Port success sets region up for growth

The foundations for the growth and success of our regional economy are underway at Napier Port, with the operation posting record cargo volumes, delivering a strong financial result, and lodging an application for consent to build a new wharf.

A record 4.754 million tonnes of cargo crossed the port’s wharves in the year to 30 September 2017, up from 3.916 million tonnes in 2016. Container volumes grew 12% to a record 288,444 TEU. Log exports also hit a new high, with 1.63 million tonnes exported through Napier – a 35% increase on last year’s record.

After a large volume of scientific research and almost two years of pre-consultation with the community, Napier Port also reached a huge milestone in the development of its proposed wharf and dredging project when it lodged its resource consent application with Hawke’s Bay Regional Council last December.

If granted, it will see a 350-metre wharf built when cargo demand and increasing ship size warrant it.

Napier Port and the Hawke’s Bay economy are also enjoying the benefits of the cruise industry, with 60 cruise ships set to bring more than 153,000 passengers and crew into the Bay this cruise season.

Napier Port chairman Alasdair MacLeod says 2017 was an historic year for Napier Port.

“We faced a major challenge in the wake of the Kaikoura earthquake, and I’m proud of the way our people stepped up.”

Napier Port saw a significant and unexpected spike in cargo following the quake on 14 November 2016, as containers were rerouted to Napier.

“Essentially, we saw six years’ forecast growth in one year.”

It wasn’t the only major feat for the port in 2017, with giant cruise ship the Ovation of the Seas becoming the largest ship ever to berth at Napier Port when it made its maiden call in January.

“We had a fantastic cruise season, and the Ovation’s call was undoubtedly the highlight. It really showed what we’re capable of achieving, and it was great to have such strong support from our tourism partners and our local community.”

More than 125,000 passengers and crew visited Napier over the 2016-2017 season, bringing around $20 million into the local economy.

The port’s onsite packing facility, Port Pack, also continued its growth trend, with 48,310 TEU containers handled over the course of the year. Port Pack now accounts for nearly a third of Napier Port’s containerised full export throughput, and has grown into one of the biggest packing facilities in New Zealand.

The port also invested $18.7 million in capital projects and equipment, including land holdings in Pandora and Whakatu and specialist studies to support its application for resource consent to build a new wharf.

The resource consent application for its proposed 6 Wharf Development and Dredging Project is a crucial element in Napier Port’s future strategy. Alasdair says cargo volumes across the port are likely to nearly double over the next decade and Napier Port needs to develop its facilities to handlethatgrowthonbehalfoftheregion.

“Napier Port is critical to Hawke’s Bay’s economy – we’re associated with 27,000 full and part-time jobs and more than half of Hawke’s Bay’s gross regional product,” he says.

“Hawke’s Bay’s economy is in growth mode, and we’re forecast to see cargo volumes nearly double over the next decade, while ship size is also forecast to grow. Having a sixth wharf in place will strengthen our connection to global markets and ensure Hawke’s Bay can continue to thrive and maintain its enduring relevance.”

Long-serving chief executive Garth Cowie passed over the captain’s duties to Todd Dawson at the end of last year, after 18 years at the helm, and Alasdair says Todd is the right person to continue Napier Port’s success.

“We absolutely have the right person for the role. Todd brings the skill, acumen and tenacity we need to take Napier Port into the future.”

Todd comes to Napier Port from Kotahi Logistics, where he has been for the last five years, the last two as General Manager BoxConnect, leading their strategic programmes and implementation of new ventures and strategic partnerships. Todd says he’s excited to get stuck in.

“I’ve had a great welcome from the Napier Port team, and I’m enjoying meeting our many local customers. I’m very focused on a successful future for Napier Port, and I’m looking forward to working towards that with our team, our customers and our community stakeholders,” Todd says.

New pastures for Brent Linn

Brent Linn has stepped down as general manager of Hawke’s Bay A & P Society, one of the region’s oldest and most traditional organisations.

Brent was in the role for seven years and during that time has seen the society add additional events such as the Edible Garden Show, while at the same time ensuring the long-term sustainability of the annual Hawke’s Bay Show. In 2017, the showgrounds hosted 101 events.

He also established a master plan for the venue, which he hopes will be fully implemented.

The Profit caught up with Brent and asked him about some of his highlights and what the future holds for both the A & P Society and himself.

What are some of the highlights of your tenure?

Growing the society events to become a true celebration of the incredible diversity, resourcefulness and success of our primary sector industry and people.

Reconnecting the showgrounds with the wider Hawke’s Bay community, a symbolic opening of the gates to its beneficial owners and a general, more outward- looking organisation. Last year we hosted 260,000 people at the showgrounds at 101 events.

Establishing a master plan for the development of the showgrounds; delivering the $1 million Stage 1 infrastructure phase in 2017 and developing the concept plans for the $3.5 million multi-use building to support the Hawke’s Bay Farmers’ Market, Horse of the Year and other users.

What have been the challenges?

Trying to develop the society events and the showgrounds venue with limited financial resources.

What does the future of the organisation look like?

Bright I believe. The realisation of the opportunities that have been created is going to be down to the new team and leaders; all the building blocks are there, it’s just a case of arranging them.

Most people know the A & P Society for the spring show, but it’s more than that… can you briefly explain its activities?

