BUSINESS ADVOCATE COLUMN JULY 2013

If our regional economy is to grow then existing businesses must develop and grow and new businesses must enter the market. Today’s businesses operate in an environment that requires disciplined financial management skills and a high level of business capability. Observations by many business commentators have identified that one of the key factors in businesses that have continued to grow during the Global Financial Crisis has been a focus of the owners and managers of these businesses on the development and training of themselves and their staff. 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. The “how you do it” part would fall within business excellence models such as those used measure business performance such as used in the Westpac Northland Business excellence Awards. The “what you do” part is the business capability. The business capability encompasses what a business must know and be able to do so that the organisations goals can be achieved. What matters are that good processes and efficient use of resources accompanied by an increased ability and knowledge, leads to a more effective organisation. These capabilities could include among other things, marketing strategies, finance, business systems or governance. The good news is that New Zealand Trade and Enterprise (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 NZ Chambers of Commerce Northland and Northland Inc.’s Innovation and Growth 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 they can then direct you to relevant resources and services to help fulfil this need and you grow your business. Finally through government support for this programme in many cases they can partially subsidise training and coaching services which can be accessed through a voucher system. With their support many Northland businesses are now better placed to achieve their strategic objectives through increased capability.

ADVOCATE COLUMN 4th WEEK JUNE 2013

The recent closure of a well-established, highly thought-of inner-city retail outlet gives cause to reflect on the difficult business environment faced by independent operators in this particular sector over the least three years. Like all businesses they have had to deal with the tight economic conditions created by the GFC. However as well as the GFC they have had to face the challenge of increased compliance costs, falling foot traffic, changing consumer behaviour, new technology and proliferation of large format retail. Changes in consumer behaviour as a result of online technology and increased connectivity are often cited as one of the biggest challenges facing this sector. There is no denying that the proliferation of online marketing has increased competition and in some cases this competition has not been operating on a level playing field due to the fact that some of this competition is off-shore and can avoid compliance costs. However the reality is that e-commerce is now a normal part of the marketplace. It cannot be ignored and it can provide an opportunity for traditional retailers to boost sales and increase their share of the market if they were to adopt an integrated approach to their marketing. For the small independent operators e-commerce allows them a sense of scale that may not have previously existed. There is overseas evidence that suggests that while more and more people are researching online, they will still go to a physical location to purchase the goods they have been researching. At the very least it will provide an additional door to their business and extend their market reach beyond those people walking past their premises. It does however require an investment in a website that is easy to use –no matter the device – fast and secure. This is not intended as a criticism of traditional retailer behaviour but rather as recognition that the environment in which retailers now operate has changed. The traditional retailer should also understand what their point of difference is and play to their strengths. Product knowledge, level of service and long-term relationships will always be important. Much of what is needed for the retailers change of behaviour is relatively easy to implement and requires a low level of investment. At the end of the day, as long as the consumer purchasers your product is does not really matter how they buy it.

ADVOCATE COLUMN 2nd WEEK JUNE 2013

Four months out from the upcoming local body elections and prospective councillors and mayoral candidates are beginning to signal their intentions to their electorates. Or rather they are communicating with that portion of the electorate with whom they come in contact with through their spheres of influence. Over the last few electoral cycles, the voter turnout for local body elections throughout New Zealand has been in decline. In many cases less than half the eligible voters actually bother to turn up at the polls. Of more concern than the low numbers is the fact that at the last elections it was estimated that over half those who did vote were over 55 years of age. There may be many reasons for low participation in local body politics, but since local councils play an important role in shaping our communities it is unfortunate that a large proportion of our communities decide not to have a say in how these councils are formed. Young voters may not participate as they could feel it lacks any relevance to their day-to-day lives. This lack of relevancy may arise from the fact that we have an extended education phase in New Zealand, that they may not be participating in the labour market or that they do not own their own homes. All these things imply that local government is less likely to directly impact on the individual. However, whatever the reason for a section of our community not participating this in part could be remedied by better communication. There is evidence to suggest that increased information leads to increased participation. To make an informed voting decision requires adequate political knowledge. As well this knowledge there is the systemic issue of the individual’s belief in the efficacy of governance or the ability to influence the political decision making process. Without an effective manner to deliver sufficient information in the relevant format to inform our communities; accompanied by a belief that they can influence decisions, I would imagine the declining participation is likely to continue. Herein lays the challenge to our civic leaders. It is too easy to say that everyone has the opportunity to participate but they are not interested. Leading into this year’s elections what needs to be asked is how our local politicians intend to meaningfully engage with their constituents and in particular those younger members of the community who may at present see no relevance in the process.

