Connect Magazine December 2014

Connect The Bay’s Online Business Magazine

December 2014

Latest Business News | Events | Opportunities

Tauranga Chamber Of Commerce | 1

In This Issue Connect DECEMBER 2014

Welcome to Connect Page ........ 3

Crombie Lockwood (NZ) Ltd DNZ Property Group Ltd Electionz.com Farmer Auto Village Ford Fulton Hogan Kale Print Lock-It Data Risk Management

2014 Westpac Tauranga Business Awards Page ......... 5

Business Leader Feature - Jen Scoular, New Zealand Avocado Page .......... 6

Mills Reef Winery Personnel Resources Port of Tauranga Sanford Ltd Sign Creations Ltd Tulloch Photography ZESPRI International Ltd

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Chamber of Commerce Tauranga Smart Business Centre 65 Chapel Street Tauranga 3110 Ph: (64) 7 577 9823 Tauranga Chamber Of Commerce | 2

Connect

Welcome to Connect We are now into the last month of 2014 with people thinking of Christmas and their annual holidays. Holidays provide the opportunity to spend quality time with your family and friends and recharge the batteries for the forthcoming year.

This year has been pretty interesting from an economic point of view. We’ve seen the introduction of loan to value ratios to cool the residential housing markets in Auckland and Christchurch. Record high net migration is also fueling rising house prices in these two cities. Fortunately in the Bay of Plenty we’re not seeing prices forge ahead as seen in these larger cities, meaning first home buyers are still able to enter the housing market. But we are starting to see more families moving to the Bay, not just because it’s an attractive place to live, but because of those lower housing costs. ANZ Chief Economist, Cameron Bagrie, was recently quoted as saying “You keep an eye on Bay of Plenty and Tauranga in the next 12 to 24 months because from a pure valuation perspective Tauranga is starting to look very attractive to Aucklanders”.

This means we will have a very attractive pool of talent to choose from as positions become available and higher salaries and wages are being offered.

The Reserve Bank has kept interest rates on hold at 3.5%, with most financial commentators predicting interest rates not rising until the third quarter of next year or early 2016. This will give

businesses confidence in making investment decisions next year. Assisting business confidence is our low inflation rate of 1% which is expected to remain low into next year.

Over the last 12 months, the Bay of Plenty has made some great progress on a number of fronts. The Tauranga Eastern Arterial link is progressing well, which will make travelling to Tauranga and the Mount a lot more efficient with journey times getting almost halved.

We’ve seen the announcement of an Innovation Hub, Brother International relocating from Wellington to Tauranga, Trustpower’s new CBD building commencing, cricket internationals at the new Bay Oval, large events such as the Aims Games and increased funding from Tauranga City Council into major events for the city.

On behalf of the Tauranga Chamber of Commerce, I would like to sincerely thank you for supporting the Chamber throughout this year.

Whether you’ve attended a networking event, a training seminar or used one of our business services, we would like to say thank you.

Don’t forget to enter the Chamber of Commerce Golf Tournament on Friday 5th December.

Have a great Christmas and a safe New Year.

Kind regards, Dave

The post-harvest kiwifruit industry is gearing up for increased volumes of G3 next season with a lot of capital expenditure going into packing and cool store facilities around the region.

The Tertiary Partnership will see more students remain in the Bay to study and, upon graduation, they will be able to secure jobs that align to the region’s industry needs.

As we leave 2014 and head into 2015 I can’t help thinking that next year will be a great year for the region. This year we’ve laid the foundation blocks and we can now capitalise on many of these initiatives, both in the short term and beyond.

iPhone 6 - what you need to know iPhone 6 isn’t simply bigger — it’s better in every way. Larger, yet dramatically thinner. More powerful, but remarkably power efficient. With a smooth metal surface that seamlessly meets the new Retina HD display.

It’s one continuous form where hardware and software function in perfect unison, creating a new generation of iPhone that’s better by any measure. Plus it is 4G capable on Vodafone’s 4G network now available across Tauranga.

For a comparison chart on 5C, 5S, 6 and 6 Plus iPhones click here

Tauranga Chamber Of Commerce | 3

Connect

Who are Kiwifruitz?