The society is a not-for-profit, registered charitable, membership-based organisation whose charter directs it to showcase and champion the primary industry’s contribution. It has about 800 members ranging from farming families through to Hawke’s Bay businesses to urban families. Membership is open to anyone and currently costs $65 per annum.

It owns the showgrounds, a common misconception being that they are owned by the Hastings District Council, so unfair comparisons are sometimes made with other venues that are funded by the ratepayer.

The society delivers four events and after 154 years, the spring show is naturally the most recognised. That said, the National Horticultural Field Days, Napier Port Primary Sector Awards and the Hawke’s Bay A & P Bayleys Wine Awards are now more important in that direct engagement with the primary industries.

What are your future plans?

I have a couple of personal projects that I am working through in the short term, most notably, vintage 2018 at my vineyard. However, 2018 is all about getting that much talked-about work–life balance thing sorted so I will be looking towards project-based roles that have a beginning, middle … and end.

What type of roles will you be looking at?

Supporting my agriculture degree, I have 30 years’ experience in building business capability, infrastructure development and relationship management in and around the primary sectors. I now want to utilise that experience to help businesses that have a development or process they are working through; in simple terms, project management.

What does the future of the primary sector look like in Hawke’s Bay?

Generally, the Hawke’s Bay primary sector industries are on a roll and are currently enjoying good product prices and good conditions climatically. We can look at investor confidence in certain sectors of the Hawke’s Bay primary sector – for example, Pipfruit – as providing an insight

into heightened expectations around the future of those sectors.

In wider terms, what do you see as the challenges facing the primary sector in Hawke’s Bay?

OK, you could call them challenges but those who master them will turn them into opportunities. Here are a couple off the top of my head:

For the exponentially expanding horticulture sector, it would be having the right people at the right time in the right roles. So, the industry or operators will need to consider how their recruitment, training and reward structures attract and retain staff, from the orchard to the board room.

Another will be that whole collision of opinion surrounding the environment and the production of food that will see those who take an entrenched position, on either side, being left behind. We will see the increasing importance of production accreditation schemes, traceability and the consumers’ connection to the place of origin.

New Zealand and India building stronger horticultural relationship

A new partnership has been announced between New Zealand and the State of Himachal Pradesh under the Himachal Pradesh Horticultural Development Project which targets smallholder farmers in northern India.

The Himachal Pradesh Horticultural Development project aims to be the start of a much broader relationship with New Zealand horticulture.

The New Zealand team, working on the project, includes scientists from Plant & FoodResearch,AgfirstEngineering,Fruition Horticulture and other New Zealand-based specialists with additional support from the New Zealand pipfruit industry body, New Zealand Apples & Pears and New Zealand Government agencies.

The World Bank-funded three-year project will work with the horticulture industry in the Himachal Pradesh province to improve production of the region’s key fruit crops, including apples, summerfruit, and tropical fruits such as mango.

Located in the north-western Himalayan region of India, about 90% of the HP population lives in rural areas and is dependent on agriculture for their livelihoods. Apples are the main crop, accounting for 85% of fruit production in the area and about 30% of India’s total apple production.

New Zealand Apples & Pears chief executive Alan Pollard said the industry is pleased to be contributing to these important goals of creatingmorejobsandbetterlivelihoodsfor the people of Himachal Pradesh.

“New Zealand’s apple and pear industry has the highest productivity in the world, averaging 65 metric tonnes per hectare per annum which is more than 50% higher than our nearest competitor.

“World best production and post-harvest systems and practices have earned the industry an international reputation for producing fruit of the highest quality.

“This project will provide growers in the Himachal Pradesh province of India with access to New Zealand expertise to help improve the productivity of their orchards in terms of both yield and quality, and subsequently generate better returns for their growers,” Mr Pollard said.

Plant & Food Research chief executive Peter Landon-Lane said Plant & Food Research is pleased to be involved in the Himachal PradeshHorticulturalDevelopmentProject.

“Our scientists have been working with the apple industry for more than 50 years and our research has contributed to the excellent reputation of New Zealand produce globally. To be able to share this knowledge to support communities in developing regions is very rewarding.

“It also allows our scientists to extend their understanding of how crops grow in different geographic regions and environments, and supports the relationship between New Zealand and India, and their respective apple industries,” he said.

New Zealand’s entire horticultural sector is globally renowned for being innovative, sophisticated, and highly productive, backed bysoundscienceandworldbestpractices.

The New Zealand apple industry, while producing only 0.5% of the world’s apples, has been named the world’s most competitive apple industry for the past three years (Belrose Group, World Apple Review). From annual production of approximately 550,000 tonnes, two thirds of the crop is exported to over 80 countries around the world.

The new project will use New Zealand expertise to develop orchard management techniques, irrigation and water harvesting that will improve production and quality of fruit crops grown in the Himachal Pradesh province. It will also lower pesticide use through improved pest and disease management, thereby contributing to environmental outcomes as well.

Fresh fields approach for local engineering firm

Back in 1998, engineer Scott Field had just returned to Hawke’s Bay from the UK. Having worked for engineering firms in England and Brazil, he was keen to carve a niche in a rapidly expanding local economy. Setting up in Brookvale Road, Havelock North, with a 120-metre2 workshop, Scott asked brother- in-law and engineer Blair Hislop to join him.

