ADVOCATE COLUMN 4th WEEK JANUARY 2013

In December PWC released their report commissioned by Auckland City and the Upper North Island Strategic Alliance – UNISA - entitled “How can we meet the increasing demand for ports in the Upper North Island?” The report examined future freight demand and infrastructure demand for the ports of the upper North Island over the next 30 years. It provides an interesting contextual framework for future discussions as to what opportunities exist for regional ports and also what challenges may need to be first overcome. Possibly one of the more significant issues arising from the report – at least from a Northland perspective – is the large cost of domestic freight relative to sea freight costs. Often much of the supply chain costs incurred by businesses are incurred domestically rather than sea freight. The report highlighted that the transport costs from Whangarei to Auckland and to other parts of the upper North Island could well be a barrier to developing Northport as a container terminal unless there was significant investment in other parts of the land transport supply chain. Rail and inland ports are considered as two integral elements of this supply chain. The report also commented that “...significant efficiencies and cost reductions would be needed across the board before a container port at Whangarei would make economic sense”. Both rail and inland ports enable the consolidation of freight volumes and result in reduction in domestic freight costs. A by-product of this is inland ports act as an attractant for manufacturing enterprises. Apart from operational efficiencies at the Port of Tauranga, the inland port Metroport was identified by the writers as being critical in allowing Port of Tauranga to compete with Port of Auckland for a share of international trade. It appears the advice PWC are giving to UNISA – of which our councils are part of – is that in the immediate future is that the port’s of the upper North Island only need incremental change in capacity to meet growth in demand and that Northport is best suited to continue handling bulk freight only. There is much detail in this report which makes interesting reading on the nature of freight handled by the various ports and framework within which the authors have drawn their conclusion and why they confined their projections to relatively short time of 30 years. This report is available for reading online at the Auckland Council website http://www.aucklandcouncil.govt.nz/SiteCollectionDocuments/aboutcouncil/committees/regionaldevelopmentoperationscommittee/meetings/rdocomadag20121206item101of3.pdf

LEADER COLUMN JUNE 2013

Northland and Whangarei are fortunate to have an outstanding natural environment. These provide many fantastic cultural, recreational and commercial opportunities. Our physical environment has also provided us with the setting for a deep water commercial port facility that is the closest port to the majority of New Zealand’s international markets. This facility has continued to grow since its inception ten years ago and has allowed the efficient export of much of Northland’s log harvest in recent years. As well as the ability to be highly productive component of an integrated northern land and marine transport network that is essential to creating a resilient supply chain that New Zealand’s economy needs if it is to be competitive and productive, the port also presents Whangarei with another opportunity. That is the long-term participation in New Zealand’s cruise ship industry by becoming part of the network of ports currently visited by these boats throughout the summer months. Tourism already plays a key role to our regional economy and much of that is focussed on our natural environment. Yet while many of these natural attractions such as the Bay of Islands and the Tutukaka Coast have an international reputation, other areas of Northland do not fare as well. In recent times we have found it difficult to articulate what it is that Whangarei has to offer to both the international and the domestic market. However there is work being done to remedy this. For example the Whangarei District Council’s work with the sense of place projects and the “Love It Here!” campaign are helping change external perceptions. Realistically for Whangarei to be part of the cruise industry’s network requires a relatively low level of operational infrastructure – which already exists – and sufficient attractions to be sold to international tourists within one hour’s travel of Marsden Point. This second element may also possibly exist already. The challenge to the industry if this is the case is to identify these activities, engage with the operators, encourage a collaborative approach from them and then communicate to those outside the region why they should visit Whangarei. This is not an easy task but the long-term economic benefits, not only for Whangarei but also the wider region should not be overlooked. Each of these ships would bring a minimum of 2000 visitors to our district. Tauranga had in excess of 80 ships visit this summer. If the experience is positive they all become international ambassadors for Northland

