raised around the negotiations, this leading official from the Ministry of Foreign Affairs and Trade assured EMA members that New Zealand’s interests were being well protected. EMA is regularly briefed on progress. Continued from p23 outperforming all expectations. And in its first month of entry into force of the NZ-Taiwan free trade deal, trade with Taiwan grew 37% when compared to December 2012. The bottom line is that no country stands to benefit more from free trade deals than New Zealand. This is because whichever way you look at it, our major export categories and our businesses of scale are from the agricultural sector and this is where the biggest tariffs and barriers to trade around the world have historically been.

The above graphic compares the sector gains in ASEAN-negotiated trade agreements since 1983, with those in US-negotiated trade agreements over a similar period. The ASEAN agreements are in red, with US in blue, and highlight the differences between the agreements around gains in various sectors. Sectors such as agriculture, environment, labour laws and commerce tend to make greater gains for all participating countries in the US negotiated agreements. The US is the major partner in the TPP.

Another positive spin-off of free trade deals that we have observed at ExportNZ, is companies are prepared to invest in new markets and are developing relationships for the long term if they have regulatory barriers removed and can compete fairly with the rest of the world. Modern trade is a two-way street, with our exporters being part of global supply chains on the supply side, but also on the import side, often requiring components or inputs from other countries to add to the production or manufacturing mix. Our negotiators have to hold firm to ensure the best outcomes for our

economy overall in areas like intellectual property, investor state disputes mechanisms, environment and health and safety. But they have proven competent at getting good results in the past, and can do so for the TPP as well or why would we sign the deal? If and when disputes arise with our trading partners they will need to be managed and all our FTAs include mechanisms for managing them. • Catherine Beard is Executive Director of ExportNZ of which EMA is a stakeholder. EMA has ExportNZ divisions for Auckland, Waikato and the Bay of Plenty. www.exportnz.org.nz

BusinessPlus August 2015

Member PROFILE

In our regular snapshots of EMA member companies, we describe the business of New Zealand Kettle Korn based in Mt Wellington, Auckland.

Traditional snack with new flavours, new markets Gourmet popcorn made by hand in New Zealand has become an increasingly popular choice for Kiwi families at rugby games, which maker New Zealand Kettle Korn is stoked about.

Originally Michael assumed this would be a little side business venture that would allow him to come back to NZ a few times per year. He says, “The original plan was to offer the product at markets and festivals only. We never intended to launch into retail because neither of us had any experience in that area.

The company’s co-owner and chief executive Trent Brock says, “We have been given an incredible opportunity to become an “official licensee” of NZ Rugby. “Our product met their very high level evaluation to allow us to launch a series of products featuring images and logos for the All Blacks. For instance, we have launched a line of All Blacks packaging and specialty popcorn tins. We see this new relationship as a huge opportunity to bring additional exposure to our brand.” Trent is keen to point out that kettle korn is popcorn originating from the US (where it has been popular for the past decade) that is traditionally lightly salted and slightly sweet, and crunchy. So one product flavor is “lightly salted and slightly sweet” and another is “caramel”, which is a light caramel with a dash of sea salt and a hint of vanilla. “And a new flavor is “sea salt”, is our first savoury option, which is also a healthier alternative to so many snacks and which comes in at less than 40 calories per cup.” It is for sale in all the major supermarkets (Countdown, New World, Pak N Save), and The Warehouse and some specialty food stores. Also on the horizon is an increased focus on exporting. The business will export about 10% of product this year, with a push to be much bigger in 2016. Interest is growing in Malaysia and China in particular. Success is due to consumers becoming savvier and looking for a more gourmet snacking option, Trent says. “We have had double digit growth every year. Development was easy, but handling growth was a challenge at times. “We slowed growth until mid-2014. We also

BusinessPlus August 2015

chose to not introduce our new flavours until we better understood how to guarantee quality while keeping up with demand. We developed better kettles that had the ability to pop more kettle korn at a quicker rate without sacrificing quality.” The four-year-old company has 10 staff including co-owner and chief financial officer Michael Howe.

US origins Michael is from the US. When he was in Auckland in 2010 as a trainer for a professional boxer, in less than a week he fell in love with New Zealand and knew he needed a reason to return. He met Trent and agreed to help train him to box, striking up a friendship. Michael also had a small kettle korn company in the US and realized that kettle korn was not available in New Zealand. The two had only known each other for two weeks when Michael approached Trent and asked: “Do you want to start a business together?” To Michael’s surprise, Trent jumped at the idea.

“But when selling at a car show, a buyer from a large cinema group said she loved the product and wanted it in all her cinemas. “We recognized this was an incredible opportunity, so within a month we had hired a great advertising agency to develop our packaging, leased a manufacturing facility and hired a production team. “We had our retail line on the market within 90 days of that original meeting.” Eventually NZ Kettle Korn increased the size of its kettles and bought a vertical form fill machine to weigh and seal the bags. “But we still measure the ingredients, and sift and quality-inspect by hand every single kettle. “Kettle Korn done the right way is done in small batches by people who are passionate about producing the best popcorn!” BusinessPlus asked the first thing that came to mind that was good about doing business in New Zealand. Trent says, “In the world of FMCG [fast moving consumer goods] everyone knows one another and it can make for getting things done much easier.” And what is the worst thing? “You are somewhat limited on the potential growth of a product. You must stay innovative and willing to release new products to stay competitive.” And their advice to someone who is in their first year of business: “Stay the course...if you believe in your product/business, eventually others will come around to it.”

