BusinessPlus May 2015

P u b l i c ation of the Employers & Manufacturers A s s o c i a t i o n I n c

Issue 125 – May 2015 $6.30

BusinessPlus news | advice | learning | networking

Our theme park tops world for staff training Bribery and corruption: Why you need a policy

Inside • The big omnibus tax bill explained • Tens steps for entering Australia • NZ wins at robotics • Why the RMA must change

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On the cover...

BusinessPlus is published by :

Rainbows End has won several international awards recently, and an unprecedented uplift in business.

Their story is on p26

The Employers and Manufacturers Association (Northern) Inc 159 Khyber Pass Rd, Grafton, 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

CONTENTS

Manager, Advocacy & Industry Relations:

Advocacy

Mark Champion

04 Discussing business with regional

Manager EMA Learning: David Foley

26 MEMBER NOTICEBOARD:

council heads

Theme park crowned for worldbest staff training

Manager, Strategy & Enterprise:

05 The RMA must be changed

advice

Mauro Barsi

06 Obituary: Sir John Ingram, leader,

12 EMPLOYMENT CHAT:

gentleman and good bloke

Waikato

07 Registrations open for 2015 IBM

Denis Quigan 07 823 9311

mob 027 203 0694

Russell Drake 07 838 0018

mob 021 686 621

Kenexa Best Workplaces Survey

14 in the lobby: Women in business

Bay of Plenty Terry Arnold 07 575 8401

14 Migrant exploitation Bill now law mob 021 662 656

Rotorua / Taupo / South Waikato / Whakatane

Editor Gilbert Peterson Ph: 09 367 0916 gilbert.peterson@ema.co.nz

08 New Zealand schools win VEX

priorities

11

Former employer landed with $168,000 bill

19

Making tax simpler

Mary MacKinven

22 Financing sales support in Asia

mary.mackinven@ema.co.nz

23 Letter from Australia:

25

A 10 step plan for entering the Australian market

Ripeka Mikaere

25 Auckland Export Award finalists

Advertising Sales

features

Colin Gestro (09) 475 9313

10 retirement: Funding your

ISSN No. 1176-4953

Big, but how beautiful?

09 Tax survey uncovers investment

export

colin@affinityads.com

needs a bribery and corruption policy

Robotics World Excellence Awards in both High School and University Divisions, again

Writer

Designer

14 COMMENT: Why your company

20 TAX TIPS: The Omnibus Tax Bill:

news

Clive Thomson 07 348 0334 mob 0274 372 808

BusinessPlus

Covering for someone on parental leave, when someone makes mistakes, repeatedly‌ dress code!

found

15

retirement options

24 Auckland Export Awards 2015: You’re invited!

8 22

ADVOCACY at work

EMA’s team of advocates delivers your concerns as the collective voice of business in the region to Government and local councils. Your membership of EMA gives your business that voice and adds strength to our collective representation. In addition, you benefit from the lobbying work of BusinessNZ of which EMA is the biggest shareholder.

Discussing business with regional council heads EMA chief Kim Campbell regularly discusses business issues with local council chiefs in their regions and what the councils’ plans are to meet these needs.

Along with EMA’s manager of advocacy Mark Champion, Mr Campbell recently met 12 heads of Bay of Plenty and Waikato regional and district councils. Also attending was the chief executive of Priority One in the Bay of Plenty.

They visited member organisations at their workplaces, and called on Minister of Transport Simon Bridges who is MP for Tauranga.

More talk

EMA chief Kim Campbell and senior managers were pleased to host the Minister for ACC Nikki Kaye (pictured) and Auckland Council chief executive Stephen Town for talks about their respective areas of responsibility.

Health & Safety

EMA manager of industry relations and safety Paul Jarvie met the Minister of Health and members of the medical profession to discuss the health and safety law under development.

Waikato

Our Waikato executive committee hosted Hamilton Mayor Julie Hardaker at its April meeting to go over issues of interest to business.

The committee is reviewing city council documents on proposals for managing the 16km of Waikato River that runs through the city, the Hamilton Plan for the next decade, the regular review of the 10-year Long Term Plan and Hamilton Gardens Development Project that proposes creating four more themed gardens on its river’s edge site.

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Diverse visitors on the record

We also met a Ministerial-led delegation from Lithuania, an efficient freight and access point to Europe where English is widely spoken.

We hosted visits from the Ambassador of Belarus, Mr Viktar Shykh, and HE David Taylor who is the Designate Head of Mission to the EU and NATO, and Ambassador to Belgium.

Dr Jo Cribb from the Ministry of Women came in to discuss a closer association and training opportunities for women.

Senior EMA managers and the CEO lunched with Phil Goff, MP for Mt Roskill, where the discussion covered all the big Auckland issues: Auckland transport, the port ownership, rating including the business differential.

Members of a Missouri Rotary Group from the US heard a presentation by Kim Campbell on the New Zealand economy.

Dialogue in exchanges of this type allow us to raise business matters while learning more about business opportunities and to promote New Zealand’s international and local capability. These small personal meetings develop relationships also ensure each party can have quick access to information in the future.

Commenting in the media

We were phoned for comment on the issue of employers offering zerohour contracts, when that blew up in the media.

Chief executive Kim Campbell said Restaurant Brands’ agreement to scrap the use of zero hours was due to skills shortages. He said, “Even for relatively low-skilled jobs, it’s difficult to get people who are reliable and qualified to do the work.

Frankly, I think this is a good sign.”

Mr Campbell said if zero hour contracts were required at all, sensible employers would work

with staff and unions to come to agreement.

We also commented on Auckland Council’s 10-year Long Term Plan, saying it does not allow adequately for the city’s expected population growth.

The Plan falls short of providing well for the additional 400,000 houses required over the next 30 years.

Without increasing the supply of land for housing outside the Rural Urban Boundary (RUB) there is little chance the Plan’s housing goals needed for another 700,000 people to live here can be realised.

While EMA supports intensified housing within the RUB, it is also clear the RUB needs to be rolled back to allow more greenfield residential subdivision.

If this is not done the region’s economic growth could grind to a halt as people find they cannot afford to live or work here.

We also said in our submission: • The Council should take advantage of falling costs, and drive for greater efficiencies to hold rates rises to no more than 3% a year, not 3.5%, over the term of the Plan.

• We support the construction of the City Rail Link to commence in 2018-19.

• We strongly prefer transport funding to be from asset sales and central government.

• We recommend the Uniform Annual General Charge be set at an average of $900 per ratepayer.

• We request the business differential be abolished.

• We note the Council ownership of the Ports of Auckland is reducing its value, and that the Council is hopelessly conflicted in its role as owner and also as the issuer of consents for the Port’s development.

ADVOCACY

By Kim Campbell

(op ed re RMA – 1/4/2015)

The RMA must be changed With the changes planned for the Resource Management Act called recently yet again into question I have become very concerned for our future.

But change the RMA must. As presently applied its arcane rules and excessive costs are holding Auckland in particular, and the country in general to ransom for no environmental gain and at a price those creating our wealth can no longer afford. The RMA has become a serious impediment to even measured, environmentally sensitive development.

But as Dr Jan Wright, the Parliamentary Commissioner for the Environment, has pointed out, New Zealand faces a classic ‘environment versus development dilemma.’ With two such fundamental issues at stake a broad consensus across party lines is essential if we are to advance with certainty that any changes will not be overturned at the next election cycle.

To win such a consensus we need to be practical, to remain focused on making the changes to the RMA that can be made and will stick. We need to do this to keep the country’s growth moving and to house the 50,000 new migrants arriving here each year.

We already have the basis for this consensus. People across the political landscape want to see the RMA changed. Labour says they will look at ‘sensible’ changes, the Maori party says 90 per cent of the changes proposed are ‘quite good’ and it would support them though ‘not agree to anything that put the environment at risk’.

Peter Dunne agrees there are changes that can be made and ‘we should be talking about them.’