LEADER COLUMN MAY 2013

Preparation for this year’s Westpac Northland Business Excellence Awards is now well underway and businesses can register their expressions of interest to be part of this event. It is free to enter and is open to any Northland businesses not just those who belong to the Chamber of Commerce. Many of Northland’s prominent business people past and present have played an active role in shaping the region through both their commercial enterprises and through their civic activities. The Awards provides an opportunity to celebrate their achievements and business excellence and the role it plays in our community. Through business, countless individuals can apply their talents to achieve their own aspirations and provide service for others. If we can celebrate and respect these people, and foster a better understanding of the contribution business makes to the wider community, then this will go a long way to inspiring more young people pursue their own aspirations. Success cannot be measured without a business first having set clear goals. In many cases these are closely aligned to the personal aspirations of the people and families who own these businesses. Unlike in the marketplace, the Awards businesses are not so much about competing against other entrants but measuring yourself against a business excellence framework. An entrant’s performance is evaluated against a number of key criteria, the business’s vision and its strategic plan. To assist potential entrants understand the evaluation process we will run a series of workshops on what is required from businesses when completing their entry form. Following these workshops, the Chamber along with their sponsor Business Coaching NZ will also be in a position to provide additional tutoring to entrants if required. All entrants receive feedback from the judging panel focused on identifying areas of their business that may benefit from being revisited and improved. The Awards are important business development opportunity which compels business owners to examine how their business works. In completing the process a business owner will have critically reviewed how they plan and lead their business, how they respond to their market and their workforce and how they record and modify their responses to an ever-changing environment. New Zealand Chambers of Commerce Northland will everything it can to assist businesses in the entry process. If anyone wishes to know more about the Awards or the changes we are making this year please feel free to contact our office at info@northchamber.co.nz.

LEADER COLUMN APRIL 2013

Business is a competition between various enterprises vying with each other to give the customer better a service or product for their money. Their main function is to be efficient producers of goods and services responding to market demands. In the process of doing this there are often other benefits to society and the community. Business assists in the provision of an economic environment that allows us to live and work where we chose. Many businesses support a wide range of community and not for profit initiatives. Northland businesses face many obstacles that make their tasks possibly more difficult than it should be. These are often as a result of additional compliance costs placed upon them by central government and territorial authorities, external economic conditions beyond their control and the challenges of finding a workforce with the skills they desire. Councils rely on their local business sector to generate jobs, invest in the local economy and support the industries that benefit their whole community. New Zealand Chambers of Commerce Northland strongly believe local government can make an important contribution in providing a ‘business friendly’ environment – responsive regulatory and consent regimes, low competitive rates - efficient infrastructure, positive promotion of the local area, attracting tourists and events. While the obstacles mentioned above are often beyond the direct influence of business owners, they do have control over how their businesses respond to their environment they operate in and deliver their product or service. When a business owner has made an investment –often underwritten by their personal assets- to pursue a commercial activity it would be prudent to reduce the risk or ensure that the enterprise has the highest possible chance of success by controlling the controllable. The 2013 Westpac Northland Business Excellence Awards can be part of this process. It is an important business development opportunity which compels business owners to examine how their business works. By completing the process a business owner must critically review how they plan and lead their business, how the respond to their market and their workforce and how the record and modify their responses to an ever-changing environment. New Zealand Chambers of Commerce Northland urges all Northland businesses to seriously consider entering and we are willing to do all we can to assist businesses in the process. It is free to enter and is open to any Northland businesses not just those who belong to the Chamber of Commerce.

LEADER COLUMN MARCH 2013

In February the Mayor’s Taskforce for Jobs held their inaugural Industry Training Graduation in conjunction with Whangarei District Council and the Industry Training Federation. The event was held at Toll Stadium and those receiving qualifications represented a wide range of industries from across Northland. As an aside from the actual event itself, it was interesting to see how many of the businesses involved in this programme and in ensuring their workforce have the opportunity improve their industry skills and knowledge have also been involved in the Westpac Northland Business Excellence Awards at one time or another. The event was well attended not only by friends and family of those receiving awards but also by their employers showing further evidence of their commitment to improve the capability of their workforce. There are a number of reasons why this event was important. Firstly it is great to celebrate success and achievement. Both the graduates and their employers have made a commitment to improving their industries and it is only appropriate that this success is acknowledged. The pride in achievement shown by the participants was obvious and in many cases their achievement may be part of an ongoing process of professional development. Secondly, we need to acknowledge that one of the difficulties experienced in Northland is ensuring our labour market meets the demands of the private sector. The framework within which this training takes place is to some extent a partnership between business and training organisations to ensure the training provided meets industry needs. The engagement of industry trainers and private sector at least allows the opportunity for future needs to be identified and planned for. Economic growth is largely dependent on a capable workforce not only to service existing business but to act as an attractant to new enterprises from outside the region. Finally, there is the likelihood that for some of these graduates this continued industry development may well have an end goal of establishing their own businesses. Creating more businesses leads to more employment and economic growth. It increases the potential rating base from which money can be invested in infrastructure and community projects. Many of today’s business and community leaders within Northland have at some stage in their working life acquired skills and knowledge though industry training that has allowed them to start their own business or serve their communities various needs. Their success and endeavours may hopefully inspire others to do the same.