Blair had also spent time in Europe, in the automated technology sector, and had returned to the Bay in 2002. Moving location four times over the years to accommodate the growing business, and now occupying 400 metres2 in the Whakatu Industrial Park, Fieldsway has a reputation for harnessing technology and innovating.

They have a discerning customer base requiring products ranging from high-end residential and commercial customised stainless steel bench tops, fixtures and fittings, to solar-powered entrance gates to heavy commercial irrigation systems.

In the last two years, the business has scaled new heights as both Scott and Blair joined The Icehouse Owner Operator Programme, giving them the time and motivation to develop role clarity, implement new processes, build capability in their highly specialised team, and that all-important freedom to work on the business, rather than in it.

Scott and Blair joined the Owner Operator Programme in the summer of 2016. Business had been going well but with several new projects in the pipeline, they both recognised a need to upskill themselves, and their staff, to ensure sustainable growth.

Fieldsway were well known for manufacturing good-looking electronic gates and customised trailers but there were plans toexpandfurther.

“We wanted bigger premises and we were developing a new model for creating high-end stainless steel benches, fixtures and fittings to complement our current work, so we needed to ensure we got this model right first time,” Scott says.

One of the programme workshops focused on leveraging genius and role clarity. This provided the ideal platform for the two owners to nut out who would do what in the future. This included restructuring the organisational design of the business and building a high-performing team.

Planning began for a move from the Thomson Road leased premises to the Whakatu Industrial Park as well as building the capability of specialist designer Mickey Heibner.

“We knew we couldn’t grow the way we needed to without building the capability of our team,” Blair says.

Mickey joined The Icehouse Effective Leadership Programme (ELP), giving him the extra skills and tools to manage the new customer base, which was expanding fast with the arrival of more efficient solar power for electronic gates – the new technology making gates more affordable for business and homeowners.

“Since I did ELP I have become more focused on my roles in the company and more open-minded about how to get the best out of the team with their skills, and it’s given me much more confidence with our clients and the other businesses we are working with on jobs,” Mickey says.

Collaborating with other quality local businesses is creating high-value channels for new business and the Fieldsway team pride themselves on working well with other complementary teams.

“We have an excellent relationship with Rabbitte Joinery when it comes to producing top-end customised kitchen and bathroom benches and fittings, we work with security firm Eastek on the electronic gates and, more recently, Think Water for irrigation work.”

The team had identified a gap in the market for creating heavy-duty water systems for irrigation. Their time in The Icehouse allowed them to step away from the business and get the model right for this work as well.

“We recognised we needed to have a bigger focus on design and project management. Ultimately designing and drawing up the plans has given us a big tick for this kind of work,” Scott says.

“We’re all about the things you can’t buy off the shelf, and we know the design expertise we can provide is going to produce the right finish,” Blair adds.

Ensuring that in-house processes are streamlined is vital, with the large number of varied projects now on the go. Working with The Icehouse programme facilitator and coach Michaela Vodanovich provided the impetus to change to WorkflowMax and online calendars, as well as only focusing on the projects that are adding value to the bottom line.ture

“Everything we do is KPI’d and we analyse where every dollar is spent; on every job we can tell the guys exactly how much time they have to get it finished and that means no stress,” Blair says.

Having moved into their new Whakatu offices in mid-2016, plans are underway to expand the workshop to have a larger bay for stainless work as the demand increases.

A 60-millimetre-thick folded stainless island for a Waimarama beach house has just been completed, another customer has recently requested oversized specialist shower nozzle fittings for an outdoor bathroom at a lake house in Taupo, and Mickey has been brought in to advise on a curved bench top for a Napier Hill kitchen that is nothing short of a work of art.

Commercial kitchens and new juicing factory plants are all being kitted out with stainless steel.

Staff are being retrained to upskill them to be able to work with the new designs, adding to the staff morale.

Both Blair and Scott agree they couldn’t be happier with the team they have built around them.

“We treat staff like family; we are interested in their personal lives, if they need to see a child in their school breakup then they should go. No one seems to want to leave, so we feel pretty good about that and it makes this business an awesome place to be.”

Hub helps fledgling businesses fly

A new Hawke’s Bay Business Hub initiative is connecting established businesses with Hub services and assisting fledgling businesses get off the ground.

‘HUB Connect’ is a three-stage programme to connect businesses with Business Hub services. It’s designed for all businesses to find out more about what help is available here and how best to get started says Business Hawke’s Bay Chief Executive Carolyn Neville.

“The pilot programme was established with funding from Hawke’s Bay Regional Council and Business Hawke’s Bay, and is strongly supported by all Business Hub member organisations. This is the service so many people have been waiting for – it’s designed to make the engagement process with the Business Hub and regional business service providers easier and more effective.”

“So often businesses get given all sorts of contacts but don’t actually know who best to talk to. With HUB Connect we take away the confusion by pointing people in the right direction and help them unleash their business potential.”

Mrs Neville says her team really wants to simplify the process of connecting with the Hub, and with HUB Connect it’s now as easy as 1, 2, 3.

