northland chamber

16 April 2007

A Blueprint for Local Government…..

“In the next 10 years local authorities plan to spend more than $31billion, which is 2.4 times as much as they spent in the 10 years to 2005”

The Northland Chamber of Commerce through its accreditation to the NZ Chambers of Commerce and the Local Government Forum has recently released a manifesto for Local Government called ‘Democracy and Performance’.

This was drafted in conjunction with organisations such as Business New Zealand, Federated Farmers and the Business Roundtable

With the Local Government Elections being held later this year the Northland Chamber will be organising Debates for candidates to talk to our members on business and economic development issues. The Northland Chamber of Commerce, although being an apolitical organisation will always support good policy.

The following points were highlighted after research throughout New Zealand’s 85 local Government Authorities

Main point’s from the research shows;

· Local Government spending is Equivalent to over 3% of Gross Domestic Product. In terms of turnover and asset ownership many councils rank with New Zealand’s largest enterprises
· Ratepayers’ equity is a massive $67 billion or $16300 per capita. It is equivalent to double the taxpayers equity in Central Government
· During the next 10 years New Zealand Councils intend to spend $31 billion on capital expenditure. 2.4 times the amount in the 10 years leading up to 2005.
· In addition, the regulatory functions performed by councils have a significant effect on overall community welfare.
· The level of rates payable by households increased by 220% between 1986 – 2006. In the same period the CPI increased by 98%.
· The Business Sector pays around half the countries total rates bill, which has also increased at a disturbing pace. The level of rates that businesses pay is often significantly disproportionate to the level of services supplied to them.

The Manifesto for Local Government recommends the following;

· Local Government is a vitally important institution but the activities of some councils presently extend well beyond their proper role.
· Much local Government spending and regulation is inappropriate. The level of rates is excessive and their distribution is unfair.
· With such a great proportion of resources devoted to a sector of the economy that is not primarily focused on wealth creation this contributes to our low levels of per capita income as measured by the OECD
· A significant improvement in local Governments contribution must be a top priority as part of governments ‘economic transformation’
· Some council have neglected basic infrastructure such as Storm Water, sewerage and roading.
· Some councils have invested in Ports, Airports, Businesses, Farms and property investment which in our opinion should be left to the private sector
· Local Government should be undertaking those activities that can not be undertaken efficiently by volunteers, business, individuals and Central Government
· Core activities should be written into the Local Government Act 2002 and extra activities should be undertaken with the consent of the majority of ratepayers through referendum

The manifesto has a range of recommendations to assist local decision makers to in the decisions they make.
We will be releasing these as the local Body elections draw nearer however in the meantime A copy of the Manifesto can be downloaded from the front page of the Northland Chamber of Commerce website at www.northchamber.co.nz

It is also important to note that these findings and recommendations are the result of research through the combined New Zealand Local Authorities.

The manifesto works to influence those politicians in Central Government who dictate to local Government through legislation.

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

02 April 2007

Provincial business optimism wavering…

(see northland results below..)

The ongoing difficulty provincial businesses are having recruiting skilled staff coupled with a massive increase in expectations of higher interest rates is threatening to put a brake on the rural economy.
For the first time in more than a year the level of overall optimism in provincial centre businesses has slipped in how they assess their own prospects in the period ahead even though optimism about the overall economy is marginally up compared with a similar survey three months ago.
Key findings of how respondents see their own business situation over the next six months indicates that 61% in the latest quarterly survey predict they will improve compared with 65% of this view last December.
In terms of the general situation 36% of respondents in the quarterly survey conducted last week expect the general situation to improve in the period ahead compared to 33% of this view last December.
However, the findings break with the trend over the past 18 months for the provincial survey and a parallel urban Auckland survey to show similar results and trends.
In the urban Auckland survey conducted at the same time as the provincial survey optimism generally and in individual businesses has continued to increase but unlike provincial areas the Auckland survey records a big jump in the number of businesses having difficulty recruiting suitable staff.
In urban Auckland 27% of Auckland businesses believe the general business situation will improve during the next six months of next year compared to 23% of this view last December. Similarly, in respect of how individual Auckland businesses see their own business prospects over the next six months, 55% predict they will improve which is a 2% increase on the 53% of this view last December.
The stand out feature of the Auckland urban survey is that the overall level of difficulty businesses are having finding skilled staff has jumped to 46% from 38% in a similar survey just three months ago. In contrast, provincial businesses report that the difficulty of finding skilled staff has eased, with 40% of this view in the latest survey compared to 44% last December.
Similarly, the Auckland survey indicates just 6% of business are finding it easier to recruit skilled staff – consistent with the Auckland survey for the past 18 months. In contrast, 11% of provincial businesses indicate that finding skilled staff is easier than three months ago, compared to just 4% of this view last December. However, comments about the difficulty of finding reliable staff continue to feature in the provincial survey feedback.
A stand out feature in both surveys is a massive jump in expectations of higher interest rates over the next 12 months:
· In the provincial survey, 82% of respondents expect interest rates to increase compared to 38% of this view last December.
· In the urban Auckland survey, 83% of respondents predict interest rates to increase over the next year, compared to 37% making this prediction last December.
Whilst continuing to be optimistic about the economy Northland Chamber of Commerce members say the signs are that increasing interest rates and skills shortages / gaps are beginning to affect the decisions that businesses make strategically and tactically.
This is unfortunate. While the strong self belief of many businesses continues to be reflected in the Chamber survey findings, if a business cannot recruit people with the right skill or attitude to learn a skill then the business has little prospect of being able to expand and grow. Without business growth, the economy and New Zealand’s prospects go nowhere.
The early signs of a down turn in confidence among individual businesses in provincial centres resulting from a combination of skill shortages and concern over higher interest rates is reinforced by the response to a question to identify what single factor is most limiting their ability to expand:
· At 34% compared to 27% last December demand is now clearly ahead of other factors as the most limiting to a businesses expansion.
· Labour on 19%, finance on 18% and capacity on 14% are the next highest constraints cited by respondents.
In many previous Chamber surveys, finance and capacity have been rated the most limiting factor preventing a businesses from expanding. These are now clearly overtaken by labour constraints. Comments of individuals show that the difficulty of recruiting both skilled and unskilled staff is now a deeply embedded concern of many provincial businesses.
Predictably, concern over higher interest rates has emerged as a factor cited by a number of respondents as a reason for putting expansion plans on hold.
The early signs of a down turn in confidence emerging sends a message to Government suggesting it needs a focused strategy to overcome the persistent shortages of skills and unskilled staff in New Zealand from Taupo north if it wants to secure a progressive, growth-led economy.
The Northland Chamber of Commerce will be presenting a seminar in May on the removal of obstacles in importing skilled labour to Northland.

