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Venture Taranaki Annual Review

www.taranaki.info

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 of Economic Development, Ministry of Education, Ministry of Social Development, Department of Labour, Foundation of Research, Science and Technology, Business in the Community, TSB Bank and numerous other private sector organisations.

Picture credits: Rob Tucker Chris Hill Josh Woskett Pip Guthrie Taranaki Daily News Frances Oliver Getty Images Venture Taranaki

Venture Taranaki Annual Review

The team L to R: Andrew Thomson (marketing co-ordinator), Clare Rose (tourism development advisor/mentoring), Nick Fleming (senior enterprise advisor), Stuart Trundle (chief executive), Lisa Garvey (executive officer), Paul Stancliffe (tourism leader), Vicki Fairley (marketing manager), Michelle Jordan (enterprise development manager), Carrie Thorne (project co-ordinator), Kayleen Schoeman (ICT helpdesk/receptionist), Kathryn Calvert (communications manager).

Absent: Rob Trusler (corporate services manager) and Eliana Garrett (learning and development co-ordinator).

Contents Chairman’s Report

2

Chief Executive’s Report

4

Board Highlights

6

Major Achievements

8-12

Enterprise Development Highlights 13-18

Venture Taranaki Trust is the region’s development agency in both economic development and tourism. 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.

On July 1 2004, Venture Taranaki evolved into a SuperTrust, which will continue to drive the creation of wealth through regional business development and regional tourism promotion.

Tourism Highlights

19-22

Other Highlights

23-29

KPIs

30-34

Trustees’ Review

35-40

Trust Directory

41

Chairman’s Report John Young

The Venture Taranaki Trust board faced the start of the past financial year with very high expectations, given that Taranaki was fizzing with activity, bathing in the spotlight of record regional economic growth, high property prices, an unprecedented tourism boom and action-packed events calendar.

Every settlement across the region was bustling, with recordlow unemployment, a thriving construction industry and population increases for nearly every district. The primary sector was enjoying record commodity prices, and the business community was positive and looking forward to the future.

It was clear to the board, however, that national growth figures were tipped to steady and consolidate, if not decline.

And so they did.

In the past year across New Zealand, house sales have slowed, regional economic activity has eased, and a recent National Bank business confidence survey has highlighted a more conservative level of business confidence across the country. Rising costs – particularly fuel – were expected to start biting.

Venture Taranaki Annual Review

Despite that national trend, Taranaki has once again defied the odds to report record increases in tourism, enterprise and other economic indicators.

The latest Taranaki Trends, produced by Venture Taranaki, says the region finished 2005 with a year-on-year growth rate of 3.7%, second-equal with Gisborne, following a recordbreaking 2004 growth rate of 5%.

GDP was up, as was retail trade, real estate prices, tourism and building consents. It was a significant achievement for the region to rate well against other parts of New Zealand, assisted by business confidence remaining well above the national average.

Consequently, any major fears about Taranaki faring well in this past financial year have been well and truly scuttled.

The Trust – aided by its talented and experienced team – has continued to work steadily throughout the ups and downs, providing business support services on a daily basis.

The Trust’s purpose to drive and facilitate the creation of economic wealth for Taranaki and beyond has been quietly and masterfully achieved. All the Trust’s major

responsibilities – enterprise development, tourism, regional marketing and film – have been successfully managed, and new responsibilities for commercial opportunities beyond our geographic boundaries explored.

Taranaki now has more businesses, more people employed and more tourists visiting the region than ever before. A recent comparison between the year 2000 and 2005 shows: Business numbers have increased in that time by 20% in New Plymouth, 16% in Stratford and 13% in South Taranaki; Employment has increased in New Plymouth by 22%, in Stratford by 17% and in South Taranaki by 11%; Visitor numbers to Taranaki are almost 40% higher in 2005 than in 2000, and guest nights have increased by 42%.

These outcomes are the envy of other regions around the country, and demonstrate vividly the degree of business confidence in Taranaki. This in turn has seen an increase in investment flow, creating new businesses and opportunities for our community.

Venture Taranaki Annual Review

When the Board looks into the coming 12 months, there is much to enjoy and celebrate in Taranaki. This region will become the focus for investment in the oil and gas sector, as exploration and production from Pohokura and Maui creates direct benefits to both the local and national economies. The Government’s recent announcements over South Taranaki’s Kupe oilfield are a welcome indication of the strong role the oil and gas sector will play in Taranaki.

The economic outlook remains promising, with the opportunity to create added value for industry and commerce throughout Taranaki. Many businesses within the region are consciously selecting to remain based in Taranaki, and demonstrate daily their ability and commitment to delivering worldclass products and services whilst anchored to this stunning region along the North Island’s western seaboard.

Venture Taranaki Trust is keen to attract more sustainable businesses without detracting from our superb lifestyle and environment. This coming year will be a re-focus of the Trust’s direction – towards high impact and investment projects – and I am confident the results this time next year will be just as impressive as today.

November will see the second running of the ITU World Cup Triathlon – after the successful inaugural event in November last year. Concertgoers throughout the country are looking forward to the TSB Bowl of Brooklands concert line-up for the 2006/07 season, and we are bound to see the further hosting of important events like last February’s national surf lifesaving championships.

And don’t forget WOMAD, the Parihaka Peace Festival, the Taranaki Festival of the Arts and the Taranaki Rhododendron and Garden Festival. The next year will certainly be full of festivity and fun.

My heartiest thanks go to my talented board, with a special welcome to our new member Sir Paul Reeves, the chief executive Stuart Trundle, management team and staff of Venture Taranaki, who make chairing this board so enjoyable and the successes so satisfying. This past financial year has also seen the launch of Taranaki’s new regional identity…and it’s ‘like no other’. I am confident that what Venture Taranaki Trust accomplishes in this coming year, it will indeed live up to that sentiment.

SOURCES OF FUNDING

GROWTH IN FUNDING ANNUAL FUNDING

(JULY 2005 TO JUNE 2006)

20%

$3,500,000

19%

$3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000

61%

$500,000 $0

2001

2002

2003

2004

JUNE YEARS

2005

2006

Chief Executive’s Report Stuart Trundle

The Venture Taranaki Trust has made a significant difference to people’s lives in the past 12 months as we have set about turning the region’s ambitions and aspirations into reality.

As the Venture Taranaki chief executive, I continually challenge myself over the evidence for this statement – how do I know whether the Trust is making this difference?

I believe the answers can and should be seen at every level of activity within our region – from community level right up to the work we do nationally and internationally. I am delighted to report that at each level during 2005/06, there has been tangible evidence of progress.

We all recognise that it takes time and effort to build trust and relationships across the public and private sectors. The delivery of our inter-generational projects requires a longer term commitment from partners and I have been pleased to see our relationships maturing over the past 12 months with our key stakeholders in central Government, local government, the private sector and philanthropic trusts.

We have made significant progress by: • Influencing the national, regional and local decisions that will affect business and communities in the region in the years to come;

Venture Taranaki Annual Review

• Developing strategies and action plans that will address the barriers to growth and prosperity;

reflects more than half a million dollars of assets which are currently utilised to deliver our strategic outcomes.

• Delivering projects that support the implementation of our regional economic strategy and the strategies of our stakeholder partners;

In the financial year, our owners’ commitment to the Trust has contributed 61% of our total revenue activity. The ability to leverage additional dollars from other sources – including our regional partnerships with the TSB Community Trust and Taranaki Electricity Trust - enables us to maximise the return that the local community has made into our endeavours.

• Becoming a more efficient and more effective organisation.

The executive team has a real sense of direction at Venture Taranaki, and with enthusiastic, talented people in place we are in excellent shape to deliver a worldclass service to our clients.

It has taken us some time to get to this point, and to put the new foundations of the SuperTrust in place. We have restructured and cut overhead cost from our business to maximise the level of funding available for direct service delivery.

Venture Taranaki has achieved all of its key performance indicators for the period, with our total revenue being $3,100,788, an indication of our carefully controlled expenditure into our high growth projects. The Trust’s expenditure resulted in an operating surplus for the financial year of $13,624, whilst our Trust equity now stands at $332,158.

Without quantifying the intellectual property and institutional learning within the Trust, the balance sheet

The confidence of our owners has been reflected by an increase of $750,000 for our event attraction fund for the financial year of 2006/07. As a result of this investment, our team has been able to confirm our sponsorship of WOMAD 2007, the Taranaki Rhododendron and Garden Festival, the Taranaki Cycle Challenge, the 2006 ITU World Cup Triathlon as well as several other conferences and events with the ability to attract visitors to the region.

We are now focused and concentrating on driving forward, with quality service delivery, our regional economic development strategy. The team has made a considerable investment in improving the way we communicate with our stakeholders. We have listened

Venture Taranaki Annual Review

carefully to the feedback from our community, and are working hard to ensure our clients know what we are about and where we are going. Our team is approaching all our work with renewed optimism.

We are seeing signs that our strategy is heading in the right direction, following the bold decision to integrate the regional tourism organisation with the regional economic development agency.

The region continues to punch above its weight within the national economy. We have moved from being in economic decline last century to the top performing regional economy with the lowest levels of unemployment and the highest increases in property prices. The growth in the number of businesses and the number of people in fulltime employment are both significant drivers of the region’s economic regeneration.

As we reflect on the achievements of the past 12 months we can celebrate two major outcomes which are the envy of many other agencies within the country.

In November 2005, the region hosted the ITU World Cup Triathlon. Those members of the community who were privileged to witness one of the most nail-biting finishes in World Cup history saw Bevan Docherty lead home his fellow New Zealander Kris Gemmell over the final few metres after their Olympian battle in the swim, cycle and run legs.

At the conclusion of the race, the athletes, officials and community leaders gathered together at Puke Ariki to celebrate the outcome of the 2005 World Cup championship. The room hosted representatives from 38 countries, Olympic gold medallists and world champions, all convening from

around the world to participate in a world-class event organised and administered by the Taranaki community.

In the annual evaluation and feedback of our event, the international committee reported that the New Zealand event rivalled those held in Manchester, England and Hamburg, Germany.

This alignment was only possible because of the support of the Taranaki community, including the TSB Community Trust and the Taranaki Electricity Trust, as well as hundreds of volunteers who offered their support and enthusiasm to bring the vision of a world sporting event to reality.

The outlook for the 2006 ITU World Cup to be held on November 12 this year presents an opportunity to implement the learning outcomes from our inaugural race.