  1. HUB Connect Check-In

The first stage of the programme is the HUB Check-In, which provides well-informed, impartial connections to the people who are the best fit with the businesses’ needs.

Business Hawke’s Bay staff provide a warm welcome and an overview of the services available during a free one-to-one introductory session. After the ‘check- in’ process is completed, businesses are matched with organisations that can offer further support and advice.

Referrals to the programme’s next stage, the HUB Business-Starter, are for those who are new to business or new businesses who do not yet meet the criteria for Regional Business Partner registration, such as being GST registered.

  1. HUB Connect Business- Starter

Last year, Business Hawke’s Bay identified a real need to provide some form of support for people just getting started in business, even if they only had an idea they wanted to explore. A Business-Starter session, the second of the three stages available free of charge, involves a 60-minute meeting to help map out ideas and provide specific information on business basics.

Jacqui Thomas, Business Hawke’s Bay New Business Support says, “There’s various forms of support and advice for people already in business, but nothing much to help people who have an idea but aren’t quite sure how to go about getting started. Now that the HUB Connect Business-Starter programme is underway the enquiries range from people completely new to the concept of running a business, to those who may have already been in business but have a new idea they want to test out with an objective ear, or want more insight into the early steps of getting started in terms of getting the fundamental basics sorted at the beginning.”

“The Business Starter session is an individual one-to-one session tailor-made to meet the needs of the client. For some this is as simple as having a fresh sounding board to bounce the idea around with, for others it covers the basic compliance aspects of structuring your business and what things need to be covered off with various government departments. It is also a great connector into various other organisations and useful portals of information, and there are often plenty of fresh ideas and useful contacts that come out of the session.”

“Potential business owners can tap into the various forms of support and knowledge that is available right from the very start of their business journey. Hopefully this will set them up for their best chance of success or, if their idea needs some tweaking before it can fly, help them to avoid costly mistakes.”

Craig and Simone Stranaghan from Avantogo Tours say they were delighted to be offered a Business-Starter session to help them with their new business venture.

“We went with an open mind, having previously been in business in the building industry. We felt any help we could gain would be of benefit. We really appreciated that our session was funded, as starting up a new business is an expensive exercise.”

“Jacqui really listened to us and provided some great advice. Of particular interest to us was the “speed business dating” sessions, the recommendation to revisit Hawke’s Bay Tourism, a discussion around the importance of social media, a wedding contact and useful booklets about things like Health and Safety. Since our session we have followed up on a number of these points and still have some on our to do list!”

  1. HUB Connect Club

Also on Craig and Simone Stranaghan’s ‘to do’ list is joining the Business Hub’s new business event and training calendar, HUB Club.

Business Hawke’s Bay’s Club Co-ordinator, Tertia Whitcombe, says membership is free for any business and gives access to a range of business-related initiatives.

“The HUB Club’s focus is on ongoing capability building. We provide ongoing support for both start-ups and established businesses through newsletters, events, training workshops, networking opportunities and club deals including member discounts and special offers for professional events.”

Fostering and supporting entrpreneurship

Overall, the ‘HUB Connect’ concept fosters and supports entrpreneurship, as well as growing Maori participation in economic development. It supports Work Area 3 of Matariki – Hawke’s Bay Regional Economic Development Strategy (HBREDS), the goal of which is to identify and support businesses wanting to grow.

Carolyn Neville says Business Hawke’s Bay is the lead agency for multiple Matariki Actions related to business growth and start-up support.

“Collectively the implementation of these Actions through our HUB Connect programme means we can provide accessible business growth services and support to firms across the whole region. Already dozens of people have taken part in HUB Connect and enquiries continue to come in every day through online registrations and referrals.”

“We have scope to support other fledgling businesses in the coming months. If you’ve got a new business underway or you’re in business and would like to find out more about the services available, we would love to hear from you so we can get you started – it’s as easy as I, 2, 3”

To find out more about HUB Connect, check out www.hbbusinesshub.co.nz

 

Reinventing retail: The Cuba Street of Hastings

Take a walk along Heretaunga Street East’s ‘200 block’ and you’ll find the central Hastings precinct buzzing with retail excitement – except in one corner.

The windows of the former long-time home of Denton Wyatt Books on the corner of Heretaunga and Warren Streets, which closed in late 2017, have been whited-out ahead of a major redevelopment.

But elsewhere, along the stretch between Warren Street and Karemu Road, Heretaunga Street East is as vibrant as it’s ever been, with a range of artisan food producers and local retailers plying their trade under awnings decorated with bright hanging flower baskets.

It’s a major transformation from five years ago when the 200 block was the uninviting home of the local WINZ office, second- hand traders and a sex shop doing a roaring trade in synthetic cannabis.

Back then, the street still had heart, with the likes of long-term occupant Cornucopia, but the café and food store’s customers were becoming unhappy with the antics of some of the people turning up to buy legal highs across the road.

Today, WINZ, the sex shop and the second- hand stores are gone, replaced by retailers such as La Petite Chocolat, Y’A Bon French Baker and long-time Hastings furniture business Hutchinson’s.

The space left by Denton Wyatt won’t be vacant for long. Local winemaking couple Kate Galloway and David Ramonteu have secured the site for a craft spirits distillery and cellar door they hope to open around mid-2018.

