venture taranaki // annual report 08
Venture Taranaki Team (from left) Michelle Warren, Front Office Executive, Wendy Turner, Administrative Assistant, Andrew Thomson, Marketing Executive, Nick Fleming, Senior Enterprise Advisor, Peter Avery, Taranaki Film Commissioner, Paul Stancliffe, Tourism Leader Michelle Jordan, Business Development Manager, Stuart Trundle, Chief Executive, Vicki Fairley, Marketing Manager Rob Trusler, Corporate Services Manager, Carrie Thorne, Project Manager, Antony Rhodes, Marketing Manager, Rebecca Buis, Executive Officer, Sarah Brotherstone, Programme Coordinator, Amokura Panoho, Project Manager Partnerships
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, TSB Community Trust, New Zealand Trade and Enterprise, Ministry for the Environment, Foundation of Research, Science and Technology, Business in the Community and numerous other private sector organisations.
Picture credits: Rob Tucker, Pip Guthrie, Venture Taranaki
Venture
TARANAKI Te Puna Umanga
www.taranaki.info
CONTENTS Chairman’s Report
04
Key Performance Indicators
20
Chief Executive’s Report
06
Audit Report
25
Board Highlights
09
Trustees’ Review
26
Achievements
10
Trust Directory
37
Executive Views & Highlights
12
Venture Taranaki Trust is the region’s development agency. 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 annual report
chairman’s report John Young
A
s the national and global economies moved into a period of muchdiscussed consolidation over the past year, there loomed a very real risk that Taranaki’s long period of regional economic growth would similarly cool. The early warning signs were there. Consumer confidence took a sharp dive in Taranaki over the year with pessimists outweighing optimists for the first time in eight years. But at a regional level that is about as bad as it got for Taranaki during the financial year. The National Bank Regional Trends report found that Taranaki’s regional economy grew 3.4% in the 12 months to June 2008, leading the country, and well above the national average of 0.8%.
In the final quarter of the financial year, the Taranaki economy grew 2.4%, almost double the growth of the second strongest region, and again fighting the national average of a 0.5% decline. Perhaps the ASB Bank described it best in their December 07 quarter Main Report, when they questioned “If only more of New Zealand were like Taranaki – how high would the NZ dollar be then?” This unexpectedly strong growth is showing no signs of abatement just yet. A major report commissioned by Venture Taranaki this year has looked at the Taranaki economy in detail, and projected that the region will continue to grow strongly to 2026.
venture taranaki annual report
The report, by Wellington-based Business and Economic Research Limited, paints a picture of a strongly performing region, particularly across the eight key sectors of oil and gas, dairy, meat processing, engineering, manufacturing, education, tourism and the public sector. The report found that these core industries will continue to grow over the next two decades, with employment expected to grow by 2.0% a year over the next 20 years. Together with the associated labour productivity gains Taranaki could see its GDP contribution grow by up to 4.7% a year. The more pressing finding of this research is that Taranaki will need an additional 16,500 staff across these key sectors by 2026 and up to 21,800 workers across the entire Taranaki economy in the next twenty years if it is to meet the staffing demands of this growth. This presents the team at Venture Taranaki with its biggest challenge to date: how to work with Taranaki employers to attract the staff that the region will need to keep up with growth. Work to meet this challenge has already begun, and it is heartening to see Venture Taranaki take a typically innovative approach to attracting additional workers. In April, Venture Taranaki teamed up with a range of other Taranaki employers and recruitment companies to take Taranaki to a range of immigration events in the UK. From these events 624 job seekers interested in Taranaki registered their details with Venture Taranaki. Some have already relocated to the region to commence new employment and add value to our economy. The Taranaki Jobs website is another strand to attracting more skilled workers to the province. Over the year job applications via the site reached 2333, with up to 160 vacancies being offered by the region’s employers in any given month. Another step towards meeting the region’s future employment demands has come from an unlikely corner, in the form of New Zealand’s first international
guitar festival, which featured 26 events over five days, with a strong emphasis on education. Visitors came from all corners of New Zealand, and feedback has been overwhelmingly positive. G-TARanaki adds to the many other events that Venture Taranaki have supported over the last year. These have included concerts by Elton John, Motorhead, the Beach Boys and Jack Johnson, WOMAD and the Taranaki Rhododendron and Garden Festival and sporting events including the ITU Triathlon World Cup, and the Yarrows Taranaki Cycle Challenge. With these events Taranaki has firmly staked its claim not only as a vibrant place to live, work and play but also, as one visiting television news team proposed, “the events capital of New Zealand.” Events not only inject a cultural and sporting energy into the province, they add to the range of attractions that drive tourism numbers. This year saw 277,477 visitor arrivals in Taranaki – up 3.2% on last year’s total, and a total of 563,029 guest nights stayed, up 2.2% from 2006/07. While attracting short and long term visitors to the region holds a major and growing importance, the Venture Taranaki team has also continued to deliver exemplary assistance to the region’s existing and future businesses. The most accessed business development service over the last year was advisory support for business start-ups – a positive indication of the region’s innovative and entrepreneurial spirit. A total of 50 clinics were provided for business start-ups. The Business Advisory Service also had another strong year, providing existing businesses with guidance and assistance to grow. A total of 1143 client enquiries were assisted over the year. Hawera’s Cool-It team won the Company of the Year award at the national Lion Foundation Young Enterprise Scheme – the programme for building young entrepreneurs – a sure sign that we have good business talent coming through the education system.
The Taranaki Film Office continued to position Taranaki as a positive and accessible location for film production, with Show of Hands, written and directed by Taranaki alumni Anthony McCarten and starring fellow expat Melanie Lynskey being filmed in New Plymouth, and due to have its premiere in the region late in 2008. Venture Taranaki’s commitment to sustainability also came to the fore this year, with the EnviroPower pilot project, which saw Venture Taranaki and the Ministry for the Environment team up with Inglewood High School to develop and implement a successful energy conservation, generation and education programme. The school reduced its energy usage by 17% and integrated energy conservation messages into almost every subject taught. The pilot also reached far beyond the school and into the wider community, with messages of sustainability being taken home by eager students. The Trust also continues to work towards becoming carbon neutral, through a range of staff education, energy use and process changes. It has been a fast-paced and successful year for Venture Taranaki. I extend a warm thanks to all board members for their dedication and hard work over the past year, and to Venture Taranaki’s Chief Executive Stuart Trundle and his team who have continued to push the limits of what we expect from a regional development agency, and ensure that the region is on track to maintain its growth long-term. The organisation is in a strong position, and I look forward to watching both Venture Taranaki and the region continue to flourish.
John Young Chairman
venture taranaki annual report
Chief executive’s report Stuart Trundle
T
he 2007/08 year was a year of
our enterprise development and
change at Venture Taranaki
training programmes, showcased the
that impacted on our economic,
region to domestic and global tourism
physical and political landscape.
markets increasing visitor numbers
Taranaki’s continued growth and
and attracted and facilitated major
the way our region weathered
cultural, media and sporting events.
the global economic storm would
The year saw physical change in
suggest our region is maximizing its
how Venture Taranaki interacts with
competitive advantages. The signs
its stakeholders, customers, and
are there – record dairy payouts,
community. In September Venture
nation-leading economic growth in
Taranaki shifted to new premises on
the year to June, a robust construction sector, and expanding retail spend.
Robe Street, New Plymouth, enabling us to be more accessible. We also launched
Over the last year Venture Taranaki
a new online presence: www.taranaki.
has been working tirelessly with our
info, bringing the Trust’s five websites
many stakeholders to promote the
together into a single portal. This site
region. We have facilitated growth
has proven popular and continues to
for many Taranaki businesses through
evolve with new content and features.
venture taranaki annual report
The 2007/2008 year also saw change
Motorhead, Jack Johnson and Westlife
together technology, marketing, public
in the regional political environment
catered to the creative and cultural
relations, and resources to create a
with the triennial local government
interests of our community. We have also
global community event. The pair have
elections. This impacted on our
had an active stake in many other events
since returned to Taranaki twice, once
communication strategy with our
in the province, including WOMAD,
to unveil a plaque commemorating
controlling organisation, and has
Yarrows Round the Mountain Cycle
their voyage, and again with Australian
resulted in a greater scrutiny of Venture
Challenge, Steelformers Around the
travel television show Getaway to
Taranaki’s activities helping us to further
Mountain Relay, Taranaki Rhododendron
showcase more of our province.
refine what we do and how we do it.
and Garden Festival, Americarna, the
We take our statutory responsibility as a council controlled organisation of New
ITU Triathlon World Cup event, the Targa Rally and the Parihaka Peace Festival.