In addition, Venture Taranaki launched during the year the regional brand of ‘Taranaki… like no other’. Once again, this exercise involved large numbers of the regional community participating in the planning and implementation of the brand rollout.

The Trust has now produced significant collateral to assist in the promotion of our region, including promotional lifestyle DVDs, flags and brochures. It is pleasing to note that all three district councils, the Taranaki Regional Council and the Taranaki District Health Board have all formally adopted the regional brand in their own marketing endeavours.

The challenge still remains for many in the private sector to leverage off this investment to help maximise the impact of the brand on the national psyche.

I believe Venture Taranaki is now a fundamental and valued part of the regional business infrastructure. In direct terms we are meeting our business targets, we are assisting in transforming people’s lives, and we have also demonstrated that we can set the agenda in areas that will make major differences in the future.

However, we are by no means complacent. We need to deliver significant improvements over the next 12 months. We need to be highly strategic and focused on our activities, and effective in our operation. We are moving in the right direction and I am convinced that even better is yet to come.

That confidence is boosted by an independent client satisfaction survey, which found more than 93% of our clients were satisfied with our organisation, and a recent KPMG survey of national business mentoring, which placed Venture Taranaki’s mentoring efforts at the top of the league table.

Finally, in terms of the past year, I do wish to place on record my thanks and appreciation to colleagues, the Venture Taranaki board, and the many partners and stakeholders who have helped deliver the Trust’s achievements.

I hope you will find our Annual Review document a helpful insight into our 2005/06 record, and into the progress we have made in helping our dynamic and exciting region to achieve its potential.

Board Highlights

Roy Weaver

Rhys Greensill

Janine Smith

“The period ahead for Taranaki and Venture Taranaki Trust will be full of challenge and the need for sound strategic thinking. Our white gold (milk) and black gold (oil) face the twin challenges of international competition and meeting concerns for the environment. The next couple of years for New Zealand will not be easy, and the decisions taken at a local and regional level as well as at national level will need to take account of the fine balance between commercial pragmatism, and social and environmental advancement.

It is a job for all of us to keep the economy moving forward, our standard of living rising and enhancing the beautiful Taranaki environment. We all have our roles.

We have the people in this region to really make a difference for Taranaki and for all of New Zealand.”

“Melbourne, a city I admire very much, has built its highly successful tourism industry on a series of welltimed annual and one off events.

While on a different scale, Taranaki has the same opportunity to apply this strategy. Last November’s triathlon demonstrated the pulling power of a well-thought-out international event, and the exposure that it can create. You can’t buy the sort of tourism advertising that the half-hour highlights package gave us to the millions of people who saw it. The recent decision by the New Plymouth District Council to entrust Venture Taranaki with its events fund is a major step forward in Taranaki being able to co-ordinate its events in the future. We now have an opportunity to use our scarce resources to prioritise and support events that will provide the maximum impact for the region. I look forward to this unfolding over the year ahead.”

“I am looking forward to assisting the understanding and development of governance for businesses in Taranaki. Initiatives in this area will assist the voluntary sector, private enterprise, the public sector, Maori and not-for-profit businesses to develop world-class standards of excellence in governance, and be of enormous benefit to the region, resulting in an increase in Taranaki’s competitiveness and overall success in business. Also, at a time of increasing competition between the regions of New Zealand for visitors, commercial enterprises and investors, the continuing interest in feature articles on Taranaki in the media is very noticeable, telling the story of the diversity and strengths of the region. It is also positive that the articles are more often reflecting Taranaki’s chosen positioning of ‘like no other’.”

Venture Taranaki’s ‘Super Trust’ board of trustees was appointed from July 1 2004 by a panel consisting of Mayors and Chief Executives of New Plymouth, South Taranaki and Stratford District Councils, plus the Taranaki Regional Council, following the integration of Venture Taranaki with Destination Taranaki, events marketing and the New Plymouth District Council’s marketing into a all-encompassing agency. The board meets once every two months, and is responsible for the governance of the Super Trust.

Venture Taranaki Annual Review

Venture Taranaki Annual Review

Sir Paul Reeves

Paul Winter

Neil Mackay

“I became a trustee in February of this year so I am still new and feeling the need to learn more about the operation of the Trust.

There seems to be plenty of energy, imagination and commitment to the growth of Taranaki’s economy.

Things in the province are on a roll, and the co-ordinating and initiating responsibilities of the Trust are absolutely necessary at this time.

I belong to the Puketapu hapu of Te Atiawa, and I am a shareholder in the Parininihi ki Waitotara Incorporation.

The Maori economy is sizeable in Taranaki, it is growing and shows signs of innovation. I hope that in the year ahead the Trust establishes better contact with Maori economic activities, and explores the interests we hold in common.”

“For a number of reasons Taranaki has enjoyed a decade of consistent economic growth above the national trend. Venture Taranaki has played a catalyst role in contributing to that outstanding result, but is keenly aware that it was a broad cross-section of enterprises with their employees and risk-taking investors who in the final analysis delivered the products and services that generated the increased community wealth. There lies VT’s ongoing challenge. The broad economic and policy environment is set by central Government in an increasingly competitive and globalised marketplace. Local Government in its various forms then ensures Taranaki is a region that supports and welcomes innovative enterprises, and provides efficient local infrastructure, while respecting the community and the environment that nurture them. Then generally it is over to the entrepreneurial efforts of Taranaki’s enterprises – sometimes alone but increasingly in a wide range of co-operative ventures – to turn in a top performance, and that is where VT comes in. Our challenge is to stay in tune with all that is happening and the potential new opportunities for the Taranaki region so we can be an effective catalyst to accelerate the normal generation of wealth for the community.”

“Networking with key stakeholders in the region and beyond has become increasingly important.

The board this past year has become more active in connecting with and developing an understanding of the strategies and goals of potential investor and partner organisations that have a common objective of advancing the economic performance of this region. We have used these sessions to present, socialise and discuss projects that we consider will have appreciable and lasting positive economic impact. These projects may not necessarily align to current central Government programmes which continue to be the primary focus of VTT. However they will provide a basis to further our goals of providing qualified project candidates for consideration and development. They may also influence some changes to the current portfolio of programmes. The VTT team has developed very good project methodology and are thorough and professional in their presentation of these projects.”

Major Achievements Taranaki Trends

Taranaki’s economy has boomed in the past five years, with most indicators boasting huge improvements across the board. Venture Taranaki’s biannual Taranaki Trends, published in May 2006, has offered a unique comparative perspective on the region between the years 2000 and 2005, and says many crucial facets of economic development and tourism have enjoyed unprecedented improvement over the five-year period, including: • Tourism numbers for Taranaki increased by 39.5%.

• Guest nights increased by 42% – a higher rate than the national average and equating to 54,000 more guest nights in 2005 than 2000.

• Guest nights from international visitors increased 67%.

• Employment increasing by 22% in New Plymouth district, with large increases in oil/gas mining, property/business services and construction.

• South Taranaki’s employment increasing by 11%, with manufacturing dominating the employment scene.

• Stratford District employment increasing by 17.6%, with employment growth in nearly twothirds of the major business/industry sector groups.

• New Plymouth District business numbers increased by 20.6%, South Taranaki by 13.4% and Stratford by 16.4%.

• New Plymouth guest nights increased by 47%, Stratford by 32% and South Taranaki by 14%.

• Domestic visitors from New Zealand significantly likely to come from Auckland or Wellington, or other North Island centres.

REGIONAL ECONOMIC ACTIVIT Y

Year on Year Growth, June 2006 3.7

Gisborne West Coast

3.7

Manawatu/Wanganui

3.3

Taranaki

3.2

Waikato

2.8

Hawke’s Bay

2.7

Wellington

2.5

Northland

2.0

Southland

2.0

Canterbury

1.9

Otago

1.8

Bay of Plenty

1.6

Auckland Nelson-Marlborough

0.9 0.2

Awards Venture Taranaki has clinched two top economic development awards in 2005/06. The first – the Vero Excellence in Business Award for the most significant contribution by a local government initiative – was awarded in July 2005, whilst the second – the Economic Development Agencies of New Zealand practitioner award for excellence in regional development – was awarded at the annual conference in September 2005.

Venture Taranaki Annual Review

Venture Taranaki Annual Review

Major Achievements Regional Growth

Taranaki has achieved a satisfying fourth position in regional economic activity for the year ended June 2006, clocking up a 3.2% year-on-year growth in the respected National Bank Regional Trends analysis.

Year-on-Year Growth, June 2006

Northland 2.0%

Narrowly surpassed by Gisborne and West Coast on 3.7%, and Manawatu-Wanganui on 3.3%, Taranaki enjoyed high consumer confidence, a buoyant real estate market, a rise in employment and good farm sales during the 2005/06 year.

Auckland 0.9% Bay of Plenty 1.6% Waikato 2.8% Gisborne 3.7% Taranaki 3.2%

This follows a country-topping 5% year-on-year growth for the 2004/05 year.

In the last quarter of the 2005/06 year, Taranaki saw:

Hawke’s Bay 2.7%

Manawatu/Wanganui 3.3%

Wellington 2.5% Nelson-Marlborough 0.2%

West Coast 3.7%

• House sales rise by 11% Canterbury 1.9%

• An average sale price rise of 2.8% to $262,400 • A 35% rise in rural real estate sales numbers

Otago 1.8%

• $340 million in total actual retail sales for the Taranaki Regional Council area

Southland 2.0%

• A 1.3% rise in employment • Unemployment fall to 2.8%.

In 2005/06, Taranaki saw: • Consumer confidence outstrip the national figure • An overall population increase of 0.9% (interim 2006 Census statistics) • 40,880 employees • Business numbers increase to 8280.

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06

“ It is clear that Taranaki has excelled in the period from 2000 to 2005, and that we are the envy of other regional centres in New Zealand and offshore. This community has demonstrated the highest levels of business confidence in New Zealand throughout this period, and investment flows have increased, creating new businesses and new opportunities for our districts.”

Stuart Trundle, Chief Executive, Venture Taranaki

Major Achievements Events

New Plymouth the Triathlon Centre of Oceania: Athens Olympic silver medallist Bevan Docherty (Taupo) pipped team and training mate Kris Gemmell (Auckland) to the post at the New Plymouth ITU World Cup Triathlon after the race – packed with world champions and top rankers from across the globe – was held in a kaleidoscope of weather along the city’s waterfront on November 13.