BUSINESS ADVOCATE MARCH 2012

The Westpac Northland Business Excellence 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 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. Business is a competition between various enterprises vying with each other to give the customer better a service or product for their money. It should be a continuing pursuit of improvement and excellence. 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. Preparation for this year’s Westpac Northland Business Excellence Awards is now well underway and Northland businesses can register their expressions of interest to be part of this event. 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. These awards provide a great opportunity for Northlanders to celebrate those amongst us who have made significant contributions to making our region a better place. Unlike in the marketplace, in the awards businesses are not so much competing against other entrants but against a set of performance indicators. An entrant’s performance will be rigorously tested against a number of key criteria and that business’s vision and strategic plan. 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. Entrants in the Westpac Northland Business Excellence Awards are categorised based on their number of fulltime employees as we believe businesses of similar scale should be doing similar things no matter the nature of their products or services. As well as being considered for the category based on their size, businesses will also be eligible for the More FM customer Choice Award, the ACC Health and Safety in the Workplace, the NRC Sustainable Business Award and the Top Energy Not for Profit Organisation Award. We are committed to making the process as easy as possible for entrants through individual support and group workshops. 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 or visit the Awards website http://northlandbusinessawards.co.nz/

ADVOCATE COLUMN 4th WEEK MAY 2013

Two key elements of urban design are connectivity and permeability. They relate to the ability to move people or vehicles in different directions; they allow ease of movement between different parts of a town and prevent severing neighbourhoods or precincts. They also encourage movement on foot and can negate the requirement for long car journeys. So what happens when a small town with a central business district that is relatively spatially confined is bisected by a barrier that separates its predominantly retail precinct from its primary public open space of high amenity? Such a barrier prevents the integration of these two spaces and creates issues that have long-term consequences to the viability of our central urban area. I would suggest this is the situation that has existed in Whangarei for some time with Dent Street and its four lanes of traffic negatively impacting on both the permeability and connectivity between the Town Basin and Cameron Street Mall. If these physical components of our CBD are to be complementary and if we want our inner city built environment to function to its full potential, this is a matter that at some stage in the future will need to be addressed. Not only does it need to be resolved, but the manner of the resolution should not only be functional but express a level of elegance and maturity worthy of a districts most important public open space. During a recent Whangarei District Council presentation on the future redevelopment of the Central Business District, the Council’s urban design specialist showed a video clip relating to a traffic calming project that took place in the English town of Poynton that faced similar problems where high traffic flows across multiple lanes through an important part of their town negatively impacted on the amenity and functionality of that space. They narrowed the road, removed traffic signals and reintroduced a human scale to their town centre. Their response was bold, challenged many perceptions of how to manage vehicular traffic in an urban environment and it worked. Perhaps this is how we should be thinking when considering a response to our own urban design issues. While the Council did not at the time suggest this as a response to Dent Street, it would certainly transform an area where layer upon layer of traditional traffic management solutions have managed the movement of traffic but not the functioning of the space. I have added the web-link for anyone interested to see more. http://www.theatlanticcities.com/commute/2013/04/lots-cars-and-trucks-no-traffic-signs-or-lights-chaos-or-calm/5152/