The distillery will help to further cement the block as the city’s premium precinct for artisan producers of local food and drink.

Hastings businessman Michael Whittaker, who owns several properties in the 200 block, says its transformation is a leading example for New Zealand of how small, local stores can successfully evolve to thrive in an age when shoppers are easily enticed by big box retailing and e-commerce.

Adding a ‘cellar door’ in
the retail mix


Kate, the former chief
winemaker at Alpha Domus, says her link to the block goes back to the late 1990s when she began shopping at Cornucopia and Humanity Books.

The distillery she and David are developing “will be akin to a winery cellar door experience,” where customers will be able to sample, buy and view the production process, but there are no initial plans to include a cocktail bar.

Gerard Barron and Jess Soutar Barron’s decision to open the Common Room bar in 2012 is seen as one of the major recent changes on the block, and last year Nick Pike opened Funbuns, a “Bao buns and cocktails” joint across the road.

“[The distillery] should complement the existing businesses well,” says Kate.

“We’ve been talking about a lot of collaborations with Funbuns and with the Common Room bar so I think it should all work in well. With all these boutique shops and artisan producers around here, we thought these are like-minded people and this is where we’d really like to be,” she says.

“While [the Denton Wyatt building] probably isn’t the easiest building to work with because of the way it’s been modernised, it was really the last of its kind on the block so we thought, well, this is where we want to be so we’d better secure it.”

Kate says the popular union of eatery Carr’s Kitchen and craft beer brand Brave Brewing, with premises further down Warren Street, shows how the Hawke’s Bay drinks market has matured.

“The wineries are great and they’ll always be the backbone of it, but it’s just good to see beer and craft spirit coming into it as well.”

Attracting retailers with heart

Michael Whittaker’s involvement with the block began in 2012 when he bought the disused Albert Hotel property on the Karamu Road corner, subsequently demolishing it to create what is now Albert Square.

“We’d say that the 200 block was pretty derelict – every second shop was vacant – but therein lay the opportunity. We purchased the Albert Hotel with the intention of demolishing it [because] we wanted to develop Albert Square as a green space to really say, hey, this block has changed. So it went from a corner that had a derelict old building with vagrants living in it to a smart green space that the public could use.”

Michael now has interests in a number of properties on the block and has plans up his sleeves for further revitalisation.

“When I started it I always said to myself, it’s going to take 10 years to slowly rework the fabric of the block. I’m not a developer as such, I’d like to think I’m more of a re- developer. I’m not buying these buildings, doing them up and selling them. I’m a long- term investor in Hastings – and I’m putting my money where my mouth is to create something that’s in keeping with 21st century retailing.”

Michael says his strategy has involved only leasing to private, Hawke’s Bay-owned and operated businesses.

“They had to have their heart in the business, they had to have their heart in the block. I had no interest, and still have no interest, in getting chain retailers or corporate retailers in there because that’s a key part of the revitalisation process – you have to have people who believe in the block.”

Secondly, he says, he’s worked to ensure there was “an overriding theme for the block”.

“It’s all about experiential retail and in our case we’ve tried to attract experienced food retailers like La Petite Chocolat, where they do their manufacturing in the shop, and Y’A Bon, which is a full manufacturing bakery – one of the best French bakeries in New Zealand, all behind glass, where you can see how it works,” he says.

“We’ve got future plans for a number of other experiential retailers that we’re talking to, to come into the block as well.”

He is not involved in Kate and David’s redevelopment of the Denton Wyatt site

but says: “We’re working with them very closely and we’re helping out where we can because my view is anyone who wants to put their shoulder to the wheel and create an interesting block, we all have to hang together and help. We’ve got food retailing; what we’re trying to do is really extend that into the hospitality side.”

Fixing Hastings’ CBD

The Hastings CBD has long been criticised for being too large, with its sprawling length deterring shoppers, who instead are attracted to the large format retail zone off Karamu Rd on the central city fringe.

It’s an issue Hastings District Council has been trying to address over the past few years, with a focus on encouraging the creations of ‘precincts’ in line with what is happening on the 200 block, part of a ‘mixed commercial, office, entertainment and retail’ zone.

On the other side of the rail line that bisects the city, the first blocks of Heretaunga Street West are a focused retail precinct, while the council is in the midst of making visitor-

friendly enhancements to the central mall beside the rail track.

Michael, who chaired the Hastings Business Association for four years until standing down in 2017, says creating engaging experiences for shoppers is a key way bricks-and-mortar retailers are remaining competitive against the online shopping explosion.

“At the end of the day, the Internet is going to play an increasing role in retail shopping; however, people will still want – and I think will increasingly demand – a retail experience. They want theatre. You only get so much satisfaction clicking on a screen. So whatever you do you have to make sure [CBD retailing] is interesting and it’s an experience.

“That’s clearly the retail direction of the future and I’d like to think the 200 block is leading that in many ways in New Zealand.”

Big move, no regrets

After 54 years at its previous site, it took a seismic safety nightmare to shift Hutchinson’s into the 200

block, but now the iconic Hastings retailer wouldn’t be anywhere else.

The former Hastings Municipal Building tenant was forced to move in 2014 when the municipal complex, including the Hawke’s Bay Opera House, was closed for major earthquake strengthening work.

