ADVOCATE COLUMN 3rd WEEK MAY 2011
The roll out of ultra-fast broadband (UFB) in Whangarei is now well underway and the Rural Broadband Initiative (RBI) is also not far off being launched. One of the projects that the Northland Chamber of Commerce is involved in is chairing the Regional Digital Leadership Forum. Membership of this group comes from local government, industry representatives, the business sector and community organisations. UFB will provide every business access to reliable and ubiquitous broadband. It is the ability to do what you need to do, where you are, and without having to compromise on quality.
These initiatives will provide a reliable connectivity with sufficient capacity to suit the needs of most people within our community. But all this actually will do is provide the means. To make the case for UFB compelling will require skills and a secure online environment with which to access or create content. If this can be achieved then there will be real benefit for all Northlanders. For a change New Zealand and Northland have a competitive advantage when compared to other parts of the world in that the small scale of the project and the relatively simple nature of the structure will allow for a potentially inclusive and collaborative approach.
Given some of the unique challenges Northland faces that are brought about by the physical geographic nature of the region; health and education are two sectors that will be able to embrace technology to enhance their capability and capacity. Just like business, the question these groups will have to consider is what the outcomes are that this technology can provide and how will this change the way they operate?
Technology will not in itself provide a panacea to the problems facing Northland but it is another opportunity to grow our economy and strengthen the Region’s various isolated communities. Even if the immediate gains are made only in the area of increased capability to deliver education and raise literacy levels, this will have a positive benefit and should be encouraged.
The rewards of UFB connectivity that people have confidence in, is the potential to create businesses capable of providing or using the content and services to grow Northland’s economy. For business this is not just about doing things faster but about providing a platform on which rich content can be developed and used. This will require a mindset shift among many within business to embrace this technology in innovative ways.
14 June 2011
BUSINESS ADVOCATE COLUMN MAY 2011
No matter the amount of planning, risk-management or sheer hard work, there is always the potential for things to go wrong with a business. It is often due to circumstances over which the individual has no control. This is evident in the number of businesses that cease trading every year. What is also evident is that there are many more who are willing to pursue their dreams of building a business. Obviously it would be great if we could reduce the number of businesses exiting the market each year while at the same time as increasing the number of new start-up businesses as this would result in economic growth.
The focus on reducing this “churn” relies on increasing the capability of these businesses and the productivity that this would result in. Northland businesses are generally small enterprises and while scale can present difficulties, it also allows for more opportunity to be flexible and innovative. With the right support these businesses can become very resilient to external pressures and very good at managing risks. Often though there is no substitute for knowledge gained from experience.
At a recent Northland Chamber of Commerce event we were lucky enough to have Auckland businessman Murray Higgs speak on his experiences in the area of export and manufacturing. With previous experience as trade commissioner to New York and working on the management teams of a number leading New Zealand companies including Fisher and Paykel, he is well-placed to pass on his knowledge and lessons learnt along the way.
There were a number of key messages that could relate to local business and I am sure that all the audience took away different lessons. An overriding message that applies to any business venture was to know your market. No matter how wonderful you think it is, you cannot sell a service or product that the market does not want.
Although the speaker had been involved in a range of sectors and roles during his business life (which is not yet over) other constants he identified were quality of product or service and the importance of strong relationships with others in the market that you are operating in. This is about learning from experience to make your business stronger. Equally the result of continuing to reinforce failure should not come as a surprise. It all sounds so simple. Which it is if the business learns from its mistakes, modifies its behaviour and responds to the market in which it operates.
No matter the amount of planning, risk-management or sheer hard work, there is always the potential for things to go wrong with a business. It is often due to circumstances over which the individual has no control. This is evident in the number of businesses that cease trading every year. What is also evident is that there are many more who are willing to pursue their dreams of building a business. Obviously it would be great if we could reduce the number of businesses exiting the market each year while at the same time as increasing the number of new start-up businesses as this would result in economic growth.
The focus on reducing this “churn” relies on increasing the capability of these businesses and the productivity that this would result in. Northland businesses are generally small enterprises and while scale can present difficulties, it also allows for more opportunity to be flexible and innovative. With the right support these businesses can become very resilient to external pressures and very good at managing risks. Often though there is no substitute for knowledge gained from experience.
At a recent Northland Chamber of Commerce event we were lucky enough to have Auckland businessman Murray Higgs speak on his experiences in the area of export and manufacturing. With previous experience as trade commissioner to New York and working on the management teams of a number leading New Zealand companies including Fisher and Paykel, he is well-placed to pass on his knowledge and lessons learnt along the way.
There were a number of key messages that could relate to local business and I am sure that all the audience took away different lessons. An overriding message that applies to any business venture was to know your market. No matter how wonderful you think it is, you cannot sell a service or product that the market does not want.
Although the speaker had been involved in a range of sectors and roles during his business life (which is not yet over) other constants he identified were quality of product or service and the importance of strong relationships with others in the market that you are operating in. This is about learning from experience to make your business stronger. Equally the result of continuing to reinforce failure should not come as a surprise. It all sounds so simple. Which it is if the business learns from its mistakes, modifies its behaviour and responds to the market in which it operates.
ADVOCATE COLUMN 1st WEEK JUNE 2011
A recent news item on TV3’s The Nation (8th May) highlighted a number of Northland’s shortcomings particularly in the areas of economic and social performance. They identified a several factors contributing to this including, a low percentage of the working aged population engaged in paid employment, lack of productivity, political complacency and low literacy rates. There is also a high reliance on primary production, the low waged economy of the tourism sector and a very low rating base.
This news is not surprising and cannot be laid solely and the feet of the global financial crisis as the many of these factors have existed for a number of years. Northland’s relative economic performance has long been below other similar sized regions. With a GDP that is half of Taranaki and about a quarter of Australia the challenge of initiating change is immense and if the contributing factors are varied, then there is unlikely to be any single solution to the problem.
TV3 should not be criticised for highlighting these issues as the conversation needs to be had and solutions need to be found. Having said this other than some valid comments made by Far North Mayor Wayne Brown and Tai Tokerau MP Hone Harawira very little was offered within the programme to suggest our regional leaders had a clear vision of how we are to initiate the change required but that may have been part of the programmes agenda.
Considering our population base, Northland is well represented (in numbers at least) at central government. Five members of parliament are domiciled here either as list or electorate MPs. What remains to be seen from these leaders is clarity of vision on what action is required to remedy our situation at a regional level. With limited funding available for infrastructure investment throughout the country, we need of representatives at national level to speak with a single voice to ensure we have what we need to develop our economy and raise the standard of living for all Northlanders.
Infrastructure investment in itself will not provide the answers. Change will rely on a multi-disciplinary approach with all stakeholders taking some responsibility of the situation and reacting accordingly. A large part in the change relies on changing in individual mindsets while another part is equipping our youth so they can fulfil their potential. However what is needed above all else is strong leadership from those who represent us at all levels of government.
A recent news item on TV3’s The Nation (8th May) highlighted a number of Northland’s shortcomings particularly in the areas of economic and social performance. They identified a several factors contributing to this including, a low percentage of the working aged population engaged in paid employment, lack of productivity, political complacency and low literacy rates. There is also a high reliance on primary production, the low waged economy of the tourism sector and a very low rating base.
This news is not surprising and cannot be laid solely and the feet of the global financial crisis as the many of these factors have existed for a number of years. Northland’s relative economic performance has long been below other similar sized regions. With a GDP that is half of Taranaki and about a quarter of Australia the challenge of initiating change is immense and if the contributing factors are varied, then there is unlikely to be any single solution to the problem.
TV3 should not be criticised for highlighting these issues as the conversation needs to be had and solutions need to be found. Having said this other than some valid comments made by Far North Mayor Wayne Brown and Tai Tokerau MP Hone Harawira very little was offered within the programme to suggest our regional leaders had a clear vision of how we are to initiate the change required but that may have been part of the programmes agenda.
Considering our population base, Northland is well represented (in numbers at least) at central government. Five members of parliament are domiciled here either as list or electorate MPs. What remains to be seen from these leaders is clarity of vision on what action is required to remedy our situation at a regional level. With limited funding available for infrastructure investment throughout the country, we need of representatives at national level to speak with a single voice to ensure we have what we need to develop our economy and raise the standard of living for all Northlanders.
Infrastructure investment in itself will not provide the answers. Change will rely on a multi-disciplinary approach with all stakeholders taking some responsibility of the situation and reacting accordingly. A large part in the change relies on changing in individual mindsets while another part is equipping our youth so they can fulfil their potential. However what is needed above all else is strong leadership from those who represent us at all levels of government.
LEADER COLUMN MAY 2011
Last year’s Westpac Northland Business Excellence Awards provided a great opportunity for Northland businesses to celebrate what they achieved to date and to plan where they want to be in the future. They are also an important business development tool. This year in recognition of the business development component of the Awards, all entrants will be eligible and encouraged to participate in a training needs assessment undertaken by Northland Business Grow Team. Following this assessment an action plan will be prepared for that business and in some cases the individual businesses may be able eligible for funding to assist in developing their business capability.
The 2011 Westpac Northland Business Excellence Awards are now open for entrants and details of categories and timings can be viewed by visiting www.northchamber.co.nz and clicking on the Award’s link. Because we recognise the time involved in preparing for the Awards, this year we are extending the time businesses have to complete their entries. The Northland Chamber of Commerce urges all businesses within the region to seriously consider entering and we are willing to do all they can to assist businesses in the process.
Once again we will be running a series of workshops to assist potential entrants understand the evaluation process and what is required from them when completing their entry form. Following these workshops, the Chamber 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 entrants will, be evaluated using a modified Baldrige criteria based closely on a standard developed by the New Zealand Business Excellence Foundation will be used. This system allows for the equitable comparison of businesses of unlike scale and nature based on measurable qualities. The judging process this year will be very similar to last year’s and it combines a desk-top business study followed up by on-site judging from the Westpac Northland Business Excellence Awards judging panel.