ADVOCATE COLUMN 2nd WEEK MAY 2013

ADVOCATE COLUMN 2nd WEEK MAY 2013 Towards the end of April, the Department of Conservation launched their Te Ao Pakihi initiative in Northland with two public events, one in Kerikeri and one in Whangarei. This is an ambitious project that is focussed on supporting Maori to take the next step in establishing their own businesses. Why this is ambitious and what makes this initiative so worthy is that the benefits of this to Northland could be considerable. The events were well attended and had a range of speakers that had something interesting to offer on the relationship between communities of interest, conservation, business and what our aspirations should be if Northland is to fulfil its true potential. While these two events provided information relating to the business support available to Maori or in fact anyone who wishes to start up a business, the real inspiration that came from them, was hearing the success stories of some of our region’s business people. The conversation around the productivity disparity between Maori and non-Maori owned pastoral land was just one example of the difficulties facing Maori business. Part of the discussion was around the difference between business owners being able to act unfettered on their own behalf as opposed a business with a wide range of shareholders whose interests must be protected and observed. This was highlighted by the challenges of multiple-landownership, the complexity that this brings to governance and the limits this imposes on using such land as security. While the challenge is enormous so are the benefits. In a report prepared for the Ministry of Primary Industries by PWC entitled Growing the Productive Base of Maori Freehold Land, the writers modelled the outcome of investing in this land and raising its level of production to the national average. They used case study models based in Northland and indentified potential growth in employment and GDP. As these are common objectives for most territorial authorities and central government it would make sense for those agencies and various private sector institutions to consider how they can work with this sector of the economy to enable this potential to be realised. Improved business and governance capability of a significant portion of our regional population accompanied by a more enabled business environment can result in economic growth. This is one area where the existing productivity base level is not particularly high. This growth would create employment opportunities across Northland.

ADVOCATE COLUMN 4th WEEK APRIL 2013

If you have a business operating almost anywhere within the urban area of Whangarei, then by the end of this year you should have ultrafast broadband going past your premises. This presents an opportunity for businesses to examine some of the ways they deliver their product and services and also to look at how they manage their staff and their workloads. Given that most Northland businesses are very small, that their workforces are also small and that recent times have made it difficult to reward their workforces in a financial way, perhaps it is time to consider how technology could be used to benefit a business’s employees. If business owners value and strive for a work-life balance then it is natural to assume that their workforce will also place a benefit on it, and with younger work forces in particular they may actually demand it. Technology through ultrafast broadband, remote access and a proliferation of smart devices enables more flexible working arrangements than have ever existed before. Obviously it requires some clear guidelines and performance levels still needs to be monitored and adhered to but there are some big advantages to be had. Working remotely will require that staff have been given the appropriate training and information to give the business owner the confidence that productivity will at the very least remain constant if not improve. This in itself would make the whole process add value to a business. It would also make the business owner examine how they manage, store and safeguard their information and ensure they have processes in place to meet the demand of out-of-hours emergencies. It may take some time for individual businesses to establish the right mix of time spent in the office and working remotely given their own unique circumstances. I imagine purely from the element of social interaction there will always be a need for people to be present in a workplace for some period of their working week, both to keep informed of what is going on and to stay connected with other members of their team. Because the objective is to improve everyone’s work-life balance, the real challenge may be to ensure that a balance is actually maintained and the workplace does not dominate the owner’s or worker’s home life. In many cases this will require some real discipline in managing the use of their smart devices and knowing when to turn them off.

ADVOCATE COLUMN 2nd WEEK APRIL 2013

ADVOCATE COLUMN 2nd WEEK APRIL 2013 In March, Radio Live organised a presentation by their business commentator Andrew Paterson and New Zealand Institute of Economic Research economist Shamubeel Eaqub. What could have easily turned out to be a quick once over of New Zealand’s economic landscape was in fact a valuable insight into what is currently influencing Northland businesses and what lessons can be learnt from those businesses that have continued to grow during the Global Financial Crisis. Along with outlining Northland’s current performance when compared to the national average, the presenters highlighted Whangarei’s favourable geographic proximity to Auckland and the opportunities that this will present in the future as pressure for growth within Auckland continues to impact on the quality of life of its residents. Our competitive advantage within some sectors-agriculture in particular- was also identified as a potential positive. The main lessons to be taken from the presentation were about what growing businesses were doing to continue their growth and competitive advantage. Much of what these successful businesses are doing should not in itself be a surprise, what is interesting is that this behaviour is seen as differentiating them from their competitors. It was hard to leave this presentation without thinking that surely all businesses should have been doing these things regardless of the economic environment that they operate in. One thing these business builders were doing was being incredibly focussed on customer acquisition and retention. No surprises here you would think. How they have gone about this however may cause some of us to re-think what we offer to the market. These companies are ensuring that their product or service offers an authentic, tangible value rather than perceived, intangible value. For this to happen this value must be sustainable, meaningful and is a net benefit to society. Often lack of demand is a key concern to businesses responding to our business confidence survey. What these findings have shown is that it is essential that businesses understand their market and critically examine what value they are offering to their customers. Investing in technology makes it easier to understand your market and to create communities of shared values. Conversely improved technology also means business needs to be responsive to customer expectations and ensure that they are met or exceeded. Finally for all this to come together requires investment in staff as they will ultimately be the people who ensure the success of a customer focussed business.

