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Venture Taranaki Annual Report 2013

Taranaki at a 2.2% Glance Population:

110,100 57.4%

Taranaki’s GDP grew at an average 2.2% per annum from 2007-2012, the fastest growth in New Zealand. Source: BERL

2.5% of New Zealand’s population

Source: Statistics New Zealand (Estimate)

$53,500

The optimism of Taranaki’s businesses reached the highest level since VT’s 6-monthly Business Survey began in 1999. Source: Venture Taranaki Business Survey

GDP for each member of the population in Taranaki. National average: $42,100. Source: BERL

June 2012: 29.7% expected the economy to improve June 2013: 57.4% expected the economy to improve Livestock in Taranaki. Source: Statistics NZ

Sheep 434,000 Beef cattle 104,000

Dairy cattle 604,000

March 2012

March 2013

57,200 62,800 People employed in Taranaki Source: Statistics NZ

Value of annual residential building consents (new & alterations) in Taranaki. Source: Statistics NZ

To June 2012: $133,944,147 To June 2013: $157,265,286

14,488 Businesses in Taranaki Source: Statistics NZ

$81,800 Average household income in Taranaki: $81,800. New Zealand average: $80,600. Source: Statistics NZ

Net change in international migration to Taranaki. Source: Statistics NZ

Year to June 2012: -555 Year to June 2013: -114

Venture Taranaki Annual Report 2013 Contents Chairman’s Comment...................................................... 2

Financial Performance 2012-2013.................................... 28

Audit Report.................................................................. 28

Trustees’ Review.............................................................30

Statement of Financial Position........................................31

Achievements 2012-2013.................................................6

Statement of Comprehensive Income............................. 32

July ..................................................................................6

Statement of Changes in Equity...................................... 33

August..............................................................................8

Statement of Cash Flows.................................................34

September...................................................................... 10

Notes to the Financial Statements.................................. 35

October...........................................................................12

Statement of Service Performance..................................44

November....................................................................... 14

Trust Directory............................................................. 45

Venture Taranaki at a Glance ........................................... 2 Chief Executive’s Comment..............................................4

December....................................................................... 16 January............................................................................17

Contact Information..................................................... 46

February......................................................................... 18 March.............................................................................20 April................................................................................ 22 May.................................................................................24 June................................................................................26

Venture Taranaki Trust is Taranaki’s Regional Development Agency. We help the region grow. Incorporated as a charitable trust, Venture Taranaki is a dynamic organisation which has facilitated business success from enterprise inception through to sustainable growth based on international competitiveness.

Venture Taranaki is an initiative founded by: In addition to the New Plymouth District Council, Venture Taranaki is supported by: South Taranaki District Council, Stratford District Council, Taranaki Electricity Trust, New Zealand Trade and Enterprise, Ministry of Business, Innovation and Employment, Callaghan Innovation, Business Mentors New Zealand and numerous other private sector organisations. Photo credits: Rob Tucker, Mark Harris, Supplied.

Venture Taranaki Annual Report 2013

CHAIRman’s comment W

hen it comes to economic success, Taranaki is the place to be.

A number of credible independent indicators have recently been released, from the likes of economists Business and Economic Research Limited to Statistics New Zealand to the Ministry of Business, Innovation and Employment, that all point to a strong regional economy across the short and medium terms.

Two figures capture this momentum: for less than 2.5 percent of New Zealand’s population, Taranaki contributes 4.2 percent of New Zealand’s Gross Domestic Product. Over the last five years our region’s GDP has increased on average

2.2 percent per annum – the strongest growth of any New Zealand region. This performance is laid across the solid foundations of strongly performing businesses, a rich wealth of resources, and an innovative people. But just as critical is the fourth foundation of leadership and stewardship, and it is here that Venture Taranaki has been privileged to have contributed to the region’s sustained growth. The question that we must answer, though, is one of how this economic momentum translates to community good. It is this extrinsic value of economic development, as a core driver of

AT A GLANCE Value of Callaghan Innovation Research & Development Funding Grants issued

2012

2013

$1,093,380 $1,643,565

1,004,139 individual page views on www.taranaki.info

694

782

2012

2013

The number of Taranaki businesses registered on the Taranaki Jobs website

Mentors matched to businesses by Venture Taranaki, through the Business Mentors New Zealand programme

community growth that underpins Venture Taranaki’s mission, business plan, and daily efforts. But as our successes have been reflected in regional statistics, so too have our challenges. Another piece of research, released shortly after the period covered in this report, underscores that there is no room for complacency. The inaugural Sovereign Wellbeing Index commented the people of Taranaki have the nation’s lowest wellbeing, as determined by social connection, philanthropy, appreciation of surroundings, ongoing learning and physical activity. This survey reminds us that success is defined in social, cultural, and environmental terms, just as it is in economic.

NZTE Capability Development Vouchers awarded to Taranaki businesses

228 vouchers

issued

$287,638

total value

Major events contracted through the New Plymouth District’s Major Events Fund

Venture Taranaki Annual Report 2013

It is only when we can deliver community growth across all of these factors that we will become a truly compelling region in which to live, work and play. And it is this, in turn, that will enable Taranaki to meet its population targets and continue to lead New Zealand into the future. Sadly, this is a point that amendments to the Local Government Act failed to confront. Venture Taranaki argued to Parliament’s Local Government and Environment Select Committee and other forums during the year that the narrowing of local government to just ‘core’ functions could compromise regional, and national, growth. If supporting the ambitions, achievement and momentum of its constituency cannot be considered a core function, then all provincial economies will face greater threats to their survival than underwhelming wellbeing scores and population retention. In parallel with this realignment of local government is the ongoing necessity for Taranaki’s challenges and successes to resonate more strategically on the national stage. Whether in the corridors of Parliament and government departments,

in media, or around dinner tables of future residents, the Trust has been very active this year in pursuit of greater involvement in the decisions that impact on our region, and the national economy. There is a common but incorrect perception that economic development is only about money and wealth. The real driver of economic growth is people, and the people that have enabled the region to make a difference are easily comparable to any community either nationally or globally. Once more I strongly acknowledge the immense contribution of the Trust’s Board, and thank them for bringing their rich deck of skills and experience to the Boardroom table. I also thank outgoing trustee Paul Winter for the significant role he has played in growing both the Trust and the regional economy over his ten years at the table, and Peter Tennent for the momentum and enthusiasm he has brought to the Trust over the last three years, his role as a founding Trustee of Venture Taranaki at its inception and support during his time as Mayor of New Plymouth. The Trust and the region have benefited greatly from their valuable insight into tourism, local government issues and business experience.

Number of clients who attended Venture Taranaki’s free 1:1 business start-up clinics

Taranaki business projects referred to Massey University for further analysis

17%

227

Annual growth in the Trust’s social media followers

The annual Client Satisfaction Survey found the Trust’s business services scored 85% satisfaction and Trust staff 91% satisfaction

85%

I also extend a welcome to incoming Board members Kevin Murphy, Managing Director of TSB Bank, and Jamie Tuuta, the Maori Trustee, both of whom bring considerable skills, experience and networks to the Trust from 1 October 2013, and will help ensure Venture Taranaki remains not just globally competitive but world leading into the future. Similarly I extend the gratitude of the Board to Stuart Trundle and the focused and passionate team he leads. The responsiveness of the staff is second to none when it comes to helping businesses access expertise, ideas, funding programmes, and much more. In closing, I once again extend a heartfelt thanks to the Trust’s creators, owners and core funders, New Plymouth District Council, and I look to them to continue their support of the region’s economic growth.

Robin Brockie Chair, Venture Taranaki Trust

$4.53 million Economic boost to region from All Blacks vs. France test match 1st placing of Venture Taranaki team in mixed team class of the Taranaki Round the Mountain Cycle Challenge

Venture Taranaki Annual Report 2013

Chief Executive’s Comment

he impacts of the global financial crisis may have largely waned in our region, but Taranaki had other challenges to contend with this year.

The drought of early 2013, defined by the Ministry for Primary Industries as the worst in over 60 years, impacted on a quarter of the region’s businesses1. While it is heartening that three quarters of those businesses impacted by the drought have since recovered, the fact that a quarter have yet to overcome the effects underscores how indelible the link between the natural environment and Taranaki’s primary production foundations really is. Businesses must manage this reality at a micro level, but it is Venture Taranaki that is charged with responding at a regional level, and this strategic stewardship of our economy has again driven our activities and investments this year. On many levels, this year was successful for both the region and the Trust. In partnership with the Ministry of Business, Innovation and Employment Venture Taranaki injected 228 Capability Development Vouchers to local businesses, worth a total of $287,638 – a 28 percent increase on last year.

them move towards commercial success. Our Start-Up clinic met with 227 Taranaki people with business ideas, and our regional social media presence grew 15 percent on Facebook to almost 27,000 and 27 percent on Twitter, to over 3,100. The Trust delivered this, and more, with a total revenue that grew to $3,787,045. Of this, $2,954,000 came from our owners, the New Plymouth District Council, and I reiterate the Chairman’s message of thanks to the Council’s elected leadership and management team. While we raised the bar in terms of the support we provided the region’s businesses, we also made headway towards two of the long-term challenges that confront the region – the attraction and retention of skilled workers, and raising the profile of the region on the national stage. Our response to these challenges was comprehensive and cohesive, across all of the organisation’s business units.

With our partners Callaghan Innovation the Trust awarded 28 R&D funding grants worth a total of $1,643,565, up 50 percent on 2011-2012.

Through major reports on the economic development potential of State Highway 3 north of the region to Unlocking the Potential, the first economic scenario modelling on the practice of hydraulic fracturing, to a greater presence around the boardroom tables of key government departments, we ensured that Taranaki resonated.

Through the Business Mentors New Zealand programme we matched 59 business owners with business mentors, and under our joint venture with Massey University 15 local projects were connected with Massey’s experts to help

The Trust contracted a total of 11 major events during the year, further building the profile of Taranaki, both nationally and internationally, as well as showcasing the region to thousands of visitors. During the year we retained WOMAD for a further

1 http://www.mpi.govt.nz/Default.aspx?TabId=126&id=1899

three years, attracted the largest rugby match in Taranaki’s history in the All Blacks vs. France repeat of the Rugby World Cup 2011 final, and balanced demand for event funding that far outstripped supply. This is another area where the value of an independent regional development agency is keenly felt – we have been able to leverage additional sources of both funding and expertise to maximise opportunities beyond the ability of the Major Events Fund. This will continue. Nobody will be left in doubt that Taranaki is the driver of the new New Zealand – even Prime Minister John Key was presented with a framed document extolling the region’s economic performance. This will also continue to be a central theme. Taranaki’s other significant challenge is the attraction and retention of people to fuel regional and business growth. Our

Venture Taranaki Annual Report 2013

June 2013 Taranaki Business Survey found that 34 percent of the region’s businesses expect staff numbers to grow – up from just 9 percent in June 2012. Over the same period the percentage of businesses having trouble finding and hiring the right staff has risen from 23 to 31 percent. In response the Trust this year launched a significant boost to its Swap Sides campaign, calling in the services of Taranaki comedian Ben Hurley to front a video as the catalyst to a global campaign promoting the lifestyle benefits of the region. Recognising the importance of securing a job in the Swap Sides process, we grew the number of employers on the Taranaki Jobs website from 694 to 782.

businesses almost doubled over the year. Leading the nation’s economic transformation requires strong leadership, and I warmly thank the Trust’s Board members and Chair Robin Brockie for their governance and guidance over the year. The global experience, from a range of industries they bring to the Board table is incredibly valuable to our entire region.

And this is having an impact.