In the women’s race, Portugese Vanessa Fernandes blitzed the top quality field, beating nine of the world’s top 10 elites by more than a minute. The 19-year-old, already the European champion, was one of two women from Portugal who made the trip to New Plymouth for the final ITU race of the year.

With more than 1700 children, 250 age group athletes and in excess of 100 elite triathletes taking part in the WeetBix Kids Tryathlon, the New Zealand selection races or the world elite races held over the weekend of November 11, 12 and 13, the triathlon was also attended by top ITU officials.

Government ministers Trevor Mallard and Harry Duynhoven, New Plymouth mayor Peter Tennent, Athens Olympic gold medallist Hamish Carter (Auckland) and ITU secretary general Bill Walker (Australia) also participated in the day.

Covered by New Zealand’s largest newspapers and news agencies, the triathlon was filmed by Sky TV for broadcast on five separate

Regional Events Calendar: Venture Taranaki has continued to be involved with major events in the region: ITU World Cup Triathlon\WeetBix Kids Tryathlon\New Zealand Age Group Selection Races November 2005 Venture Taranaki bid for, won and then facilitated the ITU World Cup Triathlon event in tandem with Triathlon New Zealand. An economic impact report was also completed by Venture Taranaki on the event, showing that it attracted $3 million for the region.

New Zealand Inline Hockey Championships November 2005 Venture Taranaki supported this event, branding the venue and uniforms with the new regional identity.

10 Venture Taranaki Annual Review

occasions from November 28.

The elite men’s and women’s races could be viewed live on the ITU website, which saw 90,000 viewers online at one time during the men’s race.

Venture Taranaki bid for and won the hosting rights to the ITU World Cup Triathlon in December 2004, beating other contenders such as Wellington and North Harbour. Managed in conjunction with Triathlon New Zealand, the event was sponsored by New Zealand Community Trust, Inter-Agency Event Group, TSB Community Trust and TSB Bank, Taranaki Electricity Trust and the New Plymouth District Council.

Dutch Mill Taranaki Cycle Challenge January 2006 As well as entering a team to compete in the race, Venture Taranaki supported this event because it fitted well with the Taranaki brand values, and has enormous potential to grow into a substantial event reminiscent of the annual Round Taupo cycle event.

As well as financial support, VT staff also helped with registrations and assisted with media work for the event.

New Zealand Surf Lifesaving Championships\ New Zealand Masters Surf Lifesaving Championships February 2006 A total of 1126 competitors from 43 surfclubs dotted Oakura and East End Beaches for these events, with the 933 athletes based outside the region staying for two to three nights accompanied by their supporters.

A VT economic impact study confirmed that this event resulted in a total economic impact of $1.25 million.

Venture Taranaki Annual Review 11

Bevan Docherty, winner of the ITU World Cup Triathlon 2005, New Plymouth.

Major Achievements Branding

After six months of stakeholder consultation, Taranaki’s new regional identity was launched to the world in September.

‘Taranaki…like no other’ is now a familiar sight around the region, with many central and local government organisations and private companies using the distinctive logo in tandem with their own branding.

Created by Auckland brand agency DNA Design for Venture Taranaki, the new identity was formulated after hundreds of stakeholders took part in development sessions, representing councils, Tangata Whenua, tourism groups, local media and major businesses.

The branding process included iconic imagery and heroes, straplines and a series of unique Taranaki symbols that depict just why the region is ‘like no other’.

These symbols include the iconic New Plymouth Len Lye-designed kinetic windwand, Hawera’s water tower, Stratford’s Shakespeareflavoured Glockenspiel clock, the Maui oil platform, Charles Kingsford-Smith’s aeroplane, rugby posts and ball, rhododendron, dairy cow, oil derrick and Massey Ferguson 135 tractor.

Straplines include ‘Just far enough away’, ‘There’s something about Taranaki’, ‘Wild. Civilised’, and ‘Our place to stand’, with an overall brand positioning of ‘Legendary’.

The new identity has initially been promoted within the region via billboards, a cinema ad and newspaper promotion, and will be used as part of larger promotions nationally in the future.

“ I was invited to participate in the regional branding project in my capacity as chairperson of the TSB Community Trust. I also – by default – ended up participating in my capacity as an individual member of Tangata Whenua of Taranaki. I participated in all but two workshops of the entire regional branding project, and enjoyed the process which has, I believe, resulted in a very strong, refreshing, cheeky and very user-friendly branding identity. Currently the branding is being used across all sectors of our community – from our families, to our homes, our schools, our sports teams, our businesses to our international events. Continued creative usage of the branding in every possible way is what will, I believe, strengthen this regional branding – like no other!”

Colleen Tuuta, Chairperson, TSB Community Trust.

12 Venture Taranaki Annual Review

Venture Taranaki Annual Review 13

Enterprise Development Highlights

Top Shop: The TSB Bank Top Shop awards remained extremely popular in 2005/06, with 340 shops nominated and more than 600 individual votes cast by the Taranaki public. At the Quality Hotel Plymouth International gala dinner, popular New Plymouth butcher Bill Peoples clinched the top prize, just days before handing his well-regarded shop to new owners.

Entrants were judged on categories such as phone manner, customer service, after-sales contact and shop layout. More than 300 people attended the awards dinner at the Quality Hotel Plymouth International, with well regarded Auckland act The Blue Boys providing the entertainment.

Judge Alastair Johnson said Peoples Meats stood out from the rest, with the store’s theme perfectly representing the traditional butcher shop and an outstanding rapport with customers.

Peoples Meats was the complete package, down to the embroidered names on the staff’s shirts.

Mr Johnson said the overall standard of the entries was high, with improved customer service this year. A total of 689 nominations were received from satisfied customers.

This year’s sponsors of the TSB Bank Top Shop were TSB Bank, Taranaki Daily News, The Radio Network, Centre City Shopping Centre, Aon Insurance Brokers, First National Taranaki Farmers, Kiwihost, Tegel, Telecom, Wormald and the New Plymouth District Council.

Food and Beverage Peoples Meats – winner Jesters Pies – highly commended Fashion, Footwear and Accessories Mondo Man – winner Annah S – highly commended Health and Beauty Judd Opticians – winner The Shampoo Shop and Salon – highly commended Large Format Stores Rapley Flooring Ltd – winner Fairfields – highly commended Specialty Stores Edex Toys – winner Mezzanine – highly commended Lifestyle and Leisure Harvey World Travel Eltham – winner The Frontrunner – highly commended Homeware Soul Interiors by Design – winner BBQ Factory – highly commended Family Friendly (New Plymouth District accredited stores only) Martins Fashions Inglewood – winner Reflections Café – highly commended.

The challenge over the coming year is to continue the growth Taranaki has experienced in recent years, finding new opportunities in our traditional sectors and further developing our sunrise industries. This involves working on projects focused on targeted assistance to sectors as a whole, alongside support to individual businesses, ensuring Taranaki can compete in a global marketplace and continue down a path of economic wellbeing.

Michelle Jordan, Economic Development Manager, Venture Taranaki.

14 Venture Taranaki Annual Review

Venture Taranaki Annual Review 15

Grants and Funding: Venture Taranaki was instrumental in assisting Taranaki businesses to attract $832,053 worth of grants and funding for research and development, and business development in this financial year. The majority of the funding came from New Zealand Trade and Enterprise and the Foundation for Research, Science and Technology, and was awarded to 18 companies covering 22 applications. Half of the total funding pool went to South Taranaki businesses, with successful applications in manufacturing, engineering, food and beverage, and biotechnology across the region. Funding amounts ranged from $1800 to $288,000. Venture Taranaki acts as an agent to assist the Government with many of the grants schemes by co-ordinating and helping with the processing of applications from Taranaki businesses. The Trust’s target this year was $600,000.

Business in the Community (Mentoring): Taranaki has received the highest performance scores in a recent nationwide mentoring survey, with a 100% score in its ‘mentorees’ willingness to recommend. A total of 109 mentor matches have been made this year, with a special emphasis on matching clients with mentors as closely as possible. Mentoring has been revitalised and promoted in a national campaign, with a growing recognition that mentoring has a place in building a business. Venture Taranaki has enjoyed its sixth year of coordinating the national mentoring scheme. The Trust’s target this year was 80.

Start Up: This service, which offers guidance on starting out in business constructing, business development plans, overcoming barriers in business, achieving goals and general advice, has been busy this year in assisting 153 clients. The buoyant local economy in the past year has resulted in a positive general attitude towards developing selfemployment opportunities, and retailing in particular has seen strong growth with virtually all shops in New Plymouth’s CBD tenanted. Skills of Enterprise, a multi-week training course which equips participants with what they need to go into business, has also been well utilised this year.

Venture Taranaki’s target for Start Up was 100.

BUSINESS GRANTS AWARDED 2005/06 $500,000 $450,000 $400,000 $300,000 $250,000 $200,000 $150,000 $100,000

TIF Masters – FRST

TIF Expert – FRST

TechLink – FRST

TBG – FRST

SmartStart – FRST

GSF – NZTE

$0

GPSRD – FRST

$50,000 EDG-CB – NZTE

KEY TO GRAPH EDG-CB Enterprise Development Grant – Capability Building NZTE NZ Trade and Enterprise FRST Foundation for Research, Science and Technology GPSRD Grants for Private Sector Research and Development GSF Growth Services Fund TBG Technology for Business Growth TIF Technology for Industry Fellowships

Dollars

$350,000

Grant Type

“ I have completed 10 Venture Taranaki courses so far, ranging in subject from staff interviews to sales and marketing. I have also completed the advanced Accelerator growth programme, and intend to take part in more this year, as my business is growing quickly. I find the courses Venture Taranaki offer are excellent not only in their content, but also in the networking opportunities my company can benefit from. PLS Builders has been running now for three years, and its success is partially due to the expertise and intelligence that Venture Taranaki has exposed us to.”

Nukes Weco, PLS Builders (New Plymouth)

Brochures: A Venture Taranaki directory of services for the enterprise development team was developed and produced in March to aid new clients in understanding what was on offer. Approximately 1500 of the brochures were printed, providing a brief introduction to the majority of services offered by the enterprise development arm dedicated to the region’s business and enterprise communities.

Business Support Services Nearly 1700 clients have been assisted through Venture Taranaki’s Business Support Services in 2005/06, vastly exceeding the key performance indicator of 1000 for the year.