Not all of Venture Taranaki’s energy this past year was focused on attracting visitors. Our economic
Plymouth District Council very seriously.
Taranaki also hosted the successful
development team has also notched
Our balance sheet is aggregated into
production of Show of Hands, a movie
up some major successes this year,
our parent settlor, the New Plymouth
that featured Taranaki as a backdrop to
with 77 Enterprise Training Programme
District Council, and our systems and
an off-beat love story, and showcased
workshops conducted over the year,
processes are subject to review by
the talents of two creative Taranakians;
offering 1413 free places to regional
Audit New Zealand. Our total revenue
writer and director Anthony McCarten
industry and commerce. New business
for the financial year was $3,545,786.
and Hollywood actor Melanie Lynskey.
ventures also continue to be well
The Trust maximized the investment in
The film will have its premiere in
assisted, with 242 clients accessing
the region through a total expenditure
New Plymouth on 4 November with
Venture Taranaki’s start-up services.
of $3,588,206. The Trust’s equity at the
nationwide release on 13 November 2008.
Venture Taranaki also facilitated the
end of the financial year was $299,493.
Tourism numbers were again up this
awarding of $1,053,426 in grants to Taranaki businesses over the year.
The New Plymouth District Council is
year, reflecting both a maturing of
both the Trust’s controlling organisation
Taranaki as an attractive destination and
We also took proactive steps to attract
and majority funder, and the support,
a growing range of visitor attractions
skilled workers to live and work in
guidance and funding they continue to
throughout the province. This growth
Taranaki through the taranakijobsnz.com
offer the Trust is greatly appreciated.
is closely linked to private sector
website, with 488 Taranaki employers
investment in areas such as tourism
and 1714 job seekers registered and a
Similar thanks must also be extended to our many other stakeholders, who have partnered with Venture Taranaki over the year to enable us to deliver an increasingly broad range of services, products and events. These include the South Taranaki District Council, the Stratford District Council, Taranaki Electricity Trust, TSB Community Trust, New Zealand Trade and Enterprise
products, accommodation capacity and
total of 1061 online job applications
transport and information services. It is
made through the site over the year.
heartening to see more Taranaki tourism
The ExporTar series has also gone from
operators able to meet the needs and
strength to strength, with six events over
expectations of our visitors and event
the year helping Taranaki businesses
audiences and seven local operators have
to raise their ability and readiness to
taken this to the next level by moving
export, in doing so helping to lift New
towards Qualmark accreditation this
Zealand’s global competitiveness.
year with help from Venture Taranaki.
Historically, our Trust has not
and the Foundation for Research,
Of the hundreds of thousands of visitors
maximized the participation of the
Science and Technology, Ministry for
to come to Taranaki this year, two had a
region’s Maori businesses in discussion
the Environment and many private
higher profile than most. On Sunday, 13th
on wider economic development
companies and organisations.
January thousands of people descended
issues. It was pleasing this year to
on Ngamotu Beach to welcome Justin
take a major step towards meeting
Jones and James Castrission after their
that challenge with Venture Taranaki
epic 62-day trans-Tasman kayak journey.
entering into a partnership with Tui
This mobilisation of Taranaki people
Ora Limited. The partnership has
highlights the pride and energy that
so far resulted in an impact report
we all have in our community and
into the scale and importance of
demonstrates the benefits of Venture
the Taranaki Maori economy and
Taranaki being an integrated agency,
the appointment of a dedicated
able to respond to opportunities at short
partnership project manager, laying
notice and align resources to achieve
solid foundations for inclusive Taranaki
great results – in this case bringing
business development in the future.
Again this year we have administered the New Plymouth District Council’s major events fund. While it will always be a tall order attracting major events to appeal to every taste, this year we managed to present the broadest range of artists yet to appreciative crowds at the Bowl of Brooklands, TSB Stadium, and other venues. Sir Elton John, the Beach Boys,
venture taranaki annual report
Our intergenerational focus is also
the experiences of the individuals who
Taranaki as a place to visit that is ‘like no
reflected in ongoing support of the
had economic development contact
other’. You will read more about those
Young Enterprise Scheme to grow
with Venture Taranaki during the year.
successes throughout this report.
entrepreneurs and business leaders
The results were very pleasing, with an
of the future. It was heartening to see
overall 99% of respondents reporting
23 teams from ten Taranaki schools
they were satisfied, more than satisfied, or
enter the nationwide competition, and
extremely satisfied with Venture Taranaki.
we were delighted that Hawera High School’s Cool-It won the 2007 national overall Company of the Year award.
While we are continually pushing the team to work harder and smarter, we are making the workplace dynamic and necessarily innovative. For
Looking ahead the Trust has some
that I thank both my Board and our
significant challenges to face. The largest
executives. I would like to particularly
of those challenges comes in response
extend my gratitude to John Young,
This year we also undertook some
to a major report commissioned by
who as Board Chair has steered
projects that tested our team and
Venture Taranaki into the future growth
Venture Taranaki ably through its
broke new ground in generating future
and skills needs of our region which
inception and growth to this point.
business opportunities for the region.
found that we will require an additional
These included development projects
16,500 workers in eight key industries by
for Port Taranaki that included feasibility
2026. We need to come up with fresh
studies for a blue water highway,
ideas and new strategies to meet that
Trans-Tasman linkages, and the Eastern-
demand, and we must involve every
Harbour redevelopment. We also
Taranaki business in that process.
undertook a feasibility study into a major multi-day alpine walk in partnership with the Department of Conservation, and co-ordinated major bids for international investment in the region.
I have no doubt that the coming year will continue to throw exciting opportunities and challenges our way and I have every confidence that Venture Taranaki will continue to drive Taranaki forward to exceed its immense potential.
While that strategy is still under development, it is fair to assume that it will be based on the many successes we have achieved in developing Taranaki businesses, attracting and
In June 2008 we again completed a
enabling a vibrant range of sporting
Stuart Trundle
Client Satisfaction Survey, which gauged
and cultural events, and promoting
Chief Executive
2007/08 Funding Venture Taranaki Total: $3,544,404
Central Government $380,997
Regional Economic Activity Year-on-Year growth, June 2008 4.0% New Plymouth District Council $2,666,900
Other $496,507
3.5%
Northland 0.6%
3.0% 2.5%
Auckland 0.4%
2.0%
Bay of Plenty -0.3%
1.5%
Waikato 0.8% Gisbourne 1.1%
1.0% 0.5%
Annual Revenue Venture Taranaki
Taranaki 3.4% Hawke’s Bay 0.5%
0.0%
4000000
-0.5%
3500000
-1.0%
Manawatu-Wanganui -0.4% Wellington 1.2%
3000000
Nelson-Marlborough 1.4%
West Coast 1.6% 2500000 2000000
Canterbury 1.0% 1500000 1000000
Otago 1.9% 500000 0
Southland 2.8% Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
venture taranaki annual report
Board of trustees Roy Weaver
“At Venture Taranaki, we are here to encourage new enterprises and projects that are financially responsible, and will add diversity and strength to our local economy.
“Never has this been more important than in the current international economic environment of instability, recession and fear.
“Venture Taranaki has grown and matured into an economic development agency capable of assisting the region to weather the current recessional climate.”
“The Trust also excelled culturally this year, enabling an outstanding range of events and performers to add an unprecedented vibrancy to the province, and facilitating one movie, Show of Hands, to be filmed in the region and another, The Mark of the Lion, to get part of the way there. We look forward to the latter project regaining momentum.