Delivering the vision set by the Board falls squarely on the shoulders of the Trust’s executive team and their staff. In this capacity the results the Trust has achieved, along with the diversity of the positive interventions we have been able to make and the buoyancy of the region today, demonstrates that this is indeed a worldclass team.

The number of people employed in the region grew by 5,600 over the year to March 2013 to 62,800, up from 57,200 in March 2012. The June Business Survey reported the highest level of confidence at both business and industry level in the Survey’s 14-year history, with Taranaki’s economic outlook ten percentage points higher than a similar nationwide survey by ANZ Bank. Optimism amongst Taranaki’s

By their nature annual reports offer a holistic insight into the operations of an organisation. As you read over Venture Taranaki’s achievements of the past year, I urge you to think about how you and your business organisation can utilise the expertise of Venture Taranaki Trust to further grow Taranaki’s economy, businesses and people in the coming year and beyond.

The year ahead will see the national spotlight firmly focused on Taranaki as the region experiences record levels of on and offshore oil and gas exploration. The global investment that these endeavours require will continue to foster confidence, though it must be remembered that there are other centres of wealth creation in the region. For instance our manufacturing exporters are facing a negatively moving Kiwi dollar, particularly in relation to our key trading partners across the Tasman, while also being hit with uncompetitive road, rail and sea transport costs – effectively placing an export tax on many of our most innovative companies. Venture Taranaki’s value will again be demonstrated over the coming year as we seek positive solutions to such challenges and work to maintain the region’s economic momentum.

Stuart Trundle Chief Executive, Venture Taranaki Trust

Venture Taranaki by the Numbers 2012-2013 Venture Taranaki Annual Revenue

2012/2013 Funding Sources

$ 4,000,000 3,500,000

78.22%

3,000,000 2,500,000 2,000,000

21.78%

1,500,000 1,000,000

New Plymouth District Council $2,954,000

500,000 0

Year

Other $833,045

Venture Taranaki Annual Report 2013

July 2012 Racing up the regional rankings The March 2013 release of Business and Economic Research Limited’s annual Regional Rankings delivered some positive news for Taranaki. As a region Taranaki ranked second overall, behind super city Auckland. The report praised the relative openness – or ease of doing business, and GDP and business unit growth over the last five years. At a district level, New Plymouth moved from second place in 2011 to top spot, again based on strong medium-term growth, as well as an export focus. While there is still work to do to raise the regional population, this was a positive accolade when it comes to the economic progress Taranaki has made over recent years.

Strong growth for EnergyStream Venture Taranaki’s EnergyStream.co.nz website grew strongly over the year, and continued to provide a comprehensive news channel, expertise directory and educational resource around the regional and national oil and gas industry and its supply chain. The site attracted almost 25,000 unique viewers – up 62 percent on the previous year – and over 90,000 page views – 65 percent up. Popular content on the site included the industry job listings, the regular industry activity wrap-ups, and industry data.

Presenting to Parliament Recognising that proposed amendments to the Local Government Act 2002 could have significant impacts on economic development at a regional level, the Trust submitted to Parliament’s Local Government and Environment Select Committee. The submission highlighted the risks to regional development posed by changes to the purpose of local government and recognised that the most successful model for economic development is a tripartite approach between local government, regional development agencies and the business community.

Keeping up contact Keeping Taranaki’s networks informed, the Trust send out 89 email-based newsletters, across business development, tourism, industry, job seeker, training provider, employer, exporter and iwi networks over the course of the year.

CDEM plan submission to Taranaki Regional Council The importance of regional development agencies in helping communities through the recovery and rebuild phases of a significant natural disaster became very evident in Christchurch, and in July, Venture Taranaki made a submission on the Civil Defence Emergency Management Group Plan for Taranaki to ensure it can be of most value to the region should an event occur. Since then the Trust has also become involved in the regional Public Information Management team.

Venture Taranaki Annual Report 2013

Case StudY Media

getting Taranaki featured

everaging the reach of existing media channels enables Venture Taranaki to get the region, its stories and successes in front of a substantial global audience, raising the profile and positive perceptions about Taranaki. The Trust this year continued to work with journalists coming into the region to explore or cover events here as well as directly providing content to a range of publications and programmes. An example was a seven-page feature on the region in the July 2012 issue of influential cooking and dining magazine Cuisine, which reaches over 65,000 people. The feature showcased 23 of the region’s many great eateries, attractions

and food producers, and was the result of a media familiarisation visit to the region, supported by Venture Taranaki. When fishing personality Graeme Sinclair indicated he was keen to attend the Taranaki Kayak Fishing Competition in March, Venture Taranaki helped grow the coverage of the region to fill two episodes of Graeme’s TV3 show ‘Gone Fishing’, and feature many more regional attractions in addition to the competition. The two shows screened in June 2013 to a sizable national audience.

and a range of other uniquely Taranaki experiences, resulting in an article. Over the year the Trust also worked with the national news media across a number of issues, from major events to commenting on the growth of the region’s oil and gas sector.

UK journalist David Whitely was hosted in the region for three days, resulting in a number of articles in the British media, and the Australian Women’s Weekly was supported on a visit to WOMAD

Pages from Cuisine, July 2012 Big Wave Cafe

coastal chill

Top row, from left: gelato at Lush; Jeremy Maxwell, Ozone Coffee Roasters; elixir cafe This row: Chaos cafe; Pukekura Park; Mark Wormald, The Fridge Butchery & Delicatessen Below: Keith Manley (left) and shaun Martin, Table restaurant; Arborio restaurant’s braised pork belly; the interior of Arborio

PhOTOgRAPhy TONy NyBeRg

pukekura park, anDy JaCkson/taranaki Daily news

Taranaki has a laid-back vibe and beautiful scenery, along with plenty of good food, finds Simon Farrell-Green.

C u i s i N e 151

Venture Taranaki Annual Report 2013

august 2012 Regional entry/exit signage refreshed The Trust’s immensely popular billboards on the main State Highways entering and exiting the region were updated, and continue to drive viral social media activity and positive word of mouth.

ExporTAR The Trust’s ExporTAR network of regional workshops again delivered a range of events to encourage collaboration and learning amongst our exporter community. These included a Simplifying Exporting series delivered by Go Group, a briefing from ANZ Bank chief economist Cameron Bagrie, and a Papua New Guinea export opportunities forum, which resulted in a networking group and possible trade mission. Venture Taranaki also worked oneon-one with exporters on specific growth opportunities, leveraging the Trust’s access to market intelligence and partner organisation networks, as well as delivering a regular electronic newsletter to companies currently exporting or aspiring to export.

Informing regional visitors The region’s official Visitor Guide was again produced in partnership with AA Tourism, gaining greater access to national and international distribution channels and consolidating the advertising demand on the region’s tourism operators. 20,000 copies were printed. The Trust also worked to gain profile for regional attractions in the AA 101 Must Do’s campaign. We were rewarded with nine local experiences making the national top 101, and six making the top 50: Heliview (4th), WOMAD (17th), Mount Taranaki (29th), New Plymouth’s Coastal Walkway (34), Pukekura Park (43), and the Forgotten World Highway (47).

Rebranding Engineering Taranaki Recognising the importance of growing the region’s engineering skills, capabilities and global impact, the Trust assisted its Taranaki House colleagues Engineering Taranaki Consortium to develop and implement a new logo, website and brand during the year.

Case StudY Capability Development Vouchers

Venture Taranaki Annual Report 2013

CARAC COUPLINGS: TRACKGRIP

the training funded by the vouchers has made a big difference, as has the support and information to enable us to choose the best solutions for the business,” says Carac’s Sonia Kiser.

Innovation has been at the heart of the company since John Burling started producing trailer couplings 25 years ago. Since then the focus on creatively solving problems has seen the engineering business move from strength to strength to become one of New Zealand’s most advanced cutting and prototyping workshops.

The scheme linked Carac to marketing strategists Special Eyes, who worked with them to develop a marketing plan that has helped drive their increased export orders.

series of historic buildings in downtown Eltham isn’t where you’d expect to find one of the region’s leading innovators, but they are home to Carac Couplings and their product TrackGrip which is finding favour in both the New Zealand and global markets.

TrackGrip is the latest in their growing portfolio of creations, and has rapidly elevated the company from engineer to exporter. The TrackGrip product attaches to diggers, bulldozers and other tracked vehicles to increase traction and safety, particularly in hard to access or steep terrain. “There’s just nothing comparable on the market today, and the benefits to machinery operators are enormous,” says Managing Director John Burling. “After a year we took the product to an international expo, and were inundated with orders. That meant some quick thinking when it came to growing our operation to meet demand.” Venture Taranaki were able to help out, linking Carac to a number of targeted training opportunities through the New Zealand Trade and Enterprise Capability Development Voucher scheme. The company has been able to access training providers to grow aspects of their business, including marketing, lean manufacturing, and strategic planning. “Working with Venture Taranaki has made it really easy to engage with the right people to help us grow. Having up to 50 percent of

“The voucher scheme is fantastic and we wouldn’t have been able to do a lot of the things we have if it wasn’t for the funding provided. It’s a great asset for any Taranaki business.”

“We are now a lot more structured and organised in the way we approach promotion and as a result we’ve had a lot of success from our marketing initiatives. I’m learning a lot and really enjoying it,” says Sonia. “We have learnt the skills to develop a new website, which our customers are finding easier to use, looks more professional and is driving increased overseas orders. We’re also finding the domestic market has heard of us, and that’s also making it easier to generate sales.” The Voucher Scheme was also instrumental in the company adopting ‘Lean’ production principles, which have been applied to every aspect of the business, from the office to the shop floor, and undertaking succession planning to ensure Carac can continue to grow. And the proof of this family-run company’s success is perhaps most felt not in export sales, but in the fact that John was this year able to take a month off to go on holiday, something many business owners aspire to. This year Venture Taranaki issued 228 Capability Development Vouchers to Taranaki businesses, worth over $287,000.

Venture Taranaki Annual Report 2012 9

Venture Taranaki Annual Report 2013

September 2012 Continued social media growth

ocial media channels form a key part of the Venture Taranaki’s overall communications mix, with a high reach and low overall cost. Over the year the Trust continued to build on its social platforms, which have attracted credible and engaged audiences over a number of years. The Trust’s TaranakiNZ Facebook page grew from 23,420 to 26,941 over the year – up 15 percent year on year. Of these followers, 48 percent are based in

Taranaki, 35 percent elsewhere in New Zealand, and 17 percent offshore, with Perth being the highest concentration with almost 800 followers. The @Taranaki_NZ Twitter channel also grew strongly, up 27 percent over the year to 3,168 followers. Once again strong images of Taranaki’s landscape, environment and uniquely Taranaki activities proved the most popular content themes, with high levels of sharing and interaction. The channels also proved effective in getting event information out to a relevant audience.

The success of the social media profile was recognised at the annual RTONZ Digital conference, ranking second behind Tourism New Zealand in terms of Facebook effectiveness, and third equal for Twitter – well above significantly larger RTOs with significantly larger budgets. Venture Taranaki’s self-titled business to business Facebook account – Venture_ Taranaki – also grew strongly, climbing 93 percent to 512 followers. This channel proved a useful tool for business related news and event information.

Cycle Park assistance The Trust worked alongside Taranaki Velodrome Trust to help it realise the vision of a cycle park by providing a range of marketing and communications support services which helped raise the profile of the project and deliver a further lifestyle attractor to the region.

Te Ara Puawai launched A series of illustrated interpretive signs were introduced along the Te Henui Walkway in September. Te Ara Puawai – The Pathway to Enlightenment – tells the pre-European stories of a series of landmarks along the route. The initiative fosters a walking trail that showcases the events, sites and characters that have shaped the region’s history, and is of special significance to Te Atiawa hapu. The project was supported by Venture Taranaki.