While every business person will ultimately judge the success of their own business on its bottom-line, past entrants have consistently commented that, the entry process provides real value to systematically examine their businesses and identify opportunities to improve what they do. By way of encouragement to enter the Awards this year, all category winners will receive a $6,500 media package to help them promote their businesses.
Last year’s Westpac Northland Business Excellence Awards provided a great opportunity for Northland businesses to celebrate what they achieved to date and to plan where they want to be in the future. They are also an important business development tool. This year in recognition of the business development component of the Awards, all entrants will be eligible and encouraged to participate in a training needs assessment undertaken by Northland Business Grow Team. Following this assessment an action plan will be prepared for that business and in some cases the individual businesses may be able eligible for funding to assist in developing their business capability.
The 2011 Westpac Northland Business Excellence Awards are now open for entrants and details of categories and timings can be viewed by visiting www.northchamber.co.nz and clicking on the Award’s link. Because we recognise the time involved in preparing for the Awards, this year we are extending the time businesses have to complete their entries. The Northland Chamber of Commerce urges all businesses within the region to seriously consider entering and we are willing to do all they can to assist businesses in the process.
Once again we will be running a series of workshops to assist potential entrants understand the evaluation process and what is required from them when completing their entry form. Following these workshops, the Chamber 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 entrants will, be evaluated using a modified Baldrige criteria based closely on a standard developed by the New Zealand Business Excellence Foundation will be used. This system allows for the equitable comparison of businesses of unlike scale and nature based on measurable qualities. The judging process this year will be very similar to last year’s and it combines a desk-top business study followed up by on-site judging from the Westpac Northland Business Excellence Awards judging panel.
While every business person will ultimately judge the success of their own business on its bottom-line, past entrants have consistently commented that, the entry process provides real value to systematically examine their businesses and identify opportunities to improve what they do. By way of encouragement to enter the Awards this year, all category winners will receive a $6,500 media package to help them promote their businesses.
LEADER COLUMN JUNE 2011
Having had the opportunity to attend the Northland Chamber of Commerce’s recent Business After 5 event where the Whangarei District Council provided an opportunity for local business to view the model of the proposed Hundertwasser Museum that is currently the subject of consultation, I was surprised by the high level of support from attendee’s for this project. My surprise comes from the fact that in general most Council projects seem to be met with resistance or indifference.
The museum is being promoted as part of a suite of projects that the Council see as reinvigorating the Town Basin and the Commercial Business District. Much of the work is already in the pipeline and is contracted to local businesses. As well as reinvigorating the inner city, it will provide a much needed boost for Whangarei’s construction industry. This is not the only sector that could benefit from these initiatives as there will be many opportunities for the creative, tourism and retail sectors, either from direct involvement or through spillover.
These various projects combine to provide one other major opportunity. That is the chance for Whangarei to positively enhance its reputation to the rest of New Zealand and to overseas visitors. Recent negative bad press has been justified as the economic and social statistics cannot and should not be ignored. However there are many reasons why many of us love to live here and by providing attractants that encourage visitors to come and spend time in Whangarei will give those people time to discover many of the unique and positive things our communities have to offer.
This is not to say that all will benefit. Many retailers in the CBD have had a difficult time over the last 2 years with a low demand from consumers and not a lot of support from other key inner city stakeholders. Logic would suggest that initially this work will concentrate consumer activity in close proximity to the planned projects. However with at least the proposed Hundertwasser and the Hihiaua Cultural Centre projects having the capability to act as major attractants for visitors, there is the potential for an increased demand for all business.
As always creating attractants and improving our physical environment will not by themselves be enough to change our reputation. If we fail to deliver a consistently high quality of service or product the nothing will change.
Having had the opportunity to attend the Northland Chamber of Commerce’s recent Business After 5 event where the Whangarei District Council provided an opportunity for local business to view the model of the proposed Hundertwasser Museum that is currently the subject of consultation, I was surprised by the high level of support from attendee’s for this project. My surprise comes from the fact that in general most Council projects seem to be met with resistance or indifference.
The museum is being promoted as part of a suite of projects that the Council see as reinvigorating the Town Basin and the Commercial Business District. Much of the work is already in the pipeline and is contracted to local businesses. As well as reinvigorating the inner city, it will provide a much needed boost for Whangarei’s construction industry. This is not the only sector that could benefit from these initiatives as there will be many opportunities for the creative, tourism and retail sectors, either from direct involvement or through spillover.
These various projects combine to provide one other major opportunity. That is the chance for Whangarei to positively enhance its reputation to the rest of New Zealand and to overseas visitors. Recent negative bad press has been justified as the economic and social statistics cannot and should not be ignored. However there are many reasons why many of us love to live here and by providing attractants that encourage visitors to come and spend time in Whangarei will give those people time to discover many of the unique and positive things our communities have to offer.
This is not to say that all will benefit. Many retailers in the CBD have had a difficult time over the last 2 years with a low demand from consumers and not a lot of support from other key inner city stakeholders. Logic would suggest that initially this work will concentrate consumer activity in close proximity to the planned projects. However with at least the proposed Hundertwasser and the Hihiaua Cultural Centre projects having the capability to act as major attractants for visitors, there is the potential for an increased demand for all business.
As always creating attractants and improving our physical environment will not by themselves be enough to change our reputation. If we fail to deliver a consistently high quality of service or product the nothing will change.
16 March 2011
ADVOCATE COLUMN 3rd WEEK MARCH 2011
The recently released “Local Government Options for Northland” report prepared by Sir Peter Trapski and Dr Don Brash makes interesting reading and offers something for everyone. It supports the Whangarei District Council in undertaking the study saying that it has been a timely exercise and one that will well place Northland for any future reviews around local government reform.
The authors both suggested that change at sometime in the future was probably both inevitable and necessary. This was hardly surprising given that the status quo has been in place for some 20 years and as with all forms of government, change over time is to be expected. They differed in their opinion as to what was the optimum form that such change should take and on a matter of process Dr Brash noted that it was very likely the authors of the McKinley Douglas report were encouraged to modify the recommendation made in their draft report that a single unitary authority was the most appropriate form to be adopted
It was also interesting to note Dr Brash’s comments in regards to the role that the former Rodney District may play in any future reform of Northland’s local government and the potential of not one or two but three unitary authorities. It was also noted that the empowerment of Northland’s many communities and the stewardship of the Kaipara Harbour would also require a great deal of work to resolve.
Both authors noted there was very little desire or interest from the wider community to change the status quo. This was in part expressed by Sir Peter in saying that local government should have regard to the views of submitters and “must try other measures before giving further consideration to restructuring”. These other measures generally related to collaboration and co-operation.
There is an obligation on all local authorities to collaborate and co-operate however Sir Peter stated “sadly we saw little evidence of that”. There has been a positive shift in the willingness of Northland’s councils to collaborate in recent times but there is still range of options of shared costs that could be explored. Comments were made by the authors of the need to distinguish between cost to individuals and cost to council. I would suggest that all Northlanders should read this report and then examine the respective council’s behaviour over the coming year and see what changes this report brings about in regards to them adopting “other measures”.
The recently released “Local Government Options for Northland” report prepared by Sir Peter Trapski and Dr Don Brash makes interesting reading and offers something for everyone. It supports the Whangarei District Council in undertaking the study saying that it has been a timely exercise and one that will well place Northland for any future reviews around local government reform.
The authors both suggested that change at sometime in the future was probably both inevitable and necessary. This was hardly surprising given that the status quo has been in place for some 20 years and as with all forms of government, change over time is to be expected. They differed in their opinion as to what was the optimum form that such change should take and on a matter of process Dr Brash noted that it was very likely the authors of the McKinley Douglas report were encouraged to modify the recommendation made in their draft report that a single unitary authority was the most appropriate form to be adopted
It was also interesting to note Dr Brash’s comments in regards to the role that the former Rodney District may play in any future reform of Northland’s local government and the potential of not one or two but three unitary authorities. It was also noted that the empowerment of Northland’s many communities and the stewardship of the Kaipara Harbour would also require a great deal of work to resolve.
Both authors noted there was very little desire or interest from the wider community to change the status quo. This was in part expressed by Sir Peter in saying that local government should have regard to the views of submitters and “must try other measures before giving further consideration to restructuring”. These other measures generally related to collaboration and co-operation.
There is an obligation on all local authorities to collaborate and co-operate however Sir Peter stated “sadly we saw little evidence of that”. There has been a positive shift in the willingness of Northland’s councils to collaborate in recent times but there is still range of options of shared costs that could be explored. Comments were made by the authors of the need to distinguish between cost to individuals and cost to council. I would suggest that all Northlanders should read this report and then examine the respective council’s behaviour over the coming year and see what changes this report brings about in regards to them adopting “other measures”.
15 March 2011
LEADER COLUMN MARCH 2011
How to create economic growth is not a new question. Since at least the late 1980’s (and probably at lot earlier), government, economists and the wider business community have given a great deal of time and energy examining ways to achieve growth. During this period, on average it would be hard to argue that any single policy has resulted in a quantum change in our economic performance.
At a regional level this is certainly the case. It is difficult to see the establishment of a high number of companies with large turnovers developing here in the near future. Without such companies many believe that it would be difficult to develop a vibrant regional economy. Yet without a vibrant regional economy Northland’s relative regional performance measured against various socio-economic indicators will continue to be poor.
Much of what has been done in the past has not resulted in significant growth. The reality is that for Northland’s performance to improve, it will require growth in an order that is more than just incremental. We need to look at those things that we have control of changing and implementing. One such thing is improving our business environment at a regional level in a manner that will encourage and empower Northlanders to achieve their economic potential.
What sort of change is going to drive people to start up and grow businesses in Northland? It is often said that many business people are risk takers, particularly those who we consider to be innovators or entrepreneurs. In truth we are probably assigning a label to this group unfairly. They often have a passion for, and knowledge of the product or service they wish to make or manufacture, that when accompanied by some rigorous analysis can mitigate much of the risk that many observers would perceive is involved in that venture.
