Kotahi partnership with Kaweka Hospital creates future-proof complex

Structural and civil engineering firm Kotahi hit the ground running when it opened its first North Island studio in Napier, having already completed stage one of Kaweka Hospital’s structural design. The project provided the perfect platform for senior structural engineer Aaron Kaijser to return home to Hawke’s Bay, after a decade of working in both the design consulting and construction space.

This included two years of postgraduate studies in the Netherlands and rebuild work in Christchurch where he first linked up with Kotahi, then named Structex. Projects such as the QEII Sport and Recreation centre, Lyttelton Port’s headquarters and multiple developments for Christchurch International Airport, were taken on during that time. After four years in the South Island and looking for a new challenge, the intrigue of returning to the Bay was too good to pass up.

“Hawke’s Bay is a vastly different place to the one I left as a teenager.I didn’t think returning in my early 30s was really on the cards given the traditionally limited opportunities in the regions. I’m happy to say that that thinking doesn’t hold up like it used to.”

Work aside, Aaron says that his American wife needed little convincing of moving to a warmer climate. While it might be a slight exaggeration to call the Hawke’s Bay climate “similar” to California, it is at least a step up from the cool South. While the idea of starting an office in Hawke’s Bay was his, Aaron says Kotahi’s leadership was open to the relocation. This was also about the time that he became a shareholder in the company.

“It reinforced the company’s guiding aspiration of seeing its people flourish, it aligned with Kotahi’s expertise in the wine sector and it coincided with a purple patch in the Hawke’s Bay economy as it was going from strength to strength, and continues to do so.” Aaron also identified an increasing complexity in new and existing builds, and the need for capable structural engineers as the impetus for growing an office in the bay — Kaweka Hospital being a prime example.

Coupled with that was the ability to attract returning talent and those who appreciate the lifestyle but don’t want to relinquish their career. Two of his office colleagues, Nick Bednarek and Martin Mendilaharzu, are a testament to this; Nick, a returning local, after working on some noteworthy building projects in London, and Martin, a likeminded engineer who jumped at the opportunity to live in the Bay while visiting from Argentina. With offices in Lyttelton (Christchurch), Blenheim and Napier, and some 25 engineers and draftsmen spread between, Kotahi has the nimbleness of a classic New Zealand SME but the scale to tackle large building projects.

Their well-regarded reputation is borne out of the winery sector, having worked with a significant proportion of the nation’s wineries. This encompassed master planning of new and existing facilities and high-level advisory on seismic risk to winery assets, through to their core business of providing structural engineering services. This backstory gave rise to Kotahi’s guiding aspiration of being the premier engineers in NZ’s winery regions.

Given the need for adaptive re-use of wastewater in viticulture and the complimentary role it plays to their core business, Kotahi added a civil/environmental component in 2021. This shores up their capability as a one-stop shop for their clients. However, wineries are but one arm of the business and in the last 5+ years, as the team has grown, Kotahi has taken on a much broader range of project sectors. This being driven by its clients and project partners.

Aaron says: “As our name suggests, we work together as one, so whether it be a residential lintel beam or a base-isolated hospital, our approach is to find the optimal solution for the project. This means we challenge conventional thinking when we need to, we work with a ‘yes’ attitude and we stay focused on the horizon, while always considering the landscape in between.”

When Aaron set himself a target of moving to Hawke’s Bay in August 2019, he spent the next several months looking at how to make it happen, including securing local-based projects. Kaweka Hospital came along prior to the move, a project which was set out over two stages; the first a $30M surgical building with four operating theatres followed by the larger and structurally more complex, Stage II, a 7000m2 four-storey building.

To expediate the construction programme, the structural documentation for the Stage I building consent took place more than four months prior to the architectural and building services packages that made up a larger portion of the overall building works. This required a significant amount of model co-ordination early on to ensure the various disciplines would align later. The same process has been followed for Stage II, given how well it worked for the contractor, Gemco Construction. Approximately 3000 design and construction monitoring hours were spent on Stage I and almost double that for Stage II with design largely complete and construction well underway.

Hospitals are unique in that they play a major role in the social and economic vitality of cities. The expectations on the performance and longevity of these buildings reflect that. Early on in the concept design phase, Kotahi guided the client through the building’s performance post-seismic event, effectively playing out the various situations that could occur with different size earthquakes.

 

“Given the significant investment in a building asset and the critical function a hospital plays in society, it was important for our structural design to align with client expectation.

“It sounds simple but if there’s one thing the Canterbury earthquakes taught the structural earthquake profession, it was the need for better communication around damage cost and repair time, not just life safety.”

Stage II took this perspective a step further with the introduction of what Aaron calls the “crème de la crème” in building performance with the introduction of base isolators. A technology that has been around for decades but only present in a handful of buildings in NZ, predominately in Wellington and Christchurch, and more so following the Canterbury earthquakes.

Kotahi also employed the use of innovative U.S.-developed software to confirm the building’s post-seismic performance, including its componentry, the first building in NZ to do so
at the time.

While an official rating from the U.S. Resiliency Council (USRC) was not formally pursued, the structural modelling and analysis indicated a 5-star platinum performance across all dimensions, with the ability to remain operational following a 1 in 500 year event, the same size event for which a typical office building is designed not to collapse (i.e. life safety only).

Other innovations such as a seismic sensoring system fitted to both buildings are likely to follow as the development progresses.

As Aaron looks at the completion of stage I, he’s equally impressed by the design outcome internally and externally as well as the strength of the structure.