Venture Taranaki Annual Report 2013

Case StudY R&D

R&D Foundations attract global attention

aranaki is full of great business stories that very few people know about. When high-profile state owned enterprise MetService bought a 49 percent stakeholding in New Plymouth company MetOcean, one such story deservedly gained a lot more attention. MetOcean Solutions has a history of innovative marine weather products and provides an expert consultancy to local and international markets. Founded in 2005, the business now employs 20 staff, including 8 PhD scientists. It is this firm foundation in science that has seen the company take on projects of national significance including design studies and installation support services for the Kupe, Maari, Pohokura and Tui offshore facilities, as well as the initial studies for prospective fields such as the Great South Basin. The partnership with MetService will give MetOcean an international network through which to support its products and services, as well as further strengthening the science and technology resources behind the company. “The partnership with MetService offers MetOcean a fantastic opportunity to grow and deliver a more comprehensive range of products to a much bigger international audience,” says MetOcean founder Dr Peter McComb. “It’s a very good news story.” The success of MetOcean rests very firmly on strong foundations of research and development, and the company’s R&D

programme over the years has positioned it well for export growth of its science-based products and services. “We very much acknowledge the assistance we received from Venture Taranaki with our success.” MetOcean have utilised a Technology Project Funding grant from Callaghan Innovation, through Venture Taranaki, which has contributed half the funding in the R&D phase of a significant new marine forecast system for ports. The system will ultimately assist ports in their operations planning, offering highly detailed and precise information that will span not only weather and marine forecasts, but also the impacts on vessel motion. Trials undertaken in Port Taranaki have so far proven very positive. The company has also been able to bring in postgraduate tertiary students to progress smaller projects, utilising additional funding resources through Venture Taranaki. “Without Venture Taranaki’s assistance to unlock this funding we would never have been able to dedicate so much resource and time to our R&D projects,” Peter says. “It has enabled us to make our projects better, bigger and faster, and get to the all-important results stage now, not in five years’ time.” This year Venture Taranaki issued $1,643,565 Callaghan Innovation Research and Development Funding Grants to 28 projects. Grants ranged in size from $2,300 to $816,400.

Venture Taranaki Annual Report 2013

October 2012 Waikato Home and Garden Show 2012

enture Taranaki attended the Waikato Home and Garden Show in October, representing the region in the ‘Taranaki Zone’.

With support from Taranaki Arts Festival Trust, (Powerco Taranaki Garden Spectacular/ WOMAD), the Fringe Garden Festival, Forgotten World Adventures, TATATM, Te Kupenga Stone, the New Plymouth District Council’s events team, showcasing the Festival of Lights, Mike’s Brewery and Palmers Garden World, the Trust filled a large marquee and exterior surrounds with the sights, sounds and events of Taranaki. The Hamilton event saw over 30,000 attendees across its three days. Venture Taranaki distributed packs of regional collateral, engaged with countless visitors and increased our subscribers to the ‘Taranaki Talk’ visitor electronic newsletter through an entry form based promotion.

Fostering filmmakers Leveraging the high profile of Taranaki securing Tropfest NZ, the series of twelve video clips produced by Venture Taranaki last year were used to build the skills of the region’s aspiring filmmakers. The initiative appears to have paid off, as local production Cappuccino Tango took first prize in the festival while in May the annual 48 Hours film making competition saw a record number of entrants in the region. The Trust was a founding sponsor of the New Zealand arm of Tropfest, which is continuing to grow into a huge global event.

Taranaki.info continues growth Over the year the Trust’s website Taranaki.info continued to grow strongly, clocking up 73,009 more visits than the 2011-2012 financial year to reach 355,045 visits. The number of unique visitors also grew strongly, up 53,978 on the same period to 248,044. The amount of content on the site continued to grow across the year, with popular areas being the Taranaki Jobs listings, the All Blacks test match sub-site, business assistance tools and the Visit tourismfocused section.

Case StudY Swap Sides

Venture Taranaki Annual Report 2013

Turning up the heat on overseas talent attraction

n October Venture Taranaki got proactive – and creative – in our bid to attract hundreds of skilled workers to the region.

Recognising the heightened demand for skilled staff to drive regional growth, the Trust’s flagship Swap Sides campaign was boosted in October with a range of new initiatives to expand the region’s profile in the global skills market. Extending the Swap Sides initiative launched ahead of the Rugby World Cup 2011, the campaign centres on the region’s career and lifestyle opportunities, heightening awareness of Taranaki as a destination. Designed to work alongside other aspects of the Trust’s broader skills attraction arsenal, which includes the Lifestyle Toolkit, global social media channel, and Taranaki Jobs website, the campaign introduced a new animated online video starring former local and top New Zealand comedian Ben Hurley. It uses humour and scenic and lifestyle attributes to bump Taranaki ‘up the list’ of places to live and work amongst ex-pat audiences, positioning Taranaki as the place we ‘skite about’ when we define the iconic Kiwi lifestyle. The video was supported by an extensive social media and publicity campaign, and was heavily shared by expat audiences and locals alike.

Fly in-fly out workers – those who either fly out of Taranaki for contract work or are looking to move beyond the disruptive FIFO lifestyle – were also targeted through a series of quirky visuals placed in media and environmental channels in Australia’s main FIFO centres. The goal was to shift perceptions and patterns to offset the fact that 73 percent of long-term international departures from Taranaki head to Australia, while nationally that number is 61 percent. The high regional talent flow across the Tasman is driven by the strong energy sector, quantity of jobs and higher pay rates. The FIFO aspect of the campaign aims to ensure that Taranakibased FIFO workers do not relocate permanently to Australia, and encourage global FIFO workers to consider Taranaki as a lifestyle base for families and as a professional destination for the time when FIFO loses its appeal. The FIFO campaign was launched in Perth in October 2012, and extended to Queensland in 2013, with supporting digital and social media promotions. Perth is the main offshore transition point for trans-Tasman FIFO workers. In February the campaign received another boost with a collaborative marketing plan designed to leverage visitors and media exposure around the region’s summer events programme. View the campaign at www.swapsides.co.nz

Venture Taranaki Annual Report 2013

November 2012 Green Meadows Beef

hen a farming family in South Taranaki decided they wanted to take on the world they turned to Venture Taranaki for help.

Green Meadows Beef has rapidly grown from a farm near Opunake – the name comes from the famous South Taranaki surf break across the road – to a brand found in many of the nation’s top boutique stores and in the kitchens of discerning home cooks. The business began as a family affair – father Michael Carey has farmed the land for three decades, son Nick has added business and marketing expertise, and other sons Brent and Karl and wife Margy are also involved. But in a little over a year the company has grown from a grass-fed beef farm to creating a dedicated processing plant in Bell Block, innovative packaging designs and a very well positioned brand across traditional and social media. Such rapid growth can often bring its own set of challenges, so Nick turned to the New Zealand Trade and Enterprise Capability Development Voucher scheme, delivered in Taranaki by Venture Taranaki. The Vouchers were used to connect Green Meadows Beef with strategic planning advice from Staples Rodway’s expert business advisory team, which enabled them to develop a strategic plan, goals and targets and put a strategy in place to sustainably grow the business. “We now have priority areas to focus on, clear targets across a range of areas and plans in place for the next 5 to 10 years,” says Nick. “Having a clear strategy has meant we have been able to open our first butchery, bring on staff and seriously look towards export opportunities.”

Not to mention the supply of beef for the All Blacks v France test match held in New Plymouth in June and the oil and gas industry in Taranaki, as well as pop up restaurant promotions and a growing portfolio of media coverage. Venture Taranaki is continuing to work with Nick and Green Meadows Beef to help it become yet another great Taranaki success story. Vouchers are available to eligible businesses to fund up to 50 percent of a wide range of training programmes through accredited providers. Over the year Venture Taranaki delivered 228 New Zealand Trade and Enterprise Capability Development Vouchers, with a total value of $287,638.

Demand-supply analysis Venture Taranaki completed a comprehensive demandsupply analysis of upcoming major project work, shutdowns and plant turnarounds. The project required in-depth data collection from the major industrial firms in and working in the region and found that there will be a significant peak in engineering work in late 2013, resulting in a significant boom in the number of skilled workers required in the region, with corresponding impacts on recruitment, transport, accommodation and other infrastructure. The Trust’s commercially neutral status was critical to its ability to conduct this research.

Case StudY Business Mentoring

Venture Taranaki Annual Report 2013

From Olympics to Katwalk, with help from a mentor

ver since she had been part of a successful Young Enterprise Scheme team at high school, Laura Crombie had wanted to own her own business. She’s now the owner of a thriving Taranaki fashion boutique, and with help from her Business Mentor she is looking to take it well beyond the region.

“With Julie’s help I’ve been able to focus on the business and get a really good business plan together which is helping me grow to where I want to be.”

With tertiary education in design and photography, and experience running events both locally and internationally, including the London Olympics, Laura returned to Taranaki in 2012, and was looking for opportunities.

Over the year 59 Taranaki businesses were matched with Business Mentors, with guidance on aspects of business ranging from strategy to marketing to human resources.

“I didn’t have a retail background, but have been described as a shopaholic, and had styled and photographed fashion shoots,” Laura says.

“When I saw Katwalk was for sale it seemed like a great fit, plus I had three friends all independently tell me ‘I had to do this’!” Laura brought the business in December 2012, and within three months had completely redone the interior, again calling on her design background, and built a growing social media network around both the fashion and the positive lifestyle that it – and life in Taranaki – reflects. “We’re able to do things a bit differently to a lot of other fashion retailers. For example we can purchase our stock on a weekly basis, meaning we can be really responsive to things like weather or events and better meet our customer’s needs.” Recognising that while she knew where the business was going in terms of both fashion and marketing and had a great accountant to cover the financial side of things, Laura still had a gap when it came to business strategy. Her accountant steered her in the direction of the Venture Taranaki administered Business Mentors New Zealand programme, and she was matched with experienced mentor Julie Beck. “It has been fantastic, and Julie has been really good. We meet monthly, usually over a lunchtime, and there are regular emails with specific questions or advice,” says Laura.

“She sets me goals for each meeting, which is fantastic as it would otherwise be easy to get caught in the day to day aspects of the business.”

Venture Taranaki Annual Report 2013

December 2012/ January 2013 Businesses report record confidence

uilding on more than 14 years of direct research, the Taranaki Business Survey was again sent to over 1,000 of the region’s businesses across all industries, sizes and districts, in December and June. The results across both surveys showed a marked improvement from the economic downturn, with almost all standard measures returning to an upward trajectory over the year.

Most heartening were the results of the June 2013 Survey, which found confidence in both the broader economic situation and business’s own industries was at the highest level since Venture Taranaki first began the survey in 1999. The surveys also found sales confidence rebounded very strongly over the year. The flipside to this optimism is that although 34 percent of Taranaki businesses expect to take on more staff in the coming six months, a growing 31 percent are having trouble finding the skilled staff they need.

Guiding Visitors A core role of the Visitor Industry and Marketing teams is developing and distributing collateral to entice, excite and educate visitors and potential visitors to Taranaki. Over the year this momentum was continued, with the Trust’s range of visitor publications refreshed and reprinted.

COMPLIMENTARY COPY

MUSEUM AND ART GALLERIES 2nd Edition

A Venture Taranaki publication

Venture

TARANAKI Te Puna Umanga

The A5 sized guidebooks to the region’s Museums and Galleries and Parks and Gardens were both updated and enhanced for a second edition, while the fourth edition of Taranaki – A Walker’s Guide was reprinted, as were the Forgotten World Highway and Surf Highway 45 touring route guides. The most popular of the Trust’s visitor publication portfolio – Taranaki’s Must Do’s – was also completely refreshed. Read more about this on page 19.

