Chamber Connect Magazine Issue Two

CHAMBER

CONNECT The Bay’s most informative Business Magazine

NOVEMBER 2015

WESTPAC BUSINESS AWARDS CBD TO BE STREETS AHEAD DIANE FOREMAN WIN A COPY OF HER BOOK

GETTING ART OUT AND ABOUT

ISSUE 2

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Business has never been rewarded like this before

Introducing AirpointsTM for Business Air New Zealand’s new rewards programme, Airpoints for Business, is rewarding small to medium sized businesses with Airpoints Dollars™ every time an employee travels with us for work.1 Staff still earn the same Airpoints Dollars and Status Points they always have, but now the company can earn an additional 20% Airpoints Dollars2 too, into the Airpoints for Business account.

It’s free to join – and as a special offer for Chamber Connect readers, if you register online before 31 January 2016 using the promo code Tauranga, your business will go into the draw to win 250 Airpoints Dollars.3

Sign up today at airpoints.co.nz/business 1. Only on eligible flights. 2. 20% Airpoints Dollars calculated from the personal earn rate. 3. Terms and conditions apply to the Tauranga Chamber of Commerce prize draw.

Visit airnewzealand.co.nz/tauranga-chamber-terms-and-conditions. Airpoints for Business terms and conditions apply. Visit airpoints.co.nz/business for details.

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CONTENTS NOVEMBER 2015

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14

TAURANGA IN THE ARENA

Entrepreneur sees value in Western Bay

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MIGRANTS INJECT VIBRANCY Creative aspects add to mix

WESTPAC BUSINESS AWARDS Winners announced

CHAMBER

CONNECT YOUR TEAM Chamber Connect is published on behalf of the Tauranga Chamber of Commerce by NewsAplenty Ltd. EDITORS Anne Pankhurst (anne@tauranga.org.nz) 577 8955

EDITORIAL IDEAS Feel free to contact the Editors or the Publisher to discuss editorial ideas. If we like your suggestion, the subsequent article will run free of charge. Advertorials are also available via Advertising Sales.

DISCLAIMER Chamber Connect is a quarterly publication © Copyright 2015. Articles and illustrations may not be reproduced in any form without the permission of the publisher, NewsAplenty Ltd. The opinions expressed are not necessarily those of, or endorsed by, NewsAplenty Ltd or the Tauranga Chamber of Commerce (the Chamber), unless stated otherwise. Whilst every effort has been made to ensure accuracy at the time of printing, under no circumstances will NewsAplenty Ltd or the Chamber be liable whatsoever for any loss, injury of damage arising directly or indirectly from any omission or error in respect to information contained in the publication (whether the result of negligence or otherwise). NewsAplenty Ltd and the Chamber do not accept any responsibility or liability for the views or claims expressed in this publication. The Editor and Publisher retain the discretionary right to reject all copy, including advertisements, without any recourse.

Katie Ross-Williams (katie@tauranga.org.nz) 577 8954 PUBLISHER & PRODUCTION Paul Dykes (pauld@newsAplenty.co.nz) 021 020 70912 JOURNALISTS Monique Balvert-O’Connor, Paul Dykes ADVERTISING SALES Natalie Adams (natalie@newsAplenty.co.nz) 022 106 9329 DESIGN CREATION Tuskany Agency (tara@tuskany.co.nz) 577 1630

04 TAURANGA IN THE ARENA

05

Entrepreneur sees value in Western Bay

TAXING THINGS YOU NEED TO KNOW

Changes to property tax rules

SPECIAL FEATURE: BUILDING A CREATIVE CITY

08 CBD TO BE STREETS AHEAD

09 THE RISE OF THE CREATIVE

CLASS REVISITED

10 CALLAGHAN TARGETS THE BAY

11 GETTING ART OUT AND ABOUT

12 MIGRANTS INJECT VIBRANCY

13 FESTIVALS FEED A CREATIVE ECONOMY

14 WESTPAC BUSINESS AWARDS

Winners announced

16 DIRECTOR CHARGED WITH

MANSLAUGHTER AFTER WORK ACCIDENT

17 ECONOMY HOLDING UP – FOR NOW

Significant shot in arm wanted

18 YOUNG EMPLOYEE AIMS

TO SUCCEED

Award winner has global plans

19 CITIZENS’ INITIATIVE TO

MAKE CHANGE

Council asked to get on board

21 MERGER PLAN HAS KEY GOAL 22 IGNITION WORKSPACE A

LAUNCH PAD

From home to outer space

23 OFFICE SPACE –

THE NEW FRONTIER

Sharing the experience

25 CRUISE SHIPS ON WAVE OF SUCCESS

Liners are getting larger

26 SNAPPED EVENTS

Out and about town

28 DELIVERY SERVICE IS A GAS

Right up your street

CHAMBER

CHAT

THE CREATIVE CLASS

BY ANNE PANKHURST*

Richard Florida in The Rise of the Creative Class says: “Beneath the surface, unnoticed by many, an even deeper force was at work – the rise of creativity as a fundamental economic driver, and the rise of a new social class, the Creative Class”.

If Tauranga was benchmarking against this principle, where do you think we would sit? Writing this in the middle of the Tauranga Arts Festival and having just finished the Tarnished Frocks and Divas season, I would say brilliantly, but are we?

Do we recognise what huge benefit the creative class can bring to the economy? And let’s not just measure this in dollars, but the more esoteric benefits of skill attraction and retention, creativity, vibrancy and the many other elements and values.

Using Tarnished Frocks and Divas as a recent example, the show now attracts an audience of about 7,000 – 30% are from out of the region and numbers are growing. The show costs over half a million dollars to produce, and all of this goes back into the economy. There is a cast and crew of more than 180 people, both on and off stage. The show supports training institutes that use the opportunity to train their students.

More than 180 people are given the chance to express themselves, some for the first time, and we introduce and celebrate a whole lot of local talent. The trustees of the show worked out they needed to establish a strong business-like approach to a highly creative process to ensure the show’s creativity could flourish and blossom, and establish strong foundations so it could grow into something that the region owns and of which it feels proud. From this, the show has gone from strength to strength and now in excess of 1,000 local people have engaged and left their mark.

Tarnished Frocks and Divas is a prime example of creating a strong creative economy, not just in dollars. So what does Tauranga need to focus on to truly feel comfortable benchmarking against Richard Florida?

My suggestion would be to recognise and encourage the creative sector. To not only get behind it and be proud of it, but acknowledge it is both important and beneficial to our community. Rather than being dismissive about the creative class, ask yourself what would our city look like without it? * Anne Pankhurst is Operations, Events and Training Manager at the Tauranga Chamber of Commerce

TAURANGA IN THE ARENA

BY PAUL DYKES

Entrepreneur sees value in Western Bay Celebrated business leader Diane Foreman says Tauranga is on the right path to become the entrepreneurial capital of New Zealand.