“Transport links to the rest of the country remain critical to Taranaki’s growth, and the Trust’s input into the New Plymouth District Council’s future transport strategy sought to ensure that efficient and sufficient corridors are maintained for the future. Coastal shipping will also have a positive impact on the region, and it was heartening to see Government commitment to growing this.”
“This is very evident in Taranaki’s event strategy where G-TARanaki was a valiant attempt to develop more high quality Taranaki owned events which are needed to bolster the visitor and tourism industry.
“A range of more cost effective locally owned events benefit not only those linked to the visitor and tourism enterprises but is great for the local people and their pride in Taranaki.”
already have in the region.
skills needs and was again a strong focus the Trust this year.
Sir Paul Reeves “Venture Taranaki has this year broadened its commitment to the province. The Trust’s groundbreaking relationship with Tui Ora Limited and the subsequent report into the size and importance of Taranaki’s Maori economy is perhaps the best example of this more holistic approach to Taranaki’s long-term growth.
Paul Winter “While the people and businesses of Taranaki continue to enjoy some of the benefits of white gold (milk) and black gold (oil) in stimulating the local economy, there are many more opportunities to be seized to ensure no people or businesses are left behind in achieving their potential.
Janine Smith “The major report undertaken by the Trust into the future of the Taranaki economy projected a very positive future for the region, but reinforced the need to grow the skills base in Taranaki. This needs to be done through active recruitment strategies and, perhaps more importantly, by developing the skilled people we
“The Young Enterprise Scheme is a strong first step to building this skill and leadership base, and it was very encouraging to see a strong uptake from Taranaki schools. Building the capabilities and competencies of the businesses already established here will also help the region meet future
“This continued involvement in all levels of the Taranaki business lifecycle, alongside more strategic economic development initiatives and interventions, are critical to securing the region’s economic future.”
Robin Brockie “The current year has been challenging for the Taranaki business community as it has responded to the economic impact of rises in commodity prices, particularly within the dairy and oil and gas sectors of our regional economy. That community has also not been immune to the vagaries of the financial markets that have had a significant effect on the economic
decisions that our business community have had to make. The nature of this environment will continue into the future. This will place further demands on the facilitation role that Venture Taranaki has to play in leading, supporting and promoting the successful economic development and outcomes of our province and its people.
The growth in our population and the building of its capacity to meet the productive demands of future regional development opportunities has been identified as one of the most compelling challenges to face our business community. Venture Taranaki is committed to assist in meeting that challenge among others with the continuing support of the community it serves.” venture taranaki annual report
Achievements 07/08 Tourism • Trade mission to the UK and Australia for International Marketing Alliance – Western North Island • Attended the Tourism Rendezvous Expo annual showcase (TRENZ) • Inclusion of Taranaki product and profile in four international wholesale brochures
• Seven Taranaki activity operators assisted with Qualmark • Assistance given to over 100 local tourism operators • 277,477 visitor arrivals, up 3.2% on last year • 563,029 visitor nights stayed in Taranaki, up 2.2% on last year
Economic Development • 242 clients accessed Venture Taranaki’s start-up services with 50 start-up clinics provided
• Economic impact assessment completed for the oil and gas industry
• 77 Enterprise Training Programme workshops held, delivering training to Taranaki businesses
• Oil and Gas specialist technology cluster exhibited at the New Zealand Oil and Gas Expo
• Satisfaction survey showed 99% of economic development clients satisfied with Venture Taranaki
• Bid to attract international pilot training school to Taranaki
• Facilitation of grants totaling over $1.05 million to Taranaki businesses • Four Maori Trustee training programmes facilitated by Venture Taranaki • 23 teams from 10 schools entered Young Enterprise Scheme. ‘Cool-It’ win the national award for 2007. • Taranaki jobs site attracts 1744 job seekers, 1061 online job applications, and 488 Taranaki employers. • Successful trade mission to the UK to attract skilled migrants, accompanied by regional employers • 51 mentor matches made with Taranaki businesses • ExporTar forum continues with 94.7% of clients satisfied or greater with services offered by the forum
• Bid to attract international investment to Central Taranaki • Major report into Taranaki industry projections to 2026 commissioned and released • Partnership with Tui Ora Limited to undertake research into Maori business development and capacity building • Independent community good study on proposed EDH shows strong regional support for development • EnviroPower pilot project at Inglewood High School completed, resulting in 17% reduction in energy consumption • Feasibility study into viability of Three Peaks multi-day walk • Trans-Tasman studies into opportunities for Port Taranaki • Collaborative solution project for Taranaki food sector employers seasonal labour needs completed
Film • Show of Hands filmed exclusively in Taranaki, with premiere in New Plymouth in November 2008
• Film Venture Taranaki attended AFCI Locations Expo, Santa Monica, USA
• Fat & Thin productions Charles Upham film project ‘green-lit’
venture taranaki annual report
10
Funding and Support • Sir Elton John, TSB Bowl of Brooklands, December 2007
• AmeriCARna 2008
• Beach Boys, TSB Stadium, November 2007
• Dunlop Targa Rally 2008
• Motorhead, TSB Stadium, October 2007
• TSB Festival of Lights 2007/08
• Jack Johnson, TSB Bowl of Brooklands, March 2008
• Top Shop 2008
• Westlife, TSB Stadium, May 2008
• Westpac Business Awards 2007
• WOMAD 2008
• Steelformers Taranaki Round the Mountain Relay 2008
• Taranaki Rhododendron and Garden Festival 2007
• G-TARanaki International Guitar Festival 2008
• ITU World Cup Triathlon 2008
• Arrival of first Trans-Tasman kayak crossing
• Yarrows Round the Mountain Cycle Challenge 2008
• Parihaka Peace Festival 2008
Media visits and coverage • De Duinstreek (Netherlands), July
• TVNZ Breakfast, March
• Travel Memo, September
• Intrepid, April
• AA Directions, September
• New Zealand Marketing, April
• The Naki, like no other: Manawatu Standard, October
• Explore Taranaki, The Motor Caravaner, April
• Honda Car Magazine, October
• Energy NZ, April
• The Nederlandse Vliegvisser (Netherlands), October
• Burkes Backyard, April
• Silverkris (Singapore), November
• New Zealand’s most scenic cricket ground, Gazette and Herald (UK), April
• Going Down Under (Netherlands), December • Picture perfect Taranaki Region, Sunshine Coast (Australia), December • A weekend in North Taranaki, North and South, January • Neuseeland (Germany), January • Bright, January • Hosted British cricketing legend and BBC reporter Bill Frindle, March
• The Business, NZ Herald, May • Weekend Gardener, May • Central Today, June • G-TARanaki, North and South, June • Australian Notebook, June
Regional intelligence • Four Taranaki Trends publications completed
• Four Taranaki Talk newsletters completed
• Six Enterprise News newsletters completed
• Two Business Surveys completed
Submissions • Draft Budget 08/09 (New Plymouth District Council)
• Hectors and Maui Dolphin Threat Management Plan
• New Plymouth Transport Study (New Plymouth District Council)
• Sea Change Draft Strategy (Ministry of Transport)
Publications • 2007/08 Visitor Guide • Autumn tabloid – domestic and international editions
• Postcard to all Taranaki households to send to friends and family nationally and internationally
venture taranaki annual report
11
EXECUTIVE VIEWS & HIGHLIGHTS 07/08
Paul Stancliffe Tourism Leader
It has been well documented that the global economic environment was going to impact heavily on the tourism sector, and that New Zealand should brace itself against a major downturn in International visitors. This market is important to the region and visitor numbers have grown considerably since we became actively involved in the marketing of Taranaki directly into key markets of the United Kingdom, Germany and Australia. With the international situation in mind a major effort was put into creating avenues that would help fill potential gaps and grow domestic visitor numbers. Events have become a great attractor of domestic visitors and this avenue continues to showcase the region as a dynamic events destination. A regional initiative for attracting domestic visitors was the ‘101 Must Do for Kiwis’ which rolled into a national campaign partnership with the Automobile Association.