Promoting Taranaki’s jobs The Taranaki.info/jobs website continued to support the region’s employers in their search for skilled staff. The site allows Taranaki employers to list vacancies in the region for free, and is supported by the Trust’s broader promotional activities as well as populating other websites such as energystream.co.nz. Over the year 123 new employers signed up to the site, bringing the total at the end of the year to 782, and 459 job seekers registered, peaking at 160 registrations in quarter three. The number of jobs listed in the region peaked at 112, with over 80 jobs listed at any one time.

Case StudY Oil & Gas Industry Support

Economic impact of hydraulic fracturing

Venture Taranaki Annual Report 2013

unlOcking Breaking the OldpOtential grOund

report by Venture Taranaki found the practice of hydraulic fracturing could deliver almost $800 million in GDP and over 7,000 jobs under a growth scenario, or cost New Zealand $215 million in GDP and 2,000 jobs under a moratorium. The report, Unlocking the potential: an economic impact of hydraulic fracturing of oil and gas wells in New Zealand was released in December at a series of government and industry briefings, and is the first analysis of the economic scenarios for the practice. The report was commissioned to inform balanced discussion across all impacts of hydraulic fracturing and looks at the economic outcomes of three scenarios – a moratorium, a business as usual scenario, and an expansion into emerging areas of oil and gas exploration and production. When compared to the impacts of a moratorium, a business as usual scenario – maintaining the current level of the practice – will result in an additional 773PJ of gas, 277PJ of oil, and return $10.5 billion in revenue, $5.1 billion in exports and $1 billion – $1.6 billion in royalties to the Government over the next decade. On an annual basis, this would result in an additional $215 million in GDP each year, and annual average employment of 1,986 people nationwide. Contrasting a growth model to a moratorium scenario, hydraulic fracturing could contribute $29.4 billion in revenue, $23.7 billion in exports and up to $4.4 billion in royalties over the next decade, adding $799 million in total GDP and an average of 7,386 jobs annually.

ecOnOmic impact Of hydraulic fracturing Of Oil and gas wells in new Zealand Venture

TARANAKI

Unlocking the the RoaD potential aheaD

Te Puna Umanga

Background The process of hydraulic fracturing has been around since the 1940s. It has been applied a number of times in onshore fields in the Taranaki and Waikato regions since 1989. The process of hydraulic fracturing has been around since the 1940s. It has been applied a number of times in onshore fields in the Taranaki and Waikato regions since 1989. Hydraulic fracturing has extended the life and yield of a number of existing fields, and is responsible for an increasing proportion of gas production. As technology and techniques develop, hydraulic fracturing is increasingly considered an integral component of optimising any onshore field assessments in New Zealand. There is currently considerable concern around hydraulic fracturing and its impacts on the environment. Public interest is high, with calls from some groups for a moratorium on hydraulic fracturing in New Zealand. This report does not take a position on hydraulic fracturing in relation to the environment. The Parliamentary Commission for the Environment is currently investigating the effect of hydraulic fracturing on the environment in New Zealand and will provide an informed assessment of the process and its environmental impacts.

Detailed independent analysis

Undertaken by BeRl

This report has been commissioned by Venture Taranaki, an independent economic development agency, who is interested in understanding the economic impacts of hydraulic fracturing on the New Zealand and Taranaki economies. These economic impacts are an important part of informing the debate around hydraulic fracturing by providing an assessment of the employment, GDP

and exports enabled by the ability to include hydraulic fracturing in the oil and gas production process.

hydraulic fracturing Hydraulic Fracturing is a well stimulation process used to maximise the extraction of underground resources; including oil, natural gas, geothermal energy, and even water. The oil and gas industry uses hydraulic fracturing to enhance subsurface fracture systems to allow oil or natural gas to move more freely from the rock pores to production wells that bring the oil or gas to the surface.2 Hydraulic fracturing was first used to stimulate the flow of natural gas from the Hugotan field in Kansas in 1947. Halliburton, an oil services company, performed the first commercial fracturing treatment in 1949. Hydraulic fracturing has now been used for over 60 years, and in the US alone, over one million oil and gas wells have been hydraulically fractured.3 In the United States it is estimated that 9 out of 10 wells require hydraulic fracturing treatments to remain or become viable.4 A visual example of hydraulic fracturing in Taranaki is available on the Petroleum Exploration and Production Association New Zealand (PEPANZ) website at http://www. pepanz.com/news-and-issues/issues/fracking/how-itworks-/.

unconventional gas

generally do not require well stimulation to produce.

Unconventional gas is differentiated from conventional gas on the basis of the nature of the geologic reservoirs it is found within and the types of technologies required to extract the gas.

Unconventional natural gas deposits are very diverse and difficult to characterise overall, but in general are often lower in resource concentration, more dispersed over large areas, and require well stimulation or some other extraction or conversion technology.

Conventional natural gas deposits have a well-defined areal extent, the reservoirs are porous and permeable, the gas is produced easily through a wellbore, and reservoirs

This includes gas extracted from shale formations, as well as coal seams.

United States Environmental Protection Agency (EPA). Downloaded from the EPA website at http://water.epa.gov/type/groundwater/

uic/class2/hydraulicfracturing/wells_hydrowhat.cfm on 29 August 2012. Hydraulic fracturing in New Zealand is described in the Taranaki Regional Council report (pp 3-11). 3

10 Unlocking the potential

(Energy Institute, 2012). Unlocking the potential

This report informs the national debate and quantifies for the first time the economic benefits that new technologies can deliver in helping to unlock the wealth beneath our feet, within a carefully managed risk profile.

Scenarios This analysis uses a scenario approach, which allows us to compare the future onshore activity of the New Zealand oil and gas sector under contrasting environments. Two environments incorporate hydraulic fracturing into its activity (BAU and BAU+) and one that does not (low).

implications for new Zealand’s economic future

Multiplier analysis shows the direct and total economic impact of activity in the oil and gas sector in terms of expenditure, GDP and employment. The difference between the low and high scenarios reflects the economic value of hydraulic fracturing to the economy. The analysis looks at the impact on New Zealand and Taranaki.

PJs. Onshore production then eases, with 133 PJs expected to be produced in 2022.

summary

The BAU+ scenario sees solid growth as development projects, such as coal seam gas, get underway in Taranaki. This ramps up from 2018 as oil production starts on the East Coast.

In 2011, onshore gas production was around 33 PJs. Under each of the three scenarios, onshore production changed as shown in Figure 9. Under the BAU scenario, production remains on a relatively consistent path, with production peaking in 2018 at 154

The low scenario sees production rise slightly to 2013 as existing activity flows through to production. Production then falls consistently to 16PJ by 2022.

The breakdown between oil and gas production is shown in Figure 10 and Figure 11.

figure 9 onshore oil and gas production scenarios to 2022, pJs

BAU+

BAU Low

Source: BERL

22 Unlocking the potential

Unlocking the potential

Venture Taranaki Annual Report 2013

February 2013 Delivering regional intelligence

he Trust’s popular Taranaki Trends was published in October and April, providing a centralised source of recent data about the region’s performance. The publication has been produced since 2000, and covers a range of standard measures of demographic and regional economic performance.

Monthly Visitor Statistics are also released by the Trust, helping the region’s visitor industry to get a better sense of past demand to help them plan more effectively for the future.

Measures such as Gross Domestic Product, the Consumer Price Index and Consumer Confidence are all aggregated for the reports, which are intended to provide a comprehensive single point of reference for business planning and decision making. The reports also delve into topical issues such as industry performance – and the April 2013 edition looked closely at the makeup of the region by business sector and employment, broken down into district level. The October 2012 edition looked closely at where long-term international departures from Taranaki are going, confirming that Australia has the strongest impact on our region’s population attraction and retention.

Customer Satisfaction Survey

he comprehensive annual survey of the Trust’s customers – those who have utilised our services and products over the year – again returned positive results, with 85.1 percent either satisfied or very satisfied with Venture Taranaki’s business services and 91 percent satisfaction with Trust staff. Overall, 91.1 percent of respondents stated they were likely to use Venture Taranaki’s business services again. Training, workshops and seminars provided by the Trust were the most valuable services to respondents, with economic intelligence second and the Taranaki.info/jobs website the third most valuable service.

“A great service to Taranaki and Taranaki business” “An excellent bunch of people only too willing to help” “VTT staff are always willing to help and go the extra mile. VTT is a huge asset to the province and an organisation I don’t feel gets recognised enough”

Welcoming the Caledonian Sky The Trust worked alongside Port Taranaki and an inbound tour operator to ensure the visit of the 5-star luxury rated cruise ship Caledonian Sky was a success. The Noble Caledonian Line ship brought 94 passengers and 70 crew to Taranaki for the day, with positive reviews of the region’s welcoming locals and enjoyable attractions.

In brief Throughout the year Venture Taranaki met with a wide range of stakeholders at industry and government level to further the region’s progress. Briefings were provided to, amongst many more, Prime Minister John Key, Energy Ministers Phil Heatley and Simon Bridges, Arts Minister Chris Finlayson, and numerous other Government and Opposition spokespeople. The AA, Waikato Land Transport Committee and others were briefed on State Highway 3, Treasury’s Infrastructure Unit on regional challenges, and the Ministry of Business, Innovation and Employment on regional oil and gas developments and hydraulic fracturing.

Case StudY Publications

Finding Taranaki’s Must Dos

uring a two week campaign in February, Venture Taranaki asked the public to nominate and vote for their Taranaki Must Do events, experiences, activities and attractions – the things they believe visitors to the region simply ‘Must Do, See, Eat or Drink’. The poll was to update and reprint the Trust’s existing Taranaki’s Top 50 Must Do’s brochure, which has proven to be the most popular of Venture Taranaki’s extensive publication lineup. The public were encouraged to vote in a number of ways – online through website and social media channels, via post through an entry form in the Taranaki Daily News and other regional media, via entry form at the three regional i-Site Visitor Centres, or even by phone and email. This inclusive and wide reaching approach attracted thousands of votes from right around the region and brought to light some fantastic local knowledge and experiences. The new and improved publication of community-sourced recommendations enabled Venture Taranaki to update the regional guide and map which now showcases the ‘Must Do’ experiences, a new section on regional events, and an additional list of ‘Must Eats and Drinks’ in an easy to read, A-Z listed, fold-out publication. As an incentive to voting one lucky local won the opportunity to experience the best of Taranaki with the help and collaboration of many of our regional tourism operators. Comprising of a Helicopter Flight with Heliview, Piko Valley Horse Trekking, dinner and wine at Okurukuru, a tour and fresh coffee from Ozone, dinner at Marbles Buffet, gift pack from Mike’s Organic and a double pass to the Country Music Hall of Fame – it was a Taranaki experience like no other. The winners have been featured in the newspaper, have written positive reviews for regional newsletters and websites, and spoken about their experiences at their own and regional Rotary Clubs. The updated Must Do publication is available to all regional visitors online, or in hard copy from i-SITES throughout the region and at a number of gateway locations.