A total of 1681 clients were supported, with an additional 20 medium to high growth businesses receiving intensive dedicated client management. Venture Taranaki’s independently collated client satisfaction survey reported that more than 93% of business support clients were satisfied or more than satisfied with Venture Taranaki and its services.

Learning and Development/Living and Working Websites: Venture Taranaki’s economic development team’s two flagship websites have been extremely busy this year. The Learning and Development website developed and placed online in April 2005 has been refined and well-utilised by providers and potential students alike, with a total of 2895 unique visitors during the year.

This website offers an overview of short courses available in the region from training providers.

The Living and Working website – developed and launched late last year – is Taranaki’s recruitment website, and includes information on available jobs and lifestyle choices. This website is picking up good traction in the marketplace, both with employers and job seekers. Employers using the site to advertise their vacancies for free are reporting a good flow of applications from New Zealand and overseas. A total of 18,923 unique visitors logged onto the website during the year.

Enterprise development manager Michelle Jordan with copies of Venture Taranaki’s new directory of services for enterprise development.

Venture Taranaki and the Foundation for Research, Science and Technology work in partnership to help local businesses undertake challenging research and development (R&D) projects that convert clever ideas into competitive new products, services or processes. The Foundation is New Zealand’s single largest investor in R&D and we rely on a network of agents, such as Venture Taranaki, to help us ensure those funds are targeted at supporting innovation in all corners of New Zealand. With its detailed knowledge of local businesses, Venture Taranaki is our eyes and ears. Its staff are on the spot and know what is happening, ensuring we can match clients with the right investment option to stretch companies beyond ‘business as usual’ development and explore new activities with strong commercial promise. Venture Taranaki is increasingly taking a lead on identifying candidates for investment and helping them navigate the processes in securing support for R&D that grows capability and has the potential to deliver significant returns, regionally and nationally. Venture Taranaki has a great team and together we are doing great things with local companies.

Lins Kerr, Senior Business Manager, Foundation for Research, Science and Technology.

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Venture Taranaki Annual Review 17

Oil and Gas Specialist Technologies Cluster:

Enterprise Training Programme:

After a review of membership structure and the introduction of a subscription, the Oil and Gas Specialist Technologies Cluster is progressing strongly this year.

Membership during the year has settled on 19, excluding Venture Taranaki, and all members are committed to a collaborative approach to the future. The membership, which includes three new members in the last financial year, are now working at getting to know each other, sharing information and working collaboratively. The cluster attended September’s New Zealand Oil and Gas Conference in New Plymouth.

This programme, run by Venture Taranaki for New Zealand Trade and Enterprise, has been extremely busy this year, with 1403 participants attending 66 workshops plus four investorready courses during the 12 months. These figures also include one Catalyst course involving 11 participants and a series of eight workshops, and two advanced business programmes. More than 660 attendees were female, and 9% identified themselves as Maori.

Venture Taranaki has once again been successfully awarded the ETP contract by NZTE for the next two years, and will continue to run programmes that are identified as in line with the region’s development needs.

Catalyst: Venture Taranaki’s groundbreaking Catalyst training course for tourism operators has now gone national, with the first out-of-region participants graduating from the Gisborne area in May. The high impact course, developed over a two-month period in 2004, has since been snapped up by North Canterbury and Marlborough, with other economic development agencies eager to find out more about the eight-module acceleratorbased programme. Two Catalyst courses have been held in Taranaki since its inception, catering for approximately 24 tourism businesses. The course is designed to accelerate tourism operators towards early Qualmark accreditation, with half of the Taranaki graduates now Qualmarked and the rest on their way. Catalyst is supported

by New Zealand Trade and Enterprise, and will be reviewed and refined for offer in 2006/07.

“ Taranaki is one of the most vital regions in New Zealand, with strong growth in regional GDP, employment and business development. Venture Taranaki provides superb leadership to the region through its economic development strategy and its excellent service to local businesses that are looking to build their own capability to grow. This leadership has been recognised by the Economic Development Agencies of New Zealand organisation (EDANZ) when it awarded Venture Taranaki the inaugural Practitioner Award for Excellence in Regional Development award at its last national conference. The award is a great honour to Venture Taranaki. New Zealand Trade and Enterprise is very happy to partner with Venture Taranaki in its economic development work, and to assist in lifting the export potential for Taranaki businesses. It is gratifying to see such good results coming from the region, and there is always more work to be done.”

Liz Tennet, Regional Economic Development Advisor, NZTE.

Business Confidence and Growth:

Business Development Opportunities:

Taranaki businesses are still predicting an improvement in the national economy, but the numbers have dropped during the year. Venture Taranaki’s most recent business survey showed the majority believed that general business conditions would remain the same, with slightly higher levels of optimism within businesses based in the New Plymouth District and South Taranaki, and Stratford businesses showing more caution. More than half of those surveyed anticipated stable industry conditions, with the oil and gas and communications industries most optimistic. Other conclusions included:

The Trust has been active in its support of a number of initatives to develop new local, national and international markets for organisations and companies this year. Projects have included:

• Half those polled believe the economy will remain the same; • The majority anticipate sales in the coming six months to remain at similar levels; • Staffing levels are tipped to remain static, although 28% anticipated staff numbers would increase; • Businesses aligned with farming were most pessimistic; • Fuel prices, the exchange rate, cost pressures, skill/employment shortages, Government (regulations, funding etc) and the dairy payout were amongst the prime issues affecting Taranaki businesses.

New Plymouth Farmers Market – Venture Taranaki assisted organisers of the New Plymouth Farmers Market with future development plans.

Port Taranaki Marina – A feasibility study is currently underway into a proposal to develop a marina at Port Taranaki.

New Plymouth Golf Course – Venture Taranaki investigated the redevelopment of New Plymouth as a golf/golf training destination for New Zealand.

Governance Capability – A study into governance capability increases and availability will be ongoing this year.

Emigrate 2005/06: A contingent from Taranaki once again attended the highly successful annual emigrate expo in Sandown, London. Representatives from Venture Taranaki and the New Plymouth District Council dealt with a huge amount of enquiries about Taranaki from the more than 30,000 people who attended the expo.

“ Being in business gives you responsibility, not privilege. It’s hard graft, especially when the ‘honeymoon period’ is over. Learning to be business smart is hard, and isolation is a very destructive thing when you’re trying to work out what you want to do and how you’re going to get there. That’s where business mentoring comes in. Mentors take out the heart and put in the head, we offer effective communication skills, and listen more than talk to begin with. We are coaches, not consultants. We provide opinions and ideas, not services. And it works!”

Lyndsay Loveridge, HQ Headquarters hair salon director, Taranaki business mentor

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Venture Taranaki Annual Review 19

Tourism Highlights

More Visitors:

Tourism Website:

Taranaki’s visitor statistics have seen a 16.7% increase in the year to March 2006, with nearly 540,000 visitors to the region. This increase represents 77,200 more visitors to the region between April 2005 and March 2006, compared with the national increase of just 2%. Statistics New Zealand Commercial Accommodation Monitor figures say last year’s guest nights in commercial accommodation increased by 7%.

Venture Taranaki’s tourism website has witnessed a year of intense activity, with the completion of an upgrade in look and content, plus a huge jump in users. From March to June this year, a total of 11,879 unique visitors logged onto the site, averaging 115 per day. The total hits on the site totalled 1.795 million, with an average of 14 pages viewed per session, and an average surf session of six-and-ahalf minutes.

(Taranaki)

Visiting Friends and Family: A Visiting Friends and Relatives survey, commissioned in November 2005, has gauged for the first time the numbers of visitors coming to Taranaki which are not picked up through Statistics New Zealand’s Commercial Accommodation Monitor. The figures, collated since November last year, have shown just how crucial the VFR market is for Taranaki, with an estimated 884,000 nights spent in private accommodation by this market. Of those, 652,000 were of domestic origin, with the top four regions being Auckland 29.7%, Wellington 15.5%, Waikato 14.7% and Bay of Plenty 11.3%. Approximately 231,000 nights were estimated to be those spent in Taranaki by overseas visitors, with Australia leading the charge on 34.9%, the United Kingdom at 26.8% and other European countries at 14.4%.

The two significant reasons for friends and relatives travelling to Taranaki were visiting (61.7%) and holidays (31.3%).

“ The key to Taranaki’s success lies not so much in the completion of the regional tourism strategy recommendations, but in the leadership across the region. Taranaki’s leadership at district and regional government level is robust, and Venture Taranaki is well placed to work together with key central government agencies and the private sector to ensure the further development of tourism in Taranaki is advanced even further in this coming year.”

Geoff Burns, Chair, New Zealand Tourism Industry Association

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Venture Taranaki Annual Review 21

Marketing Collateral:

Lifestyle DVD:

An array of brochures and pamphlets have been produced by the tourism department this year, adding to the crop of collateral Venture Taranaki now has working for the region around the country. Included in this year’s offerings is a refresh of both the Surf Highway 45 and Forgotten World Highway 43 touring route brochures (in partnership with the region’s i-SITE network), a glossy trade and convention planner, regional ‘things to see and do’ tear-off sheets, and the production of regional flags. All have been well received by industry players and the public.

Taranaki’s lifestyle DVD, produced in association with the regional brand roll-out in September 2005, has proved extremely popular with Taranaki people. More than 200 copies of the six-minute DVD depicting the best of the region have been snapped up for overseas trips or gifts for visiting friends and family since its production in late 2005.

Venture Taranaki hosted and/or assisted several international and national journalists and film crews to the region during the year. These included: • The Great Outdoors (Australia) • New Zealand Movie Paradise documentary with Phil Keoghan and Discovery Channel (USA)

Western North Island Macro Alliance: A new alliance with regions clustered under Tourism New Zealand’s Western North Island macro alliance – Taranaki, Wanganui and Manawatu – has led to the creation of joint trade sector maps and other marketing collateral. Regular meetings have been held to outlay the unique selling points of the collective regions, with further work earmarked for the coming year.

• Hong Kong Economic Times • Lonely Planet (USA) • The Waikato Times (x2) • Manawatu Standard • New Zealand House and Garden magazine • New Zealand Woman’s Weekly (x2) • Television NZ (Wellington) • TV3 (Wellington) • Maori Television (Auckland)

“ The Catalyst course I attended at Venture Taranaki last year was thoroughly enjoyable, and I would recommend it to anyone who wished to look at all aspects of working in and on their business. It was an honour to be asked to attend the course, as we have only been in business in Taranaki a short time.