We as a community should be ensuring that we create an environment that offers support to such people at all levels from the time they start up until the time they decide to pass their business on to others and take on new challenges. I would suggest that everyone in our region examine this year’s council annual plans and ask if these plans will create such an environment and then make submissions to their respective councils accordingly. These people can generate new wealth if we all do what is within our spheres of influence to remove unnecessary barriers or to provide more certainty around outcomes.
How to create economic growth is not a new question. Since at least the late 1980’s (and probably at lot earlier), government, economists and the wider business community have given a great deal of time and energy examining ways to achieve growth. During this period, on average it would be hard to argue that any single policy has resulted in a quantum change in our economic performance.
At a regional level this is certainly the case. It is difficult to see the establishment of a high number of companies with large turnovers developing here in the near future. Without such companies many believe that it would be difficult to develop a vibrant regional economy. Yet without a vibrant regional economy Northland’s relative regional performance measured against various socio-economic indicators will continue to be poor.
Much of what has been done in the past has not resulted in significant growth. The reality is that for Northland’s performance to improve, it will require growth in an order that is more than just incremental. We need to look at those things that we have control of changing and implementing. One such thing is improving our business environment at a regional level in a manner that will encourage and empower Northlanders to achieve their economic potential.
What sort of change is going to drive people to start up and grow businesses in Northland? It is often said that many business people are risk takers, particularly those who we consider to be innovators or entrepreneurs. In truth we are probably assigning a label to this group unfairly. They often have a passion for, and knowledge of the product or service they wish to make or manufacture, that when accompanied by some rigorous analysis can mitigate much of the risk that many observers would perceive is involved in that venture.
We as a community should be ensuring that we create an environment that offers support to such people at all levels from the time they start up until the time they decide to pass their business on to others and take on new challenges. I would suggest that everyone in our region examine this year’s council annual plans and ask if these plans will create such an environment and then make submissions to their respective councils accordingly. These people can generate new wealth if we all do what is within our spheres of influence to remove unnecessary barriers or to provide more certainty around outcomes.
03 March 2011
ADVOCATE COLUMN 1st WEEK MARCH 2011
When the performance of our regional economy is discussed, generally the importance of increasing Northland’s productivity is highlighted. Productivity is often measured in terms of gross domestic product per capita or income per capita. Looking at New Zealand’s economic and business profiles indicates what a challenge this presents. New Zealand’s low productivity is further reflected in the fact that an overwhelming majority (97 percent) of businesses is small to medium sized enterprises yet they account for only about 40% of our economic output.
In part this has to do with the nature of these businesses, which by necessity are forced to focus on the day-to-day running of their operations and often with very limited resources. These conditions result in business decisions being reactive rather than strategic. Yet while there are issues relating to increased productivity that can be resolved by way of improved training and experience over time, another factor critical to increased productivity and sustainability is governance.
Although some New Zealand businesses have good governance models, most do not. This is hardly surprising since a large percentage of them are small scale of family businesses. When family businesses do succeed, it is often due to an in-depth knowledge of the sector in which they operate and a long-term view.
It is when developing a long-term view that good governance is critical, it provides a framework for shared objectives, planning for growth and most importantly developing a succession pathway for future generations or other stakeholders. Lack of good governance is reflected in the fact that only a very small percentage of family businesses pass to a fourth generation.
In simple terms it is about deciding where the business owner wants to be in the future and implementing a series of actions that will enable this to occur. In doing so the business owner is forced to identify what opportunities they can take advantage of and what factors need to be mitigated or remedied to ensure their long-term goals can be achieved.
Governance through diverse and capable board members is not the exclusive domain of large business. All business can benefit from it and all business should examine developing governance models appropriate to the scale of their enterprises and aspirations. Through their networks business groups such as the Northland Chamber of Commerce provide the opportunity for small businesses to access a capable and diverse range people who can assist in these roles.
When the performance of our regional economy is discussed, generally the importance of increasing Northland’s productivity is highlighted. Productivity is often measured in terms of gross domestic product per capita or income per capita. Looking at New Zealand’s economic and business profiles indicates what a challenge this presents. New Zealand’s low productivity is further reflected in the fact that an overwhelming majority (97 percent) of businesses is small to medium sized enterprises yet they account for only about 40% of our economic output.
In part this has to do with the nature of these businesses, which by necessity are forced to focus on the day-to-day running of their operations and often with very limited resources. These conditions result in business decisions being reactive rather than strategic. Yet while there are issues relating to increased productivity that can be resolved by way of improved training and experience over time, another factor critical to increased productivity and sustainability is governance.
Although some New Zealand businesses have good governance models, most do not. This is hardly surprising since a large percentage of them are small scale of family businesses. When family businesses do succeed, it is often due to an in-depth knowledge of the sector in which they operate and a long-term view.
It is when developing a long-term view that good governance is critical, it provides a framework for shared objectives, planning for growth and most importantly developing a succession pathway for future generations or other stakeholders. Lack of good governance is reflected in the fact that only a very small percentage of family businesses pass to a fourth generation.
In simple terms it is about deciding where the business owner wants to be in the future and implementing a series of actions that will enable this to occur. In doing so the business owner is forced to identify what opportunities they can take advantage of and what factors need to be mitigated or remedied to ensure their long-term goals can be achieved.
Governance through diverse and capable board members is not the exclusive domain of large business. All business can benefit from it and all business should examine developing governance models appropriate to the scale of their enterprises and aspirations. Through their networks business groups such as the Northland Chamber of Commerce provide the opportunity for small businesses to access a capable and diverse range people who can assist in these roles.
16 February 2011
BUSINESS ADVOCATE ARTICLE JANUARY 2011
The start of the new year may well herald in the first tangible signs of change in Northland’s economic environment. Treasury is predicting growth in excess of three per cent, together with higher wages and a reduction unemployment numbers. This is not to say that many businesses are still experiencing difficult times but this news is accompanied by anecdotal evidence that things are finally beginning to improve.
This differs from last year where many businesses felt there was little correlation between what they were hearing from economic analysts in regards to positive growth and what they were seeing in their own operations. This lack of correlation was reflected in the low level of confidence shown in the Chamber of Commerce 2010 last quarterly Business Confidence Survey
As well as a slow return to positive growth there is also the Rugby World Cup which presents an opportunity for Northland businesses to market Northland to the world market as a place to visit, live or do business with. NZ 2011 Business Club has been created by the government to assist those businesses that do not have the resources to leverage business during this event. Local and overseas business-people can join the Club for no cost and then have the opportunity to be put in touch with each other at events showcasing local business.
However while the Rugby World Cup presents an opportunity for Northland business in the short-term, the region needs to look carefully as to what our long-term economic future is. If recent times have taught us anything it is the need to develop a robust and diverse regional economy based on well governed, sustainable businesses. This will require us to examine our existing economic profile and to identify those sectors that present opportunity for real growth.
One such area is manufacturing which is already a significant contributor to the regional GDP. More importantly in Whangarei almost 300 of these businesses have either the Regional or District Council as their landlords. If the councils believe that being landlords of large parcels of non-strategic (whatever this means) land is part of their core business then this provides these councils an opportunity to assist, or at the very least no hinder the development of those businesses.
Encouraging inward investment and new business to Northland is an admirable aspiration but ensuring existing enterprises have an environment in which they can prosper and grow our regional economy is equally important.
The start of the new year may well herald in the first tangible signs of change in Northland’s economic environment. Treasury is predicting growth in excess of three per cent, together with higher wages and a reduction unemployment numbers. This is not to say that many businesses are still experiencing difficult times but this news is accompanied by anecdotal evidence that things are finally beginning to improve.
This differs from last year where many businesses felt there was little correlation between what they were hearing from economic analysts in regards to positive growth and what they were seeing in their own operations. This lack of correlation was reflected in the low level of confidence shown in the Chamber of Commerce 2010 last quarterly Business Confidence Survey
As well as a slow return to positive growth there is also the Rugby World Cup which presents an opportunity for Northland businesses to market Northland to the world market as a place to visit, live or do business with. NZ 2011 Business Club has been created by the government to assist those businesses that do not have the resources to leverage business during this event. Local and overseas business-people can join the Club for no cost and then have the opportunity to be put in touch with each other at events showcasing local business.
However while the Rugby World Cup presents an opportunity for Northland business in the short-term, the region needs to look carefully as to what our long-term economic future is. If recent times have taught us anything it is the need to develop a robust and diverse regional economy based on well governed, sustainable businesses. This will require us to examine our existing economic profile and to identify those sectors that present opportunity for real growth.
One such area is manufacturing which is already a significant contributor to the regional GDP. More importantly in Whangarei almost 300 of these businesses have either the Regional or District Council as their landlords. If the councils believe that being landlords of large parcels of non-strategic (whatever this means) land is part of their core business then this provides these councils an opportunity to assist, or at the very least no hinder the development of those businesses.
Encouraging inward investment and new business to Northland is an admirable aspiration but ensuring existing enterprises have an environment in which they can prosper and grow our regional economy is equally important.
ADVOCATE COLUMN 3rd WEEK FEBRUARY 2011
Having someone to listen to you, occasionally challenge the way you do things and offer guidance based on their own experience can give a business owner the confidence that they are doing things the right way or at the very least are not missing out on potential opportunities to develop. Business Mentors New Zealand ( www.businessmentors.org.nz ) provides a mentoring service to businesses that have been operating for at least six months and is the owner’s main source of income. A registration fee of $100 + GST applies, which entitles you to use the mentoring service for two years. This is the only cost to you.
When a business is struggling they need all the help they can get. Using a mentor allows an independent perspective that may not be apparent to the owner. Many people do not engage a mentor until they notice things starting to go wrong with their business. There is merit in getting a mentor or outside assistance before you think you need it. Early involvement helps avoid pitfalls and gives the business the best chance of succeeding from the start.