Venture Taranaki Annual Report 2013

“Fabulous. Only city we have been to for a rugby test in NZ that we received an informative email before the game. Really helpful and impressed.” “Another great idea and I was also able to forward to people that hadn’t received it and were unaware of its availability.” “The pre-match information was very useful as we could see where to park or how to use the buses. Great idea including bars and restaurants too.” “The whole event was so exceptionally well organised, everything was easy and we had no problems…we felt a lot of other cities could learn from such a well-run event” The Z-Flyer information proved the most popular content, with 1,184 views, while getting to the game and bus routes, a map of Yarrow Stadium and conditions of entry also gained high viewership. A sub-site was added to the Taranaki.info website, with a comprehensive range of information covering match day logistics such as transport and parking, a full what’s on guide to special events and activities supporting the match, and stadium and game information. The site proved popular with 9,910 unique visitors in the build up to the match, peaking at 1,142 on match day.

me to Taranak WAelllBclao cks vs France, 22 June 2013 i

While the Trust’s regional information booth at WOMAD was successful at engaging with and assisting visitors, utilising the friend and family networks of these visitors to get a positively Taranaki message out was also targeted. To do this the Trust developed a picture frame and erected it in a high profile position at WOMAD, where the view captured the magic of the Bowl stage. People were then encouraged to take a photo ‘in the frame’ and share this on their social media channels to a much wider audience. The frame was a popular attraction and has since been utilised at the New Zealand Surf Festival and will continue to be a fixture at events around the province. The ‘Lunch and Learn’ series, delivered in partnership with CloughAmecBeca, has a greater focus on demystifying aspects of the oil and gas and energy sectors and presented leading national and international speakers from key players in the energy sector, such as Anadarko, Methanex and Contact Energy on innovations or issues facing the industry. The lunch breaks of the region’s business people were again utilised for learning, as the Trust continued its two programmes of lunchtime briefings. The Lunchtime Speaker Series was used to brief business and community leaders on a number of the Trust’s research projects or campaigns, including the results of the Taranaki Business Surveys, the expanded Swap Sides campaign, and the economic impact study of State Highway 3.

Encouraging business to lunch and learn

Greetings and welcome to New Plymouth and Taranaki!

These awards have only confirmed what the locals have known for years – that this remarkable corner of the country is New Zealand’s best kept secret.

Whether you’re here for the match, staying a few extra days, or already a local, I encourage you to enjoy what promises to be a fantastic test match and to get out and explore everything that New Plymouth and Taranaki have to offer! Harry Duynhoven

Mayor of New Plymouth

Things to see and do

Whether you’re in Taranaki for the weekend or Here’s just a few of the region’s events and acti

Crowded House 93-99 Devon Street The Verandah Bar will be up and running all day on Saturday, with after-match DJs and free buses to and from the game with any purchase.

Frederic’s 34 Egmont Street The Frederic’s Marquee returns, with a giant screen, fine food until late, face painting, and a family-friendly feel. Throughout the weekend there will be match-related tastings and competitions. Gusto Restaurant Breakwater Bay Cosy waterfront dining from 9am with French specials on the menu, just along the Coastal Walkway.

Lone Star 52-58 Gill Street Open from 8am Saturday and Sunday for brunch and game day celebrations.

Peggy Gordon’s Cnr of Devon & Egmont Streets Get ready for Peggy’s Big Test Weekend Street Party. Reggae Friday presents 1814, Soulovus and Katchafire from 7.30pm. On Saturday DJ Sir-Vere and Titanium play from 12-3pm (all ages) and Saturday night there’s a giant screen and a free live band after-party. Tickets from Peggy’s.

For more information:

New Plymouth i-SITE Visitor Centre Puke Ariki, New Plymouth Waterfront Phone: 06 759 6060 Email: info@newplymouthnz.com Proudly supported by:

newplymouthnz.com

Taranaki’s Regional Development Agency

www.taranaki.info

Like No Other!

Taranaki offers it all – a stunning mountain playground, fantastic surf and sea, perfect gardens and parks, an epic events calendar and a thriving regional economy. In Taranaki you’ll find companies at the cutting edge of the oil and gas, dairying, food production, engineering, sporting and superyacht industries, and there are still opportunities to get involved and ahead. We trust you will enjoy your visit to Taranaki and if you’re tempted to come back permanently then all you need to know is at www.swapsides.co.nz

Putting visitors in the frame

Yarrow Stadium New Plymouth

New Plymouth has been named the best place to live in New Zealand by North and South magazine, the best city of its size in the world by the UN-backed Liveable Communities Awards, and our Yarrow Stadium the third best rugby venue in the world by Rugby World magazine.

As with previous major events, a compact Z-Flyer publication was produced and distributed, with a range of event-day information to help attendees get to, around and from the Stadium easily. For the first time this was also e-mailed to ticket purchasers and posted online.

o ensure out-of-region visitors for the All Blacks vs France Test Match had the information needed to make the most of the event, Venture Taranaki led the development of a number of resources to help them.

Petit Paris 34 Currie Street For breakfast or brunch pop into this authentically French boloungerie et patisserie. Salt Restaurant The Waterfront Hotel

With unrivalled sea views, Salt offers breakfast, lunch and dinner. Free hot drink with every French Toast.

Resourcing event visitors C7/VT0292 Photo: Rob Tucker

Sporty’s Bar 50 Sackville Street, Fitzroy Fitzroy’s local will be running a return bus service to the game, leaving around 6.30pm.

The Good Home 21 Ariki Street The Good Home presents DJ Lukey to warm things up on Friday night, and the Steinlager All Blacks party on Saturday, with music from Ash and Aidan and live DJs. Throughout the weekend a selection of French delicacies will also be on offer.

O fe Fir or ca (ti ev br

W Th pr an

1 Th W of re O

Co Th is art pa – pe

A T

Pa Ao a 10

T O Ta hi m th

Full what’s on: www.taranaki.info/rugby

March 2013 20

Venture Taranaki Annual Report 2013

Case StudY Convention Bureau

Venture Taranaki Annual Report 2013

Convention bureau showcases region

ver Easter 823 motor homes descended on Taranaki, creating an instant village at Pukekura Park Raceway. The 2013 New Zealand Motor Caravan Association national Easter rally brought with it 45 trade displays, 80 craft displays, dozens of performances and workshops and more than 1,500 people for what has been described as the organisation’s best annual rally ever. Delivering such a large and successful event came down to a very energetic local organising committee, and comprehensive support from Venture Taranaki’s Convention Bureau. From its first meeting with event organiser Basil Dodunski in 2011, to developing the bid document, to establishing a presence at the 2012 rally in Tauranga, to the thousands of Taranaki branded satchels taken

away from the event, and media and communications support the Trust was there to help it succeed. To ensure these visitors didn’t miss any of Taranaki’s attractions, Venture Taranaki distributed over $26,000 worth of regional promotional material, which resulted in visitors staying on and discovering more of our region. Hundreds of convention attendees also took part in organised tours throughout the region, and the collaborative effort in delivering the event has well and truly put Taranaki on the map for motor caravan tourers. Over the year the Trust’s convention bureau helped a total of 34 conventions, conferences and meetings to come to Taranaki, resulting in thousands of out of region visitors.

“You said it, Taranaki is a place like no other!” – convention attendee.

Venture Taranaki Annual Report 2013

April 2013 Taranaki at TRENZ

At the forefront of oil and gas

n April the annual Tourism Rendezvous Expo New Zealand (TRENZ) – the largest internationally focused tourism event – took place in Auckland, and Taranaki was part of the action. This is the second consecutive year that Venture Taranaki has attended the event after an absence of three years, and reflected the growing appeal of the region to a global visitor industry. This year there was strong industry support of the Taranaki effort with both an accommodation cluster and Forgotten World Adventures in attendance. The region’s booth had an open-plan format and was a talking point due to the ‘living walls’ of plants and a perspex Mount Taranaki on display, all complemented by a Forgotten World Adventures rail cart and images of the Pouakai Crossing and the Forgotten World tunnels. Each entity had its own appointment stream and for Venture Taranaki this allowed more media appointments to be made than in the past, with a total of thirty-seven appointments.

he nation’s leading oil and gas and energy conference – Advantage NZ – took place in April, and Venture Taranaki used the opportunity as a chance to position the region and the Trust as pivotal to the industry’s strategic development. As principle sponsors, the Trust was able to secure a number of high profile speaking opportunities, a role in the official conference opening, extensive brand placement, and a substantial and prominent trade stand at the event.

The stand sought to reflect Taranaki’s culture of innovation, and introduced a cycle-based measure of delegate’s energy efficiency that featured videos shot along New Plymouth’s Coastal Walkway. A range of regional information and video content reinforced the region’s achievements and importance. The Trust also leveraged the event to host an exclusive ‘Taranaki Dinner’ which fostered a number of strategic discussions between local industry leaders and a range of government and global decision makers.

Taranaki in a cup The summer event season saw more Taranaki branded coffee cups circulated to the region’s cafes, further expanding the reach of the Taranaki brand and building positive perceptions around the vibrant café culture.

Case StudY Business Start-Up

Venture Taranaki Annual Report 2013

Growing Taranaki design

espite having a graphic design portfolio spanning 13 years, Karen McEldowney wasn’t looking to make the leap from employee to business owner, until the opportunity fell into her lap. Since then, with help from a Venture Taranaki Business Start-Up clinic, she hasn’t looked back, and business is booming. When the owner of the company Karen worked for – C7 Design – was looking to change direction he offered to sell the business to his lead designer. “Opportunity knocked, and even though it wasn’t a real ambition of mine it was too good to pass up. Now I really love it!” “This is definitely something that I just couldn’t have done in a bigger centre. In Wellington the costs are higher across all aspects, it’s far more competitive, and there just aren’t the same opportunities to network and collaborate,” Karen says.

“It’s just so much easier here.” Karen was already aware of Venture Taranaki’s Start-Up clinics, and booked in as soon as she had the reins. “It was a fantastic opportunity to bounce my ideas for the company off an experienced advisor, and very reassuring to know that I was on the right track and had made a good move. It was

also really valuable in putting together a plan for the business and to strengthen my ideas around where I wanted the company to go.” Business has taken off, with a number of new clients, and steady growth from her existing clients. “In Taranaki I’m finding that you can specialise – you don’t need to cover all bases to make ends meet. I’ve focused on print design and have built up a great network of other local specialists that I can work with as needed, depending on the project. “This results in full-service design without the overheads of a big agency, meaning Taranaki businesses can make the most of design to get their brand out there. It doesn’t need to be expensive or complicated to work well.” When it comes to advice to others looking to take the leap into business ownership, Karen advises joining as many business networking groups as possible – again a reflection on how social business is in Taranaki – and getting a good group of business advisors behind you. “Venture Taranaki is definitely on that list.” This year a total of 227 people attended Venture Taranaki’s free Start-up Clinics in New Plymouth, Stratford and Hawera.

Venture Taranaki Annual Report 2013

May 2013 Getting amongst APPEA

enture Taranaki again facilitated a trade mission and oil and gas industry presence at the 2013 APPEA Conference and Exhibition, working in partnership with the New Zealand Government. APPEA is the largest oil and gas industry trade event in the Southern Hemisphere, and was this year held in Brisbane from 26-29 May. With over 3500 delegates from 850 companies and 30 countries, it was important that Taranaki be positioned strongly as an attractive and innovative investment destination.

between the Trust and government bodies working alongside oil and gas, as well as gain international intelligence on upcoming projects and developments.

Three of the eight booths in the New Zealand pavilion were dedicated to Taranaki companies, ensuring the region had as strong a presence as possible to showcase its oil and gas capabilities to an influential trans-Tasman and global audience. The event also provided an opportunity to build the relationship

The conference focused on a number of issues of relevance to Taranaki’s regional development, including opportunities in the Australian economy, sustainability and safety, the challenge of meeting skill needs and enabling more widespread application of innovation.

BA5 event in Hawera Venture Taranaki teamed up with BizLink Hawera and South Taranaki District Council to deliver a Business After 5 event for South Taranaki businesses at The Hub. The event was well attended, and followed the successful quiz format, with a spectacular array of prizes donated by South Taranaki businesses the Trust has worked with over the year.

