Be wary of the impending upturn….


Its time to reflect on the year ahead. We have experienced huge changes in our economy this year. Here are some handy Chamber tips for navigating your business through the next 6 – 12 months. We have divvied these up into two sections cash and planning

Cash

Install a tight cash management system. Reduce and postpone spending and focus on cash flow. Also your customers will try and rely more on trade financing in therefore your business will be under pressure to act as a bank. Be wary of this and put measures and processes in place that limit your exposure to risk. Work with your accountant to produce a weekly cash position report and forecast based on your lower expectations of income and expenses. Pre-empt any cash flow shortages well in advance. Although banks are tightening up on credit we know in Northland that our banks indicate they are still open for business. If possible restructure debt to give you the best cash advantage.

Planning

It has always been the opinion of the Chamber that businesses that forecast and plan will be the best suited for survival and prosperity. One practical form of planning is to develop a stress measure scenario for your business. In other words ask yourselves the following questions. What if Sales decreased by 25 % over 12 months? What if your customers took 45 days longer to pay? What if your main supplier ceased to exist? What are the early warning signs that these things are starting to happen and how do you measure this?
We also encourage our members and Northland business to definitely plan for the upturn. The Chamber can assist you with planning in the areas of Productivity, Human Capital and Technology. Working in these areas of your business now will put your business in an excellent position to take advantage of the impending upturn.

We are on the cusp of a new year. 2009 will bring many challenges, opportunities and issues. If 2008 is anything to go by the only constant in our world is huge massive upheaval and change. Whilst there is not a lot we can do about global credit crisis or the price of oil the actions outlined above have the ability to change your world for the better.

As in most circumstances there are opportunities to be had. This ‘recession’ will force many businesses to relook at their traditional rules of engagement. Our challenge to our members is to use the weakness of your competitors to redefine your industry. Feel free to give the Northland Chamber of commerce a call if you would like assistance or want to know where to from here…

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

Shop Local – More important today than ever!

In these times of economic toughness and uncertainty we thought it may be useful to resurrect an issue we talked about some years ago on shopping locally. Lets attempt to keep it local as much as possible. This goes much wider than retail and includes using local services, Trades people and Professionals.

The Chamber encourages all consumers to at least look locally before going outside Northland. We offer you 10 good reasons why you should. The following reasons show how more money spent at local business is reinvested in your community creating diversity and helping the community maintain or create its unique appeal.
1. Shopping local creates jobs.
Shops in our town create local employment and self-employment. These people in turn spend in the local economy, send their kids to our schools, pay rates and of course shop locally.
2. Local independent shops invest more in our communities.
Local businesses are proportionally more generous in their support of local charities, schools, and community events. So supporting local shops means a financial impact on your community. Look at Companies like Maggie Dixon and the groups they either support or sponsor.
3. Local shops sell a wide range of great products at affordable prices.
Many people get out of the habit of shopping locally and are then surprised by the range of products and gifts available. I dare you to come along to Classics Business after 5 next month and not be astonished by the range of products offered by this small local business
4. Shopping local saves you money.
Out of town shops have done a good job of convincing us all that local businesses = expensive. If you add travel, fees to transfer larger items and your time, the overall cost is often much higher. Especially with the higher cost of fuel and vehicle maintenance
5. Shopping local retains our communities.
People don’t like losing shops and services in small towns but don’t equate this to how they spend their money. If you want a more Vibrant Whangareior Kerikeri CBD = You must commit to using services locally
6. Shop Local retains our distinctiveness.
Independent shops create distinctive shopping experiences and stock different products. Local businesses respond more quickly to the needs of local customers, stocking products to meet the changing population needs.
7. Shopping local saves the environment.
Local shops often stock a high percentage of local sourced goods which do not require long car and bus journeys, helping reduce our global footprint.
8. Local shops are for everyone.
Most people can get to their local shops easily and this especially important for the elderly and young people and those without transportation.
9. Local shops value you more.
Evidence from numerous surveys show people receive better customer care and service locally. These businesses survive by their reputation and repeat business which means you get a higher standard of service. Ask any customer of local stores such as Lemonwood and Wilkinsons about the excellent customer service they recieve.
10. Shopping local saves services.
Private and public sector services cluster around shops. As shops disappear so do hairdressers, banks, and restaurants, etc.
The Message is fairly clear shop where you live and try and keep it within Northland.


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

And now for the Good news….

Is there any good news from the events of the past few months? What an extraordinary series of events. The World financial markets ‘melting down’.

As a provincial economy we should be under no illusions. The events unfolding at the moment will have a negative impact on our economy and employment growth. It also appears that the Impact of the ‘crisis’ will last longer than the 1 or 2 year short term. It is little relief or consolation to be reminded that downturns and restrictions in business are always cyclical regardless of whether it is labelled a market meltdown, sharemarket crash or Asian economic crisis. At a recent Northland Chamber of Commerce BA5 Don Low from Plan B financial services talked about the cyclical nature of the markets, the importance of diversity and having a long term approach to investing.

Recently we heard from our members regarding their outlook or ‘confidence’ over the coming six months. The biggest constraint to growth for our members was a drop off in demand for their products and access to bank finance due to credit restrictions being tightened. The tightening of credit will mean that expansion and growth will slowdown. Having said these members were also more optimistic about their own and the economic prospects in the medium future. It may be a god time to recap the paper produced in May this year which outlined the 10 best reasons for doing business in Northland available from our website at www.northchamber.co.nz

At the same time of all this turmoil our country is gearing up for a general election. This has refocused political parties and forced them to talk about the economy.

The Chamber of Commerce would encourage lawmakers to implement policy to maintain consumer confidence, increase effectiveness of state budget spending, cut income tax and speed up the development of infrastructure projects. It is pleasing to see some talk heading in this direction

Some notable political events from the past few weeks.

• The Prime Minister announcing a guarantee to bank deposits. (Unsure if this was an election promise or was going to happen regardless of an election). Probably the biggest banking news in NZ – ever! Lucky the dodgy finance companies have already collapsed

• The incumbent political party talking about bringing forward investment in Rail, Road, School and Sewerage to support employment. If there is one thing over the past 10 years it’s the lack of investment in physical infrastructure. This seems to have placed a distant third place behind increasing the size of the Government and Compliance for Small / Medium sized businesses.

• The opposition party introducing Tax Cuts as an election promise and indicating that the size of Government needs to be pruned..