Kiwifruit Processing Company Ltd (Kiwifruitz) has been processing and supplying a range of high quality kiwifruit purees and kiwifruit by-products for more than 15 years. Kiwifruitz uses both green and gold kiwifruit to produce puree and by-products for the food, beverage and pharmaceutical industries.

In 2009 the company opened a new processing plant at Newnham Innovation Park in Te Puna and this has been recently followed by a seed extraction plant off site. Kiwifruitz was awarded the 2014 Westpac Business of the Year at the recent Westpac Tauranga Business Awards. As well as winning the coveted top prize, Kiwifruitz was awarded first place in the Manufacturing / Logistics category and

was also a finalist in the Business Innovation and Entrepreneurship category.

So what is next for Kiwifruitz? General Manager, Grant Jeffrey says “We will consolidate our position in the 15+ global markets that we supply. Right now our emphasis is on Japan. What is also exciting are the new opportunities that have arisen recently in both southern China and Egypt, we will chase these over the coming year. Of course we are still heavily focused on our goal of 100% fruit utilisation and we are getting very close to that now”.

NEW MEMBER PROFILE

Can you tell us about your business?

We are the only florist in downtown Tauranga and are here to provide beautiful flowers and arrangements. We also have lovely gifts to consider for your loved ones.

Can you tell us why you joined the Chamber?

Innovation Spotlight on the Bay

I wanted to be able to connect with businesses in the region and increase our profile. The Tauranga Chamber seemed the perfect avenue!

By Annie Hill, Priority One We’re starting to see a significant increase in entrepreneurial activity in the Bay of Plenty and we have a lot to be proud of. Recent triumphs that will significantly accelerate the growth of innovation include the new WNT Ventures high-tech incubator comprising Wharf42, Newnham Horticultural Innovation Park and the Titanium Industry Development Association, and the provision of $30 million in regional funding and land for the new tertiary and research campus in Tauranga’s city centre.

In recent months over $20 million in research funding has been announced to develop a titanium research platform to create high value exports and for a robotics project focusing on automation in the primary sector. In addition, the Coastal Marine Field Station, which positions the region as a major centre for marinebased research for pharmaceutical and agrichemical innovation, has trebled in size since 2012 and there has been considerable growth in the Bay of Plenty District Health Board’s Clinical School.

These initiatives are putting the region on the map as a place where innovation is happening, which means that other businesses also want to be based here.

This means more high value exports, more highly skilled, highly paid jobs and a more sustainable economy for all of us.

Tauranga Chamber Of Commerce | 4

Westpac Tauranga Business Awards 2014

By Anne Pankhurst, Tauranga Chamber of Commerce Friday 14th proved to be a lucky date for some great local businesses at the Westpac Tauranga Business Awards. Kiwifruitz was announced Westpac Business of the Year and also placed first in the Manufacturing and Logistics category.

Steven Saunders from GrowPlus was named Business Leader of the Year and Ballance AgriNutrients was awarded Corporate Leader for 2014. All of these businesses and people add enormously to the local economy. Interestingly, two of the award winners come from Newnham Innovation Park…maybe there is something in the water? Or is it the collection of exciting innovative businesses that stimulates even more innovation?

As the event organiser it is always exciting to watch the winners go on stage to accept their awards. They radiate pride, evident from their

Membership Competition Winner Congratulations to Sarah Tavendale, Operations Manager of Pelco NZ Ltd! Pelco renewed their membership with the Tauranga Chamber of Commerce and won the $500 Air New Zealand Travel Voucher. The competition is drawn every two months. Thank you kindly to our sponsor Air New Zealand.

body language through to their acceptance words about their business and team. It always strikes to the heart of how important a team is in creating the success of a business. This was particularly evident when Steve was announced Business Leader of the Year and more than 50 people got up on stage to support him and celebrate his award with a waiata.

It was a particularly poignant moment and one Steve will cherish.

In my opinion all awards entrants are ultimately winners; simply going through the awards process challenges the entrant to look closely at their business across a number of disciplines. While they may not necessarily take home a trophy on the night, their business will grow as a result of this process.

The Westpac Tauranga Awards are an exciting and humbling experience and I encourage any business to get involved!

2014 Westpac Tauranga Business Awards

Recognising local business achievements

By Jeff Stringer - A Judge of the Westpac Business Awards and Westpac Business Account Manager based in Tauranga The dust is settling, although the winners are no doubt still on a high. The Westpac Tauranga Business Awards are over for another year.