FIFO study launched in conjunction with Waikato University The Trust worked with Waikato University to commence the first comprehensive study into the impacts of trans-Tasman Fly-In Fly-Out workers on families and the community. The study’s focus is on why people choose FIFO work and what the benefits and challenges are for the FIFO worker and their family/ whānau. Taranaki workers have been targeted by the Australian oil, gas and mining industries to address their skill and labour shortages, often on a FIFO bases. Understanding more about the changing work patterns and implications for our region, will potentially help us keep more skilled workers in Taranaki.

Massey partnership delivering Under Venture Taranaki’s partnership with Massey University a total of fifteen projects from the region’s businesses were referred to Massey for expert assistance. One of these was a design project for an oil and gas industry client, which has the potential to make a positive impact on the sector. An event titled Food Futures was also delivered in the region during the year, opening a number of strategic conversations between local producers and Massey’s experts to leverage the extensive research and development capabilities when it comes to commercialising Taranaki’s great ideas.

Case StudY Lifestyle

Venture Taranaki Annual Report 2013

Meeting our population targets

aranaki’s population target of 135,000 residents by 2035 remains the greatest challenge the region faces. This number is required to retain around 2.5 percent of New Zealand’s total population, and with it our share of population-based funding models for many aspects of health, education and infrastructural funding. Over the year Venture Taranaki continued to champion the region as the attractive place to live work and play that it is. We have seen a reversal in the long-term migration trends, particularly to Australia, where the region lost a net 691 long-term residents in the 2011 financial year, growing to a net loss of 885 in 2012, then declining to a net loss of 548 in the year to June 2013. Two recent arrivals in the region ‘like no other’ are the Tyson family and Rebecca and Mike Maxim.

about its outdoor lifestyle and the work/life balance it offered,” says Rebecca.

The Tysons – Richard, Joanna and their four children aged 3 to 16 – were looking for a lifestyle change, and found it in Taranaki, moving here from Bombay, Auckland, where they had been living since returning from the UK in 1998.

A cardiac physiologist, Mike applied online from the UK for jobs in New Zealand, and was offered positions in Invercargill and New Plymouth. To help make the decision the couple had brochures sent over from Venture Taranaki, and thought Taranaki looked amazing. Mike took the job with the Taranaki District Health Board.

A regular visitor to Taranaki in his former role, Richard was well aware of what the region had to offer.

“We didn’t know anything about Taranaki, so did a lot of research to make sure it was the right choice,” Rebecca says.

“We loved that it had both a small town feel and so much going on. It really seemed to offer the best of both worlds,” he says. Richard is relishing his new role with Fonterra, Taranaki’s largest employer, and splits his time between Hawera and New Plymouth. Despite living in the rural community of Egmont Village, he is only a 15-minute commute to New Plymouth – a far cry from the 40 minutes each way he endured in Auckland. “It’s just so much easier to live in Taranaki. We wanted to live close to the mountain and get into tramping, which we’ve been able to do, and it’s easy getting to schools.” The Tysons are currently encouraging family members in Auckland to join them in Taranaki, primarily to avoid Auckland’s traffic when they go to visit. While many might be inclined to ease into married life, Rebecca and Mike Maxim chose to move to New Zealand from Yorkshire, UK, just five days after getting married. “We had never been to New Zealand before, but heard great things

“The hospital’s cardiology department staff reassured us that Taranaki was the right choice – and they were right!” While the visa and residency applications were relatively straightforward, they did take a while to complete, though the couple now considers it a very worthwhile investment. “The most stressful part of making the move was planning a wedding only 5 days before we left!” Once they were settled in Taranaki, Rebecca approached local design agency TGM to see how she could help their clients raise their profile through public relations and marketing, and soon had a permanent job. The couple used money received for their wedding to get a camper van as soon as they arrived, but easily found a more permanent place to live, renting in Oakura. “We’re paying the same to rent as we did back in the UK, but now we have a garden, a BBQ area, an open fire for winter, and we can walk to the beach with our surfboards,” Rebecca says. “The commute is spectacular, and there’s absolutely no traffic – ever. It’s no wonder Oakura came so strongly recommended!”

Venture Taranaki Annual Report 2013

June 2013 OGST celebrates 10 years

longside the development of Taranaki’s oil and gas industry has been remarkable growth in the level of skill and innovation of the region’s oil and gas support and supply chains. Ten years ago, an industry cluster was established by Venture Taranaki to coordinate a collaborative and proactive approach to industry growth, particularly in relation to the smaller and more dynamic businesses within the industry. The Oil and Gas Specialist Technologies group was the result. On 5 June 2013 the group gathered in New Plymouth to mark their tenth anniversary at a fitting celebration attended by Energy and Resources Minister Hon. Simon Bridges. Now boasting 27 members, along with the group’s facilitators Venture Taranaki, the OGST has proven itself to be an effective collaboration of complementary companies, working both domestically and internationally. Its members have world-class experience, expertise and capability in a dynamic range of specialist technical disciplines for upstream and downstream services to the marketplace.

Left to right: Hon Simon Bridges, Minister of Energy and Resources; Arun Chaudhari, Chair of OGST; Roy Weaver, CEO Port Taranaki; and Jonathan Young, Member of Parliament for New Plymouth at the OGST group’s 10th anniversary celebrations.

Energising ENEX Venture Taranaki established a popular networking lounge at the ENEX energy industry trade show in New Plymouth on 6 and 7 June. The area enabled show

delegates to learn more about the region, its lifestyle and attractions, as well as the Trust’s projects and publications around skills attraction and the oil and gas sector.

Helping the rural economy thrive To help the region’s rural businesses meet some of the challenges facing the sector, Venture Taranaki teamed up with a number of professional services firms to deliver an event in South Taranaki on future proofing and governance for farm businesses. The event was very well attended, forming the start of an ongoing dialogue between the Trust and the sector. Ensuring the conversation can continue, the event was filmed and loaded to YouTube.

Case StudY Events

Venture Taranaki Annual Report 2013

$4.53 million Economic boost to region from All Blacks vs. France test match

All Blacks return to Taranaki

he region secured its biggest international rugby fixture yet when the All Blacks took on France before a sell-out crowd of 23,436 at Yarrow Stadium.

The match brought 7,500 visitors to the region – 16 percent of whom were visiting Taranaki for the first time – injected $4.53 million into the regional economy, and boosted regional GDP by $1.76 million, an economic impact assessment of the event found. Visitors stayed an average 1.76 nights, with 58 percent in commercial accommodation and 42 percent staying with friends and families. On average they spent $298.46 each, with food and drink accounting for the most expenditure – 37 percent – while accommodation attracted 20 percent, retail 19 percent and transport, petrol and parking 14 percent. Harder to measure was the global media coverage the region received around the match. On match day TVNZ ran a story asking ‘How does Taranaki keep doing this?’ The answer is the region’s uniquely Team Taranaki approach to attracting and delivering unforgettable major events, with support from the New Plymouth District’s Major Events Fund. Match visitors stated they had a fantastic experience, with 93 percent rating the experience four or more out of five, while 92 percent rated Yarrow Stadium just as highly. Over the year the Trust used the Major Event fund to help secure or deliver a total of eleven events in the region: • Powerco Taranaki Garden Spectacular, November 2012 • Steelformers Round the Mountain Relay, November 2012 • Taranaki Round the Mountain Cycle Challenge, January 2013 • Tropfest New Zealand, January 2013

• Wells New Plymouth Half Iron Man, February 2013 • Bikes, Blues and Hot Cars, March 2013 • WOMAD, March 2013 • New Zealand Surf Festival, April 2013 • All Blacks vs. France, June 2013 • Cricket World Cup qualifier matches, January 2015 • FIFA U20 World Cup, May 2015 Events of this scale and nature result not only in encouraging visitors and media attention for the region, but in creating vibrancy and attractiveness for Taranaki as a great place to live, work and play. This is a critical asset in helping the region meet its greatest challenge – that of population attraction and retention.

“I just want to thank you for a wonderful weekend in New Plymouth. I had a fantastic time, the only disappointment being the All Blacks not complete performance on the paddock. I congratulate all involved for a great weekend – you certainly did your homework and the efforts put in by all have paid off. As I discovered your region has many exciting and interesting attractions waiting to be discovered and I will certainly be coming back to stay and would totally endorse Taranaki to anyone enquiring about things to see and do. Please keep ‘pumping’ for more All Blacks Tests. Keep up the good work.”

Venture Taranaki Annual Report 2013

Financial Performance 2012-2013 Independent Auditor’s Report To the readers of Venture Taranaki Trust’s financial statements and statement of service performance for the year ended 30 June 2013. The Auditor-General is the auditor of Venture Taranaki Trust (the Trust). The Auditor-General has appointed me, Clint Ramoo, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and statement of service performance of the Trust on her behalf. We have audited: • the financial statements of the Trust on pages 31 to 43, that comprise the statement of financial position as at 30 June 2013, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and • the statement of service performance of the Trust on pages 44 to 45. Opinion In our opinion: • the financial statements of the Trust on pages 31 to 43: º comply with generally accepted accounting practice in New Zealand; and º fairly reflect the Trust’s: - financial position as at 30 June 2013; and

- financial performance and cash flows for the year ended on that date; and • the statement of service performance of the Trust on pages 44 to 45: º complies with generally accepted accounting practice in New Zealand; and º fairly reflects the Trust’s service performance achievements measured against the performance targets adopted for the year ended 30 June 2013. Our audit was completed on [date]. This is the date at which our opinion is expressed. The basis of our opinion is explained below. In addition, we outline the responsibilities of the Board of Trustees and our responsibilities, and we explain our independence. Basis of opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements and statement of service performance are free from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers’ overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not

corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and statement of service performance. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements and statement of service performance, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the preparation of the Trust’s financial statements and statement of service performance that fairly reflect the matters to which they relate. We consider internal control in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control. An audit also involves evaluating: • the appropriateness of accounting policies used and whether they have been consistently applied; • the reasonableness of the significant accounting estimates and judgements made by the Board of Trustees; • the adequacy of all disclosures in the financial statements and statement of service performance; and • the overall presentation of the financial statements and statement of service performance. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement

Venture Taranaki Annual Report 2013

of service performance. Also we did not evaluate the security and controls over the electronic publication of the financial statements and statement of service performance. We have obtained all the information and explanations we have required and we believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion. Responsibilities of the Board of Trustees The Board of Trustees is responsible for preparing financial statements and a statement of service performance that: • comply with generally accepted accounting practice in New Zealand; • fairly reflect the Trust’s financial position, financial performance and cash flows; and • fairly reflect its service performance achievements.

The Board of Trustees is also responsible for such internal control as it determines is necessary to enable the preparation of financial statements and a statement of service performance that are free from material misstatement, whether due to fraud or error. The Board of Trustees is also responsible for the publication of the financial statements and statement of service performance, whether in printed or electronic form. The Board of Trustee’s responsibilities arise from the Local Government Act 2002 and the Trust Deed. Responsibilities of the Auditor We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001, the Trust Deed and section 69 of the Local Government Act 2002.

Independence When carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the External Reporting Board. Other than the audit, we have no relationship with or interests in the Trust.