By the time this article is published 48 hours will have passed. The only one thing that is guaranteed over the next 48 hours is that the situation will have changed due to volatility and the ever increasing uncertain nature prevalent today.

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

Northland Top Businesses – The Finalists

The Westpac Northland Business Excellence Awards winners will be announced on 31st October 2008 at a Gala ceremony at Forum North in Whangarei
This year every entry was sent to the Massey School of Business for an analysis of the entry form. The Massey Judging panel recommended finalists in each category and these were then sent to the Local judging team in Northland for further scrutiny.
The Finalists for the event were announced at the Urlich, Mcnabb Kilpatrick Awards Cocktail party on the 1st October.
One notable judging comment from the judges was the ‘closeness’ of scoring across all the categories between finalists and non finalists. The other notable fact is the high number of businesses represented from the Far North which as a district appears to be punching above its weight as a ‘business orientated district’ in the region.
Please take the time to pass on your congratulations to the following businesses for achieving finalist status in this years award.

GENERAL CATEGORIES

2CU Ltd -
Adventure HQ Ltd T/A Darryl's Dinner Cruises - Paihia
Ahipara Sandhoppers Early Childhood Centre - Ahipara
Allens Real Estate - Whangarei
Archibald Motors - Kaitaia
Arohanui & Harinui Childcare -
Bellissimo Skin & Body Ltd
Black Watch Construction Ltd
Coastline Roadmarkers Ltd
Doubtless Bay Information Centre
Doubtless Beauty
Dress for Success
Griffiths & Associates Ltd
John Hewinson Canvas
Kaeo Farm & Fuel
Ontrack Bookkeeping Ltd
Paihia Paintball
Paper Plus Whangarei
Printstop @ Design + Print Direct
Regency Pies
Salt Air Ltd
Te Kotahitanga (NZFS)
The Midnorth Motor Inn
The New Zealand Refining Co. Ltd
Vital Signs Northland Ltd

ACC WORKPLACE SAFETY AWARD FINALISTS

Doubtless Beauty
North Haven Hospice
South Pacific Industrial Ltd
The New Zealand Refining Co. Ltd

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

Northland Chamber of Commerce – Climate Change, Emissions Trading and Tax

It is possible to grow the economy without having detrimental effects on the environment. In fact, economic growth is good for the environment because a strong economy makes environmental care more affordable.

Likewise, concern for the environment can often be good for the economy, for example, sustainable management of scarce natural resources. Many of the ways in which businesses operate efficiently have environmental benefits. For example, cost savings through recycling, reduced use of consumables, and energy efficient practices are ways in which the environment and business overlap.

We consider that the increasing interest in environmental issues amongst the population at large is working in favour of environmental sustainability generally. Voluntary and market-driven practices are effective here – for example, businesses know they can achieve a market advantage in offering consumers “sustainable” products. This makes government intervention to protect the environment less necessary than it would otherwise be.

The Northland Chamber is strongly supportive of sound international measures to address the risk of climate change by reducing global greenhouse gas emissions. New Zealand must do its bit on this critical issue, but measures must recognise that with only 0.2% of global emissions, New Zealand is too small for its actions to have any significant impact on total emissions. While leading the way has some benefits in terms of international kudos, the New Zealand economy must not be jeopardised for this benefit alone.

We are opposed to the proposed Emissions Trading Scheme in the current form. This will result in significantly higher energy and transport costs for New Zealand businesses that our trading partners will not have to face.

These costs will reduce New Zealand’s international competitiveness and result in a loss of investment and jobs as companies contract activity, close down or relocate offshore. If businesses do relocate offshore, this will do nothing to reduce global emissions. In fact global emissions might increase if that economic activity were to shift to an economy with less efficient practices or more lenient climate change policies.

There are cases where increased New Zealand production and corresponding emissions could potentially reduce global emissions. For example, agriculture is a high emitting activity but New Zealand agriculture is less carbon intensive than our trade partners’ and so we should be producing more of the world’s food here.

We believe a broad-based greenhouse gas charge accompanied by a corresponding reduction in income tax should be considered as an alternative to the emissions trading scheme. This would be more transparent and result in much more stable energy prices.

Some New Zealand companies can and are benefiting from moves to voluntarily decrease their emissions, from both a cost savings and a market advantage perspective. Being ahead of their competitors, as carbon becomes more constrained, would also produce benefits. We fully support this and are encouraging our members to voluntarily decrease emissions.

For the2008 General Election the Northland Chamber of Commerce are encouraging Northland Businesses to look closely at candidates and party policies and vote for policy that includes

- Not introducing emissions trading schemes until our major trading partners do the same

- Focusing on a broad based greenhouse gas charge but accompany that with a corresponding reduction in income tax

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

Government Spending and Taxes

Following the release of the NZ Chamber of Commerce Election Manifesto we received comments on our position regarding Government Expenditure and Tax Policy.

The NZ Chamber of Commerce is recommending that the incoming Government urgently undertake a review of all Government spending with a view to eliminating waste as soon as it takes office

Since 1995 Government spending has almost doubled and is forecast to grow faster than revenue over the next four years.

While recognising the importance of most government spending and the efficiency of taxes as a way of funding public goods, The Chamber believes that both Government spending and taxes have been growing too fast and that New Zealand’s overall tax-take is too high.

As well as the overall quantity of spending, a particular concern is the quality of government spending. There is a growing impression that much of the new spending is non-productive or low quality. Anecdotal evidence suggests government departments are flush with funds that they don’t know how to spend sensibly. A recent example in the media was the badges promoting

Maori education but there are many others.

ANZ National Bank has recently completed a more scientific assessment and concluded that growth in nonproductive spending (excluding benefits) has averaged 8.4% per year since 1997 compared with 5.2% for more productive spending.

More effort needs to be put into eliminating waste in non-productive Government expenditure and reducing overall expenditure growth. We encourage the in-coming government to focus on the quality of its expenditure over the next three years and on raising productivity in the public sector.

New Zealand’s company tax rate was reduced in 2008 for the first time in 20 years (from 33% to 30%). A program of personal tax cuts is to commence later this year. While there has been relief for families in recent years in the form of tax credits, these will be the first tax cuts since the 1990s. The top personal tax rate has not been cut since 1988. This reluctance to reduce taxes has been against a backdrop of decreasing taxes in most of our trade partners’ economies

Lower taxes would achieve a more efficient allocation of resources and make New Zealand a more attractive destination for capital and people. They would improve our international competitiveness and boost investment, employment, productivity and economic growth. It is likely that Australia and other countries will continue to lower their company and personal tax rates over the next few years and so New Zealand must continue to do the same in order to remain competitive.