At the time, Hutchinson’s director Hamish Gibbs considered the move to be temporary, given the store’s half-century association with the former site, but now there are no plans to shift back.

“It was pretty empty when we moved here and since then all the empty spots have been taken up, which is brilliant, for lots of reasons,” he says.

“It’s full, it’s vibrant, it’s lively and it’s attracting people. People are enjoying the retail experience from the whole block. All the businesses complement each other and there’s just a good vibe and we’re really enjoying it.

“There are lots of clients of ours who are recent arrivals to Hawke’s Bay – whether it’s from New Zealand or overseas – and they just find Hastings is humming.

“[In the Municipal Buildings block] we were pretty much a destination store but now we’re part of a real buzz.

“We’ve invested for the future in here. This is the Cuba Street of Hastings.”

 

 

Nash rolls sleeves up for SME’s

There’s a new party running the country, Labour, and Napier MP Stuart Nash has picked up one of the most coveted and important portfolios – in fact he’s got two – Minister for Small Business and Minister of Police. We thought it was important to get Stuart’s views on how the government can support SMEs and what opportunities he sees exist for the Hawke’s Bay economy.

What’s your business background?

I have a Master’s degrees in law and management and have worked in sales and marketing for large corporates (Carter Holt and Fletchers) and elsewhere in the private sector. I spent seven years importing and trading petrochemical derivatives into New Zealand, Australia and Singapore and also worked in strategic development (writing business cases justifying capital development). So, rather wide and varied.

What do you think are the most common challenges for SMEs?

There are a number, and it often depends upon where we are in the economic cycle, what sector the company is in and how mature a firm is; however, the three that I have heard constantly are:

  1. Provisional tax – people tell me they hate the system!
  2. Access to affordable capital in order to grow and expand.
  3. Finding good employees. The new government is looking at innovative ways to address all three issues.

What role does government have in supporting SMEs?

First and foremost, we can change the law and alter the regulatory settings to make it easier to do business. For example, this year sees the introduction of the Accounting

Income Method (AIM) for paying tax for the SME sector. This is pretty much like PAYE for small-to-medium businesses (and I would advise all SMEs to ask their accountants about this). AIM should provide more certainty to SMEs around tax payments and make planning ahead much easier.

The www.business.govt.nz website also provides a treasure trove of advice to small businesses, from constructing an employment agreement to writing a business plan to paying tax and everything in-between. It really is a fantastic resource.

So, the government’s role can be anything from providing advice and support through to, for example, proactively helping companies develop new markets overseas.

What initiatives to support SMEs will you be looking to roll out over the next 12 months?

One that I can talk about is reconstituting the old Small Business Development Group into a body with a much stronger mandate to advise government, advocate on behalf of the sector and provide solutions to the issues that are important. I would like this body to inform the research that needs to be done in order to support change and also take a level of responsibility for information dissemination.

Then there is the AIM, which should make paying tax easier. I will absolutely be

pushing the NZ Business Number, which is an amazing initiative whose value isn’t well understood. This needs to change. There are a few other initiatives that we are planning but just can’t discuss at this point in time.

How do you think Labour and your success will be judged by SMEs?

Always a tricky one. For me, it has to be about ease of doing business. While everyone acknowledges there has to be a certain level of compliance, if we can remove unnecessary red tape and replace this with initiatives that actually make doing business easier, then we all win. Of course, there will always be businesses that fly and those that fail, but if we can help get more off the ground and minimise the number that crash, then we all do well.

What Hawke’s Bay business people and businesses do you admire?

There are the obvious high-profile ones like, for example, Rod Drury (Xero), Jenny Yule (Porse), Hamish White (NOW), Rob Darroch (FPG), Kate Radburnd (Pask Winery), Hamish Whyte (Furnware), Claire Vogtherr (Holly Bacon), John Bostock, Kirsten Wise, Kevin Atkinson, the Tremain Family and the Beatons. There are, however, many small, medium and large companies that do fantastic work in the Bay.

For example, we have just had some work done around our section and the quality of work from the excavation company through the team that put in the retaining walls and the firm that laid the concrete is absolutely legendary! I admire and respect anyone and everyone who is out there making it happen.

Who has been a mentor in your career?

I haven’t really had what I would call a mentor. There are a few people whom I have regularly sought advice from at various times over the years or who have been role models in terms of how they conduct themselves or the quality of their leadership, but no one stands out over anyone else.

How do you think the Hawke’s Bay economy is performing?

The local economy is doing extremely well. There are a few retailers and tradesmen who I talk to regularly in order to keep a track of how things are going. While it is completely unscientific, all report that spending is up, there is a lot of work on and there is plenty of people visiting and living here who have cash to spend. I remember talking to a group of young Napier entrepreneurs about three years ago, and they said that the major barrier to doing business in the Bay was the cost of airfares between Napier and Auckland. With Jetstar’s arrival, this has changed. We should not underestimate the value that Jetstar has brought to the region.

What general improvements could be made to keep the local economy strong?

More people moving here with money and ideas and businesses. We need to make Hawke’s Bay the ‘easiest place to start and run a business from in the country’.

