About Damon Harvey

Damon is the editor and publisher of The Profit. Damon has over 20 years experience as a journalist, content developer, marketer and public relations specialist. Damon is a huge advocate for Hawke's Bay businesses and The Profit was created as a platform to celebrate HB businesses and business people. Damon is also a director of Attn! marketing pr - www.attn.co.nz alongside wife Anna Lorck. He is also a Hastings District Councillor and chairman of Sport Hawke's Bay. In his spare time he loves surfing, mountain biking, crossfit and spending time with his family, which includes five girls! If you've got a great story contact Damon on 021 2886 772 or damon@theprofit.co.nz

PROPOSED TOURISM FUNDING CUTS WILL HAVE CATASTROPHIC EFFECT

Proposed funding cuts to Hawke’s Bay Tourism will have a catastrophic effect on the region’s economy, with more than $250 million likely to disappear from local businesses, if the cuts go ahead.

Hawke’s Bay Regional Council’s proposal to defund visitor attraction over three years would, in reality, force Hawke’s Bay Tourism to shut up shop in July with the lights going out on many iconic events, the end of Hawke’s Bay’s off-shore profile, and a flow-on hit to many local businesses and workers – not just in tourism, says Hawke’s Bay Tourism Chairman and leading tourism expert George Hickton.

The region’s visitor economy will contract by at least 20 percent – or $260 million – over the three-year lifespan of the regional council’s Long Term Plan, if the regional tourism organisation is forced to close, says the former Chief Executive of Tourism New Zealand.

“Hawke’s Bay Regional Council’s preferred option is not an option at all. It is simply not viable. It would see a closure of Hawke’s Bay Tourism on July 1, and along with it the end of a thriving visitor economy, one of the most important economic drivers for Hawke’s Bay,” says Hickton.

Hawke’s Bay Tourism is fighting to protect the region’s visitor economy, after Hawke’s Bay Regional Council this week sent their Long Term Plan (LTP) to community consultation.

Two options are being considered in the LTP for investment in visitor attraction:

  • HBRC’s “preferred” option proposes Hawke’s Bay Tourism is completely defunded over a period of two years, with significant funding cuts within the first year.
  • The second option – Option B – is Hawke’s Bay Tourism’s counter proposal, which is supported by the region’s mayors and sees funding maintained at its current level of $1.52 million for FY24/25, with local councils agreeing to step in and fund visitor attraction directly alongside HBRC for the final two years of the LTP period.

More is at risk than people realise if Hawke’s Bay Tourism is shut up shop, says Hickton, with many events and activities forced to cancel, including:

  • F.A.W.C!
  • The Great Wine Capitals Global Network programme
  • Hawke’s Bay Tourism’s support of the Hawke’s Bay Marathon
  • Significant out of region promotion for major events, including Art Deco Festival
  • Promotion of the region outside of Hawke’s Bay
  • Profiles of the region within media publications, online and on TV
  • Extensive travel trade programmes and relationships
  • hawkesbaynz.com and Hawke’s Bay NZ social media channels

“Simply put, other regions would snap up our market share and Hawke’s Bay would become a tourism backwater,” he says.

“The very Hawke’s Bay way-of-life that so many people come here for, would be at risk. The $1.3 billion of direct and indirect benefit to Hawke’s Bay spreads far and wide. Only 20 percent of this goes to tourism businesses, with the rest going into the community and helping fund the lifestyle of locals.

“Councillors say this is a plan of recovery and resilience and with eyes to the future . . . however it massively threatens the resilience of the region’s economy.

“Hawke’s Bay’s visitor economy is the third highest contributor to regional GDP, it employs one in 10 locals. What’s more, Hawke’s Bay Tourism is the only element of the Regional Council’s remit that drives economic revenue. The rest of their activity is about spend with no revenue.”

Supporting the sustainability and resilience of Hawke’s Bay’s visitor economy is not a luxury, says Hickton.

“If we take our foot off the accelerator now and long-term damage is done, it will take much more money and a very long time to catch up lost ground.

“So, we are vigorously advocating for Option B and are encouraged by the formal support from Napier City, Hastings District and Central Hawke’s Bay District mayors to make this happen.