LEADER COLUMN FEBRUARY 2013

There’s no doubt that event tourism is great for Whangarei and Northland. This month we have seen a number of sporting and cultural events that have added to the vibrancy of the town and provided a positive show case for the region. These events help grow our regional economy and cater to all sectors of our community. They allow our businesses, sports people and artists to showcase themselves on a national or international stage. In a very short time we will know if Whangarei District Council has been successful in their bid to have Whangarei city be one of New Zealand’s host venues for the 2015 Fifa Under-20 World Cup. Being broadcast across 200 countries with a potential audience of 500 million people this is a very significant event. There is stiff competition from 8 other New Zealand towns vying for the honour of being a host city and the opportunities that hosting such an event presents. This is a truly international event that would put Whangarei, its environment, tourism infrastructure and sense of place on the world stage. It is also an affirmation of what was stated leading into the Rugby World Cup 2012 by many commentators that to be truly successful a major event needs to leave a legacy that extends past the short-term gains that evaporate as soon as the visitors leave for home. In hosting games during RWC2011 Whangarei was given the opportunity to show that our district and Northland as a whole are capable and have the capacity to host international events. It also acted as an impetus for the completion of a number of minor civic projects that greatly improved the amenity of many of our local communities. When Whangarei hosts any such event -whether it be national or international- the attending participants and their supporters make a significant contribution to our economy. They discover more about our region, our people and our culture. They see the real New Zealand. These visitors promote us to the wider world and when they return to their hometown or country they can spread the word about travelling here. There is always going to be a slight disconnect between investing in tourism or event infrastructure and the existing demand for it. The legacy of this investment and these events cannot be understated as it creates a reputation local people can be proud of and facilities which benefit future communities.

2013 Q1 BCS

Media Release: For Immediate Release Media Release: Business confidence in Northern region soars A business confidence survey undertaken by the Chambers of Commerce in the Northern region, extending from Northland to Taupo but excluding Auckland, shows one of the most significant lifts in business confidence that region has seen in the last decade. There has been a shift from those firms which have either expected the economy to deteriorate over the previous six months or deliver more of the same to a large percentage of those surveyed expecting the economy to improve over the next six months. Northern regional confidence Aug 12 Nov 12 Feb 13 Improve 30% 29% 48% Same 56% 53% 46% Deteriorate 14% 18% 5% Business owners responding to the survey also had a very positive view of the economy over the next six months with over 60% expecting the economy to improve up from 47% in November 2012 and 49% in August 2012. A rising concern for those looking to expand their businesses is the fact that 25% of those surveyed are having difficulty finding the right people with the right skills. Chamber spokesperson Tony Collins CEO NZ Chambers of Commerce Northland, suggested that this skill shortage would stifle growth. “Every effort should be made to invest in training and alert the Chamber of specific skill shortages so it can work with Government agencies to mitigate skill shortages,” he said. The survey also found: • Employment expectations are up • Hours to be worked up • Profitability expectations up “I believe the continued good fortunes of the agriculture sector have helped people’s confidence, a focus away from the issues on Europe and onto the massive opportunities in the Asian markets – and a good summer,” said Mr Collins. ENDS Summary of survey results attached For more information, please contact: Tony Collins | CEO | NZ Chambers of Commerce Northland 027 444 1010 | ceo@northchamber.co.nz Attached: Full results of Northern Regional Business Confidence Survey Northern regional confidence Aug 12 Nov 12 Feb 13 Improve 30% 29% 48% Same 56% 53% 46% Deteriorate 14% 18% 5% Personal Business Outlook Aug 12 Nov 12 Feb 13 Improve 49% 47% 60% Same 41% 42% 33% Deteriorate 10% 10% 8% Skilled Employment Aug 12 Nov 12 Feb 13 Easier 11% 10% 8% Same 43% 42% 46% Harder 24% 23% 25% N/A 23% 25% 21% Unskilled Employment Aug 12 Nov 12 Feb 13 Easier 20% 18% 18% Same 38% 35% 46% Harder 5% 5% 4% N/A 38% 42% 32% Most limiting Business Factor Aug 12 Nov 12 Feb 13 Capacity 10% 9% Demand 50% 51% Finance 24% 22% Supplies 2% 2% Labour 5% 6% Other 9% 10% Number of Full Time Employees changes in next three months Nov 12 Feb 13 Up 14% 20% Same 71% 67% Down 7% 6% N/A 9% 7% Total hours worked in next three months Nov 12 Feb 13 Up 30% 40% Same 55% 50% Down 12% 9% N/A 2% 0 Expected profitability for next three months Nov 12 Feb 13 Up 25% 35% Same 47% 46% Down 26% 15% N/A 2% 4%

