business plus · small business owners themselves or as shareholders in our bigger businesses....

Issue 80 - Apr i l 2011Publ icat ion of the Employers & Manufacturers Associat ion Inc

Business Plusn e w s , a d v i c e , l e a r n i n g a n d n e t w o r k i n g

■ Success in China, India, highlighted■ Cashflow crunch overcome with tax pooling■ Web conferencing eliminates distance■ Going green gets hotter

In this issue:

Vietnammission accomplished

ACC's Experience Rating - What you need to know

Workplace health action boosts productivity

How part-privatisation can and must be sold

The power to power your businessWe know it takes a lot of power to run a

business. And we’d like to help. When

you switch to Meridian Energy, we’ll give

every EMA member a special discount.

It’s a little celebration of the new

partnership between EMA and Meridian,

and our way of saying we know what it

takes to power a New Zealand business,

because we are one too.

Call our Business Team on 0800 496 777 for details on our EMA off er, or visit www.meridianenergy.co.nz/EMA to learn more about our special kind of power.

Our Vision. Your Success

Going green goes hot

Avoid penalties of consumer law changes

Health focus lifts work place productivity: survey

Spotlight on China, India

Vietnam: Mission accomplished

- Earthmaker Enterprises- BDO- Cabins To Go- Temperzone

Power savings redirected to patient careEMArket News - Bulk power buying

saves members $570k

04

05

06

18

19

20

23

02

08

13

Why Govt. must sell the benefits of SOE part privatisation Alasdair Thompson explains

How to benefit from experience rating

Catherine Beard spells out the gains from our FTAs

Making the most from ACC's experience rating

Leave goes on and on...Easter close down pitfalls

Manage your cashflow using tax pooling

09

10

12

14

15

22

Common myths around business continuity

Web conferencing - to take your business global

The good leader as good person - Review of 'Leaders and Misleaders'

The Bitexco Financial Tower in Ho Chi Minh city, a symbol for the rapid emergence of a new Vietnam. Export New Zealand chair Sir Ken Stevens led a trade mission there last month.For the full story see page 19

On the cover is published for:

The Employers and Manufacturers

Association (Northern) Inc

159 Khyber Pass Rd, Grafton,

Private Bag 92066 Auckland

Ph: 09 367 0909 or 0800 800 362

Email: [email protected]

Website: www.ema.co.nz

Chief Executive: Alasdair Thompson

Advocacy Manager: Bruce Goldsworthy

Manager, Employment: David Lowe

Manager EMA Learning: David Foley

Manager EMA Membership & Marketing:

Mauro Barsi

Whangarei

Louise Morrison

09 459 1501 mob 027 68 70 604

Waikato

Denis Quigan 07 823 9311 mob 027 203 0694

Russell Drake 07 853 0018 mob 021 686 621

Max McGowan 09 570 1289 mob 0272414608

Bay of Plenty

Kim Stretton 07 577 9665

Terry Arnold 07 575 8401 mob 021 662 656

Rotorua

Clive Thomson

07 345 8122 mob 027 437 2808

Business Plus

Business Plus

Business Plus

CONTENTS

Employment chat

EMA MEMbEr Proud MoMENTs NoTIcEboArd

2524

TECHNOLOGY

ADVICE

NEWS

ADVOCACY

20

The power to power your businessWe know it takes a lot of power to run a

business. And we’d like to help. When

you switch to Meridian Energy, we’ll give

every EMA member a special discount.

It’s a little celebration of the new

partnership between EMA and Meridian,

and our way of saying we know what it

takes to power a New Zealand business,

because we are one too.

Call our Business Team on 0800 496 777 for details on our EMA off er, or visit www.meridianenergy.co.nz/EMA to learn more about our special kind of power.

Editor

Gilbert Peterson

Ph: 09 367 0916

[email protected]

Writer

Mary MacKinven

[email protected]

Published by

TPL Publishing Services

Project Manager

Anthony Stead 09 529 3921

Advertising Sales

Colin Gestro (09) 444 9158

[email protected]

ISSN No. 1176-4953

REVIEW

19

business Plus Magazine - Exclusive news, advice, learning and networking

The mere word privatisation draws a negative response from many New Zealanders. Labour, Maori and the Green Party all oppose it and leverage support for themselves from their electorates on the basis that many see it as something bad.