“A vibrant visitor economy is not just good for tourism and hospitality businesses and their employees; it’s good for everyone,” says Hickton.

Funding loss could limit public access to Te Mata Park

The loss of vital funding from the Hawke’s Bay Regional Council will set Te Mata Park back by a decade and will fail to protect the region’s most popular recreational and tourism asset.

The Hawke’s Bay Regional Council Long-Term Plan proposal to pull its $120,000 a year Park maintenance funding will see Te Mata Park Trust launch a ‘Protect the Peak’ campaign next week.

Te Mata Park Trust Chair Mike Devonshire said the huge growth in use of the Park requires more funding, not less. Over 1 million visitors explore Te Mata Park every year and since 2018 the  Park has been awarded the highly coveted Green Flag international award for well managed parks and green spaces, five times, ranking it one of the best maintained and managed parks in the world.

The Trust recently met with HBRC Chair Hinewai Ormsby and Chief Executive Dr Nic Peet as well as presenting to the HBRC Environmental and Integrated Catchments Committee with a plea to increase funding to $240,000.

Devonshire said, “We’ve been blindsided by the HBRC’s preferred option to pull funding for Te Mata Park – the jewel in the region’s crown.”

“There’s no way we can lose $120,000 in funding. We already need to try and find a third of our yearly operational funding, and this loss would mean we need to try and secure over 60% of our operational funding elsewhere. This is a huge ask. It would be a backward step and unbundle all the investment that has gone into enhancing the Park.”

He added that health and safety within the Park would become a higher risk without regular maintenance, and therefore the trust may need to consider some form of closures.

“We are a trust and we have a duty of care to uphold and I’m not sure if we want to any greater risk of health and safety due to a reduction in maintenance.

“You only need to look at what happened with the cyclone. It had a huge impact on the park with many trees destroyed but we had the financial ability to quickly do some work clearing tracks and re-open in five days.

Mr Devonshire said cutting Te Mata Park funding will have a miniscule impact on rates and he believed both ratepayers and all 184,000 residents would support investing less than $1 each to protect the Park annually.

“At the current HBRC funding level, it’s 65 cents per resident per year to look after the Park to its current standard and we think it should be $1.30, which will cover the cost of two fulltime maintenance contractors.

Key projects over recent years include purchasing addional land, a new visitor shelter, a Schools for Trees planting programme, public toilets, car parking, upgrading and building new walking and cycling trails, upgrading the Park’s water and effluent infrastructure,  and significant felling of dangerous trees.

Nearly 60,000 native trees have been planted in the last four years as part of the Trust’s native revegetation programme.

Hastings District Council is also a key funding partner, providing $120,000 for operational and administration support.

Bayden Barber, chairman of Ngāti Kahungunu Iwi Inc, and former Te Mata Park trustee, said the regional council has a cultural and social responsibility to protect and enhance Te Matā, Te Mata o Rongokako, Te Karanemanema o te Mata o Rongokako.

“As a community, we are called to protect our maunga (mountain), preserve its wild beauty, and ensure it is maintained as a sacred place for generations to come.

Hopes for food hub tenants soon

Hawke’s Bay will be served up a food innovation hub in early 2024, with a tenant prospectus now released and hopes for a first tenant to be in by June. Foodeast-Haumako, was the brainchild of Hastings District Council before setting out to find funding partners in 2019 for the $18 million project.

The Government’s Provincial Growth Fund $12m in 2019, with the Hawke’s Bay Regional Council’s investment arm – HBRIC stepping up with $4m with Progressive Meats investing $1m. Construction handover is expected to be by end of March. It is hoped the hub will create the next Watties or Apple Press food entrepreneurs.

Sir James Wattie, was a pioneer within the canned food industry, creating a Hastings business that has gone on to be a global empire and today part of Heinz Group. When Foodeast was launched it was estimated that it would add $100 million to the region’s GDP over 15 years and bring 500 new full-time jobs to Hawke’s Bay. The facility comprises two main buildings – Building A, an architecturally designed with net lettable floor area of 1,105m² to cater for up to five separate office tenancies.