Environmental Defense Society chair Gary Taylor agrees with many of the proposed changes while saying it’s a good thing the government now has to talk to more parties ‘because that will make the changes at least bi-partisan and hopefully multipartisan’.

“We need to be practical, to remain focused on making the changes to the RMA that can be made and will stick... ...The urgent issue now is to agree on what changes can be made from the minister’s original statement of intent on January 21st this year, and which parts have to be jettisoned”

Its welcome news to hear Environment Minister Nick Smith say he remains very committed to the reform programme and to get a bill into Parliament this year. But the minister is right to note the RMA is an environmental law, not an economic development one.

The urgent issue now is to agree on what changes can be made from

the minister’s original statement of intent on January 21st this year, and which parts have to be jettisoned.

As Property Council chief executive Connal Townsend has said, the procedural parts of the reforms are the real key, not changes to Sections 6 and 7 which caused the hoohaa after the Northland byelection result came in.

Other interests may want to hold out for changing those statements of principle in the Act but its clear they will have to wait for another day.

What is needed right now is an end to the escalating land and resource consent costs caused by arbitrary limits placed on land for housing, and the local council time frames taken to issue consents.

Everyone agrees on the need to build affordable housing faster than new demand for it grows.

Other process issues we have identified that are open to change and where there appears broad consensus to do this, include: • The addition of natural hazards within the Act’s provisions.

• For the Act to be applied consistently nationwide • Allowing the issuing of consents to become contestable • The acceleration of plan making and consent issuing • To give greater weight to property rights • Recognizing electronic data transfer for simplicity and speed.

We call on the government to swallow its pride and start urgent, constructive work in Parliament to expedite those changes that it can achieve to ensure the RMA is again a law everyone respects.

Kim.campbell@ema.co.nz BusinessPlus

5

NEWS

Obituary: Sir John Ingram, leader, gentleman and good bloke Former long standing council member of the Auckland Manufacturers Association and president from 1989 to 1991, Sir John Ingram, passed away on April 1st. He was 90 years.

Sir John was best known as the first chief executive of New Zealand Steel Ltd from 1969. In this role he worked closely with local Maori as the company negotiated arrangements to source iron sand for the steel mill.

He became widely respected by all for his open, honest and fair approach throughout the negotiations and in all his business dealings.

His comments in Wealthmakers (A history of the Northern Employers’ and Manufacturers’ Association) included a public venting of frustration in less than his usually diplomatic language.

The context was the Labour Government’s deregulation of the economy at breakneck speed just after the 1987 share market crash that ultimately saw 80,000 employees shed from New Zealand’s manufacturing

operations in the six years prior to 1991. Tariffs were slashed regardless of the state of the sector and anything the association said.

But Sir John, already appointed a CBE for services to manufacturing and engineering, said that practically camping on the Government’s doorstep to try and persuade it that the sector needed constructive help rather than a policy of studied neglect was to no avail.

He said publicly: “[We] were ignored and unjustifiably portrayed, in an orchestrated manner, as being negative and regressive.”

Sir John was born in 1924 and educated at Nelson College and Canterbury University College where he graduated with a Bachelor of Engineering in mechanical engineering in 1950.

Sir John held directorships at major firms including Feltex, IBM, Pacific Steel and the National Bank, and was a member of the University of Auckland Council for 18 years.

After retiring he became a member of the Waitangi Tribunal, the Auckland Area Health Board, and a trustee of the World Wildlife Fund and the Antarctic Heritage Trust.

Ingram was elected a Distinguished Fellow of the Institution of Professional Engineers New Zealand in 1997. He was also a Distinguished Fellow of the Institute of Directors in New Zealand, a Fellow of the Institution of Mechanical Engineers and a Fellow of the Australasian Institute of Mining and Metallurgy.

Sir John was knighted in 1994 for services to engineering and business management.

He is survived by his wife and soul mate for 63 years, Lady Rosemary, three daughters and their families.

In the words of former employee for many years, Chris Pendleton, “Sir John was a leader of men, a gentleman and a good bloke.”

Mondayisation drives spike on calls to EMA’s AdviceLine EMA’s AdviceLine fielded a spike in calls on the Mondayisation of ANZAC day in April, the first time the holiday has transferred to the following Monday.

Calls on the leave entitlements involved shot up 10% higher than last

year to account for 714 in April, nearly a quarter of all calls in the month.

In all, the AdviceLine team responded to 3069 calls and emails in April; 88% of them were answered within 15 seconds.

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BusinessPlus

Inquiries on other topics were within usual parameters for the time of the year and included those on employment agreements (13%), discipline and termination (10%), and ACC and OSH (4.6%).

www.acepay.co.nz

NEWS

Registrations open for 2015 IBM Kenexa Best Workplaces Survey Understanding what engages your people, recognising their strengths and determining the drivers of their performance is critical knowledge for any business.

Last year over 220 organisations determined to find out those answers participated in the IBM Kenexa Best Workplaces programme while identifying what makes a great place to work and celebrating it.

The programme is New Zealand’s largest annual workplace employee engagement survey. Its also the most definitive measure of claims about ‘employer of choice’ and ‘best employer.’

Studies based on 16 years evidence show net profit, staff absenteeism and turn over reflect employee levels of engagement between organisations.

From now til the end of August you have the chance to ask your employees to complete a confidential survey about your

workplace, and in that New Zealand business return receive valuable leaders place on engaging feedback identifying their employees,” said both positive aspects of Leighton Abbot, Senior your workplace and those Consultant, IBM Smarter where work is needed.

Workforce for New Zealand.

Organisations that “The insights organisations achieve the best survey receive from the survey help results are celebrated as them better define the things the ‘Best Workplaces’ in of most importance to their Leighton Abbot, New Zealand—as judged Senior Consultant employees and ultimately by their employees. improve business outcomes Last year EMA member VTNZ through engagement.”

EMA is proud to support the took out the top honour. This Best Workplaces programme and year’s winners and most improved we look forward to again seeing organisations in five categories will many of our members recognised be announced at the IBM Kenexa at the popular awards evening.

Best Workplaces Awards Evening on 5th November.

“The strong level of participation in the Best Workplaces programme To find out more, go to www.bestworkplaces.co.nz demonstrates the importance

Register now at ema.co.nz/events/rogermartin

BusinessPlus

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NEWS

New Zealand schools win VEX Robotics World Excellence Awards in both High School and University Divisions, again For seven years New Zealand has gone to the World VEX Robotics Championships and returned as World Champions every year.

VEX is the biggest and fastest growing classroom based robotics competition in the world and New Zealand is at its zenith.

More than 11,000 teams compete from 33 countries to attend the World Championships - only 450 make it to the High School Championships.

To win is magnificent and cannot be overstated. Here is what our teams achieved.

Glenfield College

•

World Excellence Award, the Supreme Award at the VEX High School World Championships.

Lynfield College

• •

High School World Champions who successfully defended their title.

Science Division Champions

Auckland University

•

• • •

World Excellence Award, for the second time (they won it last year as OYES), the Supreme Award the VEX U World Championships Robot Skills World Champions Programming Skills World Champions 2nd in World Finals

Check out: VEX Flickr photos https://www. flickr.com/photos/vexrobotics/ sets/72157651523204277/ New Zealand in parade https:// www.flickr.com/photos/ vexrobotics/16963955357/in/set72157651523204277

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NEWS

Tax survey uncovers investment priorities EMA’s 2015 tax survey has revealed a marked preference for where businesses would invest further should the company tax rate be cut.

The survey asked if the tax rate was reduced to say 20% how would they re-invest any extra revenue that they would be incentivized to retain in the business? (Given most dividends paid out attract a tax rate of 30% or more).

45% said their top priority for retained earnings would see them invested on increased skills and training with 33% nominating this their second preference.

26% said they would invest in market development including export markets as their top priority, with 31% saying it was their second highest priority.

In contrast just 12% rated R&D their number one priority with 35% rating it their number two priority.