She told guests at the Chamber of Commerce Business Leaders lunch in September that she was aware on a personal level that people with money were making tracks to Tauranga.

“Friends in Auckland are telling me they are selling up and moving to Tauranga because they see it becoming New Zealand’s Silicon Valley. If New Zealand is going to have an entrepreneurial city, then it is going to be here. Tauranga has a great workforce.”

She was at the function at Mills Reef to promote her new book In the Arena, which she had wanted to call Mistakes – I’ve had a few. Having started out as a young solo mum with no money, she says it hasn’t been a dream run.

She left school at 15 with no formal qualifications. By age 20 she was a solo mum with two kids, working as a typist during the week and as a waitress on the weekends. “The day care costs and the mortgage was costing more than I could earn. I know what it is like not to be able to pay the power bill.

“I didn’t know it, but I was already experienced in fast-moving consumer goods (the eggs) and recruitment (the babysitters).”

The Ernst & Young Entrepreneur of the Year 2009 and awarded a Companion of the New Zealand Order of Merit (for services to business) in 2011, she eventually created a business empire that once included healthcare and manufacturing, and now she has interests in high-level recruitment and a boutique hotel.

“You need the [entrepreneurial] gene, the attitude to risk that says you are prepared to put everything on the line, every day. But you have got to be comfortable with what you do. Don’t try to be something you’re not – [you can] work for someone else.”

Diane says the turning point for her was meeting her second husband, Bill Foreman, who owned Trigon Packaging Systems, a global enterprise. “Bill had the ability to spot talent. He knew I had the ability to learn and that I could be his apprentice.”

But when he offered her a seat at the company’s board table as a representative of the family trust, Diane says she was cold-shouldered by the other directors.

“I could never afford to go out. I shared clothing with a girlfriend and we would babysit for each other while one wore the clothes on a date.”

“It was 30 years ago – a woman on the board and the wife of the chairman? No one shook my hand at the first meeting, even though I offered it to each of them.”

But she already had history as an entrepreneur. At aged 10 she was selling eggs to neighbours and in her teens she started up a babysitting service, getting her friends to babysit while she took a commission fee.

She says Bill was colour and gender blind when he chose his executives. “He would send them offshore to other companies and bring them back as executives. He has shown generations of young Waikato people how things work. Many have gone on to run big companies.”

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She says young people need mentoring rather than being left to learn through osmosis. “I want to grow great people, so I make sure every good person in the team has a mentor.

“It’s so hard for women to grow a business. Women need collegial support – men get that naturally. When men meet, they are asked about their business, etc. For women it’s about dinner and children’s sports. Women are not talking the same language.”

To be a success, you need to take time to be out of your business, Diane says, in order to make time to work on it.

“Being out, and looking in, makes it a better place.”

She then explained her business tactics: 1. Get a mentor.

“That’s my biggest tip.”

2. Write down a business plan.

“As you start acting on it, it becomes a business.”

3. Pitch your ideas.

“You need to be able to say what you’ve got to sell in less than three minutes.

Practice it in front of the mirror. Always start with your best number first – people absorb that part. For example, every 12 seconds someone in the world is eating my ice cream.”

4. Get great people.

“They are the backbone to any business.

Always hire people who are better than you. They will be able to take it to another place. Or those whose skills complement your own. For example, I’m not good with numbers. I make sure I’ve got the best CFO I can get.

“Are you a manager or a leader? I’m not a leader. I’ve had to confront some comments: ‘She’s useless, all she does is

Diane Foreman

hire good people’. I see that as a success, not a negative.

“Be very careful on how you hire. Hire very slowly. I take five interviews – I have to get to know that person and whether I’m right for them. If you’re going to be paying them more than $150,000 a year, you need to do a drive-by of their home. See how they look after their biggest asset before you let them look after yours.

“Insist on four references, but never believe a written reference – it may have been written as a sweetener to get rid of them. Contact all referees direct.

“You will get it wrong sometimes, so fire very fast – the faster the better.

Make them an offer to get them out the door and bring the focus back on your business.

5. You’ve got to be passionate about your product if you want others to be too.

“We bought the Loaded Hog pub in the Viaduct in Auckland – people were queuing to buy beer. I’m a teetotaller, so I didn’t understand the business. I couldn’t do it.

“People were puking in the gutter yet at the board meeting the directors wanted to sell more beer. I approached Douglas Myers [chairman of Lion Nathan] for help despite not knowing him because I wanted a mentor at the top of his game and with his assistance I was able to see

that as a teetotaller I was an inauthentic representation of the brand. He was able to tell me how to improve the business and exit with a profit.

“My learning from this is always approach people at the top of their game for help. If they can’t [help], they may know someone who can.”

It wasn’t always a success, she recalls, citing her ideas for sushi ice cream and ice cream gift packs that cost her more than $500,000 in R&D and marketing before she dropped them.

Diane ended with a Theodore Roosevelt quote that inspires her, having seen it first when representing New Zealand at an international entrepreneur awards event in Monte Carlo (also providing the title for her book): “It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood…”

*

WIN *

a copy of Diane Foreman’s book In the Arena

Diane has kindly donated three copies of her book as prizes for the best answers to the question: What’s the most important lesson for a female entrepreneur?

Email your entry to pauld@newsaplenty.co.nz by 18 December – the winners will have the book to read over the summer.

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At YRW our reputation for excellence is combined with friendly, accessible service. We look forward to helping your business prosper.

Young Read Woudberg Limited 13 McLean Street, Tauranga 3110 P 07 578 0069 F 07 578 8725 E accountants@yrw.co.nz W www.yrw.co.nz

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The team at Talent ID are strong advocates of the region and all that is on offer. A regional focus with a national reach – we assist both employers and candidates in finding that essential ‘balance’ within their team, career and life. Dealing with quality clients and an array of diverse roles, candidates will not only find a career they’ll love, but they can also enjoy a balanced lifestyle with family, sport or leisure activities.

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Providing a knowledgeable and personalised employment solutions – you won’t be disappointed you partnered with Talent ID. Temporary & Contract Staff Permanent Recruitment Solutions Skill & Psychometric Assessments Redundancy & Outplacement Interview Coaching & facilitation Human Resource Consulting

Olivia Burman - BBs, HR & ER - employment@talentid.co.nz Kellie Hamlett - Director - Dip. HR - kellie@talentid.co.nz

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TAXING THINGS YOU NEED TO KNOW Changes to property tax rules As you’ve probably heard, changes to the taxation rules for the sale of residential property came into effect as of 1 October 2015. The main change is that income tax will now be payable on the sale of residential property where the property has been purchased and sold within a two-year “bright-line” period.