“I am absolutely blown away by how good the interior looks, almost hotel-like. As much as structural engineers enjoy seeing the skeleton of their buildings go up, I have tremendous admiration for the work done by others to clothe it and make it the useable functional space it needs to be.”

The second stage, when it opens in late 2024 will set the new bench mark in earthquake resilience in the region and beyond. Aaron and the local Kotahi team have enjoyed being involved in the project, alongside the likes of Nick Ward as project manager and architects HDT, one that will benefit the community for many years to come.

“There’s a sense of pride in having the opportunity to be a part of this and knowing the positive impact it will have on the Hawke’s Bay community for years to come. Returning home after almost 15 years away and jumping straight into this project was a great way to kick things off.”

While keeping a close watch on the progress of Stage II, especially during the early stages as the base isolators are put in place, the Kotahi team have been busy on a range of other notable projects. This includes a multi-story logistics complex for Aramex in Napier, Centralines’s new 2600m2 headquarter in Waipukurau, a new supermarket in Havelock North and the restoration of the Napier War Memorial, along with many others.

www.kotahistudio.co.nz 

A steady pair of hands on Municipal Rebuild

After over five years of working in the dust, dirt and dark to rebuild Hawke’s Bay’s most recognisable building, Eddie Holmes was afforded the highest civic honour by the mayor of Hastings District Council Sandra Hazlehurst.

It was something unexpected when Gemco, Hawke’s Bay’s leading construction firm, was awarded the contract to strengthen, rebuild and refurbish the Hawke’s Bay Opera House in 2016, followed by the new Functions On Hastings and Municipal building.

For Eddie, who grew up enjoying shows and performances in the buildings, he knew he was embarking on what would be his great career highlight, to lead the $35 million rebuild. When it was officially opened in late July, Eddie was himself the star of the show, being recognised for his dedication to the project and instilling a high level of workmanship and pride by the over 200 trades people that delivered a stunning revival and re-invention of the complex now known as Toitoi Arts and Events Centre.

“I never expected the recognition I got at the re-opening of the Municipal Buildings. Never in my wildest dreams did I think that I would be afforded such as significant compliment by a client, it was a huge surprise. Eddie was also quick to say that it was a team effort and he was well supported by the Gemco team and his project support Rudi Bauerfeind.

“It was tough, especially in breaking the building down in preparation to strengthen it. There was dust, dirt and a lot of noise for 18 months or more as we took the building apart. Concerned for the wellbeing of his team and other sub-contractors Eddie made sure the site had the highest level of health and safety, including regular health check-ups due to concerns about air quality caused by the smashing apart old concrete and bricks.

Today as Eddie enjoys a coffee outside one of the complex’s new hospitality offerings – Long Island Delicatessen, he reflects over the last five years and the outcome, which is significantly better than when it was forced to close over eight years ago.

“I was just ordering our coffees and a customer in the café recognised the Gemco branding on my shirt and said ‘well done – nice job’ and I take that as recognition of Gemco’s and wider teams commitment to the project, not for me as an individual.

At the official opening of the Municipal Buildings and Assembly Hall, Sandra Hazlehurst, as mayor bestowed Eddie the council’s highest recognition – a Hastings Civic Honour Award, reading out a testimonial from the project architect Justin Mathews of Mathews & Mathews.

It read – “Eddie is one of best construction managers I’ve had the privilege of working with. “Eddie could see the vision for the building and has been integral in achieving it. He would instinctively provide solutions on site that would fit with the design goals. The respect, care, and attention to detail given to the heritage qualities of the building through the construction is a testament to Eddie.   “He also understands the importance of working together on complex challenging projects, and is well versed in doing so.  He created an environment where challenges could be resolved through clear and honest communication.  His years of experience shine through in his calm, methodical, and professional manner.   

Sandra in presenting the award added “we are so lucky to have Eddie as our on-site leader. Your contribution and dedication to this project is truly outstanding. You have continually devised innovative solutions to what appeared to be insolvable problems.

So what’s next for Eddie? He’s built or rebuilt many high profile buildings but is now getting back on the tools to build a large new home in Napier.

“I’m keen to be more hands-on and get back on the tools. I haven’t done a house for a while and an opportunity has come up to build an amazing home in a stunning location, so I jumped at the opportunity.”

New build sets standard in health care

Gemco Construction project manager Graeme Johnson takes huge satisfaction in the completion of Stage 1 of Kaweka Hospital, knowing that it’s a vision of an idea by Hawke’s Bay people, built by Hawke’s Bay people and ultimately improves the health of Hawke’s Bay people.

“It’s going to change people’s lives and when we first heard that vision from Colin Hutchison, it was something that the team at Gemco wanted to be part of.

Graeme says a previous medical facility project, the new endoscopy facility across the road at the regional hospital helped pave the way for Gemco to secure the Kaweka Hospital build. It’s there that Graeme started a formidable partnership with project manager Nick Ward of PML which progressed to securing the construction of Hawke’s bay’s newest private hospital.

“We (Nick and I) formed a good working relationship on the public hospital project and that has continued here. Nick makes our job so much easier from chasing all the council documentation but also in a role that’s part lawyer, accountant and manager.

“He takes some of the pressure off me and our team, so that we can focus on what we do best – building. The Kaweka project started in March 2019, just as COVID-19 was arriving into the country and the initial four week setback from the enforced lockdown of the country.

However as Graeme looks back at the journey to complete Stage 1 and to commence Stage 2, a three-storey building, the delays in what has probably been the most difficult environment to build in, have been relatively minor.