Tax cuts should be funded by reductions in the growth of further government expenditure and savings from some specific cuts in non-productive bureaucratic spending. We are aware that as the economy slows, significant tax cuts will be less affordable without some significant decisions in this area. Tax cuts must be delivered in a way that does not exacerbate inflationary pressures.

The NZ Chambers recommend that the incoming Government include reducing the top personal tax rates in the next round of tax cuts.

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

2008 New Zealand Chamber election Wish List…………

The Northland Chamber of Commerce is part of an umbrella organisation serving the interests of 30 chambers of commerce nationwide. These, in turn, represent over 24,000 businesses around the country. While many of our members are SMEs, our membership includes most of the largest corporations in New Zealand.

The chambers exist to promote, support, and encourage sustainable, profitable businesses. Businesses are the lifeblood of the economy. They provide employment, pay wages, produce goods and services, and determine the depth of the tax base. In so doing, they enable the government to build infrastructure and to provide benefits. If business is flourishing, everyone benefits; if business is in recession, peoples’ standards of living suffer. For businesses to flourish, they require an environment that is supportive, and a culture that encourages, rewards, and celebrates success.

The Northland Chamber is non-partisan. It does not support any political parties but it does support policies that enable businesses to flourish and promote the interests of New Zealand as a whole.

With the general election approaching, the purpose of this manifesto is to outline what we think those policies should be. We hope that political parties will adopt them as much as possible. The manifesto touches on the following areas, to give a picture of where The Northland Chamber stands on each issue, and sets out actions we would expect the incoming government to implement:

To achieve sustainable growth, government policy must be actively probusiness. The government cannot run the business sector, but it can support it and remove barriers to its success. The chambers of commerce throughout New Zealand intend to scrutinise parties’ policies and compare them with this set of policies, which we think provide the best platform for the New Zealand economy to grow.

Some of the Recommendations from the New Zealand Chambers manifesto which can be downloaded from the http://www.northchamber.co.nz/ website.

1. Monetary Policy, Interest Rates and Exchange Rates
The Chamber supports existing monetary policy with its focus on controlling inflation but feel that Government needs to review policy settings that are pushing up prices.

2. Role and Size of Government
The incoming Government to urgently undertake a review on all Government spending and eliminating waste; Top personal tax rate to align with company rate; Supports the Regulatory Responsibility bill

3. Labour Market
Support policy that increases productivity; Review holidays act; Lift immigration quotas for skilled and business migrants;

4. International Economic Activity
Include business community in trade negotiations; Prioritise more bilateral Free Trade agreements; review remaining areas of industry protection in NZ

5. Economic and Regional Development
Review policies and decide which initiatives can best be delivered by private sector and public sector

6. Transport and Infrastructure
Encourage more private sector investment in Infrastructure;

7. Local Government
Recommend Government act sooner on the recommendations contained in the 2007 Local Government Rates Inquiry

8. The Environment
Review the RMA with a view to streamlining of processes around containing consents

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

Want Motivated Loyal Ambitious staff??

The Northland Chamber of Commerce has often bemoaned the lack of suitable staff available to Northland Business over the last few years. As the Economy has boomed the availability of staff has decreased accordingly.

We were absolutely thrilled to be involved in the employers evening as part of the ‘our stories’ exhibition at Rathbone house.

Employers were able to testify about hiring people with disabilities. The overwhelming message we heard was that these people are Hard Working, Ambitious, Loyal and quite often outshine some of the more able bodied people.

Kyle Donavon from Donavon’s talked about employees that were hard working, flexible and willing to carry out the most basic of tasks with a sense of value and importance which reflected the employee’s personal pride in work. Sick leave was a rarity and punctuality couldn’t be faulted.

We feel that as the Economy starts to restrict and more and more Compliance around employing people is pushed onto employers that there is an even more compelling reason to call Karen at IDEA or Johnny at the Tiaho trust to enquire about hiring people who live with disabilities. You will find that these employees are also very flexible and often relish the opportunity to work say part time or carrying out some of the duties that others may not find so appealing. There is also a lot of assistance to help you as an employer make the decision to hire disabled people including financial assistance.

On another note the Westpac Northland Business Excellence awards is well under way. Check out the website at www.northlandbusinessawards.co.nz and send through your recommendations of busienses that you thionk may be an excellent business and well deserving of an entry in this years awards.

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

More Compliance for Northland Business

The Flexible Working Arrangement Act came into effect on July 1st so if you haven’t already started thinking about the potential impact this could have on your business, now is a good time.
This legislation allows employees responsible for caring for another person (whether that person be a child or an adult, a family member or a non-family member) the right to ask you for flexibility in their working arrangements.

They can apply to you to work from home, work compressed hours, change their working days or change their start and finish times. They can only apply after working for you for at least 6 months.

You can decline their request for a number of reasons, like the inability to rearrange shifts, the impact it will have on quality or performance, or the inability to get extra staff.
Figures from the Department of Labour show that around 40% of workers will be care givers to someone.

While some employers may see this as a compliance nightmare, the reality is that many workplaces already offer flexible arrangements for employees, while others are starting to move towards this.

How do we comply with the Flexible Working Arrangement Act?

One way to tick the boxes is to have a flexible working policy and begin on the checklist on the DOL website. Another way is to look at countries like the UK who have worked under this type of requirement since April 2007.

From the British Chambers of Commerce guide ‘how to make flexible working hours work for you’ ways of practically introducing flexible working hours include;

- Part-time working: Work is generally considered part-time when employees are contracted to work for anything less than full-time hours.

- Term-time working: A worker remains on a permanent contract but can take paid or unpaid leave during school holidays.

- Job-sharing: This is a form of part-time working where two (or occasionally more) people share the responsibility for a job between them.

- Flextime: Flextime allows employees to choose, within certain set limits, when to begin and end work.

- Compressed hours: Compressed working weeks or fortnights don’t necessarily involve a reduction in total hours or any extension in individual choice over which hours are worked. The central feature is reallocation of work time into fewer and longer blocks during the week or fortnight.

- Annual hours: The period within which full-time employees must work is defined over a whole year.

- Working from home on a regular basis: Workers regularly spend time working from home.

- Mobile working/teleworking: This permits employees to work all or part of their working week at a location remote from the employer’s workplace.

- Career breaks: Career breaks, or sabbaticals, are extended periods of leave – normally unpaid – of up to five years, or more.