Every Quarter the Northern Chambers of Commerce undertake a business confidence survey. This is a combined effort between all the Chambers of Commerce from Taupo to Northland. Whilst Northland still comparatively has a good level of business confidence benchmarked against Auckland the signs are that increasing interest rates and skills shortages / gaps are beginning to affect the decisions that businesses make strategically and tactically.

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

Northland business confidence up but wavering....

Northland business confidence is continuing to hold up against signs that persistent skill shortages, increased interest rates and a difficult terms of trade are starting to impact on the local economy.

Optimism in Northland about the immediate prospects for the economy also continues to be higher than in urban Auckland.

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 for Northland:

On the general business situation, 33% of Northland businesses expect the general situation to improve over the next six months – up from 27% last December - and compared to 27% in urban Auckland. The 33% in the latest survey is the sixth successive quarter that the level of business confidence has increased in regard to how Northland businesses view the economy’s overall performance.

However, in terms of individual business prospects, 48% of Northland businesses consider their prospects will improve over the next six months (58% in December), compared with 55% in Auckland.

Also 22% of Northland businesses expect business conditions to deteriorate over the next six months, compared to 13% in December. In Auckland, 21% are of this view.

On the side of optimism holding up, however, just 6% of individual Northland businesses believe their prospects will deteriorate over the next six months (8% last December), compared with 11% in Auckland.

On interest rates, 75% of Northland businesses believe they will rise over the next 12 months compared with 43% last December and 83% in Auckland currently of this view.

Commenting, Northland Chamber of Commerce head Jeff Smih suggested:

Part of the explanation for the improved optimism could relate to a flourishing local construction industry coupled with buoyant manufacturing in areas such as the marine trade.
At the same time with 80% of businesses small-medium enterprises, and almost half this group citing finance as the most limiting factor to the ability of the business to expand, the threat of higher interest rates is a concern.

An additional factor giving concern to businesses wanting to maintain growth plans is the persistent shortages of both skilled and unskilled labour.

Jeff Smith
09-4384771
ceo@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

22 March 2007

Wow have you seen what’s happening at NorthTec…

I was privileged to attend the opening of the New North Tec Interactive Lecture Theatre and teaching Complex last Friday. This state of the Art complex provides Northtecs teaching staff and students a state of the art facility which is world class when comparing to regions of similar size.

We were given a demonstration of some of the technology available to North Tec such as Electronic White Boards, Video Conferencing and tools that enable tutors to teach a lecture theatre of people without actually being physically present. Also on display was the new interactive audience survey system which collated audience opinion in a split second through the use of a ‘remote control’ type tool connected to the electronic whiteboard. A bit like you see on ‘who wants to be a millionaire’

North Tec and the Northland training Alliance are also breaking new ground in the opening of a new Health and Safety Training Centre in a few weeks time. This facility will be key in providing ‘standardized, consistent and quality’ health and safety in employment for staff across manufacturing, processing, construction and maintenance industry sectors.

North Tec also surprised us last year with the announcement of being selected as one of Microsoft’s few international sites as Software testers for the 2007 Office system. This was an excellent accolade and confirmed Northtecs growing reputation in technology application. The other news from last year was the Campus in Raumanga becoming a full wireless zone.

In his opening address last Friday Mark Farnsworth from the Northland Regional Council alluded to Education as being a main infrastructure component of a region alongside those other infrastructure issues such as Transport, Port Development, Rail link, Broadband and Waste Water etc.

Northlands future depends on achieving long-term, sustainable economic growth, creating quality jobs, and positioning the region to compete in a global economy. North Tec has made many contributions to the region, partnering and participating in regional economic development efforts.

These efforts are assisting Northland to diversify from a primary based economy to a ‘knowledge’economy reliant on human resources in numerous industries such as Engineering, Tourism, healthcare, and extending into the primary industries.

We see North Tec as being a crucial component of the Education infrastructure in Northland. Whether it is establishing Centres of excellence such as the Health and Safety Training centre in conjunction with Industry or the quick response to ensure that Training and education in Northland is relevant to today’s economy.

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

08 March 2007

Marsden B.....

The Northland Chamber of Commerce Acknowledged today’s decision by Mighty River Power the decision of MRP to not continue with the Marsden B project

Chamber CEO Jeff Smith said that whilst this decision is obviously disappointing as this will mean the loss of potential direct consequences such as Job Creation and development opportunities as well as indirect opportunities - we acknowledge that MRP’s decision was based on the company being able to tap ‘easier’ forms of energy such as increased Geothermal resources and the granting of consent to begin construction on a large Geothermal plant at Kawerau.