Are you happy with the present tax treatment of fringe benefits?

Yes 54%

Fringe benefit tax

No 46%

Respondents were nearly evenly split on whether or not they were happy with the tax treatment of FBT - 54% were ok; 46% unhappy.

Comments were almost unanimous that the tax is far too complicated, time consuming and unfair. They included: • Too complicated, too onerous • The tax rate is far too high, and the time to process calculations excessive • The rules are too complicated and expensive. There is still a difference between licences for carparks subject to FBT and leases that are not.

• For loss companies the FBT rate

•

• •

• • •

• •

is very high as the amounts are effectively non deductible.

Too complex which means we do not bother claiming a legitimate business expense. Vehicle rates too high.

The value of cars depreciates quickly but the FBT rate doesn’t reduce. This has to be fixed.

We give away movie tickets and dinner vouchers etc as rewards and it annoys me that I have to spreadsheet them.

The cost of compliance means the benefits aren’t really benefits; they are a liability We have removed everything that could require FBT to be calculated - it was all too hard We can spend any amount on keeping our staff safe but not on keeping them healthy. Dentistry, fitness memberships, quit smoking programs etc. We could ease road congestion and reduce our carbon footprint by providing company travel to work transport if it didn’t attract FBT. A lot of work for no real gain The beneficiary should pay the tax not the business

Provisional tax

57% of respondents rely on a reminder from their accountant to remember when an upcoming provisional tax payment is due!

And the most difficult time to pay provisional tax due to cash flow constraints was said to be the January –March period (59%).

Gripes about the provisional tax spanned the following: • Payment dates do not align with cash flow or business cycles (36%) • Payments are difficult to accurately predict (36%) • IRD interest and late payment penalties if you underpay are harsh (49%) 80% said they found the idea appealing, either a lot or somewhat, that a future New Zealand tax system might allow businesses to spread their provisional tax payments across up to 12 months.

The survey drew 195 responses in early April.

If the company tax rate was reduced to say 20%, how would your business re-invest the extra revenue retained in your business?

Q: R&D

12%

Top priority

35%

Second

29%

Third

24%

Fourth

Q: Skills and training Top priority

45% 33%

Second

20% 3 %

Third

Fourth

Q: Market development incl. exporting

26%

Top priority

31%

Second

28% 15%

Third

Fourth

Q: Other

27% 7 %

Top priority

Second

22%

Third

44%

Fourth

BusinessPlus

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RETIREMENT

By David Shannon BusinessPlus Series: This is the fifth in our series on Retirement Planning. In this article, we look at the importance of financial planning in funding our retirement.

Funding your retirement options When thinking about retirement we often dreams of things like travel, gardening, community service, sports and other leisure. We don’t always think about what retirement will cost, or how we will pay for it. Unfortunately, many people fail to make adequate financial plans to retire on, and the first principle to take on board is that Government superannuation is most unlikely to provide the retirement lifestyle desired.

We are all most likely will need to save ahead.

Can we afford it?

Most people find their total spending in retirement is less than when they were working but it depends. Recent surveys indicate that, for a modest retirement lifestyle, a couple will spend $30,000 a year or for a comfortable lifestyle, about $57,000 per year. These levels are likely to be less than when you were working, but can you afford them without a regular wage or salary?

From 1 April 2015 New Zealand Superannuation for a couple rose to almost $34,000 per year before tax, or around 61% of the national average weekly wage. For a solo person living alone the amount is $22,500 a year. The gap between these numbers and those above is obvious. You will need to prepare financially this time of your life.

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A financial plan

A financial plan sets out the retirement lifestyle you hope to achieve and how you expect to fund it. It may include investments, a supplementary superannuation scheme – employment based or Kiwisaver - disposal of property, family contributions, insurances and other factors. You can do your own planning, but many people seek advice from a qualified financial planner.

Unless you are in fact a financial professional of some sort you should not be reluctant to ask someone else for help planning your financial affairs.

When to seek advice

Timing often catches people out.

Building a retirement income takes time and resources which must be considered well in advance. Beginning such planning as much as 20 or even 30 years before retirement is a wise strategy.

Personal investment strategy

There are three issues to consider when determining your investment strategy: Time: The time your money or assets are going to remain invested before you actually access them. If we are going to live into our eighties or nineties, we need a long-term strategy for our assets, often including our home as our primary asset.

Investment volatility: How sensitive are you to the value of your investments going up and down?

Everybody loves it when the value of their wealth and investments go up, but how do you feel when values fall?

Diversification: Spread your resources to minimise investment volatility and reduce risk. The principle is “not to have all your eggs in one basket”.

A qualified financial planner will help you consider these issues and identify the best strategy for your means and temperament.

In summary

A range of financial tactics is available to help achieve your retirement goals.

They may well call for the help of a qualified financial advisor. The bottom line is to start planning for retirement well ahead of your retirement. Plan ahead and prepare for this time.

In our next issue we will look at some of the legal issues: wills, executors, trusts, powers of attorney, etc. in managing our retirement.

For more information on Retirement Planning and the availability of Seminars for your employees, refer to the website www.pretire.co.nz or email rpseminars@xtra.co.nz or phone 04 567 7512.

advice

By Matthew Dearing, Senior Solicitor, EMA Legal

Employer landed with $168,000 bill People sometimes do strange things when they leave their employment, particularly if they are leaving because they are unhappy or feel they have been forced out.

People vent such frustrations in a variety of ways, and sometimes, if the former employer discovers the former employee has been degrading the company (or its employees) as part of their ‘venting’, they may want to respond.

However, as a recent landmark case demonstrates, the repercussions for employers who take vindictive action against a former employee can be severe.

After a five-day hearing and a threeyear battle, the Human Rights Review Tribunal ordered NZ Credit Union Baywide (NZCU Baywide) to pay former employee, Karen Hammond, $168,070.88 in damages for a breach of her privacy. The Tribunal found the breach had caused her severe humiliation, loss of dignity, injury to feelings and harm to her future career prospects. Further orders included requiring NZCU Baywide management to undertake training in relation to their obligations under the Privacy Act. The background: On 31 March 2012 Ms Hammond uploaded to her Facebook page a picture of a cake made by her for a private dinner party held that evening. The cake was for a close friend of hers who had recently resigned from NZCU Baywide.

The party was attended by 10 close personal friends of Ms Hammond; five were current employees of NZCU Baywide.

What would otherwise have been unexceptional was transformed by two factors. First, the top of the cake had been iced with the words “NZCU F**K YOU” while the side of the cake bore the word “C**T” in pink icing.

The privacy setting on Ms Hammond’s Facebook page meant only those accepted by her as “friends” had access to the photograph.

Second, NZCU Baywide gained access to the Facebook page (its HR manager forced a new employee who was a friend of Ms Hammond to access the photograph for them), and a screenshot of the cake was taken.

The screenshot was then distributed to multiple employment agencies

by NZCU’s HR manager in the Hawke’s Bay area by email, which,

“Raising a personal grievance under the Employment Relations Act 2000 is not the only avenue for a former or existing employee to seek remedies from an employer”

along with contemporaneous phone calls, warned against employing Ms Hammond. At the same time the chief executive of NZCU Baywide sent an internal email to staff disclosing information about the circumstances in which Ms Hammond had earlier resigned from NZCU Baywide. NZCU Baywide also placed severe pressure on Ms Hammond’s new employer to terminate her employment.

An effort was then made to terminate Ms Hammond’s new employment and after business was halted for three weeks between the two companies, she decided her position was untenable and resigned on 18 September 2012.

Ms Hammond was then unemployed for 10 months during which time she had to endure several humiliating job applications well beneath her level of skill and experience. She believed her career was in tatters, and suffered from stress and anxiety.

In making the large damages award, the Tribunal noted: “The context shows that against

a background of hostility to Ms Hammond, the making and photographing of the cake led to a sustained campaign by NZCU Baywide to inflict on Ms Hammond as much harm and humiliation as possible by ensuring she could not be employed in the Hawke’s Bay area (if not further afield) and to secure her dismissal by her current employer.

