The Profit - Summer 2015

INSPIRING BUSINESS IN HAWKE'S BAY

FEBRUARY - MAY 2015

THE

THE NEW NAPIER

Economic growth plans, new businesses, new people, new opportunities

SALLY JACKSON – THE GLAM OF ART DECO Pro Primary ||

Aerospread | Junction Wines | Animal health goes hightech

ONE

NEW YEAR

RESOLUTION YOU WON’T REGRET: EMPLOY A T

R REMAINS PROPERTY MANAGE

With no locked-in contracts and no break fees, let us take the stress out of your investment property so you can spend time doing what you love.

START THE NEW YEAR OFF ON THE RIGHT FOOT BY LETTING US HELP YOU GROW YOUR INVESTMENT Thanks to all our clients and customers who have already benefitted from the Tremains brand and the professional people who work within our company, delivering outstanding results.

We have employed the top people in the property management industry to lead our new business to be the best in the Bay. The recent appointment of Andrew Williams to drive Tremains Rentals to the next level is a further example of our commitment to have the best and to be the best.

Hastings Property Managers Ruth Shannon

Ashleigh Liley

p. 833 8921 m. 022 415 6525 ruth@tremainsrentals.co.nz

p. 833 8904 m. 021 951 041 ashleigh@tremainsrentals.co.nz

We welcome any opportunity to assess your rental property or portfolio. We will provide you with instant professional advice and with written documentation in all areas.

We are back on deck after the holiday season, motivated, driven and determined to provide you with the best service in the industry.

Simon Tremain Director / Principal Tremains Rentals

Napier Property Managers Debbie Dudding

Jenny Harris

p. 835 5006 m. 027 306 6073 p. 833 8891 m. 021 951 582 debbie@tremainsrentals.co.nz jenny@tremainsrentals.co.nz

www.tremains.co.nz

Business Development Manager Andrew Williams p. 833 8890 m. 021 951 580 andrew@tremainsrentals.co.nz

CONTENTS INSPIRING BUSINESS IN HAWKE'S BAY

FEBRUARY - MAY 2015

THE

8-11

PRO FEATURES 8 9 10-11 13 14-15 18-19 20-22

Hurdle hits Horse of the Year Punt of faith paying off for Hastings Sports Club Is the Chamber still relevant for businesses Riding the home loan wave – Darrin McCormack Time to get serious with health and safety A new Napier rises It’s now or never – economic development in Napier

THE NEW NAPIER

18

SALLY JACKSON – THE GLAM OF ART DECO

6

Economic growth plans, new businesses, new people, new opportunities

26

11-13

Pro Primary ||

Aerospread | Junction Wines | Animal health goes hightech

Cover photo by Richard Brimer

PRO PRIMARY 26-27 28-29 30-31 32 33

Healthy animals, healthy business Spreading its wings Junctions wines – a family affair Pro Primary by Brent Paterson Primary Awards

PRO EXPERTS 34 35 36 37 38 39 40

Pro Finance by Tobias Taylor Pro IT by Wray Wilson Pro Education by EIT Pro HR by Kimberly McKay Pro Legal by Edward Bostock Pro Business by Cedric Knowles Pro Property by Paul Harvey

20-22

PRO REGULARS 4-5 6-7

Pro HB – What’s happening in the Bay Pro Q & A with Sally Jackson

26-27

FEBRUARY - MAY 2015

THE

1

EDITORIAL Don’t mess with event’s success

Editor Damon Harvey damon@theprofit.co.nz

Dressed by:

Usually we have three major events between February and end of March, which bring in over $40 million into the local economy. The Tremains Art Deco Weekend, The Mission Concert and Horse of the Year.

Prior to Christmas it was announced that the Mission Concert will not go ahead in 2015. The promoter said that the event will be postponed but I think this was a way of softening the blow to concert fans.

The Art Deco Weekend is full steam ahead and the event was awarded government funding to further develop its growing worldwide popularity.

Meanwhile, the Horse of the Year has hit a hurdle, following a financial loss to the 2014 event and the contract for event management has now been put out to tender.

This has caused a bit of a furore pitting the current event organisers (EventPro) against the HOY board.

The board was put in place in 2012 taking over from Showjumping Hawke’s Bay. The new shareholders Hastings District Council, Equestrian Sport New Zealand joining Showjumping Hawke’s Bay would oversee the operating of the event

by EventPro. Now I’m not saying that there is anything wrong with adding a top layer to the event but … has the new board created a wedge for itself with the ‘face of HOY’ in Kevin Hansen.

I keep hearing that Kevin’s an entrepreneur and for some difficult to deal with. Ultimately he’s got passion and he rides the event with his heart on his sleeve.

He’s no different to Robin Judkins who created the famous Speights Coast to Coast. Kevin can talk

fervently about the event and knows many of the personalities within the horse fraternity.

He’s the energy the show needs – as when the ‘flash harry’ event management firm clocks off because it’s profit margin of event managing starts to fall, Kevin and his son Andrew will still be going.

To me that’s the real difference – do we want someone purely focused on their fee or someone with passion for the event?

I also understand chairperson Cynthia Bowers views that the loose entrepreneurial approach is possibly not sustainable, therefore it’s important the board and EventPro find some common ground.

The last thing we want is for an event that’s the size and scale of HOY to trot off to Auckland and be lost forever.

Lastly on this issue – is it actually Kevin’s fault that the event made a loss? What was the cost of the new governance layer and to be honest take a look at the venue and what Kevin has to put up with.

The Hawke’s Bay Showgrounds isn’t purpose built for the event, nor is it for many others. The bill for additional power, security fencing, sewerage is something that increases the costs of running the show.

The faster the Showgrounds is regarded as a regional facility and therefore receives regional funding the better off it will be and then perhaps we may also have more than just three major summer events.

I mentioned the growing success of The Tremains Art Deco Weekend.

In this issue we meet one of the personalities of Art Deco.

Sally Jackson is also someone with passion for what she loves doing and we talk to her about the future of the event and why she’s involved.

We also look inside economic development in Napier. We meet Napier’s new economic development manager and find out what his plans are for lifting the economic prosperity of the city and beyond.

Lastly if you’ve got a great business story to tell call me on 021 2886 772 or email me at damon@theprofit.co.nz

+ Profit A new hotel and retail complex in Havelock North Event season – money money money!

The amalgamation debate – it’s decision year!

Napier Port profit Bridge Pa Wine Festival

Loss The long continuing saga of the Dam Colin Stone heading to Sport New Zealand (a great loss) Hastings Opera Complex closure Hawke’s Bay’s economic statistics

Clothes for men in all seasons of their lives

EDITOR/PUBLISHER: Damon Harvey 06 878 3196, 021 2886 772, damon@theprofit.co.nz, Twitter – @profithb

THE PROFIT is independently owned by Attn! Marketing PR and is published four times a year. Copyright ©2012: ATTN! Marketing PR

CONTRIBUTORS: Sarah Thornton, Vivienne Haldane, Wray Wilson, Nick Stewart, Cedric Knowles, Paul Harvey, Brent Paterson, Kimberly McKay, Edward Bostock, Catherine Wedd & Anna Lorck.

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FEBRUARY - MAY 2015

2015 is the year we all decide.

This year you will be asked to vote on the amalgamation of our five councils into one council representing the whole of Hawke’s Bay. It’s the most important decision you’ll make for the future of your region, your kids, and you.

The Hawke’s Bay we all love and care about is failing under the current system.

We sit at the bottom, or close to the bottom, of every major economic and social indicator. We are one of the worst performers in health, employment, crime, productivity and household income.

Great things will happen with one team working for the benefit of all.

▪ One council, one strong voice, one regional plan.

▪ Less talk and more action in getting things done.

▪ Stronger representation of community interests through Local Boards empowered to make decisions on issues affecting their areas.

▪ Savings of $260 million over 30 years invested back into our region.

It’s time to stop the senseless rivalry and start working together to achieve our real potential.

amalgamatehb.co.nz Authorised by Alastair Mackie, 50 Ossian Street, Napier.

Amalgamate.

PRO HB

Hawke’s Bay economy gets major blast

Havelock North Fruit Company will open a major packing facility for it’s innovative Rockit apple in Havelock North in March, employing 20 fulltime staff and up to 90 seasonal staff.

Havelock North Fruit Company (HNFC) managing director Phil Alison says already over $14 million has been invested in the production and marketing of Rockit, with a further $10m projected in the next three years.

Phil says the new facility in Cooper Street Havelock North will be at the leading edge of food innovation and a showcase for Rockit.

The facility includes a 2500 m2 packhouse, coolstore, computerized grading equipment and administration offices.

From left: Pernell Hartley, Phil Alison, Lawrence Yule and Erin Simpson.

Environmental considerations include low volume waste management, a state of the art filteration system and smart sensor LED

New Zealand’s two renal care Nurse Practitioners both trained and are based in Hawke’s Bay.

NZ Digital

HNFC reports revenue growth in excess of 700 percent year on year, which is “a win for Hawke’s Bay” as the company expands and creates new jobs.

Rockit is exported to the US, Canada, Italy, Hong Kong, Taiwan and the UK and sold domestically. HNFC also has marketing and grower licensee agreements in many world territories, with more planned in 2015.

Hastings Mayor Lawrence Yule welcomed the positive economic news saying that it’s great to see local business announce expansion plans and creating new employment opportunities.

“Rockit is proving that you can create an added value product from the land and generate world-wide demand.

“This is an excellent example of a innovation leader and it will be exciting to see the ongoing growth of this business.

ALPHA DOMUS APPOINTS NEW WINE MAKER

GROUND-BREAKING RENAL CARE FOR HAWKE’S BAY PATIENTS

Janine Palmer has followed the pathway opened up by her colleague Rachael Walker. Supported by the Hawke’s Bay District Health Board, both women completed advanced study courses at EIT to meet New Zealand Nursing Council standards for the country’s top clinical nursing role.

That’s significant in a region with a comparatively high incidence of diabetes, an often undiagnosed but increasingly common disease that can lead to kidney failure.

At least half those receiving dialysis through the DHB are diabetic. Patients in Hawke’s Bay needing treatment for diabetes are also much younger than the New Zealand average.

Janine says advancing to a Nurse Practitioner role puts her at the top of her game.

Based in Ballentyne House, a recently upgraded building on the Hawke’s Bay Hospital site, Janine

lighting. It has future capacity of up to one million cartons.

Janine Palmer with a patient

points out that there are varying degrees of renal failure.

“It’s very challenging and that’s what’s satisfying about it, helping them achieve a quality of life and to live in the best way they can.”

Rachael’s role focuses on those at the early stages of the chronic disease and preparing people for renal replacement therapy.

“There’s a huge pool of expertise and skills to aspire to. Nurse practitioners are New Zealand’s ground-breakers, leading lights in their field.

Rachael was first in the renal care field. I’m very lucky to have had these people to learn from.”

Websites, Digital Marketing & Strategy

Hawke’s Bay winery Alpha Domus has appointed a fulltime wine maker in talented Barry Riwai.

Alpha Domus managing director Paul Ham said the announcement of Barry is an important growth step for the Bridge Pa winery.

“Barry has built a strong reputation in his previous roles and also has experience in the Bridge Pa Triangle and that’s an added benefit,” Paul says.

Barry brings with him a strong wine making experience, especially with Chardonnay, having been with Clearview Winery in Te Awanga for the last 10 years. He replaces Kate Galloway, who started at Alpha Domus as a cellar hand in 2002 before moving into the winemaker’s position in 2005.

“Kate has been instrumental in the ongoing development of high quality single vineyard wines and the growing list of award winning wines.

Barry, originally from Hamilton, moved to Hawke’s Bay in 1997 to study viticulture at EIT and he’s looking forward to being back where he regards all the “wine growing action” is.

“I’m looking forward to getting back to this side of Hawke’s Bay, it’s where all the action is with all the major wine brands in the area.

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New advert coming

3R Reimagineers - www.3r.co.nz

“The guys from NZ Digital took a tricky brief and brought it to life for us, including some great design and security elements that we needed extra help with. Open communication throughout the process was a highlight.

Feedback on the website from our board, staff and stakeholders has been extremely positive.“ - Duncan Scotland, 3R Group Learn more about this project and others at www.nzdigital.co.nz

Wordpress Web Design | 21a Hastings St, Napier | p. 06 650 5754 | e. info@nzdigital.co.nz | www.nzdigital.co.nz 4

THE

FEBRUARY - MAY 2015

BUSINESS HUB GETS GO AHEAD

PRO HB

A much needed business hub will open in Ahuriri in March with eight key organisations set to move in.

Moving into the hub in the former Big Save premise in Ossian Street, Ahuriri are Business Hawke’s Bay, Export NZ / Business Central, New Zealand Trade & Enterprise (NZTE), the Callaghan Innovation and NZTE funded Regional Business Partners, Hawke’s Bay Chamber of Commerce, and The Icehouse.

Black Sticks train on Te Mata Peak

Festival of Hockey expands in 2015

The 2015 Hawke’s Bay Festival of Hockey on April 7-19 will see 80 games of hockey played over 13 days with 28 teams participating at venues in Hastings and Napier.

The event organiser, HBSEEC, says the elite level Hawke’s Bay Cup is expanded to eight teams (New Zealand, Australia, Argentina, China, USA, Korea and Japan, one to be added).

In a further development, Hong Kong will field both a men’s and women’s team in the Affiliates section of the 2015 Festival. This section of the festival celebrates some of the best hockey in New Zealand with Hawke’s Bay men’s and women’s representative teams playing host to some of the leading national teams including New Zealand Maori, New Zealand Indian, New Zealand Seniors and New Zealand Universities.

The festival once again incorporates an invitational under 17 secondary school girls tournament – the Furnware Cup – which has also been expanded to eight teams with the inclusion of teams from Wanganui Collegiate and St Peters, Cambridge in addition to last year’s participants who are all returning – Gisborne Girls High School, Havelock North High School, Iona College, Taradale High School and Woodford College.

Hastings Mayor, Lawrence Yule, says “This is a fantastic advancement for Hawke’s Bay’s only truly international multi-year sporting event. The joint participation of HBSEEC, Hockey New Zealand, Hawke’s Bay Hockey and the Regional Sports Park show what vision and determination can deliver. It’s a superb outcome.”

For more information visit www.hockeyfestival.nz

Business Hawke’s Bay (BHB), the region’s business-led economic development organisation, has taken the lead on this ambitious but “definitely needed” initiative.

BHB has worked with organisations such as central government agencies and regional support organisations to be colocated in a ‘go to’ place where business people who want to grow their business or address challenges can find solutions in one central point.

Artist’s impression

Napier City Council, Hawke’s Bay Regional Council and Hastings District Council will have dedicated workstations for their staff to use as required.

BHB CEO Susan White, says “the Business Hub brings a host of agencies together to give business easier and smarter use of the resources available to help them grow.”

Robert Darroch, Future Products Group chief executive and member of the BHB board, has championed the project. He believes the hub could be a first of its kind in New Zealand.