What is residential property?

Family Trusts

Will the changes affect you?

For the purpose of this taxation, residential property will be defined as: • Land with an existing home • Land with an agreement in place to build a home • Land upon which a home can be built.

In respect of residential property owned by a family trust, a trust beneficiary needs to be a resident in the property to be sold to allow the trust to claim the main home exemption. However, if the settlor of the trust has another property that qualifies as the settlor’s main home, the family trust cannot have a main home for the purpose of the exemption.

For the typical sale of a family home, the new rules will not have a noticeable effect. However, land-rich trusts and individuals who regularly purchase and sell residential property within two years will need to consider their timeframes. IRD numbers will now be required in many residential property transactions, including those owned by trusts and overseas individuals.

Exemptions There are a number of exemptions under the new rules. Income tax upon sale is not payable where the residential property: • Includes the main home (if a vendor has more than one home, the main home will be the home the vendor has the greatest connection with) • Is inherited or is transferred pursuant to a relationship property agreement • Is transferred as part of a mortgagee sale • Is transferred by the executor or administrator of a deceased person’s estate • Is transferred on behalf of a tax exempt public or local authority.

Why were these changes needed?

The changes are part of the Government’s attempt to cool the Auckland housing market. Also, the existing tax rules applied to property speculators has been largely ineffective. Before the introduction of the new rules the IRD had the almost impossible task of proving that a property had been purchased with the intention of re-sale. The new rules give the IRD an objective measure to assess whether income tax should be payable on the gains from the sale of residential property.

So, that’s the short version, but, as expected, there’s a bit more to it. If you’d like help navigating the new rules or advice on your current transactions, give the Property & Development Team at Cooney Lees Morgan a call on 07 578 2099.

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CBD TO BE STREETS AHEAD Getting creative to enliven city centre

Tauranga City Council (TCC) and Mainstreet Tauranga are working on a series of initiatives designed to add excitement to the city centre in the short term, while bigger changes are afoot.

Aware that change takes time, the two organisations have teamed up with a range of local business people and entrepreneurs to create a series of complementary wins ahead of the grand flourishes to come.

Recent examples include the new Wharf Street Dining Precinct, the Hairy Maclary sculptures and the waterfront playground. Plans are now well advanced for a Willow Street Precinct and a pop-up park in Devonport Rd. Longer term, city councillors will soon make a decision on the future of the current council administration building, with demolition included as one of the options.

The private-sector Civic Amenities Group is suggesting a new administration building alongside Baycourt, freeing up the current site for public space and visual linkages between Wharepai Domain and the waterfront.

Morgan Jones, Project Leader with TCC’s City Transformation Team, is working with various groups to create more

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BY PAUL DYKES

reasons for people to come into the city centre.

partnerships with people who share a passion for the city.

“We must be as proactive as possible,” says Morgan, “and work with the private sector to leverage our assets.”

As part of the planning of the CBD campus and Civic Centre building, Council has engaged international architectural and design firm Warren & Mahoney to support and inform the design-making on the project. While the work still has some way to run, John Coop, Chairman, Principal and Executive Director of Warren & Mahoney, sees the project as providing a significant opportunity for Tauranga.

To this end, two vacant buildings on Devonport Rd that contain asbestos and are seismically challenged are being demolished to provide extra car parking in the city centre, along with a range of other temporary benefits until the site is eventually redeveloped.

“As well as providing a visual pedestrian link to the stairs down to Harbourside restaurant, The Strand extension (waterfront) and the Matapihi Rail Bridge, a pop-up park is being installed as a fun and creative space for the city centre.”

He says the strip under the structural beams of an adjoining building will be covered in artificial grass and relocatable furniture designed and built by a local designer and manufacturer.

“Again, it will be different to that of our typical street furniture and will provide a space to rest and enjoy the city centre, in a space that is engaging and creative.

We see it as an opportunity to engage and work collaboratively with Creative Tauranga and Downtown Tauranga and their members.”

Morgan says all of this is being achieved within a small budget and in

“It’s very exciting. I think the ingredients are absolutely here in the centre of Tauranga. There’s alignment between the economic cycle, fresh leadership and the history and heritage that together means that there is truly a once-in-alifetime opportunity for a new vision to be created for Tauranga’s centre.

“There’s a strong desire for the centre of Tauranga to be much more successful and magnetic than it is at the moment.

Our task is to help Tauranga to create that vision.

“Partnership and collaboration is going to be a very important part of this. If we’re not thinking innovatively, then the built form that results won’t be innovative.

The whole centre is a destination.”

A similar approach is underway for vacant buildings in Willow St, from Spring St along past the Council’s offices. One of

THE RISE OF THE CREATIVE CLASS REVISITED In this revision to his international best-seller The Rise of the Creative Class, Richard Florida proposes a dramatic new social compact for our time – one that can turn our emerging Creative Economy into an enduringly Creative Society.

Quick gains will start the ball rolling

the larger sites at 117 Willow St could be turned into smaller retail and creativespace tenancies to help transform the strip into a creative precinct.

She says the pop-up, short-term approach will be followed in the medium to long term by changes to the Council’s civic administration area.

Scott McKenzie from Property Managers is part of the team investigating options for the strip. His company represents the owners of the vacant, former Wright Sports building.

In backing the plans, TCC CEO Garry Poole mentions the writings of Richard Florida (The Rise of the Creative Class, and Cities and the Creative Class). Florida identifies three main prerequisites for cities to attract the creative class. They must possess Talent (a highly talented, educated, skilled population), Tolerance (a diverse community that has a “live and let live” ethos), and Technology (the technological infrastructure necessary to fuel an entrepreneurial culture), according to a Wikipedia summary.

“The Willow St Project is an idea to try to bring the occupiers, owners and stakeholders together to inject some energy into Willow St,” says Scott.

“We want to encourage any development that will increase foot traffic in the downtown area. One idea is to subdivide our building into smaller spaces to meet tenants’ future needs. We have talked about smaller spaces being used by creative businesses and craftspeople, but we must also maintain commercial viability.

Another participant in the debate, Sally Cooke from Mainstreet Tauranga, says the creative precinct concept is being planned as a pleasant, ambient space, with creative displays and transformation on the street.

“The aim is to build up foot traffic and the number of tenancies available. We are looking at the aesthetics – the way the area can interact with the public – to make it a more desirable space from the tenants’ perspective.”