He adds that one of the earliest challenges was the discovery of “rubbish” in the way of discarded and buried metal, wheels, car bodies and engines under the previous building on the site. During exploration and testing of the site to understand what was below the surface didn’t reveal the more than 3600 cubic metres of waste, as it was under the existing building.

“That was a big surprise as usually you wouldn’t expect anything under a building, it would have already been excavated back then, but that wasn’t the case here, so that added unexpected time and also cost to the project.

“We also had building material delays due to COVID but the other big delay was specialist medical equipment that was held up in Europe. But when you look back over the last two years, we ended up only being 8 weeks over the deadline, so that’s a big achievement for everyone involved.

Graeme and his team are now well underway on Stage 2, a 7000m2 complex that is set for completion late 2024-early 2025. A feature of the new building is technology that will see the building be one of the most earthquake proof in New Zealand. For Graeme, the start of Stage 2 and the introduction of base isolators, the technology that will ensure that the building is still operational after a major earthquake, is part commencement of another exciting new build project but the next stage of what will end up being over 5 years on a construction site.

“I think a new build best suits my skill base and I really enjoy starting something new, discovering what lies beneath the ground and then setting about building a new structure and then bringing it to life. Overall the entire Kaweka Hospital project is only about one third complete and after Stage 2 is complete, Gemco will move back to the Stage 1 building to build on the connectivity between the two buildings.

“Yeah we’re here for some time yet. The hospital will be a huge success in what it offers the community, so no doubt there will be additional builds as it grows.

 

Kaweka Hospital sets new standard in care

Local business leaders and local specialists have partnered to open a new independent community-led Hospital in Hastings. Stage 1, an investment of over $40 million, with four operating theatres and 10 inpatient beds opened at the end of August and Stage 2, of over $60 million, when completed in late 2024 will create a state of the art health campus.

Kaweka Hospital’s managing director, Colin Hutchison says the first stage of two stages, opened with four operating theatres and 10 inpatient beds and a team of 40 surgical and non-surgical specialists offering ENT (ear, nose and throat), general surgery, gynaecology, urology, ophthalmology and gastroenterology supported by a further 75 staff including technicians, nurses, and wider support staff.

The hospital is a joint venture investment by medical specialists and management along with local families dedicated to increasing accessibility to health care in the region. Stage 2’s 6000m2 complex adds a new radiology suite with MRI, CT and Breast imaging and a new cardiac catheterization laboratory.

Colin says Kaweka Hospital brings on stream over 5000 surgical procedures a year into the local healthcare sector, giving greater choice in private surgery as well as much needed support to the public surgery register.

“Kaweka Hospital will ensure more Hawke’s Bay residents can get access to surgical procedures faster, which ultimately improves the health and well-being of the region.

“Together, this dedicated and highly experienced team are focussed on delivering exceptional surgical care, using the latest technology in a modern purpose-built private hospital.

The overall construction of Stage 1 and 2 has been overseen by Nick Ward of PML, who said the completion of the first stage was hit by ‘never seen before’ challenges.

“It has been a challenging ride navigating the Covid lockdowns, worker absenteeism, supply chain disruption, industry shortages, and an over-heated construction market – but together we got there. He added that the focus was now on completing the Stage 2 medical facility currently in construction.

“We are excited to be managing the first base-isolated building in Hawke’s Bay providing resilient construction to serve multiple generations to come. The hospital has a contract for service to provide surgical provision for the region’s public hospital. “The private health sector is here to support the public sector.

Although the public sector provides the bulk of healthcare, as a partner to Te Whatu Ora (Health New Zealand) we can also provide some public capacity. Kaweka Hospital board chairman and ENT specialist Mr Stephen Toynton says the idea of a new private hospital for Hawke’s Bay was due to the desire of a group of senior local doctors to increase access to healthcare facilities.

“Most private hospitals are part of larger organisations and consequently they are not owned by people within their communities, this means there is a lack of local decision making, direction and connectivity.

“As a group of local doctors we thought outside of the box to solve the problem, designing a new model and standard in surgical care and have been joined in partnership with some incredible Hawke’s Bay families that supported the project.

“Our surgeons and anaesthetists wanted to guide this project for the future of Hawke’s Bay and that is easier by keeping the hospital in local ownership and governance. He adds that the hospital features the latest in healthcare technology, modern layout and design by New Zealand’s leading Health Planner Ruth Whitehead and local architects – Architecture HDT.

The cancer care clinic in Stage 2 will be operated by Canopy Healthcare Group, which is the largest North Island diagnostic imaging provider with its TRG Imaging brand while its Canopy Cancer Care company is the largest private medical oncology provider in New Zealand.

Canopy Healthcare Group Chief Executive, Tony Moffatt, says the $10 million clinic will be a first of its kind in New Zealand – a full service imaging, consultation and oncology treatment centre offering state-of-the-art MRI and CT scanning technology and specialist oncology treatment under “one roof”.

“We are introducing more MRI and CT capacity into the Bay and for patients it means earlier diagnosis, world class imaging and immediate cancer treatment, all in the region.

“Presently people going through non-DHB chemotherapy have to travel out of Hawke’s Bay to receive their treatment, which can be stressful and physically demanding, they then return home before going through the same thing again three weeks later.

The new three-storey building features the Rolls Royce of seismic design and earthquake proofing – using “base isolation” technology, which is a first for buildings in Hawke’s Bay.

The technology enables the facility to remain fully functional following a large seismic event providing assurance to Kaweka Health and the wider community in a time when it may be needed.