This and the autumn domestic campaign further highlighted the many facets of the region as a reason to visit. The culmination of these initiatives saw positive growth of the domestic visitor market. Media coverage of Taranaki also continued throughout the year, with International television crews filming a number of features and print media coverage also increasing with a focus on the mountain, walking, surfing, gardens and our unique history and culture. The Internet continues to grow as a critical research and decision making tool, and the redeveloped Taranaki.info website has attracted a high number of visitors. This will continue to be an area of investment as online technologies become even more dominant. The site will continue to be refined alongside collateral and other new initiatives to create further awareness of our region – like no other.
venture taranaki annual report
12
Tourism highlights AA 101 Must do’s for Kiwis Campaign Taranaki people could vote for their favourite Taranaki leisure experiences with the creation of the AA 101 Must-do experiences. The top 20 were promoted throughout 2008 in conjunction with AA Tourism.
Picture Perfect Region The Sunshine Coast newspaper ran two articles on Taranaki around the New Plymouth to Mooloolaba Solo Yacht Race. The main article, ‘Picture Perfect Taranaki Region’ showcased a number of operators and activities that were included in the media familiarisation earlier in the year.
Taranaki in Autumn An autumn campaign in the form of a supplement was produced for domestic travelers. The supplement focused on eight great experiences; Forgotten World Highway 43, Surfing, Mokau River, waterways, gardens, pampering and of course the Maunga, and was distributed through i-SITEs, Koru lounges at airports servicing Taranaki, into Australia and globally into Tourism New Zealand offices and the travel trade.
International media ‘Around the World in 80 Gardens’ from the UK visited the Forgotten World Highway and Te Kainga Marire garden. A Japanese crew filmed surf breaks along SH45 for the DVD ‘Surfing New Zealand’. Wakeboarding on Lake Rotorangi also featured on Australian television.
Qualmark accreditation Seven Taranaki activity businesses have worked towards Qualmark accreditation this year, bringing the potential businesses accredited to over 50. These businesses now have the highest profile on major tourism websites.
Growing Taranaki Tourism Fourteen business assistance tools were developed for local tourism operators, answering many of the questions we receive. These are available on the LTO section of the website. We also received New Zealand Trade and Enterprise funding to run a high impact tourism programme in 2008/09.
Walk Taranaki A feasibility and economic impact study into the proposed Three Peaks Walkway on Mount Taranaki was undertaken in conjunction with the Department of Conservation. Though the study showed that it was not feasible to continue with a major multi-day walk, it has resulted in the creation of a ‘Walk Taranaki’ booklet showcasing 30 walks around the region including the mountain.
Taranaki out there Taranaki was represented at major trade events in the UK, Australia and TRENZ and MEETINGS in New Zealand, and consumer shows in Sydney and Melbourne.
venture taranaki annual report
13
Vicki Fairley Marketing Manager
After one of Taranaki’s recent events, the e-mails of thanks flooded in. One particular e-mail put the visitor’s happiness with the event very succinctly“it damn well makes you want to live here.” That is, in a nutshell, a major aim of Venture Taranaki’s marketing and events strategy. The Trust seeks to attract not only visitors to boost the region’s tourism and business sectors but also potential migrants - whether these migrants simply hop in the car and travel down from Auckland or fly in from more exotic destinations - to fill the skill gaps that will become ever more prevalent in the next few years.
In a highly competitive market, Taranaki must position itself as the destination of choice. The region needs to be perceived as vibrant, exciting and offering all the benefits, assets, and activities of a major city without the accompanying traffic jams and big city problems. To ensure we attain this objective, the Trust will in 2008 be initiating a benchmark study to determine the level of vibrancy that exists in the region as perceived by both residents and visitors. This will form a platform against which we can judge our performance each year to make certain the Trust’s activities are effective in maintaining and improving our city profile. The objective over the next few years must be for Taranaki to remain ‘top of mind’ as a region for people to live, work or play in.
venture taranaki annual report
14
Marketing and event highlights Kayakers arrival In January James Castrission and Justin Jones made a historic journey, crossing the Tasman by kayak. Though originally aiming for Auckland, the pair ended up in New Plymouth after 62 days at sea. With very short notice of their imminent arrival New Plymouth pulled out all stops and delivered a welcome party ‘like no other’. Bands, the big screen and live broadcasting from the local radio station added to the atmosphere as 10,000 people lined the foreshore and Ngamotu beach to greet the intrepid travellers. James and Justin were completely overwhelmed by the welcome and have since been back to New Plymouth twice to spend time in what is now one of their favourite locations.
Ratepayer postcard How do we get Taranaki promoted internationally? Well one way is to send a postcard featuring terrific imagery to all ratepayers in the District urging them to send it to friends and family overseas! In January Venture Taranaki did just that with phenomenal feedback from the public – an awesome way to remind those on distant shores just how beautiful Taranaki really is.
Taranaki Surf Lifesaving Where do tourists go? – One place where visitors and families from out of town congregate are our spectacular beaches. An important part of ensuring visitors enjoy the experience and remain safe is the provision of lifeguards. This year all lifeguards were wearing rash vests and togs branded with the Taranaki brand – ‘like no other’ – profiling what Taranaki stands for and reaching the tourist market all at the same time.
Events like no other What a season! From the Beach Boys to Motorhead and Westlife – there was something for everyone. Elton John was a real highlight and although the day was wet and cold – as soon as Elton started performing a huge rainbow appeared above the stage – an amazing way to welcome such a talented star. Jack Johnson completely packed out town with visitor centre employees even taking home groups of fans so they had a bed for the night! And many mums and daughters thoroughly enjoyed Westlife and screamed the stadium down. Complemented by The Taranaki Rhododendron & Garden festival, WOMAD, AmeriCARna, Yarrows Cycle Challenge and the ITU Triathlon – it was truly a summer to be remembered!
Showcasing Taranaki A growing number of national media channels are tuning in to the continual success stories that are emanating from Taranaki. We have continued to gain media exposure for our dynamic events programme, lifestyle attractions and unique natural environment. This year also saw a greater media focus on the region’s economic success stories, perhaps best showcased by a major five page story in the New Zealand Herald’s The Business magazine. There are still many untold Taranaki stories and the challenge remains to get them told.
venture taranaki annual report
15
Michelle Jordan
Economic Development Manager The 07-08 year bought about a busy period for the economic development arm of Venture Taranaki. The high demand for key business services – start-up support and business capability training in particular, combined with a number of intergenerational projects are evidence of the region’s drive to sustain and build on its recent successes on both the domestic and international fronts. The release of an industry projections report looking forward to 2026, commissioned by Venture Taranaki, created much interest and discussion across the entire regional economy. A particular focus of the report was on skills acquisition and what it’s going to take to ensure Taranaki maintains and optimises its growth potential in coming years. This research forms the basis of what will be a strong focus on skills and labour in
Thinking globally, the ExporTar forum facilitated by Venture Taranaki has seen Taranaki’s exporters exposed to expertise on several offshore markets, given access to networks needed to develop export targets and has contributed to iconic Taranaki business Yarrows (The Bakers) Ltd taking away the 2007 Food & Beverage New Zealand Exporter of the Year award. With the changing global economy, Taranaki is well positioned to maintain a strong presence and withstand any adverse change better than most. However, smart business practice, access to quality capability building and market intelligence, along with robust planning for the future will become even more critical to success. Taranaki’s business community must be responsive to change and having shown its ability to do just that in the past, will no doubt do so again.
the coming year.
venture taranaki annual report
16
Economic Development Highlights Looking to the future The Taranaki Industry Projections Report: 2006 – 2026, commissioned by Venture Taranaki and undertaken by BERL, projected that the Taranaki economy will grow at a faster rate than national economy over the next 20 years. To meet this growth, 16,500 additional workers will be needed across eight key sectors.
Building Taranaki businesses Venture Taranaki facilitated over $1,050,000 of grant funding to Taranaki businesses this year. We also delivered close to 80 Enterprise Training Programme workshops to build capability amongst a wide range of Taranaki businesses.