“Creative workers are looking for cultural, social, and technological climates in which they feel they can best ‘be themselves’,” says Garry. ”The reality is that the central business district (CBD) plays a vital role in a vibrant city. Every city needs a heart and soul. In my view, it’s best if the soul and heart of the city is the CBD.” “We have a number of great initiatives underway in the city centre,” adds Morgan, “and an interested and engaged community with aspirations for a city centre with more – better spaces, more jobs, learning opportunities, and generally a healthy and thriving city centre with much to offer.”

He brings all of its statistics up to date (and provides new ones), further refining his occupational, demographic, psychological, and economic profile of the Creative Class, incorporating a decade’s worth of his own and his colleagues’ quantitative and qualitative research.

New chapters cover the global effects of the Creative Class and explore the integral features and factors that shape “quality of place” in our rapidly changing cities and suburbs. Richard delves into the roles played by technology, race, and poverty in perpetuating and exacerbating income inequality and the pervasive influence of class throughout every aspect of society.

We are in that strange interregnum when the old order has collapsed and the new order is not yet born, he writes.

The old order has failed; attempts to bail it out, to breathe new life into it or to somehow prop it back up are doomed to history’s dustbin. The key is not to limit or reverse the gains that the Creative Class has made, but to extend them across the board, to build a more open, more diverse, more inclusive Creative Society that can more fully harness its members’ – all of its members’ – capacities.

Source: Adapted from www. creativeclass.com/ richard_florida

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Cate Hlavac Williams and Ian Skelton

CALLAGHAN TARGETS THE BAY Innovation funder ramps up presence Government funding agency Callaghan Innovation is increasing its presence in the Bay – a move that is likely to see increased research and development (R&D), and local businesses getting their new products to the market more quickly.

Callaghan is keen to engage more widely in the regions and has selected Tauranga as the first regional base for a pilot programme. The R&D funding agency already has offices in Wellington, Christchurch and Auckland, and historically operates through the Regional Business Partners Network. This is managed by the Tauranga Chamber of Commerce in Tauranga and Waikato Innovation Park in Hamilton.

“There is an appetite in the Bay for learning and sharing knowledge,’’ says Ian Skelton, who will join the team of Peter Maxwell and Cate Hlavac Williams.

“We want to encourage the larger companies with established R&D

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programmes to do more – and to look at Growth Grants. If they spend more, then they can get their innovation to market quicker and they can employ people to help them get there,’’ he says.

Callaghan invests 20% in a company’s R&D project over three years, with a twoyear extension available, but subject to the company having met annual review requirements. The annual investment is capped at $5 million – a company can therefore receive support for launching into a $25 million R&D project.

“This support can make a huge difference,’’ says Ian. Companies must have spent at least $300,000, or 1.5% of their revenue, on R&D in each of the past two years to be eligible for the Growth Grant.

Callaghan, which wants to accelerate the commercialisation of new ideas, also provides Getting Started, Project and Students Grants – many of these have been taken up by local businesses.

In less than three years since Callaghan was established, $7.7m has been approved in the Bay of Plenty – including four Growth Grants.

Cate, based in the Chapel St Smart Business Centre, is the first point of contact in Tauranga for all enquiries relating to Callaghan, and with Peter and Ian will continue to visit local companies and host workshops and functions in the Bay. The events planned include an introduction to Callaghan so local businesses will be better informed about the services on offer, and how they can engage and take advantage of the high-quality innovation system in New Zealand.

As well as providing grants, Callaghan has a team of scientists, engineers, researchers, entrepreneurs, administrators and advisors ready to help businesses.

GETTING ART OUT AND ABOUT

BY MONIQUE BALVERT-O’CONNOR

New venues to view art Karl Chitham is keen for more people to come to his workplace to experience art, and he has a clear direction about how this can happen.

where appropriate, exhibitions and events may spill out of the building. There are projects that could be in public spaces, for example Masonic Park’s green space

Tauranga Art Gallery’s new director acknowledges great things have been achieved by the gallery’s previous directors and his plans do not involve any wheel reinvention.

“It’s about outreach. We want to be responsive and engaging with our community. They can’t always be expected to come to us.

“We want to provide opportunities for all visitors to have exceptional art experiences. Some different things can be expected,” Karl says.

At this stage, his plans fit into seven categories.

1. The gallery will introduce more partnerships and collaborative arrangements with other organisations. This will cover a broad spectrum including community groups, iwi, and agencies – it will not be solely about art organisations.

“It’s another method for us to get our programme out to a broader demographic,” Karl says.

Collaborations and partnerships already underway, for example, involve another art organisation named Objectspace. Plus, the gallery is hoping to work in partnership with Baycourt to devise a programme incorporating more boutiquetype performances across both venues.

2. Karl and his team are keen to see the gallery respond more to diverse communities. “We want to broaden the types of projects that we show and are keen to get new Maori audiences into the gallery, and other groups too.” During November Tungaru – an exhibition with a Kiribati connection – is being held, in recognition of Tauranga’s Kiribati community.

3. There are plans to spill the gallery’s offerings beyond the confines of its walls. Karl says,

“People have recently been very excited about the Tauranga Arts Festival. We want to have a part to play in extending that excitement and are talking to the Arts Festival organisers about this. We have a couple of projects in mind for the Arts Festival next time, and one of those would be an external offering,” Karl says.

4. In October the gallery launched a video programme in its foyer. The idea was to encourage people walking past the gallery to come in and have a look, Karl says. “It’s another exhibition extension on top of the five gallery spaces we already operate. The foyer has been used in the past, but not for video work, so this marks a change for us.”

Karl says. “Visibility is incredibly important to us. There is a lot going on in Tauranga and we want people to know what we are doing. We will be working hard on social media, and using the local press too, to get our messages out.”

7. The gallery’s website will be redeveloped, but Karl emphasises this will not involve any rebranding. “We want to make it more responsive so people can do as much as possible on the website, such as booking events, being involved in workshops online, signing up to Friends of the Gallery, or inquiring about venue hire, for example.”

Karl started at the gallery in July and says it has been a whirlwind of a time.

“Part of the reason for that is because it has been so exciting – both for myself, and the team – as we head in this new direction.”

5. Karl also has plans to extend the gallery’s education programmes to include preschools and tertiary institutes.

The programmes are already hugely popular with primary and secondary schools.

6. The gallery’s quarterly brochure has been reinstated. The brochure was put to rest for a number of years, but will again be distributed around the city and mailed out. The public can sign up for it through the gallery website, and a pdf version, which can be emailed out, is being planned.