Yet most industry and business is owned by individuals, either as small business owners themselves or as shareholders in our bigger businesses. Fonterra is owned co-operatively by about 11,000 dairy farmers and Foodstuffs likewise by hundreds of grocers. Private enterprise is a feature of all developed world economies.

But if private ownership is thought of as bad, do those who oppose private ownership of 49% of some of our SOEs also want the government to buy up businesses like Fletchers, Telecom, Fisher and Paykel, CHH, Mainfreight and others? I don’t think so.

So why must government own 100% of a coal mining company and several electricity companies, and 75% of an airline?

Some may say because if they were

49% owned by individuals they would increase their prices to pay a higher dividend, if they haven’t already. But if they are not charging a market price we are paying more in taxes than necessary if the government was getting the return it should be.

A debate like this about pricing is nonsense because, in the case of the Solid Energy, it sells coal into a competitive international market and

cannot set its own price. The electricity wholesale market is also a competitive market (though not perfectly so) and so too is electricity retailing. Price gouging is not possible in that environment and even if it were we have mechanisms and laws to control that.

Others oppose privatisation because

they don’t like the idea that some shares may be bought by foreigners. Again this is silly. Heaps of New Zealanders own shares in foreign companies, and mostly because of the lack of choice available in New Zealand. Part privatisation of the SOE’s would give New Zealanders greater choice and encourage greater investment here, not just from individuals but from the likes of the

“Cullen” fund, the ACC, and the raft of Kiwisaver providers.

No doubt there is a range of other reasons why many kiwis are fearful of part privatisation. So let’s consider another proposition. Let’s suppose the government sells a 49% stake in a number of SOEs and invests the proceeds in a new SOE wholly owned

by the government (representing the people).

This new SOE would be a New Zealand sovereign wealth fund. They might call it the NZ Investment & Development Fund (NZIDF). This NZIDF might also be empowered to sell bonds to the public and to other investment funds.

Govt must sell benefits of SOE part privatisationBusiness PlusADVOCACY

BIG/VER606/EM

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"Let’s suppose the government sells a 49% stake in a number of

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owned by the government"


By Alasdair Thompson, Chief Executive, EMA Northern

Govt must sell benefits of SOE part privatisationBusiness Plus ADVOCACY

BIG/VER606/EM

A1

A win, win, win, win, win, win situation for our customers. vero.co.nz/win

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By being able to borrow from the public in this way, the government owned NZIDF would have more money to invest in our country’s infrastructure and such a fund would provide a safe interest bearing investment opportunity that so many, mainly retired folk are looking for.

The purpose of this NZIDF would be to invest in New Zealand’s most productive infrastructure needs such as transport, reticulated services, education facilities, health institutions, prisons and the like.

Various organisations have proposed something like this over the past few years including the Capital Markets taskforce, the NZ Stock Exchange, BusinessNZ, the NZ Institute and University of Auckland’s Susan Watson and Chye-Ching Huang.

The government’s National Infrastructure Plan in March 2010 indicated that central and local government infrastructure investment is projected to cost $70 billion over the next 10 years.

Before the Christchurch earthquakes, The NZ Council for Infrastructure Development identified at least $25 billion is needed for infrastructure not included in the Plan. So there is no doubt there is a need for

massive infrastructure investment. The fund we propose, the NZIDF,

would make loans to government to finance public sector built infrastructure, and might also take part ownership stakes in public private partnerships or lend money to them.

The Crown would retain a 51% shareholding in the SOE companies and have 100% ownership of the new NZIDF company, not because it has to, but because that’s what most New Zealanders would be comfortable with. They prefer the Crown to retain control over the assets taxpayers have helped build up.

This idea would resonate with Kiwi’s because they know that our current account deficit is the second highest in the world as a percentage of GDP.

We also want our government to be less reliant on borrowing money from abroad, so the goal of this proposal is to leverage publicly owned assets to achieve higher economic performance

for the good of all New Zealanders. That being so, it will be perceived as equitable and politically saleable.