Building Taranaki skills The Taranaki jobs website, www.taranakijobsnz.com, has seen continued growth over the year, with more and more Taranaki employers and job-seekers from all over the world logging in to advertise or find jobs. On a less digital level, Venture Taranaki facilitated a successful trade mission to the United Kingdom this year, which sought to attract even more skilled migrants to the region.
Client satisfaction This year’s customer satisfaction survey of people who had used Venture Taranaki’s economic development services found that 99% of respondents were satisfied or greater with Venture Taranaki.
Eastern Harbour Redevelopment An independent community good study was undertaken this year on the proposed Eastern Harbour Redevelopment at Port Taranaki. The study found strong regional support from both the public and the business community for the development.
ExporTar The success of the ExporTar forum for Taranaki exporting businesses continued this year with a highlight being the awarding of the 2007 Food & Beverage NZ Exporter of the Year to Yarrows (The Bakers) Ltd. A number of Taranaki companies were also invited to join highly competitive national business development programmes designed to help these businesses achieve in the global marketplace.
venture taranaki annual report
17
Rob Trusler
Corporate Services Manager One of the objectives enshrined in the Trust’s Statement of Intent is to support sustainable business growth. A common definition of sustainability is ‘the present generation meeting its needs without prejudicing the ability of future generations to meet theirs’. With this aspirational goal in mind the Trust went looking for ways it could promote sustainable development. What better way to bring about intergenerational change than through education and it was Inglewood High School that benefited from the Trust’s intervention into energy conservation and renewable energy generation. The pilot project, affectionately known as the EnviroPower project, gained co-funding support from the Ministry for the Environment and before long took on a life of its own, driven by the enthusiasm of the school and its staff and students. The project had four dimensions to it. The first was to reduce energy consumption through conservation, the second was to take the learned outcomes back into the
student’s homes, the third was to integrate and relate learned outcomes back to curriculum areas and the forth dimension was to actually generate some renewable energy. The results exceeded expectations with electricity consumption being reduced 17% year on year, students reporting the project brought the science to life in the real world and an impressive array of renewable energy generation in the form of solar hot water, solar photovoltaic panels and a wind turbine. The project to date has achieved two environmental awards. The Trust also took its own responsibilities to sustainability seriously with a number of initiatives aimed at energy conservation including downsizing the car fleet, relocating to more energy efficient offices, changing to a 100% renewable energy supplier and rekindling enthusiasm for recycling. Once all that can be achieved the Trust will look to balance its residual carbon emissions with carbon credit offsets with the ultimate goal of becoming CarboNZero certified.
venture taranaki annual report
18
Peter Avery
Taranaki Film Commissioner Taranaki continued to build a reputation as a credible and supportive filming location this year, most publicly through a project that began life under the name Endurance. The finished film Show of Hands will hit New Zealand screens in November 2008. Venture Taranaki’s contribution of funds was enhanced by a group of local investors to help bring this project to life. The film proved that Taranaki can host a small budget contemporary urban movie, and that travel and accommodation pressures are balanced by the level of cooperation, talent and locations available here. It would have been difficult to complete a project of this nature anywhere else, particularly in the lead-up to Christmas. The production left with a high level of satisfaction with the support they received from the region and from the New Plymouth District Council, who again responded enthusiastically to the varied demands of film production. Former New Plymouth actor Melanie Lynskey starred in this offbeat love story, written and directed by Anthony McCarten, also from Taranaki. The other major film to get out of the starting blocks this year was Mark of the Lion, which Film
Venture Taranaki assisted with location scouting and hosting visiting personnel. Film Venture Taranaki was again represented at the AFCI Locations 08 in Santa Monica, with the support of FilmNZ. This event again saw a lot of interest in New Zealand as a filming destination by independent projects. Taranaki continues to attract interest as an alternative for a pristine Japan, and in February we hosted a Japanese producer and director looking to locate a Ninja story here. Despite two visits and very positive feedback the production was not able to make the budget leap necessary to bring the production to Taranaki. Korean Director Lee Hyeon Seung visited in November with assistance from the Ministry of Foreign Affairs and Trade. Lee is the Chair of the Korean Directors Guild and left very impressed with filming possibilities in the region. Director Michael Apted and executive producers from Disney and Walden Media sparked off visits by scouts looking for locations for the Narnia sequel ‘Voyage of the Dawn Treader’. The visual effects and line producer became very enthusiastic about the New Plymouth proposal, though ultimately the decision was made to locate this project in Mexico.
venture taranaki annual report
19
Key Performance Indicators TARGET KEY PERFORMANCE INDICATOR
ACTUAL ACHIEVEMENT 2007/2008
BUILD A SUSTAINABLE FUTURE Trust Carbon Neutral Project Energy Conservation initiative within Venture Taranaki Trust.
Ongoing
Energy Conservation & Renewable Energy Generation in Schools Continue work with Taranaki secondary schools to promote and demonstrate energy conservation / renewable energy generation technologies tied to school curriculum. • Continue to project manage implementation of 2007/08 Inglewood High School energy project.
Completed
• 15% reduction in kWhs consumed from national grid over a 2007 base.
Achieved
• Positive feedback from teaching staff on student response to interventions and impact on curriculum delivery, educational outcomes and conservation behaviours.
Achieved
FOSTER INTERNATIONALLY COMPETITIVE COMMUNITIES Young Enterprise Scheme (YES) Competition between school teams to establish and run businesses. • More than 20 teams participate.
Achieved
• Sponsorship of Education Taranaki to deliver YES to standards determined by Enterprise NZ Trust.
Achieved
Regional Skills Research and identify skill gaps in regional economy and work with appropriate partners to develop strategies and tools addressing gaps. • Research and identify skill gaps in the regional economy and development of strategies and tools to address gaps.
Ongoing
• Facilitate a scholarship to international executive management training programme (INSEAD) for three regional executives.
Ongoing
• Maintain and grow Venture Taranaki Trust regional jobs website, www.taranakijobsnz.com.
Achieved
• Review L&D website, www.develop.org.nz.
Achieved
Governance Capability To ensure regional organisations have access to skilled governance resources. • Build database of potential directors.
Achieved
• Facilitate governance training and capability building.
Achieved
• Provide a central one-stop-shop for information on governance support available in New Zealand.
Achieved
venture taranaki annual report
20
TARGET KEY PERFORMANCE INDICATOR
ACTUAL ACHIEVEMENT 2007/2008
FACILITATE BUSINESS START-UPS Business Start-Ups Provide sign-posting / referral service for start-ups and potentially self-employed. • Provide initial client assessment service including draft business plan assessment as appropriate.
Achieved
• Provide minimum 20 clinics per year for start-ups.
50
• Referral to commercial provider.
Achieved
• Post contact satisfaction with Venture Taranaki Trust service.
Achieved
Business Investment Assist and facilitate sustainable wealth creating businesses with significant growth potential to establish in the region. • Five clients assisted.
13
• One business start-up.
2
GROW EXISTING BUSINESSES Business Mentoring Providing volunteer time from mentors to businesses needing guidance – linked to national Business Mentors NZ programme. • 60 mentor matches.
51
• Independent survey by Business Mentors NZ indicates an above-average performance for service quality.
Achieved
Business Advisory Service - Foundation Business advisory service linking business community and Trust, providing a range of guidance and business assistance. • Provision of business advisory “help service” through efficient use of direct contact, call centre and web enabled “information hubs”.
Achieved
• Maintenance of business toolkits, including client self-assessment / self help kit options.
Achieved
• 500 client enquiries assisted.
1143
• Level of post contact satisfaction with Venture Taranaki Trust service.
Achieved
Regional Intelligence & Communications Regional intelligence delivered by Venture Taranaki Trust provides Taranaki businesses with statistical data, sector research and localised indicators useful for business planning and investment. • Taranaki Trends – produced at least three monthly.
Achieved
• Business surveys – undertaken six monthly.
Achieved
• E-News, electronic newsletter – six editions per year.
Achieved
• Website – maintained and updated every two weeks.
Achieved
• Project research undertaken as defined by Venture Taranaki Trust.