This year I was lucky enough to get an inside look at the process. As a member of the judges group I had the honour of reviewing a number of entries as well as visiting various entrants to discuss their applications in further detail and to observe their business in action. The standard of entries was high. The passion of the owners was obvious. Their desire to strive towards or maintain excellence in business was also evident.

The judging committee have a wealth of experience. Our number includes former Award winners, prominent local accountants, lawyers and other professional advisors, as well as subject matter experts in areas such as branding and sustainability. Our task is primarily to separate the good from the great, choosing category finalists and winners, but the real value comes in the form of feedback to all of the entrants. This will acknowledge the areas the business has got it right, encourage its initiatives to improve and provide constructive feedback where further opportunities exist to improve. I hope we see many of the businesses back again in the years to come, with just a

couple more years of striving towards excellence under their belts.

For me the theme of this year’s awards night was that innovation is coming to the fore locally.

Excellence is one thing, but couple that with real innovation and you can really drive positive outcomes. The excellent Newnham Park incubated and is home to this year’s supreme winner, Kiwfruitz, an international business adding real value to kiwifruit by-products. One of the Newnham’s founders, Steve Saunders, was honoured for excellence in business leadership. He is nationally recognised as a lightning rod for innovation. The innovation category itself was won by Rhondium, a dental consumable manufacturer based in Katikati.

It’s a start up of sorts but has been built to champion innovation across its operation.

Rhondium will benefit from many of the attributes that made Triodent one of the fastest growing and exciting businesses the region has seen. These are businesses and people that can bring about serious change in the region, through real innovation coupled with wider business excellence.

In my day job, I’m a relationship manager for business clients of Westpac. The Tauranga Business Awards are an ideal event for my

colleagues and I at Westpac to partner with.

Other than that most basic of functions; linking savers with borrowers, promoting and supporting excellence in business is one of the most important functions a bank can have.

It promotes a healthy business community, sustainability and wider prosperity.

My involvement with the process this year has strengthened my view that entry is a worthwhile exercise for all self respecting businesses. Next year's awards might be a long way off but it’s not too early to pull out that dusty business plan and start drafting your acceptance speech.

Jeff and Catherine Stringer at the awards.

Tauranga Chamber Of Commerce | 5

Business Leader Feature

Connect

Jen Scoular, New Zealand Avocado If you could have dinner with three influential people (dead or alive) who would they be?

As I’ve just had 9 days in China and every night bar one was a work dinner, I’d say, let’s have a fun dinner! Invite George Clooney, Jude Law, Liam Neeson and I’ll be there! I’m pretty sure a couple of my girl friends would join me. I’d be very happy to travel to Paris, New York or London for the dinner too. I’m not sure having dinner with a dead person would be much fun?

How do you deal with stress and pressure in your role?

Health is very important to me. That’s why I love working in the avocado industry; avocados are so amazingly good for you. Eat well, run a bit, do your sit ups and press-ups every day. I also have a very rural, untamed garden, I call my jungle, which provides a magnificent break from work life. I don’t think you can beat a fast climb or a run up the Mount either.

What is your next career challenge after this one?

Every day there are new challenges, some can be met quickly; others create new opportunity which needs consideration and evaluation.

There is so much more potential to explore and meet in the avocado industry, challenges just keep on coming so it’s not a matter of saying I can finish this challenge then move to another.

Saying that, Asia intrigues me and I do love a challenge.

What are you most proud of (in life/work generally)?

My greatest achievements are undoubtedly our two wonderful daughters, Rebecca and Molly. Workwise I am proud to have taken the road less travelled, having crossed careers and countries and succeeded in my goals.

Have your qualifications been important in your career?

Someone asked recently what experience and qualifications I needed for my current role and I said I needed to have done everything I have ever done to succeed in this role. My financial background, my supply chain experience, my diplomatic experience, my international experience, the ability to engage with people and to build relationships. I’ve been a highly competitive sports person and that drive and team work is important. Some of that you can learn specifically, a lot of that comes from learning through doing or learning from others who mentor or influence you. But never underestimate learning and never stop learning.

What is the best part about your job?