ADVOCATE COLUMN 4th WEEK MARCH 2013

I find the whole concept of what is a Central Business District, very interesting. I am sure that there are those experts in the field of urban design who are better qualified than me to define what elements or functions are present, that contribute to a space within an urban settlement that allow it to be described as a CBD. I also wonder how much these qualities have changed over time as behaviour of urban dwellers and businesses have changed and new technology has developed. Many long-term residents of Whangarei will have witnessed a spatial change in what is considered the geographical limits of our CBD over a long period of time. They will also have noticed a change in the way this land and its premises are used. Work habits and planning rules have allowed for many traditional occupiers of this space move elsewhere within the urban extent of the District. This in part has resulted in an over-supply of central city commercial property. I imagine one constant element that has always been present is people. There are those who come into the space for a specific product, service or activity and there are those who live or work in the space and it is convenient for them to avail themselves of the product, services and activities that are there. If there are less people working or living within the geographic confines of a CBD then this will directly impact on the businesses that rely on their patronage. So the recent news item outlining the possible relocation of all council staff and activities to under a single roof was encouraging news. Depending on the final location this offers the potential not only to have one of Whangarei’s biggest employers located in the heart of the CBD as opposed to on the edge of it, but also the opportunity to be attractant for people who to come into the heart of the CBD for council services to also use other central city businesses. A further by-product may be, to what use the vacated commercial space within Forum North is then put to. If occupied by Northtec then that would also add to the vibrancy and activity taking place on the edge of the CBD. While all this purely speculation at this time it does allow for the possibility of an interesting and positive change in the dynamics of our city. Imagine if inner city living was also be thrown into this mix.

ADVOCATE COLUMN 2nd WEEK MARCH 2013

This year will prove an interesting time from a local government perspective. Not only is this a local body election year but with pending consultation in relation to local government reform, this is possibly to be the last time Northland ratepayers get to elect their representatives under the current structure. General consensus seems to be that the existing entities are unlikely to exist in their current form by the end of the next election cycle. Unlike the consultation process undertaken at the time of the Trapski Brash review, there now seems to a more widespread desire for change on how we are governed. Ideally local government reform should result in building a more productive and competitive economy and delivering better public services to Northlanders. The tension between democracy and providing sustainable and affordable governance means there are many demands from many different sectors of our communities. We have a unique opportunity to look at our aspirations – how we wish to live, grow, create employment, attract investment and interact with other regions inside NZ and internationally. There may be value in working with our neighboring councils or joining within the region to create scale in order to achieve their aspirations at a higher level or become more efficient. It doesn’t automatically follow that amalgamation will be the best response. For example voluntary collaboration could be one way that councils could provide services across a region without resorting to amalgamation. Councils could retain their autonomy with respect to identity and expenditure and rate/ revenue raising decisions but, at the same time, achieve economies of scale in service delivery and address externalities associated with service provision. Unfortunately we are all aware the difficulty that has existed in the past between our region’s councils when it comes to adopting a collaborative approach. Perhaps some other governance framework other than amalgamation might also emerge from having a conversation to identify what best suits Northland’s communities. The point is we should not start with amalgamation or some other preconceived format as the answer and attempt to make it fit – it is important to have the conversation about why we are reviewing our governance before we determine what our response will be. Finally if organisational or territorial change does take place it should be remembered that that any new organisation that emerges from this process will be just that. It will be a new organisation to meet our future aspirations not one of our existing councils in a new form.