Jeff Smith said that with regards to future power supply in Northland it would be nice to know that we could guarantee re-locating energy intensive businesses security that for the next 10 years that there would be reasonably reliable electricity at a reasonable cost'

We appreciate that overall the demand for power is increasing on an annual basis whilst more restrictions are being imposed in an effort to provide clean renewable resources

Jeff Smith said the Northland Chamber of Commerce had noticed the state of the future of New Zealand’s power supply were now being determined by the following factors

New Government Energy Strategy

The Government is currently working on an energy strategy that allows for the phasing out of non- renewable energy resources over time with the ultimate aim of a reliable and resilient system delivering sustainable, low emissions energy to the Country

Climate Change

The New Zealand Government has embraced the Climate Change theory that man made emissions has a mark able detrimental effect on the environment.

Security of Supply issues

We face two major long-term energy challenges. The first is responding to climate change and tackling carbon emissions from our energy production and use. The second is delivering secure, clean energy at affordable prices to support economic development, while being environmentally responsible

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.

Whilst the Northland Chamber of Commerce publicly supported the refiring of the Marsden B power plant we also acknowledge MRPs decision based on the amount of generation from other projects such as Kawerau and the commissioning of extra Geothermal capacity

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

o 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
o The effect on the global environment of some types of power generation
o The scarceness of some Raw fuel supplies (Generation) and the deteriorating infrastructure that carries power from the generation to the end user (transmission).
o 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.
o The ability to sustain and expand existing Industry and attracting new Industry is dependent on a reliable and affordable energy supply.
o 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.

Its pleasing to note that Power retailers and the Northland Chamber of Commerce will be presenting a seminar on these issues, later this year to ensure our members are fully informed on the consequences to their businesses

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 27000 globally. Membership enquiries can be made by phoning 09-438 4771 or emailing info@northchamber.co.nz for a free membership pack.

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

06 March 2007

Northport - Developing Trade Opportunities for Northland

A new regular service linking Northland with Australia and the Arabian Gulf, operated by Pacific Basin Shipping, adds to a growing list of international destinations available through Northport at Marsden Point.

Both Breakbulk and Containerised options are available to these markets for Northland’s Exporters/Importers.

The Chamber of Commerce supports Northport as ports can be major economic engines for regional economies, creating international business opportunities that generate jobs.

Overseas Studies show that Ports have impacts on Direct & Indirect Employment opportunities, Direct and Indirect purchase of supplies and Tax / Rate takes

In Northland we have the added benefit of the Port being able to act as a catalyst in developing areas such as Marsden Point and Real estate development opportunities in the area. Add on to this a prosperous port adding to the case for increased infrastructure development spend on necessities such as roading and Rail and we have a good reason to be fully supportive and have a stake in a successful port operation in Northland.

So the message is tell every business person about the new shipping schedule at Northport.

Imagine a direct link to the Middle East without having to go through Auckland or Tauranga Ports!

This is a good example of living locally and trading globally. Northland Businesses can also subscribe to the Chambers Trade Opportunities e-letter. We receive hundreds of inward and outward opportunities every year from international chambers of commerce and can forward these to Northland Businesses as we receive them. Many of these come from the Middle East

2007 has also been designated Export year by the NZ Government so the announcement that Northport is now offering a regular shipping service to / from the Middle East obviously opens up new opportunities not only for those producers of bulk cargo (Wood etc) but for anyone looking to expand their markets.

Some interesting facts about exports. Exports make up about 30% of our GDP, and this has remained pretty consistent for the last 25 years. During the same period most other OECD countries have expanded their export base, and in many cases their performance against GDP is twice that of New Zealand. Across New Zealand, only about 12,500 New Zealand businesses export. Of these, the top 359 exporters generated 85% of our exports by value. Fonterra alone accounts for 20% of our total exports per annum.

Other Destinations served by our local port include, China, Australia, Japan, Korea and Philippines.

A full schedule of international ports serviced from Northport, including call frequencies, indicative transit times and contact details can be obtained from the Northland Chamber of Commerce Website by clicking the link from the front page. (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

01 March 2007

Northland Chamber Changes Leadership

At the Northland Chamber AGM on Wednesday night a new board and leader was elected by members. Retiring Chairperson Stephen Gillingham is standing down to pursue ambitious business plans and has been replaced by new President Tony Savage. Tony brings to the Chamber both practical legal advice and knowledge, and hands on business experience.
Tony is a solicitor working at the Whangarei firm of Urlich McNab Kilpatrick, honorary solicitors for the Chamber. He has strong desire and vision to make the Chamber relevant for business people of Northland.

Apart from legal skills and advice, necessary on any Board and for Chamber activities, Tony brings practical business experience as a Manager and Owner of a small New Zealand business. He was also CEO of a nation wide New Zealand company for five years.

Tony is a Trustee of Whangarei Intermediate School, an active member of a Whangarei Rotary Club, is learning to fly gliders and microlights and is qualified Dive Master.

As a Board Member Tony will continue developing a Chamber that works for its Members, is relevant and will assist in lobbying Local and Central Government on Northern business issues.

Tony can assist with access to Central Government contacts and enjoys the confidence of professional relationships at Local and Regional Council level.

Other new Board members are Wendy Coutts from Northern Life Brokers, Darren Mason from Northpower and Terry Sage from Business Coaching New Zealand. The other retiring board member is Dr. Nicky Van Der Bergh who has relocated.

Chamber CEO Jeff Smith says that the new board brings a huge amount of new skills that will be utilised to deliver the Chambers mission of “improving members profits.”

Jeff Smith
09-4384771
ceo@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

20 February 2007

Northland Booms……It’s great to be at the top of the country and top of the economy

Commenting on the ANZ National's Dec quarter economic survey, Northland Chamber of Commerce CEO, Jeff Smith says that it Northlands time to bloom.

‘We have known for a long time that Northland is a great place to live, work and play. In economic terms the region has enjoyed one of its most sustained growth periods in many years - Business confidence is high, unemployment down, property market buoyant with rising values, crime down, in-creased commercial investment, but seeing the official data has been met with a resounding seal of approval from Northlands Business Community’.