Whangarei is blessed with a wide range of skilled and experienced accountants, lawyers, bankers and other business consultants that can offer assistance to businesses owners. Government departments also are a valuable resource for a struggling enterprise and the support they can provide should not be overlooked. The Northland Chamber of Commerce assists businesses in a number ways including on occasions using its network of members to help operators who may not meet the registration criteria of Business Mentors New Zealand.
Mentors may have many different reasons for giving up their time to assist struggling businesses. Apart from a desire to help Northland’s economic development it provides the opportunity for people who may are no longer be active in the business community to stay in contact with an environment that has been a large part of their life. Although all find the experience rewarding, the Northland Chamber of Commerce is always in search of new mentors to reduce the burden on these volunteers to assist new clients.
Growing Northland business is as much about ensuring existing businesses succeed and flourish as it is about encouraging inward investment and new business. The trickle-down effects from a business failing, impact on the entire community. Equally all Northlanders benefit from the presence of robust and sustainable local companies consistently providing quality service and products.
Having someone to listen to you, occasionally challenge the way you do things and offer guidance based on their own experience can give a business owner the confidence that they are doing things the right way or at the very least are not missing out on potential opportunities to develop. Business Mentors New Zealand ( www.businessmentors.org.nz ) provides a mentoring service to businesses that have been operating for at least six months and is the owner’s main source of income. A registration fee of $100 + GST applies, which entitles you to use the mentoring service for two years. This is the only cost to you.
When a business is struggling they need all the help they can get. Using a mentor allows an independent perspective that may not be apparent to the owner. Many people do not engage a mentor until they notice things starting to go wrong with their business. There is merit in getting a mentor or outside assistance before you think you need it. Early involvement helps avoid pitfalls and gives the business the best chance of succeeding from the start.
Whangarei is blessed with a wide range of skilled and experienced accountants, lawyers, bankers and other business consultants that can offer assistance to businesses owners. Government departments also are a valuable resource for a struggling enterprise and the support they can provide should not be overlooked. The Northland Chamber of Commerce assists businesses in a number ways including on occasions using its network of members to help operators who may not meet the registration criteria of Business Mentors New Zealand.
Mentors may have many different reasons for giving up their time to assist struggling businesses. Apart from a desire to help Northland’s economic development it provides the opportunity for people who may are no longer be active in the business community to stay in contact with an environment that has been a large part of their life. Although all find the experience rewarding, the Northland Chamber of Commerce is always in search of new mentors to reduce the burden on these volunteers to assist new clients.
Growing Northland business is as much about ensuring existing businesses succeed and flourish as it is about encouraging inward investment and new business. The trickle-down effects from a business failing, impact on the entire community. Equally all Northlanders benefit from the presence of robust and sustainable local companies consistently providing quality service and products.
LEADER COLUMN FEBRUARY 2011
Who would want to be a local body politician? Having a relatively high level of debt and needing to make some significant investment in infrastructure has created classic economic dilemma. There will only ever be a limit number of sources of income for a council and not all of these will be popular with all sectors of the community.
Obviously increased rates will always result in robust debate over the equity or otherwise of the existing rating system and to the Whangarei District Council’s credit they have recognised the need to re-examine current policy used to determine rates. Increasing the base from which rates are collected is another option and any initiative to grow the number of ratepayers has benefit. However r is currently little or no desire among developers to create new subdivisions particularly in light of policy regarding developer contributions (which are another revenue source).
Borrowing to invest in trans-generational infrastructure has its place if existing debt levels are sustainable. This still requires the capacity at some stage to generate sufficient income to repay the debt. If not this is just a further burden to be met by future generations due to the past and present generation’s lack of financial prudence.
Another option is selling existing non-essential assets (say land) and use funds from those sales to reinvest in essential assets (such as infrastructure). This is a valid approach but difficulty arises where the assets sold are also a source of income (leasehold land). In these instances there may be a desire to compensate for this loss of income by demanding a high premium.
This premium when attached to land sales is problematic. In a free market there will always be someone who may have their reasons to pay above market price. However given that recent economic difficulties arose out of global businesses having debt in excess of the value of the assets they were secured against, what banker, accountant or financial adviser would counsel their client to become encumbered with such debt? I am sure there is an argument regarding appreciation of property over time but this is more about property speculation than business development.
None of these courses of action may be particularly palatable, but this is a conversation that all ratepayers need to participate in and one that will require a high level of understanding if our counsels are to come to a satisfactory solution to the allocation of these scarce resources.
Who would want to be a local body politician? Having a relatively high level of debt and needing to make some significant investment in infrastructure has created classic economic dilemma. There will only ever be a limit number of sources of income for a council and not all of these will be popular with all sectors of the community.
Obviously increased rates will always result in robust debate over the equity or otherwise of the existing rating system and to the Whangarei District Council’s credit they have recognised the need to re-examine current policy used to determine rates. Increasing the base from which rates are collected is another option and any initiative to grow the number of ratepayers has benefit. However r is currently little or no desire among developers to create new subdivisions particularly in light of policy regarding developer contributions (which are another revenue source).
Borrowing to invest in trans-generational infrastructure has its place if existing debt levels are sustainable. This still requires the capacity at some stage to generate sufficient income to repay the debt. If not this is just a further burden to be met by future generations due to the past and present generation’s lack of financial prudence.
Another option is selling existing non-essential assets (say land) and use funds from those sales to reinvest in essential assets (such as infrastructure). This is a valid approach but difficulty arises where the assets sold are also a source of income (leasehold land). In these instances there may be a desire to compensate for this loss of income by demanding a high premium.
This premium when attached to land sales is problematic. In a free market there will always be someone who may have their reasons to pay above market price. However given that recent economic difficulties arose out of global businesses having debt in excess of the value of the assets they were secured against, what banker, accountant or financial adviser would counsel their client to become encumbered with such debt? I am sure there is an argument regarding appreciation of property over time but this is more about property speculation than business development.
None of these courses of action may be particularly palatable, but this is a conversation that all ratepayers need to participate in and one that will require a high level of understanding if our counsels are to come to a satisfactory solution to the allocation of these scarce resources.
02 February 2011
ADVOCATE COLUMN 1st WEEK FEBRUARY 2011
Northland’s 2010 Economic Profile (Infometrics Limited) makes interesting reading. Not for our poor economic performance when compared to other regions, but rather for the potential this report identifies. Surprisingly (to me) the largest contributor to regional GDP was not the agriculture, fishing and forestry sector as many would predict but rather the manufacturing sector which accounts for 16% of our GDP.
At a more detailed level it showed that tourism still makes a significant contribution (6%) to our GDP. The tourism sector generated $196 million in economic output in Northland in 2010. Over the last decade tourism in Northland has grown at just over 2% pa which is in line with the national average.
There was a decline in the overall number of business units but there is still growth (albeit slight) on average over the last decade. The number of business units is a key indicator of the preparedness of entrepreneurs to take risk and start new business. Any real change in our comparative performance against other regions will require a major shift in our business environment to stimulate entrepreneurial activity.
Primary industry is interesting because this is one area where Northland performs significantly above the national average. Accompanying this is the fact that Northland went against the national trend and grew value adding to primary production by 16.5%. This result along with the role manufacturing plays in our regional economy reinforces the need to concentrate on developing the potential of these sectors to stimulate our economy.
By themselves the sectors discussed above may lack the growth capacity to alone to significantly lift Northland’s economic performance. We need to find ways to grow export values and volumes in new areas such as IT, clean technology and energy or high-value food products.
As far as continuing to measure our success or otherwise by comparison with other regions, the Northland Chamber of Commerce thinks it may be worth considering having some absolute targets or a range of sustainable economic, social and environmental goals that when achieved the consequences would enable our economy to grow and the living standards for all of us to be improved.
Northland needs goals that all of us can relate to and become motivated and passionate to achieve. While there is both merit and room for aspiration, the goals we choose for Northland need to be realistic and achievable by a larger tier of business across a wider front.
Northland’s 2010 Economic Profile (Infometrics Limited) makes interesting reading. Not for our poor economic performance when compared to other regions, but rather for the potential this report identifies. Surprisingly (to me) the largest contributor to regional GDP was not the agriculture, fishing and forestry sector as many would predict but rather the manufacturing sector which accounts for 16% of our GDP.
At a more detailed level it showed that tourism still makes a significant contribution (6%) to our GDP. The tourism sector generated $196 million in economic output in Northland in 2010. Over the last decade tourism in Northland has grown at just over 2% pa which is in line with the national average.
There was a decline in the overall number of business units but there is still growth (albeit slight) on average over the last decade. The number of business units is a key indicator of the preparedness of entrepreneurs to take risk and start new business. Any real change in our comparative performance against other regions will require a major shift in our business environment to stimulate entrepreneurial activity.
Primary industry is interesting because this is one area where Northland performs significantly above the national average. Accompanying this is the fact that Northland went against the national trend and grew value adding to primary production by 16.5%. This result along with the role manufacturing plays in our regional economy reinforces the need to concentrate on developing the potential of these sectors to stimulate our economy.
By themselves the sectors discussed above may lack the growth capacity to alone to significantly lift Northland’s economic performance. We need to find ways to grow export values and volumes in new areas such as IT, clean technology and energy or high-value food products.
As far as continuing to measure our success or otherwise by comparison with other regions, the Northland Chamber of Commerce thinks it may be worth considering having some absolute targets or a range of sustainable economic, social and environmental goals that when achieved the consequences would enable our economy to grow and the living standards for all of us to be improved.
Northland needs goals that all of us can relate to and become motivated and passionate to achieve. While there is both merit and room for aspiration, the goals we choose for Northland need to be realistic and achievable by a larger tier of business across a wider front.
16 December 2010
16 December 2010
Media Release
Business Negative in Northland
For the second quarter in a row the Chamber of Commerce business survey confirms confidence at levels lower than they have been for over a decade.