ADVOCATE COLUMN 4th WEEK FEBRUARY 2013

New Zealand Chambers of Commerce Northland has a wide range of resources available to assist start up businesses avoid many common pitfalls and is also a partner in the Regional Business Partnership whose objective is improved business capability for Northland businesses. There will always be entrepreneurs who have an aspiration and the energy to take on new challenges and according to a 2011 World Bank survey, New Zealand is ranked as the easiest place in the world to start a business and ranked only to Singapore and Hong Kong for ease of doing business. There are few restrictions on establishing, owning and operating a business in New Zealand. The process of starting a business can take as little as three days. Having said this, since 2003 the numbers of start-ups have been declining at an average of 1200 per annum. Much of this decline has occurred in service industries such as financial and insurance, real estate and professional, scientific and technical services. While there are currently more businesses exiting the market than entering, there will always be those who wish to start a new business. In some cases, difficult economic times and a tight labour market put people in a position where they feel that starting their own business may be the best way of providing them some financial security. This is supported by the fact that a large majority of New Zealand businesses are owner operators and most of start-ups do not have a significant number of employees. Obviously it is in everyone’s best interest if these businesses are long-lived and eventually grow their capacity to a level where they can become employers of local labour. Their sustainability will be dependent on a number of factors not the least of which is the degree of planning and research that they undertake prior to commencing their enterprise. Do you really know that the venture will be financially viable or how much money they will need to cover their overheads? Does the product or service have a compelling point of difference that will persuade the market to buy from them rather than a competitor? Does the aspiring entrepreneur have the skills, knowledge and personal attributes to run their own business successfully? There are many other questions they will also have to resolve but if they are unable to truthfully answer the above then perhaps further work is required before they place their personal assets at risk on an uninformed action.

ADVOCATE COLUMN 2nd WEEK FEBRUARY 2013

ADVOCATE COLUMN 2nd WEEK FEBRUARY 2013 Given the economic difficulties of the last three years it is hard not to notice the impact that a downturn in business growth has on the wider community. Or more specifically the interconnected nature of Northland’s various communities. It is very easy consider these various communities in isolation, for instance an arts community separated from and sports community separated from a business community and so on. The reality is that many Northlanders belong to many or more than one specific group. They share a common need for Northland to prosper so they participate in the activities they wish to be involved in. Depending on one’s political leanings there will be a diverse range of views on the benefits businesses provide the communities in which they operate. Obviously businesses need members of the wider community to purchase their products or services if they are to prosper and provide income for their owners and employees. But what does the community get in return? I would suggest that in general, the support given to businesses by their communities is more than reciprocated. For this reason when businesses experience difficult times this impacts negatively on the various communities to which they have connections or relationships. Many Northland businesses are very small and their management or at least those within the business who are responsible for decision making are very accessible. This accessibility leads to stronger connections with their customers and often a desire to contribute to the communities that they see themselves part of. It is often these local businesses –and not the large corporates- that are the first port of call for community groups seeking financial support or support in kind. We are now seeing the impact on these various community groups as a result of local businesses having experienced difficult times. Groups such as the Old Library and Northland Youth Theatre – and many others -do much to create a sense of place and quality of life and rely heavily on local support for their continued existence and over the years have experienced a wide range of public and private sector support. As business confidence improves and conditions ease, hopefully this support will also improve. On that note I would like to congratulate local businessman Mark Cromie for his generous financial support to Whangarei’s Salvation Army food bank which provided some much needed relief to a valuable community organisation in a time of need.

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.