“We see it as a ‘shared office meets the Koru Club lounge’ – it’s not just being co-located, it’s about the interaction and networking that happens when people work openly together. Having the various agencies together in a purpose-designed space will encourage collaborative problem solving and innovation.”

Susan says the hub will help with interconnectivity outside of Hawke’s Bay. “It’s not just what’s here in Hawke’s Bay but how we connect businesses in the region to people and organisations outside the region. That’s extremely important to regional business growth.”

Enviromental management and economic development go hand in hand.

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• Online irrigation data • Land and soil science • Pollution control

06 835 9200 www.hbrc.govt.nz

FEBRUARY - MAY 2015

THE

5

PRO Q&A

Q&A with SALLY JACKSONac

ks

Sally Jackson is the face of Art Deco. She is on a mission to take the Tremains Art Deco Weekend to the next level.

What’s your career background I have had an interesting career so far and have found myself in some amazing situations all over the world working for some very different people and organisations.

I studied hotel and catering institutional management in Wales and immediately after college worked for the Automobile Association in the UK. In 1998 I arrived into New Zealand and I worked for Enza in Hastings for approximately two and a half years and then moved into the managers role within Mainstreets Hastings for five years. This has been one of my most favourite jobs (apart from my current position of course) so far and was where I developed my passion for marketing and promoting Hawke’s Bay. I then moved into the Hastings District Council as their marketing manager for two years and developed and implemented the marketing strategies for the tourism facilities owned by the Council.

I joined the Art Deco Trust as their general manager in 2010 and haven’t looked back!

What drives me professionally is working for an organisation that makes a difference in the community that my family and I live in. I love Hawke’s Bay and have lived here for around 16 years and I am extremely proud of the contribution I have been able to make through the employment roles I have had.

You’ve become one of the faces of Art Deco – was this by accident or did you have an interest in Art Deco?

My passion for the history and heritage of the region was really inspired during my tenure at Mainstreets when we commenced with the development of the Spanish Mission guided walks and the heritage inventory project. This passion has grown since I have been with the Art Deco Trust and I take real enjoyment in being a part of an organisation that highlights and protects the unique heritage of Napier and Hastings for the community.

You received significant government funding – what is it being used on and what are they anticipated outcomes?

The Art Deco Trust received an investment from the Ministry of Innovation and Employment’s Major Event Development Fund of $530,000 in 2013 in order to promote the Tremains Art Deco Weekend to international visitor markets.

The overall aim of the investment was to allow the trust to take The Tremains Art

Deco Weekend to the next level and develop international marketing initiatives that raise its international scale and profile and increase visitor numbers to the event.

This investment was spread over a two year period and within the first year the Tremains Art Deco Weekend event achieved significant

SHAPING THE FUTURE OF BUSINESS Hawke’s Bay Office 86 Station Street Napier T: 06 835 3364 E: napier@bdo.co.nz

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FEBRUARY - MAY 2015

son

PRO

Q&A

growth rates with visitors numbers and profile in the USA and the UK markets and we except this increase to continue into 2015 and 16.

What do you see as the regional benefits of Art Deco?

Firstly we have a heritage asset that has been preserved, protected and restored. The architecture is one of the few elements we have that makes our region unique, it is a key selling point and makes Hawke’s Bay stand out in a crowd of many other visitor destinations. We have a heritage story that attracts thousands of people into the region each year and the value of this is significant in terms of civic pride, a sense of belonging for the people who live here and of course economic benefits for the entire community.

The Tremains Art Deco Weekend for example is a five day event that generates millions of dollars for the economy. This is a clear benefit for the entire region. The most recent independent economic impact report undertaken on the event revealed a total contribution to Hawke’s Bay GDP of $7.7 million and a combined event operation and visitor spending impact of $9.88 million.

These figures do not take into account the economic impact of any of the other activities run by the trust including the year round guided walks and tours and the activities generated at the Art Deco Centre located at 7 Tennyson Street.

What parts of your role do you enjoy the most?

I have the pleasure of working with a large volunteer family (over 150 people) who dedicate hundreds of hours to the trust and to Napier each year. They do so much including guiding locals and visitors alike around the city, working in the Art Deco Centre, and of course helping with the Deco events. The commitment they have to protecting and promoting Napier’s Art Deco heritage is fantastic and to be honest, is a big motivator for me. It is fantastic working in a role with so many positive people surrounding you. The region is extremely lucky to have this loyal volunteer resource, and they should never be taken for granted.

What’s the favourite thing you do as part of Art Deco Weekend?

One of the best parts of the event is seeing the delight on the face of the visitors to Napier.

They arrive into the city and travel back in time into the era of the roaring 20s and 30s.

The event and the atmosphere consistently captures new people and more often than not,

will bring them back time and time again! It is like they get addicted to the event and once they have attended, they can’t wait to get their next fix at the following years festival.

Art Deco is a significant business – is that how you see it?

It certainly is for us and you can clearly see right across the region how it is significant for other businesses, especially within the tourism industry as well as for many Napier inner city businesses.

The Art Deco Trust is a not for profit, charitable organisation with a strong core focus on preserving, protecting and promoting the Art Deco buildings (and related architectural styles) of Hawke’s Bay. We rely heavily on the support from volunteers, sponsors, donations, and the membership base to achieve our goals. Unfortunately with funding reducing from the traditional sources such as gaming trusts and foundations, the Art Deco Trust has had to look at alternative ways in which to generate funds to continue with the preservation work it undertakes. This is done through the sales within the retail shop in the Art Deco Centre, through the tourism side of the trust with the walks and guided tours and through the Tremains Art Deco Weekend.

You’ve spent time overseas in 2014 – what have you taken away from those experiences?

The investment given by MBIE’s Major Events Development Fund has allowed for international marketing to take place for the Tremains Art Deco Weekend event which resulted in the trust attending a number of international conventions and trade shows highlighting our event and travel packages to New Zealand.

Hawke’s Bay Tourism partnered with the trust on many of these trips which was extremely beneficial due to their contacts on a worldwide stage and some major successes in these visits overseas include the increased profiling of Hawke’s Bay and the Tremains Art Deco Weekend event to travel consumers, agents, wholesalers and to media and press agencies.

Basically, we wanted to make sure that our region and the Tremains Art Deco Weekend was top of mind to all of these groups and I have now spoken with, and presented to, hundreds of people who either sell New Zealand as a travel destination or who are travelling to New Zealand in the next two years as a visitor.

It was our job to influence these people and organisations so that Hawke’s Bay as a visitor

destination is a destination on their travel itineraries.

This level of marketing, has the Tremains Art Deco Weekend as it main hook, but of course the entire region’s assets were promoted as a part of the tourism story.

During the time overseas, I have had the opportunity to see two major Art Deco Weekend type events, and the experiences I had at both will be hugely beneficial to the trust in terms of future development for the Art Deco Weekend and other areas of the trust.

You have a new partner in Dilmah – how do you see this evolving?

This has been a key relationship for us in 2014 and 15 and we hope that this continues into the future. The Dilmah Tea organisation has invested a large resource of time, marketing collateral and finances into the Tremains Art Deco Weekend. They have highlighted our event to many of their international markets as well as within New Zealand. They are a partner that recognises the value in leveraging off the event and we are totally in support of this.

I would like to think that this association will continue into the future, but first we need to prove ourselves to them and show the Fernando family that the Tremains Art Deco Weekend is a significant event to their business.

What do you shake your head about in your role?

I’m generally a very positive person and it’s not often that I am shaking my head at a situation, but what does rattle me from time to time, is the lack of understanding of how important the Art Deco buildings in Napier and Hastings are to our community. Some people don’t like them and I get that, I am not a fan of 1970s architecture... But what is clear, is that the buildings do make a difference for the community and actually for the entire country.

People can miss this important element and this does cause me to shake my head!

This special collection of restored and preserved buildings attracts thousands of visitors to Hawke’s Bay, large cruise ships to the Port of Napier and hundreds of reporters that feature the area in magazines, newspapers, television shows and online blogs with a marketing value far beyond what we or any other destinational group could afford to pay. We don’t need everyone to like Deco, but it would be great to have the full support and understanding of the community in terms of the good work we do, not for us an organisation, but for the entire community.

FEBRUARY - MAY 2015

THE

7

PRO

Feature

HURDLE HITS HOY

Kevin Hansen

by Damon Harvey

Over 2000 horses will be on show at the 2015 Farmlands Horse of the Year but the events organisers EventPro will also be looking to make every jump a winner.

HOY financial sustainability has been under scrutiny over the last 12 months, after a $108,000 loss was posted from the 2014 event.

One of the outcomes of this has been tightening up the operational budget and the tendering of the event management.

To many the tendering has come as a huge surprise as the event, which was first brought to Hawke’s Bay in 1992 by Show Jumping Hawke’s Bay at the initiation of Kevin Hansen, is publically seen as a huge success story for the region.

Kevin, is regarded as the father of HOY and has been instrumental in growing the event from a paltry 300 horses and riders to now over 2000 competitors, as well as an event regarded as the best in the southern hemisphere.

Kevin’s son Andrew, who is now part of the family business EventPro, says the early vision was to make it a horse show for everyone, not just elite riders.

“Kevin wanted it to be a celebration of all things equestrian. It really wouldn’t be as successful today if it wasn’t for Kevin’s drive. He didn’t get paid for the first five years.

HOY now has revenue of $2.36 million from rider entries, trade show site bookings, sponsorship and gate sales, but due to it’s size and scale, which requires the Hawke’s Bay A&P Showgrounds to undergo a major transformation, making a profit is tough.

Photo courtesy of Kampic

“In the early days we focused on making it bigger and bigger but we’ve now got to be more prudent and put a lot more focus on the financials.

Andrew says the upcoming show is looking very positive with stronger than expected rider entries, trade site bookings and ticket sales.

Although major costs savings have been made, thanks to the support of loyal suppliers, attendees will not notice any significant cost cutting measures.

“We’ve moved the VIP hospitality into the stand, instead of marquees, and that’s enabled us to expand the trade space and it’s also been more a case of negotiating better deals with our suppliers, who have been nothing but supportive.

“Ongoing it’s got to be financially sustainable but not at the risk of impacting the experience.

The last event was rated as good to excellent by 85 percent of attendees, so we need to ensure this continues,” Andrew says.

Hawke’s Bay has the rights to host the event for three five years terms. For many local businesses, the March revenue windfall, provides a perfect end to the busy summer period.

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FEBRUARY - MAY 2015

The event is reported to boost the local economy in excess of $12m with the major benefactors being accommodation providers, supermarkets, liquor outlets, retailers and petrol stations.

Andrew says EventPro will put its hand up to continue as the event managers. They have formed a partnership with Australia’s top equestrian event organisers Equine Productions.

Equine owns Australia’s most successful equine exhibition Equitana and they plan to create a similar event in Auckland.

“Equine provides added professionalism and processes that can be introduced to Horse of the Year.”

Horse of the Year chairman Cynthia Bowers said the tender will provide a better idea of determining the event management fee, which is currently in excess of $200,000.

“As with any other business you have to test the market from time to time,” Cynthia says.

Tenders close at the end of April, with a new contract in place by June 1.

PRO

Feature PRO Feature

Punt of faith pays off for Hastings sports club

by Alisha Neilson A ‘not afraid to give it a go’ attitude is giving a plucky Hawke’s Bay sports club the propulsion it needs to break away from the pack.

Four years ago, Hastings Rugby and Sports had a vision to up the game with its revenue gathering and create a more financially sustainable sports club for the region to enjoy.

This has resulted is a $1.5 million first-class clubrooms facility that offers state-of-the-art facilities for rugby and netball teams, while also doubling as a function centre for business seminars, conferences, trade fairs, indoor and outdoor expos, weddings and family parties – you name it, they’ll host it.

Add to this, a floor of tenanted office spaces located upstairs for sports funding organisation Sports Link (who provide administration assistance to sports clubs and not for profit organisations), and you get the impression this is a sports club that’s moving the goal posts.

While other clubs struggle for top quality facilities and additional revenue, Ellwood Function Centre is standing out from the crowd and fast earning itself a name as a ‘can do’ operator.

Twelve months ago, the facility won the hosting rights to a large corporate conference featuring a ‘Masterchef Challenge’ hosted by Raymond VanRijk of BBQ Gourmet.

Functions and marketing coordinator Barb Jenkinson says it was an innovative idea that ‘captured the corporates’ attention’ and met the brief of providing a team building activity with a difference.

Barb has been stoking the engine-room fires since taking up the role with the club two years ago, with her trademark ‘boots ‘n’ all’ business approach.

“The club committee recognised very early on that with the way sports clubs are headed, rugby couldn’t and wouldn’t be the financial mainstay for us. The club had to come up with

something that would provide enough revenue to drive us forward,” Barb says.

Gone are the days when rugby clubs were the backbone of communities. A growing casualisation of sport, increasing operating costs and a lack of strong volunteer input has left many grassroots sports clubs battling to stay upright.

Barb knows a thing or two about rugby clubs, she was on committee of Hastings High School Old Boys for nearly 20 years as well as being the bar manager. But pigeonhole her as a publican at your own peril – Barb’s astute business nous in hotel management, sales and marketing has equipped her capably for the job.

“I came in with a business plan to create a stable revenue stream for the club within five years.

The way I see it, the pool of money from gambling is going to reduce, therefore clubs like us have to be self-generating with our revenue and not reliant on grants.

“My mandate is to grow that share so that everyone in the region gets to use this incredible facility.”

By her own admission, Barb says Ellwood Function Centre has been marketed ‘gently’ since it sprang onto the scene in 2010, but forging strong relationships with local

businesses, national associations and becoming a member of Hawke’s Bay Tourism has helped lift the function centre’s performance.

Since the closure of the Hawke’s Bay Opera House in 2014, we offer the largest function room floor space for hire in Hastings. Many people who come here from other clubs, remark that our clubrooms are the “flashest” in New Zealand, and we’re proud of that. www.ellwoodfunctioncentre.co.nz

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FEBRUARY - MAY 2015

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Is the Chamber still relevant for businesses?

By Sarah Thornton

The Hawke’s Bay Chamber of Commerce operates in many business spaces but primarily has an advisory and advocacy role, representing business interests and providing an environment for discussion on important issues facing commerce in our region.

The organisation is also internationally accredited for export certification and has a strong relationship with the export community, running events and seminars. It also has a strong mandate around “capability” and has delivered $180,000 into business capability on behalf of NZ Trade and Enterprise.

But the past year could be described as disjointed for the Chamber. CEO Wayne Walford stepped down temporarily to pursue a political career, leaving a management gap and raising questions and eyebrows about the integrity of the “a-political” organisation against the background of a declining membership.

For Chamber president Brent Linn however, it’s “business as usual” with Wayne returning to his desk and the organisation remaining steadfast in its mission to “seek to build a platform for business success.”

One of the most successful functions of the Chamber is its networking programme. “More than 1800 people have attended our networking functions in the past 12 months. There are business leader breakfasts, BA5s (Business

After 5 functions) and other opportunities for people to connect,” says Brent.