The networking was personally fantastic, a highlight as I am only relatively new to the region and found it very beneficial. The speakers on all different aspects of the programme were very well selected and helpful. I particularly enjoyed the one-on-one, enabling me to discuss all aspects that related to my own business, and I have instigated quite a few ideas and put them into place in my business. I also found discussing problems with other operators very beneficial, and listening to how others solved them.

We are very lucky that Venture Taranaki offered us all the different courses and opportunities free to participate in, and I would personally recommend to anyone coming into business to make Venture Taranaki a first port of call for help.”

Pennie Sands, Environmental Products (Mahoe)

Trenz 2006:

Taranaki Convention Bureau:

Despite a week punctuated by snow and near-zero temperatures, Venture Taranaki’s tourism team had a successful time at the Tourism Rendezvous New Zealand convention in Christchurch in June. A total of 44 appointments were conducted with buyers from New Zealand, Australia, the United Kingdom, Europe, Malaysia and China, and meetings held with media representatives. Along with the VT team, Taranaki was represented by Quality Hotel Plymouth International and Maori Tourism Taranaki. As well as showcasing the region to the world, Taranaki’s representatives attended a briefing on the new direction Tourism New Zealand is undertaking in the Australian market. Taranaki has attended TRENZ for the past two years. The next event will be held in Rotorua in May next year.

A strategy for the Meetings event was written during the year, which has developed into the establishment of the Taranaki Convention Bureau. The bureau’s focus is promotion and marketing of conference and incentive travel products and services, and will offer an independent impartial source of advice and professional assistance for buyers considering or planning a conference in the Taranaki region. The bureau will provide host destination familiarisations, introductions to support services, compilation of bid documents, site inspections and venue appointments, provision of support collateral and brochures, the formation of accompanying partner programmes, and incentive travel itineraries. The main contact point for the bureau is the website www.taranaki.co.nz/conventionbureau.

Tourism Industry Group:

Trade Famils

The development of a Tourism Industry Group to assist with communicating opportunities and co-ordinating relevant projects throughout the region has been progressing during the year, with a group of 14 industry movers identified to comprise the entity. This includes representatives from accommodation, transport, tourist activities, education, events, the Department of Conservation, retail and Maori tourism.

Venture Taranaki has been involved in two major retail travel trade familiarisation visits this year.

They are: • United Kingdom ‘mega famil’, involving 15 United Kingdom-based travel agents from various retail travel agencies (March 2006); • KEA (Kiwi Expert Agents) famil, involving 15 Western Australia and New South Wales agents who spent five days in the region visiting a number of top Taranaki tourism operators (March/April 2006).

“ Over the past few years, visitor numbers to Taranaki have increased significantly.

The challenge for 2006/7 is to ensure that yield over the high season is maximised and that we look to extend the shoulder periods of the high season from December to April.

The newly formed Convention Bureau will help drive business into the traditional low season, which is the main business period for conferencing and exhibitions. Development of marketing collectives to enable deeper penetration into targeted markets, and the development of product and nurturing of operators to be “best in class”, will also be a priority.”

Paul Stancliffe, Tourism Leader, Venture Taranaki

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Highlights For: Education Taranaki Engineering Taranaki Film Venture Taranaki Research and Marketing

Education Taranaki

Lion Foundation Young Enterprise Scheme: Taranaki continues to out-perform the rest of New Zealand when it comes to supporting YES. With 85% of Taranaki schools running YES (compared with a national average of 36%) the experiential business programme developed by the Enterprise New Zealand Trust and financially supported by Venture Taranaki is ‘big business’ in the region. Taranaki’s 2005 winner was Kardeze from Spotswood College, which joined Peak Design from Hawera High School as the first two regional teams to ever win excellence awards since YES began in 1989. The YES programme is aimed at Year 12 and 13 students, and requires teams to set up companies, create real products or services, implement marketing plans, earn money, pay tax and enjoy profits…all supported by a business mentor, teacher, online community, regional co-ordinator and the national office.

Education Taranaki is a regionally focused education group which strives to develop an educational environment that supports and values lifelong learning, and is accessible to all people so that they can participate in social and cultural life, and benefit from economic growth. Other successes this year include:

Business @ School: Education Taranaki has run information campaigns in schools offering career advice about skill shortages particular to the region, profiled more than 30 young business owners, and asked 400 students about their future career aspirations in a research project.

Taranaki Careers Website: Launched in August 2005, this website was nominated as the best youth site in the NetGuide Web Awards.

Other YES highlights: The fast-tracking of an Education Taranaki idea to use Young Enterprise credits as Entrance to University has been successful, with New Zealand Qualifications Authority and the Government implementing the idea from this year.

Three Taranaki students took part in the 2006 Global Challenge, with one picked for the New Zealand team Action International. Students from 15 countries submitted business plans by video link to a Scottishbased judging panel, with Wales taking overall honours. Action International won the creativity award.

School Leavers Research: Education Taranaki’s unique school leaver tracking model has shown a decline in the number of students leaving school with no or low qualifications during the year.

Education Taranaki International: Research has confirmed that international students bring $30 million into the Taranaki regional economy annually, making this one of the biggest export sectors in the region. Education Taranaki has promoted Taranaki to a diverse range of cultures within major marketing campaigns, and the region now boasts 24 different nationalities throughout schools and the highest satisfaction rates for student support services in New Zealand. Nine institutes supported the New Plymouth District Council in a recent visit to its Chinese sister city Kunming.

“ Research continues to play a major role in Education Taranaki’s portfolio. Through its independence, Education Taranaki is an ideal avenue for such projects. There are a number of research initiatives that Education Taranaki will be involved with in the coming financial year that relate to at-risk youth and their whanau, scholarships and youth employability.”

Zara Ryan, Chief Executive, Education Taranaki

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Venture Taranaki Annual Review 25

Engineering Taranaki

CApENZ is part of a major regional initiative to develop and promote Taranaki as New Zealand’s foremost internationally competitive centre of applied engineering. It is supported

by Venture Taranaki Trust and funded by New Zealand Trade and Enterprise.

CApENZ is an innovative partnership between the Engineering Taranaki Consortium and the Western Institute of Technology, bringing together engineering companies from across the region.

Taranaki Health Safety and Environment Centre: Taranaki’s HSE Centre, opened

by CApENZ in 2004, won the ACC-sponsored Thinksafe ‘best leadership of an industry sector’ award in Auckland in April.

CApENZ was up against other finalists including the Central North Island Timber Processing Forum (Rotorua) and the Northern Gateway Alliance (Auckland).

More than 300 people attended the awards dinner, and more than 110 applications were received over the various categories.

CApENZ has now entered an agreement with Northland Training Group in Whangarei to assist it in setting up an HSE centre similar to the one in Taranaki.

HSE Course a Must for Oil Workers: Shell Todd Oil Services has signed an agreement to accept the CApENZ Taranaki Basic HSE training course as the basic minimum standard training requirement for employees and contractors undertaking activities on all STOS sites throughout Taranaki. It is anticipated that other major operators in the region will sign into the agreement. More than 100 industrial workers have now successfully completed the Taranaki Basic HSE training course, which has received endorsement by the construction, dairy and petrochemical industry training organisations. It is expected another 400 workers will complete the course by March 2007.

ENGINEERING TARANAKI APPRENTICES 250

Apprentice Numbers

200 150 100 50 0

2003

2004

Year

2005

2006

“ Domestically, engineering is fairly buoyant with the ongoing development of the Kupe, Tui and Maari oil and gas fields, and the next 12 months should see more of the same.

The issue for us over this period and beyond is to attract new young faces into the profession, and with 190 apprentices currently in engineering, that initiative is working well. Our new career mentoring website will assist further, as will the new contract that the Engineering Consortium has with WINZ to channel more young unemployed people into a career with great future prospects.”

Brian Souness, Chief Executive, Engineering Taranaki Consortium

Career Mentoring Programme: Engineering Taranaki has started a career mentoring programme, with a new website going live in July. The website can be used by potential engineering students, and will offer information regarding their chosen career pathway. The interactive site will include video clips of young graduates and apprentices talking about their jobs and why they chose them, and will also have a registration page where students can apply for a ‘mentor’ to assist them in their career choice.

Apprenticeship Awards: The Taranaki apprenticeship awards were resurrected in September to celebrate excellence in apprenticeship training.

Engineering apprenticeship numbers are increasing in the region, with more than 180 apprentices currently employed through the engineering trades in Taranaki. This success has been achieved through partnership with Competenz (Engineering Industry Training Organisation) and the Tertiary Education Commission (Modern Apprenticeship Programme).

Engineering DVD: Career promotion was a major initiative for Engineering Taranaki this year, with an engineering careers DVD produced for new engineers. Launched at Fitzroy Yachts, more than 200 people attended the presentation, resulting in a 50% increase in the number of students considering a career in engineering at the Taranaki careers expo.

Taranaki 2 Work – Engineering: CApENZ has recently entered into a ‘job partnership with industry agreement’ with the Ministry of Social Development (WINZ) entitled “Taranaki 2 Work – Engineering”. This will allow for a Regional Engineering Coordinator to create opportunities for jobless people to access training in the engineering field and secure long term employment.

Darwin Conference: CApENZ’s CEO Brian Souness was invited by the Northern Territory Government to be a keynote speaker at the ‘Partner Up Forum’ in Darwin, Australia to look at collaboration between engineering companies in both the Northern Territory and North Queensland.

“ The Engineering Taranaki Consortium / Competenz partnership through 2005 / 2006 has really kicked up a gear. The positive stance that the consortium has, both in the market and with their consortium members, has given real impetus to Competenz in achieving its goals for Taranaki. With more than 200 engineering apprentices and close to 500 trainees across various sectors, we have effectively doubled our business in the region. For the next year, and with the scale we now have in the business, both the consortium and Competenz have some exciting initiatives to work on together and the relationship we have with Engineering Taranaki Consortium is continuing to be groundbreaking.”

Ken Wilkinson, Competenz

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Film Venture Taranaki

Television Commercials: This year’s big story has been the breakthrough in international TVC productions. Since December 2005, the region has experienced a major lift in the number and quality of incoming high end television commercials.

The subject matter has been exclusively for dairy commercials for milk, yoghurt and ice cream made for audiences in Japan, Korea, France and Germany.