Regardless of whether ‘flexible working’ is law or not the reality is that many workplaces already offer flexible arrangements for employees, while others are starting to move towards this.
This may be a good opportunity for businesses to turn a required compliance measure into a positive incentive to

· retain skilled staff and reduce recruitment costs
· raise staff morale and decrease absenteeism
· meet labour market changes more effectively.
· Become a competitive ‘employer of choice ‘ in a world where skilled staff are becoming rare

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

Resources DOL Website http://www.dol.govt.nz/worklife/resources/index.asp

British Chambers - How to do it http://www.aucklandchamber.co.nz/pdfs/2008%20pdfs/flexiblework.pdf

Another National Park for New Zealand? In Northland!

Imagine A marine national park that stretches from Whangarei Heads to the Poor Knights to Cape Brett.

What reason could the Northland Chamber of Commerce possibly have for highlighting and encouraging discussion on this proposal? Lets look at the Goat Island Marine Reserve in Auckland. This brings in 16 million dollars of Economic Benefit to the Community along with 350000 visitors. Annually The Poor Knight Reserve as it stands pulls in around $10 million dollars per annum.

A marine national park concept is simple. Its based on Economic Development principles along with an underlying sustainability focus.

A Marine National Park would look something like this. Stop Commercial Fishing within the park and halve the recreational bag limit. Set aside 10% of the area where there are absolutely no fish zones. Preferably bordering the coast lines near some of our smaller settlements. (Marine National Parks differ from Marine Reserves in that customary fishing rights are preserved).
In a short time Fish Stock would flourish along with Ecological gains in the number of species and diversity of marine life. The area would now become a haven for Divers, Associated Industries and Tourism Ventures. The Northland point of difference being the Marine Park borders coastlines where visitors and locals could have easy access to areas without the need for boats.

Aside from Economic Benefits we can see that a Park like this would also provide ecological, social, cultural benefits. Aquamarine Farms could still also operate sustainably ad wouldn’t be counted as commercial fishing.

If an area like Goat Island can generate $16 Million dollars of benefit to the Auckland Economy and attract 350000 visitors imagine what a Marine National Park could do for Northland. It’s got to be worth considering.

Consider this. The potential for all this is on our door step right now. Hardly any capital investment is required. The only obstacles to a concept like this working being agencies, authorities, groups and people failing to see the benefits.

Let us know what you think. Should the Chamber invest time in bringing these groups together to begin the process? Can Northlanders be persuaded to work together for a common cause? ( Economic Development and sustainable future). Express an opinion on the latest ‘HOT’ topics at the Northland Chamber Blog Site at www.northchamber.blogspot.com

Food for thought!

Over the last few weeks community groups and ratepayers have had the opportunity to submit to District and Regional Council Draft Annual Plans.

This is one of our privileges and responsibilities that come from living in a democracy.

One of the interesting aspects of living in Northland is seeing District Councils and regional councils make submissions to each others annual plans.

In the lead up to the Annual Plan process this year the Far North mayor started the discussion on unitary authorities.

He is of the opinion that the Far North could manage its own affairs. This would mean taking the responsibilities and roles away from the Regional Council and bringing these under the Far North Council operations.
The Northland Chamber of Commerce is all for consolidation of services where we can see a clear direct benefit to us the ratepayer and initiatives that add value to the economy, community and infrastructure of the region ensuring rigorous scrutiny to ensure that the community and environment are protected.
We would like to open the debate up wider and suggest that the whole Northland Region look at operating as a unitary authority. We have a large geographical area but a resident population of only 153800. Why do we need Four separate local Government entities and two layers of Government for this?

Whenever we have bought this concept up in the past we have been very unpopular. Lets face it there are lots of patches to protect. The truth is however that both District Councils and the Regional Council operate under the Local Government Act 2002.

These are arguments for and against the restructuring of the whole Region to a unitary authority structure or a Super Council.

The advantages for a one Northland council would be:
Consolidation of resources – Infrastructure, Staffing and Physical localities
Co-ordinated Region wide focus on infrastructure and development
Potentially Less Politicians and bureacracy

The major disadvantage would be that people would perceive that a ‘super council’ would not represent them and their locale fairly.

Remember that we are saying that we should start the discussion. If the Status Quo is proven to be the most effective and efficient way of Governance than by all means stick with it!

What do you think?

Log on to our blog site at www.northchamber.blogspot.com and leave a comment


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

10 Best Reasons for doing business in Northland

The First half of 2008 has started out as a bit of a shocker. Petrol Prices have skyrocketed, Interest rates have held their highs, basic food stuffs are increasing in price and the Housing market is slumping.

The Northland Chambers own survey on business outlook has reported a drop in confidence over the coming 12 months which has been backed up nationwide by indicators out of the major banks.

In mid May 2008 the Northland Chambers of Commerce asked members what was the best reason for being in business in Northland and awaited the response. We have had feedback from a few businesses to say that the business climate was getting tougher. We were pleasantly surprised to discover that the replies came in over the next week or so were full of enthusiastic comments and the positive sides of being in business in our region.

The amount of enthusiasm and feedback we received cemented the impression that our membership although diverse and widely spread do have a more optimistic and positive outlook than other businesses.

These comments are outlined along with the complete list in our eBook - the 10 best reasons to be in business in Northland which can be downloaded from our website www.northchamber.co.nz

3 of the 10 best reasons for being in business in Northland

1. Northlands Statistics
Unemployment is down - Northland's unemployment rate continues to break records by bucking expectations and trending downwards to another record low of 3.9% (from 4.1%) in the previous quarter. This is only a fraction higher than the national average which has grown from 3.4% to 3.6% over the last quarter. A great result for Northland in comparison to a number of other regions' rates progressing upwards (This fact unfortunately wasn’t reported in mainstream media) source DOL
Population growth : Statistics NZ predict Population growth for the future to be at around a 13 % for the period 2006 - 2013
2. Businesses still want to relocate here:
Why wouldn’t they. Climate, lifestyle, comparatively cheaper rental/ leases on commercial properties & Staff Costs. Some of the constraints on availability of good commercial property being answered in the medium term by industrial developments in Waipapa and Marsden Point.
3. Region of Opportunities
A number our members mentioned the endless opportunities in Northland. Most of these people are 'new Northlanders' who hang recently relocated here have identified a number of business opportunities or Gaps in the market in various industries within Northland in comparison to markets like say Auckland. (Anons)
Marsden Rail Link will open up opportunities for Developers, Businesses and the Port and act as a catalyst for Economic and Business Development in the Region.
Attraction of technical and skilled immigrants is made easier through the ability to market the lifestyle and physical attributes of the region as a great place to live, work and play.