The building has a spacious common area and a generous shared kitchen facility. Foodeast-Haumako has made a commitment to equipping the facility with a demonstration kitchen, which
is currently being scoped to ensure that it will meet market demands.  This is likely to be added after the official completion date and will complement the conference room, large and small meeting rooms and a central breakout space.

Trimming some costs in other areas of the build and some lateral thinking will be required, as the demonstration kitchen as originally envisaged was trimmed from the budget when Covid-related cost escalation required a rethink.

Foodeast-Haumako chair Dr Nicky Solomon says that the board is absolutely committed to ensuring that the building offers the appropriate facilities and soft-services to support the innovation requirements of the food industry.

“We need to make sure there is a place in the building a where food can be made but we need to make a call on what does that look like, and we need to ensure that what we provide meets the needs of our potential clients, and is as versatile as it can possibly be.”

Exclusive property agents Colliers Hawke’s Bay and director Danny Blair says beyond traditional office space, the building has the potential to accommodate events, conferences, one off meetings and food demonstrations, fostering a versatile environment. Building B offers four distinct warehouse tenancies of 629m² each which include 29m² of amenities and each have a canopy of 40m².

There has already been interest in the building B from Skybright, an innovative health food company, which in July 2023 took the opportunity to showcase the Hastings’ company’s work on fermentation-derived novel protein products, the stage they were at in the laboratory, and why the company believes Foodeast-Haumako is a good fit for it.

Nicky says the long term expectation is that the complex “washes its face” and returns a profit. HBRIC has an expectation of a 6% return on investment.

“It is critical that Foodeast-Haumako we achieve the best result for the shareholders, our Government partner Kānoa, Hawke’s Bay’s agribusinesses, and residents, who have an interest in the project through our shareholders.  We’re extremely grateful for the ongoing regional collaboration that has allowed Foodeast-Haumako to be created, and we’re laser-focused on ensuring its success.”

“If we look five years down the track and ask what success looks like, we see a facility that has supported innovative businesses, which are now maturing and graduating into their own premises in Hawke’s Bay, creating new jobs in the region and potentially new industries.  “We’re welcoming in new fledgling innovators who are benefitting from a collaborative environment and a supportive alumni.

“We’re sharing Hawke’s Bay success stories with our collaborators in other regions, and we’re connecting our local innovators with the wider food innovation ecosystem nationally and internationally.”

Danny says the zoning of the property ring-fences it for food and beverage related industries, which may include businesses in the agri-tech or food packaging markets and it is being marketed as suitable for ‘industry players seeking a collaborative and innovative environment’.

To enable that, collaborative ‘joined-up’ spaces have been designed to encourage sharing of knowledge and inspiration. It is envisaged that once the facility is fully operational, a service connecting businesses (whether tenants or external to Foodeast-Haumako) with the advice and support they need to develop new products or enhance existing ones
(things like testing, packaging, and marketing) will be introduced.

The service will have links to other main ‘food hubs’ across New Zealand, and specialists at universities and within industry that will be able to provide advice.

Business Profile – Int. Workspaces – Lifting the game in office fitouts

Int. Workspaces specialises in the specification, design, supply and installation of office spaces and furniture throughout New Zealand. Owned by Isaac and Tarryn Scott Int. Workspaces client base includes local councils, schools, government and corporations. Int. also have a specialised Library Division which is a preferred supplier for most local councils throughout New Zealand.

The process involves a detailed discussion with the client, a workplace visit and a chat about their needs and wants. int.workspaces will then design a layout which is presented in 3D form. Once the client is happy with the design a quote is prepared. The furniture and fittings will be supplied and installed and the client and employees can enjoy a brand new, comfortable, fully functional office space.

Int. Workspaces was called on to assist a large number of local businesses like Higgins Contractors, Ziwi and Ravensdown following Cyclone Gabrielle in February 2023. It helped that Isaac and Tarryn had an internal design, specification and installation team, and with businesses looking for assistance, Int. was able to lean on its expertise to provide a number of services to ensure each individual unique requirements were met.