It may seem obvious that Taranaki would be attractive in this particular subject to advertisement-makers in the Northern Hemisphere, but previously this type of work went to either Auckland/Waikato or Christchurch/Queenstown.

It is therefore encouraging that Taranaki has been gaining some traction as a location for these markets.

These types of productions shoot 35mm film, have a minimum of 35-strong crew and bring all film equipment from Auckland or Wellington. The overwhelming experience of the productions has been very positive – the friendliness and helpfulness of Taranaki people, the quality of the support industries such as catering, suppliers, hoteliers and the like.

Afci Locations Expo, Santa Monica: This global locations exposition is held each May in Los Angeles.

Wearing his Film New Zealand hat, Film Venture Taranaki’s Peter Avery was once again invited to represent the regional offices on the stand at the three-day event.

This year the organisers were very happy with both the attendance numbers and the quality of the visitors.

With an even spread of visitors to most booths, it was clear that New Zealand’s stand was attracting its fair share of visitors.

Places like South Africa were very popular, as were the American state and regional booths. The main enquiries to the New Zealand stand representatives were questions around the Large Budget Production Grant Scheme and the availability of crew and sound stages. Most people expressed a desire to shoot in New Zealand, or wanted to visit for a holiday.

Many visitors commented on the no-nonsense appearance of the New Zealand stand, which was in its usual black but with a strip of white. Whilst still very much ‘Team New Zealand’ in branding, the stand presented a clean look that let the images tell the story.

Film Venture Taranaki received a third-place marketing award for the electronic category for the ‘Taranaki Locations From the Air’ DVD. “Although I had known about Taranaki for some time, I hadn’t considered it as a filming location until bad weather forced us there…then we discovered a filmic wonderland. We found so many great locations and the people so helpful that within three days we were back on schedule with some great images.

“Next time we will be considering Taranaki as an option early on in the piece”.

Declan Cahill, Producer, Mopix Films

A visiting French production used Taranaki’s lush pasture…

“We were shooting a scene where the camera flew down from an epic aerial shot of green fields, and swooped down into a big close-up of the grass in the meadow. A swirling ‘tornado’ was created from the grass as the camera moved forwards. What a gorgeous part of the country you are promoting. I was blown away, and can’t wait to get back down there! Highlight was the caterers!!

HOT STUFF. Fantastic.”

Treza Gallogly – producer of the French yoghurt TVC.

“ Within the next twelve months, Film Venture Taranaki will revamp the website and continue to attract and support all levels of filming activity. We are hopeful of another summer of offshore television commercials, but as this market is fickle and fashion driven, there can not be any guarantee of success. With the lower dollar we are hopeful of increased feature film interest, and the level of enquiry has grown within the last couple of months.”

Peter Avery, Film Venture Taranaki commissioner

Research and Marketing

Regional Intelligence Unit: Venture Taranaki continues to undertake research on potential industry sector opportunities as well as key issues affecting the region. This year, these have included: New Zealand and Masters Surf Lifesaving Championships economic impact report The Nationals and Masters surf lifesaving events held at Oakura and East End Beaches from March 16 to 19, 2006, attracted a total of 1126 competitors, including 933 athletes from outside of Taranaki. A total of 43 surf lifesaving clubs took part, with total expenditure from event organisers, out-oftown athletes and visitors estimated at $1.25 million.

This comprised direct expenditure of $855,000, with follow-on spending of $400,000. An estimated $260,000 was injected into local households in the form of salaries or wages as a result of the event.

Venture Taranaki Customer Satisfaction Survey Taken over the July 1 to December 31 2005 period, survey conclusions showed that customer satisfaction figures regarding Venture Taranaki’s economic development agency exceeded 90% across the board. Approximately 93% of respondents were satisfied, more than satisfied or very satisfied with VT in general, with the majority confirming that VT met their business needs. Start-up clients reported the highest level of general satisfaction, although many respondents reported a lack of community awareness of the full range of available VT services.

Training services were rated the single most important service, with advisory/support for existing businesses and marketing support close behind.

Taranaki Trends and Business Surveys – two each per year Taranaki Trends and Business Survey documents, published every six months, were produced by the regional intelligence unit. The first business survey, published in the third quarter of last year, included a special review of fuel price changes on Taranaki businesses. The Taranaki Trends, published in the first quarter of 2006, compared 2000 with 2005, noting the increases in numbers of businesses, employment, visitors and guest nights in Taranaki over the five-year period.

Hundreds of competitors flocked to the New Zealand Surf Lifesaving Championships at Oakura Beach in March.

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ITU Triathlon Economic Impact Report Taranaki held its first ITU World Cup Triathlon (with associated Weetbix Kids Tryathlon and New Zealand Age Group Selection Triathlon) in November 2005.

An economic impact report completed in March showed that total expenditure by event organisers and non-Taranaki-based athletes, visitors and spectators came to an estimated $3.01 million. A total of 96 elite athletes competed in the main event (of which 75 were from outside New Zealand), 181 athletes competed in the age group event, and 2000 children took part in the tryathlon. An estimated 10,000 spectactors viewed the ITU event, with media exposure via television, websites and sporting magazines. The equivalent of 27 fulltime jobs were created, with a corresponding $560,000 injected into local households in the form of wages and salaries.

Websites:

Advertising and marketing has covered a wide range of genres this year – thanks to some largescale projects and events. Taranaki’s major daily newspaper and two main radio networks were well utilised, and other smaller publications and out-oftown media outlets used for specific events such as the Taranaki Rhododendron and Garden Festival.

• Citymix magazine – Auckland

Venture Taranaki’s two major projects this year – the regional brand launch and the ITU World Cup Triathlon – were well advertised throughout the region and beyond. Publications used for advertising included:

• Live magazine

• Ontour – the official NZRU travel guide of the British and Irish Lions Series 2005 in New Zealand

The year has been a busy one for Venture Taranaki’s websites. Existing portals have been updated and refurbished, and new sites added on for specialist subjects.

Regional Intelligence Publications: More than half of Taranaki businesses have accessed one or more of Venture Taranaki’s regional intelligence publications. A total of 54% had read a Taranaki Trends, 52% had seen a Business Survey, 26% read Venture Taranaki’s Enterprise News e-newsletter and quarter had surfed the website.

All three written publications were ranked as above average in usefulness.

• Central Today – Knowledge for growing businesses • New Zealand Trade Manual • Arrival guide to New Zealand

• V02 Max magazine • New Zealand Outside Snow • Sunday Star-Times • Homestyle – real homes affordable style

“ Taranaki has now consolidated itself as a top performing and exciting place to be.

The region is ‘getting itself together’ on all fronts, including business growth, heaps of confidence, great events and a fantastic new Taranaki brand to let the world know just how great we are – in fact ‘like no other’. The challenge moving forward is to proactively seek out and facilitate potential major growth opportunities in the business, community and infrastructure areas to retain this momentum, keep the region humming and ensure that as Auckland steadily becomes more congested, Taranaki is the first region of choice for individual and business relocation.”

Vicki Fairley, Marketing Manager, Venture Taranaki

Key Performance Indicators TARGET KEY PERFORMANCE INDICATOR ECONOMIC DEVELOPMENT ACTIVITY FOUNDATION SERVICES BUSINESS START-UPS • 100 Clients assisted • 25 Business start-ups • 30 new jobs • Level of post contact satisfaction with VTT service Business Advisory Service • Provision of business advisory “help service” through efficient use of direct contact, call centre and web enabled “information hubs”.

• Development and maintenance of Business Tool Kits, including client self assessment / self help kit options.

• 1000 client enquiries assisted.

• Survey of client satisfaction – 85%+ satisfaction rate Business Mentoring • 80 Mentor Matches • Independent survey undertaken by Business Mentors NZ, indicates above- average performance in relation to service quality.

Maori Business Development/Relationship Building • Undertake a feasibility study of business start up funding for businesses operating at the Whanau level (as opposed to Hapu or Iwi levels).

• Implement a targeted governance (trustee) training product to assist the direction and strategy of Maori businesses.

• Investigate a scholarship fund to assist in the further development of prospective Maori business people.

Regional Intelligence and Communications • Taranaki Trends – produced six monthly • Business Surveys – undertaken six monthly • Economic Impact Analyses – two undertaken • E-Newsletter – sent to VTT customers at least six times per year • V TT Website – maintained and updated every two weeks • Jobs Website – (weekly) maintenance and measurement of site • Usage by customers’ indication of quality and value to customer.

District Marketing • Implementation of a targeted product development and promotional strategy based around developing the region’s economic profile and by major existing and new events.

• Maintenance of ticket sale records for events, where possible, and analysis of buyer behaviour.

• Implementation of recommendations from signage review.

• Strategy developed and run to the satisfaction of the Council Celebrating Business & Service Excellence • Facilitation and support of business/customer service award initiative.

• Support demonstrated through participation of key local businesses.

HIGH IMPACT INTERVENTIONS HIGH GROWTH BUSINESS SUPPORT • 20 Medium/High growth businesses identified and dedicated client relations advisors appointed to account manage needs and ensure meaningful interventions are provided to locate new market opportunities and to assist improved growth.

• Run an ‘Investor ready’ seminar by December for selected firms.

• Survey of client satisfaction with 85%+ satisfaction rate REGIONAL INVESTMENT NETWORK • Feasibility and promotion of regional investment network with an investigation into a community bond.

• Development of programme that includes regular interaction with major investment bodies, trusts and professional service groups.

• Progress towards formal network status.

30 Venture Taranaki Annual Review

ACTUAL ACHIEVEMENT 2005/2006

153 Clients assisted 70 Business start-ups 35 new jobs Achieved Provided Achieved 1681 client enquiries 93.1% overall satisfaction 109 Mentor matches Above average performance

Achieved Ongoing Achieved – 1 scholarship fund distributed 2 Editions September 2005 and March 2006 2 Editions November 2005 and June 2006 2 Undertaken. ITU Triathlon Q3 & Surf Lifesaving Nationals Q4 7 Editions 32 updates Achieved Assessed (See page 29) Achieved

Achieved Achieved Achieved Top Shop held June 2006 Demonstrated – 340 shops nominated

Achieved

2 seminars conducted (Second seminar run to meet demand) 92.9% satisfaction rate Achieved Achieved Achieved

Venture Taranaki Annual Review 31

TARGET KEY PERFORMANCE INDICATOR FILM • Provision of film unit to proactively seek and respond to prospective film location opportunities.