Only a net 1% of business respondents in Northland believe business conditions will improve over the next six months. When you take in the view of businesses in the economic zone from Taupo to Northland, excluding Auckland, this lifts to 15%.
Chamber spokesperson, Tony Collins, said that many businesses had expected to deal with a downturn over a period of about one year but that this had now turned into two years and many businesses had battened down the hatches and gone into survival mode – “expect more casualties in the new year” was their prediction.
“Many small and medium businesses were experiencing strong consumer reluctance to spend or make decisions” they said.
It also seems that while business expects to benefit from the 80,000 credit cards the Rugby World Cup will bring to NZ they also appreciate that much of the infrastructure spend has been made and that post RWC 2011 there is little on the horizon domestically so we will remain at the mercy of a better performing world economy.
A further signal from the survey was the growing indication that skilled staff were increasingly difficult to find. In Northland 17% of businesses reported difficulty finding the right people with the right skills. In the economic zone Taupo - Northland, excluding Auckland, this was 23% and Auckland recorded 18%.
A further message from respondents to the survey suggested the most limiting factor to expansion was demand followed by finance – with many observing that despite the strong profit performance from the Banking sector, getting Bank support in difficult times was not easy.
Ends
CEO Northland Chamber of Commerce
Media Release
Business Negative in Northland
For the second quarter in a row the Chamber of Commerce business survey confirms confidence at levels lower than they have been for over a decade.
Only a net 1% of business respondents in Northland believe business conditions will improve over the next six months. When you take in the view of businesses in the economic zone from Taupo to Northland, excluding Auckland, this lifts to 15%.
Chamber spokesperson, Tony Collins, said that many businesses had expected to deal with a downturn over a period of about one year but that this had now turned into two years and many businesses had battened down the hatches and gone into survival mode – “expect more casualties in the new year” was their prediction.
“Many small and medium businesses were experiencing strong consumer reluctance to spend or make decisions” they said.
It also seems that while business expects to benefit from the 80,000 credit cards the Rugby World Cup will bring to NZ they also appreciate that much of the infrastructure spend has been made and that post RWC 2011 there is little on the horizon domestically so we will remain at the mercy of a better performing world economy.
A further signal from the survey was the growing indication that skilled staff were increasingly difficult to find. In Northland 17% of businesses reported difficulty finding the right people with the right skills. In the economic zone Taupo - Northland, excluding Auckland, this was 23% and Auckland recorded 18%.
A further message from respondents to the survey suggested the most limiting factor to expansion was demand followed by finance – with many observing that despite the strong profit performance from the Banking sector, getting Bank support in difficult times was not easy.
Ends
CEO Northland Chamber of Commerce
15 December 2010
14 December 2010
Media Release
THE CHAMBERS YEAR 2010
I would like to take this opportunity to thanks you for your support this year. The Chamber’s relationship with the Northland’s media is very important and we value your contribution. To give you of an indication of the work the Chamber has undertaken this year I have provided the following summary.
As a membership organisation and rely on the support of our members and the media to operate and to act as their regional representative on things related to business. This means we must continually examine what our role is and how we can remain relevant to those people within the community who we claim to represent.
Part of this process is looking at what it is we actually offer to our members and strengthening our relationships with them and with other key stakeholders in the community. I have personally met with almost a quarter of our members in the last twelve months with the view of establishing what they seek from the Northland Chamber of Commerce and how we can best support them in their business endeavours.
Over the last twelve months we have undertaken 39 event and numerous other activities which are of direct benefit to our members and the wider business community. These have included the Westpac Northland Business Excellence Awards, the Department of Labour Northland Workplace Productivity Study, coordinating Business Mentors New Zealand, 18 Business After 5s, the Small Business Update Seminar and many others.
These have provided a range of opportunities for Northland business to improve their performance and widen their networks.
We offer our members many savings for their businesses on various Chamber discounts and member to member deals and given them opportunities promote their businesses to other members. The Chamber network has been used to support and promote various events or programs being undertaken by Northland charities and not for profit organisations. The Chamber network also enables Northland business to undertake business elsewhere in New Zealand and overseas through the global network of Chambers of Commerce.
We have advocated on behalf of our members on a range of issues that we believe impact of their ability to do business or Northland’s economic development. This year we have spoken out for our members on:
• Various council’s Annual Plans
• Regional Policy Statements
• Regional Land Transport Strategies
• LTCCP
• Commercial Rates
• Local Government reform
• Support for the Hatea weir lock
• and many other issues.
In all instances we have tried to present a clear and positive perspective on what we believe will benefit Northland’s business communities.
The Chamber looks forward to continuing to adapt to the changing needs of our members and continuing to strengthen our relationships with various stakeholders throughout Northland. I hope the December proves to be a prosperous time for Northland and that the economic outlook in the New Year provides some sign of cheer for our region’s businesses.
Media Release
THE CHAMBERS YEAR 2010
I would like to take this opportunity to thanks you for your support this year. The Chamber’s relationship with the Northland’s media is very important and we value your contribution. To give you of an indication of the work the Chamber has undertaken this year I have provided the following summary.
As a membership organisation and rely on the support of our members and the media to operate and to act as their regional representative on things related to business. This means we must continually examine what our role is and how we can remain relevant to those people within the community who we claim to represent.
Part of this process is looking at what it is we actually offer to our members and strengthening our relationships with them and with other key stakeholders in the community. I have personally met with almost a quarter of our members in the last twelve months with the view of establishing what they seek from the Northland Chamber of Commerce and how we can best support them in their business endeavours.
Over the last twelve months we have undertaken 39 event and numerous other activities which are of direct benefit to our members and the wider business community. These have included the Westpac Northland Business Excellence Awards, the Department of Labour Northland Workplace Productivity Study, coordinating Business Mentors New Zealand, 18 Business After 5s, the Small Business Update Seminar and many others.
These have provided a range of opportunities for Northland business to improve their performance and widen their networks.
We offer our members many savings for their businesses on various Chamber discounts and member to member deals and given them opportunities promote their businesses to other members. The Chamber network has been used to support and promote various events or programs being undertaken by Northland charities and not for profit organisations. The Chamber network also enables Northland business to undertake business elsewhere in New Zealand and overseas through the global network of Chambers of Commerce.
We have advocated on behalf of our members on a range of issues that we believe impact of their ability to do business or Northland’s economic development. This year we have spoken out for our members on:
• Various council’s Annual Plans
• Regional Policy Statements
• Regional Land Transport Strategies
• LTCCP
• Commercial Rates
• Local Government reform
• Support for the Hatea weir lock
• and many other issues.
In all instances we have tried to present a clear and positive perspective on what we believe will benefit Northland’s business communities.
The Chamber looks forward to continuing to adapt to the changing needs of our members and continuing to strengthen our relationships with various stakeholders throughout Northland. I hope the December proves to be a prosperous time for Northland and that the economic outlook in the New Year provides some sign of cheer for our region’s businesses.
01 December 2010
LEADER COLUMN NOVEMBER 2010
A recent brief conversation with Monty Knight of Okahu Estate Vineyard and Winery got me thinking about the role of the wine industry has to play in Northland’s regional economy. In many ways this industry captures all the opportunities and challenges that are faced by today’s business people. It can be a high risk enterprise requiring a large amount of optimism, an unstinting passion for the pursuit of excellence and is subject to all the vagaries of the environment and economy.
It also speaks of Northland’s cultural landscape, going back to early colonial days, it has strong historical relevance and has enjoyed somewhat of a renaissance in recent times as our palettes become more sophisticated and we recognise that on occasions Northlanders can compete both on price and quality in an incredibly competitive environment.
This competiveness was exemplified at the recent New Zealand International Wine Awards. These awards are New Zealand’s largest and open to both New Zealand and internationally-produced wines. Northland wineries were awarded 21 medals including three gold medals, four silvers and fourteen bronze. The fact that these wineries were spread between Mangawhai and Karikari indicates that this is not confined to a small part of the region but spread throughout Northland.
Northland’s environmental conditions lend themselves towards producing wines with a different style and flavour profile from other parts of the country. We will be limited by suitable land but we have a proven capability to create quality wines. This and the recent success at competitions are important for two reasons. Firstly predicted higher excise costs will present a significant threat to the industry particularly if these costs cannot be passed on to consumers. Quality and regional distinctiveness may provide a competitive advantage over high volume, low priced producers.
More importantly, wine provides more than a product, it provides an experience. Wine can be both a destination and a reason to travel. Wellingtonians flock to the Waiarapa every weekend to sample wine and produce and there is no reason why Northland cannot be promoted in the same manner to the Auckland market. It may not be a large market but it is important to our reputation and complementary to our larger tourism market. Within the blandness of the global market those things unique to Northland such as of distinctive wines created as a result of our history, culture and sub-tropical natural environment give our region a point of difference in a crowded market.
A recent brief conversation with Monty Knight of Okahu Estate Vineyard and Winery got me thinking about the role of the wine industry has to play in Northland’s regional economy. In many ways this industry captures all the opportunities and challenges that are faced by today’s business people. It can be a high risk enterprise requiring a large amount of optimism, an unstinting passion for the pursuit of excellence and is subject to all the vagaries of the environment and economy.
It also speaks of Northland’s cultural landscape, going back to early colonial days, it has strong historical relevance and has enjoyed somewhat of a renaissance in recent times as our palettes become more sophisticated and we recognise that on occasions Northlanders can compete both on price and quality in an incredibly competitive environment.
This competiveness was exemplified at the recent New Zealand International Wine Awards. These awards are New Zealand’s largest and open to both New Zealand and internationally-produced wines. Northland wineries were awarded 21 medals including three gold medals, four silvers and fourteen bronze. The fact that these wineries were spread between Mangawhai and Karikari indicates that this is not confined to a small part of the region but spread throughout Northland.