ADVOCATE COLUMN 2nd WEEK SEPTEMBER 2012

ADVOCATE COLUMN 2nd WEEK SEPTEMBER 2012 The first week of this month marked Money Week. This was an initiative led by the Commission for Financial Literacy and Retirement Income. It was week-long series of financial education events and activities undertaken by many different organisations around the country to raise awareness of how people can better manage their money and where they can get help to do so. The objective being to inform people -whether they were employees or employers- about what areas of their financial life they need to make informed decisions about and who can assist them make positive money choices For Northland, financial literacy -like all forms of literacy- is essential to improving the capability of our work force and to empower people to take control of their finances. Over the last two and a half years many business people have had to increase their financial literacy as it relates to their businesses and how their businesses really operate. In many cases this has resulted in improved business practices and a higher level of management capability. With household credit card debt exceeding $3.5 billion, we need to take the lessons businesses have taken on board regarding living within their means and transfer these skills and knowledge into our homes. It is not a criticism of individual choices nor does it ignore the fact that we have a low waged economy, but rather a suggestion that the better informed we are, the better choices we can make. Unfortunately changing behaviour developed over a lifetime among our adult population will not be an easy task. Increasing the financial literacy and reinforcing good habits in those about to enter the work force or undertake tertiary education however is likely to have a higher chance of bringing about a positive financial result. For many young people tertiary study offers them their first taste of financial independence. They face decisions about student loans, leaving home and getting part time jobs. They need the skills that will lead to good financial decisions and that will set them up for their adult life Young people having a better understanding of financial matters would be of great benefit to Northland communities. It would allow them to make better decisions about debt and lifestyle and ensure that they can maximise their potential for a secure future. These same skills raise the capability of our workforce which in turn should raise productivity and wage levels.

BUSINESS ADVOCATE COLUMN SEPTEMBER 2012

BUSINESS ADVOCATE COLUMN SEPTEMBER 2012 NZ Chambers of Commerce have for a long time being advocating Northland businesses investigate the uptake of ultrafast broadband. If companies want to stay ahead of their competition they need to keep up with the latest developments that will result in robust, reliable and affordable data usage. Data usage in recent times in New Zealand has doubled and with the proliferation of smart devices this will only continue to grow as the consumers preferred choice to access information. It is amazing how often small business owners respond that they are not involved in technology and innovation so they do not see how their business would benefit from uptake of UFB. While it is true that UFB and the rural broadband initiative will provide the impetus for developing technology and innovation related businesses, this is not to say that the average or traditional business would not also benefit. Given that Northland is both isolated and that our business profile is predominately small enterprises, UFB can enable companies to use technology to increase their competitiveness through improved processes and to reduce their isolation through connectivity to a much larger market. A news article on television brought this home to me when it reported a post office in a rural mining town in Australia had experienced a large growth in its parcel delivery service directly related to online purchasing. It highlighted that a large majority of consumers are now shopping online and the opportunity that connectivity to a wider market can present any retailer anywhere in the world. As well as the expanded market, technology enables processes around sales and distribution to be streamlined in a manner that reduces the length of time between when an order is placed and the customer receives the product. This obviously reduces the time between when they receive and pay for the goods from their supplier and the time they in turn get paid by their own customers. Service will always be a critical factor and technology can allow any business to exceed the customer expectations. If you are in business in Northland and if you have previously thought that your business would not benefit from increased improvements to technology, then perhaps it would be worth your while to consult an IT expert regarding the subject or to look at what your competitors are doing that may be giving them a competitive edge.