Also, there aren’t many here who understand the size and potential of the Maori economy. Once all the settlements are concluded, I think the level of economic activity will increase. Already Ngati Kahungunu, under Ngahiwi Tomoana’s operational leadership, is a significant investor in the Hawke’s Bay economy, with the vision, power, resources, governance and operational skills – and mandate – to really make a significant difference.

While I can’t comment about the work of the Hastings District Council, I do think the Napier City Council has done some fantastic work over the last little while to really spruce the city up in an effort to once again turn it into a premium destination to visit, live and do business. Still plenty more to do in terms of reducing compliance and increasing advocacy and proactive support, but we will get there.

What investment model do you support for adding new infrastructure to the Napier Port?

I have yet to see the business case for any of the options, but I am keen to see the Port retained in local ownership (and there are a couple of ways this can happen while still meeting the requirements of the shareholders – you and me).

Do you see any water storage projects getting off the ground in Hawke’s Bay? If so, where?

Our economy is closely tied to three variables we have no control over: the weather, commodity prices and exchange rates. So in order to mitigate economic risk, we need to exercise control over that which we can control. Water is one variable that we can have a level of control over, thus mitigating the risk of damage due to adverse climatic events. I am, therefore, a fan of water storage. After listening to all sides, I came to the conclusion that the Ruataniwha Water Storage Scheme (RWSS) wasn’t the optimal model for the region. I am, however, a believer of the value of on- site storage and other innovative ways of capturing water that doesn’t cost the region close to $1 billion to implement. I await with interest the Hawke’s Bay Regional Council’s next step in this area.

How closely will you work with the Minister of Regional Economic Development?

Very closely. We are good friends as well as cabinet colleagues. I will advocate hard for any worthwhile project that I believe will add value to the region. There are already three that I have discussed with him that we will hopefully be able to progress. While I won’t win every battle, I will certainly push our case extremely hard.

In the briefing from the Ministry (MBIE), they talk about road shows, when is this likely for Hawke’s Bay?

It’s likely to be Thursday 7th June. Further details are to come closer to the time.

 

Insure HB – New venture for Insurance Brokers

Long-time work colleagues Rick Behague and Kerry McIntyre have stepped outside of the safety net of being employed to set up their own local insurance broker business.

Rick and Kerry have worked alongside each other in the insurance industry for 13 years, within large multinational firms and also a local independent broking company.

They always wanted to own a business and be in charge of their own destiny. 2018 appeared the perfect time to start establishing their business Insure Hawke’s Bay.

“It’s exciting times for us. In fact, there’s been a wide range of emotions and we’ve definitely stepped outside of our comfort zones, having been employed by other firms for many years,” says Rick.

Insure Hawke’s Bay will specialise in broking insurance for the business, residential and rural sectors. Its aim is to step away from the industry norm, modernise what is regarded as a very traditional sector, as well as up the game when it comes to client servicing.

“Insurance is often seen as a ‘grudge purchase’ or ‘necessary evil’, but we want to change that. We want to put some personality and fun into the transaction and not just tick the boxes when it comes to regulations. We want to be more relevant than that,” Rick says.

Kerry adds the duo complement each other both in regards to experience and knowledge. Kerry has a strong interest and vast experience insuring specialist heavy machinery such as earth moving equipment, excavators and diggers, or as he calls them, “big boys’ toys”.

Meanwhile, Rick has a background in insuring within the construction sector, from small trade businesses through to large construction firms.

“Just like good insurance, we cover each other in strengths and weaknesses. We have over 35 years’ combined experience in the industry. But if there is an area that we might need to find out more about, we have the support of the Insurance Advisernet and NZbrokers groups.”

As part of a wider network of brokers, Insure Hawke’s Bay has access to insurance products from well-respected insurers and business systems, as well as additional external expertise.

“It provides us with great buying power for insurance products, as well as the ability to design solutions that meet the needs of our clients. In other words, we’re not going to put our client in an off-the-shelf product, it’s going to be more tailored. Though cost is important, we put the emphasis on service and advice. This way our clients can make informed decisions,” Kerry adds.

Insure Hawke’s Bay sees the major difference of using a broker over going direct is that it will source the best cover and when the unfortunate time arises to make a claim, that the process is as smooth and stress-free as possible.

“One of the least understood parts of a broker’s role is the claims process, but to us it is the most important. We work for our clients,not the insurers.I t’s our job to get the most out of the policies should a claim occur,” Rick says.

As we went to print, Kerry and Rick had only been in business about a month but they’ve been thrilled with the response.

Both men are members of business referral network BNI and that has helped to quickly get the message out but also in utilising the skills of fellow members.

“We are local and I think that’s what gets lost by some of the larger insurance companies. We have made it a priority that wherever possible we will use local suppliers for our business.

“We are proud Hawke’s Bay residents and that was a key reason why we wanted to have the region’s name as part of our brand,” Kerry says.

Although the business is in its infancy, Kerry and Rick have big plans for growth.

“We might only be two brokers at the moment, but we want to be an employer of choice and we have ambitions to be a sizeable business. We want to attract great staff and know we can offer a fantastic working environment.

“We’ve hit the ground running and the response has been fantastic. Our aim is to lift the standard of client services to a new level. We have a stake in the ground with this being our own business and we want our clients to feel informed, secure and valued.”

www.insurehb.co.nz

 

 

Mixing surfing and software development at Haumoana

A lifestyle property near Haumoana is the unexpected global headquarters of developer David Frampton’s Majic Jungle Software.