In these circumstances significant if not severe humiliation, loss of dignity and injury to feelings followed.

Causation could hardly be said to be in doubt.”…

“The facts of this case illustrate in dramatic terms the reasons why the information privacy principles were enacted by Parliament in the Privacy Act. The unrestrained use of personal information can cause devastating, if not irreparable harm to an individual.”

While this case involved an unusual set of facts, it serves as a reminder to employers that raising a personal grievance under the Employment Relations Act 2000 is not the only avenue for a former or existing employee to seek remedies from an employer.

The level of damages awarded is arguably far more than the Employment Relations Authority would have potentially made, and this may lead to employees, depending on the factual scenario, opting to pursue matters in the Human Rights Review Tribunal.

In any event, this case makes clear that breaches of the Privacy Act will be taken seriously and that employers need to ensure they comply with the requirements of the privacy principles or potentially face heavy consequences.

• Matthew Dearing is a Senior Solicitor at EMA Legal matthew.dearing@ema.co.nz BusinessPlus

11

EMPLOYMENT CHAT

Covering for someone on parental mistakes repeatedly… dress code!

My chief financial officer is going on parental leave and I want to make sure that staff direct any queries to the acting CFO about their pay etc, in her absence.

How do I ensure this in our small firm, as she is keeping her work cell phone and is therefore contactable? - Sophie

“The (parental leave) payments are made on the basis that the employee is on leave and if they do any work it will affect their entitlement to the payments”

Dear Sophie It is not uncommon for employers to provide phones and cars and other benefits for an employee on parental leave.

It is also not uncommon for employers to agree that an employee on parental leave can work reduced hours before returning to work permanently.

But everyone should be clear on how any agreement will operate and what that means in terms of the CFO’s privacy.

When an employee is on parental leave they are on leave and cannot be expected to work.

It is especially important they do not work for you if they are receiving paid parental leave from the Government

(available to eligible parents for 16 weeks from the birth or adoption).

The payments are made on the basis that the employee is on leave and if they do any work it will affect their entitlement to the payments.

For the remainder of their leave from your employment (for up to 52 weeks) you have to hold their job open for them, but you are not obliged to pay them during that leave period (unlike holiday/annual leave which you do have to pay, for example).

An email or other notice to staff should spell out these details in a friendly way but without disclosing the private terms and details about the CFO. The acting CFO needs adequate back-up so s/he doesn’t have to contact her for help, either.

I have a management team member who constantly refuses to correct their work when mistakes are pointed out from others who report to them. The negative effect on our reputation, though hard to measure, and the lowered morale on an otherwise excellent junior employee has got to stop. Is this a performance management issue? – Billy Dear Billy Yes it is a performance issue when someone repeatedly makes errors and can’t be corrected, whatever their status in the organisation.

Some people are unable to do certain tasks accurately, such as spell! So we find ways to help them overcome their shortcomings (thank goodness for Spellcheck!) But when there is a deliberate refusal to use the tools available, such as from the wellmeaning oversight of someone who has the necessary skills, then this is insolent behaviour.

You need to take the manager aside and confront them with the evidence you have of their mistakes. Try to find

Advice and Support when you need it!

We’ve got a team of advisors, lawyers and consultants who’ll do more than take the case - they’ll help you build a workplace for the future.

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Don’t just get information – get advice you can rely on from industry specialists.

A library of knowledge, tested in the courts and all in one place.

A free, confidential telephone service providing employers with up to date, direct and practical advice.

Our member only resources allow you to download templates for all the difficult jobs that face employers - like Employment Agreements and OH&S.

Free call AdviceLine, NZ 0800 300 362, AU 1800 300 362 or visit our website, www.ema.co.nz

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EMPLOYMENT CHAT

leave, when someone makes out why they resist being corrected and what help they would prefer if it was available. The manager is expected to keep personality and ego out of the equation and behave in a professional manner, or otherwise I would say they are not management material!

Follow procedure fairly, make sure you have the facts and take an unbiased first step to correcting the situation. If the matter cannot be resolved it will escalate to disciplinary action.

Dress code. It’s in our policy that it’s no jeans but people still keep wearing them. I know some people don’t understand but all staff might be seen by customers and stakeholders and I cannot risk of a casual sloppy look being noticed. Help! – Gina Dear Gina As you are so sure jeans are a bad look for your company image? Still you do need to remind people of the policy and why it matters.

Perhaps jeans are not ok, but should the overall effect of an outfit need to

“Yes it is a performance issue when someone repeatedly makes errors and can’t be corrected, whatever their status in the organisation... make sure you have the facts and take an unbiased first step to correcting the situation” be considered? Taking into account tops and accessories.

Of course it is over to you and in many contexts jeans are not considered suitable wear. However much fashions change, impressions do count!

• 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), 8am-8pm 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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comment

Why your company needs a ‘It takes twenty years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently’ – Warren Buffett Would you willingly: • Risk your company’s good brand and reputation after working so hard to build it, and rely on it for all your business operations?

• Turn down a lower cost of doing business?

• Jeopardise the loyalty and long-term commitment of your highly-valued management and staff?

• Destroy the loyalty and goodwill of your customer base?

A key to avoiding these critical business pitfalls can be as simple as: • Adopting a real commitment to ethical business, • Making transparency and integrity a core policy for your firm, • Developing strategies to prevent corruption by identifying its insidious small beginnings and adopting the best processes to work without it and stamp it out.

These are the core business principles already making or breaking New Zealand Inc in overseas markets, and making or breaking individual companies locally and globally that can decide either to seize the ethical high ground, or risk all by going the easy way.

Did you know:

•

•

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Research has found corrupt practices, eg in Malaysia, add an average 35% to the cost of doing business.

The average cost of corrupt practices for OECD member countries is estimated to add 12 – 20% to the cost of doing business despite their relatively low levels of public sector corruption.

BusinessPlus

•

40% of organisations surveyed from Australia and New Zealand have operations in high risk countries and 35% of them have experienced a bribery and corruption incident in the last five years. This is likely to be under-reported.

• 77% of organisations with offshore operations have never conducted a bribery and corruption risk assessment.

• New Zealand is known as a good place to do business because the costs of corruption are low and has continually topped the world with the least corrupt public sector of the 20 years of the Corruption Perception Index.

• New Zealand and international law takes a severe view of lapses in integrity compliance, but a recent Deloitte survey found most companies are unaware of their exposure to these requirements – or that an unknowing breach could spell doom to a company’s continued success.

By committing to integrity systems, companies can prevent a slide into corrupt practices that have the potential to destroy shareholder value and future opportunity.

What can seem a small ‘help’ to ‘facilitate’ a difficult business deal is very likely to be prosecutable under US, UK or NZ law, no matter where in the world it occurs.

If you do not have adequate systems in place to identify these risks or carry out focused risk assessments, you may not even know it is happening - your company is itself high risk and may be spreading the problem, however innocuous it may seem.

New Zealand companies and our society are rewarded by being seen as world leaders in the ethical and transparent way we do business, internationally and internally. This is not achieved through mere lip service but as the result of serious committed policy backed up with rigorous company practices which are monitored with

action taken when lapses occur, and with problems addressed openly.

By ‘doing things differently’ now, and committing to policies of transparency, integrity and good governance, companies can reap the dividends of a strong, authentic brand, including lower costs of business, lower costs of capital, better market access, better return on shareholder value, high levels of staff retention and increased customer loyalty.

Transparency International New Zealand (TINZ), a chapter of the worldwide organisation, exists to help organisations and people in New Zealand adopt and apply transparency policies as a part of good governance.

As a start, to specifically assist business involved in international transactions (exporting, importing, tourism, international education, financial transactions), TINZ with the Serious Fraud Office have produced on-line anti-corruption training available to all organisations at no cost. (www.transparency.org.nz/ anticorruptiontraining).