“People are always asking us to advise what is coming up, and this is a tool for providing that information about exhibitions, events, workshops and education programmes, for example,”

Karl Chitham Image courtesy of the BOP Times

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Courtney and Matthew Linnecar with baby Noah

MIGRANTS INJECT VIBRANCY

BY MONIQUE BALVERT-O’CONNOR

Creative aspects add to mix Courtney and Matthew Linnecar are amongst the mass of young, recent migrants injecting vibrancy into Tauranga’s business world.

Moreover, Courtney is about to launch a business that will ensure those new and prospective immigrants – as well as our locals – find it easy to feel a sense of connectedness.

Happylocal is an app she has developed to connect people in the community around work, leisure and microvolunteering (bite-sized volunteering opportunities). It will be launched soon, with its traction noted over summer.

“My Happylocal app will be a community engagement tool. It’s about connecting people through experiences. One of the many groups of people it would benefit are people new to the area or thinking of moving here,” says Courtney, who has settled in Omokoroa.

“People thinking of coming to Tauranga, for example, can fill in their skills, interests and causes and discover what, among those preferences, is available in Tauranga, and who to get in touch with.

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“It will help them imagine their life here, and give them knowledge as regards who to get connected with.”

Her aim is for Happylocal to become a one-stop shop for everything going on in the Bay. Organisations and businesses offering experiences will have the opportunity to be on Happylocal, she says.

Kiwi-born Courtney, and her British husband, moved to the Bay late last year, in time to ensure their first child would be born a Kiwi.

Courtney’s return to New Zealand followed time spent fine-tuning her linguistic skills in Germany and Madrid, before eight years in England where her career path deviated from languages to social enterprise.

England was planned as a short-stay option, but meeting Matthew delayed her departure date. Matthew was in the throes of establishing his business.

He now co-runs that London-based business from the Bay of Plenty.

The business, called Gnewt Cargo, is the world’s largest green logistics company.

Gnewt’s core business is the delivery of e-commerce parcels – such as ASOS and Amazon deliveries – using electric vehicles and cargo cycles (three-wheeled vehicles that are a cross between a bike and van, with electric motor and large cargo back area). Gnewt owns a fleet of 120 operating in London, and is expanding to other UK cities.

Working either from home, from a coworking space at Basestation or from the Tauranga City library, Matthew deals with the commercial and strategic sides to the business, while his London-based partner focuses on the operational aspects.

Neither Courtney nor Matthew had been to Tauranga before moving here.

It has exceeded their expectations, especially in regard to lifestyle, business connections, and welcoming community.

Priority One Projects Manager Annie Hill says Courtney and Matthew’s case study is a fine example of what an increasingly vibrant city can attract in the IT sector and how Tauranga is a good base from which to operate a remotely run business.

FESTIVALS FEED A CREATIVE ECONOMY

BY KATHRYN LELLMAN*

Providing a cultural heart Arboria Luminarium

As I write this, we are in the middle of the biennial Tauranga Arts Festival and the world has come to Tauranga.

On Labour Day alone more than 600 people enjoyed Tami Neilson, a soulful Canadian country singer based in New Zealand and winner of the 2014 Silver Scroll Award for song writing; the NZ Trio playing a beautiful programme of pieces from New Zealand and Brazilian composers; and Motu: Oileain, a collaboration of Trinity Roots with four of Ireland’s best-known traditional musicians.

In addition, 8000 children and families experienced the world of Arboria, a giant inflatable luminarium sculpture holding light and air, which graced the Tauranga waterfront for two weeks.

Not only did this creative event bring vibrancy to our city, it brought economic benefit. After each festival the Tauranga Arts Festival team conducts detailed surveys of ticket buyers, who are questioned as to how much they spent at the festival, including accommodation, transport, parking, shopping, food and drink.

In 2013 the average spend for locals was $230 and nearly twice that for out-of-towners. With 11,000 ticket buyers, the average spend totalled about $2.8m. In addition, the festival

spends about two-thirds of its $1.2m budget locally on expenses such as venue hire, advertising, salaries, printing, accommodation and transport. On that basis, the Tauranga Arts Festival Trust confidently believes that the 2015 festival will inject more than $3m into our local economy.

In a PWC report in 2014, creative industries (including books, music, film and television), were found to add $3.5bn to our GDP (gross domestic product). This is similar in size to the forestry sector’s contribution. The creative sector supports full-time employment of 30,000 people. Our local numbers reinforce that a creative industry is contributing real economic value, both regionally and nationally.

the city they live in will feed not only their families and outdoor recreation pursuits, but also their cultural hearts.

Creating a liveable city is an important role for our local government and events cannot bring economic and social benefits without the support of councils and sponsors. This needs to be seen as an investment that brings short- and long-term value to our community, showcasing Tauranga and growing community pride. *Kathryn Lellman is Chair BWN and trustee and sponsor of the Tauranga Arts Festival

In addition, creative events have an important social value. They bring communities together, they broaden our horizons and give a chance for our region to experience the world in our own back yard. They add to our local identity, draw people to the city centre to share experiences and fun and are celebratory in nature.

The exposure gained through festivals creates audiences for our city’s venues year round, increases the satisfaction of those who live in the area and increases interest in social and cultural events.

People moving from larger cities or overseas have an expectation that

Kathryn Lellman

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WESTPAC BUSINESS OF THE YEAR 2015

Fulton Hogan won the supreme award, the Westpac Business of the Year 2015, and four other category awards. Celebrating their success with the big prize is Gavin Riddle (holding trophy) and his team

Fulton Hogan has been named Westpac Business of the Year 2015.

of health and safety through their workplace, this company is exemplary.

head and AIMS Games catalyst Brian Diver, QSM.

With more than 80 years’ experience in the transport, water, energy, mining and land development infrastructure in New Zealand, Australia and the South Pacific, the judges said Fulton Hogan stood out as the Westpac Tauranga Business of the Year because of its leading-edge approach to running a business.

“Gavin Riddle, and your team at Fulton Hogan, you are a well-deserved winner of the Westpac Tauranga Business of the Year.”

As AIMS Games chairman since 2004, Brian has overseen the event’s growth into a nationwide, elite sporting and domestic tourism experience, attracting more than 8,000 athletes, making it larger than the Commonwealth Games.

“The Tauranga office has become the group’s leader in many areas. Through their customer service, both externally and internally, their embedded sustainability practices, and high level

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The national firm dominated proceedings at the gala event on 20 November, also winning Westpac awards for Sustainability, Manufacturing &/ or Logistics, Customer Service and for Workplace Safety.

The Westpac Business Leadership Award was bestowed on Tauranga Intermediate

The 2014 event injected nearly $2m into the city’s economy, generated 37,500 visitor nights, and contributed $1.52m to western Bay of Plenty’s GDP – a 607% return on regional investment.