Our ‘golden goose’ creates challenges

It’s not as plain and simple as it seems – to protect the region’s fertile plains while also ensuring our growing population all have roofs over their heads and businesses, especially within the food processing sector, have storage, processing and packing facilities.

Hawke’s Bay has enjoyed significant population growth, especially over the last few years, and with it has come urban sprawl along with overwhelming demand for new industrial/commercial areas. You only have to drive to the outer reaches of Havelock North to notice land that was once in orchards has now been converted into residential housing, or drive south of Hastings to the relatively new Irongate Industrial Zone, which was anticipated to be at capacity in 20 years but will be at capacity in half that time.

Population growth, new businesses establishing in the region or existing businesses super-scaling their complexes portray economic success and a sense of parochial pride, but it’s also coming at a cost – especially to what many regard as the ‘golden goose’ – that being the highly productive Heretaunga Plains, which coupled with a favourable growing climate position Hastings and Hawke’s Bay as the food producing capital of New Zealand.

As more and more pressure comes on the need for housing solutions, there’s huge pressure to protect the Plains, with a group of primary sector identities keeping a close watch on resource consent applications and urging for a regional spatial plan. On the other side are landowners, developers and land-use consultants, who are also seeking guidance from local councils to identify land that could be built on.

A recent soil symposium led by Hastings District Council and Hawke’s Bay Regional Council attempted to tackle the issue; however, depending on what side of the fence you sit on, it simply further raised the issue but will take time to deliver any changes. The symposium aimed at building an understanding of the nature and value of the soils that will help inform future planning and decision-making.

It covered a range of perspectives and ideas, including the importance of the Plains to growers and mana whenua, scientific information on the soils resource
and threats to it, all of which must be considered when forming a planning framework for protecting Hawke’s Bay’s productive lands into the future.

Richard Gaddum of the Save the Fertile Soils group says, “it was a wonderful event; a day totally devoted and dedicated to the fertile soils on the Heretaunga Plains.” However, in his view, the symposium was about 50 years too late.

“Some say it should have been done 100 years ago; however, we were and are so delighted that it happened and that our most precious resource has been given the importance it most certainly deserves.”

Landowner John Roil, who has developed land in Irongate for his business interests as well as for other businesses, believes that the symposium was too controlled and lacked balance from the development community.

“There is no doubt that the highly productive soils need to be protected and a significant amount of work has been done over the years to identify the various types of soil.

“Once the highly valued land is identified, then further decisions can be made as to what other parcels of land is available for development.”

Many would agree with some of the solutions being mooted, such as medium and high-density housing, inner-city living and infill developments, along with identifying land in the foothills for residential development.

“The development of land in the hills surrounding Hastings seems to be a no-brainer, though the costs associated with this type of development need
to be developed further to ensure the benefits are correctly identified and communicated to the wider public, including the likely costs to develop,” says John.

Richard and his group have offered up some areas to consider such as Te Awanga, where a satellite town could be created; using unproductive land southwest of Flaxmere for both industrial and residential developments; and the lower hills of Havelock North.

“Long-term vision is required by all parties to look at the bigger picture and into the future to preserve these incredibly fertile soils for future generations. Our short-term solutions are just not sustainable.”

John is equally committed to protecting as much of the fertile soils as possible but warns that councils will need to meet some of the costs of developing on land that’s more difficult to service infrastructure, such as three waters and roading.

“Any development should be balanced against the financial costs to expand and if the wider costs have some community benefit then council could contribute to the infrastructure and roading to make it affordable.

“Currently, developers pay 100 percent of the costs with councils collecting the additional rates into their pool of income without any form of contribution.

“It may be time that council reconsider its involvement with development in order to balance the community’s desire to protect the valued land resource on the Heretaunga Plains.”

John would welcome another symposium or meeting with greater involvement from the developer community to assist councils develop a long-term plan.

“It may be surprising to hear that the two groups share more in common than one would imagine.”

Hastings mayor Sandra Hazlehurst says that with Hawke’s Bay being the largest apple-producing region in the country, and the second-largest wine producer after Marlborough, it demonstrates the importance of the Plains to horticulture and viticulture, and the importance of those industries to our region.

“Our economic success is underpinned by the great produce grown and processed by our producers and exported to the rest of the world. Its economic value to our region is in the hundreds of millions of dollars.

“That wouldn’t happen without our superb Heretaunga Plains land and water resources, and our fantastic growing climate that makes them even more special.” However, Sandra acknowledges it is important to develop a new strategy that balances future growth while protecting land resources.

“But this economic success creates pressures and threats to the land resource. Together with Napier City and the Regional Council, we are about to prepare a Future Development Strategy for the Heretaunga Plains area, which will cover how we accommodate future growth while protecting our land resources for the future. “These strategies are essential in determining how we will manage growth and protect our soils for the future.

Importantly, they will allow our communities a say in how the various pressures on our soil resources should be managed.”

Outgoing Hawke’s Bay Regional Council chair Rick Barker says the region’s soils took nature millions of years to create.

“They are nature’s gift that must be protected. We humans cannot create them, and they won’t come again. These soils fuel our horticulture, viticulture and agricultural sectors. It’s on these soils that we have built our wealth.

“A growing population has driven urban expansion, putting irreplaceable soils under houses, factories, concrete and tarmac. If this expansion doesn’t stop we will have smothered the goose that lays golden eggs.

“Local government must protect these irreplaceable soils and must redirect development elsewhere. Accommodation must go up, not out.