TINZ is a not-for-profit organisation of members drawn from business, government and civil society. Our members and supporters understand the critical importance to New Zealand businesses, institutions, and government to commit to integrity in business and overcome the increasing threat to your, and New Zealand’s, good name and reputation that a lack of integrity brings.

TINZ is committed to ensuring New Zealand’s businesses have full access to independent research and strategic advice about how to harvest the rewards of the Transparency Dividend.

TINZ wants to engage with you and your business to ensure that as for the public sector, the private sector really is as good as New Zealand is perceived to be. It is important New Zealand’s reputation, maintained for over 20 years, continues.

More importantly for you, the reward of an enhanced reputation is an increase in your own company’s profitability. www.transparency.org.nz Contact: suzanne.snively@paradise.net.nz

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bribery and corruption policy

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IN THE LOBBY

Women in business Women in business is not a women’s issue – it’s a business issue.

Business grows wealth and improves our living standards – and if half the population is under-represented in business, we have less chance of success. We’ll be more successful when more women are engaged in enterprise.

Women are well-represented as employees, but not always in the highest positions.

In entry-level jobs there are usually similar proportions of male and female employees but at higher levels in the private sector, there are fewer women. And not enough of them make it through to senior management to be able to gain the experience to be considered for board positions.

The case for more women on boards is strong.

The OECD’s Business and Industry Committee has amassed significant research showing how much is to be gained from having more women on

“It’s even more important to have significant numbers of women-owned businesses” corporate boards.

The research indicates that companies with more women on their boards perform better on sales revenue, equity, invested capital, number of customers and market share.

Such companies are better able to deliver relevant products and services, because boards with women on them are better able to understand women as consumers.

Internationally, companies with

women on boards now exceed 10%, and recently the share of companies with no female directors has fallen below 40%.

This positive trend follows community, media and investor pressure.

Of course, senior management or board positions are not the only way for women to influence business.

It’s perhaps even more important to have significant numbers of womenowned businesses.

Here the trend is also positive, at least in New Zealand.

While around one quarter to one third of all enterprises worldwide are owned by women, in New Zealand around 40% of businesses are owned and operated by women.

Many, however, are the smallest businesses – undercapitalised and not able to grow significantly.

Women-led businesses tend to be

Migrant exploitation Bill now law The Immigration Amendment Bill (No 2) which cracks down on employers who exploit migrant workers has passed its final reading in Parliament.

“I have been concerned about reports of migrant exploitation and am confident this new legislation will make a big difference in protecting some of our most vulnerable workers,” said Employment Minister Michael Woodhouse.

“The fundamental principle is that migrant workers have the same employment rights as all other workers in New Zealand.”

Under the new law, employers who exploit temporary workers will face a jail sentence of up to

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seven years, a fine not exceeding $100,000, or both.

A new offence has also been introduced for employers who exploit legal temporary or unlawful workers and are reckless as to their immigration status. This offence carries a jail sentence of up to five years, a fine not exceeding $100,000, or both.

In addition, exploitative employers who hold residence visas will also be liable for deportation if the offence was committed within 10 years of gaining residence.

“The tough penalties reflect the seriousness of such offences and reinforces that this Government does not tolerate employers who exploit migrant labour for their own commercial advantage and will do everything possible

to stamp out this abhorrent practice,” said Mr Woodhouse.

The Bill also extends the search powers of immigration officers so they can search an employer’s premises and identify offending by employers. They will also be able to check documents and search for unlawful workers.

The Government has already made a number of changes to detect and address migrant exploitation to encourage victims of serious workplace exploitation to come forward and report that exploitation; the new legislation is expected to assist with those changes.

The government is also spending more than $7 million over four years to boost the number of labour inspectors and immigration officers dealing with the Canterbury rebuild.

Phil O’Reilly

concentrated in sectors less attractive to investors - fashion, retail, education and healthcare.

Although choosing these sectors would be partly due to personal preference, it would also be partly due to not having the skillset to operate in other sectors such as building, construction, engineering, accounting or technology.

Such sectors require a grounding in maths, science and technology – areas of study that are chosen less by girls.

Helping more young women and girls choose STEM skills (science, technology, engineering and maths) when in school and tertiary education will open more business opportunities.

Regardless of sector, many women find it difficult to fund business growth.

Women entrepreneurs tend to start out with less capital - and less debt - than men. Many start out with no

Helping more young women and girls choose STEM skills (science, technology, engineering and maths) when in school and tertiary education will open more business opportunities. external financing at all and stay in a situation of underfunding.

It’s thought that different styles in pitching for investment may play a part - women may feel less comfortable asking for large enough sums, or

negotiating hard enough on terms.

There are a number of factors that could help boost the chances of women achieving success in business.

Helping girls take STEM subjects in school could broaden their ability for enterprise success.

By taking account of different styles in seeking funding, financial institutions could help more women capitalise their businesses.

And by choosing to appoint women to board positions, firms could provide a good example for other companies to follow.

Alongside other factors such as accessibility and affordability of childcare, these would make a key difference in boosting the scale and impact of women in business.

Phil O’Reilly is Chief Executive BusinessNZ www.businessnz.org.nz

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Keep your nger on the pulse Your people are one of your biggest assets. To make sure your business is performing at its best you need to get their pay and benefits ‘just right’. That’s where we can help. Using our market intelligence you can keep your finger on the pulse of market trends and act with confidence.

The National Employers Wage and Salary Survey covers 216 positions. Our comprehensive reports include splits by industry, location and revenue bands: Salary reports: Reflect Salary ranges by position, location, revenue bandings and industry.

Beneets and Conditions reports: Position specific analysis of benefits and conditions.

You’ll find sample reports as well as a full list of positions and descriptions on our website.

www.nzsalarysurvey.co.nz The

National Employers Wage and Salary Survey is a joint venture between

NEWS

Making tax simpler Inland Revenue is modernising how tax is administered so it’s simpler and faster for businesses, and all New Zealanders to pay their taxes, and get the right entitlements.

IR has a multi-stage programme to transform New Zealand’s tax system aimed at achieving significant savings in time, effort and compliance costs for businesses. While reducing compliance costs for business is a primary aim, IR is mindful of the potential additional costs for some having to make changes to their systems.

Speaking at EMA’s recent Payroll conference in Auckland, Richard Owen from IR’s business transformation team said IR is partnering with software developers and intermediaries to design ways to make taxpayers’ PAYE and GST obligations easier.

“We anticipate that managing tax will become part of a business’s everyday processes and not a

complicated separate exercise,” he said. ”Our vision is that you’ll be able to submit your tax information to us seamlessly, saving your people the filing time-consuming schedules and returns,” said Mr Owen.

The changes will mean employees’ income and deduction details are more accurate and sent to IR more frequently. This in turn will allow IR to regularly review employee’s income-based entitlements, for example Working for Families, to minimise overpayments and an employer’s involvement in collecting this from their employee.

These future improvements build on the e-services already available.

More than 1.3 million eGST returns have been filed using Inland Revenue’s

secure online portal myIR since eGST was introduced in August 2012.

What do you think?

Right now the Government wants your views about the planned changes and how digital services can make tax simpler. Go to makingtaxsimpler.ird. govt.nz and make your views heard.

• Discussion on Better Digital Services – closes 15 May 2015 • Discussion on the plan for the Tax Administration – closes 29 May 2015.

Transforming Inland Revenue

The changes are part of a wider programme of work to meet taxpayers’ expectations of customer service in the 21st century.

Greg James, Deputy Commissioner of Change at Inland Revenue said “Businesses want to have greater Continued o’leaf

Don’t be frightened of IRD interest rates and penalties.

Simply purchase tax from the TMNZ tax pool to settle your tax bill.

Save up to 30% on IRD interest and eliminate late payment penalties.

For a better tax outcome visit tmnz.co.nz, talk to your tax adviser or call 0800 829 888.