And the winners are Retail &/or Service Excellence Rodney Wayne Bethlehem Sustainability Fulton Hogan Manufacturing &/or Logistics Fulton Hogan Small Business Bay SportsMed Community Organisation Tauranga Returned and Services Assn Customer Service Award Fulton Hogan Workplace Safety Award Fulton Hogan Brand, Marketing and Design D&B Construction (Highly commended) Brian Diver was awarded the Westpac Business Leader of the Year award in recognition of his years of work creating and expanded the AIMS Games schools event. He received his trophy from Dave Courtney of Zespri

Innovation Land & Sea Drilling Consultants Excellence in Business Leadership Award Brian Diver Corporate Leadership Award Trustpower Westpac Business of the Year Fulton Hogan

Colin Hindson of Land & Sea Drilling Ltd won the Westpac Innovation award.

Kaye Rogers of United Travel made the presentation

Lyn Walker, Westpac’s Commercial Manager, Central North Island, presents the supreme award to Gavin Riddle from Fulton Hogan

Bay Sportmed’s Westpac Small Business award is held by Patrick Wigley and was presented by Adam Hopkinson from Cooney Lees Morgan

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ADVERTORIAL

DIRECTOR CHARGED WITH MANSLAUGHTER AFTER WORK ACCIDENT

BY PAUL DYKES

WorkSafe aims for the top A senior Tauranga lawyer specialising in Work Safety litigation is warning company directors that they face an increasing risk of personal prosecution, including being charged with manslaughter or other criminal offences, for workplace accidents.

case is then run through the Court by the Crown prosecutors in what has up until then been an employmentrelated issue.

Ken Patterson has practiced in Tauranga for the past eight years, following 16 years with a major law firm in Auckland.

“Many companies have insurance, but most policies deny cover in circumstances where there is an intent or knowledge element, as set out in Section 49 of the Act.”

Recently he was part of the two-man defence team, with Jonathan Temm, barrister of Rotorua, who successfully defended a company director charged with manslaughter and related charges under the Health & Safety in Employment Act 1992 (the Act) following the death of a forestry worker.

The high-profile, three-week High Court trial in Palmerston North, involved a prosecution by the Crown and WorkSafe New Zealand on charges relating to the breach of the Act and manslaughter.

“This has become a common theme,” Ken warns. “WorkSafe lays charges against the company for failing to take all practical steps under Section 49 or 50 and further charges against the directors for participating in that failure. The Police then lay criminal charges, which may include manslaughter, and the whole

“This raises significant risk for directors everywhere.

Ken also says the Health & Safety legislation is changing next year.

Currently, charges under Section 50 “failing to take all practical steps” are almost impossible to defend, he suggests. That position is significantly altered under the new Safety and Health Act, which comes into effect on 1 April 2016.

“Ensure all your hazard assessment and identification documentation is scrupulously correct and that employees are fully informed of all safety issues on site.”

Be safe or be prosecuted is the new norm. There is a concerted Government initiative to reduce accidents, especially in occupations that are inherently dangerous, such as forestry, fishing and mining.

Many more prosecutions are likely to follow the new legislation.

Contact Ken on 021 957 547 or email ken@kjplaw.org.nz

“This new legislation is more penetrating in terms of exposure of directors. It is lifting the corporate veil.”

Ken says reparation payment between $75,000 and $100,000 have been significant factors in sentencing in recent cases – in addition to fines and potential custodial sentences.

“Treat your Health & Safety obligations with absolute respect,” says Ken. Ken Patterson

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SPONSOR’S PAGE

ECONOMY HOLDING UP, FOR NOW Significant shot in the arm wanted Through mid-2015 some of the wind came out of the economy’s sails, with annual gross domestic product (GDP) growth slowing to a tepid 2.3%.

Combined with low inflation, this prompted the Reserve Bank (RBNZ) to cut the Official Cash Rate (OCR) to 2.75%. We expect the RBNZ will need to continue cutting the OCR, but there is a question about how quickly this will occur.

Recently, we’ve seen improvements in a number of key economic indicators.

Gauges of activity in the manufacturing and service sectors have ticked up.

Migration has reached a record high.

And the housing market has remained firm.

On top of these developments, it now appears that export earnings in the

Up to

dairying sector won’t be as large a drag on the economy as feared. Dairy prices have rebounded, rising by 63% in the past four auctions (albeit from very low levels). This has been sparked in large part by Fonterra’s predictions that its milk collection will be down 5% on last season.

In response, Fonterra has upgraded its forecast milk price for the current season from $3.85 to $4.60 per kilo of milk solids. And based on current prices, we expect that the payout for the current season will be even higher – we’re forecasting a payout of $5.30 per kilo.

Adding to the uncertainty around the outlook for the dairying sector is the risk of drought. Although drought conditions would boost prices for dairy, the related reduction in production could put a serious dent in GDP in early 2016. And

of course, drought would also imply tough conditions in other parts of the agricultural sector.

Given the improvement in recent economic indicators, the RBNZ has a bit of time up its sleeve before it needs to cut rates again. Nevertheless, it’s likely that the RBNZ will need to continue cutting the OCR over the coming months.

The economy is facing significant headwinds from sluggish global trade, the levelling off of the Canterbury rebuild, and sharp declines in consumer and business confidence. This will make it tough for the RBNZ to achieve its longer-term inflation goals.

It’s likely that the economy will need a significant shot in the arm in the form of lower interest rates if the RBNZ wants to generate a sustained lift in inflation.

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YOUNG EMPLOYEE AIMS TO SUCCEED

BY MONIQUE BALVERT-O’CONNOR

Award winner has global plans Tauranga Chamber of Commerce and Priority One organisation Rocket Young Professionals held its annual ball and awards night in October to bestow three top awards.

One of those – the Holland Beckett Young Employee of the Year – was won

by Michael Carruthers, a campaign manager at Trustpower.

The judging panel expressed admiration for how Michael, aged 28, had shown strong leadership and initiative from early on in his career at Trustpower.

Michael came to Trustpower as a Graduate Reconciliation Analyst in 2009, after completing a Bachelor of Applied Science (Hons 1st class) in Energy Management degree at the University of Otago. He moved from that position to Graduate Marketing Analyst, then Sales and Marketing Analyst.

He became Campaign Manager in May 2013, a role in which he is fully responsible for operational planning, execution and management of all Trustpower retail campaigns.

He has responsibility for 25 staff and manages relationships with internal and outsourced sales teams that have a combined headcount of more than 150 sales representatives.