BUSINESS ADVOCATE COLUMN NOVEMBER 2012

The recent Westpac Northland Business Excellence Awards was an opportunity to showcase some of Northland’s more successful businesses. Obviously there is a criterion around which these businesses were measured and on this occasion it used was the Baldrige Criteria. This is a relatively common business excellence measurement tool and one that looks across a broad range of performance areas and then seeks confirmation of this through a number of indicators. While this provides a very useful measurement of a business’s performance it may not necessarily be as useful for measuring success. That is unless it is rigorously applied against the vision and strategic plan of the business owner and that there is an acceptance from the evaluator that not all business owners have the same vision as to what success is. Success cannot be measured without a business first having set clear goals and unlike many large corporates, the nature of Northland businesses mean that many of these goals are going to closely aligned to the personal aspirations of the people and families who own these businesses. For many business owners, their personal goals and their business goals will need to be considered together as each will influence the other. Having asked where the business owner wants to be in their personal life at some date in the future will inform them as to what goals they need to set within their business if they are to get there. It could be argued that while it is valid to assess a business’s performance against its economic bottom-line and the systems and processes it uses, an enterprise may be successful in spite of these indicators if the owner’s goals are being achieved. It is the individual business owner who has made the investment, taken the risk and has an expectation of some reward. The personal nature of these aspirations and associated rewards means that it is not appropriate to judge whether they are right or wrong although there may be opportunity to question how practical or achievable they are. The attractive nature of the owner’s aspiration and their future desire is what energises and motivates them to take action. It gives a reference point against which they can focus, adopt innovative ideas and develop a level of resilience that is so important. Of course having set your goals, using good businesses practices as advocated within the Baldrige Criteria or other business excellence frameworks will make those goals more attainable. Although relatively high profile, the gala evening and announcing of winners is a very small part of the overall entrant experience. For most of the entrants it is the culmination of all they have learnt and practiced in their business life to date. Often they would have planned to enter for well over a year and in many cases they may have been considering entry for many years but were waiting for their business to be ready to enter. In truth, most businesses a constantly changing and developing to meet the challenges of a dynamic economy and market which demands that businesses innovate and evolve or else fail. The time critical nature of the entry process and the prescriptive framework used to evaluate the entrant business demands the business leader to rigorously examine how they do business and to consider whether their results confirm they are doing things the right way to ensure business success. We are always incredibly grateful to our sponsors of which there are many who contribute in a wide variety of ways to this event. It is a massive understatement to say we could not hold this event without their support because the reality is over the last three decades it is the unfailing support of these people who allow us to showcase the best in Northland business. In particular it is gratifying to see how focussed these supporters are on ensuring that the event spotlight remains on the entrants first and foremost. As always the event is a work in progress with minor refinements being made year to year to ensure continuity while at the same time ensuring we can respond to feedback to improve the process of entering and the entrant experience. Along with this is the need to ensure that all entrant businesses can use the process to examine how they do business and develop robust and sustainable enterprises.

ADVOCATE COLUMN 4th WEEK DECEMBER 2012

In my last contribution to the Northern Advocate for 2012 and I would like to take this opportunity to thank all the people in Northland who have supported the Chamber this year. We are a membership organisation and a vast majority of our revenue is directly attributed to membership subscriptions, sponsorship and sales. We have been fortunate to have a loyal membership which has grown albeit slightly over the last 24 months. Given the difficulties many Northland businesses have experienced I would like to think this growth and loyalty is due to the relevance the Chamber has to them and the opportunities that it can provide for business development. It always amazes me how positive and aspirational many of our members are and how passionate they are about their various enterprises. This year we have been heavily involved with a number of projects that assist Northland business. In particular, the Northland Business Grow team, Business Mentors New Zealand and the Pathway for Parents programme. These focus on improving or strengthening both business and workforce capability. Looking at New Zealand’s economic and business profile, an overwhelming majority (97 percent) of businesses is small to medium sized enterprises yet they account for only about 40% of our economic output. These projects are intended to improve the productivity of Northland businesses to the benefit of all our communities. Our membership base reflects our regional profile with a majority of our members being small or medium enterprises. The nature of these businesses mean they are often by necessity, forced to focus on the day-to-day running of their operations and often with very limited resources. Chamber membership can assist with the challenges they face. We have also been fortunate to receive support and membership from some of Northland’s larger businesses and their desire to be good corporate citizens is to be congratulated. Their membership provides support and networking opportunities to many of our smaller business members which is deeply appreciated. Finally, many of our members have told us that one of the roles we fulfil for them that they value is to provide them with a voice through the advocacy work we undertake. I would like to thank the support we continue to receive through our relationship with various Northland media organisations such as the Northern Advocate and Media Works. We are extremely grateful for them continuing to allow us the opportunity to use their resources to raise issues that are of interest or concern to our members.