EMA/HP/TP3

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TAX TIPS Jo Doolan

The Omnibus Tax Bill: Revenue Minister Todd McClay: “The omnibus bill would amongst other things implement policy decisions around research and development taxation issues. The bill also clarified issues around body corporates and GST, tax pooling, and other remedial issues.”

Labour’s Clayton Cosgrove: “I feel sorry for McClay who had to tidy up a mess in legislation ranging from a ’stuff up’ over body corporates to child support problems. The changes to the child support regime also showed a blow out in costs which the Government was trying to roll back in this bill by reducing the changes originally proposed to the regime.”

For those big noting at dinner parties the official name of the so-called omnibus bill is ‘The Taxation (Annual Rates for 2015-16, Research and Development, and Remedial Matters) Bill’. Since we have already discussed the R&D proposals last month let’s now cover some of the other treasures taxpayers should be warned about. The mixed bag of goodies includes: • a roll back of some of the individual filing requirements when people claim a refund, • black hole expenses, • GST for body corporates, • changes to the international rules, • FBT and • child support, to name a few.

Given the range we’ll cover the highlights and go back over some of

“The bill would implement policy decisions around research and development, and clarify issues around body corporates and GST, tax pooling, and other remedial issues.” them in more depth when the bill is enacted.

Black R&D holes

Black hole expenditure always strikes me as an inappropriate name… essentially these expenses are not immediately deductible for tax and cannot be added to the cost of an asset that can be depreciated.

The bill proposes that capitalised development expenses incurred from the date of the discussion document (7 November 2013) may qualify for a one off deduction. This is aimed at R&D costs incurred after an intangible asset has been recognised for accounting (currently ‘black hole’ expenditure).

To achieve this, the amount needs to be written off for accounting purposes though it won’t matter if the R&D was successful or not. But it’s not a gift forever; if you sell the intangible asset or it becomes

Making tax simpler certainty and expect to be able to interact with us in a digital world.”

IR has spent three years developing a clear picture of how to deliver the new tax system. There has been a considerable amount of work and on-going consultation to understand business’s needs. Workshops with accountants, intermediaries and tax

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useful again then the deduction taken will be clawed back, so somewhere you need to record this for future reference.

If you create an intangible asset that can be depreciated for tax purposes, you can include capitalised expenditure in the cost of the asset from the beginning of the 2011-12 income year. Capitalised expenditure relating to patents, patent applications or plant variety rights incurred on or after 7 November 2013 can be included in the cost of the item and depreciated from the beginning of the 2015-16 income year. Design registrations and industrial copyrights will also be added to the list of intangible property that can be depreciated.

The bill also provides for deducting tax on previously non-deductible company administration costs for paying a dividend, direct costs for holding shareholder meetings, and the cost of annual subscriptions for listing on a stock exchange.

GST exemptions for bodies corporate

After a long battle, the bill includes provisions to treat the member fees of bodies corporate as exempt from GST; they only need to register if the supplies to non-members are more than $60,000.

The provisions also allow bodies corporate already registered for GST to continue to be registered; there’s a sting in the tail in that if they elect to deregister then any refunds of GST

(continued)

agents have helped IR understand customers’ needs and the difficulties they face in getting their tax right.

“Modernising New Zealand’s tax system is no small task,” said Mr James. “It is a significant government investment and we’re making sure we get it right with extensive planning, programme management and a staged

roll-out,” he said.

Independent reviews have found lessons from other large-scale programmes are well understood and there is confidence IR can deliver.

Register to receive the Transformation e-newsletter at www. ird.govt.nz/transformation

TAX TIPS Claire Dilks

Big, but how beautiful? paid on member fees not paid at the time the entity is deregistered will not be refunded.

If a body corporate registers, there will be a one-off GST adjustment based on the cash and non-cash investments held at the time. This is a huge shift from the original stance which was to treat the members’ fees as exempt and not allow GST claims on expenditure.

While many put in submissions on this issue - Robin Oliver, the previous Deputy Commissioner of IRD - was at the forefront. One would have to question whether the issue could have been resolved far earlier without the uncertainty and animosity that has arisen.

International rules

Controlled foreign companies, foreign investment funds (FIF) and foreign superannuation rules also face changes under the bill. From 1 April 2016, you can elect every four years to opt for an alternative basis for calculating the “fair dividend rate” method to work out the income on your FIF investments. This four year lock-in reduces your flexibility and means you cannot cherry pick your method in the year you make a loss.

Some will see this as ensuring the legislation is interpreted in the way it was meant to; others see it as tax by stealth. Overall what is needed is a complete review of the FIF regime to determine if the set rate of return is appropriate, and to determine whether this regime should be repealed and actual income returned, rather than some notional rate.

For controlled foreign companies prepaid expenses will now need to be spread. Also there is a tightening of the rules that apply for the active business exemption, so you cannot elect to consolidate an active company with a passive one if the reason for doing so is to reduce net attributable income or increase losses. Currently taxpayers are able

“We can expect to see more pressure on employers and those who deduct withholding tax to ensure the right amount of tax is deducted throughout the year” to choose to group with an active company to reduce the impact of passive income in a profit year and not to group in a loss year, in order to accumulate losses in the passive company. In addition, when you purchase or dispose of a controlled foreign company during the year these will now be able to be included in the CFC group. The personal services attribution rules will also apply if personal services are provided via a foreign company.

From 1 April 2015 new rules for foreign superannuation interests will apply rather than the foreign investment fund rules where the interest is acquired when the person was a tax resident of New Zealand under domestic law but deemed to be a non-resident under a double tax agreement.

Also the foreign super rules apply rather than the foreign investment fund exemptions where the holders of foreign super funds and foreign investment funds cost NZ$50,000 or less. These rules are all rather specialised so if you have overseas investments the warning is to take advice and confirm up front how these changes will impact you, rather than waiting to the end of your financial year.

Some proposals were to apply from the 2016-17 income years where any individual not required to file a return and choosing to apply for a

refund would be required to file four years’ returns rather than cherrypicking just the refund periods. This requirement has now been removed, so it is still possible to cherry pick and use a refund agency to get your tax refund.

Over the next few years we can expect to see more pressure on employers and those who deduct withholding tax to ensure the right amount of tax is deducted throughout the year. It would pay to start reviewing your payroll system to ensure you can comply with this.

FBT changes

If you lend money to your employees and one of the companies in your group is in the business of lending money to the public, you can now use market rates of interest to work out the fringe benefit tax you have to pay on those loans, assuming the rate you give your employees is lower than the market rate.

From 3 July 2014 you will be able to use a tax pooling agent like Tax Management New Zealand to meet the use of money interest payments where you have had an amended assessment or settled a tax dispute.

This is also worth looking at as there could be savings to be made.

There are also remedial changes to the transfer of property rules for trusts, and for the settlement of relationship property, along with the financial arrangement rules, and to the thin capital and child support rules to ensure they operate as they should.

Overall this is a mega bill. You need to plan for the areas that could impact on you.

Joanna Doolan is a Tax Partner and Claire Dilks is a Senior Manager with EY. joanna.doolan@nz.ey.com claire.dilks@nz.ey.com BusinessPlus

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By Nada Young

Financing sales support in Asia Food and beverage is an exciting sector in the high growth markets of Southeast Asia and the East Asian tigers (Taiwan, Hong Kong and South Korea). The trouble is we are not the only nation vying for a piece of the action. A multitude of global brands are busy building trade links in the region, and the fight to gain market share is fierce.

Achieving success requires more than a demand-inducing product; it also needs adequate marketing support to develop brand awareness and generate sales.

For most exporters using a distribution partnership model in Asia, there are a number of approaches that can be taken, such as best price, which involves selling at the lowest price while allowing your partner a margin for marketing.

Many kiwi exporters prefer this model thanks to its simplicity.

It can also be beneficial for the buyer, as duties and taxes on each shipment are minimised.

The downside is you have little control over how well your product is promoted or its final selling price.