Clint Ramoo Audit New Zealand On behalf of the Auditor-General Wellington, New Zealand

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Trusteesâ&#x20AC;&#x2122; Review For the year ended 30 June 2013 The Board of Trustees present their Annual Report including financial statements and statement of service performance of the Trust for the year ended 30 June 2013. The business of the Trust is facilitating economic development in Taranaki. The nature of the Trustâ&#x20AC;&#x2122;s business has not changed during the year under review. For and on behalf of the Trustees

Robin Brockie Chairman

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Statement of Financial Position As at 30 June 2013 NOTES

2013 $

2012 $

282,110

421,455

Trade and other receivables

77,799

42,944

Other current assets

42,062

29,955

GST receivable

168,604

45,520

Total Current Assets

570,575

539,874

Assets Current Assets Cash & cash equivalents

Non Current Assets Intangibles

49,612

64,584

Property, plant & equipment

295,453

236,864

Total Non Current Assets

345,065

301,448

Total Assets

915,640

841,322

478,724

355,196

15,099

33,610

103,465

85,715

41,442

597,288

515,963

9,000

Trust equity

318,352

316,359

Total Liabilities & Equity

915,640

841,322

Liabilities Current Liabilities Trade and other payables Funds held on behalf Employee benefit liabilities

Deferred grant Total Current Liabilities Non Current Liabilities Contractual commitments

Equity

These financial statements were authorised for issue by the Trustees on 3rd September 2013. by

________________________Chairman ________________________Trustee The accompanying notes form part of these financial statements.

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Statement of Comprehensive Income For the year ended 30 June 2013 NOTES

2013 $

2012 $

3,660,399

3,685,321

Other revenue

63,257

46,034

Interest income

42,006

33,382

21,383

3,787,045

3,764,737

25,475

24,140

Income Grant revenue

Gain on disposal of assets

Expenses Audit fee Amortisation

47,373

43,189

Depreciation

73,717

67,564

553,586

600,185

1,254,982

1,205,927

141,599

138,095

1,191,908

1,184,026

66,000

65,726

Loss on disposal of assets

104

Loss on foreign exchange

Marketing Professional fees and grants Rental and operating lease expenses Personnel costs Trustees fees

Bad debts written off

500

Other operating expenses

Net profit before tax Taxation Net profit after taxation Other comprehensive income Total comprehensive income The accompanying notes form part of these financial statements.

429,871

427,872

3,785,052

3,756,828

1,993

7,909

1,993

7,909

1,993

7,909

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Statement of Changes in Equity For the year ended 30 June 2013 Trust Equity $

Balance as at 1 July 2011

Total Equity $

308,450

7,909

Balance at 30 June 2012

316,359

Balance as at 1 July 2012

316,359

1,993

318,352

Net profit for the year Other comprehensive income

Net profit for the year Other comprehensive income Balance at 30 June 2013 The accompanying notes form part of these financial statements.

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Statement of Cash Flows For the year ended 30 June 2013 NOTE

2013 $

2012 $

Cash Flows from Operating Activities Cash was provided from: Interest

38,396

35,879

3,651,905

3,771,570

3,690,301

3,807,449

(3,571,473)

(3,706,089)

(114,850)

96,781

(3,686,323)

(3,609,308)

3,978

198,141

28,088

(32,401)

(38,514)

(139,010)

(74,821)

(171,411)

(113,335)

(143,323)

(113,335)

(139,345)

84,806

Cash and cash equivalents at the beginning of the year

421,455

336,649

Cash and cash equivalents at the end of the year

282,110

421,455

Grants and other income

Cash was applied to: Operating expenses Net GST movement Net cash from operating activities

Cash Flows from Investing Activities Cash was provided from: Proceeds from sale of property, plant and equipment

Cash was applied to: Purchase of intangibles Purchase of property, plant and equipment

Net cash from investing activities

Cash Flows from Financing Activities Net cash from financing activities Net (decrease) increase in cash held

The accompanying notes form part of these financial statements.

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Notes to the Financial Statements For the year ended 30 June 2013 1. Statement of Accounting Policies

Reporting Entity Venture Taranaki Trust is a wholly owned subsidiary of New Plymouth District Council and is a Council Controlled Organisation as defined in Part 1 Section 6 of the Local Government Act 2002, and a Charitable Trust incorporated in New Zealand under a Trust Deed dated 27 May 1998 and is domiciled in New Zealand. The Trust commenced operations on 1 July 1998. The financial statements of the Trust are for the year ended 30 June 2013. The financial statements were authorised by the Board for issue on the date they were signed.

Basis of Preparation The financial statements are a general purpose report which have been prepared in accordance with generally accepted accounting practice in New Zealand as required by clause 7.1 (4) of the Trust Deed. The financial statements comply with New Zealand equivalents to the International Financial Reporting Standards (IFRS) and other applicable financial reporting standards as appropriate to public benefit entities that qualify and apply differential reporting exemptions. The primary objective of the Trust is facilitating economic development in Taranaki, rather than making a financial return. Accordingly, the Trust has designated itself a public benefit entity for the purposes of New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS). The Trust is a qualifying entity within the Framework of Differential Reporting. The Trust qualifies on the basis that it is not publicly accountable, it has total income of less than $20 million and it has total assets of less than $10 million. The Trust has taken advantage of all differential reporting concessions available to it except for NZ IAS 7; Statement of Cash Flows, with which it has fully complied. The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

Currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar. The functional currency of the Trust is New Zealand dollars.

Measurement Base The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis are followed by the Trust.

Specific Accounting Policies The following specific accounting policies which materially affect the measurement of financial performance and financial position have been applied. • Cash Cash and cash equivalents include cash on hand and deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less. • Receivables Trade and other receivables are initially measured at fair value and subsequently at fair value less any provision for impairment. The provision for impairment has been calculated based on expected losses for the Trust’s pool of debtors. Expected losses have been determined on an analysis of the Trust’s losses in previous periods and review of specific debtors. • Payables Trade and other payables are stated at cost. Trade and other payables are non‑interest bearing and are normally settled on 30 day terms, therefore the carrying value of trade and other payables approximates their fair value. • Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Additions The cost of an item of property, plant, and equipment is recognised as an asset only when it is probable that service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably. In most instances, an item of property, plant, and equipment is initially recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at its fair value when control over the asset is obtained. Disposals Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are presented net in the surplus or deficit. Subsequent costs Costs incurred subsequent to initial acquisition are capitalised only when it is probable that service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably. The costs of day-to-day servicing of property, plant, and equipment are recognised as an expense as they are incurred.

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Notes to the Financial Statements continued For the year ended 30 June 2013 1. Statement of Accounting Policies continued Depreciation Depreciation is provided on a straight line basis at rates calculated to allocate the assets cost less estimated residual value, over the estimated useful life of the asset. Major depreciation periods are: - Leasehold alterations 10 years - Fixtures and fittings 10 years - Office equipment 3‑10 years - Motor vehicles 3 years - Other fixed assets 3‑4 years The residual value and useful life of an asset are reviewed, and adjusted if applicable, at each financial year end. • Statement of Cash Flows Cash means cash balances on hand, held in bank accounts, demand deposits and other highly liquid investments in which the Trust invests as part of its day-today cash management. Operating activities include cash received from all income and records the cash payment made for the supply of goods and services. Investing activities are those activities relating to the acquisition and disposal of non‑current assets. Financing activities comprise the change in equity and debt capital structure of the Trust. • Government Grants Grants received from the New Plymouth District Council are the primary source of funding to the Trust and are restricted for the purposes of the Trust meeting its objectives as specified in the Trust’s trust deed. The Trust also receives other government assistance for specific purposes, and these grants usually contain restrictions on their use. Council, government, and non‑government grants are recognised as revenue when they become receivable unless there is an obligation to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and recognised as revenue when conditions of the grant are satisfied. • Interest income Interest income is recognised using the effective interest method. • Leases Operating lease payments, where the lessors effectively retain substantially all the risks and rewards incidental to ownership of the leased items, are recognised as an expense. They are included in the determination of the operating surplus in equal instalments over the lease term.

• Goods and Services Tax (GST) All items in the financial statements are presented exclusive of goods and service tax (GST), except for receivables and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as input tax, then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, the IRD is included as part of receivables or payables in the statement of financial position. The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as a net operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST. • Intangibles Software acquisition Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Staff training costs are recognised as an expense when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with development and improvements of the Venture Taranaki and Energy Stream websites are recognised as an asset when incurred as the websites generate future economic benefits. Amortisation Computer software licenses are amortised on a straightline basis over their estimated useful life of two and a half years. Amortisation begins when the asset is available for use and ceases at the date when the asset is disposed of. The amortisation charge for each year is recognised in surplus or deficit. • Impairment of property, plant, and equipment and intangible assets Property, plant, and equipment and intangible assets are reviewed for indicators of impairment as at each balance date. When there is an indicator of impairment, the asset’s recoverable amount is estimated. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Value in use is depreciated replacement cost for an asset where the service potential of the asset is not primarily dependent on the asset’s ability to generate net cash inflows and where the Trust would, if deprived of the asset, replace its remaining service potential.

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Notes to the Financial Statements continued For the year ended 30 June 2013

If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. The impairment loss is recognised in the surplus or deficit. • Employee entitlements Short-term employee entitlements Employee benefits that are due to be settled within 12 months after the end of the period in which the employee renders the related service are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to but not yet taken at balance date, and sick leave. A liability for sick leave is recognised to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that it will be used by staff to cover those future absences. Long-term entitlements Employee benefits that are due to be settled beyond 12 months after the end of period in which the employee renders the related service, such as long service leave and retirement gratuities, have been calculated on an actuarial basis. The calculations are based on: • likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlement information; and • the present value of the estimated future cash flows. Expected future payments are discounted using market yields on government bonds at balance date with terms to maturity that match, as closely as possible, the estimated future cash outflows for entitlements. The inflation factor is based on the expected long-term increase in remuneration for employees. Presentation of employee entitlements Sick leave, annual leave, and vested long service leave are classified as a current liability. Non‑vested long service leave and retirement gratuities expected to be settled within 12 months of balance date are classified as a current liability. All other employee entitlements are classified as a non‑current liability.

• Provisions The Trust recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses. Provisions are measured at the present value of the expenditure expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised in “finance costs”. • Taxation Tax expense is calculated using the taxes payable method. As a result, no allowance is made for deferred tax. Tax expense includes the current tax liability and adjustments to prior year tax liabilities. • Changes in Accounting Policies There have been no changes in accounting policies. All policies are consistent with the prior period.

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Notes to the Financial Statements continued For the year ended 30 June 2013 2. Grant Revenue 2013 $ New Plymouth District Council

2012 $

2,954,000

2,805,000

60,996

Callaghan Innovation

106,743

New Zealand Trade and Enterprise

98,300

251,202

Other

501,356

568,123

3,660,399

3,685,321

2013 $

2012 $

142,507

103,994

Additions

32,401

38,513

Disposals

(6,080)

Balance at 30 June

168,828

142,507

Balance at 1 July

77,923

34,734

Amortisation

47,373

43,189

Disposals

(6,080)

Balance at 30 June

119,216

77,923

As at 1 July

64,584

69,260

As at 30 June

49,612

64,584

Ministry of Science and Innovation

3. Intangibles

Software Cost Balance at 1 July

Accumulated amortisation and impairment losses

Carrying amounts

There are no restrictions over the title of the Trustâ&#x20AC;&#x2122;s intangible assets; nor are any intangible assets pledged as security for liabilities.