However, despite popular networking events, membership numbers that sit currently in the “mid-400s” have dropped 10 percent in the last 12 months.

“Some businesses have stalled economic expenditure and have decided not to renew their membership. It’s a challenge for any membership based organisation,” Brent explains.

The Chamber membership features a “crosssection” of businesses and joining fees account for one-fifth of its revenue. Other revenue streams include export certification and the provision of services to agencies in business partnership schemes.

Retaining and attracting new members is vital for the Chamber’s survival. For small businesses, the value of Chamber membership and the organisation’s relevance to their operations are under scrutiny, considering the focus on export certification, capability seminars and advocacy on a local and central government level.

And there are plenty of small businesses here.

The latest figures from Statistics New Zealand’s 2012 business survey provide an interesting context.

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Brent Linn

A whopping 86 percent of the 18,000 businesses in Hawke’s Bay are what you’d call small; 62 percent are sole traders or contractors with no staff and 24 percent with five or fewer staff. The remaining 14 percent of businesses have between six and 100 staff, with only 700 businesses out of the 18,000 employing 20 or more people.* The Chamber’s focus on larger, export-led businesses seems at odds with the commercial makeup of our region. That’s not to say that businesses with none or a couple of staff don’t operate in the export or capability space, but interesting that the overwhelming majority of businesses are owner operated entities. So what does the Chamber offer them?

“Other than the networking aspect, I’m not really sure what other value the Chamber can offer me,” says graphic designer Terri Kayed who runs her own business, tk:design. “All the other events seem geared towards larger

PRO

Economy

businesses with staff or those that export. There’s not much really for single or small operators.

“Perhaps I’m just not aware of what the Chamber Terri Kayed could offer me and I could actively do more at my end to find out. But I do know what assistance I have received has mostly been from the Napier City Council’s Business Development Unit, helping me with setting up, tax information, marketing, business and accounting advice and training. In terms of networking, BNI gives me more value,” she says.

“Other than the networking aspect, I’m not really sure what other value the Chamber can offer me.”

– Terri Kayed I decided to find out what the Chamber offers our small businesses so posed the question to Kris McAinsh, one of five Chamber staff.

“You have access to around 30 events each year; the majority of these events are to create networking opportunities and discussing business with like-minded individuals.” No mention of advisory, mentoring programmes, NZ Trade and Enterprise, export or capability.

On the other side of the ledger sits Duncan Wallace, managing director of Hawke’s Bay Technologies. It’s a dynamic company, fast growing with 12 staff and has been a Chamber of Commerce member for seven years. Duncan regularly attends the Chamber’s networking events, the Business Awards and the company recently hosted a BA5 at its premises.

“The Chamber is one of the only proactive business groups I’ve come across here.

It provides a go-to point for Hawke’s Bay businesses for information, direction and support and it’s up to businesses to utilise the resource. As a local business, we need all the help we can get from regional support organisations like the Chamber.”

The annual Business Awards are a visible and important event in the Chamber’s calendar and also generate much-needed revenue. “We need places to celebrate business success,” says Brent.

Vicky Harris agrees. She owns Pukeko Rental Managers, is a sole operator and has been a Chamber member for two years. In 2013, on her second attempt, Vicky won the Emerging Business award at the Business Awards, which she says has been “massive” for her business.

“The publicity created around the awards and the ongoing recognition in the past year has given us an excellent profile in the community.

Being able to say you’re a winner has had a very positive impact on the way my business is received in general,” she says.

In most centres in New Zealand, the Chamber of Commerce office is located centrally, making it easy for businesses to use facilities that are offered such as meeting rooms and hot desks.

For the Hawke’s Bay Chamber, its remote location at the back of EIT means it’s not visible nor easily accessible to those businesses it supports.

But Brent says the Chamber is developing a “business hub” there, one that will operate alongside Food Hawke’s Bay, Wine Hawke’s Bay and Business Hawke’s Bay. “We’re still in the learning phase and establishing how we work together. The Chamber has been

acknowledged by Business Hawke’s Bay as one of the key pillars of its business.”

The relationship and the differences between Business Hawke’s Bay and the Chamber of Commerce are not well understood, according to Brent.

“Business Hawke’s Bay grew out of the Chamber as an autonomous economic development agency building infrastructure for businesses to operate within and on. It’s the environment.

Whereas the Chamber builds platforms for business success – it supports the players.

“Take the example of the Port. The role of an economic development agency will be around the port infrastructure, whereas the Chamber talks about the local government transport plan that may impact on our members. We are working with businesses who are working within the environment.”

The Hawke’s Bay Chamber of Commerce enjoys a positive relationship with the other Chambers around the country and the CEO attends both national and international conferences.

Recently a ‘virtual embassy’ was set up in China.

“The Chamber’s brand is strong and held in high regard. It’s a very important organisation to be part of, especially if you’re exporting or doing business in Asia,” says Brent.

The question is, is that what most Hawke’s Bay businesses are doing?

What do you think? Is the Chamber adding value for local businesses? Email damon@ theprofit.co.nz * Statistics NZ February 2012 business survey figures.

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FEBRUARY - MAY 2015

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Unison Committed to Improving Hawke’s Bay’s Aesthetic Appeal On driving along the busy Kennedy Road in Napier, between Riverbend Road and the Onekawa Plantation Reserve, you couldn’t help but notice a significant improvement – no more power lines.

Before

In December last year, Unison completed phase one of a project to underground the electrical services along Kennedy Road.

Unison Group Chief Executive Ken Sutherland said the seven month project had been a major project for the crews involved, but the end result was very pleasing.

“Visually, the change has been transformational – it has made a huge difference to the look and feel of the area.”

Unison plans to underground all of Kennedy Road but has spread the work over four years given the costs involved with carrying out such a large scale project.

“It will be a $3.2M project overall, so a significant investment,” he said.

Each year in lieu of part of its consumer dividend, the Hawke’s Bay Power Consumers Trust (HBPCT) initiates a series of overhead to underground conversions (OHUG) in urban areas of Hawke’s Bay.

After

Unison contributes to these projects to the extent of an equivalent ‘like-for-like’ renewal of the overhead assets.

Under the direction of the Trust, Unison’s OHUG plan is structured to take advantage of synergies with its asset renewal programme.

“In addition to aligning with our asset renewal programme we target urban areas where there are high traffic volumes, and also try to link in with council road work and rehabilitation of footpaths where we can.”

In previous years the OHUG programme has consisted of a number of smaller projects in urban pockets of Napier and Hastings.

More recently the focus has shifted to main thoroughfares. This strategy allows Unison to take advantage of economies of scale, and ensures the maximum benefit to Unison’s Hawke’s Bay customers.

“The Kennedy Road poles supported multiple services and circuits, so by relocating them underground the risk of a disruption to supply and communications resulting from a motor vehicle accident or similar incident has been mitigated.”

Another driving force behind the OHUG programme is a desire to reduce the visual impact of Unison assets within the community.

“That stretch of Kennedy Road is now significantly more aesthetically attractive.

“Upwards of 900 vehicles are estimated to travel along Kennedy Road each hour, at its peak. This, along with those who live along 12

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Kennedy Road, Napier Kennedy Road, represents a considerable portion of the community that will benefit from the visual enhancement to the area.”

Further undergrounding projects will commence this year in both Napier and Hastings, and the next phase of Kennedy Road is also planned for the coming years.

“In agreement with the HBPCT we are working to a five year plan,” said Ken. “Overhead assets certainly have their advantages in some cases so careful consideration goes into where these underground networks are best suited.”

Cable conversion projects, especially when on a road with high traffic volumes, require a lot of man power, machinery and excavation work, which Ken said must be managed carefully.

“Throughout the duration, our crews have managed to maintain minimal disruption, and this was very well received by the local community.

“Whether it was a Kennedy Road resident who was thrilled with the power poles being removed, local kindergarten children enthralled by a visit from the Project Manager who explained the changes taking place outside their centre, or an elderly woman expressing gratitude at being personally assisted by a Unison employee across the makeshift pathway – the feedback was positive throughout.

“It’s a testament to Unison’s company-wide commitment to delivering world-class service, and something that we’re very proud of.”

Riding the home loan wave The time is right for Darrin McCormack to pick up where he left off in 2011 as one of New Zealand’s most successful mortgage brokers.

In 1999 Darrin established the Mike Pero Hawke’s Bay Franchise and over the next 12 years wrote over $300 million in loans and won numerous company awards. After a three-year break he’s now back doing what he enjoys most.

“Helping people into their first home or moving up the property ladder, is what I love doing and this time I can do it with my own brand,” Darrin says.

During his three-year hiatus from being a mortgage broker, fate drew him to spending two weeks on the remote Rabi Island, off Fiji’s Vanua Leva mainland, building a house for a charity, “long story…” , exploring investment into other franchise businesses, working for a building supplies company and helping build local franchise business Driving Miss Daisy expansion throughout New Zealand.

“I’ve been on both sides of franchise as an ‘ee and or’ [franchisee and franchisor] and perhaps when I eventually retire I’ll write a book about the pros and cons of both,” he says.

But for now he’s back all guns blazing, setting up DM Consult, his own mortgage broker and insurance advisory business. It’s only three short years since Darrin was last in the game, but there have been many significant changes especially regulatory.

“I was biding my time, because I had done the same thing for all my banking and broking career. What’s the old saying – stick to your knitting. So it was time to do it for myself and apply some of the principles that I have learnt along the way.

‘There are more hoops to jump through from a regulatory sense as well as a lot more documentation. However my approach won’t change, it’s always been about doing the right thing for the client.

Darrin has also been busy rekindling and making new relationships with many of his referral sources, banks and the market place.

Prior to being one of the faces of Mike Pero in Hawke’s Bay, Darrin had a long established career in banking, firstly with the Post Office Savings Bank and ANZ. His last post in Hawke’s Bay was as branch manager of ANZ Marewa.

He and his family then spent a couple of years in Tauranga in the last 90s where he was a mobile manager for ANZ. It was the role that attracted him to buying the mortgage broker industry.

Darrin sees the current property market, not too dissimilar to when he first started as a broker in 1999 and hopes that another property lift in Hawke’s Bay is not too far away.

“The awareness of the role of a mortgage broker isn’t what it was, but the role is just as important and beneficial to the consumer seeking finance.”

– Darrin McCormack “I started as a broker about six years before the property boom started in 2004 therefore I was in a good position by then to do well, so hopefully I can emulate this as the local economy continues to improve.

During the boom, mortgage brokering was all the rage, as the banks struggled to manage the volume of loans those economic times generated.

property content for social media channels. “’I’m excited about 2015 and establishing the business, getting first home buyers into their first property and assisting those re-investing in the property market.

He’s also widened his service offering with a portfolio of insurance products such as life, income protection, total personal disablement and trauma cover. He’s partnering with a range of reputable insurance companies.

“It’s part of the full package. Buying a house is a big decision and with it comes responsibilities, so it’s important to have the necessary insurance cover to protect you and your family.

Visit www.dmconsult.co.nz or follow Darrin on Facebook.

Darrin says that’s still the case in booming markets such as Auckland and Christchurch, where mortgage brokers are used widely however the profile and the reason why you use a mortgage broker has waned with the static growth in the provinces.

“The awareness of the role of a mortgage broker isn’t what it was, but the role is just as important and beneficial to the consumer seeking finance.

The current Reserve Bank policy with above 80 percent lending has also had an impact in the provinces both for first home buyers and those who want to move up the property ladder.

“For example if a couple purchased their first home for $300,000 and it’s lost 10% of value as a result of the economic slowdown, and they want to move on to buy their second home they don’t realise they may not have enough equity to achieve that next goal, particularly with the LVR restrictions that have been applied by the Reserve Bank.

Another observation is the type of inducements offered by banks to move due to the lower levels of new lending. Inducements such as cash back, legal fees paid by banks and televisions are all “short term” carrots, which need to be carefully considered before switching allegiance.

“It’s no longer just about the interest rate, consumers are thrown incentives by the banks such as cash backs which are a short term benefit. That’s where I come in and get the client to look at the bigger picture to consider reducing the term of the home loan from 30 to 20 or 10 years based on their financial circumstances. This is where the real savings in interest cost can be made.

“There needs to be more substance than that, however many are refinancing with a new bank without really thinking what the long term advantages are if any, apart from gaining $2000-5000, was there any other benefit in refinancing?

Since launching DM Consult, Darrin has been busy catching up with old clients, building a website www.dmconsult.co.nz, and writing FEBRUARY - MAY 2015

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Gemco Construction Manager Chris Olsen talksPRO to Gordon and Jan Anderson Economy

TIME TO GET SERIOUS WITH

HEALTH & SAFETY When the new health and safety laws come into effect on 1 April, New Zealand businesses will have to be armed and ready. Having a policy manual gathering dust on a shelf will simply not be enough to comply with the new regulations.

The new Health and Safety at Work Act replaces the current Health and Safety in Employment Act 1992; its reforms coming out of recommendations from the Independent Taskforce on Workplace Health and Safety and the Royal Commission on the Pike River coal mine tragedy.

The reforms and new Act are part of ‘Working Safer’, a major package of changes to the

health and safety system aimed at reducing this country’s workplace injury and death toll by 25 percent by 2020. Also being reformed are the Hazardous Substances and New Organisms Act 1996 and the Accident Compensation Act 2001.

By Sarah Thornton playing at it and they need to wake up. The implications and fines will be huge.”

Although the Act is still a month or so away from implementation, most agree on one thing; for any good employer it should be business as usual, but for those paying lip service to health and safety, they’d better get serious.

The current Act primarily focuses on the employer and employee roles. It places duties on carefully defined participants: employers, principals, self-employed, people controlling a place of work and suppliers of plant. The new ‘PCBU’ or ‘Person Conducting a Business or Undertaking’ concept replaces all of these duty holders.

Gordon Anderson owns Hasmate, a Health and Safety and Quality Assurance advisory management company. “There are businesses out there already ‘doing health and safety’ and they’ll be fine. But there are some who are just

PCBU better reflects the complex nature of the modern workplace where there can be multiple working arrangements for workers in the same location or for the same organisation.

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Feature

or undertaking has an influence over the health and safety of workers, even where those workers may not be its direct employees.* Ashley Zachan is Gemco Group’s commercial manager.

With more than 100 full time staff, it’s the largest construction company in the region. Health and safety compliance, training and reviews make up 75 percent of his role.

Gemco has a safe work practice manual for every tool, every piece of equipment and operation. It’s a living document, always under review and being refined.

“By its very nature, construction is a dangerous business. Not only do you have a range of working situations, there is every kind of hazard and tools on site that are being used, as well as variables in the weather. The changes in the Act won’t fundamentally change the day to day operation of our business. We already have a robust health and safety policy and practice in place – it’s the accountability that will change,” says Ashley.

Gemco invests a “significant amount” in health and safety training and compliance. It’s an

investment that has paid off with the company’s injury and lost time records at their lowest.