The NZIDF would allow government to build new transport systems, hospitals, schools and prisons through it 100% ownership of the sovereign fund and keep control of the SOE’s. This is better than just owning 100% of the SOE’s and having no sovereign fund. It also prevents a government from using the fund for other objectives or simply to fund its operating deficit.

The partly privatised SOEs would also benefit from the commercial discipline and scrutiny that comes from being publicly listed on the stock exchange and shareholder election of directors. Performance is bound to improve.

The NZX and New Zealand investors too would benefit from the broadening of capital markets giving them more and better choices to invest here instead of overseas.

Our thoughts are with everyone in the Canterbury region following the February 22 earthquake. We are committed to supporting our many members affected in various ways in this extremely difficult time, many based in the North Island.

To find out about the Earthquake Job Loss Cover to support employees whose employer believes their business is no longer viable, and other services, contact:■ The Recover Canterbury Call Centre, phone 0800 50 50 96. This business focused call centre is operational 8am-6pm Monday – Friday, and 8am-1pm on Saturday.■ It is operated by staff from EMA’s sister organisation the Canterbury

Employers' Chamber of Commerce (CECC), and from the Canterbury Development Corporation (CDC).

■ Visit www.cecc.org.nz/main/earthquake_info/ for more information or visit www.recovercanterbury.co.nz for the latest updates.

Canterbury earthquake update

Last month Business Plus ran an important feature " The burning trans Tasman tax issue." The article dealt with the lack of mutual recognition of each country's imputation credits by the tax authorities in the other country. But we wrongly attributed the article. The author of it was Mike Rudd, Tax Partner, of Ernst and Young. Business Plus apologises to Mr Rudd for the mistake.


Business PlusNEWS

Businesses in the Waikato region can’t fail to be impressed that local EMA solicitor Erin Burke has accepted an invitation to teach employment law part time at the University of Waikato.

On top of her consultancy work with EMA Legal based in Hamilton, Erin will lecture twice a week at the university’s law school. She holds an MSc as well as her LlB (Hons) law degree and joined the EMA Legal team in August last year. Previously Erin was an employment lawyer and mediator, and also worked at Tompkins Wake law firm in Hamilton after qualifying as a solicitor on returning home from Japan where she had a long career teaching English.

University picks EMA solicitor to teach employment law

The pressure is on to go ‘green’ in business because consumers are demanding it.

Even if you sell to other businesses rather than directly to consumers, your supply chain will increasingly demand proof or your environ-mental and social management: how are you managing discharges into air and water, how do you treat staff and reduce waste to keep prices down?

According to Colmar Brunton’s Better Business Better World annual monitor of consumer attitudes and behavior top issues for Kiwis are increasingly concerned with sustainability. In 2010 the survey found pollution of lakes and seas ranked number 5fivein severity after

violence, crime levels, increasing cost of living, and lack of access to affordable health care.

The protection and management of conservation land and water came in at number 10 after issues including the mistreatment of animals, the cost of education and the economic recession.

Three out of four New Zealanders believe previous generations have done a poor job of protecting the environment.

In recognition of these trends, EMA is offering the Eco Smart Business programme to help businesses: ■ create competitive advantage,■ show their supply chain care for

the environment,■ improve efficiency, and■ save money.

The first 50 businesses to sign

up for EMA’s programme receive a registration subsidy thanks to support from the Energy Efficiency and Conservation Authority (EECA) and Auckland Council.

Going green goes red hot

What: Launch of Eco Smart Business

programme of guided

workshops

When: Wednesday, May 4, 4.30pm-

5.30pm followed by drinks and

nibbles

Where: Council Chambers, 1st floor,

Auckland Town Hall, Queen

St, Auckland central (parking

underneath at Civic Car Park)

Charge: None.

Register to attend now: email

[email protected] or

phone 09- 367 0913.


Business Plus NEWS

Specialist Employment Lawyers

Auc

klan

d

PARVEZ AKBARSenior SolicitorMobile: 027 284 4042

PARVEZ AKBARSenior SolicitorMobile: 027 284 4042

JO DOUGLASSenior SolicitorMobile: 027 683 7919

JO DOUGLASSenior SolicitorMobile: 027 683 7919

BRANDON BROWNSolicitorMobile: 021 515 116

BRANDON BROWNSolicitorMobile: 021 515 116

Our high success rate reflects our expertise. Our lawyers specialise in employment law and only act for employers.As part of a member-owned organisation, EMA Legal offers services that are excellent value.