• Oversee and promote the Taranaki Film Commission Fund as an equity investment into film attraction for the region.

• Receive two (2) EOIs to the above fund.

• The NZ Film Commission continues as a joint partner in the Film Commission Fund and to obtain 10% of matched funding.

INFORMATION COMMUNICATION TECHNOLOGY (ICT) • Provision of facilitation services to encourage collaboration in cluster stage and then design a strategy for syndicate effort. VTT will administer this syndicate at least in its formative stages.

• Achievement of KPIs outlined above to the satisfaction of the cluster.

• Maintenance of syndicate membership.

EVENTS • To attract/retain two significant events

• To increase by 2,000 bed nights external visitors to the region.

• Events are timely (extend the traditional visitor season) and appropriate for the District.

FOOD PROCESSING AND MANUFACTURING • Provision of facilitation services region wide to assist implementation of KPIs contained in Sector Business Plan.

These include: – Active promotion of industry capabilities through website and cluster database.

– Product R&D and Market Research.

– Industry Forum – Three market intelligence/capability building workshops to strengthen local collaboration.

– Three newsletters to sector members.

– Development of list of products for syndicated brand.

• Quality of programme reflected in membership levels – at least 10 members active in cluster.

LEARNING & DEVELOPMENT • Provision of facilitation services to assist implementation of KPIs contained in Sector Business Plan. These include: –A ctive promotion of industry capabilities through central portal website and cluster database – Syndicated Market Research – Two market intelligence / capability building workshops – Strengthening local collaboration and new learning solutions.

• Quality of programme reflected in uptake on L&D programmes and increased dialogue between providers.

HIGH IMPACT PROJECTS – NEW OPPORTUNITY RESPONSE CAPACITY • To identify at least three new projects offering significant benefits to regional development.

• Undertake feasibility analysis of the above, and respond as appropriate (and in consultation with NPDC) to maximise benefits to the region.

ACTUAL ACHIEVEMENT 2005/2006 Achieved Achieved Achieved Achieved

No Action taken. These KPIs were non NPDC funded, and funding was not able to be successfully sourced from alternative sources.

1) I TU World Cup and associated events 2) National Surf Lifesaving Champs 3) Dutch Mill Round the Mountian Cycle Challenge 4) National In-line Hockey Champs Achieved Achieved

Provided Achieved. Database available on www.taranaki.info Achieved Achieved Achieved Achieved Achieved Achieved

Provided Training Needs Survey Undertaken Undertaken on 15.11.05; 28.02.06 Achieved Achieved

Achieved Achieved • Farmers Market redevelopment assisted into an agri-tourism event for the city.

• Golf Course redevelopment currently being investigated.

• Directors Network currently being investigated for region.

• Aluminum Production relocation exercise

TARGET KEY PERFORMANCE INDICATOR ENABLING SERVICES OIL & GAS SPECIALIST TECHNOLOGIES CLUSTER • Provision of facilitation services to assist implementation of the KPIs contained in cluster business plan. These include: –A ctive promotion of industry capabilities through website and cluster database.

– Review membership based on commitment to Cluster.

– One report on market intelligence / capability building to strengthen local collaboration.

• Quality of programme reflected in future action plan from 20 plus members active in cluster.

ENGINEERING • Provide final stages of contract management of the Centre of Applied Engineering in NZ Major Regional Initiative.

• KPIs achieved to the standard determined in the contract.

ACTUAL ACHIEVEMENT 2005/2006

Provided Provided Undertaken Independent report commissioned and received Action Plan in Place – 19 Members excluding VTT The review of membership and subsequent introduction of an annual subscription led to a reduction in initial numbers with those in cluster fully committed to collectively working together Achieved Contract Management Target Achieved - Tech Trades 65 EFTS 99 EFTS - Sales Growth $37m $42m - Export Growth $6m $7m - Demonstrated efficiency gains $2 m $1.4m - Regional $Contributions to MRI $302,858 $617,366 ( All measurements are on a 30th September year basis as per contract.)

BUSINESS GRANTS SERVICE • Grants totalling at least $600,000 approved to Taranaki businesses to assist high growth companies.

PORT HINTERLAND REDEVELOPMENT • Commercial project is progressed and a confidential briefing to key stakeholders, including NPDC is undertaken.

• Progress reported to Council and Regional Council – Councils satisfaction with progress and quality of outcome.

INTERNATIONAL RELATIONSHIPS • Undertake two international trade promotion projects in partnership with local businesses and the council, to promote the region and discuss opportunities for trade, employment and regional development.

• Project quality assessed by Council management, based on project.

YOUNG ENTERPRISE SCHEME • Over 20 teams participate.

• To run the programme in partnership with Education Taranaki to the standards determined by Enterprise New Zealand Trust REGIONAL TOURISM CONTRACT SUSTAINABLE PRACTICES AND RELATIONSHIPS WITH THE LOCAL COMMUNITY ONE REGION Quantity At least 2 articles per month either locally or nationally celebrating tourism benefits and activities in Taranaki Quality The content of articles must be positive about regional tourism benefits and activities

32 Venture Taranaki Annual Review

Actual $832,053

Achieved Achieved

Achieved Promotion projects included Emigrate 2005 and launch of living and working website for recruitment and attracting labour – www.taranakijobsnz.com Fully allocated to major investment opportunity with NPDC agreement Achieved. 25 teams participating Achieved

Achieved

Achieved

Venture Taranaki Annual Review 33

TARGET KEY PERFORMANCE INDICATOR PROACTIVE LEADERSHIP, COMMUNICATION & PLANNING PROACTIVE LEADERSHIP & COMMUNICATIONS Quantity Identify at least ten key national tourism organisations Quality Establish and develop ongoing strategic working relationships ESTABLISH A NEW TOURISM ADVISORY GROUP (TAG) Quantity Identify 12 experienced people willing to participate in Tourism Advisory Group Quality Draw upon skill sets and networks from public/private, local/national and tourism/wider industry bases ESTABLISH AN ONGOING PROGRAMME OF LOCAL TOURISM STAKEHOLDER MEETINGS Quantity Two stakeholder meetings per annum Quality Local tourism stakeholders remain fully informed of progress DEVELOPING THE RIGHT PRODUCTS FOR THE RIGHT MARKETS DEVELOPING DISTINCTIVE PRODUCTS Quantity Encourage 5 operators per annum to achieve a Qualmark grading Quality Achieve Qualmark accreditation

ATTRACTING THE IDEAL VISITORS Quantity Two annual surveys (one visitor satisfaction etc, one residents’ attitudes etc) Quality Create measurement benchmarks

REDEVELOPMENT OF THE TARANAKI BRAND Quantity Identify and commission suitable professional branding agency Quality Brand reflects regional aspirations and positioning ENSURE VTT BUILDS A STRONG RELATIONSHIP WITH TNZ Quantity At least 5 meetings per annum with key TNZ managers Quality Strong working relationship developed and maintained PROVIDE AN ONGOING COMMUNICATIONS FUNCTION Quantity Taranaki articles appear at least four times per annum Quality Key regional branding themes and range of “things to see and do” are articulated

ACTUAL ACHIEVEMENT 2005/2006

Achieved Achieved

Achieved

Achieved

Achieved Achieved

Achieved Achieved. 33 tourism providers in the region have achieved Qualmark accreditation

Achieved VFR (Visit Friends and Family) research commenced monthly Achieved Economic impact surveys were undertaken for the ITU Triathlon World Cup weekend in November 2005 and the National Surf Lifesaving Championships in February 2006

Achieved. Extensive community consultation undertaken Achieved. ‘Taranaki like no other’ was launched with wide acclaim in September

Achieved Achieved

Achieved. Wide variety of articles appeared in a range of publications Achieved

TARGET KEY PERFORMANCE INDICATOR PROMOTE THE TARANAKI IDENTITY PROMINENTLY Quantity Four TLA plus VTT publications and advertisements (e.g. TVC) carry distinctive Taranaki brand Quality Publications and presentations reflect prominent and clearly articulated Taranaki brand UPDATE THE IMAGE, FILM AND SUGGESTED ITINERARY LIBRARIES Quantity At least 10 icon images and numerous (up to 100) supporting images are available to promotional agencies. Develop wider range of film images Quality Quality reflects technological advancement in image capture and production INVOLVING MAORI IN TOURISM MAORI REGIONAL TOURISM ORGANISATION Quantity One database of Maori businesses Quality Accurate and up to date DOMESTIC AND INTERNATIONAL MARKETING DOMESTIC MARKETING Quantity Establish convention bureau and attend at least one MICE event (e.g. Meetings 2005) per annum Quality Enhanced local coordination of MICE promotion INTERNATIONAL MARKETING Quantity Identify the range and scope of key travel motivations that can match interactive travellers with Taranaki’s key themes & products Quality Key travel motivations closely match Taranaki’s key themes and products SEASONALITY AND EVENTS SEASONALITY AND EVENTS Quantity Events calendar is produced and updated regularly Quality Events awareness and local industry coordination is enhanced DISTRIBUTION OF INFORMATION DISTRIBUTION OF INFORMATION Quantity 20,000 motivational and 110,000 visitor guides produced Quality High standard of technical production and distribution UPGRADE THE OFFICIAL WEBSITE OF TARANAKI TO REFLECT THE NEW THEMES OF THE REGION Quantity New website developed Quality High technical standard and range of functionality

34 Venture Taranaki Annual Review

ACTUAL ACHIEVEMENT 2005/2006

Achieved. All Councils are using the regional brand.

Achieved

Achieved. ‘Hero’ shots compiled as defined by the Taranaki brand Achieved. Wide range of film footage available in a high resolution format.

Achieved Achieved

Underway (launch of membership deferred until August 06) /Achieved (attended Meetings 06) Underway

Achieved. Themes dovetail with Tourism New Zealand’s “Interactive Traveller” strategy.

Achieved

Achieved. Events information is available via www.taranaki.co.nz and Taranaki Talk, VT’s e-newsletter.

Achieved

Ongoing (yearly) Ongoing (yearly)

Achieved Achieved. Stats on www.taranaki.co.nz show that the site averaged between 185 and 200 unique user sessions each day between January – March

Venture Taranaki Annual Review 35

Venture Taranaki Trust & Group Trustees’ Review For the year ended 30 June 2006 The Board of Trustees present their Annual Report including financial statements of the Trust for the year ended 30 June 2006.