“Protecting the environment and these fertile soils has to be a non-negotiable, no compromise, a number-one priority transcending any and all of the individual interests of developers and landowners. “We must accept that we are temporary guardians of the land, and that the land will be here for countless generations to follow. Our gift to future generations must be the land in its best state of preservation.”

One of Hawke’s Bay’s largest pipfruit growers, Paul Paynter from The Yummy Fruit Co, says productivity has increased hugely over the last decade due
to new growing methods, smart AI technology and labour efficiency.

“Yields from modern orchards are up about 60 percent on what we produced 10 years ago and will only be more efficient and technologically smarter. “Already orchards are more labour-friendly and respond better to targeted irrigation and the strategy is to make them ‘robot ready’, which is a way off yet but certainly the use of unmanned tractors and ground-based drones is already here.

“AI is also making it more focused – I’ve seen a drone that looks for and identifies weeds for spraying, rather than just spraying everywhere.”

Above all though, Paul says visiting growers from overseas marvel at what local growers produce.

“I’ve had many growers from Belgium or Germany who don’t believe the numbers I show them and marvel at what we can do. It’s simply not possible there.

“Our benign climate, long growing season, fertile soils, modest rainfall, excellent drainage and flood control, good water-holding capacity of the soils, a healthy aquifer and high light intensity are all key factors.”

Paul says, “we can’t go back and correct the wrongs of the past, including building Hastings on the best soils in the world, but we do know where bad soil is and where new residential development can be.

“There isn’t much good soil in Napier and certainly south of Hastings is poor, from Flaxmere to Pakipaki. Also along the Tukituki and Te Awanga area is poor.

“I think the establishment of a new community is wise for expansion but a big project. I like the idea of employing all the new technology for water, sewerage, drainage attenuation, power and the like to make for lower impacts on the environment. It’s easier to do this on a new subdivision than it is to retrofit.”

Cybersecurity Governance – the four cores to know

In past articles, we have looked at the four cores of managing cybersecurity – securing your people, your communications, your data, and your technology.

This is achieved through awareness training, best-practice policies and procedures, and selective technologies. These are the foundational components that every business is expected to implement for security. Oversight of these policies and procedures however, falls to the Board, and C-Suite executives.

According to the New Zealand National Cyber Security Center, “Boards and executives are ultimately responsible for the outcomes of any cyber incident, including the impact on stakeholder and customer confidence.” This therefore demands that these business leaders have a clear understanding of what is required to create an optimally secure business.

To this point, Gartner predicts that at least 50% of C-level executives will have performance requirements related to cybersecurity risk built into their employment contracts by 2026. In order to meet these demands, a sound knowledge of the four cores of cybersecurity is a must. In this instance the four cores relate to the governance, legal, financial, and insurance practices of the business. The NZ Privacy Act of 2020 stated that an organisation must now report any breach to the Privacy Commissioner, along with their clients, stakeholders, and interested parties. To add insult to injury, all breaches are accompanied by a financial penalty.

This is effective governmental leverage for implementing best-practice cybersecurity assurance in industries across New Zealand. Legislation is also currently being written that will hold Board and C-Suite members more directly accountable for the cybersecurity posture of any organisation they manage as it is in other countries. Simply approving or cutting a cybersecurity budget is no longer enough.

As the saying goes, if you think compliance is expensive, try non-compliance. Restoring a ransomware breach and achieving the correct cybersecurity management structure is far more costly than putting the right controls in place from the start. here is no Return On Investment when it comes to cybersecurity implementations. Its purpose is to protect the ROI on the products and services that make you profitable and keep you in business.

Cybersecurity insurance packages come in different configurations based on multiple factors for each case. Picking the suitable suite depends on knowing the protections and gaps in your business. Knowledge at the Board level of what is in the Risk Assessment and Treatment plan is a requirement for purchasing cyber risk insurance. Each of these areas is relational to the knowledge that the Board and C-Suite have of the organisations cybersecurity posture – its governance.

It’s no longer enough to blindly approve policies and budgets without knowing what’s in them, and more pressure and accountabilities will be emphasised at the C-Suite level to get it right. Discount it at your peril. We understand that most business leaders “don’t know what they don’t know” when it comes to cybersecurity governance. We therefore always recommend (and offer) that a professional cybersecurity audit is the best place to start.

An assurance audit conducted by an independent professional outside your IT department or service provider will offer a fact-based objective report of your current cybersecurity governance and management posture. This gap analysis helps determine where resources need to be directed and, in some cases, might help recommend an international certification such as ISO 27001.

Cybersecurity is the right balance of governance and management; one depends on the other. Commitment at the Board and C-Suite levels demonstrates leadership and sets the tone for staff to follow.

Record Hastings Karamu Rotary fundraiser helps big final push for new hospice

A record $190,000 has been raised for a new hospice from the Hastings Karamu Rotary Cocktail Party held in July.

Hastings Karamu Rotary Cocktail Party lead Angus Thomson announced the final funds raised at a function with Karamu Rotary members and event sponsors last night in Hastings.

He said nearly doubling the previous record of $100,000, set in 2018 for charity Hawke’s Bay Community Fitness Centre Trust is a fantastic achievement and is due to the close connection many of our community has to Cranford Hospice.

“Many of us have had a family member, friend or colleague that has been cared for by Cranford. It has touched us all and that’s why we had a great turnout at the cocktail party and why people dug deep into their pockets for such a vital community service.”

The cocktail party and gala auction was held at Bostocks Winery, Ngatarawa, Bridge Pa in July.