Through Majic Jungle, David built The Blockheads simulation app that has been downloaded and played by millions of mobile gamers around the world.

A game developer since 2003, David moved from Wellington to Hawke’s Bay in 2012 after a search for the perfect place to relocate his home-based business. It needed to be somewhere he could spend time with his young family and indulge his other passion: surfing.

“Because I work from home, I could be based anywhere, so we drove around the country and checked out a bunch of possible spots before deciding to settle here,” he says.

“Surfing definitely influenced things. I had to find somewhere with some decent surf. It’s surpassed all expectations, I’ve found it really good.”

The location also allows him to indulge another hobby: building and flying quadcopters.

David’s broadband link to the rest of the world is a standard ADSL copper line connection that he says meets his working needs.

“The only downside to living in Hawke’s Bay is there aren’t the numbers of people here who are doing game development. There were more in Wellington whom I could network with, so I’m missing that a little,” he says.

One way he keeps connected is through attending industry conferences.

“It’s just as easy to jump on a plane from Hawke’s Bay and get over to San Francisco or wherever for a conference as it was from Wellington.”

As well as maintaining The Blockheads, David is currently ramping up work on a new PC game with a virtual reality component, which he’s given the working title of ‘Ambience’. He hopes to have it out for testing by late this year.

Another major development is brewing at Majic Jungle HQ. After several years of having three young kids at home, David is building an office on the property so he can “get out of the house”.

At least the commute to work won’t take too long. David’s broadband link to the rest of the world is a standard ADSL copper line

 

 

New national standards for Forestry sector

National Environmental Standards for Plantation Forestry (NES-PF) will come into effect on 1 May 2018 in an attempt to get greater consistency across the country

Plantation forestry is New Zealand’s third largest primary sector. According to the Ministry for the Environment and the Ministry for Primary Industries, it employs over 26,000 people and generates around $5 billion in export earnings each year.

Together with these positive social and economic effects, plantation forests also provide environmental benefits such as improving water quality, controlling erosion, and providing a temporary carbon sink. On the other hand, plantation forestry activities can adversely affect the environment if not well managed, with the greatest risk occurring when land is exposed during harvesting or earthworks.

Rules contained in Regional and District Plans to manage such effects vary however, and while some of these variations reflect local differences and community priorities, they can cause problems for the many forest owners who manage forests in two or more regions or have forests that straddle council boundaries.

This has the potential to result in increased costs, uncertainty and inconsistent environmental outcomes. In response, and given the dominance of forestry from both a geographical and economic sense, enter the ‘National Environmental Standard’ approach allowed for under the Resource Management Act 1991 (RMA).

National Environmental Standards (NES) are regulations made under the RMA. They set out technical standards, methods or requirements relating to matters under the RMA and unlike Regional or District Plans pertaining to different regions and towns, they are intended to provide consistent rules across the country by setting planning requirements for certain specified activities.

Rules within an NES prevail over rules in a Regional or District Plan except where a NES may specifically allow more stringent rules to be developed if specific issues in a Region or District require this.

The National Environmental Standards for Plantation Forestry (NES-PF) will come into effect on 1 May 2018, and will follow five existing NES’s, these being:

  • National Environmental Standards for Air Quality
  • NationalEnvironmentalStandardforSourcesofDrinkingWater
  • National Environmental Standards for Telecommunication Facilities
  • National Environmental Standards for Electricity Transmission Activities
  • National Environmental Standard for Assessing and Managing Contaminants in Soil to Protect Human Health

The NES-PF will apply to any forest greater than one hectare that has been planted specifically for commercial purposes and will be harvested.

The main risks that the NES is seeking to manage include wilding conifer spread, erosion, and disturbance to waterways, particularly while fish are spawning.

  • To manage these risks, its Regulations cover the following 8 core plantation forestry activities that have potential environmental effects:

    • Afforestation (planting new forest)
    • Pruning and thinning-to-waste
    • Earthworks
    • River crossings
    • Forestry quarrying (extraction of rock, sand, or gravel within a plantation forest or for operation of a forest on adjacent land)
    • Harvesting
    • Mechanical land preparation
    • Replanting.

    The regulations applying to these activities are based on good forestry practices, and include:

    • Setbackswhenplantingnexttorivers,lakes,wetlands,and coastal areas – these unplanted strips protect against erosion and sedimentation from afforestation
    • Managementplansforearthworks,forestquarrying,andharvesting activities to identify environmental risks and how they’ll be managed
    • Identification and maintenance of stormwater and sediment control measures for forestry activities.

Like the structure of District and Regional Plans, if forest operators can meet the conditions, the activity is permitted. If not, they must seek a resource consent from their council. In some areas of high erosion susceptibility however, stricter requirements may apply and some forestry activities will not be able to be carried out without resource consent.

This is a serious piece of legislation, and to this effect, Councils will be able to charge to recover the costs of monitoring permitted activities that have a high risk of environmental effects if conditions are not complied with.

The sector will certainly experience change – Councils will require greater resourcing, foresters are likely to require assistance from private providers and monitoring requirements are likely to increase, and may involve on-going programmes.