Like other provincial centres in New Zealand Northland had been hit particularly hard in the years following1984 with the deregulation of the economy. In 2005 BERL ranked the three territorial areas within the Northland Region 40th, 44th and 63rd out of the 76 Local Districts within New Zealand in the Regional Performance Indicators index.

Jeff Smith says that the This news tied in with the Quarterly Northland Chamber Confidence survey carried out at the end of December 2006.Business confidence is continuing to rise according to Chamber of Commerce members in the latest Quarterly Poll. For the fifth successive quarter, the level of business optimism has increased in regard to how Northland businesses view both the economy’s overall performance and how they assess their own prospects in the period ahead.
The indicators which are gradually improving were; Business Optimism, Business prospects and a reducing number of people believing that business conditions are deteriorating.
Widely reported claims by economic commentators last year predicting a fall in NZ business optimism through 2006 have turned out to be 100% wrong, as far as businesses in the Northern Regional Chamber of Commerce catchment area.
In fact, the exact opposite trend has occurred as business confidence has steadily improved throughout the year.
In December (2005) nearly 60% of businesses were predicting the business environment to deteriorate in 2006. But in every survey since, the level of pessimism has dropped with just 18% now picking that the business environment will get worse in 2007.
Part of the explanation for the improved optimism and positive statistics in the ANZ Data are

A growing belief that the Government is serious in wanting to encourage business to improve productivity and address basic infrastructure issues such as transport and energy.
Northland Unemployment is way down – therefore more people earning
Although Skills Shortages restrict the growth of the economy the other side to that is full employment starting to push up earnings
Northland Business Confidence is up
The Current flow of incoming net migration in the December quarter was still way above reserve bank forecasts and this is driving Housing and retail spending – The majority of these settle in the 4 main centres but anecdotally Northland is getting more than its fair share in proportion to the population
Commercial Car sales were up in the quarter ending December 2006
commodity prices stay firm

The Challenge is to bring a level of sustainability to the Northland Economy to ensure that Northland continuers to prosper in the following few years said Smith

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

Local Government Sale of Leasehold land

The Facts as we understand them are

The Whangarei District Council owns a large amount of land which it leases to various commercial concerns

The revenue from the lease of this land is used to subsidise rates

A private business wishes to purchase a property which belongs to the District Council on which there is no current signed lease.

We understand there is policy concerning leasehold land which states that leasehold land does not normally get sold however provides guidelines for the exception to this rule

As far as the Northland Chamber of Commerce can ascertain there are 3 issues concerning any sale of leasehold land

The issue of Leasehold land being put up for sale (or not)
Economic development potential as a good reason for selling the property
The transparency of the offer and acceptance for the property to ensure that the return on the property is the maximum available

Issue 1 - The Northland Chamber of commerce suspect that having large amounts of land designated as leasehold stifles development opportunities. It would be our preferred option to see all leasehold land becoming transformed into a form which would promote maximum investment in the district

Issue Number 2 – we will always applaud a local authority that assists business to grow, prosper and develop as long as there is a net gain to the community & supports economic development

Issue Number 3 –When it comes to selling ratepayer / taxpayer property the chamber will always support an open and transparent bidding process i.e. Public Tender for the sale (open or closed)

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/

We’re at War…the global war for Talent & Skills…….

If New Zealand wants to remain competitive in a global marketplace where the majority of workers earn a fraction of the salaries paid here, we must have the most competent and innovative workforce possible. Yet New Zealand has one of the worst records for skill shortages – we are near the top of the OECD skill shortages list and the gap is widening. We now recognise that our widening skills gap is one of the major barriers to our growth as a competitive nation. The skills gap has resulted from a shift in our economy. The number of jobs for the unskilled has declined steadily over the past several decades and we are seeing an increase in semi-skilled jobs. In the next ten years, there will be a huge growth in skilled jobs as more semi-skilled jobs are automated. Impacting on the problem is the rapid development of technology, the increase in technology based jobs and the development of new industries based on technology advances. Add to this, the expected change in demographics in the years ahead as the number of people in the workforce declines relative to those above the traditional retiring age, and it is obvious that we must find a way to prepare all our population, including those with disabilities and limited English proficiency, to become contributing members of the work force.We cannot afford to delay our response to the problem, since as we seek to be more productive as a nation we will have to concentrate even more on the skills of our workers. We need to focus on the issue from many angles, both regionally and nationally, both short and long term, from an education and an industry perspective, and from the perspective of individual employers and employees.The government is currently consulting on one part of the solution. They have released a discussion paper outlining possible goals and priorities for New Zealand's tertiary education system. The feedback from this consultation will be used to develop the next Tertiary Education Strategy (2007-2012).

We agree that the goals of educational success for all New Zealanders through lifelong learning; creating and applying knowledge to drive innovation; and strong connections between tertiary education organizations and their communities, will help us achieve the economic transformation to a high income, knowledge based economy.However the Chamber believes that a national tertiary education strategy needs to be underpinned by a regional tertiary education strategy. This would identify what the regional needs are regarding short and long term skill gaps, and provide a way to align regional requirements with national priorities and direction. The strategy would also outline what areas of research are required and suited to the region having regard to its social, economic and environmental strengths. We need to identify the unmet needs and opportunities for growth of tertiary provision in partnership with industry and the community. This can only be achieved through an effective working partnership of government, tertiary providers, economic development agencies and local government. The Chamber is part of an intersectoral forum known as the ‘Northland Skills Forum’ which is seeking to deliver solutions to some of these skills problems.However, tertiary education is only one part of the ultimate solution to our burgeoning skills gap.