Member PROFILE

Solo Wings: a passion for the fun of flying Solo Wings, a specialised aircraft servicing operation, has eight staff based in Tauranga catering particularly to the light sports aviation market. It maintains parachute planes and the gliding club’s tow planes, for example. But the company relishes the chance to take on the more challenging, one-off restoration projects as well, and they’ve undertaken many of them. “We enjoy the more complex jobs that other companies run away from. It’s a passion with us,” says Solo Wings director Colin Alexander. It’s a privilege to work on the restoration of older aircraft, he says. “The Mustangs and de Havillands; they have a lot of history behind them.” Colin trained as an aircraft engineer and mechanical engineer, and spent 22 years in

search and rescue in South Africa before moving here. “But the challenge of the latest aircraft is always interesting,” he says. “We work with carbon fibre, the latest fuel injected engines, and in cockpits full of computer screens. It’s why I’m going to Europe next month to do a course on jet turbines for planes that can’t be serviced here at present.” Solo Wings has developed a software system to track their client’s maintenance schedules, “to reduce the number of surprises” clients spring on us, Colin says laughing. But also in the hope it may become a second revenue stream. “We have a saying in our business,” he says, referring to the extent of documentation required to demonstrate aircraft maintenance meets the exacting international standards demanded: “If

the weight of the paper doesn’t equal the weight of the plane it won’t fly.” Solo Wings’ philosophy puts compliance and safety paramount. “It’s the way we attract customers,” Colin says, “to show them we treat their aircraft very well.” Solo Wings also services aircraft and roto craft offshore in Australia, Fiji and elsewhere in the Pacific. “We work in the fun side of flying, and we’re very fortunate to have cheerful clients, but never know what we’re going to be doing from day to day.”

Truck builder invests Sixty-two years on from when his father and grandfather started the business, Steve Hale is working quietly on implementing an expansion strategy for the family business in Auckland, Hale Manufacturing Ltd. The 40-strong company in Mt wellington suburb makes and installs customised fit-outs for truck and light commercial vehicles, and also fabricates toilet and washroom cubicles. Steve says the company has just invested in another $200,000 CNC (computerised) machine to further automate its Wellington motor body plant. In fact the company began life in Wellington with a handsome fit-out for a Griffins delivery van. When the business made the move to set up the Auckland operation about 50 years ago, Hale Manufacturing expanded into supplying the construction components. Today it makes all the carrying capacity

Hale Manufacturing managing director Steve Hale

typically seen on the backs of trucks: refrigerated units, flat decks and curtainsides, working alongside lease companies and fleet managers supplying major firms like Transfield and Veolia.

“The way we do it is we focus on what the end user wants and needs, using our knowledge of what will work,” Steve says. “We have a market we operate in and if we can expand in that market and deal with the same people we know, our growth will be a lot smoother and more certain.” To push growth onwards on the construction side Steve says the company will soon be engaging an architectural business development manager to expand

beyond toilet cubicles, where the main clients are schools and sports clubs. Hale Manufacturing also has major commercial work on the go such as in the new Fonterra building and for the Vero refit. Steve says the company has trouble finding tradespeople skilled in operating CNC equipment but takes the view that if they can find a person with the right attitude they are happy to train them with the skills they need. He adds the Christchurch building boom never eventuated for them – instead it’s a ‘slow burn’. “We are certainly looking to grow the business further,” he says. Within five years he expects they might well have outgrown the constraints of their present premises and be looking for ways to split off another operating division. BusinessPlus August 2015

Member PROFILE

In our regular snapshots of member companies we describe the family firm Glacier Investments in central Auckland. Choie Sew Hoy, highly successful gold miner and entrepreneur, in ceremonial attire for the occasion of being made a Lord by the Emperor of China.

Donald Sew Hoy

he was to be awarded an OBE for services to New Zealand industry in 1980, the first Chinese either here or Australia. After five years learning English and western culture, Donald’s father Hugh returned to China to marry and manage the family’s trading company base near Hong Kong.

The extraordinary Sew Hoy story keeps on surprising The illustrious history of Glacier Investments is belied today by its modest owners, Donald and Jennie Sew Hoy. Their story goes back to the Otago gold rushes when Donald’s great grandfather, Choie Sew Hoy, sailed from Guangzhou in 1869 seeking his fortune - first in Australia then onto New Zealand. Find it he did. Choie Sew Hoy became renowned as the most successful goldminer of his time, and as an entrepreneur. He had the first gold dredge designed and built in Dunedin for the Shotover. The Guinness Book of Records notes his dredge hauled the most gold from that river. Choie Sew Hoy was recognised with a Lordship from the Chinese Emperor. Ever since then the Sew Hoy family have been synonymous with Dunedin.