“It’s [a health & safety programme] never too expensive when considering the safety of your employees.”

– Ashley Zachan

De-mystifying a PCBU Despite its name, a PCBU will usually be a business entity, such as a company, rather than an individual person.

A person might be a PCBU if they are a sole trader or a self-employed person.

Examples of a PCBU include:

“We already apply a ‘best practice’ approach to health and safety but if a company doesn’t share that approach and there’s an incident on site, Worksafe New Zealand will conduct a full and thorough investigation. They will use a fine tooth comb to find any holes or gaps where communication, training or procedures are missing.”

Another key change to the Act will be the attitude that all practicable steps are taken to reduce injuries and accidents at work, not just the minimum requirement as Ashley explains.

“For example, using a scissor lift and accessing something at height – it is not enough anymore to just be harnessed in place. The employee needs to wear a fall restraint system and have a rescue plan ready to implement in the event of a fall. This also needs to be reviewed to assess if alternative and safer options are available.

If an incident occurs, questions will be asked including ‘was there enough training and was that training reviewed regularly or was it simply just a bad decision?”

Investing in health and safety programmes is now expected of businesses. “It’s never too expensive when considering the safety of your employees”.

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FEBRUARY - MAY 2015

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Economy

Icehouse runs hot in Bay As business growth centre The Icehouse continues to expand in Hawke’s Bay, so does the wide range of businesses tapping into the organisation’s expertise, including a number of our rural industry leaders.

Co-founded by former Hawke’s Bay business leader David Irving in 2001, The Icehouse has reported some pretty impressive impact numbers of late.

Statistics show growth rates for established businesses that have invested in The Icehouse business growth programmes are more than two times higher than the average for businesses nationwide.

In May 2014, The Icehouse conducted research on their programme alumni growth rates. The average year on year increase in revenue for these businesses was at 11.7 percent compared to 4.5 percent for New Zealand businesses overall.

Impressively, before working with The Icehouse only 8 percent of these alumni report having export revenue and this increases to 36% post-programme.

Andy Hamilton, CEO of The Icehouse, says that investing in the capability of the owners and people who run the business has a “significant and positive impact.”

“New Zealand businesses need to invest in the people who are driving the business. And our research shows that this should be a priority.”

The Icehouse works with a wide range of established businesses, from one man bands to businesses with more than 300 staff.

Federated Farmers Hawke’s Bay president Will Foley joined The Icehouse Owner Operator Programme (OOP) in March, 2014. Following years of droughts and fluctuating product

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prices Will was fed up and decided he needed to refocus on what he wanted to achieve from Foley Farming Enterprises.

This started the process of establishing a new business plan, giving Will the ability to reassess the strengths and weaknesses of the business. He discovered that he was managing the business in the wrong way, especially when taking into consideration the effects of the climate.

Once the business plan was complete it was time for the execution but Will needed help and so he called upon The Icehouse to provide assistance.

The key objectives for Will when he started OOP was to better manage the business and the growth he wanted to achieve.

“New Zealand businesses need to invest in the people that are driving the business.”

– Andy Hamilton

“I have always been good at working alongside my team, getting stuck into the day to day chores but have struggled to step above them and lead with better management.” He also struggled to make decisions that would have larger impacts on the overall profitability of the business.

The Icehouse has provided Will with a chance to meet and work with other business owners from Hawke’s Bay and although he’d been hesitant at first, thinking that farming would be too different to manufacturing, trade and commercial businesses, the approach has been beneficial.

PRO

Economy

Coming up roses – Will Foley with Icehouse programme facilitator Michaela Vodanovich.

“Actually the problems and issues they face as business owners can be very similar and the fundamentals around growing your business are, in fact, no different.”

“Michaela Vodanovich, The Icehouse representative in Hawke’s Bay, is a great asset to the programme because of her competency and knowledge.”

For Will, OOP has helped him focus on what is really important to the business and himself as a person. He is now able to leave or delegate the small stuff and work on the business.

“It is important to stay focused on the larger goal as this determines the specific tasks for the day to day and outlines what actions really matter. All the changes that I identified and implemented have simplified the business, resulting in a decrease in costs and ultimately an increase in revenue.”

He notes his bank manager, BNZ’s Dave Bartram is also happy with the results being achieved.

“Dave is really keen for more of his clients to come on board with The Icehouse because he

is seeing first-hand the difference it’s making to our business.”

Will hopes to continue to identify areas where he can step away and free up more time to better monitor and direct the business. He is motivated to continue to see how things can be improved and done better. Participants of the programme are encouraged to have a lofty almost unachievable goal, and Will hopes to achieve his goal in the near future through continual improvement and through expansion.

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A new Napier rises The face of Napier is changing and like its last reincarnation to Art Deco, an earthquake has been the catalyst for this modern transformation.

From disaster comes a new beginning and as that was very much the case in 1931, the same can be said of the impact of the Christchurch earthquakes in 2011, which not only changed the landscape in the Garden City forever, but also towns and cities throughout New Zealand.

The seismic standards for existing and new buildings is still at 33 percent National Building Standard (NBS) but nearly all tenants and investors are demanding a minimum of 67 percent NBS in the fallout of the Christchurch earthquakes and many buildings throughout Hawke’s Bay failed to meet the threshold.

Buildings have either been ripped down and new modern complexes have risen, such as Napier’s Cosmopolitan House, or seismically strengthened such as Napier’s Post Office.

Colliers Hawke’s Bay managing director Cam Ward says the investment by developers, the new more open approach and vision by the Napier City Council, has transformed Napier into a desirable little cosmopolitan city to live and work.

“Napier is definitely keeping up with the times!

“It has a great mix of the old with its Art Deco offering but just as importantly it’s catering for the younger generations with modern places to work and play.”

Cam says it’s the full package that is attracting business relocations and new businesses alike to Napier.

He points to RCR, which provides engineering solutions to the resources, energy and infrastructure sectors as a business relocation to Napier (from Hastings) into a new modern building that’s set amongst a more livable environment.

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“RCR relocated to a modern building with the intention that this is going to help retain staff and attract the next generation of staff. They identified that young professionals want the full package – a nice environment to work in, but also a great place to live and play.

“Napier is now offering this more than ever before.”

ASB’s new commercial hub is also moving into the Cosmopolitan House, due to open in late 2015.

The Napier City Council has its grand plan for revitalising Marine Parade, which is already underway, while the Ahuriri precinct has become both a thriving business hub with the Ahuriri Business Park but also a bustling entertainment area with many cafes and restaurants.

Nic Magdalinos, the managing director of highly respected architectural firm PMA, agrees that younger people are being attracted to live and work in Napier.

He also says the strong performance of the Hawke’s Bay Airport and Napier Port, prove that the region isn’t isolated on the east coast.

“The unprecedented investment and development of the CBD, Ahuriri and the new residential development on the former Napier Hospital site, bode well for Napier’s continued enlightenment as it attracts a new younger more urbane city culture.

“Napier, accessible by the two proud and performing regional infrastructural assets; Hawke’s Bay Airport and Port of Napier, has helped the region feel less isolated.

“Connectivity with markets and significant development and investment throughout Napier is helping to create a truly unique city,” Nic says.

Another local business to relocate from Hastings to Napier is design and web agency

NZ Digital. It’s young managing director Adam Harris says Napier offered a better environment for his fledgling tech business.

“Napier’s proximity to the sea, great café’ culture and tourism gives the inner city a real vibrancy. Our office like many others is an historic art deco building that has undergone significant redevelopment and is now an inviting place to work,” he says.

Cam says there’s no coincidence that the overall revitalization of the city has occurred with the change of direction at the helm of the Napier council.

“Wayne Jack probably epitomises what we’re talking about. He’s Hawke’s Bay born and bred, who has moved away to further his career but has been attracted back by what Hawke’s Bay offers.

“He’s a proactive CEO and there’s a real attitude of making Napier one of New Zealand’s most livable cities. People want lifestyle, as much as a well-paid job, and it’s no longer a case of taking a pay cut to move to a provincial city, you can earn the same or more here.

“The council is also doing a great job of getting major events to Hawke’s Bay such as the Hurricanes and the All Blacks games. The more we can promote Napier as a destination the better.

A range of new buildings have popped up in Hastings Street such as the Cosmopolitan House building where Colliers, Tremains, RCR and The Property Group reside along with the soon to be relocated ASB Bank Commercial, the Post Office with Adoro Café, Vodafone and post shop, retail stores including Kathmandu on the corner of Hastings Street and Dickens Street.

Colliers has been involved in many of these property transactions.

Cam says Napier also has a bustling industrial area in Onekawa, the port is an absolute success story and the more we can support the

PRO

Economy

“We’re now seeing greater collaboration as we present a very strong business case including examples of other businesses that have successfully relocated Wayne Jack says there’s a definitely sense Napier is going from strength to strength. The council has appointed a new planning manager, who has a mandate to make Napier a premier urban destination.

“There’s a real buzz around town and there are a lot of exciting developments on the agenda – both from Council’s point of view and from private businesses.

“We are in the process of developing a city masterplan that will put in place a framework to lead the CBD and Ahuriri for future development, provide greater certainty and flexibility to investors, retailers and the community as users of these spaces.

port and its development of infrastructure, the better off we’ll be.

Retail offerings that need to be catered for include Bunnings and Kmart.

“It would be great if we could get them here too.

“We’ve had a lot of enquiry from national retailers and an example is Harvey Norman, which has seen the potential and set up recently.

“It’s really imperative to get Bunnings and Kmart into town, which will create jobs and new infrastructure projects.

To attract new businesses to Napier, Cam says the approach is as simple as listening to their needs, selecting a range of property options, and collaborating with economic development agencies and the council to put a compelling business case together.

He says the council has looked at cities such as Melbourne and Singapore for inspiration, seeing what they do well and how we can incorporate those things into future planning for Napier.

“We are creating small spaces in the inner city where people can gather and enjoy their surrounds – things like putting beanbags in Emerson St, free Wifi spots, and also encouraging smaller operators to set up things like ‘pop-up’ shops.

“We definitely are doing all we can to encourage younger people and businesses to consider Napier as a place to live and work.

“We have a stunning coastline, parks and niche areas like Ahuriri and I do believe we offer something for everyone. That’s part of what we are saying with our Napier Now brand campaign. It’s about taking another look at Napier. While we embrace and celebrate our Art Deco heritage and always will, there is far more to Napier.

It has a great mix of the old with its Art Deco offering but just as importantly it’s catering for the younger generations with modern places to work and play.”

– Cam Ward, Colliers Hawke’s Bay “I think some people have a perception that we are wanting to remain in a certain era and that couldn’t be further from the truth. We have so much going for us as a city and it’s our job to enhance what we’ve got.

“As a council we are focusing on providing great community facilities, events and tourism, and economic development. All these activities are interrelated as they help build social cohesion and vibrant sustainable communities,” Wayne says.

With Napier well situated to attract new businesses and new people and its population growth that Cam sees as a must.

The current population of Napier city is 57,800 and this is projected to rise to 59,000 by 2031, a rise of just 2 percent.

But Cam looks at this with the glass half full attitude and sees significant opportunities to boost these numbers.

“Napier is redefining itself for the new generation and between 2015 and 2025 it is setting itself up nicely for the younger generation or people that are from Napier, that have gone off to study and then work overseas but are now ready to move back to the bay to raise a family.

“And if the council through their economic development plans can foster this, then the spinoffs for local and new business as well as the community will be population growth.”

Colliers Hawke’s Bay 2014 Over $92.7 million of commercial and industrial real estate sold 92 leases completed Over $3.7m in revenue generated for commercial and industrial landlords in Hawke’s Bay

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Economy

By Damon Harvey In the last issue of The Profit we profiled the economic development endeavours of Hastings.

We met with the economic development team at the Hastings District Council and looked at what they are doing to grow the district and regions economy.

Hastings already has some runs on the board with its game plan to attract call centre support services into the CBD, with Kiwibank the first to open in the Hastings CBD.

SO WHAT IS NAPIER DOING? For many years the economic development was under the stewardship of Ron Massey 20

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and there was a fairly clear strategy focused on attracting individuals to Napier, as opposed to businesses. Via its ‘Napier Life’ campaign, there was significant emphasis on luring United Kingdom residents to Napier.

With a change at the helm, both at CEO in the appointment of Wayne Jack and new mayor Bill Dalton, the personnel changes bring a distinct change in attitude and strategy to economic development.

One of Wayne’s first moves was to appoint James Rowe as economic development manager. James is originally from New Jersey in the United States and holds a PhD in planning from the University of Auckland.

He moved to Australia in 1999 and then to New Zealand in 2002, where he spent eight years as senior planning economic development manager at Manukau City Council.

One of the projects he worked on while there was Manukau’s New Zealand Food Innovation Centre, which opened in 2011. The idea was sold to central government, which supported the establishment of other food innovation centres in Hamilton, Palmerston North and Christchurch.

Married with two children, James job prior to moving to Napier was as corporate and community services director for Katherine Town Council in Australia’s Northern Territory,

PRO

Economy

“Anyone can do a quantitative analysis of statistics but that doesn’t tell us why businesses don’t or do come here. That’s what we need to find out.”

– James Rowe Hawke’s Bay to carry out a targeted industry study, commissioning Dr. Martin Perry from Massey University to undertake the study.

As part of the study more than 100 businesses, including those that have relocated here or have moved away from the region to find out why they did so, as well as businesses still in the larger cities, to find out what would be needed to lure them to the region.

“Anyone can do a quantitative analysis of statistics but that doesn’t tell us why businesses do or don’t come here. That’s what we need to find out.

“It will give us some insights into where is our competitive advantage lies and identify what sectors and what businesses we should be targeting.

“It’s not easy [to attract new businesses], very few companies will close down elsewhere and move here but hopefully when they expand, they will consider a Hawke’s Bay location.”

For James, success will only come with greater collaboration with the likes of Business Hawke’s Bay and his counterparts in all the region’s councils.

“Economic development is one area where the local councils must work together in order to bring new job opportunities to the region.

James Rowe

“New jobs and wealth can be garnered by businesses relocating to the region or locally grown by expanding an existing firm or starting a new business. We need to develop both,” James says.

a town with a population of approximately 10,000 but servicing an area about the size of the North Island.

As a collective, but facilitated by Business Hawke’s Bay, the Regional Economic Development Strategy is also being updated.

He also worked for the Sutherland Shire Council, the southern most council in Sydney, Australia, and ran his own economic consultancy for eight years from Thailand.

“In my opinion, my economic development colleagues have a common vision and work well together. We need to devote our collective energies to developing an inward investment marketing programme as part of a business attraction strategy.

Although James has only been in the role at Napier City Council for six months, he’s quickly fostering relationships with others in the region focused on making Hawke’s Bay an economic force to be reckoned with.

James has no instant recipe for attracting new businesses to Hawke’s Bay. He admits that plenty of groundwork is needed before we see a step-change in the number of new businesses moving here.