Strategic advice Practical solutions Skilled representation

Wellington Susan-Jane Davies, Blair Scotland • Nelson Maree Kirk • Napier Elizabeth Inger • Palmerston North Leile Sims

ERIN BURKESolicitorMobile: 027 459 3375

Palmerston North Leile Sims

ERIN BURKESolicitorMobile: 027 459 3375W

aika

to

0800 362 534 1800 300 362 for your nearest contact

Businesses that can’t substantiate every claim they may make about their products or services will face stiff penalties under proposed, updated consumer law expected to come into force this year.

The fishhooks in the changes can, and will impact most businesses. They will affect everyone whether you are a retailer, a manufacturer or service provider selling business-to-consumer or business-to-business.

EMA is presenting a series of briefings from April 12-14 on the proposed changes.

The two-hour briefings will highlight the changes, identify the fishhooks, and point out what issues may affect you if the new Consumer Law Reform Bill is implemented as proposed, and not amended.

Minister of Consumer Affairs John Boscawen hopes the changes will be in place by the end of the year following consideration by Parliament.

The Bill consolidates and updates the Fair Trading Act, the Consumer Guarantees Act, the Weights and Measures Act, the Layby Sales Act, the Unsolicited Goods and Services Act, the Door to Door Sales Act and the Auctioneers Act plus aspects of the Carriage of Goods Act and the

Sale of Goods Act.Abolished laws will include:

■ Door to Door Sales Act 1967, ■ Layby Sales Act 1971, ■ Unsolicited Goods and Services

Act 1975, and ■ Auctioneers Act 1928.

The briefing will be presented by Garth Wyllie, EMA’s in-house expert on consumer law. Garth has more than 20 years' experience in dealing with consumer law as an advocate for industry.

For more information and to register please email Julie Brough at [email protected] or phone 09-367 0913.

Plan for consumer law changes to avoid penaltiesConsumer Law Reform Briefing detailsCharge: $90.00 + gst

North ShoreTuesday, 12 April , 10am-12noonHarbour Function Centre, North Harbour Stadium, LG Life's Good Lounge, Stadium Drive, Albany, Auckland

West AucklandTuesday, 12 April, 2-4pmThe Trusts Function Centre, The Heron Lounge, 67 Central Park Drive, Henderson, Auckland

ManukauWednesday, 13 April, 2- 4pmGreyhound Function & Conference Centre, Manukau Sports Bowl, Greyhound Lounge, Te Irirangi Drive, Manukau City, Auckland

HamiltonThursday, 14 April, 10am-12noonKingsgate Hotel, Conference Room 1, 100 Garnett Avenue, Te Rapa, Hamilton

Tauranga Thursday, 14 April, 2-4pmThe Sebel Trinity Wharf, Pool House One, 51 Dive Crescent, Tauranga

Garth Wyllie


Health intervention/activities offered by surveyed employers. The high costs of ill health are driving a growing investment in employee health in New Zealand businesses, with a focus on prevention.

That’s from the findings in a survey of 402 upper North Island employers conducted by not-for-profit health insurer Southern Cross Health Society and EMA.

93% of all businesses responding offered some form of health intervention in the workplace. Nearly half had a formal health and wellness programme in place.

For 95% of firms the benefits are offered to all staff, not just management or certain sites.

Health and wellness-related activities range from flu vaccinations, workstation assessments and hearing checks to fresh fruit provision, skin checks and on-site massage.

One in five employers had also offered their staff information or support on responsible alcohol use and a third had offered help to quit smoking. One in four had offered weight management or nutrition information or support.

Surprisingly, more than half of those providing these types of health care had started it in the last three years, just as adverse economic conditions saw belt tightening in many business areas, says Southern Cross Health Society chief executive Peter Tynan.

“Employers realise that during recessionary times it is even more

important to ensure employees remained healthy, productive and loyal,” he said.

Productivity enhancedReducing absenteeism was a

key reason to implement health initiatives to the workplace for 60% of employers.