Cranford Hospice Foundation Chairman Chris Tremain said everyone involved with Cranford including staff, volunteers and patients and their families are incredibly grateful for the continued support from dedicated fundraising events such as the Cocktail Party as well as donations, sponsorships and bequests.

“We are humbled by the support from our Hawke’s Bay community. The Karamu Rotary has dedicated their biggest fundraiser to Cranford Hospice this year and in 2023, and we are thrilled and overwhelmed by the record contribution.

Cranford Hospice is edging closer to the $15 million target to build a new hospice on 5.8 hectares of land donated by Joan Fernie Charitable Trust in Chesterhope Road, Pakowhai. So far $13.6m has been raised.

The new hospice is now at final design and costings stage. Building consent will be sought early next year with the target of a new hospice opening at the end of 2024.

Cranford invites the community to visit the idyllic site of the new hospice and experience the beauty of the established gardens at the Open Day being held from 10am-3pm this Sunday, 9th October.

Cruise ships return to boost economy

Hawke’s Bay’s economy is poised for a major shot in the arm this summer with as many as 80 cruise ships set to dock at the Port of Napier after a two-year-long COVID-19 enforced hiatus.

The years preceding the COVID-19 outbreak saw the cruise industry become a mainstay of the Napier and wider Hawke’s Bay economy, with local tourism building opportunities to cater for an influx of international tourists wanting to spend money. Napier takes on a whole new persona and vibrancy when a cruise ship is in town, with shops, restaurants and local attractions very busy. But the economic implications of cruise ships reach wider than Napier, with wineries, tourist attractions and cafes in Hastings district benefitting financially.

Millions of international dollars have poured into the local economy as a result of these luxury vessels berthing at Napier. The impact COVID-19 has had on the Hawke’s Bay economy is best reflected by Napier Port’s financial year (FY) cruise revenue from 1 October to 31 September. FY2020 saw 76 cruise vessels berth at the port, bringing in $4.3 million in revenue.

This could have been even bigger but the season was curtailed due to the outbreak, with 11 fewer visits than forecast. FY2021 figures were bleak – a big zero. In a normal year cruise ships account for about three to five percent of port revenue but regionally, the figure is a lot higher. In the 2018/19 season, passengers spent approximately $23 million in the region.

There is no question that the loss of the cruise dollars due to COVID-19 hit the local tourism industry hard and many businesses that had built their livelihood around the cruise season had to look for any means possible to survive.

Hawke’s Bay Tourism CEO Hamish Saxton says while there are no new tourism operators since the last time the cruise ships visited, existing ones are gearing up for the season.

“At a recent cruise briefing to members and stakeholders, we met with tourism operators who were in business at the time we last hosted cruise ship visitors. The majority of these businesses have either been able to operate over the past two years relying on the largely domestic visitors or are now in a position to come out of hibernation with the return of this market. However, we do know of two businesses that are not returning.”

He says that the cruise industry is very important to the growth of the local economy. “The New Zealand Cruise Association estimated the 2019 cruise season was worth $30 million to the Hawke’s Bay region.” With kickstarting the local economy a priority, much thought was put into how to maximise the rebooting of the cruise season.

A Hawke’s Bay Cruise Restart Workshop was held in June, with Napier Port, Hawke’s Bay Tourism, NZ Cruise Association and Napier City Council presenting. The event was well attended by cruise industry operators and other key stakeholders and served as a valuable planning session ahead of the first cruise vessels arriving at the end of October. Napier Port chief executive Todd Dawson says demand for the upcoming season is robust.

The current schedule has more than 80 cruise calls to Napier booked during the upcoming season, which runs from October through to April. This includes 20 double days – two cruise vessels in port at the same time.

“Napier Port is excited to welcome back cruise ships and our team is busy preparing for the upcoming season. “We’re confident that Napier Port and Hawke’s Bay remain attractive destinations for the cruise industry and demand for the upcoming season is robust.” Todd says the first cruise ship booked to visit Napier is the Ovation of the Seas, which at 347.08 metres long is also the largest vessel to come into Napier Port. The last booking in the schedule is the Grand Princess (290 metres), currently set to visit on 6 April 2023.

“Our fulltime cruise coordinator role will be in charge of cruise operations on port for the season, with support from our cruise customer service team. We will begin recruiting for these roles this month,” says Todd. He says that while operations to welcome the ships back were going full steam ahead, public health is still of utmost importance. “In regard to public health, Maritime NZ will be releasing guidance for ports in the next few weeks.

We are waiting on that first and will then be working through some desktop exercises with our local stakeholder group, including Te Whatu Ora – Te Matau a Māui Hawke’s Bay (formerly Hawke’s Bay District Health Board) and NZ Customs.” A big game changer for Napier Port this cruise season is the new 350-metre 6 Wharf (formally called Te Whiti), which is multipurpose and capable of berthing the largest cruise vessels coming to New Zealand, including the Oasis-class liners, as well as container and bulk cargo vessels.

“Our marine team are still in the planning stages, including pilot marine simulator trials, for berthing cruise vessels at 6 Wharf and so it is too early to confirm the exact berth for the arrival of the first cruise ship of the season.”

Given the location of the port, the city of Napier is the first to benefit from the influx of tourists disembarking from the ships. Napier City Council manager business and tourism Steve Gregory says the council plays a significant role in Hawke’s Bay’s tourism offering, being responsible for some of the region’s biggest and key visitor experiences, attractions and assets, especially for families.

