16 December 2010

16 December 2010

Media Release

Business Negative in Northland

For the second quarter in a row the Chamber of Commerce business survey confirms confidence at levels lower than they have been for over a decade.

Only a net 1% of business respondents in Northland believe business conditions will improve over the next six months. When you take in the view of businesses in the economic zone from Taupo to Northland, excluding Auckland, this lifts to 15%.

Chamber spokesperson, Tony Collins, said that many businesses had expected to deal with a downturn over a period of about one year but that this had now turned into two years and many businesses had battened down the hatches and gone into survival mode – “expect more casualties in the new year” was their prediction.

“Many small and medium businesses were experiencing strong consumer reluctance to spend or make decisions” they said.

It also seems that while business expects to benefit from the 80,000 credit cards the Rugby World Cup will bring to NZ they also appreciate that much of the infrastructure spend has been made and that post RWC 2011 there is little on the horizon domestically so we will remain at the mercy of a better performing world economy.

A further signal from the survey was the growing indication that skilled staff were increasingly difficult to find. In Northland 17% of businesses reported difficulty finding the right people with the right skills. In the economic zone Taupo - Northland, excluding Auckland, this was 23% and Auckland recorded 18%.

A further message from respondents to the survey suggested the most limiting factor to expansion was demand followed by finance – with many observing that despite the strong profit performance from the Banking sector, getting Bank support in difficult times was not easy.

Ends

CEO Northland Chamber of Commerce

15 December 2010

14 December 2010

Media Release

THE CHAMBERS YEAR 2010
I would like to take this opportunity to thanks you for your support this year. The Chamber’s relationship with the Northland’s media is very important and we value your contribution. To give you of an indication of the work the Chamber has undertaken this year I have provided the following summary.

As a membership organisation and rely on the support of our members and the media to operate and to act as their regional representative on things related to business. This means we must continually examine what our role is and how we can remain relevant to those people within the community who we claim to represent.

Part of this process is looking at what it is we actually offer to our members and strengthening our relationships with them and with other key stakeholders in the community. I have personally met with almost a quarter of our members in the last twelve months with the view of establishing what they seek from the Northland Chamber of Commerce and how we can best support them in their business endeavours.

Over the last twelve months we have undertaken 39 event and numerous other activities which are of direct benefit to our members and the wider business community. These have included the Westpac Northland Business Excellence Awards, the Department of Labour Northland Workplace Productivity Study, coordinating Business Mentors New Zealand, 18 Business After 5s, the Small Business Update Seminar and many others.

These have provided a range of opportunities for Northland business to improve their performance and widen their networks.

We offer our members many savings for their businesses on various Chamber discounts and member to member deals and given them opportunities promote their businesses to other members. The Chamber network has been used to support and promote various events or programs being undertaken by Northland charities and not for profit organisations. The Chamber network also enables Northland business to undertake business elsewhere in New Zealand and overseas through the global network of Chambers of Commerce.

We have advocated on behalf of our members on a range of issues that we believe impact of their ability to do business or Northland’s economic development. This year we have spoken out for our members on:
• Various council’s Annual Plans
• Regional Policy Statements
• Regional Land Transport Strategies
• LTCCP
• Commercial Rates
• Local Government reform
• Support for the Hatea weir lock
• and many other issues.
In all instances we have tried to present a clear and positive perspective on what we believe will benefit Northland’s business communities.

The Chamber looks forward to continuing to adapt to the changing needs of our members and continuing to strengthen our relationships with various stakeholders throughout Northland. I hope the December proves to be a prosperous time for Northland and that the economic outlook in the New Year provides some sign of cheer for our region’s businesses.

01 December 2010

LEADER COLUMN NOVEMBER 2010
A recent brief conversation with Monty Knight of Okahu Estate Vineyard and Winery got me thinking about the role of the wine industry has to play in Northland’s regional economy. In many ways this industry captures all the opportunities and challenges that are faced by today’s business people. It can be a high risk enterprise requiring a large amount of optimism, an unstinting passion for the pursuit of excellence and is subject to all the vagaries of the environment and economy.

It also speaks of Northland’s cultural landscape, going back to early colonial days, it has strong historical relevance and has enjoyed somewhat of a renaissance in recent times as our palettes become more sophisticated and we recognise that on occasions Northlanders can compete both on price and quality in an incredibly competitive environment.

This competiveness was exemplified at the recent New Zealand International Wine Awards. These awards are New Zealand’s largest and open to both New Zealand and internationally-produced wines. Northland wineries were awarded 21 medals including three gold medals, four silvers and fourteen bronze. The fact that these wineries were spread between Mangawhai and Karikari indicates that this is not confined to a small part of the region but spread throughout Northland.

Northland’s environmental conditions lend themselves towards producing wines with a different style and flavour profile from other parts of the country. We will be limited by suitable land but we have a proven capability to create quality wines. This and the recent success at competitions are important for two reasons. Firstly predicted higher excise costs will present a significant threat to the industry particularly if these costs cannot be passed on to consumers. Quality and regional distinctiveness may provide a competitive advantage over high volume, low priced producers.

More importantly, wine provides more than a product, it provides an experience. Wine can be both a destination and a reason to travel. Wellingtonians flock to the Waiarapa every weekend to sample wine and produce and there is no reason why Northland cannot be promoted in the same manner to the Auckland market. It may not be a large market but it is important to our reputation and complementary to our larger tourism market. Within the blandness of the global market those things unique to Northland such as of distinctive wines created as a result of our history, culture and sub-tropical natural environment give our region a point of difference in a crowded market.
ADVOCATE COLUMN 1st WEEK DECEMBER 2010
I would like to start by stating that in the past I have been very sceptical about whether the Whangarei District Council’s proposed Hundertwasser Museum was an appropriate development for our city. While I recognise the significant global contribution to art Friedensreich Hundertwasser has made, on a personal note my sense of aesthetic lie elsewhere. This has probably led to my opinion that perhaps there would be better uses that this site could be put to.

However it is interesting to consider the opportunities that such a development may present. You only have to travel to Kawakawa to realise there is a demand for attractions associated with this artist and the commercial spin-offs they can create. So what would such an attraction mean for Whangarei? For a start it would provide a reason for northbound travellers to visit, stay and spend in Whangarei. It may increase the nights tourists spend in Whangarei and provide a real point of difference when marketing Northland against other similar coastal destinations.

Whatever the attraction ends up being, Whangarei still needs a point of arrival that will direct or divert northbound traffic into the commercial business district and to these draw cards. At present this is the I-Site at Tawera Park which I believe is in the right location. With future changes to State Highway One this point of entry to Whangarei will become more critical as by-passing the city will become easier for the traveller. Thought and resources need to be committed to making this important gateway stronger, more visible and the route to our CBD more legible.

There is no doubt that within an integrated vision for Whangarei a world-class attraction is required. The supporters of the Hundertwasser project do have some work to do if they wish to garner support from the wider community. There is the issue regarding the apparent lack of consultation and transparency of this project in the past, but this in itself (like personal aesthetic) should not a reason for not supporting it.

The suitability of Hundertwasser Museum should be subject to a rigorous independent cost benefit analysis which could be used to inform the public of why this project is or is not essential to Whangarei’s future economic well-being. If the benefit of this or any other project can be substantiated, then we should set aside our personal aesthetics and support any initiative that will contribute to the region’s growth.