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 Note

2006

2005

As at 30 June 2006

$

$

Cash & bank

541,215

538,536

Accounts receivable

120,553

314,749

Other current assets

10,645

5,134

GST receivable

22,738

19,514

695,151

877,933

Current Assets

Non Current Assets Property plant & equipment

2

149,183

108,031

149,183

108,031

Total Assets

844,334

985,964

392,068

430,043

Current Liabilities Accounts payable & miscellaneous accruals Employee entitlements

11

42,775

56,619

Deferred grant

77,333

180,768

512,176

667,430

Trust equity

332,158

318,534

Total Liabilities & Equity

844,334

985,964

Note

2006

2005

$

$

Equity

The accompanying notes form part of these financial statements These financial statements have been authorised for and on behalf of the Trustees by

Chairman

Trustee

Venture Taranaki Trust & Group Statement of Financial Performance For the year ended 30 June 2006

Revenue

4

3,100,788

3,413,945

Operating surplus/(deficit)

3

13,624

26,000

Net surplus/(deficit)

13,624

26,000

Statement of Movements in Equity For the year ended 30 June 2006

2006

2005

$

$

Net surplus/(deficit) for the year

13,624

26,000

Total recognised revenue and expenses

13,624

26,000

Equity at 1 July 2005

318,534

292,534

Equity at 30 June 2006

332,158

318,534

Note

2006

2005

$

$

The accompanying notes form part of these financial statements.

Venture Taranaki Trust & Group Statement of Cash Flows For the year ended 30 June 2006

Cash Flows from Operating Activities Cash was provided from: Interest

26,217

27,461

Grants and other income

3,138,244

3,279,245

3,164,461

3,306,706

Operating expenses

3,061,605

3,350,861

Net GST movement

(14,134)

15,351

3,047,471

3,366,212

12

116,990

(59,506)

Asset sales

150

200

150

200

Asset purchases

114,461

99,870

Net cash inflow (outflow) from investing activities

(114,311)

(99,670)

Cash was provided from:

–

–

Cash was applied to:

–

–

Net cash inflow (outflow) from financing activities

–

–

Net increase (decrease) in cash held

2,679

(159,176)

Opening cash brought forward

538,536

697,712

Closing cash carried forward

541,215

538,536

Cash was applied to:

Net cash inflow(outflow) from operating activities Cash Flows from Investing Activities Cash was provided from:

Cash was applied to:

Cash Flows from Financing Activities

The accompanying notes form part of these financial statements

36 Venture Taranaki Annual Review

Venture Taranaki Annual Review 37

Venture Taranaki Trust & Group Notes to the Financial Statements For the year ended 30 June 2006 1. Statement of Accounting Policies Reporting Entity Venture Taranaki Trust is a Council Controlled Organisation as defined in Part 1 Section 6 of the Local Government Act 2002, and a Charitable Trust under a Trust Deed dated 27 May 1998. 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. As Taranaki Pure Limited is a non trading subsidiary there are no parent and group accounts and under Section 7 of the Local Government Act has been granted an exemption from being a Council Controlled Organisation. The financial statements are a general purpose report which have been prepared in accordance with generally accepted accounting principles as required by clause 7.1 (4) of the Trust Deed.

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.

Accounts receivable are stated at their estimated realisable value.

Property, plant and equipment are stated at cost less aggregate 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 Cashflows 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 noncurrent assets.

Financing activities comprise the change in equity and debt capital structure of the Trust.

Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are included in the determination of the operating surplus in equal instalments over the lease term.

The financial statements have been prepared on a GST exclusive basis, with the exception of receivables and payables whose invoices include GST. 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 FRS10.

Foreign currency transactions covered by forward exchange contracts are measured and reported at the forward rates specified in those contracts.

Changes in Accounting Policies There have been no changes in accounting policies. All policies have been applied on a basis consistent with those used in the prior year.

2. Property Plant and Equipment 2006 Cost

Current Year Depn

Accumulated Depn

Book Value 2006

Leasehold alterations

71,612

–

71,612

–

Fixtures and fittings

85,433

785

80,261

5,172

Office equipment

252,095

54,325

182,033

70,063

Other fixed assets

35,482

5,613

15,581

19,901

Motor vehicles

66,633

12,586

12,587

54,046

$511,255

$73,309

$362,074

$149,183

2005 Cost

Current Year Depn

Accumulated Depn

Book Value 2005

Leasehold alterations

72,201

–

72,201

–

Fixtures and fittings

85,477

94

85,293

184

Office equipment

320,290

32,806

212,443

107,847

Other fixed assets

10,509

–

10,509

–

$488,477

$32,900

$380,446

$108,031

3. Operating (Deficit)/Surplus Operating (deficit)/surplus was arrived at after charging the following expenses:

2006

2005

$

$

Interest

88

–

Depreciation

73,309

32,900 120,095

Rental and operating lease expenses

132,000

Trustees fees

81,157

76,083

Audit fee

21,548

10,880

Fees paid to auditors for other service

–

–

Operating revenue for the year includes:

2006

2005

$

$

4. Operating Revenue

Interest

26,217

27,461

New Plymouth District Council Grant

1,905,000

1,820,996

New Zealand Trade & Enterprise Grant

570,935

862,374

5. Taxation The Trust has been granted charitable status under KC5 and CB(1) of the Income Tax Act 1994. The Trust will be exempt from income tax on income providing that such income is applied for the charitable purposes as set out in the Trust Deed.

38 Venture Taranaki Annual Review

Venture Taranaki Annual Review 39

6. Operating Lease Commitments Lease commitments under noncancellable operating leases for motor vehicles excluding GST are:

2006

2005

$

$

Not later than one year

7,464

13,011

Later than one year and not later than two years

7,464

7,464

Later than two years and not later than five years

4,153

3,732

19,081

24,207

7. Related Party Transactions During the normal course of business the Trust purchased goods and services from the following related parties:

Engineering Taranaki Incorporated

Roy Weaver, Chairman

Westgate Transport Limited

Roy Weaver, Chief Executive and John Young, Chairman

CApENZ

Roy Weaver, Chairman

New Plymouth District Council

The Trust is a Council Controlled Organisation

Taranaki Chamber of Commerce

Rhys Greensill, Director

Tenderlink.Com Limited

Rhys Greensill, Director

Kiwi Finance Limited

Rhys Greensill, Director

The Boardroom Practice Limited

Janine Smith, Director

Western Institute of Technology at Taranaki

John Young, Councillor

All transactions were carried out on normal commercial terms.

8. 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. 9. Contingent Liabilities T he Trust has an unresolved personal grievance claim against it as at 30th June 2006. Whilst the Trust is confident of a successful outcome at arbitration, in the event the claim was proven, the sum involved would not be material.

There are no other contingent liabilities at balance date (2005 : $Nil).

10. Employee Entitlements

2006

2005

$

$

Balance at beginning of year

56,619

56,827

Additional provision made

11,973

25,817

Amount utilised

(25,817)

(26,025)

Balance at end of year

42,775

56,619

Current

42,775

56,619

Noncurrent

–

–

42,775

56,619

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.

11. Reconciliation of Net Surplus with Net Cash Flow from Operating Activities

2006

2005

$

$

Net (deficit) surplus after tax

13,624

26,000

Add depreciation

73,309

32,900

(Profit) loss on disposal

(150)

(200)

86,783

58,700

Decrease (increase) in accounts receivable

185,461

(115,072)

Increase (decrease) in payables

(155,254)

(3,134)

116,990

(59,506)

Add (less) noncash items:

Movements in working capital:

40 Venture Taranaki Annual Review

Board of Trustees John Young (Chairman) Former Chairman: Chairman:

Director:

Trustee: Councillor:

Kiwi Co-operative Dairies Ltd Auroam Ltd Lactanz WA Port Taranaki Ltd PKW Farms Ltd Fulford Radiology Taranaki District Health Board WestpacTrust Research Station Western Institute of Technology at Taranaki

Rhys Greensill Executive Director: Director:

Ex CEO and Regional Head

TenderLink.com Ltd Kiwi Finance Mortgage Link (Taranaki) Ltd Agenz Ltd Taranaki Chamber of Commerce Autism Taranaki Society Jaakko Poyry Consulting (Asia-Pacific)

Sir Paul Reeves Chancellor: Director: Chairman: Convenor: Trustee: Negotiator: Member:

Auckland University of Technology Village at the Park Tuhono Maori Trust Hui Taumata Taskforce Wellington Tenths Trust Port Nicholson Block Claim Waitangi Tribunal

Neil Mackay Managing Director:

Director:

Ex-Chief Executive: Ex-Managing Director:

Greenchip Thrifty Car Rental Ltd Say Systems Ltd Musacus Global Industry New Zealand Budget Rent-A-Car New Zealand

Janine Smith Director: Bank of New Zealand Chairperson: Custom Fleet NZ Ltd Deputy Chair: Airways Corporation Ltd Director: Airways International Ltd

Airways Equipment Ltd

Transmission Holdings Ltd

The Boardroom Practice Ltd

The Coaching Academy

The Academic Coaching School Ltd

Consultants Oceania Ltd Advisory Board: University of Auckland Graduate Business School NZ Business Education Roundtable Ex-Chief Executive: Arnotts Biscuits NZ Ltd

Roy Weaver Chief Executive: Chairman:

Trustee: Director:

Port Taranaki Ltd Engineering Taranaki Consortium CApENZ Advisory Board West Coast Coal Company Ltd NZ Harbours Superannuation Trust Greyport Terminal Ltd

Paul Winter Chief Executive: Ex-Chief Executive:

Employers & Manufacturers Assoc. – Central New Zealand Tourism Board

Venture Taranaki Trust & Group Trust Directory For the year ended 30 June 2006 Nature of Business Facilitating economic development in Taranaki Business Office 41 Molesworth Street New Plymouth Trustees John Young (Chairman) Paul Winter Roy Weaver Janine Smith Sir Paul Reeves Neil MacKay Rhys Greensill Auditors Audit New Zealand Palmerston North 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

41-43 Molesworth St, PO Box 670, New Plymouth, New Zealand Ph: (06) 759 5150 Fax: (06) 759 5154 Freephone: 0800 4 venture (0800 483 688) Email: exec@venture.org.nz Websites: www.taranaki.info

www.taranakinz.org

www.filmventuretaranaki.com