The programmes appear highly successful: a third of those with a formal health and wellness programme in place reported reduced staff absences due to illness

in the past year, with nearly half reporting a reduction in time off work due to injury.

“Reduced sick leave is just the tip of the iceberg in terms of cost savings from these types of programmes,” Mr Tynan said.

While quantifying the value of the business benefits of health interventions, the survey showed that New Zealand employers are motivated by altruistic reasons as well as to improve produc-tivity: 62% said they were ‘to encourage work-life balance’ as an important reason for having a health and wellness programme while 50% cited ‘social responsi-

bility’ and ‘aligned to our business philosophy’.

Mr Tynan said: “Employers understand that physical or mental health problems can’t just be parked at the door when we walk into work. The routine nature of work, the hours spent there and the peer support available make the workplace an excellent environment to make health and lifestyle improvements.”

The survey showed more than half of workplaces with a health and wellness programme also provided time off for their employees to participate in health-related activities.

Companies whose management supported the programmes and regularly scheduled activities recorded significantly lower absenteeism on a year earlier.

But survey respondents said only one in four of the senior management teams were fully committed to their programmes.

Economic times increase focus on workplace healthBusiness PlusNEWS

Massage winnerCongratulations to Ben Smaill who won the massage voucher in EMA’s Southern Cross Survey draw for his company’s staff at Criterion Furniture to enjoy! The voucher is for an on-site, two-hour massage from LiVevo, valued at up to $500. EMA thanks its members for taking part in the survey during December 2010. It was designed for Southern Cross Health Society to find out the impact of health and wellness programmes on workplace productivity.

Participation in the health and wellness programme is measured

5Southern Cross |

Six out of ten organisations measure staff participation in the health and wellness programme and half noted that participation has increased compared to a year ago

Whether participation in the health and wellness programme is measured(1)

Changes in participation levels of the health and wellness programme compared to last year(2)

60%

38%

2%

Yes

No

Don’t know

Notes: 1. Sample size n = 1932. Sample size n = 115

46%

38%

7%

9%

Increased

Stayed the same

Don’t know

Decreased

6Southern Cross |

83%74%

58%57%55%

50%47%46%46%

38%34%

28%27%27%

20%19%18%16%14%13%13%

18%

51%42%

17%12%

19%28%

24%26%

8%12%

5%10%11%

3%3%6%10%

3%5%

1%1%

6%0% 14%

Flu vaccinationsWorkstation assessments, cleaning

Smoking cessation info / supportGeneral health checks

Stress mgnt info / supportHearing checks

Pandemic planningTeam sports events

Nutrition / w eight mgnt info / supportVision checks

Exercise activities Responsible alcohol use info / support

Provide fresh fruitPhysical activity info / support

Disease mgnt infoOnsite massage

Bike parksAnnual medical check

Skin checksRew ards for w ellness participation

Assistance w ith personal w ellness planOther

No health interventions

Health and wellness programmes can generally be accessed by everyone, with flu vaccinations and workstation cleaning the two most common activities being offered, followed by smoking cessation support and general health checks

Access to the health and wellness programme(1) Activities that workplace offer(3)

2%2%1%1%1%

95%

Other

Head office only

All staff

Notes: 1. Sample size n = 1932. Sample size n = 2093. Multiple response question

All Management

Senior Management only

Selected sites

Have a formal programme(1)

Do not have a formal programme(2)Activities that workplaces offer

Have a formal programme

Do not have a formal programme


Economic times increase focus on workplace healthAnd only seven per cent reward staff

for their participation. Staff turnover had not changed from up to 10% in the previous year – and indeed only 31% of employers were using health and wellness programmes to attract and recruit top talent.

*Last year a report by Treasury estimated the effect of workers being on the job, but due to ill health, not fully productive, was costing the country up to $8 billion a year in lost productivity.

**The ‘Impact of Health and Wellness Programmes on Workplace Productivity Survey’ was carried out online by EMA for Southern Cross Healthcare during December 2010 across a range of company sizes and industries, many of them in manufacturing (33%).