It’s a tough ask and James knows that he can’t do it alone. He’s already convinced HDC, Hawke’s Bay Regional Council and Business

“Hawke’s Bay is a gem that hasn’t yet been discovered. We are not on the radar of national businesses and the challenge is to put us there, which we will do by advertising and promotion.

“Businesses go where they are welcome and we need to let them know that we are here.

There is no quick fix, it has to be a long-term sustained programme. Everything we do is geared towards creating jobs and prosperity in the area,” he says.

James sees Business Hawke’s Bay as the major player in economic development and says it is up to the role of the councils to provide financial and resources support.

“If we expect them to do all the things we want them to do, then we need to resource them better.”

He sees his own role as providing policy and strategic advice and being out and about convincing businesses to move to Hawke’s Bay. “I said right at the start that if I’m at my desk then I’m not doing my job. I need to be out and about both here and out of the region.”

There’s a little bit of economic development ‘envy’ from James in regards to what Hastings has already achieved and how it is resourced.

James is still the only fulltime staff member at Napier City Council working on economic development, whereas Hastings has four fulltime employees and a larger budget.

“Historically we [Napier] have been reactive.

We are very good at putting together a response to an inquiry but how do you generate the lead in the first place?

“We also need to get more business decision makers here to experience all that the region offers and events like Art Deco and sport events such as the All Black test match last year are great ways of doing this.

“Every time you get someone here and they have a good time, they remember that.”

James takes a skeptical view of both the economic statistics that place Hawke’s Bay below the New Zealand average in many of the indicators and the idea that most provincial cities and towns are ‘zombie towns’.

“No way are we a zombie town. It’s nonsense to believe that provincial towns are declining and Auckland is going to keep on growing and the rest of us will die. That’s not true smaller centres will never die, however, they will not grow as fast.

“It’s simply natural that the bigger places will attract more people, especially young people; however, many will come back to the region as this is where they really want to live.

“The stats indicate that we are stagnating, but that doesn’t truly reflect our economic position as there are a lot of good businesses doing some really exciting things remaining under the radar.

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According to James, the region’s economy needs to be more diversified and we must aim to get as many sectors here as possible.

“We don’t want to be reliant on just one. It’s all about diversification, spreading your base and creating more job opportunities in various sectors.

“We’ve also got some key selling points such as a port that is very efficient and cheaper than anywhere else to bring product in and out from. That’s a significant ABB Building, Napier competitive advantage.”

“Businesses such as ABB and FPG are the types James also points to the significant economic of businesses we should be trying to attract, impact the McKimm family has had on Napier. rather than relying on the primary industry, The McKimms started turning the derelict where fortunes regularly fluctuate.

British Tobacco complex and surrounding land

“It will give us some insights into what really is our competitive advantage and identify what sectors and what businesses we should be targeting.”

– James Rowe “The primary industries are the ones that are flattening out. Wine is doing well but the price of milk is dropping and apple production depends on opening up more international markets. We need to look at how we add innovation.”

in Ahuriri into a business park in 2007. The complex now boasts more than 80 businesses that collectively employ more than 1000 people.

The decision for the McKimms to relocate its furniture retail headquarters and distribution centre cannot be attributed to the efforts of Napier City Council but has been a major economic win for the city, according to James.

“Big Save was a big win. It has one of New Zealand’s largest call centre’s here and it has invested and upgraded its property and transformed a derelict area that now has more businesses and more jobs than were there when the tobacco factory was operating.

“This is a remarkable achievement and if we can get more entrepreneurs like the McKimms here, we’ll be set.”

One way to achieve this has been for James to become a member of Corenet Global, a global corporate real estate network, that connects multinational businesses with economic development practitioners and agencies.

“This is where corporate location decision makers meet. It is essential that we are networking with the right people in order get to learn who is out there considering relocating and, or developing new facilities both in New Zealand and other places in the world.

Napier economic profile Population

60,000

Working age population

approx.

48,000

Median Income (NZ Median = $28,500)

$26,000)

Age distribution 15-39

16,800

40-64

20,400

Qualifications – aged over 15 years Formal qualifications (75% of 15+ population Bachelor degree or higher (15%) Commercial Gross rent (fringe Napier CBD)

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$140 -$180m2

Napier Post Office

Cosmopolitan House

An online accountancy technical competency test developed in Hawke’s Bay is set to go global.

Paxies Lane

MTG

Westpoint Plaza

Farmers

Gemco, refurbishing the old and establishing the new in Napier City.

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RECORD RESULT POSTED HIGHLIGHTS INCREASED 13.5% TO $13.433 MILLION

NET PROFIT AFTER TAX

INCREASED 8% TO $67.016 MILLION

REVENUE

HANDLED OVER 8% OF NEW ZEALAND’S EXPORTS BY WEIGHT

TOTAL EXPORTS CONTAINERS TOTAL THROUGHPUT

INCREASED 6.8% TO 220,048 TEUs

INCREASED 3% TO 4.105 MILLION TONNES FULL TIME EQUIVALENT STAFF INCREASED BY 14%

NEW JOBS CREATED

$19 MILLION

CAPITAL INVESTED

Napier Port reported another record annual result with Net Profit after Tax up 13.5% to $13.433 million for the 30 September 2014 year. Revenue increased 8% to $67.016 million ($62.097 million).

“This was a very pleasing result, achieved from improvements in productivity, control of cost in spite of a 14% increase in FTEs, and strong growth in most trades. Net operating cash flows also increased to $23.4 million, reflecting the strong underlying earnings of the Port’s core business. The Port’s re-investment programme for the year was $19 million, which included the successful commissioning of two new Gottwald container cranes,,” says Napier Port’s Chairman, Jim Scotland.

CENTRAL NEW ZEALAND’S LEADING INTERNATIONAL SEA PORT FOURTH LARGEST CONTAINER TERMINAL (TOTAL TEUs)*

NATIONAL SIGNIFICANCE

Mr Scotland says another record year reconfirms Napier’s position as Central New Zealand’s leading international sea port, handling over 8% of New Zealand’s total exports by weight. This makes Napier Port a nationally significant infrastructure asset.

900000 800000 700000 600000 500000 400000

LARGE CONTAINER VOLUME GAIN

300000 200000 100000

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PORT CHALMERS

NAPIER

LYTTELTON

TAURANGA

TRACTA53476_P

AUCKLAND

0

“Container volumes gained 6.8% to reach 220,048 TEUs at year end.

Full container volumes have grown by 40% over the last five years.

Napier Port’s volume is 13% larger than the combined throughput of other three Central New Zealand ports, (Wellington, Nelson and Taranaki - measured in total TEUs). We expect our total container

volumes to experience another significant lift of approximately 20% this coming year,” he says.

FOURTH LARGEST CONTAINER TERMINAL

Napier Port is now the fourth largest container terminal in New Zealand, following Auckland, Tauranga and Lyttelton.

STEADY BULK THROUGHPUT

2.4 million tonnes of bulk cargo was handled, representing 3.2% growth for the year. This lift was broadly in line with New Zealand’s GDP rate, despite the slowdown in exports, particularly China’s reduced demand for forestry products.

All other New Zealand ports were similarly affected. Total throughput reached a record 4.105 million tonnes.

BIG SHIP HANDLING CAPACITY BIG SHIP CALLS > 4000 TEUs*

DEEPER DRAFT

“Napier Port’s big ship handling capacity was enhanced during 2014. Further dredging to accommodate the increasing number and size of very large vessels was completed, with a 12.4m draft now in operation,” says Napier Port’s Chief Executive, Garth Cowie.

Auckland 139 Lyttelton 135 Tauranga 95

NAPIER HANDLES THE BIGGEST CONTAINER VESSELS IN NEW ZEALAND

NAPIER 88 Otago 62 Wellington 39

“Napier continues to handle the biggest container vessels operating on New Zealand’s coast, (those with greater than 4000 TEUs capacity), sitting alongside the other major New Zealand container ports Auckland, Tauranga and Lyttelton,” says Mr Cowie.

He says 15 major container shipping lines each offer 10, year-round, weekly liner services ex-Napier, with more during peak season. This provides un-matched choice in Central New Zealand. .....AS WELL AS NEW ZEALAND’S LARGEST CRUISE VESSELS

“Another marine record was set earlier in the year with the maiden call of the cruise vessel Celebrity Solstice at 317m length overall and beam of 36.88m. This is the largest vessel of any kind to visit Napier Port as well as being the largest cruise vessel sailing in New Zealand waters.” *Source: Ministry of Transport, Freight Information Gathering System (FIGS). Report July 2013 - June 2014

INVESTING FOR THE FUTURE GROWTH CHALLENGES

“Coping with unprecedented demand presented some challenges in early 2014, notably within the Container Terminal.

Transport operators and shippers should however be reassured that a number of improvements have been made to build terminal capacity for the 2015 peak season and beyond,” says Mr Cowie.

DEVELOPMENT PROJECTS

“More than $40 million of capital has been spent on development projects over the 2013 and 2014 financial years.

The 50 Year Infrastructure Master Plan was reviewed following the annual strategic planning process. Revised growth projections highlight that a significant infrastructure development programme is required at an estimated value of $80 million and $140 million over the next five

and 10 years respectively,” he says.

Mr Cowie says planned developments will include a new large vessel berth, further container terminal intensification, extended rail capacity and more off-port, empty container depot expansion.

EXTENDED CARGO REACH

“As our cargo reach continues to extend we need to ensure we have capacity to match. Napier Port’s catchment now includes cargo moving from or to Wellington, New Plymouth and the southern Waikato area.

A highlight for the year was the establishment of Longburn Intermodal Freight Hub in Palmerston North, a collaborative joint venture involving Napier Port, Ports of Auckland and Manawatu logistics provider, Icepak,” Mr Cowie says.

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Feature Primary

Healthy animals, healthy business

by Vivienne Haldane

Modern medical technology benefits animals and allows many aspects of their care to be transformed.

But does it equally benefit business? The Profit spoke to veterinarian Dave Kruger and Vet Services Hawke’s Bay (VSHB) business manager Brendan James to find out more.

At Golden Oaks farm near Hastings, VSHB veterinarians Dave Kruger and Richard McKenzie are assessing a horse by means of a Uno Slate direct digital X-Ray unit.

Kruger explains, “Lily has failed a flexion test, which is a stress test on her fetlock joints. We are going to have a look and see if there is any bony pathology there.”

Injury to flexor tendons or bones and joints are common problems for equine athletes that sustain high levels of rigorous training in order to succeed.

It’s a big relief for horse owner, Tracy Mason to be able to instantly see the state of her horse’s cannon and splint bones on the computer screen. The 13-year-old show jumper and equestrian eventer has not been performing well lately and Tracy has noticed some lameness and swelling.

Kruger says the Uno Slate is basically like a digital camera: it has a receptor plate; the generator takes the shot which then comes up as a digital X-Ray image on the computer screen. This process certainly makes life easier.

It gives you really good detail; you can magnify or alter the contrast, whereas on film you were limited. For example, when you were taking a series of shots and the horse moved causing the image to blur. Whereas you can now delete images and just keep the good ones.”

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Kruger says at VSHB they use the Uno Slate in their different clinics, often several times a day.

“We do a lot of repository radiographs on thoroughbreds for the yearling sales and these require a series of about 44 shots. Can you imagine trying to do those with film? With modern technology it probably takes us an hour, whereas it would previously have been a day’s work. And not only does it speed things up, you can send images by email too.”

VSHB has had the digital X- ray unit for about three years and Kruger is looking forward to when the next level machine is acquired. “The new ones I looked at in the States recently are wireless and no cords, which will be fantastic. If the horse stands on a cord, it’s all over. Wireless will eliminate that problem. “ VSHB chose the German made Uno Slate for its superior image quality and whereas most units have a separate computer system, this is an all in one unit.

In the small animal department they have similar technology – Fuji CR- however, it is not as mobile as this.

Other equipment that Kruger is excited about is equine dentistry power tools. VSHB has recently purchased its fourth Powerfloat.

The Powerfloat allows more rapid and accurate floating of teeth. It also has a digital

endoscope for examining horses’ airways to detect possible pathology. For tendon scanning VSHB has two state-of-the-art Mylab ultrasound machines, enabling accurate assessment of tendon injuries, common in racing thoroughbreds and show jumpers.

Such technology is expensive but the vets say they couldn’t work without it. Thankfully in the last three years prices on gear like the digital X-Ray machine have decreased substantially.

Meanwhile, in the course of the X-ray process, Tracy is able to discuss with the vets the best course of action for Lily and if necessary, her X-Rays will be sent to a radiologist for further analysis.

A small fracture at the end of the splint bone was identified on the radiograph. Kruger says it will take two-three months to knit together.

Mason is clearly relieved at this news “It’s not as bad as I thought. It could have been a lot worse,” she says.

So if state of the art technology makes for peace of mind for clients and vets like it too, does it pay? Business manager, Brendan James explains how it adds value to the business.

“It makes us relevant to our clients and means we can offer the complete service to our equine clients.”

Brendan said their client base has grown on the

PRO

Primary Feature

Tracy Mason with vets Dave Kruger and Richard MacKenzie as they check Lily’s injury on the digital x-ray unit.

“We track the additional number of X-Rays taken using new technology versus old. The we analyse whether our return on investment actually stacks up to what we thought it would be.”

Brendan said the economic impact of new equipment could be readily tracked.

“We track the additional number of X-Rays taken using new technology versus old. Then we analyse whether our return on investment actually stacks up to what we thought it would be.”

The Uno Slate direct digital X-Ray unit, for example, created efficiencies in their operation that was previously not possible. Old technology was labour intensive in terms of how long it took, particularly for pre-purchase or repository work. “That’s no longer the case with the digital equipment, which is far more efficient from a people point of view.

Often veterinarians a the first point of contact for emerging products but after that it is evaluated on whether it adds value to both clients and VSHB’s business. “The business case for new technology always has to stack up,” says Brendan.

ATTN14PRO17

– Brendan James

back of radiography, scope and ultrasound because there is a demand for it and it was readily available regionally and nationally. “If we weren’t able to provide a service with that sort of equipment, then clients would shop outside Hawke’s Bay for it, which we don’t want.”

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CAREER TAKES FLIGHT A teacher once told Bruce Peterson not to waste his time pursuing his dream of becoming a pilot. But the managing director of Aerospread Ltd is not one to let such negativity put him off course and once he’s decided on a goal, he’ll chase it down relentlessly.

Bruce now runs his own successful top-dressing business out of Napier airport and it’s all down to his energetic, proactive approach and his team’s commitment to delivering the best possible service for farmers.

“When we go to work, I know we are doing something productive for others and that’s what keeps me going.

“I had a client phone this morning and he said, ‘you are the first guy to put that stuff in there, the weeds have died back, the stock are grazing in there and the production coming out of it is fabulous.”