ADVOCATE COLUMN 4th WEEK NOVEMBER 2012

Businesses are only as successful as their owners and managers. They operate in a dynamic, changing environment that requires the business leader to constantly and deliberately build on their management capabilities. These capabilities could include among other things, marketing strategies, finance, business systems or governance. Often a lack of business capability is something that is limiting our region’s economic growth. If in general terms there are two parts to a business with one being what your business does and the other being how you do it then the “what you do” part is the business capability. The how you do it part would fall within business excellence models such as those used measure business performance such as the Baldrige criteria. It is about adding value to the customer and it starts with a customers need and finishes with the fulfilment of that need. The business capability aspect is much more interesting and to most of us it is often harder to identify or articulate. It encompasses what a business must know and be able to do so that the organisations goals can be achieved. There is a raft of literature available on the subject and much of it is built around its own language and jargon which can be confusing and overly academic for the average business person. What matters are that good processes and efficient use of resources accompanied by an increased ability and knowledge that leads to a more effective organisation. This in turn means a better chance of that organisation achieving its goals. The good news is that NZTE through its Regional Business Partner Programmes that it has in place throughout New Zealand can help businesses to grow their capability. In Northland this role is undertaken by the Northland Business Grow Team. At no cost to a business they will assess your business and its capability needs and then prepare a development plan for you and provide advice, information and business assistance. Having done this the can then direct you to relevant resources and services to help to help fulfil this need and you grow your business, including providing links, contacts and referrals to other government and private sector business assistance programmes. Finally through government support for this programme in many cases they can partially subsidised training and coaching services may be available and can be accessed through a voucher system. With their support many Northland businesses are now better placed to achieve their strategic objectives through increase capability.

ADVOCATE COLUMN 2nd WEEK NOVEMBER 2012

Most of us would like to be successful at whatever we chose to pursue particularly if it is something that we are passionate about or that has a negative financial impact if it were to fail. In fact one of New Zealand Chambers of Commerce Northland strategic objectives is based around enabling business success. The difficulty comes in defining what constitutes success. Obviously there are some performance indicators and results that will show a business is or is not financially viable and any business still operating after the difficult times of the last two years has achieved a level of success. Then there is the purely analytical perspective based on the potential of the concern and whether or not, given external influences it is performing to its full potential or is it through underperformance failing to achieve the maximum return on investment. Once again this is going to be a result of the business processes in place, the overall level of business excellence being practiced and the level of capability of the owner and workforce. Measuring success on these criteria is relatively straightforward as it a combination of evidence based behaviour confirmed by measurable results. However the human factor is still missing from the equation. It is the individual business owner who has made the investment, taken the risk and has an expectation of some reward. The attractive nature of the owner’s aspiration and their future desire is what energises and motivates them to take action. It gives a reference point against which they can focus, adopt innovative ideas and develop a level of resilience that is so important. Success cannot be measured without a business first having set clear goals and unlike many large corporates, the nature of Northland businesses mean that many of these goals are going to closely aligned to the personal aspirations of the people and families who own these businesses. For many business owners, their personal goals and their business goals will be inextricably linked. Having asked where the business owner wants to be in their personal life at some date in the future will inform them as to what their business objectives will be. For this reason even if business is financially underperforming and there is room for improvement with its systems and processes, it may still be a success if the owner’s goals are being achieved. Of course having set your goals, using good businesses practices improves the chance of success.

ADVOCATE COLUMN 2nd WEEK DECEMBER 2012

As some people are beginning to wind down for the holiday season and possibly some time away from business many we use this time -if they are fortunate enough not to have to work through the holidays- as a time for reflection. They will consider what they have achieved over the last 12 months and where they want to be in the future. Out of this reflection some may decide to embark on a new endeavour and possibly to follow some long-held desire to start their own business. International research has shown that failure rate among start-up business can be very high. One report I read recently suggested that only one in twelve start-ups succeed in the long term. People intending to start their own business should ensure that their decision is as well informed and objective as possible and that they have done everything prior to starting to ensure they have a high chance of success. There will be many reasons why someone wishes to start their own business yet whatever their motivation they will experience very similar challenges in doing so. They will need to critically examine the venture before investing too much time and money and ask themselves some serious questions. Putting aside questions such as where the money is going to come from or whether everyone involved in the business has a shared vision or whether they have the shared capability for the venture to succeed, the important question is what you are selling. There must be a reason why the market wants your product or service. That is, what is the value proposition for the customer is and where will the customers be found. It does not matter how fantastic you think something is, if others do not share your view or feel that the return they will receive for their investment is sufficient, then there will be no demand. Without clearly establishing these two points the start-up will struggle to identify the best business model to sell whatever it is they are selling and how they will create a demand for it. There will be risk involved and this in general will correlate with the potential rewards. There are many agencies to assist start-up businesses and those people who have done their planning in advance, established a value proposition and are prepared to listen and ask questions can reduce the risks considerably.