We are heartened to see our regional economic development agency become involved in attracting overseas skills with groups such as the Whangarei Economic Development Group. Other initiatives include importing skills through marketing tools such as http://www.newkiwis.co.nz/ , a Chamber of commerce initiative designed to match up prospective, new kiwis to gainful employment. We also have among our members - companies such as the bay of islands immigration consultancy and direction recruitment both who are proactive in the business of bringing skilled people to our region.

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

19 February 2007

Northland Chamber of Commerce – 2007 Export Year

O800 EXPORT
0800 397 678

Export Year 2007 offers a huge opportunity for businesses to help lift their own success while at the same contributing to a big lift in New Zealand’s living standards.

Launching a free New Zealand Chambers of Commerce 0800 Export Year service available to businesses nationwide, Northland Chamber of Commerce spokesman Jeff Smith said the service would be of particular interest to companies looking to expand their export campaigns or get into exporting for the first time.

“We are especially keen to hear from businesses with innovative products and services doing well in New Zealand and which could be encouraged to be marketed internationally.”

There must be hundreds if not thousands of businesses with potential to export, he said. An international survey some years ago ranked New Zealand as amongst the most innovative nations in the world, but among the least successful in converting those ideas into successful international businesses.

The importance of Export Year 2007 to increasing New Zealand’s foreign exchange earnings and lifting living standards overall cannot be over stated.

“With just 150 firms responsible for 75% of New Zealand’s exports by value, it is a myth that we are a nation of exporters,” said Jeff Smith
Less than 6000 firms of more than 300,000 registered in New Zealand export more than $5 million a year.

“With statistics like this, Export Year 2007 should set a target to double the numbers of businesses who are serious and regular exporters.”

The Chambers’ 0800 397 678 Export Year 2007 service will be available across New Zealand. The Chambers will be rolling out other Export Year 2007 activities involving all 29 Chambers as the year unfolds.

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 27000 globally. Membership enquiries can be made by phoning 09-438 4771 or emailing info@northchamber.co.nz for a free membership pack.

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

08 February 2007

10 Reasons to enter your business in the 30th Northland Business Excellence Awards

I remember the day I turned 30 thinking that my life had just about ended and that I was officially old.

Little did I know then, but having a few years under my belt was actually quite good. Being older has many advantages. My favorite one is that I get automatic respect without earning it. Other benefits are that your investment in health insurance finally begins to pay off and of course in a hostage situation, you're likely to be released first.

Youth is definitely wasted on the young!

2007 marks the 30th Anniversary of the Northland Business Awards.

This Event has been run by the Northland Chamber of Commerce for 30 years in various guises. The common thread being a celebration of business’s, people and companies who risk capital to enable the wheels of the economy to turn.

We have a special event planed this year to celebrate Northland Business and honour some of those past winners.

All Businesses need to consider entering these awards. To help you with your decision we are giving you 10 reasons why you should contact us for entry details.

Going through the awards process gives you an in-depth understanding of your business
The awards process is an external benchmarking opportunity – How does your business stack up against other businesses.
The act of entering the awards moves your business closer to best practice in all areas
Feedback provided to you by judges helps it become focused on continuous business improvement
An award puts your business name out there. Your business receives external recognition and marketing leverage.
Winning a category confirms your business reputation for quality, leadership and innovation
Preparation of an award provides a common goal for your employees and is an excellent way of improving staff morale.
Winning awards boosts staff self-esteem.
Wining awards can lead to new contracts and bottom line improvements.
The awards process is a great networking opportunity with other quality businesses.

On another note we have our AGM on the 28th February 2007.

Worthy of note is the fact that we will have the first Election for board members that we have had for some time. There are more nominations than available vacancies which demonstrates that Northland Business people want to contribute to a healthy vibrant economy and are taking responsibility by putting themselves forward for a position on our board.

All the nominees are excellent Northlanders and leaders in their chosen field and the hard part will be making the decision at the AGM. Profiles of all people nominated for election can be found on the Chamber website.

2007 will see the Northland Chamber become heavily involved in advocacy issues and encouraging change, development and investment to build the Northland Economy on what is becoming an excellent place to do business.
The Northland Chamber looks forward to catching up with all our members at the AGM or during the year at one of the 40 – 50 events that we have planned this year.

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

14 December 2006

And now for the good news…

Business confidence is continuing to rise according to Chamber of Commerce members in the latest Quarterly Business Confidence Poll. Whilst the results are still provisional the indication is that for the fifth successive quarter, the level of business optimism has increased in regard to how Northland businesses view both the economy’s overall performance and how they assess their own prospects in the period ahead.
The indicators which are gradually improving are; Business Optimism, Business prospects and a reducing number of people believing that business conditions are deteriorating.
Widely reported claims by economic commentators last year predicting a fall in NZ business optimism through 2006 have turned out to be 100% wrong, as far as businesses in the Northern Regional Chamber of Commerce catchment area. In fact, the exact opposite trend has occurred as business confidence has steadily improved throughout the year.
In December last year nearly 60% of businesses were predicting the business environment to deteriorate in 2006. But in every survey since, the level of pessimism has dropped with just 18% now picking that the business environment will get worse next year.
Despite recent warnings from the Reserve Bank that interest rates may be forced to rise next year, 37% of respondents believe they will increase compared to 43% of this view at the last survey in September. Similarly, a recent fall in New Zealand’s terms of trade has been ignored by business in assessing their prospects in the period ahead.
Part of the explanation for the improved optimism could relate to a growing belief that the Government is serious in wanting to encourage business to improve productivity and address basic infrastructure issues such as transport and energy.

Our events calendar is slowly filling up for 2007 if you are not a subscriber to our e-letter we encourage you to do so by entering your details at our website http://www.northchamber.co.nz/ to keep abreast of the latest business news and events happening around Northland.

Meanwhile Christmas is on every ones mind, diaries are full of events to attend celebrating festive cheer as wallets empty to purchase those presents we all love to give and receive.