Trustpower’s General Manager Commercial Operations, Chris O’Hara, says Michael has excelled in his Campaign Manager’s role, and can take a large portion of credit for Trustpower’s success and growth over the past two years.

He says Michael is highly regarded within Trustpower, recognised for his significant leadership potential. In 2012 he was selected by Trustpower as a sponsored attendee of Rotary Youth Leadership Awards programme; and in 2014 he was selected to participate in Trustpower’s Leading our Futures Leadership Development Programme.

He has been a member of the Trustpower retail business’s leadership team with its focus on defining the vision, purpose and strategic focus for the next 10 years.

He was also a key member of the team responsible for Trustpower winning the Consumer NZ Energy Retailer of

the Year at the 2015 Deloitte Energy Excellence Awards. Furthermore, he has been recognised for his outstanding work ethic and results by being included on Trustpower’s Management Incentive Programme (he is the only manager at his level to be included).

Michael says winning the Young Professional title was a chance to get recognition for the hard work that has been going on at Trustpower.

“I am incredibly committed to producing outstanding results for Trustpower, as well as for myself,” he says.

He has plans to move to Europe within the next 12 months. That international exposure will assist, he believes, in his aim to achieve a senior leadership position in a company of his choice by the age of 35.

The Young Business Owner category was won by D&B Construction, while director and physiotherapist Andrea Buchanan of Physiotherapy Innovation took out the Young Innovator of the Year category.

Michael Carruthers, a campaign manager at Trustpower

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CITIZENS’ INITIATIVE TO MAKE CHANGE Council asked to get on board The Civic Amenities Group (CAG), founded and chaired by Tauranga businessman Paul Adams, got the city buzzing in late September when it unveiled an ambitious project to revamp the central city.

The group briefed elected members and key officials of the Tauranga City Council (TCC) on its development proposal, which is centred on a new Civic Centre building, funded by a $35m community bond, on the site of the now-empty civic administration building. The proposal also included plans for developing a museum and an inner-city stadium.

“I think the elected members understand the high-level proposal CAG has presented, and we look forward to being invited to present a more formal, detailed proposal on how the Civic Centre project can be funded and constructed, in collaboration with elected members and council management,” says Paul.

number of the city’s leading business people and includes Dame Susan Devoy – possessed all of the skill sets required to pull the project together. They had been involved in funding, financial management, commercial building and project management, with a combined experience adding up to several hundred years, he said.

He said he was keen to see an early decision, adding that the CAG did not need to be involved if elected members could come up with a better model and outcome.

“The offer to elected members is to provide all of this local skill set to the Tauranga community, without a development margin, to ensure the cost of building, finance and rent is kept very competitive for the community. It should be a relatively simple decision-making process by the elected members.”

However, he noted that the CAG membership – which is made up of a

CAG members would arrange the funding for the bond. This approach would avoid the TCC having to encumber ratepayers with debt. Instead, community trusts and individuals would be able to invest in the ownership of the new Civic Centre via the bond.

The TCC would then lease back the new building at an estimated $3m annually, which would be similar to the cost of borrowing the funds to remediate, maintain and operate the existing buildings.

“TCC does not need to use ratepayers’ funds by way of borrowing – a better solution is for the council to be a tenant,” said Paul. “The funds saved will be better invested in other civic amenities that are presently lacking, such as a CBD stadium and a museum.”

The CAG proposal is under consideration by Council members, and at print time the CAG was still waiting for a formal reply to its proposal. CAG has decided to wait for a response from the TCC’s elected members before preparing a more detailed proposal.

Concept plan for proposed CBD Precinct with new TCC office block and civic centre Prepared for Paul Adams Carrus Group, for Civic Amenities Group By MCH Project Managers & Consulting Engineers and Stufkens and Chambers Architects

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MERGER PLAN HAS KEY GOAL Increased access across the region Much talk and media coverage has centred recently on what the recommended merger of Bay of Plenty Polytechnic and Waiariki Institute of Technology will mean for Tauranga and the Western Bay of Plenty, and also importantly the wider Bay of Plenty.

A key goal of the merger is to improve access and participation to tertiary education for all people of our region.

Of particular importance is ensuring better access to foundation and bridging programmes, which then link to pathways that strongly align with our regional skill needs, using institutional partnerships, particularly the Bay of Plenty Tertiary Education Partnership.

The combined resources of the two existing institutions will be used more effectively and allow greater reinvestment into provision and related services to achieve the desired regional

outcomes, particularly for Māori, industry and community.

The new combined entity will provide a single point of contact for vocational and professional ITP (Institutes of Technology and Polytechnics) provision in the wider Bay of Plenty. Boundary issues between the existing institutions will disappear.

An important intention is that the new combined entity will critically examine how iwi and key stakeholders can best contribute to the success of the new institution. Iwi and other key stakeholders will be consulted on how they see the shape of the new entity and how they want to engage and influence the new entity in its role.

The new entity will view these relationships as empowered partnerships because regional provision of tertiary education is not merely the responsibility of the tertiary education institution. It is strengthened through active and empowered partnerships with its stakeholders.

The region is endowed with a number of distinctive strengths and characteristics and the new combined entity will enable more effective development plans for “centres of expertise” in many of our key strategic areas already identified in the Bay of Connections Strategy document, e.g. forestry, transport and logistics, primary production, tourism and aquaculture.

The future of the new combined entity will be built crucially around the critical growth and development of the two campuses in Tauranga and Rotorua and existing and potentially future new smaller regional campuses under a developed Regional Outreach Strategy.

It is anticipated that Steven Joyce, the Minister for Tertiary Education, Skills and Employment, will make a decision whether to approve the merger recommended by the two Councils soon.

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IGNITION WORKSPACE A LAUNCH PAD

BY PAUL DYKES

From home to outer space Heidi Seal has watched her company Bay Business Services grow from a desk at home into its own office premises, and she credits its success in part to the Ignition co-working experience.

She says moving into the co-working space in Rydal House on Grey St about three years ago enabled her to make the next step.

“I had been running a home office, with a part-time employee, for several years, mostly out-sourcing my services to accountants. I realised I was missing many of the things that Ignition provides, such as human contact, a dedicated workspace, and a professional environment in which I could meet clients.

“Moving from home provided a sense that my business was now a bit more ‘grown up’, and I feel being associated with Priority One through Ignition also added an element of credibility when pitching to prospective clients.”

She says Ignition provided the kind of physical location that enabled her to

present her business in the best possible manner. “It’s good to be part of it – there’s an energy here that is inspiring.”

Ignition is designed to help companies get lift-off, and it has worked splendidly for Bay Business Services – a certified Xero advisor and Xero Add-ons installer and trainer, specialising in bookkeeping and payroll support.