Given the varied destruction caused by Cyclone Gabrielle each client had its own challenges to face in the days and months following. Int.’s ability to pivot to meet these challenges meant that businesses had a smooth transition into temporary spaces and then through to rebuilt spaces. Int’s assistance ranged from creation of asset registers for insurance purposes, temporary furniture, and office relocations for short term solutions through to design, specification, and installation of office fittouts following the rebuild of premises.

Niki Russell of Higgins Contractors Limited said team at Int.workspaces stepped up to refit their offices in Awatoto.

“It has been great to use a local business where their knowledge and experience has been fundamental in making this whole process easier.

“Having someone local has also meant that one on one meetings could be held where decisions about furniture or colour choices could be made on the spot, as well as having them on hand to do measure ups. Thank you, Team Int. workspaces,” Niki says.

Ravensdown was also significantly impacted, losing its admin building in Awatoto, forcing them into a makeshift Portacom village.

“Six months later we finally had a temporary office and we were introduced to Int. Workspaces by our project team. Int.workspaces provided furniture that best suited our workspace with options that aligned with our corporate branding. Being local meant we could visit their showroom to view samples and they even helped us move in. Their level of service meant we could carry on with business without the added stress of relocating and we now have a lovely space to work in,” said Tania Smith.

 

Ziwi had only opened their modern facility in Awatoto when the cyclone struck. They had worked with Int.workspaces for the initial fit out and was able to call on their services again.

Hannah Christensen of Ziwi Pets says “We are extremely grateful for the exceptional support provided by Int. Workspaces during the challenging time post Cyclone Gabriele. ZIWI Limited
(“ZIWI”), has always been very pleased to partner with Int. Workspaces during our formation in Hawkes Bay.

“However, following the February floods that damaged our offices, Int. Workspaces reached out and went above and beyond – not only offering temporary workspace for our people who were displaced but also by swiftly providing temporary furniture to ensure our teams could resume operations promptly where possible. “Throughout the rebuild and reopening process, the collaboration between ZIWI and Int. Workspaces has been seamless.

Both teams have been working closely to compile asset registers and replacement value quotes for our insurers, demonstrating both parties’ commitment to ensuring a smooth recovery process.

“What truly sets Int. Workspaces apart is their dedication to addressing immediate needs while assisting for the long-term. Int. Workspaces played a crucial role in setting up temporary offices for ZIWI efficiently, as we embarked on the cyclone rebuild and this partnership continues in our ongoing growth aspirations.

“We truly value Int. Workspaces in their expertise in designing and specifying workplace furniture, cafeteria furniture, and hospitality equipment – their expertise and experience is invaluable. Int. Workspaces not only provided a physical space to work but has become a trusted partner in our journey to recovery and for future projects in Hawke’s Bay and beyond (they’re national thank goodness!).

“Their professionalism, efficiency, and attention to detail have left a lasting positive impact on our organisation. Without hesitation ZIWI recommends the services of Int. Workspaces to any business in need of workspace solutions and support for day-to-day operations, growth and during challenging times,” says Hannah.

While int.workspaces services the whole of New Zealand, Hawke’s Bay is the hub of the business and it’s here that equipment is assembled and from there it’s transported to site, installed, wiring completed so clients have a fully operational workplace environment to move into.

Isaac and the team welcome inquiries from new and existing clients and look forward to working with you to ensure everyone has an integrated, intuitive, intelligent workspace. Their showroom is located at 407 Eastbourne Street West.

Conducting the moving parts of property development – Business Profile

Like a musical conductor, experienced property development managers Logan Taylor and Marcus Hill make many moving parts be in harmony to ensure development opportunities are maximised. Logan and Marcus have teamed up to launch Orchestra Property specialising in development management, project management and commercial property management.

“We are managing on behalf of developers a significant investment that in some cases can take many years to be realised. “We are conductors and we bring together the many parts of completing a successful residential, industrial or commercial development project for our clients.

“We put our arms around every part of the project, the developer and property owner, the wide range of expert consultants that form part of the team as well as having solid connections within local authorities,” says Logan.