ADVOCATE COLUMN 4th WEEK OCTOBER 2012

In October this year I attended the New Zealand Chambers of Commerce Conference along with about 30 other chambers from throughout the country. Generally I have reservations about attending conferences and some conferences I have attended for various organisations in the past have been of limited benefit and have not added a whole lot of value to the organisations involved. On this occasion there were both good things and some things that were not quite so good. This is not a criticism of those involved in organising the event as they were a small Chamber with not full-time employees and the event was organised in a faultless manner, it ran smoothly and showcased their district in the best possible light. The challenge generally is the content of the event and who delivers it. We did have some great speakers who were well known at a national and international level. I suppose my main concern about these events is that they will be their very nature be quite formulaic and will invariably include someone providing what is intended to be an inspirational presentation on leadership or some similar topic. I have no problem with the topic and leaving a conference inspired and invigorated is obviously a key objective. What surprises me however is how often the person delivering the address on these subjects is a sportsperson. In some ways it is a reflection of the role sport plays in our society but at times it would be good to seek inspiration from other sectors of our communities whose endeavours equally deserve recognition. On a more positive note it was amazing to the see the combined strength that the network of various Chambers of Commerce from throughout New Zealand provides our Chamber through shared resources and member benefits. This national profile also means that we are offered fantastic savings for our members through relationships with national companies that we as an individual Chamber would not normally have access to. Within the Northern Hub alone there are eleven chambers that meet on a regular basis and allow us as a small regional chamber to deliver services that would otherwise be well beyond our own individual capacity. This same network also gives us a national voice. It allows NZ Chambers of Commerce Northland to advocate for our members at a national level with central government on matters that affect their businesses. We are certainly stronger for these relationships and conferences provide an opportunity to recognise this and strengthen these relationships further.

LEADER COLUMN JANUARY 2013

LEADER COLUMN JANUARY 2013 There’s no doubt that event tourism is great for Whangarei and Northland. This month we have seen a number of sporting and cultural events that have added to the vibrancy of the town and provided a positive show case for the region. These events help grow our regional economy and cater to all sectors of our community. They allow our businesses, sports people and artists to showcase themselves on a national or international stage. In a very short time we will know if Whangarei District Council has been successful in their bid to have Whangarei city be one of New Zealand’s host venues for the 2015 Fifa Under-20 World Cup. Being broadcast across 200 countries with a potential audience of 500 million people this is a very significant event. There is stiff competition from 8 other New Zealand towns vying for the honour of being a host city and the opportunities that hosting such an event presents. This is a truly international event that would put Whangarei, its environment, tourism infrastructure and sense of place on the world stage. It is also an affirmation of what was stated leading into the Rugby World Cup 2012 by many commentators that to be truly successful a major event needs to leave a legacy that extends past the short-term gains that evaporate as soon as the visitors leave for home. In hosting games during RWC2011 Whangarei was given the opportunity to show that our district and Northland as a whole are capable and have the capacity to host international events. It also acted as an impetus for the completion of a number of minor civic projects that greatly improved the amenity of many of our local communities. When Whangarei hosts any such event -whether it be national or international- the attending participants and their supporters make a significant contribution to our economy. They discover more about our region, our people and our culture. They see the real New Zealand. These visitors promote us to the wider world and when they return to their hometown or country they can spread the word about travelling here. There is always going to be a slight disconnect between investing in tourism or event infrastructure and the existing demand for it. The legacy of this investment and these events cannot be understated as it creates a reputation local people can be proud of and facilities which benefit future communities.

LEADER COLUMN NOVEMBER 2012

It could be said that all business is a competition between various enterprises competing with each other to give the customer better a service or product for their money. Their main function is to be efficient producers of goods and services responding to market demands. Business assists in the provision of an economic environment that allows us to live and work where we chose. Many businesses support a wide range of community and not for profit initiatives. Often their endeavours go unrecognised and although they do not expect any recognition; sometimes we should take time to celebrate the contribution of Northland’s business owners. I would like to take this opportunity to thank all those who were involved in this year’s Westpac Northland Business Excellence Awards which culminated with the award’s gala evening on the 26th October. The Awards provides an opportunity to celebrate business excellence and the role it plays in our community. Through business, countless individuals can apply their talents to achieve their own aspirations and to provide service for others. If we can celebrate and respect these people, and foster a better understanding of the contribution business makes to the wider community, then this will go a long way to inspiring others pursue their own aspirations. It is amazing to see how much passion the entrants have for their business and the products or services they provide. Embarking on a business venture can be daunting enough but to place your business under the scrutiny of a panel of judges to be measured against asset criteria requires a special sort of person. As always these events rely heavily on the contribution of sponsors who assist in various ways to make them a success. This year’s event received special support from Warwick Bell and the team at Palmers Canvas and Fabric Structure Systems who kindly provided a venue for the gala evening. The lack of suitable venues for large events continues to be a concern for our region because without such infrastructure Whangarei will always struggle to fulfil its potential to host a variety of events and conventions. The generosity of Warwick et al on this occasion was deeply appreciated. New Zealand Chambers of Commerce Northland is fortunate to have the support of many local and national businesses without whom organising an event of this scale would not be possible. Through their support they are real champions of Northland business.