4. Property, Plant and Equipment Cost

Leasehold alterations $

Fixtures & fittings $

Office equipment $

Other Fixed assets $

Motor vehicles $

Total $

2012 130,760

67,163

254,473

52,108

93,697

598,201

Additions

1,889

13,590

1,197

58,181

74,857

Disposals

(330)

(92,062)

(28,063)

(120,455)

130,760

68,722

176,001

25,242

151,878

552,603

Balance at 1 July 2011

Balance at 30 June 2012

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Notes to the Financial Statements continued For the year ended 30 June 2013 4. Property, Plant and Equipment continued Cost

Leasehold alterations $

Fixtures & fittings $

Office equipment $

Other Fixed assets $

Motor vehicles $

Total $

2013 130,760

68,722

176,001

25,242

151,878

552,603

Additions

80,851

9,472

48,687

139,010

Disposals

(48,670)

(67,134)

(115,804)

130,760

68,722

208,182

34,714

133,431

575,809

Balance at 1 July 2011

36,424

59,685

184,488

33,618

54,276

368,491

Depreciation expense

11,352

1,517

32,440

3,250

19,005

67,564

(330)

(92,062)

(27,924)

(120,316)

47,776

60,872

124,866

8,944

73,281

315,739

Balance at 1 July 2012

47,776

60,872

124,866

8,944

73,281

315,739

Depreciation expense

11,010

1,636

32,284

3,196

25,591

73,717

(43,990)

(65,110)

(109,100)

58,786

62,508

113,160

12,140

33,762

280,356

At 1 July 2011

94,336

7,478

69,985

18,490

39,421

229,710

At 30 June & 1 July 2012

82,984

7,850

51,135

16,298

78,597

236,864

71,974

6,214

95,022

22,574

99,669

295,453

Balance at 1 July 2012

Balance at 30 June 2013 Accumulated depreciation 2012

Disposals Balance at 30 June 2012 2013

Disposals Balance at 30 June 2013 Carrying amounts

At 30 June 2013

There are no restrictions over the title of the Trustâ&#x20AC;&#x2122;s property, plant, and equipment; nor is any pledged as security for liabilities.

5. Taxation 2013 $ Net profit/(loss) before tax

2012 $

1,993

7,909

658

2,610

(1,834)

(6,398)

1,176

3,788

Taxable expense

Current tax payable

Tax at 33% Plus (less) tax effect of: Non taxable income Non deductible expenditure Unrecognised tax losses

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Notes to the Financial Statements continued For the year ended 30 June 2013 5. Taxation continued Unused tax losses of $76,283 (2012: $72,719) are available to carry forward and offset against future taxable income. Exemption from Fringe Benefit Tax under section CX25 of the Income Tax Act 2007 and donee status has been declined by the Inland Revenue Department. The liability for Fringe Benefit Tax had been fully provided for in the previous yearsâ&#x20AC;&#x2122; financial statements.

6. Operating Lease Commitments Lease commitments under non-cancellable operating leases excluding GST are: 2013 $ Not later than one year Later than one year and not later than five years

2012 $

119,172

116,529

258,207

19,422

377,379

135,951

Later than five years

The total non-cancellable operating lease relates to the lease of part of an office building. The lease expires 31 August 2019, with options to vacate the premises 31 August 2016.

7. Non Current Liabilities There are no non current liabilities. (2012 : $9,000)

8. Related Party Transactions During the normal course of business the Trust purchased and supplied goods and services from and to the following related parties: 2013 $

2012 $

Aotea Services Limited. Stuart Trundle, Director. Services provided to

812

1,489

5,293

1,511

275

11,862

11,000

Services provided to

330

Services provided by

15,000

15,457

Services provided to

53,874

15,700

Services provided by

46,116

9,860

Amounts receivable from

15,658

1,258

6,114

2,300

Amounts receivable from Auckland University of Technology. Stuart Trundle is Institute of Public Policy Advisory Board Member. Services provided by Bishopâ&#x20AC;&#x2122;s Action Foundation. Stuart Trundle, Trustee. Services provided by Devon Hotel & Conference Centre. Peter Tennent, Director and holds a beneficial interest. Services provided by Economic Development Association of New Zealand. Stuart Trundle, Deputy Chairman.

Engineering Taranaki Incorporated. Stuart Trundle, Member to 31 March 2013.

Amounts owing to

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Notes to the Financial Statements continued For the year ended 30 June 2013 8. Related Party Transactions continued 2013 $

2012 $

Gama Associates Limited. Gavin Faull has a beneficial interest. Services provided by

11,000

1,054

4,500

6,000

Services provided to

2,954,306

2,805,000

Services provided by

405,547

582,252

18,690

Services provided to

Services provided by

366

Services provided to

6,255

3,065

Services provided by

11,667

265

7,091

4,795

3,000

Services provided by

26,123

18,276

Amounts owing to

6,210

370

2,467

Amounts owing to New Plymouth City Band Incorporated â&#x20AC;&#x201C; Devon Hotel & Conference Centre has a loyalty agreement. Peter Tennent has beneficial interest in Devon Hotel & Conference Centre. Services provided by New Plymouth District Council. The Trust is a Council Controlled Organisation.

Amounts owing to Painter Pete. Michelle Jordan holds a beneficial interest.

Port Taranaki Limited. Roy Weaver, Chief Executive.

Amounts receivable from Regional Tourism Organisations of New Zealand. Paul Stancliffe, Trustee. Services provided by Sport Taranaki Trust â&#x20AC;&#x201C; Peter Tennent, Trustee. Services provided by Staples Rodway Taranaki Limited. Robin Brockie, Director and holds a beneficial interest.

Taranaki Cricket Association Inc. Devon Hotel & Conference Centre has a loyalty agreement. Peter Tennent has beneficial interest in Devon Hotel & Conference Centre. Services provided by

All transactions were carried out on normal commercial terms. No provision has been required, nor any expense recognised, for impairment of receivables from related parties (2012: $ Nil).

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Notes to the Financial Statements continued For the year ended 30 June 2013 9. Employee Entitlements 2013 $

2012 $

Balance at beginning of period

85,715

75,910

Additional provision made

74,540

74,305

(56,790)

(64,500)

103,465

85,715

Annual leave

103,465

85,715

Non-current

103,465

85,715

Amount utilised Balance at end of period Current

Employee entitlements relate to employee benefits such as accrued annual leave. The provision is affected by a number of estimates, including the timing of benefits taken. All employee entitlement is expected to be consumed during the following financial year.

10. Contingencies Contingent Liabilities The Trust has no contingent liabilities at balance date (2012: Nil). Contingent Assets The Trust has no contingent assets at balance date (2012: Nil).

11. Post Balance Sheet Date Events There have been no significant events post balance date.

12. Cash Flow The net GST component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The net GST component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.

Venture Taranaki Annual Report 2013

Venture Taranaki Trust Notes to the Financial Statements continued For the year ended 30 June 2013 13. Reconciliation of Net Profit/(Loss) with Net Cash Flow from Operating Activities 2013 $ Net profit/(loss) after tax

2012 $

1,993

7,909

Add depreciation

73,717

67,564

Add amortisation

47,373

43,189

(21,383)

104

101,700

118,766

(46,962)

135,243

54,574

(166,357)

(123,084)

100,684

17,750

9,805

3,978

198,141

Add (less) non-cash items:

Net (profit) loss on disposal

Movements in working capital: (Increase) decrease in accounts receivable Increase (decrease) in payables (Increase) decrease GST receivable Increase (decrease) employee benefits

14. Key Management Personnel Key management personnel includes the Trustees, the chief executive and senior management. The compensation includes salaries and other benefits of $591,885 (2012: $573,499).

15. Capital Management The Trust’s capital is its equity, which comprises Trust capital and retained surpluses. Equity is represented by net assets. The Trust deed requires the Board of Trustees to manage its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently. The Trust’s equity is largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments, and general financial dealings. The objective of managing the Trust’s equity is to ensure that the Trust effectively achieves its objectives and purpose, whilst remaining a going concern.

16. Categories of Financial Instruments The carrying amounts of financial instruments in each of the NZ IAS 39 categories are as follows: 2013 $

2012 $

Cash and cash equivalents

282,110

421,455

Trade and other receivables

77,799

42,944

359,909

464,399

478,724

355,196

478,724

355,196

Loans and receivables

Financial liabilities at amortised cost Trade and other payables

Venture Taranaki Annual Report 2013

Statement of Service Performance For the year ended 30 June 2013

Regional Strategy

Performance Targets and Measurements

1. Team Taranaki where the goal is to build partnerships and harness the collective energies and spirit of the Taranaki people and its leaders to benefit Taranaki’s growth.

1. Team: Maintain a regional economic intelligence unit and undertake one Team Taranaki submission on key regional issue. (Source: Publish Taranaki Trends and business surveys bi-annually. Annual submission) 2. Team: Maintain connections across www.taranaki.info and social media channels. (All themes & priority areas) (Source: Google analytics and Facebook statistics)

2. Gateway Taranaki where the goal is to connect 3. Gateway: Support one gateway project per year Taranaki locally, nationally and internationally, removing the geographic issue of isolation and building on the region’s proximity and access to Australia. 3. Foundation Taranaki where the goal is to maximise the potential of Taranaki’s core industries by adding value to the regions’ traditional business sectors and enhancing business capability, innovation, productivity and export development.

4. Foundation: Facilitate $500,000 investment into regional businesses subject to central government policy (Source: Govt and other Agencies)

4. Frontier Taranaki where the goal is the pursuit of new horizons, industries and projects that foster diversification, growth, and/or perception shifts to enhance Taranaki’s regional development.

7. Frontier: Support one project with high impact potential aligned with the regional growth agenda. (Source: Business Plan)

5. Foundation: Achieve >80% Client satisfaction in regard to business support services (Source: Annual client satisfaction survey) 6. Foundation: Support two key wealth creating industry groups

5. Talented Taranaki where the goal is to create a 8. Talented: Invest $140k in management capability building for regional culture where innovation, talent and lifelong Taranaki SME’s (Source: Regional Partner Network funding) learning are valued and to ensure Taranaki businesses have the skills to support current and future needs. 6. Desirable Taranaki where the goal is to make Taranaki the preferred place to live, work and visit, in order to achieve the population target of 135,000 by 2035.

9. Desirable: Attract or retain five major events meeting NPDC criteria (>100 points) based on $850k event fund 10. Desirable: Exceed Statistics (or Tourism NZ) NZ forecast for Taranaki “arrivals” (Source: CAM)

Venture Taranaki Annual Report 2013

Vision: By 2035, Taranaki will be a progressive, growing, westward-looking province of national significance, renowned for its people, culture, talent, rich natural resources and desirable location 2012/2013 Outcomes Achieved: • 2 Taranaki Trends • 2 Business Surveys • Submission to Local Government Act 2002 Amendment Bill Achieved: • www.taranaki.info Visits up 73,009, 26% (2012: up 31,012, 24%) • Biz 2 Biz Facebook followers up 247, 93%, (2012: up 187, 340%) • ‘Taranaki Like No Other’ Facebook followers up 3,521, 15% (2012: up 3,777, 19%)

• Twitter followers up 666, 27% (2012: up 990, 65%)

Venture Taranaki Trust Directory For the year ended 30 June 2013 Nature of Business Facilitating economic development in Taranaki Business Office 9 Robe Street New Plymouth Trustees

Achieved: State Highway 3 study

Robin Brockie (Chairman) Gavin Faull Peter Tennent Roy Weaver Paul Winter

Achieved: $1,643,565 (2012: $1,093,380)

Auditors

Achieved: 85.1%

Audit New Zealand Wellington On behalf of the Auditor General

Achieved: • Oil & Gas Specialist Technologies Group • Engineering Taranaki Consortium Achieved: • “Swap Sides” skills attraction campaign. • Oil & Gas economic impact report of hydraulic fracturing • Memorandum of Understanding with Massey University • Energy Stream Achieved: $287,638

Accountants Staples Rodway Taranaki Limited New Plymouth Bankers TSB Bank New Plymouth Solicitors

Achieved: • WOMAD 2013 • Around Mountain Cycle Challenge • Powerco Taranaki Garden Spectacular 2013 • NZ Surf Festival • FIFA U-20 2015 World Cup Not Achieved: • Arrivals down 2.5% Forecast statistical series no longer produced. (2012: Forecast 2.1%, Actual 3.1%)

Govett Quilliam New Plymouth

Tel: +64 6 759 5150 Email: info@venture.org.nz Web: www.taranaki.info Facebook: TaranakiNZ Twitter: @Taranaki_NZ