24 October 2006

Most of us simply don’t care about energy!

‘…we are not only ignorant of what energy is, and the critical role it has played and
Continues in economics and politics, but most of us simply don’t care about energy ’

As a nation, until recently, we simply ignored the inevitability of depletion of current energy stocks. There has been no urgency in exploration or generation of future power supplies.

On top of this we lost sight of the fact that as our demand for energy increased we would one day reach a point that the service life of our aging transmission and distribution networks would be placed at risk.

Energy and our reliance on a reliable energy supply has become ubiquitous to our every day lives. In other words – we expect the lights to go on every time we flick the switch without fail.

We believe that this is still the case today among kiwis and kiwi businesses.

Given the interest in the Marsden-b refiring it might be handy to look at a few facts and decide on where the Northland Chamber of Commerce stands.

Facts

- MRP is looking to fire up the Marsden-B power plant
- The plant was originally designed as an oil powered plant
- Oil is relatively expensive in comparison to coal supply
- The Plant is being modified to be fired by coal
- New Zealand’s Power use is growing by between 2-3% per annum which equates to new generation of 120MW each year
- Power retailers are investing heavily to ensure security of electricity supply for New Zealand
- The potential output of the Marsden-B plant is 320MW
- Resource consent has been granted to fire the plant however this is now before the environmental court as appeals have been lodged.

Energy policy is being given heightened consideration worldwide due to dramatic price increases, potential future constraints on fuel supplies and widespread acknowledgement of the threat that climate change poses.

The Northland Chamber of Commerce is concerned with future security of power supply for the following reasons

- The cost to the end user of escalating power prices affects our competitiveness as a global producer of goods and services and therefore has an impact on our economic performance.
- The effect on the global environment of some types of power generation
- The scarceness of some Raw fuel supplies (Generation) and the deteriorating infrastructure that carries power from the generation to the end user (transmission).
- Energy has an essential role in modern societies for underpinning economic performance. As a consequence, we believe that energy is one of the more important issues facing Northland.
- The ability to sustain and expand existing Industry and attracting new Industry is dependent on a reliable and affordable energy supply.
- In recent years it has become evident that the lack of available energy for current and projected demand is a major barrier to Regional and National Economic Growth.

In the Speech from the Throne last year (2005), the government announced it would explore various energy scenarios to develop a New Zealand Energy Strategy. In addition, the address stated that "Priority will be given to renewable energy sources." and that "A more aggressive approach will be taken with respect to energy efficiency…”

This is fine - however Northland communities are using increasing amounts of energy and are becoming increasingly reliant on the delivery of high quality energy services. Our members are asking how as a region we can do better in meeting our future energy needs and what the alternatives are.

In a recent quick survey to Northland Business, initial indications are that 65% of members support the Marsden-B station being fired up and 35% do not support this particular medium.

100% of respondents to date do agree that building capacity now for the future of the Northland Economy is essential.

If the Northland Chamber was asked `I want to set up an energy- intensive manufacturing business in Northland and want some security that for the next 10 years that I will have reasonably reliable electricity at a reasonable cost', how would we answer this question as the situation currently stands?

For this reason the Northland Chamber of Commerce would support the Re-firing of the Marsden B Power station within a sustainable energy framework. (As determined by the RMA)

Tommorrow at the Employers Services / Chamber conference Warren Moyes and Mark Gatland from Northpower will be addressing a session on security of electricity supply. We encourage you to take part in this conference and invite you to call us today to register.

The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 27,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz

You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com

05 October 2006


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Northland Businesses most optimistic

Business confidence in provincial centres is continuing to trend upwards in a survey of 500 business respondents undertaken electronically by the Northern Regional Chambers of Commerce late last month.

For the third successive quarter the level of business optimism in Northland, Waikato, Bay of Plenty and Rotorua has increased in both the general business situation and how respondents assess the prospects of their own business in the period ahead.

The findings are strongly consistent with trends of a similar survey of urban Auckland businesses in the second half of September.
Key messages from the survey that asked businesses to look ahead at conditions for the next six months shows that business confidence has improved from just 8% of respondents predicting the general situation to improve last December to 27% of this view in the survey conducted last week.

In respect of how respondents see their own business situation over the next six months, 60% predict they will improve compared with 38% of this view last December.
Commenting, Chamber Chief Executive Jeff Smith notes that confidence has increased in each of the last three surveys.

“This result suggests Chamber members in provincial centres as a group are defying the negative talk that is persisting in certain quarters. The evidence shows that an increasing number of businesses have ‘put negativity to one side’ and are taking their own decisions to move forward.”