LEADER COLUMN DECEMBER 2012

It does not seem like it is over 12 months since last year’s Rugby World Cup and the lift that provided us towards the end of last year both in terms of the local economy and our reputation as a destination. Without wish to sound like a broken record it has been another tough year and many Northlanders’ continue to struggle. Many businesses still find the lack of demand and skilled works present challenges to their growth. We have a relatively small population and a comparatively low regional GDP but both our population and economy will grow in the future but this growth is likely to be slow and consumers are likely to remain cautious. The good news is that there has been growth albeit small and many businesses are more positive today about the future of their businesses than they were 24 months ago. It is easy to identify the negatives but at the same time there have been some positive news this year and if we are to go into the New Year with a balanced perspective we should not ignore some things that have benefited our communities in the last 12 months. There is not room to mention them all but here are a couple worth noting. Broadband and Rural Broadband roll-outs are well underway and Northlanders will be the first to benefit from the opportunities this provides and a potential 2 to 3 year competitive advantage over the rest of the country. Also the council have identified many key infrastructure and sense of place projects that provide some clear direction as to where they see Whangarei in the near future. This gives some certainty over how Whangarei should look and feel which can be used by businesspeople in making investment decisions. Infrastructure projects well underway mean some perennial issues of wastewater, sewage and roading will be less of a concern and future generations will inherit a going concern of infrastructure with a replacement cost well in excess of the debt incurred to build it. More importantly I have noticed an increased level of collaboration than had existed in the past among various agencies and organisations. With the limited level of resources that exist in Whangarei and Northland, the sharing of skills and knowledge and working together towards shared aspirations makes so much sense. If this continues then I imagine in 12 months time we will have more things to celebrate that benefit our communities.

LEADER COLUMN OCTOBER 2012

The Council are working to create a vibrant, walkable inner city with good amenity. This accompanied by our climate, fantastic natural environment and our close proximity to New Zealand’s largest city should make us an attractive destination. So it is sad to walk through the CBD and regularly see empty commercial premises or closing down sales. While this problem is not unique to Whangarei and we are just following trends being exhibited in many of New Zealand’s larger cities, it does not make the situation any more palatable. The situation is in part due to some retail businesses no longer being able to operate in what are very difficult and increasingly competitive times. The situation has not been helped by online shopping and that many office workers relocating their businesses to locations that were once traditionally residential areas on the commercial districts outskirt. A reduction in the overall number of business units in Northland has also reduced demand for commercial property. In the current economic environment there is simply too much space available. This creates a challenge for the Council in their desire to create a vibrant CBD as there is an oversupply of commercial stock and an undersupply of businesses to occupy it. There should be no surprise that there will be a contraction in the area retail businesses occupy within the CBD and possibly a consolidation of businesses around the areas identified by Council for future development. The central city carpark, widening of pavements, more and better located pedestrian crossings, traffic calming and a continuation of the Cameron Street theme will all have a positive benefit on the amenity of the CBD. An increased sense of place and an emphasis on the place of the pedestrian within the city should result in increased foot traffic, something that all retailers want. There is evidence to support this happening elsewhere in New Zealand. For example following similar upgrades to Auckland’s Queen Street, pedestrian traffic increased by significantly. This will be good for some businesses and there may well be other businesses on which these developments will have a negative impact. There is always the risk that an over-emphasis one part of the CBD will result in an opposite reaction in other parts. Where possible this needs to be acknowledged and catered for. This is particularly true where there may be a perception that the focus of development could be advantageous to the Council’s own commercial stock.

LEADER COLUMN SEPTEMBER 2012

Two recent news events highlighted both the contribution that a single industry can make to a region’s economy and the risk that those economies can be exposed to when external market pressures impact on the performance of those businesses. Spring Creek Coal Mine and Tiwai Point are both major contributors to the communities in which they are located. The fact that they have provided a source of employment and income for many years means in many cases results in a strong level of dependance. If these were to no longer operate or operate in a reduced capacity then the impact on their local economies would be dramatic. Many of New Zealand’s regions will have one or two businesses or industries that a significant economic drivers whose absence would be sorely felt. While Northland has one of the more diverse economies in New Zealand we are still strongly reliant on dairy, tourism and the refinery. We would all hope that they will continue to be major contributors to Northland’s growth, but this cannot be taken for granted. We cannot control or influence outside market pressures but we need to ensure that the internal environment in which they operate makes it as easy as possible for them to remain operating here. When these businesses are successful we all benefit. Taking these three sectors as an example I imagine they have more different requirements than they would have in common when it comes to what constitutes a business friendly environment for them. Fortunately those things they do have in common are within our control to influence and enable. We can influence the regulatory framework in which they operate to bring about fair and consistent rules and plans. The local government reforms are intended to help do this through continuing to build a more productive and competitive economy and delivering better public services to New Zealanders. All these sectors require a capable workforce. While it is no secret that Northland has high unemployment when compared to many other regions, recent survey results revealed that many Northland businesses struggle to find people with the necessary skills to employ. It is important that we ensure that private sector and education providers engage early to ensure that the skills and knowledge being taught, match with those required by the region’s employees. Failing to do so fails both our businesses and our communities.