Northland’s environmental conditions lend themselves towards producing wines with a different style and flavour profile from other parts of the country. We will be limited by suitable land but we have a proven capability to create quality wines. This and the recent success at competitions are important for two reasons. Firstly predicted higher excise costs will present a significant threat to the industry particularly if these costs cannot be passed on to consumers. Quality and regional distinctiveness may provide a competitive advantage over high volume, low priced producers.
More importantly, wine provides more than a product, it provides an experience. Wine can be both a destination and a reason to travel. Wellingtonians flock to the Waiarapa every weekend to sample wine and produce and there is no reason why Northland cannot be promoted in the same manner to the Auckland market. It may not be a large market but it is important to our reputation and complementary to our larger tourism market. Within the blandness of the global market those things unique to Northland such as of distinctive wines created as a result of our history, culture and sub-tropical natural environment give our region a point of difference in a crowded market.
ADVOCATE COLUMN 1st WEEK DECEMBER 2010
I would like to start by stating that in the past I have been very sceptical about whether the Whangarei District Council’s proposed Hundertwasser Museum was an appropriate development for our city. While I recognise the significant global contribution to art Friedensreich Hundertwasser has made, on a personal note my sense of aesthetic lie elsewhere. This has probably led to my opinion that perhaps there would be better uses that this site could be put to.
However it is interesting to consider the opportunities that such a development may present. You only have to travel to Kawakawa to realise there is a demand for attractions associated with this artist and the commercial spin-offs they can create. So what would such an attraction mean for Whangarei? For a start it would provide a reason for northbound travellers to visit, stay and spend in Whangarei. It may increase the nights tourists spend in Whangarei and provide a real point of difference when marketing Northland against other similar coastal destinations.
Whatever the attraction ends up being, Whangarei still needs a point of arrival that will direct or divert northbound traffic into the commercial business district and to these draw cards. At present this is the I-Site at Tawera Park which I believe is in the right location. With future changes to State Highway One this point of entry to Whangarei will become more critical as by-passing the city will become easier for the traveller. Thought and resources need to be committed to making this important gateway stronger, more visible and the route to our CBD more legible.
There is no doubt that within an integrated vision for Whangarei a world-class attraction is required. The supporters of the Hundertwasser project do have some work to do if they wish to garner support from the wider community. There is the issue regarding the apparent lack of consultation and transparency of this project in the past, but this in itself (like personal aesthetic) should not a reason for not supporting it.
The suitability of Hundertwasser Museum should be subject to a rigorous independent cost benefit analysis which could be used to inform the public of why this project is or is not essential to Whangarei’s future economic well-being. If the benefit of this or any other project can be substantiated, then we should set aside our personal aesthetics and support any initiative that will contribute to the region’s growth.
I would like to start by stating that in the past I have been very sceptical about whether the Whangarei District Council’s proposed Hundertwasser Museum was an appropriate development for our city. While I recognise the significant global contribution to art Friedensreich Hundertwasser has made, on a personal note my sense of aesthetic lie elsewhere. This has probably led to my opinion that perhaps there would be better uses that this site could be put to.
However it is interesting to consider the opportunities that such a development may present. You only have to travel to Kawakawa to realise there is a demand for attractions associated with this artist and the commercial spin-offs they can create. So what would such an attraction mean for Whangarei? For a start it would provide a reason for northbound travellers to visit, stay and spend in Whangarei. It may increase the nights tourists spend in Whangarei and provide a real point of difference when marketing Northland against other similar coastal destinations.
Whatever the attraction ends up being, Whangarei still needs a point of arrival that will direct or divert northbound traffic into the commercial business district and to these draw cards. At present this is the I-Site at Tawera Park which I believe is in the right location. With future changes to State Highway One this point of entry to Whangarei will become more critical as by-passing the city will become easier for the traveller. Thought and resources need to be committed to making this important gateway stronger, more visible and the route to our CBD more legible.
There is no doubt that within an integrated vision for Whangarei a world-class attraction is required. The supporters of the Hundertwasser project do have some work to do if they wish to garner support from the wider community. There is the issue regarding the apparent lack of consultation and transparency of this project in the past, but this in itself (like personal aesthetic) should not a reason for not supporting it.
The suitability of Hundertwasser Museum should be subject to a rigorous independent cost benefit analysis which could be used to inform the public of why this project is or is not essential to Whangarei’s future economic well-being. If the benefit of this or any other project can be substantiated, then we should set aside our personal aesthetics and support any initiative that will contribute to the region’s growth.
18 November 2010
ADVOCATE COLUMN 3rd WEEK NOVEMBER 2010
Recently I was lucky to attend two entirely different presentations addressing aspects of leadership and organisational change. What was interesting about these two events was that although the businesses concerned came from opposite ends of the spectrum in regards to the scale, they both grappled with the same issues.
The first of these events was a BNZ hosted seminar where the facilitator Adam Isa from Whangarei Paper Plus spoke of the challenges he encountered when he took over his business 3 years ago and the strategies he has used to overcome them. Adam’s business won this year’s More FM Customer Choice Award at the Westpac Northland Business Excellence Awards. He spoke of the various methods and material he used to provide guidance on how to implement this change. This even included the use of book call “Fish!: A Remarkable Way to Boost Morale and Improve Results” by Stephen Lunden et al which applies the simple but effective lessons of the Pike Place fishmongers to the corporate environment as it explains how to transform the workplace.
The second event was a business at the other end of the spectrum. At a lunch hosted by Northtec, Scott Carr New Zealand GM of Air New Zealand spoke of his organisations journey from the brink of disaster to winner of the Air Transport World Global Airline Awards “Airline of the year”. He related how they first identified that they were about flying people and not planes. He then outlined four key values they had implemented for all members of their organisation to adopt so they could express their truly unique New Zealand character.
What was common with both these examples was that the change was not initiated by accident but by deliberate and conscious action on behalf of their management teams. This was accompanied by a clear understanding by all of those involved with the business as to what the end goal was and what was expected from them as individuals. It was the desired end goal in both cases that is most telling in the level of their success. These businesses have set incredibly high standards for themselves at an aspirational level which near to unachievable. Both also recognised that change is constant and when a company achieves what it aspires to it is time to reset the goals. In doing this they have implemented real organisational change accompanied by economic benefit.
Recently I was lucky to attend two entirely different presentations addressing aspects of leadership and organisational change. What was interesting about these two events was that although the businesses concerned came from opposite ends of the spectrum in regards to the scale, they both grappled with the same issues.
The first of these events was a BNZ hosted seminar where the facilitator Adam Isa from Whangarei Paper Plus spoke of the challenges he encountered when he took over his business 3 years ago and the strategies he has used to overcome them. Adam’s business won this year’s More FM Customer Choice Award at the Westpac Northland Business Excellence Awards. He spoke of the various methods and material he used to provide guidance on how to implement this change. This even included the use of book call “Fish!: A Remarkable Way to Boost Morale and Improve Results” by Stephen Lunden et al which applies the simple but effective lessons of the Pike Place fishmongers to the corporate environment as it explains how to transform the workplace.
The second event was a business at the other end of the spectrum. At a lunch hosted by Northtec, Scott Carr New Zealand GM of Air New Zealand spoke of his organisations journey from the brink of disaster to winner of the Air Transport World Global Airline Awards “Airline of the year”. He related how they first identified that they were about flying people and not planes. He then outlined four key values they had implemented for all members of their organisation to adopt so they could express their truly unique New Zealand character.
What was common with both these examples was that the change was not initiated by accident but by deliberate and conscious action on behalf of their management teams. This was accompanied by a clear understanding by all of those involved with the business as to what the end goal was and what was expected from them as individuals. It was the desired end goal in both cases that is most telling in the level of their success. These businesses have set incredibly high standards for themselves at an aspirational level which near to unachievable. Both also recognised that change is constant and when a company achieves what it aspires to it is time to reset the goals. In doing this they have implemented real organisational change accompanied by economic benefit.
22 September 2009
Hatea River Crossing
In August of this year the Hatea Hub Group presented the council with an alternative harbour crossing option to that of the proposed bridge. This interest group consisting of business people, designers, engineers and ecologists proposed rather than spanning the upper harbour with a traditional bridge, a combination of a weir and drawbridge/lock was proposed to the council which they are considering and evaluating against the proposed bridge options.
This raised a number of questions that the Hatea Hub Group has responded to.
Will it have a significant detrimental effect on flooding of the CBD in extreme weather/rainfall?
• With the inclusion of several moveable “gates”, the lock being able to be open in extreme rainfall events and the design height of the weir (2.2m above Chart datum) calculations by engineers have shown there to be negligible impact.
Will the harbour silt up?
• The same amount of silt will come down regardless of the “lock”, the distribution will change and further modeling will be done. Most silt will come down in extreme rainfall events, and this is when the “gates” are open, however with the water above the weir being 2.2m above CD the (annual) task of dredging will be a lot easier in that area.
Will all the mangroves die?
• No, very unlikely with the 2.2m weir height a lot of the pneumatophores will be exposed at this level. What will happen is that they are less likely to spread further into the channels in the upper harbour.
Will it cost too much?
• Cost estimations done so far show increased costing compared with just the bridge, however the available budget may well be sufficient to cope with the suggested extensions. (Some estimations have shown this).
• If there is an extra $5-$8 million required for the lock/bridge /weir concept, the longer term significant economic returns will justify initial extra expenditure.
Will it work?
• Yes, the concept will leave a feeling of full tide in the upper harbour and allow greater access between land and water. There will still be some tidal movement from neap to spring above the weir with ranges from .3 to 1.1m.
Will the consenting take too long?
• Where there is a will, there is a way. RMA processes can be streamlined if projects are given priority. Politicians at local, regional and national level have committed to working towards resolving our current recession and cutting through red tape. This project creates infrastructure that will generate significant long term opportunities and benefits for our region.
How will it affect the yacht/boats travelling to and from Whangarei Town Basin?