BusinessPlus August 2015

Because the New Zealand government’s ‘white policy’ of 130 years ago prohibited Chinese goldminers from bringing their families with them, although the Government benefitted handsomely from a weighty gold tax, the men returned to China every so often. Choie Sew Hoy had two sons, Kumyok Sew Hoy, Donald’s grandfather, and Donald’s uncle Kumpoy. Both followed in their father’s footsteps to work at his goldmine at Nokomai, south of Queenstown.

When the Japanese invaded, Donald’s mother, Fanny, persuaded Hugh to return to Dunedin leaving his family behind, four months before Donald was born. The unfair prohibition against Chinese women and children was still in force. But after the war Hugh arranged passage for his family of by-then six children to leave Hong Kong, bound for Wellington where Donald met his father for the first time. Donald’s wife Jennie emigrated with her parents from China as a one-year-old, and lived in Wellington, then worked in a law firm before the two married. Donald and his family kept alive the clothing business established by his father for 50 years, despite the elimination of tariffs on imported textiles leading to the closure of their original manufacturing operation. At one time Sew Hoy & Sons Ltd employed 700 people in New Zealand.

Still a family business Now the Auckland-based family company, Glacier Investments, has been contract manufacturing in China for 32 years, placing to order for such as The Warehouse and Farmers Trading Company.

On returning to Guangzhou, Kumyok Sew Hoy established a thriving trading business linked to the family store at 29 Stafford Street, Dunedin, a heritage building to this day, established in 1869.

It’s still very much a family business. Working alongside Donald and Jennie are three daughters and two sons-in-law in various management roles.

Donald’s father Hugh, travelled from China to New Zealand in 1918 when he was 17 to work in the family business. Much later

In 2000 Donald and Jennie relocated from Dunedin to Auckland to assist the growth of their business and be close to their three

Member PROFILE “I like to give back as I can remember when I too was a poor Chinese boy way back in war-torn China. With my brother Duncan we waited in line for the Red Cross to give out food and clothing.”

daughters, Angela, Debbie, Vicki and their families. Glacier Investments contracts to a lot of factories in China and vets them carefully: 32 in all in China and Bangladesh, manufacturing over three million garments a year, and instrumental in employing over 2500 workers. “They have a good efficiency level so there’s no need for us to set up garment factories ourselves,” Donald says. “I make sure they don’t underpay staff, and their amenities are good, and according to international standards.”

In recognition of their success, Donald was named this year’s Senior New Zealander of the Year in the Kiwibank New Zealander of the Year Awards. An Awards photograph of him and his family featured on the front page of the Chinese Herald. A full-page announcement of the six Awards category winners ran in the Sunday Star-Times.

Glacier Investments Managing Director Donald Sew Hoy with his Senior New Zealander of the Year Award, surrounded by his family (l-r): daughter Angela, Financial Controller; wife Jennie, Fashion Director; son-in-law Richard Leung, Manager - Shipping and men and boys wear; son-in-law Edward Willis, lawyer; and daughters Vicki, and Debbie, General Manager.

Donald has always been active in the wider business community, first as an early President of the Otago Southland Manufacturers Association and serving many roles in the clothing industry. During the NZ/Australia NAFTA negotiations in the 1980s, which freed up trans-Tasman trade, he was a spokesperson for the apparel industry, and in 1971 Sew Hoy & Sons won a coveted NZ Export Award. Then, from 2006 came New Zealand’s free trade agreement (FTA) with China. The government consulted with Donald extensively as he was by then doing much business importing both here and to Australia.

Both Donald and Jennie have been awarded as Sapphire Paul Harris Fellows by their Rotary Club and both equally awarded Queens Service Medals in 2008 soon after the NZ/China FTA signing. Their other community work includes the NZ Chinese Association, and NZ Asian Leaders, with Jennie also on the Committee of Auckland Chinese Community Centre. Donald says, “We want to raise the status of Chinese in New Zealand. We enjoy helping those less fortunate because we love New Zealand and we are New Zealanders.

Glacier Investments Ltd was also a finalist in this year’s HSBC NZCTA NZ China Business Awards in the Mainfreight category “Award for Excellence in Export or Import,” and one of three finalists for the top award. But the surprise for him at this year’s HSBC NZCTA Awards was being awarded “The Cathay Pacific Special Relationship Award” for the Outstanding Contribution by an Individual to the New Zealand China Relationship through success in their own industry.

Chinese heritage valued He and Jenny were subsequently invited by Prime Minister Helen Clark to Beijing to witness the signing of the NZ/China FTA on April 7, 2008. “That was the peak of our business careers, to return to Beijing with our Prime Minister and see how China had improved both economically and socially over all these years - it was just unbelievable,” he says. The Sew Hoys are also avid fundraisers for the community. Recently at their Rotary Club, Donald and Jennie presented a cheque for $35,000 to the Starship Children’s Hospital plus donations to other charities.

Donald Sew Hoy seated next to Sir Stephen Tindall (New Zealander of the Year 2015) at the Kiwi New Zealander of the Year Awards earlier this year. BusinessPlus August 2015

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