The variety. Just take my recent trip to China to seek market access for avocados. That meant lots of homework about China and business Tauranga Chamber Of Commerce | 6

etiquette there, the phytosanitary requirements, the official structures in place in China. I needed to build strong relationships across NZ Inc – MPI, NZTE, MFAT who are on the ground in China and can be hugely helpful in our bid and our export strategies. I prepared and gave a presentation on the NZ Avocado Industry at a seminar to 50 officials, we had one on one meetings with officials, we dined with potential customers in Shanghai, we mixed with other NZer’s from whom we can learn and with whom we can share information. We also chatted to Chinese importers of Mexican avocados to learn from them and with our counterparts in Australia. At the same time I was preparing our Board reports for the meeting next week, liaising with industry experts about the Australian market and preparing a presentation to give at the Japan/NZ Business Council meeting in Christchurch next week.

Where do you see Tauranga in the next 10 to 15 years?

Tauranga has so much to offer but has to recognise that it needs to change to do that.

I got upset at a recent district council meeting when the draft strategy was about building the region for the older generation. I’m sorry, we need to build Tauranga for the younger population or we won’t have a population! I would love to see a university campus here in two or three years time and I support strongly the real effort being made around that. We need to bring back vitality and that means people to central Tauranga during the day. Get over the cost of free parking. People have to be able to pop into town, without worrying about having 50c for the meter. Offer residential permits to allow more apartments to be built in the city. Vibrant cities need people living in them.

What’s the best bit of advice you have ever been given?

I was told by a lecturer at university to stop convincing myself I couldn’t do something.

It’s true, we hold back for fear of failure or sometimes because we are too lazy to give it a go, when in fact we can achieve so much more than we ever think we can. Take small steps, don’t take on the whole challenge at once. As my Chair said about getting our recent Primary Growth Partnership across the line, "the only way to eat an elephant is one bite at a time".

What advice would you give someone going into a leadership position for the first time?

It’s unlikely this is the first time you’ve been in a leadership role. Leadership happens in families, in school, with your friends and on the sportsfield. Listen and learn. Watch people’s reactions to what they hear and their reaction to what you say. My advice is about leadership

and life; be happy to be different, never accept average, and take a deep breath and as Nike says, ‘just do it’.

What do you feel a key element is to having a successful team environment?

Have a goal, a vision and a direction. Make sure that vision is clear, so everyone knows what their part is in helping the team get there.

And have some fun along the way too.

What did you want to be when you grew up?

An early ambition was to be a doctor and a missionary in India. Not quite sure where the missionary idea came from and although I love visiting India, I certainly wouldn’t want to be there without the ability to get back to a nice hotel every now and then, like every day.

If you could have a super power what would it be?

I’ve sort of already got one, its red hair!

No, I’d love to be able to change into other people, so I could be the queen for a day, or actually I would have liked to be Princess Diana for the day. Imagine knowing what it felt like to be the president or a sports-star or a movie star. I might not enjoy it, but it would do me good too, to really know how it feels to be a disadvantaged person.

Who has been the most influential person in your life?

My dad, Robin Scoular and my mum before she died. Dad still lives in the house in Matua where I grew up and set out his new ten year plan when he got to 80!

If you could have created anything in the world (i.e. invention, cure) what would it be?

A happiness pill, to be shared out amongst every one of us.

Other than your current position what would be your dream job?

Any role that enables me to set goals, achieve them and be rewarded and appreciated for that works for me. Being paid bucket loads of money for that would be even better.

13 Degrees Smarter in the Bay If you’re ready to move up the career ladder and have been thinking it’s time you got a degree, your opportunity has arrived - and you won’t even have to leave home!

More than a decade ago Bay of Plenty Polytechnic realised the value to our region of working with other tertiary institutions to provide degree pathways for students. Together we formed a relationship with the University of Waikato and more than ten years on, 13 different degrees are now taught across the Polytechnic’s two campuses, meaning study options are even more plentiful.

Offering a range of levels of study is important in order to provide learning opportunities for all of our community. Bridging or foundation level study is often an essential first step in the learning journey

at the end of two years with a recognised national qualification then go back to the degree option if they desire later on. Alternatively, they can complete the whole degree at the Polytechnic and enjoy the smaller class sizes and benefits of living in the Bay with the certainty that they’re being taught by some of the best educators in New Zealand.