Remember shop Northland!! Everything on your wish list is right here in Northland and we really do have the most accessible and diverse shopping in the country. While summer is still struggling to find us, Christmas is the time retailers wait all year for to boost sales.

2007 will have implications for businesses with changes to annual leave entitlement and introduction of Kiwi Saver, but those subjects can wait for another time. Now is the time to savour Christmas and all that it means to you. Be safe, be well, be happy and enjoy time with family and friends. From the Board and Staff at the Northland Chamber of Commerce Merry Christmas and best wishes for a brilliant New Year!!

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

04 December 2006

Northland Employers Christmas Holiday Guide….

What do I pay an employee for working on a public holiday? Can I require employees to work on a public holiday? Can I operate a Christmas Closedown? How are annual holidays paid?

Christmas is only 3 weeks away. Hopefully all Northland Businesses are flat out looking after customers and producing products and services for their customers.

For employees this time of the year is one to look forward to with looming holidays on the not so distant horizon. For employers this time of the year is one that can be fraught with difficulties and complex legislation if not carefully planned for.

The Northland Chamber of Commerce has a guide to public Holidays and Christmas / New Year 2006 on our web site as a service to Northland Employers. This guide has a list of the 17 most frequently asked Questions regarding Christmas / New Year Holiday period. This guide is designed to take the complication out of sometimes confusing legislation. Down load the guide from the front page of our website www.northchamber.co.nz There is also an easy to follow flow chart to simplify the process even further

For the record here the answers to the above questions..

What do I pay an employee for working on a public holiday?
If an employee works on a public holiday that employee is entitled to be paid, for the hours the employee works on that day, at the greater of (1) the employee’s “relevant daily pay” if it includes a penal rate that is more than time and a half or (2) the employee’s “relevant daily pay” less any penal rate that is less than time and a half, plus half that daily pay again (with the penal rate removed) i.e. time and a half excluding any contractual penal rate.

Note an employee is only entitled under the Holidays Act 2003 to payment for the actual hours worked on the day not the hours an employee would normally work on that day. As an example if an employee normally works 8 but only works 3 hours on a public holiday that employee is only entitled to be paid for working 3 hours.

Can I require employees to work on a public holiday?
You can only require employees to work on a public holiday if the public holiday would “otherwise be a working day” for the employee and the employment agreement requires the employee to work on the public holiday.

Can I still operate a Christmas close down?
Yes, as long as you have customarily had a Christmas close down.

How are annual holidays paid?
Annual holidays are to be calculated and paid at the greater of the employee’s “average weekly earnings” or “ordinary weekly pay” at the time the holiday is taken. The “average” weekly earnings is the employee’s “gross earnings” divided by 52. The “ordinary weekly pay” is the pay an employee receives under his or her employment agreement in an ordinary week and includes commission, bonuses, productivity, incentive pay, overtime, if they form part of the employee’s regular pay and the cash value of any board and lodgings provided by the employer. However, it excludes
any of the above listed payments (except the cash value of board and lodgings), if they are not part of an employee’s regular pay as well as one off exceptional payments and any discretionary payments that the employer is not bound by the terms of employment to pay to the employee. If it is not possible to calculate “ordinary weekly pay” on
this basis, the Holidays Act 2003 provides a formula.

But wait there’s more…
The Northland Chamber of Commerce also has a range of other useful how to’s available from the www.chamber.co.nz website – these include Employment information such as Pre employment checklist, recruiting, interviewing, discrimination, contracts, legislation, health & safety, retention and performance reviews, Annual Holidays. There is also the result of the 2006 / 2007 Salary Survey. This is handy for checking on the going rate of salaries for workers in over 180 occupations.

Some of these guides will require a log in and password, if your business is a Northland Chamber member they will have this otherwise please call us for membership details.

The Holidays Information above is kindly supplied by Hesketh Henry Lawyers and the Auckland Chamber of Commerce. It is intended as a guide only and specific information for your business should be sought by an employment specialist.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

20 November 2006

Tumble weed city

Memo to: Whangarei CBD Building Owners, Businesses and retailers

The Northland Chamber of Commerce is a business association representing the interests of all its members throughout Northland.

It’s rare that we pick out a small location or group of people to directly talk to however some aspects concerning the Whangarei CBD have become concerning.

The CBD Shopping area is a great place to spend a Saturday Morning. It’s lively, busy and there is a real good ‘feel ‘to the city. For a small provincial town it is surprising the amount of shops we have available which you might expect to see in a much larger city.

You can wander through the Strand where there are 40 odd interesting shops out into the mall which usually has something interesting going on. If you are feeling lively you can take a wander down to the town basin where there are some great creative retailers and good coffee.

The Northland Chamber of Commerce has been talking to Whangarei CBD Businesses lately. Almost all businesses we have spoken to have opinions on some aspects of town planning or parking or decisions made by a local body authority that they can point out have negatively affected their business.

One disturbing aspect that comes through is the almost robotic tendency to blame local Government for our woes. Yes – the city possibly wasn’t well planned from the start. However my experience with local Government especially the politicians are that they are almost falling over themselves to work with local business in the CBD area to ensure that the CBD area remains prime real estate.

So the choice is really ours in going forward what we want the CBD to look like. Here are a couple of possible scenarios.

One - The CBD can either be the lively thriving commercial centre of the Northland Region. Premises are fully occupied with demand for space more than supply. Great planned developments ensuring flow of traffic, Parking, preservation of features and a place where business is carried out effortlessly. Natural Linkages in with Parks, Marinas and retail to co-hesively work make theCBD a destination.

or Two - A Dying / dead centre. No tenants interested in locating there. Unkempt streets, boarded up shop fronts, tumbleweed scampering down Cameron street. Mall vandalized and a good area to avoid.