Without their skin in the game, your distributors’ attitude to brand building can be lack lustre. A common view expressed by distributors is: “The Principal owns the brand and they can [and often do] move their business to a competing importer at any time, so marketing costs should be covered by the Principal”.

A popular middle ground is achieved by taking a shared approach, in which the exporter commits a percentage of FOB sales towards marketing while the distributor covers in market costs such as promoter salaries, samples, price offers etc.

To be successful it’s vital for sales to be adequately supported and for the strategy adopted for a product to be mutually agreed upon. To ensure your expectations align with those of your distributors you need open and frank discussions about marketing at the outset of the business relationship.

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Nada Young is the Asia Market Director at Incite, a New Zealand owned export services firm with offices in Auckland and Singapore representing international F&B exporters in high growth markets of Southeast Asia, Hong Kong, Korea and Taiwan. Nada has been based permanently in Asia and worked in the region for the last five years. nadayoung@exportincite.com www.exportincite.com

Letter from Australia Marketing Specialist Bella Katz

A 10 step plan for entering the Australian market I had to do the maths recently on how long I’d been in Australia. Turns out I’ve been saying ‘around 12 years’ for about six years too many. I’ve lived here as long as I’ve lived in New Zealand and that went really fast.

It also made me realise I’ve met a lot of New Zealand companies in Australia and have seen them all face similar issues. I’ve condensed all that info into a very simple 10-step plan for you, as below.

As most of you would relate through your own lines of work, companies in certain stages of maturity face comparable challenges. They may hail from different industries and have different leadership styles and strategies, but you start to see what works and what doesn’t.

There’s nothing earthshattering here because the best lessons we can learn are from the experiences of others. I love to read old marketing case studies because, let’s be honest, it has all been done before. We may use new channels to market but the purpose and outcomes are the same.

In this case the many companies who have pounded the Australian pavement just like you, offer the best tips.

Australia is close, it’s significantly larger in market size, the language and time zone is the same, the dollar is practically at parity. For companies that quickly outgrow New Zealand, Australia is a no brainer. Take these 10 steps and I’ll see you here soon.

Your ten Aussie steps:

1. Visit Australia. See firsthand what others in your industry are doing. Nothing beats seeing the market with your own eyes.

2. Choose one or two cities only.

If you’re a young company, pick Sydney or Melbourne. Trying to make it in both at the outset

could be your undoing.

3. Connect with expat networks before you come. We’re always happy to share knowledge and point you in the right direction.

NZTE, NZVBG, Trans-Tasman Business Circle – networks created with you in mind.

“Define your niche and don’t try to be everything to everyone. I can’t stress this one enough. In New Zealand you can get away with a broad offering, in Australia you must have a specialisation”

4. Do the desk research and pinpoint your competitors, their clients, brand positioning.

You’ll need to be different (or compellingly better) to stand any chance.

5. Consider a local advisory board. Not every company can afford or needs a local team right away, but a key advisor can open doors at the highest level. Being realistic, no one will do this for free, so choose what works for you, such as partial equity or a day rate.

6. Relocate. This may be drastic, but many companies have done exactly that. No distributor or sales rep, ever, can represent your brand the way you can.

7. Define your niche and don’t try to be everything to everyone.

I can’t stress this one enough.

In New Zealand you can get away with a broad offering, in Australia you must have a specialisation.

8. Bring your wallet. It’s expensive here and winning work takes far longer than you think.

Chances are you’re not going to win a client for many months.

Can you afford to wait?

9. Look into partnerships (or acquisitions) with established, complementary businesses.

These can shortcut your way into Australia, and many Aussie companies will at least be interested to have the conversation.

10. Don’t be afraid to walk away.

If you get the feeling you’re not ready, you’re probably right.

It’s not failure if you decide Australia isn’t right for you.

In fact, you may save your New Zealand business as a consequence.

• Bella Katz is an Australia-based brand and marketing consultant and advises New Zealand companies exporting to Australia. She is also a New Zealand expat, calling Australia home for over a decade. +61 (0) 410 400 657 bella@bellakatz.com.au Bella on LinkedIn www.bellakatz.com.au Skype: beharkatz BusinessPlus

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Baldwins Intellectual Property Commercialisation of Innovation for Export Award Blair McKolskey [IQ Commercial], Claire Porteous [Compac Sorting Equipment], Marcus Driller [F&P Healthcare], and Award judges Tim Jackson [Baldwins Intellectual Property] and Heather Baigent. Absent: Hammerking

Quantium Solutions E-Commerce Exporter of the Year Award Awards judge Paul O’Brien at left with Merryn Straker [Straker Translations], Barnaby Marshall [I Love Ugly], and Mike Parry [Quantium Solutions],

BDO Food and Beverage Exporter of the Year Award Saskia Thornton [Imake], Robert Auton [Oob Organic], Nicola Chapman [Invivo] and Award judge Robert Fostger [BDO]. Absent: New Image Group

Auckland Export Award finalists found The 25 finalists in the seven categories of this year’s Air NZ Cargo Auckland Export Awards traverse the widest range of New Zealand enterprise, from home brew, robots, marine winches and self-service payment systems.

The companies entering the Awards also range from the largest, most well established to small and emerging businesses, said Catherine Lye, Export New Zealand’s Auckland director.

“We are delighted to be able to showcase such a brilliant cross section of New Zealand’s most innovative, successful and exciting companies,” Ms Lye said.

“The depth and range of the companies attracted to enter Baldwins Intellectual Property Commercialisation of Innovation for Export • Compac Sorting Equipment is a world leader in the design and manufacture of advanced sorting and pack house solutions, automation products and software solutions for traceability and packing fresh produce.

• Fisher & Paykel Healthcare is a global leader in medical devices with a team of over 3000 people in operations spanning 35 countries. Every year more than 9 million patients benefit from their products.

• Hammerking Rollers provided rollers to the printing industry then developed a unique coating for large rollers that apply paint to metal. Hammerking’s roller technology is highly specialised and world leading.

• IQ Commercial has developed a world leading technology to incorporate in the interior furnishings of their clients thereby contributing to their business performance. Their product range includes furniture, lighting, flooring and textiles; they seek out high value export opportunities born of a culture of innovation and green growth strategies.

Quantium Solutions E-Commerce Exporter of the Year Award • I Love Ugly is a premium men’s street-wear brand of clothing and accessories sold online, through six flagship retail stores and a network of third party retailers (around 200) worldwide.

• Straker Translations have production centres in Auckland and Barcelona, and sales offices in Washington State and elsewhere to ensure their global reach. Straker operates 24x 7 all year round.

TNT Express Emerging Exporter of the Year Award • Bidvest Exports operate out of a purpose built facility in Avondale to supply the hospitality and food service sector throughout the Pacific, a one stop shop for all chilled, dry, frozen and fresh produce supplied by sea and air.

• CS for Doors is Australasia’s premier manufacturer of innovative door solutions, a family owned business founded in 1986 and based on their development of a system superior to any other. CS for Doors caters to the residential, architectural, commercial and health care markets.

• I Love Ugly (as above) is a premium men’s street-

our awards reflect the prestige with which they are held,” she said.

The winners of the Air NZ Cargo Auckland Export Award categories along with the Supreme Award winner, and the 2015 Export Champion will be presented at a gala dinner at the Langham hotel on Thursday June 18th.

The finalists are:

wear brand of clothing and accessories sold online.

• IQ Commercial (as above) operates where the research, design, manufacturing and finance industries intersect.

Endace ICT Exporter of the Year (total sales $1m-$10m) • Flintfox International designs and implements a software management platform to provide real time business intelligence for product promotion, advanced pricing, and analytics. Flintfox is headquartered in New Zealand with offices in Canada, USA, Singapore and the UK. • Modica Group’s ‘Omni’ customer engagement platform gives businesses the tools to directly engage with mobile customers anytime, anywhere, rapidly and cost effectively. Their applications hosted online include a Qatar based taxi company, a Dominican Republic based bank, and NZ’s Department of Corrections.