“I have another mate who bought a farm in 1983 but it was eight years before he started putting fertiliser on. We started there at 80 tonnes and 4,000 ewes and a lambing percentage of the mid 80s. Now he does about 350 tonnes of fertiliser, is running 200 cows, 5,100 ewes and has docked just over 8,000 lambs. In the last 10 years his farm has quietly kept growing. He’s now finishing everything and has just bought another farm. We’ve grown together really, and all he has done is improve genetics, fertiliser, grazing and fencing. It’s fantastic. That keeps me motivated to really boost productivity for the farmer because I get a real buzz out of it.

The trade off is we get more work as well. The whole company ethos is everything has to be sustainable, plus be a win-win for everybody.”

Bruce says he enjoys giving back to the community. The company sponsors the

LIFESTYLE RETAIL CHATTELS MORTGAGE INDUSTRIAL INSURANCE RESIDENTIAL COMMERCIAL

By Vivienne Haldane

Magpies rugby team and supports equestrian events and dog trials.

One of their initiatives in 2014 saw Magpies players taking coaching clinics for junior rugby in rural schools at Flemington, Weber, Pongaroa and Porangahau.

Today we are standing in Aerospread’s hangar at Napier airport. Built two years ago by a local company, Bruce is really proud of it. He and one of his pilots, James Ross, do a weather check before the PT 6 powered Cresco taxies down the runway and rises into a clear blue sky.

“The top- dressing business is a seven-day-a-week job and the weather totally rules your life,” says Bruce who has now clocked up around 23,000 top-dressing hours.

Bruce Peterson

When he gained his private pilot’s licence in 1990 he already had several years farming experience behind him. At age 15 Bruce left school in Alexandra, Central Otago, to study at Telford Farm Cadet School. He’d already done farm-work while still at college, so knew what he was in for. “I worked on a Fordson Major mowing rushes in the middle of winter. But the harder it is, the better I like it. I am one of those guys.”

“We worked six to nine weeks on end. We lived out the back with no power and cooked on open fires. And with no TV or radio reception, all I did was read and study. I started doing my commercial flying exams at that time. It would be fair to say I went in there a boy and came out a man.”

When he left Telford, he began work mustering on sheep stations. “I covered a lot of the South Island high country – Otago, the Whakatipu Basin and Marlborough.

After leaving Molesworth, Bruce managed a fine wool block up the Wairau Valley near Blenheim, but after doing ‘14,000 little square bales’, he decided to pursue his ambition to qualify as a pilot and went to study theory at the aviation school in Motueka.

Following that he went to Molesworth Station, where he was head stockman for four years.

Once qualified, he then worked at anything he could, including grading paua and spraying

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PRO

Feature

“I bought my first Cresco aeroplane and a couple of loaders 2002. I gained a lot of experience operating with other companies. At first I contracted out to Farmer’s Air and they helped us get going. In turn I now love seeing people succeed – it’s fantastic.”

Aerospread bought out one other southern Hawke’s Bay operator, Graham Wibley.

“He had an aeroplane based in Dannevirke but as tonnages were down from about 2010, mostly because of economic factors, we added it to our business and upped our efficiencies so it was a win-win Aerospread and the customers.”

In 2013 Aerospread bought another Cresco and operation, based in a Waipukurau. Aerospread now employs nine people, including three pilots. broom, to save money for his next goal, to become a fully qualified agricultural pilot. He’d bought a small home-built plane to build up his flying hours and worked as a loader driver for Rowley’s and Field Air. When a position for a top dressing pilot came up at Field Air (now Farmer’s Air) in Gisborne in 1994, he applied and got the job. He was there for 17 years before relocating to Hawke’s Bay in 2011 when the opportunity came to buy into an existing top dressing business, Robalan Air, owned by the late Alan Nichol.

While still in Gisborne though, he’d begun to branch out as an owner/driver.

Bruce is a keen adopter of the latest technology for his business. “We’ve got a whole heap of things we’ ve developed specifically for the farmers. We’ve been working with a software company who have helped to develop a paperless system from the aeroplane. It cuts down on the pilot’s workloads. We can send and receive GPS maps to and from aeroplane to office or aeroplane to aeroplane.

“We have invested in digital scales for the loader and have built sender units whereby data is automatically sent to the aeroplane.

This allows the pilot to see exactly what weight has gone in. We’ve also written software, that includes an area and rate calculator

with live update, every load and also gives us live tracking of aircraft components times for maintenance.

“On takeoff all that data gets sent off the aeroplane via text messaging. It’s sorted live in the Cloud so we can see where that aeroplane is at all times. It’s a great safety tool and this takes a load off the pilot - he can concentrate on what he’s doing.

Accuracy is great – top-dressing is all about growing grass and sowing it evenly.”

A new website with farm mapping www. aerospread.co.nz has recently been launched, allowing farmers to enter details, such as inclusion and exclusion zones, for product placement or to mark aviation hazards on the farm from the office desk . These get formatted to the aeroplane where they are all onboard for the pilot. “We are trying to make it easy for farmer - he can mark it on-line himself and we have it in writing for him.

“We are Aircare accredited. Aircare marries Civil Aviation, Hawke’s Bay Regional Council, Work Safe and Environmental Protection Agency rules and regulation. Our customers can rest easy that Aerospread Ltd is protecting them and working for them. We retain all necessary documentation required by farmers to be compliant. In essence, we manage it for the farmers.”

Asked where he wants to be in five years time he says, “We have started a new project which will take another 16 months to complete that will make us greener, much more efficient and cost effective for our customers.”

GROW YOUR BUSINESS THROUGH

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People are the primary connection between Performance, Productivity and Profitability.

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LEARN MORE ABOUT RURAL DIRECTIONS’ CUSTOMISED SUITE OF BUSINESS SOLUTIONS

FEBRUARY - MAY 2015

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Primary

Junction Wines – a family affair

By Vivienne Haldane

HAWKE’S BAY CELLAR DOOR OF THE YEAR 2014

When Junction Wines won Hawke’s Bay Cellar Door of the Year 2014 at the Hawke’s Bay A&P Bayley’s Wine Awards last October, it was like scoring a try for former All Black John Ashworth.

“When I started putting posts in on the Takapau Plains many people thought I had fallen off the edge.”

– John Ashworth

John and Jo Ashworth with John and Lucas Gajewski

The Ashworth’s family vineyard on the Takapau Plains had been a finalist for the past few years so it made the victory even sweeter for the family who work as a tightly knit unit.

“Its nice to see our label standing up amongst all the other heavyweights. We are only small but we are happy with what we do,” says John.

They may be small but they produce a wide range of wine varieties: Pinot Noir, Pinot Gris, Sauvignon Blanc, Chardonnay, Shiraz, Riesling, Gewürztraminer, Gewürztraminer/ Semillon and Rose.

Junction Wines sport names such as ‘Side Line’, ‘Late Charge’ and ‘Red Card,’ in keeping with the rugby tradition.

I asked Jo Ashworth what she thought was the X factor when it came to their win. She reckons it is part homely ‘grass roots’ atmosphere, part excellent quality wines ‘that sell themselves.’

They have a courtyard with two sturdy slab timber tables where visitors can relax and enjoy as tastings are brought to them. “We never know who is going to walk in the door but whoever arrives gets a real Kiwi experience.”

John adds, “We’ve got a pressure gauge hanging on the wall and if I see that moving we’re not doing the job properly. It’s got to stay on normal.”

And having been here previously, I can vouch that it’s more than just a wine tasting; it’s an experience. The whole nine yards. There are no formalities and the warm and friendly atmosphere makes you want to stay, makes you want to buy!

While there, American travellers, John and his son Lucas Gajewski spontaneously drop in while driving south. They are given a warm welcome and asked to take a seat while Jo brings out wine tastings. As well, she gets out a pad and jots down places she thinks they might like to visit along the way.

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about rugby. He fetched a book from a room crammed with rugby memorabilia to illustrate a point.

That’s the way it is here. Nothing is too much of a problem.

But behind this relaxed atmosphere is a vision they’ve worked hard to achieve. It illustrates their passion for the wine produced from their 12-hectare vineyard.

“When I started putting posts in on the Takapau Plains many people thought I had fallen off the edge. I was told ‘you can’t grow grapes there.’

But success or failure didn’t worry me. I wanted to give it a try and find out if it was possible,” says John.

“It’s a bit of a fluke really. I had a passion about Pinot Noir and wanted to grow it. The red metal terraces and cold nights and warm days in this area ripen the fruit slowly. It’s ideal for the aromatics and ideal for Pinot Noir. The slow ripening is what drives the aromatics and that’s what makes ours stand out. We are quite southern so it puts us in a slightly different category to other Hawke’s Bay wines. The wind and climate here is clean and cool so we don’t get disease problems and because we don’t spray every week, our costs are lower.”

Their son Leith is the winemaker at Morton Estate but is also contracted there for Junction Wines. He works closely with John and Jo. “We’re very lucky to have Leith as our winemaker. He’s passionate and has an excellent palate. He does a lot of tasting in his mouth. When we are getting close to picking, we send samples up to him I think its same as vegetables and fruit, you pick them when you think they are the best flavour,” says Jo. This year Leith won a Silver and a Bronze for Mortons and four Bronzes for Junction- two 2013 Pinot Noirs and 2014 Sauvignon Blanc and Pinot Gris.

Awards such as these are good for business.

Not only does it promote Junction Wines, its good for Central Hawke’s Bay and for the wine industry down here – Limerock Wines and Pukeora Estate,” say the Ashworths.

“Getting the award was nice timing for us prior to Christmas shopping and with Richard Harding coming on selling on commission for Junction Wines too. He is ideal because he has good contacts with restaurants and enjoys talking about wine to chefs. He has our wine into several top restaurants in Hawke’s Bay,” says John Junction Wines harvest between 40-60 tonnes of grapes per year, or around 50,000 bottles of wine.

Aside from the vineyard, the Ashworth’s have a 250 ha beef and sheep farm. John and Jo split their time between the farm and the vineyard with Jo doing the stock work in the morning, while John keeps busy in the vineyard. In the afternoon they both attend to the cellar door.

Their other two sons are both bankers; Tyler in Auckland and Shay in Masterton.

“We get plenty of advice, but no help,” quips John but adds. “They all have a contribution to make here and its good to have their point of view when planning ahead.”

John played front row forward for the All Black’s from 1977-1986. His nephew is current All Black lock Brodie Retallick. www.junctionwines.co.nz

PRO

Primary Feature

Jo and John Ashworth

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WILD WEST APPROACH IS OVER It’s time for us on the land to open our eyes and accept that it is no longer ok to maintain our ‘wild west’ approach to health and safety.

By Brent Paterson | Rural Directions

Its time for us on the land to open our eyes and accept that it is no longer ok to maintain our ‘wild west’ approach to Health and Safety. It is tough enough to attract people to our sector without us featuring in the newspapers on a weekly basis, having to cart someone off the farm in a box, crude as this sounds these are the facts.

We need to make H&S a culture not a policy.

Our culture needs to be preventative not reactive. The only way to do this is to lead from the front and make it about our labour force, this is now stick not carrot, we had our chance with the carrot approach.

Most kiwis will remember this example of a change being used to one’s advantage. Larry Ellison’s introduction of the Gyro Automation Device to help with setting the trim tabs going up wind to his advantage coming back from a 8-1 deficit against Emirates Team NZ in 2013.

I think if we are smart we can use H&S to our advantage. It drives meetings and planning, it pushes us to communicate and it forces us

to ask questions. Most importantly it drives culture for our employees, making Health and Safety second nature.

We need to put a plan in place to let our employees know that we are committed to their safety.

An IT company selling copiers & printers . . . now that makes sense!

We are proud of a culture of H&S on our farm, we have had meetings with the team and agreed that it is really important to come home at night from your job, if there is any confusion on this you should get your children’s opinion.

It amazes us that when we are doing development projects on the farm and the contractors get taken through an induction that many of them say that it is the first time they have ever encountered such a thing. They also are very supportive of the action and when it is delivered to them as our culture they embrace it and feel they are in a supportive and safe environment.

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Putting a H&S plan in place needs to be practical and workable, it’s a live document not a static document, hazards need updating and accidents and near misses recorded. It is up to both the employers and employees to make sure they fully understand the procedures. An environment needs to be created whereby the employees feel comfortable asking questions.

Employers need to take responsibility to make sure they understand H&S legislation and are passing on the correct information.

I actually think that most farms are very safe places to work; I think that the land owners do genuinely care about the employees and I think that we do understand the consequences if something does go wrong, but I also think that it has been placed in the too hard basket for some. I hear ‘where do I start’, ‘who is going to keep this up to date’ and ‘we are only a small family farm so it doesn’t affect us’ all too often.

The answer is; it starts with you. There are many providers who can assist (including Rural Directions in 2015 - plug) and yes it does affect those of you with small family farms.

Let us lead from the front, turn this legislation into a competitive advantage for our sector and help the people who help us to come home to their families at night.

Brent Paterson is the founder and managing director of Rural Directions- Primary Sector Recruitment & HR. His rural credentials are impressive from running a sheep stud and beef operation in Patoka, through to his involvement in Rural Directions subsidiary company, Primary Industry Management. To contact Brent, email – brent@ruraldirections.co.nz.

Scan the QR code to watch the interview with Mike Peterson or visit www.theprofit.co.nz

Let’s celebrate Hawke’s Bay Primary Sector – a phenomenal success story The regions primary sector will celebrate excellence in 2015 like never before. Hawke’s Bay A&P Society is hosting the first Napier Port Hawke’s Bay Primary Sector Awards on April 1, which incorporates a range of awards including the 43rd Silver Fern Farms Hawke’s Bay Farmer of the Year the Pan Pac Farm Forester of the Year and a new Primary Sector Industry Leader award.

One of the driving forces behind moving to the new awards, Mike Petersen, who was the region’s Farmer of the Year in 2001, says the Hawke’s Bay primary sector is a phenomenal success story.

“Our primary sector is incredibly diverse and something we should celebrate. We have such a range of sectors that contribute to jobs and growth, and of course the whole wellbeing of Hawke’s Bay really rests on the back of the primary sector that produces so well.

“Hawke’s Bay has diversity and real innovation and that’s at the heart of what is a really vibrant sector, it’s not just the sheep and beef sector, we are the second largest grape growing region, and we have the largest pipfruit sector in NZ, not so many dairy farms but we have a big footprint.”

The winner of the Silver Fern Farms HB Farmer of the Year has to be more than just a good financial performer, says Mike, who held the title in 2001.

ATTN13PRO10KNO

“It’s about how farmers look after their staff, what the environmental performance is like, how the animals and livestock policies are looked after, it has to be an all-round performance and we have plenty of good examples of those in Hawke’s Bay.

“Farming is an incredibly diverse business these days, we’re now seeing more focus on environmental performance and with that comes the need to fence off riparian strips and more opportunity for more forestry. The Hawke’s Bay Farm Forester of the Year will be running an incredibly diverse business but with a real focus on high quality trees.

Tickets are now on sale, for more information go to napierporthbpsawards.co.nz

“I would encourage all people, whether you’re an entrant, a supporter or a sponsor, to get in behind this event and really help us showcase what Hawke’s Bay has to offer.”