Both Marcus and Logan have strong track records in development management and property developments prior to joining forces. Orchestra has already aligned with private developers, property fund managers, family trusts, iwi, post settlement governance entities and Māori trusts. Logan’s involvement in his family property development business inspired career moves to both Auckland and Wellington, where he moved into the development consultancy space, before moving home to start his own consultancy.

He’s cultivated a diverse skillset in commercial, industrial, residential and land development services for clients across the public, private and Māori sectors. Marcus’ background has also been in property including post-university study and work experience in Europe. He is a chartered member of the Royal Institute of Chartered Surveyors and is a licensed REAA agent. Before setting up his own consultancy he was general manager for a large HB property development company.

He’s also a licensed agent under the REAA and has been general manager for a large Hawke’s Bay property development company before setting up his own consulting business.

“We understand that every project is unique. Orchestra Property is committed to eliminating stress from the development lifecycle through sound advice, risk mitigation and a hands-on approach to client management and delivery.

Orchestra Property also offers commercial property management services and manages a multi-million commercial precinct in Joll Road, Havelock North, which has a wide mix of retail, hospitality and commercial tenants across two stages. Stage 3 of the complex is set to get underway soon.

“We take the hassle out of property ownership and our service includes all the tasks and responsibilities required to protect the investors income stream and optimise the value of the investment. Marcus says he and Logan have developed strong working relationships supporting Maori Post Settlement Governence Entities from Hawke’s Bay to as far north as Thames as they look to maximise their land holdings for the betterment of their people.

“Māori have different drivers in what they regard as a successful development, which is something that we have embraced. They’re not focussed only on profitability, they are also invested in ensuring whanau have a quality home in a subdivision that is also focussed on social and community outcomes.

“That’s not to say there’s not a close eye on the financial viability, that’s the role we play to ensure that the development is delivered to expectations. “We also attempt to break down red tape when it comes to streamlining a land or building consent and that’s where our strong relationships within councils plays a key role. We make sure that it’s as seamless a process as possible. Marcus has been instrumental in the success of a large scale development with Tamatea Pokai Whenua (the post settlement governance entity for Heretaunga Tamatea) on the eastern edge of Flaxmere that has been granted consent through the Government’s Covid fast track consenting process.

Orchestra has provided development management services for the circa 450 lot development named ‘Wairatahi’ from the initial purchase of 28ha of land, working closely with the commercial board and wealth managers along with managing of a large team of expert consultants from around the country.

“This is a game changing housing development that will be one of the largest of its kind in Hawke’s Bay, which will offer a mix of home ownership options and build a real sense of community.” Tamatea Pokai Whenua have invested in class leading designs with a strong focus on water management and riparian enhancement whilst seeking to deliver more affordable housing offerings in the Hastings area.

Orchestra Property worked closely with the Hastings District Council and the Hawke’s Bay Regional Council throughout the Government fast track planning process. www.orchestraproperty.co.nz

2024 will be at tricky year to navigate

Let’s hope that this year does not mirror the tumultuous start of 2023, marked by cyclones and market uncertainty as market conditions have a direct bearing on the property’s market value. Economic predictions and their outcomes, and impacts, specifically on the property market, remain an exercise in crystal ball gazing.

However, Williams’ Harvey accumulates a library of research from numerous commentaries and views of economic/research analysts to corral the trends and build a ‘big picture’ oversight and it seems timely at the beginning of the year to have a look at the local Hawke’s Bay picture.

There is consistent evidence to suggest the local property market (like much of New Zealand) is in transition as the volume of residential property sales has decreased, house value increases have shown a deceleration, the median days to sell have increased and levels of inventory have increased. The February 2024 REINZ report for Hawke’s Bay shows the January 2024 figures show that the MSP for Hawke’s Bay increased by 3% to $677,000 compared to January 2023, but back slightly to the December 2023 MSP. For New Zealand (excluding Auckland) the MSP has dropped marginally year on year (-0.7%) to $760,000 month-on-month compared to the same time in 2023.

There are some predominant factors contributing to the current environment. Firstly, the cost of living has irrefutably increased with rising inflation. Secondly, the aggressive measures taken by RBNZ to curb this inflation with the steep OCR hikes which increase mortgage security lending interest rates.