“Xero is such a flexible software platform.

Our tagline is we are helping people to love doing business in the cloud. We reduce stress and help them understand their business better.

“Our business has grown 60% a year for the past three years and we now have three staff members,” says Heidi.

However, the birth of her first child a year ago prompted her to reprioritise her life. She had grown fond of working with her clients, but was keen to step back a little to allow more time for parenting.

“I decided to see if I could sell the business, but stay on as an employee.”

New owner Helen Schafer heard about Heidi’s plans through Link Business

Helen Schafer and Heidi Seal in their new office

Brokers and after due diligence decided to buy the company. Helen and her husband own a financial services company and were looking for a complementary business.

Helen subsequently decided to relocate the expanding business, although she can see the value the Ignition boost gave to Bay Business Services.

“Had Heidi still been working from home, it would have had a different feel. The fact that she wanted to progress, to get out there, with increased professionalism appealed to me,” says Helen.

It was also helpful to the purchase that the company was not tied to a lease for office space, so Helen could shape it the way she wanted.

“We are looking forward to having our own identity and our signage on a building. We will now share common office facilities with Megan from Small Business Accounting on 12th Ave, so a lot of co-working elements will still apply.”

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OFFICE SPACE – THE NEW FRONTIER

BY PAUL DYKES

Sharing the experience The ways people work, and the workplaces they want, have evolved. The trend towards smaller, entrepreneurial start-ups is creating a parallel demand for co-shared office space.

Small companies prefer to work alongside others, rather than work from home or from an isolated office. They say co-share space creates a buzz that is not possible to reproduce on your own.

Taking the concept a step further, other companies that do work for each other are setting up alongside their clients in dedicated co-working spaces. It’s so much easier to work with people when they are literally alongside.

There is also an element of work/life balance at play, with small companies and sole traders keen to get more than a roof over their heads when they go into the office. They want a refreshing, invigorating work environment, and coshare has the potential to create this.

The trendsetter in Tauranga was Ignition, shared space set up by Priority One, the region’s economic development agency.

Most of the other spaces are smaller, with the exception of Basestation on Durham St, offering a very hi-tech, hispec environment. It houses companies working together, with communications and technology enabling the growth.

Ignition manager Susanne Irwin says Ignition suits business people whose operations are too small to warrant a stand-alone office, and those who do not want to lock themselves into a five-year lease. In addition, she says it makes a great landing pad for businesses that have relocated to Tauranga and need to start working straight away.

“Co-working is very much the future,” says Susanne. “It is widespread in the USA and Europe and there are some amazing spaces in Auckland.

“The emphasis is on co-working – more than just sharing space. Members work side by side with others who are often

at the same stage of their career. They form a community, compare notes, and give advice. We want to assist businesses to grow – until they outgrow us and are ready to move on into their own office space.”

Other co-share spaces Situated upstairs on Devonport Rd, Studio64 offers downtown character co-working space. It was established as a one-of-a-kind co-working, meeting and event space for anyone seeking a highly stimulating creative work playground.

6Tawa is a shared, co-working creative space in Tawa St, central Mt Maunganui.

Recently refurbished, it provides retaillevel space close to great cafes, all-day free parking and easy access.

At 332 Maunganui Rd, The Junction is in the heart of Agencyland. An advertising agency based in Mt Maunganui has set up a groovy, modern and creative shared space.

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CRUISE SHIPS ON WAVE OF SUCCESS Liners are getting larger After a slight drop last year, Tauranga’s cruise market is expecting strong growth for the 2015/16 season.

towards 100 cruise ship visits a year, and we are capable of taking them. However, growth is not dependent on the number of ships, but the total of people on the ships, because they are getting larger.”

Industry association Cruise New Zealand estimated the total economic impact on the country of cruise ship visits would grow from $365m in 2013/14 to $421.5m in 2014/15.

“It’s shaping up very positively,” said Tourism Bay of Plenty general manager Rhys Arrowsmith.

Next year’s visits will include the maiden voyage of the biggest cruise ship to visit Tauranga, the giant Ovation of the Seas. The Royal Caribbean vessel is 348 metres long, more than 50 metres high, and can host nearly 5,000 passengers and 1,500 crew members.

Rhys Arrowsmith said another benefit of the cruise ship visits was that they were a great opportunity for international visitors to dip their toes into discovering New Zealand. More than 25% of cruise ship passengers return to New Zealand within two years and take a self-drive or land-based tour, he said.

Tourism BOP’s forecast for 2015/16 is for 226,000 passengers and crew, compared with 206,000 in 2014/15, which was down slightly on the 211,000 that came through in the previous year.

The season normally runs from October through to April. Cruise ships are typically short stayers, in the city for around 10 -12 hours between tides.

And although four fewer ships are expected this year, there will still be more passengers and crew in port because of the increased size of visiting vessels, said Rhys.

“On the near horizon, we’re looking

Port of Tauranga chief executive Mark Cairns told the company’s annual general meeting last month that the dredging project now underway was not just to accommodate the bigger container ships.

“We consider facilitating the growth in cruise ship visits is very important in terms of the port’s licence to operate in the community,” said Mark, who noted the estimated $35m in cash spent over the past season by cruise ship visitors.

“And a huge number of visitors will repeat a cruise to the same destination, but upgrade their ship.”

Around 55% of visitors chose to spend their time within Tauranga, rather than taking tours in the wider region, he said.

“We see no reason why that won’t continue to grow.”

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ADVERTORIAL

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Owners Stu and Karina Hedges started the Rockgas delivery franchise in April 2012.

“When we first started out, we realised that in the competitive Tauranga market, we had to have a point of difference,” says Stu. A new business plan was put in place with the focus on “Locals looking after locals”, ensuring the business was offering the best value for money in the district.

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“Locally owned means our customers are dealing with someone who knows their street and can quickly expedite the delivery. This focus on customer service has seen a growth in business for us of about 30% year on year.”

Stu and Karina also established a 9kg filling “cash and carry” business from their base in Triton Ave in Mount Maunganui.

“We realised the potential for this type of operation, and it has been very successful for us. We have a regular customer base and our loyalty card programme helps people earn discounts.”

Being local also means thinking local.

Rockgas Tauranga has sponsored several

rugby clubs, cricket clubs and various community events.

“We recognise the need to be actively involved in our community and we offer financial support if we are able to. We also offer free LPG bottle refills for nonprofit organisations if they require them for fundraising.

“We have experienced volume growth of 85% – a success story to date. But with Tauranga growing so rapidly, we are looking to be a big part of the business community for a long time to come.”

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