ADVOCATE COLUMN 4th WEEK AUGUST 2012 With the entries for this year’s Westpac Northland Business Excellence Awards now closed I thought it would be worth revisiting another business award event that took place recently. That was the Te Tai Tokerau Maori Business of the year 2012 which was held in July in conjunction with the Te Hiringa Maori Business Expo. This was a thoroughly enjoyable and encouraging series of events that highlighted the achievements of Maori businesses, the whanau directing and supporting the enterprises and the unique Maori perspective that characterises their success. The overall winner this year was Kaikohe Scrap Dealers owned and operated by Gavin and Tahu Robertson. The convenor of judges, Steve Bennett highlighted “their winning formula based on manaakitanga, whanaungatanga and aroha ki te tangata. They embrace values of integrity, respect and honour in the way they do business which has won the admiration of its peers and confidence of Tai Tokerau hapori.” I would suggest that these values would stand any business in good stead when endeavouring to create a sustainable economic future. This event was very important to Northland for so many reasons. The success of our regional economy is strongly related to the success of Northland’s Maori economy. Lifting the performance of Maori business benefits all our communities. The success of this year’s entrants shows the value of raising the aspirations and capabilities of whanau to achieve this. Improved capability will grow capital and investment through higher income, greater savings and increased financial literacy. The Maori population is young and expected to grow significantly over the next decade. Their proportion of Northland’s workforce will continue to grow in the future and this workforce in a position to influence and contribute to our economic future. As a point of interest as to why under performance of this sector of our economy should not be underestimated is the unrealised potential benefit to our region. BERL recently estimated that the Maori asset base totals at least $36.9 billion nationally. Based on their modelling if the level of productivity in the Maori economy is lifted to equal the national level by 2061, the GDP contribution from the Maori economy could be $12.1 billion higher than it otherwise would be and there could be 148,000 more job opportunities. This transformation will require strengthening capability of Maori business and increased collaboration. Events such as Te Hiringa Maori Business Expo have a valuable role to play in this process.

ADVOCATE COLUMN 1st WEEK AUGUST 2012

We are now beginning to see the first physical signs of the roll out of UFB and RBI in Northland. Anyone who has visited the CBD lately will have seen Northpower Fibre technicians carrying out installation work connected with the Whangarei UFB roll out, while at the same time Bayley’s Beach residents have already benefited from improved connectivity bought about by the new cell phone tower which is part of Vodafone’s commitment to the RBI. Broadband is the new essential utility and is as vital to economic growth as clean water and good roads. UFB will provide every business the capability to access to reliable and ubiquitous broadband. It is the ability to do what you need to do, when you want to, where you are, and without having to compromise on quality. Northland has a two year competitive advantage during which we can exploit this utility to deliver better health, better education and more productivity and in doing so promote our region as progressive and business friendly . We will all need to embrace this technology in innovative ways. We need to consider what the outcomes are that this technology can provide and how will this change the way they operate? This is not just about doing things faster but about providing a platform on which rich content can be developed and used. For many businesses it will require a major change in behaviour for this to occur. Presently only 17% of New Zealand businesses sell direct to customers online via their own websites. At a regional level only 30% of Northland businesses have websites suggesting traditional businesses here have shown a reluctance to adopt new technology and innovation. With 80% of New Zealanders searching online first for products or service and 44% buying products, services or paying bills direct to websites, those businesses with websites must experience a competitive advantage. As more retail service providers come onboard with competitive and relevant supply offers for the consumer there is no reason for Northlanders not to take advantage of technology and grow their market. When accompanied by consistently high quality service and products this connectivity allows access to a national and global market not currently available to at least 70% of their regional competitors. Just as we as a region have an opportunity to benefit nationally from being early adopters, so to do individual businesses have an opportunity to be more competitive than other local businesses that fail to see the advantage that technology and innovation have to offer.

ADVOCATE COLUMN 4th WEEK JULY 2012

Congratulations to Mike Sabin for organising his recently held the Whole of Northland Economic Summit. This consisted of two separate seminars at which over 200 attendees from various sectors throughout Northland met to discuss those things that could enable economic growth and those things within our control that currently inhibit growth. The objective being to develop a plan of action that will allow Northland to lift its economic –and social- performance to a level that is comparable to the rest of the country. While it would be unrealistic to expect that at the completion of these two seminars the participants would have arrived at a fully resolved plan of action, it was encouraging to see the progress made and the level of support that Mr Sabin had garnered from his parliamentary colleagues for this projct. The presence of a number of key cabinet ministers was evidence that there is a willingness from central government to work with regions to grow their economies. There were a number of underlying themes that emerged during the two days and these were reasonably consistent across sectors. Foremost among these was the need for Northlanders to adopt a more collaborative approach to raise their performance and the for local government regulations to be business friendly and enabling of economic development. Neither of these was a surprise and they are regularly seen as critical drivers to us achieving our potential. It is also timely that they have again been raised as the subject of Northland’s future structure of local government is under scrutiny. While the existing structure of three districts and one regional council do not preclude collaboration and although all councils express a desire for it to occur, in last year’s “Local Government Options for Northland” report prepared by Sir Peter Trapski and Dr Don Brash, Sir Peter stated they saw little evidence of collaboration. There was also overwhelming support amongst those I spoke with during the seminars that there be a single plan for the whole of Northland that provides certainty and enables development. When considering changes to local government it will be important to examine all options available with an open mind and a strong focus on what we wish to achieve. Neither collaboration nor a single plan is reliant on structural organisational change within local government but in many cases it may be easier to bring about if there was a change.