Other reasons given by Chamber members were People, Lifestyle, Location, Productivity, The Economy, Co-opetition and Knowledge.

The Complete list of comments and breakdown can be downloaded from www.northchamber.co.nz

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 http://www.farnorthchamber.co.nz/

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

While they are still talking about it – private enterprise has gone out and done it

The Northland Chamber of Commerce is a voluntary association of companies and individuals engaged in business activities in the Northland region.

• 
  It is dedicated to the development of international, national and regional trade through
  Freedom of enterprise for those who by their individual and corporate talents contribute real economic, social and cultural wealth to the community.


• 
  The development of a market economy in which there is minimal interference from central and local government.
  


• The strengthening of Northlands place as a pre-eminent commercial, industrial and communications centre.


• 
  Assisting the development of the region in creating a desirable commercial and industrial environment for its citizens.

The ‘market economy’ point above manages to attract a lot of flak from time to time from various individuals and organisations who feel that the economy should be closed or controlled by Government.

Recently in Northland we have seen a private partnership come together to solve a problem which is bothering provincial New Zealand. That is the Broadband issue. Broadband and data services are slow and cumbersome due to a monopoly provider controlling the lines over the past decade or so and the lack of a need to invest in basic infrastructure.

Northpower and Telstra Clear have come together to deliver voice and high speed broadband services over Northpower fibre optic core network. This means that 900 businesses, schools and health sites in Whangarei will now have a choice of using a high speed network for the delivery of Data. The expected roll out of this is due before Christmas 2008.

The interesting point about this is that Politicians and Government have been talking about delivering high speed data services for some time now.

Current central Government includes huge spending in project probe a few years ago along with resource over the past 4 or 5 years in the Governments Digital Strategy.
The National party is campaigning on ultra fast broadband infrastructure as being central to the investment in infrastructure if elected.

Regional Council have been talking about broadband for a while now and have only recently announced an MOU with a private provider to scope and run a feasibility study on a project which will see a broadband infrastructure rolled out across the Northland Region.

Central Government has also been involved over the past few years in forcing Telecom the monopoly provider to open up access to basic infrastructure to allow other companies to compete.

Interestingly, in March this year, the NZ Institute criticized NZ’s broadband performance and aspirations saying that “ Progress in improvement is too slow, Telecom was the only real player in the roll out of fibre industry and that to stall on infrastructure improvement meant that options for future improvements are becoming restricted”. The NZ institute went on to advocate that the Government move rapidly to invest in the rapid roll out of Fibre to enable fast Broadband.

Of course we in Northland can now see that a ‘market economy’ decision to invest in a region beats Government initiatives any day regardless of what politicians are promising and think tanks are recommending.

There are a couple of good points about the Northpower / Telstra partnership. Firstly Whangarei will now have Data speed and services equaling those of Cities like Christchurch and Wellington. This then gives Whangarei yet another advantage over other regional cities as a preferred place to work and do business.

Secondly, in one swoop Telstra /Northpower are now able to enter the basic communications industry. In other words you now have choice in which provider you use for your telephone connection. As Telstra’s Dr. Alan Freeth said at the launch of this initiative, look out for surprisingly good deals from communications companies competing in a ‘Market Economy’ for your communications spend.

The Northland Chamber says ‘Thank goodness for Competition’.

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

16 May 2008

Submission to:

Rodney District Council – by email to customerservice@rodney.govt.nz
Auckland Regional Council – by email to consentsubmission@arc.govt.nz

Submission regarding:

The Proposal to establish, operate, maintain, upgrade the Rodney Power Station and associated facilities

Submission by:

The Northland Chamber of Commerce and Industry Inc.

The Northland Chamber of Commerce

The Northland Chamber of Commerce currently has 420 financial members that employ the equivalent of 5000 full time employees.

Since 1903, the Northland Chamber of Commerce has served the needs of the Northland business community through its public policy and advocacy initiatives and its business development programs and services.
The Chamber also works to ensure that Northland has a business-friendly environment where all businesses can grow and prosper. With this, also comes paying close attention to the quality of life the region offers our members’ employees and families. The Chamber works to make a difference in Northland’s future and to help Northland grow.
The Northland Chamber of Commerce generally favour well researched development projects that add value to the economy, community and infrastructure of the region especially those projects that undergo rigorous scrutiny to ensure that the community and environment are protected.

General Nature of Submission

In Support of all applications

Submission

The Northland Chamber of Commerce fully support Genesis Energy Applications to carry out the construction and upgrade of the Rodney Power Station as described in the ARC and Rodney Distinct Council’s Public notification for Genesis Energy Rodney Power Station Proposal

The reason we support this is because.

Security of power supply in New Zealand.
Industry requires a reliable supply of electricity to provide for the future social and economic well being of the country. The proposed station will do this.
A wide range of generation source is required 9Besides Wind, Solar, Gas, Hydro) to ensure power is available at times required
The proposed power station will enable generation during low hydro , low wind periods
Security for Northland. More generation is required north of the Auckland Isthmus. Currently very little generation north of Otahuhu
Security for Northland can not be guaranteed by upgrading transmission lines alone. More local Generation is also required.
Growth expectations for the Auckland and Northland regions require more local generation.

Consumer Benefits
The proposed station will assist the stability of power prices by providing generation options when other sources are limited.

The Environment
The proposed station will limit the use of the Whirinaki Diesel power station which has greater carbon producing emissions due to the diesel fuel being used.

Best Location for a station
The proposed sight is close to all the factors of production required to run the station namely gas supplies, transmission lines, water supply and road access
Area has plentiful land available – enough to supply 8 hectares at a reasonable cost.
The station will enable more sustainable development in the Northland and Auckland Regions

We support the proposed plans and would like to see both the Auckland Regional Council and the Rodney District Councils make any decisions required to support these applications.

We would like to be heard to support our submission.



Yours faithfully

Jeff Smith
Chief Executive Officer
Northland Chamber of Commerce

Phone 09-4384771
027-4441010
ceo@northchamber.co.nz

Submission to: Royal Commission on Auckland Governance

Submission regarding:

The opportunity for a broader and independent assessment of what is needed to achieve Auckland’s potential to be a truly internationally competitive city to live, work and do business.