• SnapComm also has offices in the UK and USA. 99% of their sales were overseas for their employee communications software which allows large organisations to communicate more effectively with staff by delivering company messages directly onto their PCs, Macs, smart phones and tablets.

BDO Food & Beverage Exporter of the Year Award • Imake supplies ingredients, equipment and knowhow for people to make their own craft beer, cider, spirits, liqueurs, cheese, yoghurt, sausages, and more, at home. Imake brands include Mad Millie, Mangrove Jack’s, and Grainfather.

• Invivo is a premium New Zealand wine company selling in 17 countries with key focus markets Australia, New Zealand, Japan, UK, Asia and Canada.

Invivo has won global accolades for their wine quality and innovative approach.

• New Image Group’s focus is on supplying highquality goat and bovine nutritional products to China, NZ, Korea, Malaysia, Hong Kong, Taiwan, Vietnam and others, as well as their direct selling lines - high quality supplements and nutraceuticals.

• OOB Organic is a premium food company manufacturing premium organic ice- cream, organic ice blocks and distributing organic blueberries, strawberries and raspberries. Honest, quality products made the right way, carefully and without complication.

QBE Insurance Exporter of the Year (total sales under $25m) • Agility CIS flagship product is the Orion CIS & Billing platform which provides complete data-to-cash solutions for electricity, gas and water utilities and Internet and telecom businesses.

• Jackson Electrical is a leading supplier of portable power solutions and industrial power applications.

Their ‘Lifeguard’ in-house designed and manufactured products are found in the construction, mining, marine, civil defence, emergency and events sectors.

• Straker Translations (as above) are one of the world’s fastest growing translation companies with more than 20,000 customers.

• Vetus-Maxwell APAC Ltd (formerly Maxwell Marine International Ltd) has 50 years’ experience in the design and manufacture of anchor windlasses, mooring capstans and auxiliary equipment. Besides their head office in Auckland, they have dedicated representative offices in Australia, USA and The Netherlands as well as access to the extensive distribution network of the parent company worldwide.

Westpac Exporter of the Year (total sales over $25m) • Compac Sorting Equipment (as above) is a leading designer and manufacturer of advanced pack house solutions, automation products and software solutions for traceability and pack house management.

• Fisher & Paykel Healthcare (as above) is a global leader in medical devices and systems for use in respiratory care and acute care, and in the treatment of obstructive sleep apnoea.

• Invenco is a global supplier of automation and self-service payment systems. Most people will be familiar with their technology allowing consumers to pay at the pump for petrol, but they have many other product lines enabling transactions and payments to be handled quickly and securely.

• JMP Engineering designs, manufactures, installs and supports a range of robotic palletising and packaging equipment for product handling and packaging. JMP has sales and support offices in Australia and the USA. BusinessPlus

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Member noticeboard

Theme park crowned for The past year has been one of fantastic success for Rainbow’s End Theme Park. The iconic 9.3ha theme park based in Manukau, South Auckland has received several international awards and accolades and after a year of unprecedented visitation and growth they are reaping the rewards of hard work over the past few years.

Rainbow’s End embarked on a redevelopment back in 2009. Since then they have introduced new rides, new eating outlets and a brand new centre stage. They also completed the fully covered Family Entertainment Centre Kidz Kingdom for children 8 years and under in 2013. Development continues with a brand new front gate planned this year and a new attraction,currently under wraps, to be introduced next year.

Rainbow’s End is New Zealand’s biggest theme park, offering rides to all ages including the roller coaster, Stratosfear, Power Surge and Fear Fall.

In 2014 Rainbow’s End received the coveted 2014 Brass Ring Award for “Best Innovation in a Training programme” presented in Orlando, Florida by the international Association of Amusement Parks and Attractions (IAAPA). An IAAPA Brass Ring Award is a widely recognised distinction within the attractions industry internationally.

The Award recognises Rainbow’s End delivery of 52 modules or ‘Nuggets’ to each of their 200 employees. Each Nugget, given out weekly,

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focuses on customer service topics to help employees build relationship building skills with park guests. The Nuggets aim is to help employees create lasting first impressions, making moments of magic that create ‘wow’ moments with guests. They also incorporate relevant safety and operational content.

The Award win acknowledges the programme and is a reflection of the entire team’s involvement and commitment to the goal of achieving ‘World Class Guest Care’, says chief executive Chris Deere.

“To be acknowledged as finalists by IAAPA is an amazing achievement, but to win a Brass Ring Award is outstanding and a credit to everyone involved in making Rainbow’s End the premier family destination in New Zealand,” Chris said.

“We are thrilled by the outcome”.

Another award won this year by Rainbow’s End was the Westpac Auckland’s Best of the Best Marketing Award 2014.

Rainbow’s End CEO Chris Deere

Chris says, “I take my hat off to our fantastic team, both our front line staff and those working behind the scenes who strive every day to ensure a fantastic visitor experience for our guests.

“I must also acknowledge our Board and parent company Rangatira that have provided support, guidance and investment to ensure Rainbow’s End retains its position as a cherished Auckland attraction and an iconic New Zealand brand.”

Rainbow’s End attributes its success to taking a consistently targeted approach to marketing to core audiences and understanding their customers.

Marketing Manager Katharine Murray says, “We conduct independent research to ensure our brand and value propositions are upheld throughout all our marketing activity.

Member noticeboard

world-best staff training

“Our values are tantamount to our success.

“We believe in good times, laughter and never ever forgotten family memories, and this is what keeps people coming back to Rainbow’s End time after time.”

A Westpac Awards judge Liz Wotherspoon from The Icehouse commented that Rainbow’s End had a “clear value proposition and that their passion for business shone through. They were able to demonstrate a very clear point of differentiation and were on a great growth journey”.

Last year visitor levels hit an all-time high. This, coupled with the rollout of a new look Rainbow’s End logo, the launch of the highly anticipated Stratosfear ride and the recent introduction of Kidz Kingdom have

all cemented the park’s position as an outstanding New Zealand attraction.

What’s more, the Kidz Kingdom rides gained international media attention this year on the cover Funworld Magazine in the USA. Funworld is read by over 34,000 industry people each month giving everyone from Disney, Universal Studios and Rainbow’s End information and insight into the latest news and innovations from around the world.

Kidz Kingdom has been pivotal in the park’s development as a wellrounded, all-encompassing theme park for children of all ages.

Chris says, “To have Rainbow’s End in the spotlight and in front of industry leaders and top executives from around the world is quite an accolade and something for which we are very proud.”

Ensuring Kidz Kingdom was targeting the right audience was a new challenge for Katharine. She says, “With seven party rooms, 10 rides and attractions, interactive games and an indoor café, we have worked hard to position Kidz Kingdom as ‘the’ place to come for birthdays, great days out with the family and coffee groups alike.

“We also see Kidz Kingdom as a fun transitional route for younger thrillseekers on their way to conquering the bigger rides in later years.”

“We’ve spent a lot of time researching and developing new and exciting rides and visitor programmes throughout Rainbow’s End and we are confident that we have created a market leader in this part of the world.

“Whilst Rainbow’s End may not be on the same scale as some of the larger international theme parks, it doesn’t mean we can’t be world class at what we do.”

Team members from Auckland War Memorial Museum celebrate the completion of the Ultimate Team Leader series - one of EMA’s most popular training courses.

This programme is made up of six one-day workshops, held once a month.

It is designed to help your staff excel at supervising, growing and leading their teams.

For more information please visit https://www.ema. co.nz/events/calendar/Pages/The-Ultimate-TeamLeader.aspx

Back row (l-r): Otis Dickens, Brad Wilson, Elizabeth Jurlina, Andrew Jary, Johnny Hui and Debra East; Front row(l-r): Kathrine Sulivan, Julie Senior, Alison Lambert, Nicky Pridham and Roy Clare (Museum director).

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