Business Plus NEWS

Other activities offered

7Southern Cross |

Three out of five of the organisations who have a workplace health and wellness programme also offer other forms of employee support such as employee assistance programmes or health insurance

Other activities offered

61% 58%51%

31%

17%12%

25%

39%

8% 11%6%

2%

Offer a workplacesupport/Employee

AssistanceProgramme

Offer employee healthbenefits such ashealth insurance

Provide time toparticipate in health

and wellness activities

Make healthy foodoptions available inthe lunchroom or

cafeteria

Reimburse health/gymclub memberships

Reimburse otherwellness programmes

Have a workplace health and wellness programme Do not have a workplace health and wellness programme / under consideration

Notes: 1. Sample size n = 1932. Sample size n = 209

(1)

(2)

75% of health insurance offered is subsidised or partially subsidised

by employers

Sickness absence rate compared to previous 12 months

11Southern Cross |

Companies with a workplace health and wellness programme reported lower employee sickness absence rates compared to a year ago, as do those who regularly schedule health activities and whose senior management are committed to the programme

Sickness absence rate compared to previous 12 months

12% 6%18% 18%

9% 7%18%

8% 11%20%

61%57%

65% 63%

50%

71%

66%

51%

71%64%

27%37%

17% 19%

41%

22% 16%

41%

18% 16%

Total Yes No Underconsideration

RegularlyScheduled

ModeratelyScheduled

Ad hoc Committed ModeratelyCommitted

Paying lipservice

Decreased

Stayed the same

Increased

Sample size 299 140 121 38 109 45 125 119 82 76

Significantly higher than other comparative groupsSignificantly lower than other comparative groups

Have a Health andWellness Programme

Frequency of the Programme

Level of Commitment ofSenior Management


The Government has just introduced Experience Rating Regulations under the Accident Compensation Act 2001 allowing ACC to impose discounts or loadings on employers based on their workplace accident record.

This is not the first time employers had such a scheme. During the early to mid-1990’s, employers were judged on their accident record and received discounts for good records and loadings for poor accident records. The scheme introduced the notion of workplace rehabilitation. During this time rehabili-tation really got started as employers had a vested and financial interest in the return to work of their employees.

The National Government also introduced the private insurance market but this only lasted 12 months before the return of the Labour Government in 1999. Labour reversed the private insurance market and stopped experience rating. Employers were back to “all care but no responsibility” meaning that staff could stay away from work with no impact on employers’ levies. At the same time the scheme was opened up to a raft of other types of illness claims and the flood gates were opened.

Over the past decade EMA has vigorously submitted the ACC scheme needed to be changed. We sought a competitive treatment provider market, and a single point of levy setting with transparency and experience rating.

What have we gotSo what have we got? We now have

experience rating, but still no single point of levy setting, nor a competitive treatment provider market.

The scheme has two methods of delivery: one for small employers paying less than $10,000 in annual levy, and another regime for larger employers’ paying more than $10,000 in annual levies.

Small employers will get a 10% discount, or a loading onto their levy payable to ACC. The criteria to get a discount is no weekly compensation days in the previous three years. If you had between one and 70 compen-sation days then your discount is nil. Compensation days above 70 will get a 10% loading on the levy. This really means days ACC will pay so you, the employer, have already paid out for first week.

Larger employers can achieve a 50% discount, or loading onto their levy. The criteria are: the number of weekly compensation days and claims over $500.00 are added. This data is

then compared to other industries within their levy group, a form of peer comparison using three sets of calculation to decide the final amount. The problem is that employers have no ability to access these calculations and thus they can’t take responsibility for them or use the data to help manage the rehabilitation process. The data is all held within ACC. Again the data is retrospective, and subject to review.

The scheme sounds good but the devil’s in the detail. It is estimated that over half of employers will not be eligible to participate in the experience rating scheme as they are too small. Roughly 5-6000 employers make up the large employer segment. The majority by far are the small employers who attract a 10 % loading or discount.

Embedded within the ACC calculations is a factor to ensure that those getting a discount are funded by those receiving a loading.

ACC can, with some confidence, expect most employers to have weekly compensation claims and thus put themselves outside the 10% discount group or ‘no levy change’ group.

Employers in the large employer group have no way of controlling medical costs which are driven by a set of random variables, including low pain thresholds, MRI scans, inter personal conflict in the work place, poor case management, cautious medical interventions, family pressures and unhealthy expectations over what is normal health.