Submission by:

The Northland Chamber of Commerce and Industry Inc.

The Northland Chamber of Commerce

The Northland Chamber of Commerce currently has 420 financial members that employ the equivalent of 5000 full time employees.

Since 1903, the Northland Chamber of Commerce has served the needs of the Northland business community through its public policy and advocacy initiatives and its business development programs and services.

The Chamber also works to ensure that Northland has a business-friendly environment where all businesses can grow and prosper. With this, also comes paying close attention to the quality of life the region offers our members’ employees and families. The Chamber works to make a difference in Northland’s future and to help Northland grow.

The Northland Chamber of Commerce generally favour well researched development projects that add value to the economy, community and infrastructure of the region especially those projects that undergo rigorous scrutiny to ensure that the community and environment are protected.


General Nature of Submission

The Northland Chamber of commerce recognises that our region does not operate in a vacuum. We are inherently interested in the development and structure of our neighboring regions.

The Northland Chamber of Commerce supports changes of the current structures as outlined below because for New Zealand to grow we need Auckland to Grow faster. This is even more so important for the Northland Region due to our proximity to Auckland.

Therefore our submission will reflect the following assumptions

Auckland is our neighbor therefore any effect of changes in governance affecting Infrastructure and development will generally have an impact on the Northland Region whether that be taking advantage of Auckland’s Growth / prosperity or to be affected by Auckland’s Demise.
Auckland is considered to be the engine of the economy If NZ is to grow at an acceptable level over the next 10 years then Auckland (and its infrastructure) needs to grow exponentially faster to ensure that NZ grows.

Submission

Keeping in mind the above assumptions, The Northland Chamber of Commerce would prefer a local Government structure in Auckland that ;

Can deliver Infrastructure that does not act to a deterrent to growth

Invests in infrastructure using anticipated growth models

Makes resource decisions quickly

Has a regional Infrastructure outlook

The practical changes that needs to occur is “fast, seamless, forward looking and commercially sound decisions in infrastructure investment within a framework of streamlined political processes.”

The Chamber believes that the local Government situation in Auckland is confusing as far as infrastructure is concerned. The most obvious change would be the formation of a new or an expansion of the existing ARC to become a unitary authority bringing in the local and district council functions. However research suggests that this would not be as efficient as first may seem.

Our submission is fundamentally to consolidate some of the local authorities activities to ensure that a regional vision be applied to all infrastructure decisions and to gain efficiencies.

The Northland Chamber of Commerce would therefore suggest Regional Government are responsible for the formation and running of an infrastructure authority to undertake all decisions, planning and implementation across the region regarding

The investment on infrastructure using anticipated growth models

All planning and delivery for Transport, Water, Waste Water, Broadband, Energy, Major Public Facilities across the region

To relieve District and City councils of the burden around resource management planning for these

A consolidation of any bodies or organisations (into the infrastructure authority) set up to administer infrastructure (eg. The Water Industry currently has 11 bodies including 7 councils)

Thank you for the opportunity to make this submission

Yours faithfully

Jeff Smith
Chief Executive Officer
Northland Chamber of Commerce

Submission to Northland Regional Council Draft Annual Plan 2008 / 2009

Submission to:
The Northland Regional Council.

Submission regarding:
Draft Annual Plan 2008 – 2009

Submission by:
The Northland Chamber of Commerce and Industry Inc.

The Northland Chamber of Commerce

The Northland Chamber of Commerce currently has 410 financial members that employ the equivalent of 4000 full time employees.

Since 1903, the Northland Chamber of Commerce has served the needs of the Northland business community through its public policy and advocacy initiatives and its business development programs and services.

The Chamber also works to ensure that Northland has a business-friendly environment where all businesses can grow and prosper. With this, also comes paying close attention to the quality of life the region offers our members’ employees and families. The Chamber works to make a difference in Northland’s future and to help Northland grow.

The Northland Chamber of Commerce generally favour well researched development projects that add value to the economy, community and infrastructure of the region especially those projects that undergo rigorous scrutiny to ensure that the community and environment are protected.

Submission

The Northland Chamber of Commerce

1. Supports ongoing work carried out by Regional Council to designate an Oakleigh to Marsden Point rail corridor

2. Support a targeted rate to complete dredging work on the Hatea River channel. We also support target fees to berth owners, boatsheds and individual moorings in the Whangarei Harbour. We support targeted rates to businesses that derive a direct benefit however would like to see the dredging cost evenly distributed among all the above parties ( Businesses, Boatsheds, Moorings and Berth owners)

3. The Northland Chamber of Commerce supports any Regional Development spend to be allocated to an economic development agency with a regional focus.

We would welcome the opportunity to be heard on this application


The Northland Chamber of Commerce is Northland’s Premier Business Advocacy, Networking, Education and Marketing Group. The chamber is part of a nationwide group of 30 Chambers of Commerce and 22000 globally.

Jeff Smith
Chief Executive Officer
Northland Chamber of Commerce
3-5 Hunt Street
Whangarei
09-4384771
info@northchamber.co.nz

Submission to Whangarei District Council Draft Annual Plan 2008 / 9



8th May 2008
The Whangarei District Council
Whangarei.

Submission to:
The Whangarei District Council

Submission regarding:
2008 – 2009 Draft Annual Plan

Submission by:
The Northland Chamber of Commerce and Industry Inc.

General Nature of Submission
Suggestions for council to consider in Annual Plan and support for specific proposals

Decision sought

To consider selling non – strategic assets
To reconsider the culture of minimising rates increases at all costs and by deferring planned work or cutting services.
To review all rating differentials on general rate takes to a more equitable manner and in particular those penalising the commercial sector
Immigration support
Proactively seek out inwards investment opportunities in collaboration with Industry and business associations
Scope the formation of a Holdings Company with a private and public board mix to maximise return from assets
To continue supporting a regional EDA with funding and staffing. We recommend not bringing these roles in-house as synergies and communication are even more enhanced by working with a regional body.
To scope out and work towards a ‘one stop shop’ approach with Regional Council in any regulatory or compliance type services.
To gain a professional opinion on the option submitted by the Northland Chamber of Commerce to the CBD Flood management consultation regarding a ‘dyke’ to solve stormwater, flooding, traffic congestion and visitor industry issues.
Tourism – Clear, well branded signage designed to get visitors into Whangarei to spend more and stay longer.