ADVOCATE COLUMN 2nd WEEK JULY 2012

Although the playing field for economic development remains extremely uneven local government throughout New Zealand is trying, with limited resources, to play a meaningful economic development role in shaping the future of their communities. New Zealand Chambers of Commerce Northland strongly believe local government can make an important contribution to grow local economic activity by providing ‘business friendly’ services – responsive regulatory and consent regimes, low competitive rates - efficient infrastructure, positive promotion of the local area, attracting tourists and events. Councils rely on their local business sector to generate jobs, invest in the local economy and support the industries like tourism that benefit their whole community. As recently as May this year a MYOB Business Monitor quarterly survey reported that 64% of owners of Northland small to medium enterprises expressed dissatisfaction with the performance of their local councils in what was described as an environment of rising rates and arduous consenting processes. When it comes to identifying why business is dissatisfied with local government I would imagine it could be for a wide range of reasons. There may well be a sense of frustration around difficulties in resource consent processes, a sense that they are not getting value for money from ever-rising rates or that they just want councils to perform with the same level of efficiency and good governance as has been required of businesses during these difficult economic times. Equally when people have seen their lifetime endeavours put in jeopardy by influences beyond their control they may just be looking for someone to blame and councils can be an easy target. A common issue that arises when business talk of frustration with local government is the barriers that they perceive are in place around resource consent and compliance. However there is often little empirical evidence available to support this assertion and anecdotal evidence is often third or fourth hand. The Chamber is interested in hearing from business people who have directly experienced difficulties in obtaining resource consents. What their problems were and how they believe it impacted on our economy. We believe by sharing these experiences the private sector can then work collaboratively with local government to improve systems and to remove barriers that currently result in dissatisfaction with local government performance. This should not be about apportioning blame as all parties involved seek a prosperous and vibrant district. An evidence based solution will create a business friendly environment that enables economic development and benefits all communities.

BUSINESS ADVOCATE COLUMN JULY 2012

If existing markets are crowded and population growth limited, how do we grow new business? It seems like a tall order for an emerging enterprise to shoulder its way in amongst existing competitors or for existing local companies to compete against larger national operations. Yet for our regional economy to grow, it goes without saying that existing businesses must develop and grow and new businesses must enter the market. For these things to happen requires a high level of business capability, financial literacy and governance. The start point may well be for existing businesses of all scale to undertake a critical audit and establish what their current levels of the above attributes are. The challenge is how a business can examine their enterprise within a sufficiently rigorous and impartial framework that allows for them to develop a meaningful way forward. There are many very competent business consultants who can assist you to do this and this is a perfectly valid path to pursue. In most case this should result in an improved level of capability although the level of understanding of how your business works may still vary depending on the methods used in this process. The understanding of how your business operates across many aspects, of how it responds to change, of how it makes decisions on future direction and of how the result of these actions is confirmed by results is critical in being able to develop and grow in an ever-changing market. The Westpac Northland Business Excellence Awards have been developed to provide the first step in the process of understanding how your business operates, what its strengths and what areas you could work on to further develop and grow the enterprise. The entry form and accompanying workshops walk the business owner through the process of understanding your business and will quickly identify how your business is truly operating. Exposing yourself to this level of examination requires a degree of courage as the results may not always be pleasant. However where this is used as a start point from which a plan can be formulated that will develop and strengthen a business then the benefits will always outweigh any discomfort. New Zealand Chambers of Commerce is still accepting entrants in this year’s awards and would encourage all Northland businesses to consider entering as the first step in developing a competitive and sustainable business.