The Primary Sector Industry Leader Award, sponsored by the Hasting District Council, recognises those who lead from the front through innovation, building creative and empowered teams to deliver significant businesses enriching the industry and economy.

Hugh and Sharon Ritchie winners 2014

Councillor for Mohaka Ward, Tania Kerr, who will join the judging panel, says the winner will no doubt be an individual who has displayed innovation and leadership at the highest level, representing Hawke’s Bay on the national, if not the international stage.

Naming sponsor Napier Port’s Chris Bain, general manager, corporate projects, says the port has a deep and long term connection with the region’s key business sector.

“Our sponsorship of the Hawke’s Bay Primary Sector Awards recognises leading primary sector businesses and people, which collectively contribute to the ultimate success of Napier Port.”

The gala awards dinner also includes, the Laurie Dowling memorial award, for outstanding contribution to agriculture awarded to a person who largely goes unrecognised and who works or gives of their time voluntarily to the betterment of agriculture in Hawke’s Bay and the Lawson Robinson Scholarship for outstanding academic and leadership qualities in a student currently enrolled in a full time land based production industries programme at a New Zealand University.

Danny and Robyn Angland winners 2013

Matthew and Gemma Barham winners 2012

Celebrating excellence in the primary sector in Hawke’s Bay FEBRUARY - MAY 2015

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Finance

THE PSYCHOLOGY OF INVESTING The time commitment required for taking advice and implementing an insurance and investment plan is usually dictated by the complexity of what’s proposed.

By Tobias Taylor | Spicers Portfolio Management

You should be able to discuss with your investment adviser, how ‘hands on’ or ‘hands off’ you want to be in regards to your investments. Some investors enjoy discussing investment ideas with their adviser on a regular basis and others would prefer to have their portfolio 100% managed.

You should also be prepared for full disclosure in regards to protecting yourself with insurance.

Only with a full picture will you get the best advice and more importantly, the right advice that no web site can give.

Whatever your requirements are, one of the greatest roles an Adviser can do is to save you from yourselves.

A professional who gives an un-emotional view of your situation, coupled with a structured plan and advice process can greatly assist you in dealing with a complex area that is riddled with jargon, halo effect fuelled hyperbole.

Sure, these things have a cost. Due to the requirements of the Financial Adviser Act if your Adviser is an authorised financial adviser then any advice cost should be fully disclosed to you from the outset, as well as any remuneration that is paid to your Adviser. But the cost of advice is certainly a lot less than lost opportunity, failed investments and insurance claims that are not paid due to nondisclosure.

In a favourable market (like we have at the time of writing this article), it is important that we revisit the fundamentals and keep disciplined. If experience teaches me anything, it’s in the good times we lose sight of discipline and a structured approach. In not so good times, these mistakes can come back with (or without as the case be) interest.

The following article appears on www.spicers. co.nz and deals with the psychology of investing funds.

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Question – What two words best describe why we do things the way we do?

Answer – Human nature.

Unfortunately, in the investment world, human nature is more often a hindrance than a blessing.

As human beings, our emotions and psychological biases can often lead to poor or, at times, irrational decision-making. One area where your financial adviser can potentially add a lot of value for you is in preventing unwelcome behavioural reactions from dominating your decision-making process.

Some behavioural tendencies are so widespread that a number of eloquent new expressions have entered the financial lexicon. A few of the more colourful ones are as follows: Fear of regret – this refers to the pain felt after making a bad decision. It is the fear of regret that causes an investor to hold on too long to a share that has dropped in price. The investor holds on to a losing share in the hope that its price will return at least to its original purchase price, at which point the share can be sold with no regret.

This tendency helps explain why professional money managers will often turn over their investments more regularly than private investors.

A professional manager is less concerned about crystallising a loss on a poor performing investment if they have identified a better current opportunity in alternative share.

The snake-bite effect – refers to an investor’s reluctance to take risks after experiencing losses.

It predicts that investors will avoid riskier shares once they have experienced a loss in the share market.

The snake-bite effect was very evident in NZ following the share market crash of 1987. From October 19th 1987, the NZ share market fell about 60% in two weeks and many local investors were ‘bitten’ so badly that they avoided investing in shares ever again.

Trying-to-break-even effect – is counter to the snake-bite effect. This refers to the desire by investors to recoup large losses in one quick longshot (very high risk) investment. This form of behavioural bias predicts that investors who have lost money are more willing to take very high risks to try and recoup the loss immediately.

This might explain why some investors are prepared to invest in extremely high risk ventures without doing any real due diligence. However, in my opinion, this high risk approach is not investing at all, it is a form of speculation.

The endowment effect – refers to the tendency by people to place higher value on what they own than on identical items they do not own. This can also be viewed as the “do nothing” effect where investors make decisions with a preference to keeping their original investments, as if selling them will somehow elicit a feeling of loss.

This is seen quite often in local share market investors who seemingly take great comfort out of owning the shares of a particular company or companies.

Having an understanding of your own behavioural tendencies, particularly with respect to investment decision-making and markets, might help you (and will certainly help your adviser!) to plot your optimal investment strategy. Markets and investing are complex areas and, quite often, a decision which has a high level of emotional appeal may not be in your best long-term financial interests.

Tobias Taylor is a Certified Financial Planner (CFP) and Authorised Financial Adviser (AFA). Tobias is an Investment Specialist and is the Managing Principal of the Spicers Hawkes Bay & East Coast office, which is a Spicers Franchise and thus proudly a Hawkes Bay and East Coast owned business.

For more information on Spicers see www.spicers.co.nz. This article contains information of a general nature only and is no substitute for personalised advice. If you would like advice that takes into account your particular financial situation or goals, please contact your financial adviser.

A disclosure statement is available from your adviser, upon request, and free of charge.

PRO IT

Data Disasters!

We all know we should. We’ve been told time and time again. Back it up. But do we? Well sometimes . . . we know we should have . . . we did up until 9 months ago and then forgot to . . .

By Wray Wilson | Need a Nerd

I sound like a stuck record about backups but every week we still see disappointed people and businesses that have lost data forever. If you do nothing else with your IT this year, make sure you have a rigorous backup plan in place. Don’t let 2015 be the year that you have a data disaster!

So what does backing up actually mean? There are so many different products purporting to be backup systems that choosing the one appropriate for your needs can be confusing.

Whether it is cloud based or on site you need to consider a few important factors before making your decision about what to go for – this list is by no means exhaustive – there are plenty of other things to consider with your IT professional.

Retention: A backup with retention enables you to keep data for set periods of time so you can step back to retrieve data from a particular point. You might have a daily, weekly, monthly, annual and even seven year backup for instance. Should you only

have a rotating daily backup, you could accidentally delete a file that in a few days’ time might not be retrievable anymore.

Encryption: Is the data in your backup encrypted in any way to protect it? Many organisations use a system of rotating external hard drives to back-up their data and these are taken offsite to ensure redundancy. They are however vulnerable for instance either in transit in a briefcase or at a home office. Whilst an external drive might be lost, it is important to ensure the data on them is not accessible in the wrong hands.

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Product sales, set-up, advice and ongoing support.

0800 NeedANerd (0800 63 33 26) www.needanerd.co.nz service@needanerd.co.nz

Ease of use: No matter what system you use, it has to be simple to operate while doing what you need it to do. This includes having the ability to validate your backup on a regular basis. By validation I mean actually testing that you can restore the data from your backup should it be necessary. Also make sure that the data restoration process itself doesn’t take too long – there’s no point in your data restoration process taking days if you run a time critical business.

What to backup: There are two main types of backup available to you – either a file backup or an image backup. A file backup saves a set of files that you nominate - ideal if you have a simple file structure of a few folders. A full image takes a snapshot of your entire system at a certain point in time. This includes your programmes, settings and how things look (your desktop etc). This is great if you don’t have your old programme disks, keys etc or have a very complicated set up that would take a long time to reload/programme.

Alerts: Your backup should be sending you automated alerts to let you know if it has failed. As a general rule, the less reliance you have on a human doing something the better off you will be.

Cloud backups: Finally a word on cloud backups – not all of these are created equal. Cloud storage (for instance the entry level Dropbox plan) is not a backup – it is simply a mirror of the data on your computer. In order to get proper backup functionality from cloud storage, you generally need to go onto one of the paid plans that give you some of the features mentioned above.

Like most complicated topics, seeking advice on backups is time well spent. Once data is gone it is generally not recoverable and if it is it will not be easy or cheap. Invest a little time and effort in ensuring your data is well protected so that in the event of something untoward occurring, you can be back on your feet with the minimum of hassle or expense.

Wray Wilson is the chief nerd and franchise owner of Need a Nerd Hawke’s Bay. Need a Nerd is a nationwide technical sales and support business to the SME and residential market. Email - wwilson@needanerd.co.nz FEBRUARY - MAY 2015

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NOW AND EIT TEAM UP TO BOOST LOCAL EMPLOYMENT Locally-owned fixed line telecommunications company NOW and EIT’s School of Computing are partnering up to open more doors for students and graduates wanting to work in the region.

By Mary Shanahan

Head of School Dr Steve Corich says the relationship, encompassing cadetships, software development opportunities for students, postgraduate research projects and job opportunities with the company, is a win-win for both partners.

“We gain credibility by showing up front that we work closely with industry and NOW gains access to our high calibre graduates.”

Established in 2002 and based in Napier, NOW has achieved rapid growth in Hawke’s Bay over the last three years. The company has 25 percent of the business and 20 percent of the region’s residential market share – a gain it attributes to its rapid response to the rollout of fibre (UFB) and a strongly service-led business culture.

Recently-opened offices in the Bay of Plenty and Wellington are the first of 10 planned satellite offices that, combined, are aimed at establishing a commanding presence in the central and lower North Island.

However, chief executive Hamish

White says being headquartered in Hawke’s Bay has its challenges, with no other telecommunication or like companies located in the region to provide an experienced recruitment pool.

“It’s in this context that NOW has been working with EIT to shore up the future talent pool. The company is currently recruiting one new person every four weeks and is forecast to continue to do so for the next two years.”

With a total staff of 32 plus 12 contractors, NOW currently employs six EIT graduates including several with Bachelor of Computing Systems degrees. Another employee is studying at EIT and two students start internships at the company in February.

Dr Corich says that over the last 18 months NOW has been offering degree students internship opportunities with a view to permanent appointments.

“That has now evolved into a formal agreement.”

NOW chief executive Hamish White (centre) and EIT chief executive Chris Collins (right) with EIT graduates working at NOW, from left, Stuart Taoro-Ahsin, Jacob Philp, Chris Penny, Amie Mitchell and Robert Pauling.

The cadetships will cover second and third-year fees for Bachelor of Computing Systems students, provide holiday work and offer internship opportunities with the prospect of employment at NOW. Information technology lecturer Dr Paul Dechering is exploring opportunities for students to work with the company on software development as part of their programming studies.

Next year, NOW will be talking to Postgraduate Diploma in Information Technology students about possible areas for research projects which they undertake in the second semester of their study programme.

To help facilitate these developments, NOW head of customer operations Pip Thompson recently joined the School of Computing’s advisory committee.

Hamish says the alliance with EIT is exciting and has strategic significance in ensuring the company is resourced with people who have relevant qualifications.

“Typically we would start a graduate on the technical side of our customer service desk and after 15-18 months look to move them onto a career path that’s more aligned to where they wish to go. This could range from sales, marketing, software development, network engineering or such like.

“The great thing in starting them on the customer service desk is that we install a customer service ethic from day one – it doesn’t matter how far removed they eventually become from the customer, this empathy will be ingrained.”

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Grace Patterson, Bachelor of Computing Systems graduate. Business Analyst, Fastway Global.

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0800 22 55 348 | computing.eit.ac.nz

PRO

HR

New Health & Safety Legislation If robust Health and Safety isn’t on your list of New Year’s resolutions – it should be.

By Kimberly McKay | BDO Central

Generally employers know if they have an effective Health and Safety culture in their organisation or whether it is more of a tick the box, do the bare minimum and ‘she’ll be right’ mentality. It is an area that is easy to become complacent about once you’ve introduced a Health and Safety policy, set up processes for hazard monitoring and accident reporting, and have then assumed everyone will get on with it.

We travel overseas to places where it seems nobody has heard of OSH and see some high risk stuff that makes us laugh and we are very confident would never happen here. But the Pike River Mine tragedy happened here and in 2013, 51 people died in workplace accidents in New Zealand (provisional figures). The average for the last 5 years is 58 fatalities notified under the Health and Safety in Employment Act. This excludes fatalities in the maritime or aviation sectors or due to work-related crashes on the road, so actually the total number is higher.

OSH is an area of management that requires constant vigilance, commitment and transparent leadership from the top. We know that managers and employees focus their energy on doing what is monitored and measured. There needs to be continuous and genuine messages from leaders that OSH matters and that just like other aspects of performance we will measure it, report on it, reward good practice and take action for poor performance.

This is exactly the emphasis of the Health and Safety Reform Bill - Directors and Officers need to step up and be proactive in Health and Safety because they will be held to account.

The Bill is focussed around the obligations of a PCBU, “A person conducting a business or undertaking” and the responsibilities of Officers and Directors. There is a primary duty on a PCBU to ensure, as far as reasonably practicable, the safety of workers and others associated with the work carried out by the PCBU – in some ways not so different from the current duty on employers. However what’s new is the positive due diligence duty imposed on officers of PCBUs. This means that those in governance roles must proactively manage Health and Safety and this duty is individual to Officers, not just the entity as a whole. The intent is that the duty lies with the people in the best position to control Health and Safety at work and these obligations cannot be contracted away.

Directors and Officers will need to: • Keep their knowledge of health and safety matters up to date • Understand the nature of operations of the PCBU and associated risks and hazards • Ensure the PCBU has and uses appropriate resources to eliminate or minimise risks to health and safety from work carried out as part of the business • Verify the provision and use of resources (require suitable reporting and information at board level) • Ensure the PCBU has appropriate processes for receiving and considering information regarding incidents, hazards and risks and for responding in a timely way to that info • Ensure the PCBU has and implements processes for complying with its obligations under the Act

The Bill introduces significantly increased penalties for individual PCBU Officers, body corporates and workers. There is also renewed emphasis on worker participation with a duty to involve and engage workers on Health and Safety and to implement participation practices appropriate to the size and level of risk of the workplace. The legislation is due for implementation from 1 April 2015 so there is time to ensure that you are well informed about your obligations and to review how robust your current processes are.

You can get detailed information about the Bill from the Worksafe New Zealand website. If you are managing OSH well now there should be no need to be greatly concerned by the new legislation. If you know there are weaknesses in your current management of Health and Safety then act now – don’t wait until the new law is in place.

Kimberly McKay is a Human Resource Consultant at BDO. She has extensive experience assisting both small and large employers with all aspects of their HR needs.

BDO are Chartered Accountants and Business Advisors, with offices in Napier and Palmerston North. They are able to support clients with a comprehensive suite of accounting, information systems and HR services. For more information contact Kimberly on 06 835 3364 or at kimberly.mckay@bdo.co.nz.