Is the scheme worth it? By itself small employers have

little to gain or lose. The threat of a loading on their levy, while it is extra money, will not dramatically change their behaviour. They probably have that much or more out on unpaid creditors etc.

Larger employers have the potential to make big gains, though the regulations make it impossible for them to forecast their actual discount, which is unfortunate. Employers lose

that extra bit of control or ownership. The large employer group can also

use the Workplace Safety Management Practices audit scheme in addition to the experience rating provisions and with both discounts it is technically possible for an employer to make a 70% reduction off their levy. But I feel the chances of this are extremely rare.

Because experience rating loadings or discounts will be decisions by ACC they are reviewable and in the first year I expect the number of these reviews will increase. Since the data ACC has on file on employers’ workplaces can often be incorrect, it is important for employers to check the experience rating data sent to them by ACC, and if it is wrong get it changed!

It is up to employers to reap the benefits of this scheme. Accident prevention does pay, and it will continue to pay you more so long as accidents cost you more.

How to benefit from ACC’s return to Experience Rating

By Paul Jarvie, EMA’s OH&S ManagerBusiness PlusADVOCACY

"We sought a competitive treatment provider market, and a single point of levy setting with transparency

and experience rating."


ACC’s experience rating came in from April 1 for employers and self-employed people, and we welcome it as an initiative that will encourage safer workplaces and make levies fairer.

Experience rating means a business’s ACC claims history is factored in when we work out its levy payment. It’s very similar to the no-claims discount you get from your insurance company. ACC will now be able to adjust the work levy depending on the number of claims happening in a workplace, and where there are ACC claims, how you help injured employees return to work as quickly and safely as possible.

Currently, the levy is mainly based on injury costs within an industry. This means businesses have been paying the same levy as others in the same industry, even though their safety record may be better.

We see first-hand every day the impact for NZ businesses of injured employees. Under experience rating we’ll be able to reward those businesses who work hard to keep their workplaces safe, and help those with poorer records to improve.

Importantly, ACC is well placed to help businesses improve workplace safety and support injured employees return to work safely and as quickly as possible.

Right now, you can make a difference to your future levies, so it’s important to have that in mind as we introduce experience rating.

Broadly speaking, experience rating is a system which:

■ provides for discounts on levies for employers with a better claims history, and loadings for those whose workplace safety and claims record is not so good.

■ The amount of levy discount or loading depends on the size of the business, how many claims employees have made and the industry the employer is in.

For larger businesses paying ACC levies of $10,000 or more, the calculation will take into account the number of claims made by employees for work-related injuries over the three-year experience period (for the 2011/12 levy year this is from April 1, 2007 to March 31, 2010), as well as the length of time employees receive weekly compensation. That information will be compared with other employers in similar industries, with similar injury risk.

If an employer’s performance is better, i.e. if there are fewer employees receiving weekly compensation, then the levy may be lower. If the performance is not as good, the levy may be higher. Levies can increase or decrease by up to 50%.

Experience rating takes into account workplace claims resulting in moderate to serious injury, which are those with associated medical costs of $500 or more, and fatal accidents.■ Smaller businesses with levies of less than $10,000

may receive a ‘no claims’ discount of 10% provided they have had no weekly compensation, or fatal injury claims over the three-year experience period.

■ Those who have had between one and 70 weekly compensation days paid will see no change to their levy, while those with more than 70 weekly compen-sation days paid, or any fatal claims, will receive a 10% loading.In addition to introducing experience rating, ACC

is also increasing the number of levy risk groups and making changes to some classifications. Levy risk groups are the groups against which businesses and self-employed people are classified for levy purposes.

For some businesses, this may result in an increase or decrease in their base levy rate against which experience rating can be applied. To find out more, look at the ACC website www.acc.co.nz/er

Experience rating puts ACC levies in employers’ hands

By Dr Keith McLea, ACC General Manager Insurance & Prevention Services Business Plus ADVICE


PAYROLL P

AYROLL

More New Zealand businesses use Ace Payroll than any other computerised

wages program.

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Q. One of our employees went overseas to look after family following a recent bereavement. Now, five weeks later, she still can’t give a definite return date and has asked for at least another five weeks off. We are full of sympathy but we can’t go on any longer with the position empty and it’s not the sort of role you can get a temp for. What do we do? - Kelly

Dear KellyThis is a delicate matter and

it’s commendable you have allowed your employee five weeks leave.