“The National Aquarium of New Zealand, Par2 MiniGolf, Faraday Museum of Technology and MTG Hawke’s Bay keep many families busy for the best part of two days. All bar one are based on Marine Parade. “Next to Par2 MiniGolf is the Napier i-SITE Visitor Centre, which was recently announced a Tier 1 site. This is the top tier for visitor centres, as outlined in the i-SITE NZ Future Network strategy.” Steve says council staff work closely with Hawke’s Bay Tourism, including on regional marketing campaigns.

“Recent campaigns targeting our key market of Wellington/lower North Island have been very successful. We’re close enough to attract people from the capital for long weekends. “Given three quarters of our visitors annually are domestic rather than international, this sector locally has been able to survive the worst of COVID-19.” When it comes to promoting the region to cruise ship passengers, Steve says the ship companies pass on information about the region they are visiting to each passenger planning to disembark the night before arriving. “Independent cruise passengers are welcomed at the wharf and given a map and some information about independent tours (tours that are not booked through the cruise ship).

Ambassadors and consultants at the Napier i-SITE Visitor Centre answer any questions passengers have regarding gardens, walks, places of interest and free things to do.” He says that information about the cruise ships coming into port are given to Napier retailers and tour operators.

A communications plan for this coming season is currently being worked on. Hamish Saxton says that Napier has always attracted positive reviews from passengers, particularly due to the Art Deco architecture. “Compared with some other New Zealand ports, the ease and speed of shuttles from the ship to the CBD has positive benefits for passenger experience and excursions.

Napier Port, Napier i-SITE and Hawke’s Bay Tourism are currently working through a return to cruise strategy, which allows us to identify any potential concerns.” He says that Hawke’s Bay Tourism sees its role as acting as a facilitator between the region’s tourism providers and those organisations that sell tours and activities on behalf of, and onboard, cruise ships.

“We create introductions and networking opportunities that ensure Hawke’s Bay and our operators make the most of this captive audience. Hawke’s Bay Tourism also provides information for onboard marketing, we participate in New Zealand Cruise Association events, and we take responsibility for general relationship management within this sector. We are members of the New Zealand Cruise Association, along with Napier i-SITE and Napier Port.”

Hamish says there is certainly a lot for cruise ship passengers to do when they get into port, with options ranging from the onboard recommended/endorsed tours to those the passenger organises independently. Some of the more popular activities or excursions include Art Deco vintage car and walking tours, gannet tours at Cape Kidnappers, food and wine tours, farm experiences, sightseeing experiences and Napier retail.

“It is also worth noting that there are ships where crew may be able to disembark. Some of the key activities they enjoy include cycle hire, cafes, retail and gyms.” Hamish says that it is important to view cruise ship visits as events. “As information has already been provided to the cruise lines months in advance, the work of Hawke’s Bay Tourism is largely done by the time the ship gets here. Then it is the role of Napier Port to manage the disembarkation process, and the Napier i-SITE Visitor Centre to assist with any booking and information enquiries.

“Collectively, we’ll be ensuring that our members and the Napier Business Association have the information to understand the schedules and ship profiles so that they can make informed decisions about staff resources and opening hours.”

Hamish says that while cruise ships don’t come in port for a specific purpose such as Art Deco weekend, two ships will be in port for the next festival and are expected to bring in nearly 30,000 visitors. For local tourism operators, the news is just in time. October 24 will be a day of celebration for Gannet Safaris Overland, of which 38 percent of its business comes from the cruise industry.

General manager Sophie Phillips says their team is made up of passionate drivers/guides who love highlighting the wonderful Cape Kidnappers and sharing their knowledge of the gannets, Hawke’s Bay’s history and the wildlife sanctuary. “October 24 will be a celebration day for sure!

It will be wonderful to welcome cruise passengers back into Hawke’s Bay. The cruise industry made up 38 percent of our business before the boarders closed, followed by another good 32 percent of international visitors. This has of course left a huge gap over the last two and a half seasons. “We managed to keep all of our staff on, be it with a very minimal roster. We had to put a halt on pretty much everything with minimal budget available.”

Sophie says the company focused on the domestic market and in particular regions within a certain drive time of Hawke’s Bay. “It’s certainly looking and feeling like it’s going to be all guns blazing this season but we will take it in small steps.”

Sophie recently had the experience of going to Los Angeles with Tourism Minister Stuart Nash and Tourism New Zealand. “The event is Kiwi Link and it is held over three days. There was an exciting buzz that New Zealand has opened its borders again and, of course, finally now our maritime borders are open too. Promoting Hawke’s Bay as a region and Gannet Safaris Overland was a huge success.”

Exploring the relationship between business performance and wellbeing

Leading and owning a business has always come with both risks and rewards. It can bring high levels of personal satisfaction, professional development and growth. And for some, it can offer increased independence, lifestyle, flexibility and financial rewards. Yet, such roles also present challenges – many of which have potential to place your mental wellbeing at risk.

Against a backdrop of COVID-19, inflation, supply chain challenges, along with unstable economic, political and climate conditions, many businesses are finding it hard to plan – and for some, their financial situation is becoming increasingly fraught. Wellbeing and business performance are both areas which receive regular coverage.

But what is the relationship between the two among New Zealand’s business leaders and owners? BDO has recently surveyed NZ business owners in the hopes of better understanding this relationship and to offer practical tips and purposeful guidance – centring on the ways business leaders can maintain their business financial performance to minimise potential pressures on wellbeing.