Achieved
venture taranaki annual report
21
TARGET KEY PERFORMANCE INDICATOR
ACTUAL ACHIEVEMENT 2007/2008
Grow Existing Businesses Celebrating Business Excellence Historically the trust has run Top Shop – now contracted to a third party. • One event celebrating business excellence in Taranaki.
Achieved
PROMOTE NATIONALLY COMPETITIVE, HIGH GROWTH BUSINESS SECTORS Enterprise Training Programme To upskill and build capability of business owners and operators of regional SMEs, helping them develop and grow their businesses. Achieved through the delivery of coordinated training and development programme. • Programme delivery as per New Zealand Trade & Enterprise contract.
Achieved
• Greater than 80% satisfaction by attendees.
Achieved
Film Office Promoting Taranaki as a film friendly location for film and TV, and to successfully attract and maximise economic returns from such activity. • Provision of film unit to proactively seek and respond to prospective film location opportunities.
Achieved
• Oversee and promote Taranaki Film Commission Fund as an equity investment into film attraction for region.
Achieved
• The NZ Film Commission continues as joint partner in the Film Commission Fund (NZFC) and to obtain 10% of matched funding.
Achieved
Oil & Gas Specialist Technologies Cluster Venture Taranaki Trust continue to support this programme for the sector which includes business networking, upskilling, coordinating marketing endeavours and market intelligence. • Provision of facilitation services to assist implementation of KPIs contained in cluster business plan.
Achieved
• Actively foster industry networking.
Achieved
• Regular programme of meetings.
Achieved
• Building recognition of cluster capability.
Achieved
• One report on market intelligence to strengthen local collaboration.
Achieved
Maori Business Development / Relationship Building Acknowledging growing contribution of Maori to Taranaki economy and need to continue to build relationships and evolve understanding. • Assist with capacity building.
Ongoing
• Continue with scholarship programme.
Underway
High Growth Business Support Targeted, customised assistance provided through a dedicated business advisory service to medium-high growth and selected “star” businesses to maximise growth. • A group of 10 – 20 medium-high growth businesses receiving dedicated client management.
Achieved
• Level of post contact satisfaction with Venture Taranaki Trust service.
Achieved
venture taranaki annual report
22
TARGET KEY PERFORMANCE INDICATOR
ACTUAL ACHIEVEMENT 2007/2008
PROMOTE NATIONALLY COMPETITIVE, HIGH GROWTH BUSINESS SECTORS ExporTar Targeted, customised assistance to companies seeking to grow through exports. • Continue to build network of Taranaki exporters.
Achieved
• Deliver a range of information seminars, exporting training programmes, and networking opportunities (minimum of five).
6
• Level of post contact satisfaction with Venture Taranaki Trust service.
Achieved
High Impact Projects – Taranaki Growth Fund / New Opportunity Response Capacity To maintain in-house capacity to respond to key high impact opportunities as they emerge. To create a contestable growth fund. • To identify projects offering significant benefits to regional development and to undertake appropriate due diligence.
Ongoing
• 3 – 4 grants annually.
2
• Quality of response assessed by the management of the firm(s) involved and reported to Council.
Achieved
Business Grants Service Active promotion, negotiation and facilitation of grants to assist the establishment, research, development and growth of the region. • Grants totaling at least $500,000 approved to Taranaki businesses.
$1,053,426
Port Hinterland Redevelopment To progress potential commercial development with various stakeholders to add value to Port Taranaki as a strategic regional asset. • Investigation of Eastern Harbour redevelopment including recreational marina.
Ongoing
• West coast portal projects.
Ongoing
• Progress reported to Council and Regional Council – Council satisfaction with progress and quality of outcome.
Achieved
Iconic Tourism Product / Three Peaks New tourism product in the form of an iconic walking track. • Support of Department of Conservation investigation into feasibility of Three Peaks development.
Achieved
MRI Development To identify an MRI candidate and to build business case for submission to New Zealand Trade & Enterprise for funding. • One business plan.
Not Applicable
• Acceptance by New Zealand Trade & Enterprise as MRI candidate.
Not Applicable
venture taranaki annual report
23
TARGET KEY PERFORMANCE INDICATOR
ACTUAL ACHIEVEMENT 2007/2008
BUILD REGIONAL BRAND RECOGNITION Events Enhance ability to attract visitors into the district through attracting / retaining significant events. • To attract / retain two significant events.
12
• To increase, by 2000 bed nights, external visitors to the region.
Achieved
• Events are timely (extending traditional visitor season) and appropriate for the district.
Achieved
District Promotion Implementation of targeted promotional strategy to enhance profile of New Plymouth district and promulgate the regional brand. • Implementation of targeted product development and promotional strategy based around developing the region’s profile and supporting district initiatives.
Ongoing
• Strategy developed and run to satisfaction of Council.
Ongoing
venture taranaki annual report
24
Audit Report TO THE READERS OF VENTURE TARANAKI TRUST AND GROUP’S FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION FOR THE YEAR ENDED 30 JUNE 2008 The Auditor-General is the auditor of Venture Taranaki Trust and Group (the Trust). The Auditor-General has appointed me, David Walker, using the staff and resources of Audit New Zealand, to carry out the audit of financial statements and performance information of the Trust, on his behalf, for the year ended 30 June 2008. Unqualified Opinion In our opinion: • The financial statements of the Trust on pages 3 to 12:
ª Comply with generally accepted accounting practice in New Zealand
ª Fairly reflect:
• The Trust and group’s financial position as at 30 June 2008
• The results of its operations and cash flows for the year ended on that date.
• The performance information of the Trust on pages 13 and 14 fairly reflects the achievements measured against the performance targets adopted for the year ended 30 June 2008. The audit was completed on 16 September 2008, and 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 and the Auditor, and explain our independence. Basis of opinion We carried out the audit in accordance with the AuditorGeneral’s Auditing Standards, which incorporate the New Zealand Auditing Standards. We planned and performed
the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and performance information did not have material misstatements, whether caused by fraud or error. Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and performance information. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. The audit involved performing procedures to test the information presented in the financial statements and performance information. We assessed the results of those procedures in forming our opinion. Audit procedures generally include: • determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data • verifying samples of transactions and account balances
• performing analyses to identify anomalies in the reported data • reviewing significant estimates and judgements made by the Board • confirming year-end balances • determining whether accounting policies are appropriate and consistently applied • determining whether all required disclosures are adequate. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and performance information. We evaluated the overall adequacy of the presentation of information in the financial statements and performance information. We obtained all the information and explanations we required to support our opinion above. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and performance information. We evaluated the overall adequacy of the presentation of information in the financial statements and performance information. We obtained all the information and explanations we required to support our opinion above. Responsibilities of the Board and the Auditor The Board is responsible for preparing the financial
statements in accordance with generally accepted accounting practice in New Zealand. The financial statements must fairly reflect the financial position of the Trust as at 30 June 2008 and the results of operations and cash flows for the year ended on that date. The Board is also responsible for preparing performance information that fairly reflects service performance achievements for the year ended 30 June 2008. The Board’s responsibilities arise from the Local Government Act 2002. We are responsible for expressing an independent opinion on the financial statements and performance information and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and section 69 of the Local Government Act 2002. Independence When carrying out the audit we followed the independence requirements of the AuditorGeneral, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand. Other than the audit, we have no relationship with or interests in the Trust.