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PRO Legal

HEALTH & SAFETY – CHANGES ARE ON THE WAY The Health and Safety Reform Bill (the “Bill”) is currently before parliament and expected to come into force in the second half of 2015. There is, therefore, no reason to start panicking but it is advisable to begin considering its impact as the changes are expected to be significant.

By Edward Bostock | Bramwell Grossman Lawyers Until the Bill is passed there is potential for the matters and having an understanding of ensuing legislation to be changed and therefore business risks and hazards of the PCBU (e.g. caution that the information below is only on through an accurate and up to date hazard register). the Bill and not enacted legislation.

The Bill introduces the concept of a “Person A Worker is defined to essentially cover anyone Conducting a Business or Undertaking”, known who carries out work in any capacity for a as a PCBU. The idea is that the PCBU is in the PCBU and includes employees, contractors, best position to control risks to work health subcontractors, an employee of a contractor, and safety as the one carrying out the business a trainee or a volunteer. Workers will have or undertaking and as such the PCBU concept a duty to take reasonable care of their own ensures that the duties lie with those in the health and safety and to ensure that their acts position of control and that those duties are or omissions do not adversely affect the health and safety of others. They must also comply appropriate to their role at work.

A PCBU will usually be a business entity, such and cooperate with instructions and policies as a company, rather than an individual person given by the PCBU relating to health and safety. but it could also cover the owner of the land What is “reasonably practicable” will require on which the business is being conducted. A a PCBU and an Officer weighing up all relevant person might be a PCBU if they are a sole trader matters including the likelihood of the hazard or risk occurring, degree of harm, knowledge of or a self-employed person.

The primary duty of care requires PCBUs to person concerned, and the availability of ways ensure, so far as is reasonably practicable, the to eliminate or minimise the risk. health and safety of Workers and the health The penalties under the new Bill are and safety of other people (e.g. visitors and significantly higher than under the current customers) is not put at risk from work carried legislation. WorkSafe NZ, as NZ’s workplace out as part of the conduct of the business or health and safety regulator, will have 2 years to commence a prosecution, compared to the undertaking.

An Officer (of a PCBU) is also subject to certain current 6 months (with the ability to request duties under the Bill and in essence will have extension). to be proactive and not reactive. An Officer WorkSafe NZ will have other enforcement includes directors, partners in a partnership tools but the penalties contained in the Bill and trustees of a trust. While it also includes are: any person who makes decisions that affect 1. Reckless conduct exposing an individual to the whole, or a substantial part of the risk of death or serious injury business of the PCBU such as people in senior a. Fine not exceeding $3 million for management positions. An Officer’s Vehicleduties GraphicsCorporations; will be personal, cannot be discharged and Building / Shop Fronts b. Up to 5 years’ imprisonment and/or fine will include (but not be limited to) exercising not $600,000 for PCBU or Officer; Footpath Signs c. Upexceeding due diligence to ensure the PCBU complies to 5 years’ imprisonment and/or fine with its duties, being expected to have upnot exceeding $300,000 for individual who is to-date knowledge of health and safety not a PCBU or Officer.

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Call 0800 SPEEDY today!

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hastings@speedysigns.co.nz 903 Heretaunga Street West, Hastings 38

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2. Failing to comply with a health and safety duty and exposing an individual to risk of death or serious injury: a. Fine not exceeding $1.5 million for Corporations; b. Fine not exceeding $300,000 for PCBU or Officer; c. Fine not exceeding $150,000 for individual who is not a PCBU or Officer.

3. Failing to comply with a health and safety duty: a. Fine not exceeding $500,000 for Corporations; b. Fine not exceeding $100,000 for PCBU or Officer; c. Fine not exceeding $50,000 for individual who is not a PCBU or Officer.

The impact for businesses and individuals will obviously depend on various factors and in particular on what processes and policies are currently in place however, given the penalties, it is imperative that serious consideration be given to this as the impact could be substantial and could present substantial challenges. It shall also be important to recognise that persons of responsibility in an organisation will now have responsibilities and obligations.

The key message is that it will no longer be acceptable to pass on or contract out of responsibility for health and safety. If a business is contracting others to do work, that business will have a responsibility to eliminate and minimise risks for all parties, so far as reasonably practicable.

Edward Bostock is a solicitor at Bramwell Grossman Lawyers in Hastings. He has Bachelor of Laws from the University of Sheffield in the UK. To contact Edward, email edward@bglegal.co.nz

PRO

Business

Predictions and Wishlist Well 2014 has been and gone and we’re into Rugby World Cup year! This the time of year to reflect on what went right and wrong, and look to the future – what it might look like and what that means for your business.

By Cedric Knowles | KNOWLedge Accountants

A number of the businesses I work with have a significant export focus, which provides me with numerous opportunities to travel to other countries. During 2014, I visited South Africa on two occasions, and my eldest daughter also had the experience of attending school there for a term. Spending time in Africa gives a unique perspective on the development of world economies – where undeveloped countries are heading, how far ahead first world countries currently are, but how quickly the gap is closing.

There is no doubt that the global balance of economic power is shifting east and south, and for the first time in well over a hundred years, New Zealand is now close to the action.

Reflecting on the changing world and what it might be like in a decade’s time prompts me to make the following New Year predictions and wishlist:

JOBS A report in November last year by CBRE predicted that by 2025, 50% of current jobs will be redundant – their current purpose will simply not exist. The report suggests that vast swathes of middle-management jobs will disappear while many others will be replaced by ever-smarter technology. In Hawke’s Bay, the former has already happened to a large degree with the departure of almost all head offices to larger centres, so on a positive note, the Bay may well have gone through the worst of the pain and is now well-positioned to grow smarter jobs that are not location dependent.

Our core industries might be land-based, but if there is sufficient investment and education

in R&D and innovation, we might finally see genuine progress in extracting more value from raw products. My prediction is that my children’s generation may be able to choose to work in Hawke’s Bay, but for the virtual R&D teams of (for example) a Chinese or Brazilian company. My wishlist includes a desire to see Hawke’s Bay as a natural home for a much larger share of immigration into New Zealand, bringing increased local demand, work connections to foreign businesses and a better understanding that our market is not bound by the Ruahine ranges and the coast – we are only 150,000 customers out of a potential 7 billion!

EDUCATION Hand in hand with a changing employment landscape will be a need to change our perceptions of education. The focus of the education system is on producing qualifications in order to “get a job” and I believe that focus is too short-term. What is urgently needed is a shift towards preparing students to whom innovation is second nature, encouraging an entrepreneurial attitude and an understanding of the importance of communication. I was interested to see one of the subjects my daughter studied in South Africa was Life Orientation – designed to “develop and practice a variety of life skills to solve problems, to make informed decisions and choices and to take appropriate actions to live meaningfully and successfully in a rapidly changing society.”

I am not sure that our New Zealand school curriculum is positioning our kids adequately for their future and predict that given the charter

school model in place, we may start to see the advent of university-owned or run secondary schools that provide an earlier grounding in innovation and business. My wishlist includes a hope that Innovation becomes a core subject alongside maths, english and science (and I wouldn’t mind of Mandarin was much more widely available).

TAX There is already a lot of publicity around the impact of tax in a global context – the minimal levels of tax paid by large multinationals such as Google and Apple, and the GST that is “lost” through international online sales. These issues are only likely to escalate as businesses operate across more and more borders, and national budgets start to leak revenue. My prediction for 2025 is that there will be less and less reliance on personal and company income tax, and more use of technology to collect GSTtype taxes at the point of transaction, online or not. On my wishlist would be some form of transaction tax on “invisible” transactions such as currency or futures trading, collected on a global basis and distributed according to the value of each countries trades.

Here’s to a successful 2015 and as always, be ready to embrace change in the decade ahead!

Cedric Knowles is a director of KNOWLedge Accountants, Hawke’s Bay. He has worked as an accountant in the Bay since 1987. Contact Cedric by email: cedric.knowles@knowles.net.nz FEBRUARY - MAY 2015

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Property

LEAVE VALUING PROPERTY TO THE EXPERTS When it comes to valuing your property, don’t leave it to chance.

By Paul Harvey | Williams’ Harvey Registered Valuers

As I write this article 10 days prior to Christmas there is a manic pressure that is physically palpable in the office with the determination to get our work done by Christmas. Come February, hopefully you will have had time to relax, kick back and enjoyed some down time with family and friends. Celebrating the New Year also brings with it the hopes and dreams for the year and in some cases the next part of the plan with regard to your property endeavours.

The team at Williams’ Harvey understands that the value of property is important to a variety of ventures you may wish to undertake in 2015.

Valuations for the purposes of buying/selling, financing, investing, renovating, insuring and family division are some of the more probable reasons you will need to seek property advice this year. This is a timely reminder that seeking professional advice is prudent when you are dealing with your largest asset in the current market place The main consideration in providing a registered valuation is to determine a property’s current market value: that is the present worth of future benefits arising from the ownership of property. Unlike many consumer goods that are quickly used, the benefits of property are generally realised over a long period of time.

Therefore, an estimate of a property’s current market value must take into consideration economic and social trends, as well as governmental controls or regulations and environmental conditions that may influence the value.

Value Vs Cost and Price Value is not necessarily equal to cost or price. Cost refers to actual expenditures; for example, materials and labour. Price, on the other hand, is the amount that someone pays for something. While cost and price can affect value, they do not determine value.

Current Market Value Market Value indicates the most probable price that would be achieved in a hypothetical exchange in a free and open market. The formal definition of Market Value as used by Registered Valuers when assessing a property’s Market Value is: “The estimated amount for which an asset should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.”

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Market Price on the other hand is the price at which a property actually sells. For example, if a seller is under duress because of the threat of foreclosure, or if the property was sold in a private sale without being exposed to the open market, the property may sell below its market value.

Valuation Methods An accurate valuation method depends on the methodical collection of reliable data. Specific data, covering details regarding the particular property, and general data, pertaining to the nation, region, city and neighbourhood wherein the property is located, are collected and analysed to assist in the assessment of market value. Four basic approaches are used during this process to determine a property’s value.

Method 1 - Sales Comparison Approach - Interprets the evidence of recent market sales transactions of comparable properties in terms of the characteristics of the subject property being valued to derive and indicate a market value. These sales are referred to as ‘comparables’ and in order to provide a valid comparison, each must:

The depreciated replacement cost approach provides a useful check method only as it does not fully take into account the current market conditions.

Method 3 - Income Capitalisation Approach The income approach is the third method of real estate valuation. It is a two step process and requires the analysis of a current market rental that could be derived from the property and then as a second part applying to that rental an appropriate capitalisation rate (yield) that a prudent investor would require as a return if purchasing the property. Both the rental and capitalisation rate are taken from market evidence.

• Be as similar to the subject property as possible;

It is used to estimate the value of incomeproducing properties such as residential rental investments and commercial/industrial property.

• Have been sold as recently as possible in an open and competitive market and

Method 4 - Discounted Cash Flow Approach

• Have been sold under typical market conditions.

Since no two properties are exactly alike, adjustments to the comparable sales prices will be made to account for dissimilar features and other factors that would affect value. The market value estimate of the subject property will fall within the range formed by the adjusted sales prices of the comparables.

Method 2 - Depreciated Replacement Cost Approach Involves the estimation of the land and building content of the subject property as separate valuation figures and their summation to provide an indication of market value. A current replacement cost of buildings and other improvements are estimated assuming a new building providing the same utility. An estimate is made for depreciation to reflect the degree to which the existing buildings and improvements are less valuable than a hypothetical new one.

The sales comparison approach is considered to provide the best method of determining a property’s current market value as it fully takes into account the current market conditions.

This is a financial modelling technique based on explicit assumptions regarding the prospective cash flow of a property. As an accepted methodology within the income approach to valuation, DCF analysis involves the projection of a series of period cash flows either to an operating property, a development property or a business. To these projected cash flow series, an appropriate market derived discount rate is applied to establish an indication of the present value of the income stream associated with the property. This last method is generally used for more complex valuation scenarios.

Conclusion Exhausted? Then it is time to call the professionals when it comes to make prudent decisions regarding your property. Accurate property valuation is important to mortgage lenders, investors, insurers, but most importantly YOU the home owner and future buyers and sellers of property.

Paul Harvey is the Director of Williams’ Harvey Registered Valuers. He has a diverse and broad knowledge of the HB property market. To contact Paul, email paulharvey@williamsharvey.co.nz

WE’RE BETTER TOGETHER The Hastings District Council supports the reorganisation of the region’s five councils. We believe that a single council will enable the region to seize the opportunity provided by scale and cohesion.

It’s time for Hawke’s Bay to get together for a better and brighter future. Say YES for . . .

1. One regional plan A single council will provide one clear vision and plan to reach our potential. With one plan we can focus our energy on the economic and social development of the entire region. A single council will provide scale, capability and alignment to attract new business, talent and investment into the region as well as retain skilled people and capital.

2. A stronger voice nationally One council will give the region a strong voice and greater influence with central government.

Government ministers, departments or agencies control decisions that shape the future of Hawke’s Bay. They make important decisions on issues such as transport infrastructure, education, future health care and welfare services. A united voice will give more grunt to Hawke’s Bay. In addition a single council will have one large pool of resources to make a difference.

Why things need to change...

Did you know that Hawke’s Bay is at the bottom in many national rankings that reflect a region’s health and vibrancy.

Low regional population growth Ranked 11 out of 16.

Sick health report Near the bottom of 15 of 49 indicators.

Dying Younger Life expectancy is lower than NZ avg.

Slow regional economic growth Hawke’s Bay GDP per capita $39,035 vs NZ avg. $47, 532.

4th lowest median annual household income $53,200 vs NZ median $63,800.

Highest regional crime rate Ranked 12 out of 12 (# Eastern District).

5th Slowest annual employment growth (2003-2013) 1.10% vs NZ avg. 1.5%.

2nd worst for youth not in education, employment or training programmes 19% vs NZ avg. 11.7%.

Join us in making the biggest decision for our region’s future.

3. Less council red tape and duplication A single council for the region will significantly reduce red tape and remove unnecessary duplication. The Local Government Commission estimates that reorganisation will result in savings of $10 million a year. This could be invested in new or improved services or returned to ratepayers. Streamlining the process will allow a single council to do more, and do it efficiently.

4. Making the most of our resources Businesses and communities across Hawke’s Bay are strongly interdependent through shared infrastructure such as roading, the port and airport. A regional approach would assist planning, prioritisation and funding for roading and ensure the efficient management of the network. Council must ensure that economic growth is balanced with the environmental sustainability of our natural resources. One council will mean a common approach to the planning and mitigation of the risk associated with earthquakes, tsunami and rising sea levels.

5. A better place to live Hawke’s Bay has the potential to be the most liveable region in New Zealand. The benefits of a single Council will enable the creation of greater job opportunities. A rise in regional prosperity will have a positive impact on many of our health and social wellbeing indicators. The region will finally live up to its potential.

SAY

YES

Visit: www.hbtogether.co.nz