The future of the Whangarei CBD holds some challenges for landowners and residents. We have competition from retail precincts such as Okara Park, Tarewo and the emerging centre around Gumdiggers Place. Ruakaka developments may see a new ‘centre, emerge which will give planners green fields opportunities.

The Challenge is to recognise that its not up to ‘someone’ else to preserve the viability of the CBD area. If you have a financial stake in the whangarei CBD there are some things you can do to protect your investment

1. Join your local Chamber of Commerce

2. Take part in the retail / CBD Committee

3. Debate and provide constructive feedback on the CBD 20/20 Plan

4. Using the Chamber as a facilitator – agree on some minimum opening hours

5. Provide constructive suggestion on immediate Parking, Traffic Flow and congestion issues.

If we stick together as a group with a financial stake in the CBD with the lobbying and advocacy service provided by your Chamber of Commerce you can have a positive impact in the CBD and ensure that it’s an area that will continue to be a great place to do business.

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

Join the chamber - click here, no card required!

Jeff Smith
Northland Chamber of Commerce
Ph. 09 438 4771
Fax 09 438 4770
DDI 09 4384758
mob 027 444 1010
MSN IM northchamber
Email: ceo@northchamber.co.nz
Website : www.kaiparachamber.co.nz
Website: www.northchamber.co.nz
Website: www.farnorthchamber.co.nz

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

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

25 September 2006

Chamber of Commerce Business taxation review Submission

Earlier this month the Combined New Zealand Chambers of Commerce made a submission to the Business taxation Review. This follows on from a visit by Peter Dunne to the Northland Chamber of Commerce in August.

In brief the New Zealand Chambers of Commerce and Industry stand for a low-rate, broad-based
tax policy.

We support a lower, flatter income tax structure including a reduction in the
rate of company tax (and related rates of tax) and a narrower differential between
personal and company tax rates.

The Chamber of Commerce believes that this would improve New Zealand’s international Competitiveness and boost investment, employment, productivity and economic growth. The Governments discussion document proposed a reduction in the Company tax rate by 3 cents in the dollar. The Chambers support this reduction however a reduction in the company rate of 3 cents in the dollar is not enough if we are to fully transform New Zealand’s economy or achieve the kind of productivity growth that both business and the Government seek.

It is likely that Australia and other countries will continue to lower their company and personal tax rates over the next few years and we believe that the New Zealand company tax rate needs to be lower than 30% if we are to maintain international competitiveness.

It is not possible to review business tax without considering personal taxes and their relationship with the company tax rate. Around 40% of businesses are unincorporated –for example as sole traders or partnerships – and so would not benefit directly from reductions in the company tax rate.

Cutting the headline company tax rate from 33% to 30% would widen the differential between it and the top rate of personal tax. Closer alignment of company and personal tax rates is necessary to reduce tax planning.

The other item in the Governments discussion document covered by Peter Dunne when he was in Northland is the proposal to re-introduce tax incentives. The Northland Chamber argued that tax incentives do more harm than good through the distortions they create. They erode the tax base and result in increased compliance and administrative costs.

The tax incentives in place in New Zealand prior to 1984 did not work well. In all likelihood, many of the pre-1984 problems would reoccur under the options outlined by Peter Dunne and so these “tax base initiatives” should be avoided and the low-rate, broad-based tax principle should be retained.

There is little support amongst businesses for tax base initiatives. A recent Wellington Chamber of Commerce survey of businesses in the Wellington region found that 72% of respondents would prefer that the Government reduce the company tax rate compared with 22% who would prefer targeted incentives for research and development or exporting.

A Copy of the full submission can be found on the Northland Chamber of Commerce website www.northchamber.co.nz

The Northland Chamber of Commerce would also like to take this opportunity to thank all those sponsors, entrants and Judges involved in our recent business awards. We congratulate Lodge Bordeaux for wining the supreme awards and also Darryl’s Dinner Cruises the winner of the Northland Chamber of Commerce Excellence in tourism award.

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

29 August 2006

Workplace Productivity – Business benefits to improving productivity

Recently the New Zealand Chambers of Commerce worked with the Government to promote workplace productivity improvements. This arises from New Zealand’s productivity falling in relation to other members of the OECD. Our GDP per capita is 39% lower than that of the US. Most of that gap is attributed to lower labour or workplace productivity. Our labour utilisation rates are high by OECD standards but our workplace productivity is not.

There is also a realisation that for the country to remain globally competitive, increased productivity is essential. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker . The alternatives are to reduce the costs of labour and other inputs.

This is all fine when we are looking at the big picture, but how small can and medium sized businesses work to improve their productivity.

Workplace Productivity - is about exploring all the ways that a workplace can do things better and smarter

It can also be defined as how well an organisation converts resource inputs into goods or services. In other words how firms can utilise labour and skills, innovation, technology and workplace organisation to improve the quantity and quality of their output

For the Economy the benefits of increased productivity are huge HOWEVER for your business the benefits are improved profitability, increased institutional knowledge and highly motivated staff

The one important thing to remember when embarking on a productivity improvement programme is that improving workplace productivity is not about working harder but about working smarter

The 7 drivers to increasing workplace productivity

In 2004, after consulting with a number of NZ businesses and examining international research, the Workplace Productivity Working Group identified seven key drivers of workplace productivity

Building Leadership and Management.

Leadership and management capabilities are key drivers of firm capability and performance and cut across all of the other workplace productivity drivers. If there is a lack of strong leadership and/or management in a firm, it will be difficult to successfully develop and implement initiatives around the other main productivity drivers.

Creating Productive Workplace Cultures.

Employees need to be are willing to “go the extra mile ”.There is no single prescription for creating a productive organisational culture but firms can cultivate such an environment by fostering some significant cultural attributes, such as acknowledging the contribution of individuals, rewarding participation and good ideas, developing healthy and respectful relationships in the workplace and promoting a sense of shared goals and values.