At the end of the day, the strong self belief of many businesses is starting to dominate. “The survey findings show that just 20% of provincial businesses are picking the business environment to get worse in the next six months, compared with 33% who held this view at the previous survey in June and the low point of 56% in the survey last December.”

Main survey findings were:

On Confidence
• 20% of provincial firms believe conditions for business will get worse over the next six months, compared with 33% in the June survey, 36% in March and 56% last December. 27% now believe conditions will improve compared to 16% in June, 12% in March and only 8% last December. In urban Auckland 25% believe conditions will get worse over the next six months, down from 40% in June, 49% in March and 59% last December. The result suggests marginally less pessimism in provincial areas than urban Auckland about prospects in the next 6 months.
• 92% of provincial firms believe conditions for their own individual business will stay the same or improve over the next six months, up from 89% in June, 86% in March and 80% last December, while 40% believe they will stay the same or get worse, compared to 50% in June, 51% in March and 61% last December. Comparable figures for urban Auckland were 86% expecting conditions to stay the same or improve and 53% expecting conditions to stay the same or get worse, reinforcing the view that provincial centre businesses are less pessimistic about the future than their urban counterparts.
• 60% of provincial firms believe that conditions for their own business will improve over the next six months, compared to 49% in June, 48% in March and 38% in the December survey. Comparable figures for urban Auckland were 48% in the latest survey, 41% in June, 40% in March and 35% last December.
On Skills
• 41% of provincial firms believe it will continue to be harder to employ people with the right skills, compared with 39% of this view in June. Comparable figures in urban Auckland were 39% in the latest survey and 37% in the June survey.
On Interest Rates
• 39% of respondents believe interest rates will rise, compared with 43% in June, 36% in March and 85% in the December survey. Urban Auckland shows a similar trend, with 43% in the September survey expecting interest rates to rise, compared with 44% in June, 33% in March and 85% last December.
• 11% of provincial respondents believe interest rates will decrease in the next 12 months compared to 9% in June, 23% in March and just 1% who held this view last December. Comparable results for urban Auckland were 10% believing interest rates would fall in the September survey the same as in June compared to 24% in March and just 3% of this view in December.

The difficulty in recruiting skilled, qualified and/or reliable, experienced staff continues to be the main issue of concern for many businesses.

In a comparison of responses by city and town, optimism about prospects in the next six months was highest in Northland with 37% of respondents expecting the general business situation to improve in the next six months, followed by Waikato (28%), Tauranga (27%) and Rotorua (23%) – compared with 19% for urban Auckland.

Pessimism about prospects in the next six months was highest in Waikato at 28% followed by Rotorua 20%, Northland 18%, Tauranga 13% and compared to urban Auckland at 25%.

Jeff Smith notes that the critical value of this survey is that it is ‘here and now.’ The survey measures the opinion of more than 500 businesses “within the last fortnight, not last month or six weeks ago.” In contrast, other surveys tend to measure the past – they are historic.”

The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz

You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com

Jeff Smith
438-4771
ceo@northchamber.co.nz
Northland business optimism picking up faster than elsewhere

Northland business confidence is continuing to trend upwards with an increasing number predicting the economy to improve over the next six months.

There is also more optimism in Northland about the immediate prospects for the economy than in urban Auckland and also other major provincial centres – Rotorua, Tauranga and Waikato.

These are among findings of regular surveys of Chamber of Commerce members conducted in metropolitan Auckland and major provincial centres in the last fortnight on how they view business prospects in the period ahead.

Main findings in respect of Northland were as follows:
• On the general business situation, 37% of Northland businesses expect the general situation to improve over the next six months – up from 11% last June - and compared to 19% in urban Auckland, 27% in Tauranga, 23% in Rotorua and 28% in Waikato.

• Meanwhile 18% of Northland businesses expect business conditions to deteriorate over the next six months, compared to 32% in June and 63% holding this view last December. The 18% in the latest survey compares with 25% in urban Auckland, 13% in Tauranga, 20% in Rotorua and 28% in Waikato.

• In terms of individual business prospects, 72% of Northland businesses consider their prospects will improve over the next six months (49% in June and 33% in December), compared with 48% in Auckland, 61% in Tauranga, 53% in Waikato and 58% in Rotorua.

• Also, just 6% of individual Northland businesses believe their prospects will deteriorate over the next six months (20% in December), compared with 15% in Auckland, 11% in Waikato, 8% in Rotorua and also Tauranga.

• On interest rates, 33% of Northland businesses believe they will rise over the next 12 months (as against 87% of this view last December), compared to 43% in Auckland, 45% in Tauranga, 39% in Rotorua and 40% in Waikato. 22% believe interest rates will fall.



The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz

You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com

Refer to the main press release for more info or contact

Jeff Smith
438-4771
ceo@northchamber.co.nz