The Chamber supports

Investigating a ring road option for Whangarei
Any work or effort to reproritise and drawdown funding for roading work to our main arterial routes in the district in conjunction with Transit NZ.
Investment into Tourism

The Northland Chamber of Commerce

The Northland Chamber of Commerce currently has 420 financial members that employ the equivalent of 5000 full time employees.

Since 1903, the Northland Chamber of Commerce has served the needs of the Northland business community through its public policy and advocacy initiatives and its business development programs and services.
The Chamber also works to ensure that Northland has a business-friendly environment where all businesses can grow and prosper. With this, also comes paying close attention to the quality of life the region offers our members’ employees and families. The Chamber works to make a difference in Northland’s future and to help Northland grow.
The Northland Chamber of Commerce generally favour well researched development projects that add value to the economy, community and infrastructure of the region especially those projects that undergo rigorous scrutiny to ensure that the community and environment are protected

We would like to talk to 2 or 3 points in more detail on our submission a total of 15 minutes if possible

Yours faithfully

Jeff Smith
Chief Executive Officer
Northland Chamber of Commerce

Carbon....... is the new nuclear!

Climate Change - What position should the Chamber take on behalf of Northland Business?
	Strongly Support all measures to eliminate Emissions at any cost
	Support measures to eliminate emissions considering the economic cost
	No Position - not enough information
	Support in principle but dont support any measures that result in more tax and compliance on business
	Stongly advocate against any measures as the whole issue is a crock.
Free polls from Pollhost.com

2013 is looming…..

I had the pleasure to attend the young farmers regional competition on Saturday Night in Whangarei. It was great to see an example of the talent represented by the 8 finalists. The finalists came from different parts of the rural economy. From farmers in the traditional sense to those servicing the farming sector.

It was interesting to note the optimism in this sector. A local rural real estate agent told me that sales and enquiries were still bouncing along at a busy pace and that the sector seemed to be prospering nicely. The Banks of course are still keen to do business with the rural sector unlike their urban counterparts in the property development game who have found recently that the banks are treading a little bit more cautiously when securing funds against property.

12 years ago after selling my last business I purchased a 10 acre lifestyle block just out of Wanganui. My neighbour was a beef and cropping farmer. In my conversations with him I learnt about the cycles and the toughness of the farming. Back then he was looking at dairy conversion as the way to go. I couldn’t believe the resilience and toughness of this 3^rd Generation farmer. Year after Year he would roll with the punches – refinancing when necessary, bringing on consultants onto his land once a quarter and taking on board advice and assistance to assist him through the tough times. When I last spoke to him 6 or 7 years ago things had definitely changed for the better. He was purchasing new farms, leasing more land and maximising the most of his opportunities.

Farming and Primary production like any other part of the economy goes through cycles.

With the downturn the economy is facing, it is quite clear that historical service centre towns like Whangarei and Dargaville still owe a lot to the flow on effect of a good rural economy.

Whilst the economy is cyclical there are a number of issues on the Horizon that farming bodies and associations should quite rightly be worried about.

In 2013 the Agricultural Sector in New Zealand will be subject to the emissions and trading scenarios following suite of the electricity industry in 2012 and transport fuels from next year onwards.

In February this year the Northland Chamber of Commerce made a submission to the Finance and Expenditure Select Committee regarding the Emissions trading and renewable preference bill currently before the select committee. In this we identified that to support the bill in the current format that some 1630 jobs in Northland would disappear.

We also supported in principle actions to reduce global emissions of Greenhouse Gases but we argued that the Government should not be imposing restrictive measures upon New Zealand businesses ahead of other countries.

In 2013 when the Agricultural industry has to operate under these conditions no –other country in the world will be imposing these on their agricultural sector.

We need to question why? Agriculture & primary production is still the backbone of the NZ economy. Why add another complication to an already uneven playing field. Remember – we are a long way from most of our markets so we have to be productive enough to supply produce competitively to start with.

The Northland Chamber has supported a sensible approach regarding emissions trading. The main discrepancy as far as the Chamber is concerned is why jump in and assist our economy to become uncompetitive. The NZEIR has itself put figures on loss of GDP and Job losses that are in the billions of dollars and thousands of jobs.

In the meantime don’t forget that the rural economy is still a big earner for Northland and directly responsible for some of the commercial activity going on in our towns and centres today.

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

Small Business – The engine room of the economy


The Northland and NZ economy is primarily made up of Small Medium sized businesses.

As of February 2006
96% of enterprises employed 19 or fewer people.
87% of enterprises employed 5 or fewer people.
64% of enterprises had no employees.
The number of SMEs increased 4% in the year to 2006.
SMEs accounted for 30% of all employees.
Firms with 5 or fewer employees accounted for 11% of all employees.
From 2001 to 2006, SMEs accounted for 59% of all new net jobs in the economy.
There were 11,751 net new entries into the Business Demography dataset at February 2006.
Self-employed people accounted for 11% of people in the labour force (at March 2007).
Since 2003 the Small business advisory group has been providing a small business voice to the policy makers in Wellington. Last week the Small business Advisory Group made 16 further recommendations to the Government on behalf of Small Businesses.

Recommendations included

Making the business environment in NZ competitive to Australia’s with comparative benchmarks formulated and published to keep score.
Three recommendations on simplifying, removing obstacles and tax concessions for hiring and training Employees
Tax changes like abolishing FBT and increasing deductibility for childcare to encourage people into the workforce.
Other recommendations including resource management changes, the provision of credible business advice and export assistance

The panel for the Small Business Advisory is made of up small business owners from around New Zealand.

The Small business advisory group recommendation and report are freely available on the Ministry of Economic Development Website at www.med.govt.nz

Unfortunately there is currently no representation from Northland.

Do you have any recommendations for the Government? How could the environment we operate in be better served for businesses? The Northland Chamber of Commerce is always keen to hear from Small businesses on their concerns. We represent business at local and central government level to ensure that the business community is well served.

Have a look at the report and let us know your concerns

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

Northland business outlook weakens

The latest Northland Chamber of Commerce business opinion survey points to a general deterioration in a number of important performance indicators in Northland and the Northern Region of NZ.

The Chamber’s quarterly survey provides an important snapshot of where small and medium northern region businesses think they are headed as 85% of the 500 surveyed employ 20 or fewer staff.

Northland Chamber of Commerce chief executive Jeff Smith says businesses are significantly more pessimistic than they were in December. “This has to be of concern when the Northern region (Waikato - Northland) generates more than a third of New Zealand’s productive economic activity, and small and medium businesses provide most of the engine’s cylinders.”