David Walker Audit New Zealand On behalf of the Auditor-General Wellington, New Zealand venture taranaki annual report
25
Venture Taranaki Trust & Group Trustees’ Review For the year ended 30 June 2008 The Board of Trustees present their Annual Report including financial statements of the Trust for the year ended 30 June 2007. The business of the Trust is facilitating economic development in Taranaki. The nature of the Trust’s business has not changed during the year under review. For and on behalf of the Trustees
Chairman Venture Taranaki Trust & Group Statement of Financial Position As at 30 June 2008 Note
2008 $
2007 $
Current Assets Cash & cash equivalents
451,201
777,762
Trade and other receivables
74,127
85,920
Other current assets
52,058
33,411
GST receivable
49,474
89,980
Total Current Assets
626,860
987,073
Non Current Assets Property plant & equipment
2
207,960
80,527
Total Non Current Assets
207,960
80,527
Total Assets
834,820
1,067,600
Trade and other payables
479,073
651,218
Employee benefit liabilities 8
56,254
64,469
Current Liabilities
Deferred grant
-
10,000
Total Current Liabilities
535,327
725,687
Trust equity
299,493
341,913
Total Liabilities & Equity
834,820
1,067,600
Equity
These financial statements were authorised for issue by the Trustees on 16 September 2008 by Chairman
Trustee
The accompanying notes form part of these financial statements
venture taranaki annual report
26
Venture Taranaki Trust & Group Statement of Financial Performance For the year ended 30 June 2008 Note
2008 $
2007 $
Current Assets Grant revenue
3,375,300
3,566,261
Other revenue
89,952
56,271
Interest
80,534
84,331
Gain on disposal of assets
-
1,193
3,545,786
3,708,056
Audit fees
24,075
23,400
Audit fees - IFRS
-
10,000
Bad debts
-
293
44,433
109,641
Depreciation 2 Loss on disposal of assets
1,724
-
Marketing
297,793
164,828
Professional fees and subcontractors
1,457,926
1,862,711
Rental and operating lease expenses
138,468
138,435
Salaries and wages
1,083,917
916,034
Trustees fees
73,811
84,126
Other operating expenses
466,059
388,833
3,588,206
3,698,301
Net surplus/(deficit)
(42,420)
9,755
Statement of Movements in Equity For the year ended 30 June 2008
2008 $
2007 $
Net surplus/(deficit) for the year
(42,420)
9,755
Total recognised revenue and expenses for the year
(42,420)
9,755
Equity at 1 July 2007
341,913
332,158
Equity at 30 June 2008
299,493
341,913
The accompanying notes form part of these financial statements.
venture taranaki annual report
27
Venture Taranaki Trust & Group Statement of Cash Flows For the year ended 30 June 2008 Note
2008 $
2007 $
Cash Flows from Operating Activities Cash was provided from: Interest
80,534
84,331
Grants and other income
3,463,549
3,564,409
3,544,083
3,648,740
3,714,489
3,337,801
Cash was applied to: Operating expenses Net GST movement
10
(17,434)
34,600
3,697,055
3,372,401
Net cash from operating activities
(152,972)
276,339
11
Cash Flows from Investing Activities Cash was provided from: Proceeds from sale of property, plant and equipment
-
1,193
-
1,193
Purchase of property, plant and equipment
173,589
40,985
Net cash from investing activities
(173,589)
(39,792)
Net cash from financing activities
-
-
Cash was applied to:
Cash Flows from Financing Activities
Net increase (decrease) in cash held
(326,561)
236,547
Cash and cash equivalents at the beginning of the year
777,762
541,215
Cash and cash equivalents at the end of the year
451,201
777,762
The accompanying notes form part of these financial statements.
venture taranaki annual report
28
Venture Taranaki trust & group notes to the financial statements For the year ended 30 June 2008 1.
Statement of Accounting Policies
Reporting Entity
Venture Taranaki Trust is controlled by the 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. Financial Statements for the “Group� are the economic entity comprising Venture Taranaki Trust and Taranaki Pure Limited. Taranaki Pure Limited is a non trading subsidiary that has no assets or liabilities. Accordingly, the amounts presented in the financial statements are those for both the parent and the group. Under Section 7 of the Local Government Act Taranaki Pure Limited has been granted an exemption from being a Council Controlled Organisation.
The financial statements of the Trust are for the year ended 30 June 2008. 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 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.
venture taranaki annual report
29
Venture Taranaki Trust & Group Notes to the Financial Statements (Continued) For the year ended 30 June 2008
Specific Accounting Policies
The following specific accounting policies which materially affect the measurement of financial performance and financial position have been applied
•
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.
•
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.
•
Trade and other payables are stated at cost. Trade and other payables are non-interest bearing and are normally settled in 30 day terms, therefore the carrying value of trade and other payables approximates their fair value.
•
Property, plant and equipment are stated at cost less accumulated 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:
Furniture and fittings
10 years
Office equipment
3-5 years
Motor vehicles
3 years
IS equipment
4-10 years
IS software significant systems
5 years
•
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-to-day 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 are recognised as income when the conditions of entitlement have been met. Government grants are received from central and local government for tourism, events and economic services.
venture taranaki annual report
30
Venture Taranaki Trust & Group Notes to the Financial Statements (Continued) For the year ended 30 June 2008
Specific Accounting Policies continued
•
Operating 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)
The financial statements have been prepared on a GST exclusive basis, with the exception of receivables and payables whose invoices include GST.
•
Inventory
Merchandise inventory is held at cost.
•
Financial Instruments
The Venture Taranaki Trust Board has adopted a policy of minimising exposure arising from its treasury activity. The Board is not authorised by its treasury policy to enter into any transactions which are speculative in nature.
•
Differential Reporting
The Trust qualifies for differential reporting as it is not publicly accountable and it is not large as defined in the framework for differential reporting. The Trust has taken advantage of all available differential reporting exemptions except that a Statement of Cash Flows has been prepared in accordance with NZ IAS-7.
•
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.
•
Critical Accounting Assumptions and Estimates
In preparing these financial statements the Trust has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances.
•
Changes in Accounting Policies
There have been no changes in accounting policies. All policies are consistent with the prior year.
venture taranaki annual report
31
Venture Taranaki Trust & Group Notes to the Financial Statements (Continued) For the year ended 30 June 2008 2. Property Plant and Equipment 2008 Cost Current Accumulated Book Value Year Depn Depn 2008 Leasehold alterations
97,574
7,091
7,091
90,483
Fixtures and fittings
80,974
922
73,237
7,737
Office equipment
256,058
8,964
241,070
14,987
Other fixed assets
38,539
9,012
33,196
5,343
Motor vehicles
133,767
18,444
44,357
89,410
$ 606,912
$ 44,433
$ 398,951
$ 207,960
2007 Cost
Current Year Depn
Accumulated Depn
Book Value 2007
Leasehold alterations
100,691
29,079
100,691
Fixtures and fittings
76,703
784
72,315
4,388
Office equipment
257,456
7,849
234,717
22,739
Other fixed assets
36,864
8,603
24,184
12,680
Motor vehicles
-
66,633
13,326
25,913
40,720
$ 538,347
$ 109,641
$ 457,820
$ 80,527
3. Taxation As at 30th June 2008 the Trust held charitable status under KC5 and CB(1) of the Income Tax Act 1994. Under that regime the Trust was exempt from income tax on income providing that such income was applied for the charitable purposes as set out in the Trust Deed. As from 1 July 2008 charitable status under The Income Tax Act 1994 expired and the Charities Act 2005 came into effect. The Trust has applied for charitable status under the Charities Act 2005 however as at 30th June 2008 the Trust had not received a determination of its charitable status from the Charities Commission.
4. Operating Lease Commitments Lease commitments under non-cancellable operating leases excluding GST are:
2008 $
2007 $
Not later than one year
106,590
3,732
Later than one year and not later than five years
124,348
Later than five years
-
230,938
- 3,732
venture taranaki annual report
32
Venture Taranaki Trust & Group Notes to the Financial Statements (Continued) For the year ended 30 June 2008 5. Related Party Transactions During the normal course of business the Trust purchased and supplied goods and services from and to the following related parties:
2008 $
2007 $
40,715
Engineering Taranaki Incorporated. Roy Weaver is the Chairman.
Services provided to
52,501
Services provided by
898 -
Amounts receivable from
4,217 3,325
Amounts owing to
- 300
Port Taranaki Limited. Roy Weaver is the Chief Executive and John Young is the Chairman.
Services provided to
4,948 20,059
Services provided by
83,885 39,532
Amounts owing to
- 482
New Plymouth District Council. The Trust is a Council Controlled Organisation.
Services provided to
2,672,119
2,969,725
Services provided by
194,841 64,388
Amounts owing to
6,750 -
The Boardroom Practice Limited. Janine Smith is a Director.