Thirdly, a lack of access to finance due to the amendments to the Credit Contracts and Consumer Finance Act (CCCFA) which came into effect in December 2021. These amendments have seen lenders apply draconian assessment parameters to buyers applying for mortgage security funding. The total number of properties sold across New Zealand in January 2024 increased 4.9% year-on-year to 2,995 and decreased 44.1% month-on-month from 5,357.

The current median Days to Sell of 45 days is more than the 10-year average for January which is 42 days. There were 16 weeks of inventory in January 2024 which is 8 weeks less than the same time last year. The pressure for value growth continued through to 2021, levelling out in 2022 and reducing in 2023. The Hawkes Bay volume of sales recorded for 2022 was the lowest annual volume Hawkes Bay has recorded in over 30 years. This low volume of sales continued for 2023 which recorded a slight increase in the volume with 2,029 sales, however, is well back on the higher volumes recorded 2015 to 2021 where volumes of sales ranged between 2,517 and 3,110 per annum.

However, to put it into perspective there has still been significant value growth in a relatively short time frame. Analysis of the last five years of activity shows that the MSP table (the median of the monthly MSP recorded by REINZ) shows an increase of 38.16% on pre-pandemic values.

Annual medians (as expressed in the table) can be misleading, therefore, we have also analysed the REINZ statistics into Quarterly blocks and compared to the MSP of each previous quarter. The heat of the market peaked in Q4 2021, however, each successive quarter in 2022 produced a negative result with a declining MSP which continued into Q1 of 2023, after which the market stabilised and firmed in Q4 2023.

The quarterly volume of sales increased each quarter from Q1 2023 at 401 sales through to Q4 2023 at 574 sales. This indicates market conditions became more positive as the year progressed. New Zealand is now well the other side of the pandemic.

Inflation at home and overseas is still the predominant economic nemesis. Some pundits predict the tide may finally be turning, albeit slowly, whilst others forecast more hikes due to strong employment data. So, there is still some way to go before the ‘war on inflation’ is won as this is still well outside the RBNZ’s target band. There are a couple of new variables that look set to play a key role in dominating the economic outlook for 2024, being the impacts of migration, and fiscal policy. Once again 2024 is shaping up to be another tricky year to negotiate.

Unison invites community contributions to mark centenary

Unison is proud to celebrate 100 years of powering Hawke’s Bay on 19 June 2024 and is inviting contributions from the community to collectively tell the story of Unison’s journey in the region.

From its establishment as the Hawke’s Bay Electric Power Board on 19 June 1924, Unison has been an integral part of the local economy and Hawke’s Bay. The centenary offers a unique opportunity for reflection, celebration, and anticipation of what the future holds.

A focal point of the centennial celebration is the collection and display of stories that detail Unison’s journey over the last 100 years. Unison is inviting current and former staff, and all those who have been a part of its journey to share stories, photos and items that can be showcased as part of an interactive exhibition at the Faraday Museum in Napier from June through August. Evolving from a small local lines company to a group of specialist electricity companies located all over the world, Unison continues to innovate and grow all whilst powering its regions of Hawke’s Bay, Taupō and Rotorua.

Unison has powered countless homes, supported the development of business and economic growth, and backed the wellbeing of its communities through its wide range of sponsorships. Unison Group Chief Executive, Jaun Park shares his enthusiasm for the centenary, underlining the vital role of community participation in enriching the celebration.

“We’re proud of our history and the role we’ve played in the community for the past 100 years. As we mark a century of service, it is essential to honour and acknowledge the people who have been a part of our journey. This milestone not only allows us to reflect on our past achievements but also serves as an inspiration for future innovations. “We want to hear from everyone connected to Unison’s story, past and present. This is not just Unison’s history, this is the shared history of our region.

Celebrate with us, share your memories, your photographs, and your stories for everyone in the community to enjoy,” said Mr Park. Unison has set up a special Facebook group named “Celebrating 100 Years of Unison(Hawke’s Bay Electric Power Board)” where everyone can share their memories, or you can make contact via email or post.