Financial Management in your business is key to wellbeing

Just over one-third (36%) of respondents who indicated they had been feeling less mentally healthy than normal said that financial-related concerns in their business were contributing to this and Cash flow was specifically mentioned by a number of respondents as being a stress point. Retail, healthcare and tourism business leaders returned the lowest wellbeing indicator scores at the time of surveying – not surprising given the ongoing impacts of COVID-19 on these businesses.

In contrast, business leaders in the construction sector and agriculture sector returned higher than average scores. These results likely reflect a strong pipeline of construction work and favourable recent product prices in the agriculture sector at the time of surveying (late May).

Retail and Tourism sectors in Hawke’s Bay have a somewhat symbiotic relationship and have been hit particularly hard these last few years. While local initiatives to boost domestic tourism are to be commended, the reopening to the international tourism market and upcoming summer season provides real hope and opportunity for these sectors.

Ensuring that Business owners and their teams are prepared from a strategic and wellbeing perspective to take full advantage of these future prospects requires planning for now.

Top tips for managing financial performance

  1. Create a solid business plan that you regularly return to
  2. Stress-test your business plan and financials against various scenarios
  3. Financial upskilling – Get a strong foundation in financial literacy
  4. Ensure you have strong relationships with your lenders so you can access additional resource when needed
  5. Set aside time to think strategically.

What are the critical success factors for your business and what KPIs will help you get there? The business leaders who tend to perform the strongest are the ones who understand their finances and also what their critical success factors are. Put simply, you don’t know what you don’t know, and a lot of business owners are so focused on keeping their operations going that they don’t necessarily get a chance to think strategically about what success means to them.

When faced with poor mental wellbeing, the importance of being able to clearly outline, identify and measure your success cannot be underestimated. Being able to define your success, or in times of pressure; redefine your success, provides you with perspective and an overview that is so often lost in the murkiness of day to day operations.

It is often said that small and mediumsized enterprises are the backbone of New Zealand’s economy. However, at BDO, we acknowledge that it’s the people running these businesses who are the real heart of the business sector – and through supporting your wellbeing we can help you achieve your dreams and drive sustainable economic growth for Aotearoa.

The Value of Hawke’s Bay Property

In November last year the NZ residential property market was running hot, as it was locally, evidenced from ever increasing values, the peak of which appeared to be in the latter part of last year. One could only wonder how long the upward trend could be sustained especially as there had been no letup in buyer fervour since the end of the first lock-down in 2020. To be frank some of the value levels achieved were simply eye watering.

Market conditions have a direct bearing on the property’s market value and Williams’ Harvey (WH) accumulates a library of research from numerous commentaries and views of economic/research analysts to build a ‘big picture’ oversight.

Looking at our most recent data sets, the year to date (YTD) Hawke’s Bay volume of sales is down 34.7% from previous month and 33.3% from previous year. It is also well reported that there is plenty supply of houses for sale and yet the volume of sales in Hawke’s Bay is the lowest for the first six months of a year recorded for over 20 years. Furthermore, the amount of time a property is on the market has also increased to 66 days, the highest recorded time since January 2009.

So, with volume down, time on the market to sell increasing and plenty of stock tilting the market towards the buyer, it is not surprising that we are starting to see some downward pressure on house values. Consequently, vendor’s are starting to realise that they have got to accept adjusted values. At the time of writing this article ANZ had also revised its forecast for how far house values would fall, increasing the predicted drop from 12% to 15% from previously.

This adjustment was attributed to the prediction that economists are now flagging inflation to peak at higher rates than first predicted and become less transitory and more persistent in duration. In response the RBNZ has raised the OCR 150 basis points (bp) since February 2022. The most recent MPS announcement (13 July) saw this go up 150 bps to give an OCR of 2.5%. Whilst raising the OCR was predicted, what has been widely unexpected was just how aggressive the MPS forecast track for the OCR would be with another 50bp increase also predicted in August. So whilst NZ joins most other countries as it transits out of its pandemic response phase, the post pandemic ‘new normal’ is still going to be economically tricky for the foreseeable future. The net result being downward pressure on house values.

Since the beginning of the year, we have been put on notice that there were significant head winds that would cool the property market, and these appear to be coming into play However, given the exponential growth experienced by the property market in the last 24 months this also needs to be seen with some perspective. For example, in February 2020, the month before the impacts of the Covid-19 pandemic hit the property market the Hawke’s Bay Median Sale Price (MSP) was $516,000.

The market exploded and peaked in November 2021 when the Hawke’s Bay MSP hit $830,000. The latest MSP data we have for June 2022 is recording a decrease of nearly 17% since November 2021, however, there has been an overall 33% increase in the Hawke’s Bay MSP since the beginning of the pandemic.

NZ continues to operate in a pandemic response environment as the highly contagious Omicron variant runs its course through the population. As signalled, this has and will continue to impact productivity as human resourcing disruptions, a tight labour market and supply constraint issues become part of day to day business management. Also, as signalled, inflation both at home and overseas is the predominant economic nemesis.

These inflationary pressures are further exacerbated by wider economic fallout from the current geopolitical crisis stemming from events in the Ukraine and the flow on effects from rising fuel costs and economic sanctions that will have a direct impact on global financial markets and supply chains.

Subsequently, we are currently seeing a slow down with good supply yet low volume of sales, longer periods to sell and the subsequent easing of values. This is a comparable trend being seen throughout many NZ regions, though it’s important to put this in perspective and remember that before the pandemic MSPs were approximately 33% lower, so even if the market does experience a 15% value decrease, values still remain higher than they did two years ago.