The Polytechnic is a founding member of the Tertiary Education Partnership (Te Whare Wa-nanga o Awanuia-rangi, Bay of Plenty Polytechnic, University of Waikato and Waiariki Institute of Technology) which has provided fresh opportunities for learning in our region offering exciting degree and pathway options.

In 2014 the Polytechnic introduced two new degree programmes. The Bachelor of Sport and Recreation (in partnership with AUT) and the Bachelor of Creative Industries.

Partnership degree options available at the Polytechnic are:

The Bachelor of Creative Industries was developed alongside industry in order to directly meet their demands. They spoke and we listened – so this new degree ensures our graduates are work ready; they’re equipped with all of the skills they need to

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Bachelor of Financial Analysis (majors in Accounting or Finance) Bachelor of Humanities Bachelor of Management Studies (majors in Accounting, Marketing, Finance, Tourism, Public Relations or Strategic Management) Bachelor of Nursing Bachelor of Science in Computer Science with a Specialisation in Applied Computing Bachelor of Social Sciences (majors in Human Resource Management and Industrial Relations) Bachelor of Social Work Bachelor of Science (Biological Science) Bachelor of Teaching – Early Childhood Bachelor of Teaching – Primary Bachelor of Tourism.

Many of the Polytechnic’s other diploma programmes also pathway into degrees at other universities around New Zealand.

for a large number of learners, whether they’re someone who has been out of school for a number of years or if they’re someone who has recently left school with no formal achievements.

Many certificate and diploma programmes pathway on to degree level study – usually the first two years of a bachelor degree. These pathways benefit students in two ways. Firstly, they can leave study

be capable of communicating and collaborating to a high standard to provide amazing outcomes across a wide range of industries. The degree offers students three different majors: visual art, fashion or graphic design.

Other innovative new degree options are already in the pipeline and will be available across our campuses in 2016. Watch this space!

Check out the full range of study options available at Bay of Plenty Polytechnic by visiting boppoly.ac.nz.

Classes start from February 2015 and we’re enrolling now. Take that first step – you’ll never regret it!

Tips and Information for Commercial Leasing From a Tenant Perspective

By Matthew Billett - Associate, Property and Development Team, Cooney Lees Morgan One of the largest financial obligations, aside from payment of salary and wages for a business small, medium or large is rent and outgoings for leased premises.

If the terms of your lease are inadequate or you do not understand the obligations set out in a lease, this will impact your business profitability and potentially put your livelihood and business at risk.

The aim of this article is to provide some useful tips and information to business owners who are negotiating a lease of premises.

A standard form agreement?

“It is a standard form Agreement to Lease that everyone uses”.

A leasing agent may assure you that what you are being asked to sign is “a standard form”.

Although the Auckland District Law Society Agreement to Lease and Deed of Lease are commonly used for leasing of retail, commercial and industrial premises, there are a number of matters to be aware of and take advice from your solicitor on before signing.

A guarantee of the lease obligations

If your company or trading entity is to be the tenant under the lease, then the landlord may require or request that a personal guarantee is provided. A guarantor of a lease can be liable for all lease obligations instead of the tenant for the term of the lease. Depending on the bargaining position of the landlord and tenant it may be possible to negotiate a limit on liability for a guarantor, or negotiate a release of the guarantee

in the event of a business sale involving an assignment of the lease to a business purchaser.

Lease Assignment

In the event of a business sale, the tenant will generally assign the lease to the business purchaser. However, the tenant remains liable for the lease obligations for the remaining term of the lease, notwithstanding the fact that a new tenant is leasing the premises. It may be possible to negotiate with the landlord so that tenant liability ceases once the lease is assigned to a new tenant.

Seismic Ratings and Proposed Seismic Strengthening Works

If the premises you are leasing are older, or if you are concerned about potential earthquake risk, then it is useful to enquire regarding the seismic rating percentage for the building under the current New Building Standard (as determined under the Building Act 2004 and Regulations).

Also ask if the landlord is required by the relevant local authority (under the Building Act 2004) to carry out works on the building to bring the premises up to the current New Building Standard.

If the location of your premises is integral to the success of your business, do you want to have to relocate to alternative premises while seismic works are carried out?