For more details visit www.unison.co.nz/100-years

 

More funding needed for road to recovery in Hawke’s Bay

Hawke’s Bay leaders are calling for more government funding to rebuild the region’s extensively damaged roads and bridges.

As the powerhouse of its local economy, the region’s primary sector and associated supporting services rely heavily on a reliable and resilient roading network.

Whilst Councils are grateful for the Government support received to date and as a result have made good progress repairing damage over the past twelve months, there is still so much work to do. The reality is, however, this comes with a price tag far too high for ratepayers to bear and without additional funding support, much of this critical repair work won’t be finished in a timely manner and some is unlikely to be completed at all.

Across Central Hawke’s Bay, Hastings and Wairoa around $1.1 billion worth of damage to local roads was caused by Cyclone Gabrielle, approximately $700 million of which is currently still unfunded.

These were the overarching messages in a meeting held today in Wellington between Prime Minister, Christopher Luxon, local mayors, Chair of Hawke’s Bay Regional Council, the Regional Recovery Agency and mana whenua representatives.

Hastings Mayor, Sandra Hazlehurst says roading infrastructure repair and access remains a core priority for much of the region.

“In the Hastings District, damage to our roads and bridges as a result of the cyclone totals $800m which is a huge investment and one we simply can’t afford on our own.

“We had a really constructive conversation with Prime Minister Luxon about the need for further government support over an extended period of time. This is vital for ensuring as a region, we have confidence in our ability to restore a roading network our communities and our economy can rely on.”

She says Cyclone Gabrielle has highlighted the need for central Government to review its overall approach to roading recovery funding to enable local economies to get back up and running faster after significant emergency events, which are undoubtedly becoming more frequent in nature.

“Specifically, we are asking for a combination of enhanced funding rates and bespoke additional funding assistance that would see central Government cover the cost of the majority of the remaining roading repairs, with the balance to be funded through council rates.”

Mayor of Central Hawke’s Bay and Co-Chair of the Matariki Governance Group, Alex Walker says in Central Hawke’s Bay alone, without this additional support they are staring down the barrel of decades worth of work at the current government funding rate or, alternatively, rate rises that would cripple the community for years to come.

“If we can get the funding assistance we need however, we can complete the work in five to six years, get our primary sector and overall economy back on its feet sooner and position Hawke’s Bay as key player in helping this government with its goal of doubling the value of exports in the next ten years.”

She says restoring a strong gate to market connection as quickly as possible is vital to achieving this, so farmers and growers can efficiently bring in the raw materials they need and then send out finished product, for processing and delivery to overseas markets.

“With various roads and bridges still out of action, lengthy detours are resulting in additional costs falling on our already hard-hit primary sector businesses.

“We understand the impact also extends beyond the economy and for some in our communities, extended travel times are taking a toll financially and mentally.”

Co-Chair of the Hawke’s Bay Matariki Governance Group and Chair of Tātau Tātau o te Wairoa Trust, Leon Symessays whilst as a region there is a shared commitment to restoring a roading network that can support a thriving economy for Hawke’s Bay, there is no question further support from Government is critical to delivering this.

“Councils have been working together with the Regional Recovery Agency to develop a phased and sequenced programme of work that captures the full picture of roading repairs required across the region, inclusive of the funding assistance required to deliver this.”

He says the region’s leaders recognise the need to balance both the fiscal constraints of central Government as well as their own resourcing constraints in regard to carrying out such a large programme of work.

Mayor Walker says Councils are open to how and over what period of time additional support is allocated, which aligns with a commitment made to building and maintaining a long-term credible partnership by only asking for what the region can actually deliver in any given time period.

“With a firm commitment to material levels of support over the next several years we can ultimately plan for a better future for the region, and we will continue working with central Government to achieve this.”

Speeding up both the Government-led Kaupapa Māori pathway for Category 3 land and programmes to address the regions severe housing shortages were also discussed in today’s meeting.

Acquisition of Bostock Brothers Limited in New Zealand

Inghams Group Limited (ASX: ING) (Inghams, Company) today announces its intention to acquire 100% of the Bostock Brothers organic chicken business in New Zealand for NZ$35.3 million (approximately A$33.0 million).