• Approx 2 hours either side of high tide the lock can remain opened, so in that time period the yachts will have the same issue as with the “conventional” bridge/draw bridge. Times outside these periods they will go through the lock which is not very complicated. There will also be a period around peak vehicle traffic hours when the bridge would need to remain closed.
Water quality?
• With the “gates” and the tidal movement over the weir, coupled with the “ability” to allow full natural tidal movement when required, therefore the water quality should not be adversely affected. Indeed when we embrace this concept and spend more time on and around the water in Whangarei we will be far more “vigilant” regarding the quality of the water.
Weir is set at 2.2m above “Chart Datum” which means that there will still be a tidal flow in and out of the harbour, however it will not drop below level of weir maintaining a full tide feel in the town basin.
The twice daily tidal flow will assist in retaining the water quality which can also be manipulated through the gate system, thereby ensuring good water quality.
Benefits of the Proposal
The Northland Chamber of Commerce believe the proposal are reinforces the principles of the WDC 20/20+ vision and acts as a catalyst to achieve many of the objectives and actions of that strategy.
At a recent Tourism Trust meeting we defined Whangarei’s “Unique point of Difference”.
In essence this is “our relationship with the water”. Whangarei is a nautical city, meeting place of mariners, early Maori with waka, early traders, the harbour, the marine industry, the beaches, off shore Islands, Poor Knights, over a hundred beaches, sailing, fishing, paddling, diving, skiing, in short all our draw cards are focused around the theme of water.
The lock/bridge system would built on this and be the catalyst for a facelift of the city: “The city where the tide has turned”.
The benefits of this proposal are wide and varied. The Chamber believes the proposed weir / lock option will generate the following positive outcomes.
Marketing of the Whangarei District
• Only place in NZ with lock/bridge concept
• Fantastic looking yacht harbour in city center
o The annual value of the international visiting yachts for Whangarei lies around$8 million per annum, improved and enhanced facilities will likely double this within a few years
• City with “canals” through center
• Strong people/water relationship/interaction
• Water themes throughout the city
• Attractive boulevards
Recreational opportunities
• Waka ama paddling
• General canoeing
• Dinghy sailing
• Rowing
• Model boat sailing
• Water recreation
Economic development
• Waterfront property development ( $100 Million in development over time)
o A mix of apartments, shops, café’s, art, hotels etc will significantly boost our economy
• Tourism growth
o With 4.3 million “visitors” driving to Whangarei, if we capture 10% and sell a coffee we increase turnover by $4 million, however if we have an attractive center with things to see and do, we may increase the daily expenditure to $100, giving a $40 million boost. An overnight experience sees an expenditure of $300, even if 5 % of the visitors decided on this it will add $60 million p/a, and this is year after year!
• Waterfront facilities
o Approx 4 k of waterfront with footpaths, cycle ways, jetties, wharfs etc will need to be designed and built
• Employment opportunities
o In tourism, retail, hotel/café, water sports etc
• Planning and design around water heart
o The creation of unique designed buildings, art work, people spaces etc
o Fitting in with vision 20/20
Maori development opportunities are significant
• Hihiaua cultural center
o A centre piece in the development surrounded by both the Hatea and Waiarohia rivers
• Waka trips
o With the higher tide level hourly trips to and from the town basin can be organized to fit in with other tourism product
• Carving/building school
• Voyage canoe history
o Most powerful display of navigation skills and traditional voyaging techniques
Walking/cycle ways development
• Around water heart
• Increase use of city environment
• Opportunities for community walks/events
• Ultimate living environment
Café/waterfront development (several $Million TO p/a)
• Entertainment hub
• Variety in options/choices
• Arts/crafts precinct
• Various sculptures around water center
Hotel
• A bustling center is an attractive option
• 4-5 star hotel will stack up from an economical point of view ($7 million plus p/a)
• Conference facilities
• Supported by variety of work/play options
• Buzzing center , aquatic heart, pumping place to be
• Only 1.5 hrs away from Auckland
Traffic
• Easing of traffic in inner city
• Easier access to Whangarei Heads etc
• Parking opportunities on Pohe Island when big events take place at Okara Park Stadium
Events
• Rowing races
• World championship Waka Ama
• Small boat sailing
• Dragon boat racing
• On water musical event
• Boat shows
• Annual pirate parades
• The economic value of these kind of events is significant (several million p/a)
• The marketing of Whangarei District will be greatly enhanced by this!
Celebrating a city with vision
• Inspiring place to be
• Great place to work
• Great place to invest
• Place to be proud of and going in a positive direction
All these benefits can be derived if we can overcome the challenges that come with doing something a little different. The key to the above has to be the lock/bridge concept. It is the catalyst that will enable a whole raft of opportunities. Without this we will remain a city without a point of difference.
Add up all the potential benefits, add up all the “risks”… can we afford not to take the next step?
Next week WDC will consider the various options before them based on the recommendations made by WDC engineers.
It is important to understand that the report has been very conservative in its approach regarding
• Construction costs
• Ecological and water quality issues
• Flooding effects
• Consenting and timing
• Sedimentation
Also the report has not addressed the economic, social and environmental benefits of the weir.
Regarding the economic benefits these are significant in particular regarding waterfront development, tourism opportunities, yachting facilities and numerous aquatic events that will both profile the city, deliver sustainable economic returns and will be lost if we do not go for the weir option.
If the extra cost was to be close to $8 million than this has to be balanced with the long term economic opportunity and these costs could be spread over 20 years and other avenues for raising this money are available.
The Whangarei District Council has shown vision and leadership in the past. They have been long been effective in procuring funds from Central Government for local infrastructure and should be applauded for this. Once again they have the chance to make a real and meaningful difference to Whangarei’s urban fabric. This proposal will be of great benefit either directly or indirectly to all rate payers and members of the community.
Here is a real opportunity to grow the Town Basin and to influence and inspire busness vitality in the Northland Region
Tony Collins
In August of this year the Hatea Hub Group presented the council with an alternative harbour crossing option to that of the proposed bridge. This interest group consisting of business people, designers, engineers and ecologists proposed rather than spanning the upper harbour with a traditional bridge, a combination of a weir and drawbridge/lock was proposed to the council which they are considering and evaluating against the proposed bridge options.
This raised a number of questions that the Hatea Hub Group has responded to.
Will it have a significant detrimental effect on flooding of the CBD in extreme weather/rainfall?
• With the inclusion of several moveable “gates”, the lock being able to be open in extreme rainfall events and the design height of the weir (2.2m above Chart datum) calculations by engineers have shown there to be negligible impact.
Will the harbour silt up?
• The same amount of silt will come down regardless of the “lock”, the distribution will change and further modeling will be done. Most silt will come down in extreme rainfall events, and this is when the “gates” are open, however with the water above the weir being 2.2m above CD the (annual) task of dredging will be a lot easier in that area.
Will all the mangroves die?
• No, very unlikely with the 2.2m weir height a lot of the pneumatophores will be exposed at this level. What will happen is that they are less likely to spread further into the channels in the upper harbour.
Will it cost too much?
• Cost estimations done so far show increased costing compared with just the bridge, however the available budget may well be sufficient to cope with the suggested extensions. (Some estimations have shown this).
• If there is an extra $5-$8 million required for the lock/bridge /weir concept, the longer term significant economic returns will justify initial extra expenditure.
Will it work?
• Yes, the concept will leave a feeling of full tide in the upper harbour and allow greater access between land and water. There will still be some tidal movement from neap to spring above the weir with ranges from .3 to 1.1m.
Will the consenting take too long?
• Where there is a will, there is a way. RMA processes can be streamlined if projects are given priority. Politicians at local, regional and national level have committed to working towards resolving our current recession and cutting through red tape. This project creates infrastructure that will generate significant long term opportunities and benefits for our region.
How will it affect the yacht/boats travelling to and from Whangarei Town Basin?
• Approx 2 hours either side of high tide the lock can remain opened, so in that time period the yachts will have the same issue as with the “conventional” bridge/draw bridge. Times outside these periods they will go through the lock which is not very complicated. There will also be a period around peak vehicle traffic hours when the bridge would need to remain closed.
Water quality?
• With the “gates” and the tidal movement over the weir, coupled with the “ability” to allow full natural tidal movement when required, therefore the water quality should not be adversely affected. Indeed when we embrace this concept and spend more time on and around the water in Whangarei we will be far more “vigilant” regarding the quality of the water.
Weir is set at 2.2m above “Chart Datum” which means that there will still be a tidal flow in and out of the harbour, however it will not drop below level of weir maintaining a full tide feel in the town basin.
The twice daily tidal flow will assist in retaining the water quality which can also be manipulated through the gate system, thereby ensuring good water quality.
Benefits of the Proposal
The Northland Chamber of Commerce believe the proposal are reinforces the principles of the WDC 20/20+ vision and acts as a catalyst to achieve many of the objectives and actions of that strategy.
At a recent Tourism Trust meeting we defined Whangarei’s “Unique point of Difference”.
In essence this is “our relationship with the water”. Whangarei is a nautical city, meeting place of mariners, early Maori with waka, early traders, the harbour, the marine industry, the beaches, off shore Islands, Poor Knights, over a hundred beaches, sailing, fishing, paddling, diving, skiing, in short all our draw cards are focused around the theme of water.
The lock/bridge system would built on this and be the catalyst for a facelift of the city: “The city where the tide has turned”.
The benefits of this proposal are wide and varied. The Chamber believes the proposed weir / lock option will generate the following positive outcomes.