Tenant Maintenance Obligations

Generally the tenant is liable for most repair and maintenance obligations for leased premises. A tenant’s obligations could extend to repainting the exterior of premises; removal of chattels; fixtures

Matt Billett Senior Solicitor

and fittings and reinstatement costs at the end of the lease; replacing glass breakages; painting the interior of the premises. However, a tenant will not be liable for costs of substantial replacement or improvement to the premises. If the tenant does not make provision for, or consider these costs upfront, they could be significantly out of pocket.

Cost of Outgoings

In addition to the payment of rent, the tenant will also pay all or part of the outgoings for the premises. The outgoings includes – rates; water rates; charges for utilities; rubbish collection and recycling fees; NZ Fire Service Charges; any insurance excess (not exceeding $2000); service contract fees for air-conditioning, lifts etc; costs for yard and car parking maintenance and repairs etc. The new form of the Auckland District Law Society Deed of Lease makes provision for the landlord to include an estimate of outgoings on a per annum basis. A tenant needs to ensure that the total cost of the premises including rent, GST and outgoings is budgeted for prior to signing a lease.

Summary

The message is take care when entering into a lease of business premises, there are many pitfalls and issues to watch out for. Always consult your lawyer before signing a lease.

Remember “the devil is in the detail” when leasing business premises.

Expertise & Experience Effective, timely and relevant legal advice for your business.

Cooney Lees Morgan has the expertise and experience to assist all types of businesses with their property requirements.

Matthew Billett is a property expert who can provide you with advice and guidance on all your property matters – commercial or residential.

Call Matthew for advice on 07 927 0577 or email him at mbillett@clmlaw.co.nz

www.clmlaw.co.nz

Tauranga Chamber Of Commerce | 8 CLM/Cha/11.2014

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22 2014 Westpac Tauranga Business Awards

1.Debi and Paul Bowker 2.Phil Julian, Rose Tondi, Rebecca & James Beale 3.Murray Denyer, Alan McFall, Anne Pankhurst, Lisa Denyer, Toni Palmer 4.Rebecca Cowle, Scott Bartlett, Melanie Rudkin 5.Sophie Hedley, Debbie & Glenn Dougal 6.Hope Lawson, Marty Hoffart, Kim Edwards 7.Andre Polidoro da Silveira, Courtney Buckland, Reine Rall, Laura Taylor, Lacoda Graeme 8.Jennifer & Nick Aleksich 9.Will & Hayley 10.Melissa Conrad & Richard Hale 11.BOP Polytechnic Community Organisation Award - David MacKenzie, Iris Dodkins (Tauranga Riding for the Disabled), Paul Chapman, Katharine Birks 12.Cooney Lees Morgan Small Business - Scott Bartlett, Melanie Rudkin, Rebecca Cowley – Bartlett Swim School 13.ACC Workplace Safety Award - John Meehan, Arbour Care 14.Tauranga Chamber of Commerce Business Innovation and Entrepreneurship Award - Simon McDonald – Rhondium 15.Wave Agency Brand, Marketing & Design Award - Marc Simard - PowerSmart Solar 16.TrustPower Customer Service Award - Annemarie Cambie & Andrew Targett - Elizabeth St Cafe & Larder 17.Corporate Leadership Award - Winner Mark Wynne – Ballance Agri-Nutrients 18.United Travel Corporate Retail &/or Service Excellence Award - Joe & Kylie Meehan - The Hairdressing Academy 19.Zespri Excellence in Business Leadership Award Winner Steve Saunders – GrowPlus 20.Manufacturing & Logistics Award KiwiFruitz - Grant Jeffrey, Tim Millar, Craig Jeffrey, Bevan Parker 21.Ballance Agri-Nutrients Sustainability Award - Hope Lawson, Kim Edwards & Marty Hoffart – EERST (Environment Education for Resource Sustainability Trust) 22.Westpac Supreme Winner - Business of the Year - KiwiFruitz

Transform your career, your future and your life The Postgraduate Diploma in Management Studies develops management skills, covers functional business areas, and applies learning to existing workplace situations.

This Postgraduate Diploma is offered right here in Tauranga and starts February 2015.

For more information and to enrol, go to www.exec.waikato.ac.nz or phone 0800 800 891.

0800 BOP POLY www.boppoly.ac.nz

0800 800 891 www.waikato.ac.nz

Where the world is going.

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