Key points

  • Acquisition of New Zealand’s only organic poultry producer with premium market position is strongly aligned with Inghams strategy
  • Acquiring 100% of the shares in Bostock Brothers Limited (BBL), including the brand with respect to poultry products, three freehold farming properties and the primary processing plant
  • Completion expected by end September 2024

Inghams CEO and Managing Director, Andrew Reeves, said: “With the strong recovery in operational and financial performance of our New Zealand business, this acquisition represents a unique opportunity to further enhance our capabilities, extend our range and advance our plans for the business.”

Commenting on the acquisition, Inghams Chief Executive, New Zealand, Edward Alexander, said: “The addition of the highly regarded premium Bostock brand and team strongly aligns with our objective to establish Inghams as the leading premium operator in the market.”

BBL overview

Established in 2014, BBL is the only certified organic producer of poultry in New Zealand. BBL’s operations are located in Hastings, on the central east coast of the North Island, approximately four hours from Inghams Waitoa operations.

BBL is expected to deliver FY24 EBITDA of between NZ$3.5 – 4.0 million1.

The acquisition is forecast to be immediately EPS accretive to FY25 earnings and, including identified synergies, is expected to generate a Return on Invested Capital meaningfully in excess of Inghams hurdle rate.

Strong alignment with strategy

The acquisition strongly aligns with Inghams strategy to establish the Company as the leading premium operator in the New Zealand market in the following ways:

  • Exclusive Market Positioning and Brand Equity: BBL is uniquely positioned in the New Zealand poultry sector, boasting strong brand recognition and a premium product range.
  • Vertically Integrated Supply Chain with Capacity for Future Growth: BBL’s vertically integrated supply chain enhances our operational resilience, provides contingency, and additional capacity to support future growth initiatives.
  • Access to new markets: Opportunity to leverage established high-value export channels to expand Inghams reach into new geographic markets and customer segments.

Funding & completion The acquisition will be fully funded from existing debt facilities, and is contingent upon the satisfaction of conditions, including with respect to the Commerce Commission and Overseas Investment Office. Completion is expected by end September 2024.

Flood protection work in Hawke’s Bay a step closer

Cabinet has agreed to engage on a proposal for a temporary change to legislation under the Severe Weather Emergency Recovery Legislation Act 2023 (SWERLA), which would speed up the delivery of flood protection work across Hawke’s Bay.

On the back of Cyclone Gabrielle, Hawke’s Bay Regional Council has earmarked seven areas where new flood infrastructure would see category 2A and 2C properties reclassified to Category 1 and one area where new flood infrastructure would protect an industrial area as well as Napier’s wastewater treatment plant. These areas are Wairoa, Whirinaki, Waiohiki, Ohiti Road/Omāhu, Pākōwhai, Havelock North, Pōrangahau and Awatoto.

Since the cyclone and other severe weather events in early 2023, laws have been changed on a range of issues to help recovery efforts across affected regions. The mechanism being used to do this, which is what is being proposed in this instance, is a piece of secondary legislation called an Order in Council (OiC).

Hawke’s Bay Regional Council Chair, Hinewai Ormsby welcomed the decision by cabinet, saying the order would provide a streamlined process for the multiple resource consent applications that would inevitably be required before construction of any planned flood infrastructure could begin.

“This will play an important role in enabling work to start sooner and progress to be kept on track, whilst ensuring the usual protective measures of cultural and environmental impact assessments will not be compromised.

“Ultimately we want to be able to provide certainty for our Category 2 property owners that they have a pathway to Category 1 and this is reliant on consent for new flood infrastructure works in these areas.”

She said whilst Council acknowledges each Category 2 community is at a different stage in the process, the reality is that regardless of the preferred solution there will be resource consents required to undertake the work.

“In Wairoa and Pōrangahau, we are still working through options with those communities at this point, but it is reassuring to know when we get to the consent stage we will be able to move through this process efficiently.”

The Ministry for the Environment (MfE), on behalf of central Government, is running a public engagement on the proposal which finishes on 18 March. Details of this engagement are available on the Ministry for the Environment website.