Encouraging Innovation and the Use of Technology.

Creating new products or services or just doing things better are vital ways to achieve firm growth.

Investing in People and Skills.

Ongoing investment in foundation,technical,supervisory and managerial skills ,together with improvements in work organisation, can help improve the productivity and performance of New Zealand firms.

Organising Work.

Firms need to assess and adapt their structures and business practices and the way they carry out their work on an ongoing basis.

Networking and Collaboration.

Firms do not operate in isolation and there are significant productivity gains to be achieved by improving the exchange of knowledge, information and ideas through both formal and informal networks.

Measuring What Matters.

Good measurement and reporting practices, linked to an organisation’s strategies.

The Northland Chamber of Commerce would be happy to explore these issues in further detail with your business and invite you to give us a call.

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 and vote on this and other topical business issues on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com.

23 August 2006

Locally owned and operated

The Northland Chamber of Commerce is made up of hundreds of locally owned and operated businesses. These businesses in turn employ local people who in turn send their children to local schools and utilise local business.

Why support local businesses? Because it makes economic sense….

….Dollars spent in locally-owned and operated businesses stay in the local economy longer and therefore creates greater local wealth. The benefits of shopping and buying local far exceed the money saved on petrol. Money spent in our community “turns over” several times. When we buy local we support our local economy, local businesses, and local jobs. Buying Local is also more than merely retail.

So.. Whether you are buying a car, furniture, clothing or a lawyer, consider the great quality, price, and service available right here in Northland.

To buy local, also means we take advantage of excellent quality local services. The Chamber’s web site www.northchamber.co.nz is a great example…... Chamber members realise this and agree to have their businesses listed on our searchable online database so that other members and Northlanders can find them easily. Members include retailers, Lawyers, services Industry, Transport Operators, Local real estate agencies etc
The Northland Chamber of commerce encourages locally owned and operated business by
• Creating support between local businesses and the community.
• Raising public awareness of the benefits of doing business locally.
• Addressing governmental policies that support our local businesses.
• Facilitating collaborative efforts among members
• Encourage strategic thinking to add to their competitive advantage. ("How can I add value that customers will happily pay more for? )
The Northland Chamber of Commerce also has a buy local policy to ensure that we always consider buying local and encourages other businesses to do this as well.

Congratulations to all Northlands locally owned and operated businesses-including those who have been around for decades and stood the test of time in the face of huge commercial challenges and increasing competition, and those that have started up more recently and are continuing to thrive.
Study after study has shown that more of the money you spend at local businesses stays in your community than money spent outside the region. But numbers, no matter how convincing, never tell the whole story. There are very real, tangible and human benefits to buying locally that go far beyond simple economics.
• Personalised, friendly service and community focus
• Fills a critical void in Northlands efforts at generating meaningful and sustainable economic development.
• Buying locally made products and services enhances employment, economic, environmental and social benefits.
• Builds brand loyalty for Northland made products
• Reduces imports from outside the region especially of consumption goods
• Help reduce fuel consumption
They want us overseas……
On the topic of buying local, one of the Northland Chamber board members is currently in the UK opening markets and distribution channels for Northland Products. This can be food or anything which is uniquely Northland. If you produce, grow or manufacture a Northland product please contact the 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 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 and vote on this and other topical business issues on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com

15 August 2006

The Northland Regional Events Centre

Back in April the Northland Chamber of Commerce made a stand on the issue of a regional events centre based in Whangarei.

We stated that we would support any ‘well researched development project that added 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.’

In other words the Northland Chamber could not support a project that wasn’t sustainable and that needed ongoing financial support and propping up.

Since then, we made a submission to the Northland Regional Council in favour of the concept with the above proviso.

The Northland Chamber of Commerce has a mission of assisting members achieve maximum success, improve long term profit and encourage positive social development.

The proposed events centre adds to the Northland Chambers mission by providing extra infrastructure to assist the region in delivering economic development initiatives.

In 2005 Northland Chamber of Commerce members were surveyed as to their aspirations regarding the events centre. The Results include;

- 61% of our members believed that the Events centre would add economic value to their businesses.

- A staggering 76% understood the concept as being a regional events centre and not a rugby Stadium.

- 79% believed that the Events Centre would add value to future generations.

In a more recent survey carried out last week our members were surveyed on a list of ‘hot’ advocacy issues and support for the new regional events centre came out at the 4th most popular issues out of a list of 11 development initiatives

The reason for this is clear. The Chamber of Commerce is made up of a number of business owners and people involved in business who have a can-do attitude and who believe that Northlanders deserve the best – new stadiums, libraries, infrastructure etc.

These same businesses are the ones who are creating wealth by employing people to provide services, manufacture products and produce primary products.

The Regional and District councils have a mandate to support projects like this under section 10 of the Local Government act 2002 which states the purpose of local Government. Both these authorities have consulted widely about this issue.

To summarise the Regional Events Centre is supported by the Northland Chamber of Commerce because

 Of its positive impact on the Northland Regional Economy
 It is a good partnership of local & regional Government working together with Private interests for the benefit of Northlanders.
 Failsafe measures have been built in which would ensure that ratepayers are not funding on an ongoing basis the operations of the centre therefore it is financially sustainable
 It can only add value to what is already a great region to live, work and play.

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 27000 globally. Membership enquiries can be made by phoning 09-438 4771 or emailing info@northchamber.co.nz for a free membership pack.
A copy of this article can be read at www.northchamber.blogspot.com – you can also vote or leave a comment there.

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16 April 2007

02 April 2007

22 March 2007

08 March 2007

06 March 2007

01 March 2007

20 February 2007

19 February 2007

08 February 2007

14 December 2006

04 December 2006

20 November 2006

24 October 2006

05 October 2006

25 September 2006

29 August 2006

23 August 2006

15 August 2006

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