Services provided by
- 39,233
Western Institute of Technology at Taranaki. John Young is a Councillor (Resigned 31 December 2006).
Services provided to
- 1,000
EMA Central. Paul Winter is a Director.
Services provided by
- 118
Amounts owing to
- 70
Taranaki District Health Board. John Young is Chairman.
Services provided to
17,108
-
Amounts receivable from
567
-
Auckland University of Technology. Sir Paul Reeves is Chancellor.
Services provided by
2,908 -
venture taranaki annual report
33
Venture Taranaki Trust & Group Notes to the Financial Statements (Continued) For the year ended 30 June 2008 5. Related Party Transactions continued
2008 $
2007 $
Staples Rodway Taranaki Limited. Robin Brockie is a Director and holds a beneficial interest.
Services provided by
23,020 12,036
Amounts owing to
3,375 -
Govett Brewster Art Gallery. Owned by Trust Settlor, New Plymouth District Council.
Services provided to
- 1,654
All transactions were carried out on normal commercial terms.
6. Subsidiary On 23 October 1998 the Trust incorporated Taranaki Pure Limited (formerly Bizlink Taranaki Limited) through the subscription of $1 for 100 ordinary shares. This company was incorporated solely for the purpose of retaining the name and has not traded. The cost of the $1 investment was written off in the year ended 30 June 2000. Taranaki Pure Limited has been granted an exemption from being a Council Controlled Organisation under Section 7 of the Local Government Act.
7. Contingencies
Contingent Liabilities The Trust has no contingent liabilities at balance date (2007: Nil).
Contingent Assets The Trust has no contingent assets at balance date (2007: Nil).
8. Employee Entitlements
2008 $
2007 $
Balance at beginning of year
64,469 42,775
Additional provision made
100,912 67,527
Amount utilised
(109,127) (45,833)
Balance at end of year
56,254 64,469
Current
56,254 64,469
Non-current
- -
56,254 64,469
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 year.
venture taranaki annual report
34
Venture Taranaki Trust & Group Notes to the Financial Statements (Continued) For the year ended 30 June 2008 9. Post Balance Sheet Date Events There were no material events post balance sheet date.
10. 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. 11. Reconciliation of Net Surplus with Net Cash Flow from Operating Activities
Net (deficit) surplus after tax
2008 $
2007 $
(42,420) 9,755
Add (less) non-cash items: Add depreciation
44,433 109,641
(Profit) loss on disposal
1,724 (1,193)
3,737 118,203
Movements in working capital: Decrease (increase) in accounts receivable
33,651 (55,375)
Decrease (increase) in inventory
- -
Increase (decrease) in payables
(190,361) 213,511
(152,973) 276,339
12. Key Management Personnel Key management personnel includes the Trustees, the chief executive and senior management. The compensation includes salaries and other benefits of $628,369 (2007: $550,298).
venture taranaki annual report
35
CELEBRATE Celebrate business success.
Tourism & Events
Hi Impact interventions
Enabling & Foundation services
LEADERSHIP Provide leadership and support for the development and implementation of local, regional and national strategies for the creation of a vibrant and buoyant regional economy.
FACILITATE & SUPPORT BUSINESS Facilitate, promote, encourage and invest in sustainable business growth, investment and employment opportunities in Taranaki. Maintain ongoing client relationship with emerging and existing high growth companies.
VTT Interventions (Outputs)
Trust Objectives (Ex 2007/8 SOI document)
Not Achieved International visitors to Taranaki have fallen 9.6%. The main reasons for decreased international visitation to Taranaki as reported via Tourism New Zealand are reduced airline capacity into the country and economic issues within the main countries that visit the Taranaki region.
10. Achieve international visitor growth of >10% p.a., measured using latest available statistics.
Achieved Taranaki 3.7% National 2.2%
8. Achieve visitor growth above national average, measured using latest available statistics.
Achieved Taranaki 2.00 National 1.89 (Days)
Achieved Actual $541,000
7. Invest $500,000 in tourism development and regional promotion.
9. Achieve length of visitor stay (days) above national average, measured using latest available statistics.
Achieved 18 events were funded. Over 2000 bed nights resulted.
Achieved $667,330 of leveraged funding achieved.
Taranaki industrial plant.
Pilot training academy.
Achieved Eastern Harbour Redevelopment.
6. Attract 2 significant events resulting in > 2000 bed nights.
5. Attract $250,000 in matched funding for new ventures/events.
4. Identity at least two projects with hi impact potential and undertake feasibility studies.
Achieved Energy Conservation & renewable energy generation pilot at Inglewood High School.
3. Support one social and/or environmental initiative p.a.
Achieved $1,053,000 Achieved Taranakijobsnz.com received 1744 job seekers and 1061 online job applications
Inject $500,000 of crown grants into the regional economy
2007/08 Outcomes
2. Maintain Taranaki web portal www.taranaki.info including subsidiary sites www.taranaki.co.nz and www.taranakijobsnz.com
1.
Performance Targets and Measurements
Vibrant
Prosperous
Prosperous and Skilled
NPDC Themes
More people think Taranaki is a vibrant place to live / visit (community and visit or survey).
More people participating in continuing education or training.
Regional GST Economic activity (NBNZ Trends rpt) Employment rate Unemployment rate Business confidence Net business growth; businesses; FTE’s
Future Taranaki Facilitation Group Regional Outcomes
Statement of Service Performance
Performance Targets and Other Measures by Which the Performance May be Judged in Relation to its Objectives
venture taranaki annual report
36
Board of Trustees John Young (Chairman) Chairman: Director: Trustee:
Auroam Ltd Lactanz WA Port Taranaki Ltd Taranaki District Health Board PKW Farms Ltd Taranaki Veterinary Centre Patea Veterinary Club
Sir Paul Reeves Chancellor: Director: Chairman: Convenor: Trustee: Negotiator:
Auckland University of Technology Village at the Park Mighty River Power Limited Tuhono Maori Trust Hui Taumata Taskforce Wellington Tenths Trust Port Nicholson Block Claim
Robin Brockie Director:
Staples Rodway (NZ) Ltd
Staples Rodway Asset Management Ltd
Staples Rodway Taranaki Nominees Ltd
Director/ Beneficial Interest: Staples Rodway Taranaki Ltd Director/ Shareholder:
Shakespeare Road Ltd
167 Broadway Ltd
Trustee/ Chairman:
Sacred Heart Girls College
Trustee:
Taranaki Arts Community Trust
Janine Smith Chairman:
McLarens Young NZ Ltd
McLarens Young Claims Management (NZ) Ltd
McLarens Young Compliance Ltd
Director:
Bank of New Zealand
Kordia Group Limited (Formally Transmission Holdings)
The Boardroom Practice Limited
The Academic Coaching School Limited
The Partnership Limited
The Warehouse Group Limited
Advisory Board:
University of Auckland Graduate Business School
Massey University College of Business
Roy Weaver Chief Executive: Port Taranaki Limited Trustee: NZ Harbours Superannuation Trust Chairman: Engineering Taranaki Consortium West Coast Coal Limited Director Greyport Terminal Co. Limited
Paul Winter Chief Executive:
Employers & Manufacturers Association – Central
Venture Taranaki Trust & Group Directory For the year ended 30 June 2008 Nature of Business
Facilitating economic development in Taranaki
Business Office
9 Robe Street New Plymouth
Trustees
John Young (Chairman) Paul Winter Roy Weaver Janine Smith Sir Paul Reeves Robin Brockie
Auditors Audit New Zealand Wellington On behalf of the Auditor-General
Accountants
Staples Rodway Taranaki Ltd New Plymouth
Bankers TSB Bank New Plymouth
Solicitors
Auld, Brewer, Mazengarb & McEwen New Plymouth
Venture
TARANAKI Te Puna Umanga
9 Robe Street, PO Box 670, New Plymouth 4340, New Zealand Ph: (06) 759 5150 Fax: (06) 759 5154 Freephone 0800 4 VENTURE (0800 483 688) www.taranaki.info venture taranaki annual report
37