Marketing of the Whangarei District
• Only place in NZ with lock/bridge concept
• Fantastic looking yacht harbour in city center
o The annual value of the international visiting yachts for Whangarei lies around$8 million per annum, improved and enhanced facilities will likely double this within a few years
• City with “canals” through center
• Strong people/water relationship/interaction
• Water themes throughout the city
• Attractive boulevards
Recreational opportunities
• Waka ama paddling
• General canoeing
• Dinghy sailing
• Rowing
• Model boat sailing
• Water recreation
Economic development
• Waterfront property development ( $100 Million in development over time)
o A mix of apartments, shops, café’s, art, hotels etc will significantly boost our economy
• Tourism growth
o With 4.3 million “visitors” driving to Whangarei, if we capture 10% and sell a coffee we increase turnover by $4 million, however if we have an attractive center with things to see and do, we may increase the daily expenditure to $100, giving a $40 million boost. An overnight experience sees an expenditure of $300, even if 5 % of the visitors decided on this it will add $60 million p/a, and this is year after year!
• Waterfront facilities
o Approx 4 k of waterfront with footpaths, cycle ways, jetties, wharfs etc will need to be designed and built
• Employment opportunities
o In tourism, retail, hotel/café, water sports etc
• Planning and design around water heart
o The creation of unique designed buildings, art work, people spaces etc
o Fitting in with vision 20/20
Maori development opportunities are significant
• Hihiaua cultural center
o A centre piece in the development surrounded by both the Hatea and Waiarohia rivers
• Waka trips
o With the higher tide level hourly trips to and from the town basin can be organized to fit in with other tourism product
• Carving/building school
• Voyage canoe history
o Most powerful display of navigation skills and traditional voyaging techniques
Walking/cycle ways development
• Around water heart
• Increase use of city environment
• Opportunities for community walks/events
• Ultimate living environment
Café/waterfront development (several $Million TO p/a)
• Entertainment hub
• Variety in options/choices
• Arts/crafts precinct
• Various sculptures around water center
Hotel
• A bustling center is an attractive option
• 4-5 star hotel will stack up from an economical point of view ($7 million plus p/a)
• Conference facilities
• Supported by variety of work/play options
• Buzzing center , aquatic heart, pumping place to be
• Only 1.5 hrs away from Auckland
Traffic
• Easing of traffic in inner city
• Easier access to Whangarei Heads etc
• Parking opportunities on Pohe Island when big events take place at Okara Park Stadium
Events
• Rowing races
• World championship Waka Ama
• Small boat sailing
• Dragon boat racing
• On water musical event
• Boat shows
• Annual pirate parades
• The economic value of these kind of events is significant (several million p/a)
• The marketing of Whangarei District will be greatly enhanced by this!
Celebrating a city with vision
• Inspiring place to be
• Great place to work
• Great place to invest
• Place to be proud of and going in a positive direction
All these benefits can be derived if we can overcome the challenges that come with doing something a little different. The key to the above has to be the lock/bridge concept. It is the catalyst that will enable a whole raft of opportunities. Without this we will remain a city without a point of difference.
Add up all the potential benefits, add up all the “risks”… can we afford not to take the next step?
Next week WDC will consider the various options before them based on the recommendations made by WDC engineers.
It is important to understand that the report has been very conservative in its approach regarding
• Construction costs
• Ecological and water quality issues
• Flooding effects
• Consenting and timing
• Sedimentation
Also the report has not addressed the economic, social and environmental benefits of the weir.
Regarding the economic benefits these are significant in particular regarding waterfront development, tourism opportunities, yachting facilities and numerous aquatic events that will both profile the city, deliver sustainable economic returns and will be lost if we do not go for the weir option.
If the extra cost was to be close to $8 million than this has to be balanced with the long term economic opportunity and these costs could be spread over 20 years and other avenues for raising this money are available.
The Whangarei District Council has shown vision and leadership in the past. They have been long been effective in procuring funds from Central Government for local infrastructure and should be applauded for this. Once again they have the chance to make a real and meaningful difference to Whangarei’s urban fabric. This proposal will be of great benefit either directly or indirectly to all rate payers and members of the community.
Here is a real opportunity to grow the Town Basin and to influence and inspire busness vitality in the Northland Region
Tony Collins
15 May 2009
Stories and confessions from the Road.....
Between 20th April and 20th May the Northland Chamber of commerce hit the road with Enterprise Northland to deliver a short sharp thriving in a recession message. The message is all about managing six fundamental sides of your business. Our premise is that if managed well then your business will not only survive but thrive through and beyond adverse economic conditions.
The recession story that we are getting from Northland is a very mixed message. All Economic Indicators are in a state of decline including Employment, Interest Rates, Housing Prices, GDP, Consumer Spending and Commodity Prices; However – evidence from our travels shows that businesses can still thrive in these times and that the one attributable characteristic that we identify is ‘The Right Attitude’ within Business Leaders.
In General
- Retailers in the South of the Region are faring better than those in the Far North. Anecdotally due to the number of visitors from Auckland
- Contractors to the Agricultural & Primary industries are still finding it hard to keep up with Demand
- We have seen evidence of businesses doing exceptionally well as a result of changing the course of their businesses to fill gaps in the market created by ‘recessionary’ conditions.
- Regardless of Location those businesses that are Hands on and pro-actively managing the 6 sides of their business that are advocated in the Road show presentation are doing well
- All provincial areas provided great turnouts from local businesses. Dargaville turned out en-force with record breaking numbers
- Additional Seminars were held as businesses who attended organised other businesses to get to special seminars.
- We have heard some amazing stories of businesses that have suffered downturn that are slowly positioning themselves by buying and acquiring former competitors, locations and product lines.
- There is more major redevelopment work to be carried out in towns like KeriKeri.Major corporate still see these places as good areas to invest in.
- We held Six road show events in the Far North, Five in Whangarei District and Two in the Kaipara District
Information from our road trip along with our latest Business Confidence Survey indicates to us that in Northland – Businesses are generally getting on with business and are still singing the praises of being in business as outlined in our publication from one year ago ‘10best reasons for doing business in Northland’ (available from http://www.northchamber.co.nz/ )
Pro-active Business owners who implement the six steps outlined in the seminar will not only survive but thrive. If you don’t believe us come and see for yourself. The last Road show session is to be held at Forum North on Wednesday 20th May 2009 at 5.30pm. The Presenters Ken Wilson and Jeff smith will be challenging attendees to attack and work on the Six Steps with renewed vigour. If as Northlanders we harness our collective energies to assist each other, then when the inevitable upturn comes we will be sure to emerge in a much stronger competitive position and THRIVE.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
20 April 2009
Northland Chamber of Commerce…..Northland Economy no longer the land of Boom and Bust...good level of confidence
It has been really interesting talking to business and business people over the last few months about how well they are faring. There is a definite two sided story. Some businesses have definitely been affected in that the recession has affected their demand and they have felt the need to take measures to counter this. There are also a huge number of businesses that have been telling us a different story.
I have spoken to businesses lately in the primary industries that are still experiencing too much demand. Other small businesses are still trying to cope with workloads and time management as they work their way through backlogs. We also know that the Tourism Sector has had a very busy summer in fact some of our members are reporting turnover exceeding 2008 and 2007 figures.
It appears that the smaller businesses are able to adapt and change course more quickly and are doing a good job of keeping on top of the recession.
It has been really interesting talking to business and business people over the last few months about how well they are faring. There is a definite two sided story. Some businesses have definitely been affected in that the recession has affected their demand and they have felt the need to take measures to counter this. There are also a huge number of businesses that have been telling us a different story.
I have spoken to businesses lately in the primary industries that are still experiencing too much demand. Other small businesses are still trying to cope with workloads and time management as they work their way through backlogs. We also know that the Tourism Sector has had a very busy summer in fact some of our members are reporting turnover exceeding 2008 and 2007 figures.
It appears that the smaller businesses are able to adapt and change course more quickly and are doing a good job of keeping on top of the recession.
9 Interesting business confidence facts
- Fewer Businesses in Northland expect the General Deteriation to get worse over the next six months (53% compared to 58%)
- However, in terms of individual business prospects, 40% of Northland businesses consider their prospects will improve over the next six months compared with just 32% in Auckland, 34% in Rotorua, 39% in Tauranga and 32% in Hamilton.
- Business confidence hasn’t dropped further to what it was in the pre-Christmas period.
- Coupled with comments many respondents made about maintaining a wary attention to confirming sales, raising finance and getting paid, the survey findings suggest businesses generally have prepared themselves for a medium period of flat to no growth.
- At the same time, the mood among many businesses continues to be positive and reflect a strong self-belief that getting on with ‘doing the business’ continues to be rewarded with results.
- This is a good sign. On the one hand it is apparent that the strong impact the recession has had in other economies such as the United States and United Kingdom resulted in many businesses here putting up the shutters early.
- On the other hand, it is also apparent that many businesses now see that ‘sitting on hands’ is not an option, especially in Northland.
- Proportionately more Northland business than in other centres, including Auckland, are optimistic about their situation improving over the next months.
- The scope businesses see for further cuts in interest rates is also realistic and reflects a strong desire of business to grow.
In April and May the Chamber along with Enterprise Northland will be going on a road trip to 10 different districts in Northland to tell people how much assistance there is available for business especially small business.
The main message from these sessions is to let businesses know that there is help out there and here is no reason what so ever to be alone.
A couple of ways that businesses can help themselves improve performance, raise their marketing and turn around their businesses through the chamber are
1. Enter the Westpac Northland Business Excellence Awards – You get access to two lots of experts. Firstly a Business Coach (Who is in the Business of Business) will come out and review your operations and guide you in your awards journey. Once you have submitted your application a panel of experts in Judges will vist and also give you feedback. All this is free. The only requirement is your time. Can you afford not to enter the awards?
2. Any business serious about rapid improvement MUST enquire about our 90 day turnaround programme. This is an intensive 14 week, 10% learning and 90% Action orientated programme. The requirements to enter this programme are fourfold. You must be serious about moving your business up a level or turning your business around. 2. You must commit to attending the 14 weekly sessions / reviews and follow all actions agreed upon.3. You must be totally prepared to work with 12 other businesses that have the same drive as you.4. You must be prepared to invest financially in the programme. ($1900). If you are deadly serious about taking action to change
Call the Northland Chamber of Commerce now to enquire about these and other ways we can assist you prosper in business.
The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com
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