ADVOCATE COLUMN 2nd WEEK OCTOBER 2012

ADVOCATE COLUMN 2nd WEEK OCTOBER 2012 Otorohanga Mayor Dale Williams spoke recently at Mayor’s Taskforce for Jobs evening of the challenges facing New Zealand as an aging population will result in an increasing burden on a diminishing workforce. No region will escape the consequences but regions such as Northland do have an advantage of a relatively high proportion of young people within our population. These youth are and will always be a valuable resource. In the future the demand for workers will grow and the competition for their services from outside our region will also increase. It is also true that at present we do not always provide these young people the best support that we can. On average New Zealand youth are more disadvantaged across a number of performance indicators than many other OECD countries and this disadvantage is strongly concentrated in Maori and Pacific Islanders. With 45% on New Zealand’s total unemployed being youth, this has significant impact on our future well-being. While our youth perform (comparatively) well in education, this does not follow through on average after leaving school. Otorohanga has almost zero youth unemployment. Mr Williams’ council has been successfully managing the transition from school to work amongst the youth in Otorohanga for a number of years now. They believe all young people under the age of 25 should be engaged in appropriate education, training, work or other options, which will lead to long term economic independence and well being. As equally as important as the community assisting youth in the transition from school to work is examining what we can do to ensure that what takes place within schools also assists all our young people to gain employment. One example of this would be the ability to increase student engagement through e-learning. There is strong evidence to suggest that e-learning, combined with a school improvement programme, strengthens student engagement. At Manaia View School which is low decile and has a high percentage of Maori on its roll, an e-learning programme has resulted in a significant improvement in their student’s education performance. This is not teaching technology but using technology to teach and engage students. I am sure there are many challenges to be overcome for this to happen across all our schools and that it will rely on passionate leadership from within the education sector. There are real economic and social benefits if we get this right. In particular this ensures that our young people know they are a valued part of their community.

ADVOCATE COLUMN 4th WEEK SEPTEMBER 2012

ADVOCATE COLUMN 4th WEEK SEPTEMBER 2012 It has been a difficult time for New Zealand export and manufacturing businesses recently with challenges around demand and unfavourable exchange rates resulting in low economic growth. This is unlikely to change dramatically in the near future but the news is not all bad. Some New Zealand businesses are performing in a manner that defies this trend particularly those that operate in ICT, high tech manufacturing and the bio-tech sectors. Sectors in which reliable and ultrafast broadband connectivity along with a capable workforce often are essential elements to them are operating successfully. New Zealand has an innovation sector worth $7 billion a year. It contributes $5 billion per annum of exports and yet is largely based around only a handful of companies. These companies are among our biggest export earners and show that New Zealand can compete globally as a manufacturer and exporter. These companies often occupy a niche international market and operate largely unnoticed by the wider community. This is evidence of what many commentators and politicians have being saying for some time now. That is that to grow our economy and increase our productivity requires innovation and the identification of those international niche markets where our comparative lack of size can actually be a competitive advantage. Further evidence of this was the latest NZ Chambers of Commerce Northland and NorthTec’s lunchtime address by Paul Davies Director of Intellectual Property at EverEdge IP on the commercialisation of technology and Intellectual Property. It demonstrated both the interesting and innovative world leading technology taking place in New Zealand and some of the support that is currently available to assist new enterprises to compete globally. He also provided valuable insight on how to go about the process of developing a good idea into a commercial enterprise. To grow our wealth and raise our GDP will require a shift to a high wage economy. Successful manufacturing and export businesses have shown that isolation and scale are not in themselves barriers to a successful manufacturing enterprise. These companies are involved in manufacturing things of high value by weight and that have a high profit margin. We have an attractive physical environment and lifestyle in Northland. What is needed is to ensure that we create a social and commercial environment that encourages innovation and values excellence in research and development. If we can develop this environment along with a capable work force this can remove the perceived barriers of isolation and lack of scale and allows a focus on high waged economy that is required for transformational change that will benefit all our communities.