Mr Smith says a “stand out” survey finding was that locally in Northland 48% of the survey respondents expect the general business situation in New Zealand will deteriorate in the next six months. This is more than an 80% increase on those who thought so in December, and three times as many who were pessimistic a year ago.

In other findings, more businesses expect:

softer demand for staff over the next three months;
to make less investment in buildings and machinery over the next year;
that significantly higher costs will squeeze profitability over the next three months;
significantly less demand from New Zealand customers over the next quarter;
That interest rates will rise further over the next year.


Mr Smith says 70% of respondents now expect interest rates to rise during the next year, up from 46% in the December survey. “Coupled with this is the suggestion that mortgage rates will go still higher, despite the Reserve Bank not lifting the official cash rate. With many small businesses using borrowings secured against mortgages this will obviously have an impact.”

Mr Smith adds, “The ability of business to absorb further price increases appears to be over if, as the survey suggests, demand and turnover are headed south. Perhaps rather than pushing huge State driven capital projects it may be time to invest in the “business engine” (the Golden Goose for the last 8 years).
If not, whichever party wins the Treasury benches risks inheriting an economy in danger of turning ice cold.

Jeff Smith
CEO – Northland Chamber of Commerce

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

Merchant of Doom and Gloom

The Quarterly Northland Chamber of Commerce Business Confidence Survey is due out in a few days time.

We have heard results from a number of Business Confidence Surveys lately all espousing doom and gloom. These are surveys carried out on a national basis. The Northland Survey is one of the only Northland Regional Surveys carried out and we await the results.

I would like to Cover the Northland’ Confidence Surveys, What they tell us and how they relate to you and your business in particular.

Firstly, what is a business confidence survey? – The Business confidence survey allows us to take a regular detailed snapshot of the Northland Economy. With a database of over 1,200 businesses in Northland, company participation in the survey enables the Chamber to monitor business sentiment and intentions. Respondents are asked about their employment and investment intentions; their expectations of the economy’s performance and their own business situation; and what the main issues affecting their businesses are

What do these surveys tell us? – These surveys are handy tools for those looking at the Northland Economy. . They provide a useful tool for tracking how the economy is moving. They tell of business intentions in hiring staff over the next 3 months, whether businesses are investing further in capital and business owners perception of the economy and business owners perception of there own performance. Planners and agencies can change policy (or not) based on the results of the Quarterly Survey.

How do these surveys relate to your business in particular? Firstly, you can look at the results overall and compare the economy perception to your own business. This may give you an indication on how well you are (or are not) doing. Or you can ignore the results and just keep on doing what you are doing.

One of the common criticisms of these surveys, however, is the ‘Doom and Gloom’ aspect. In other words if we keep reporting negative results that somehow business will start to perform poorly to meet the expectations outlined by these surveys.

Most Northland business owners however will not let results of surveys such as these affect them negatively.

They know that the fate of their business stand firmly in their own hands. They are planning now for growth taking into account adverse economic conditions such as exchange rates, lack of skilled labour, interest rates and fierce competition. Yes there are probably some trying times ahead however if there is one thing about Northland people and businesses is that they are extremely tough and resilient and tend to file ‘bad news stories’ where they belong because they are just too busy getting on with it.

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

Media Release
4 March 2008



Overseas Investment Amendment Raises Questions as to what are Strategic Assets

Urgent clarification is required as to what is meant by strategically important infrastructure and sensitive land according to the New Zealand Chambers of Commerce (Inc).

“The decision to amend the overseas investment regulation will further increase the uncertainty associated with our overseas investment regime,” said NZCCI Director, Michael Barnett.

“Without certainty as to which assets are strategic and what land is sensitive it is becoming increasingly difficult for businesses to know what assets can be sold to whom. Businesses need certainty more than anything else.

“It is also increasingly confusing for overseas entities who want to invest and do business in New Zealand.

“The decision has major implications for overseas perceptions of New Zealand’s openness to foreign investment. It sends a signal that the government is anti-foreign investment.

“It may now be harder to attract private sector partners for infrastructure projects,” Mr Barnett concluded.


For further comment please contact Michael Barnett on (09) 309 6100 or 0275 631 150

Hundertwasser – an iconic Northland product

What an interesting week it’s been. The Northland Chamber of Commerce has completed a submission to the Finance and Expenditure Select Committee regarding the Emissions Trading proposal as it stands, talk of a new Hunderwatsser museum in Whangarei and wholesale changes at the Northland Chamber Board.

Climate Change Emissions trading amendment

Our submission to the Government says that The Northland Chamber of Commerce opposes the Climate Change (Emissions Trading and Renewable Preference) Bill. We support action to reduce global emissions of Greenhouse Gases but we believe the government should not be imposing restrictive measures upon New Zealand businesses ahead of other countries. We have asked the Finance and Expenditure Committee To put aside these measures and reconsider once our trading partners implement. The reason for this of course is that it immediately gives non complying countries a competitive price advantage over us when trading internationally. Another Disturbing effect of the trading and emissions amendment is the potential for job losses in Northland which we would obviously like to avoid.

Hunderwatsser Museum

Every region in New Zealand can boast about parts of their region that entice visitors. Usually these are to do with physical beauty (Mt aspiring) or one off events (Wanganui masters Games).

Smart Regions are being very clever in the cultural Tourism industry. They are taking a local feature whether that be a person, place, event or thing and developing an iconic product around that. This makes sense on a few counts - the foremost being that a region can be very specific about what makes it special therefore giving itself a unique selling point (Just like a business).

We can see a great deal of common sense in the Hundertwasser proposal. Yes for Whangarei but more importantly for the wider Northland Economy. Unfortunately there has been some discord regarding the sighting of the proposed museum. If we are smart about this proposal every small town in Northland could work in with the Museum to have a Hundertwasser iconic piece or feature.

We know that the Cultural Tourism sector is very financially rewarding. We also know that art patrons that travel to NZ to see an iconic work such as the Museum in Whangarei will probably travel to Kawakawa to see the Hundertwasser work there. So why not Kerikeri, Kaitaia, Kaikohe, Dargaville and Ruawai capitalising on this and working in with the Whangarei Museum to get ‘Hundertwasser lovers to travel a circuit. Surely that would encourage these visitors to stay longer, spend more and come back more frequently.

The Northland Chamber of Commerce held its board meeting on 27th February. We have a new board and a few good challenges for the year ahead. Our new board are on our website http://www.northchamber.co.nz/

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