You should consider her request in good faith and if you are unable to accommodate the extra leave it is important you communicate your position and expectations clearly to the employee. Up til now you have agreed to the leave, but beyond a certain point which you should discuss with her, any absence will be unauthorised. Therefore, she fails to return as expected, or advises she will not be returning until a date beyond the authorised leave period, disciplinary action may be considered an appropriate response on her return. The employee should

be made aware of the potential consequences.

Procedural fairness demands open communication so an employee can understand the full impact on your situation, and understand your inquiries about her expected return to work. Through this process you as employer must disclose your intentions in respect of her continued absence.

If she advises you she is not returning to work at all then she needs to communicate those details to you in terms of her employment agreement relating to termination of employment. You should be satisfied she makes any decision to resign freely and without unfair pressure from you.

If you need more help, please call

AdviceLine (free advice to EMA/ECCC/ExportNZ members).

Q. My employee Joe has been contracted to work on the site of a client (another employer) who now tells me he doesn’t want Joe on his site anymore because he’s a bully and causes disharmony. I wasn’t surprised to hear that. What do I do about Joe and replacing him? - Don

Dear DonThere are two issues for

consideration, the first being your client no longer wants Joe on his site, so unless you can persuade them to change their mind this may have an impact on his employment with you. Second, as Joe is your employee you need to investigate any allegations regarding his behaviour.

Bullying is a term commonly used but can be hard to define. However, any behaviour that you consider unacceptable can be challenged and as an employer you have a duty to investigate allegations. Certain bullying behaviour can often come under the term ‘harassment’, which has a clearer definition in employment

Employment chatWhat employers are ask ing AdviceLine th is month

Leave goes on and on…my client doesn’t want my employee on their site...Easter closedown: pitfalls

"You should be satisfied

any decision to resign

is made freely without

unfair pressure"


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Leave goes on and on…my client doesn’t want my employee on their site...Easter closedown: pitfallslaw, including sexual or racial harassment.

So, if you receive complaints about Joe’s behaviour either at your own workplace or offsite, you need to investigate and follow a fair procedure when dealing with the issue. You should refer to our A-Z Guide called Harassment.

But on the matter of Joe being sent off another site, it’s probably best to keep him away from that site, certainly while you investigate the circumstances. Ask the other employer for details about the problem, ensuring you have robust information before you confront Joe about his alleged bullying there.

Joe might have a different story to tell, and you need to weigh up all the evidence before you take action against him.

Regardless of the outcome of your investigation your client may still not want Joe back on their site so you need to consider what options are available for Joe bearing in mind he is still your employee. You need to check the terms of his employment agreement. Feel free to talk to AdviceLine or you may wish to engage one of our consultants or solicitors to help.

Q. With Easter coming late this month I thought it would be a good time to ask people to take holidays so I can close down for a week or so, as it is a quiet time in my business. Some employees take extra time off around Easter anyway, making it difficult to operate. How do I go about this? – Ben

Dear BenYou have probably left your run a

bit late for Easter this year to require people to take annual holidays, unless you can reach agreement with them.

The Holidays Act has a provision for a customary closedown once a year where special rules apply around requiring employees to take leave. Closedowns are very common over the Christmas and New Year period. While it is possible to have customary closedown at other times you can only have one in a 12-month period.

To impose a customary closedown you need to give staff no less than 14 days’ notice (preferably more) of the closedown and the requirement to take leave.

You can, however, require people to take holidays at a time that suits your business as long as they have a leave entitlement available. You will firstly have to try to reach agreement with staff so you will need to discuss your plans with a view to reaching an agreement. If you are unable to reach agreement or come to some other arrangement you can require them to take holidays but you must give no less than 14 days’ notice.

Where an employee does not have an entitlement to holidays any leave in advance would need to be by agreement as, unlike a

customary closedown, you cannot require employees to take leave.

Only Good Friday and Easter Monday are public holidays (not Easter Sunday). For the confusion about ANZAC Day also falling on Easter Monday this year, see the last issue of Business Plus (February issue, page 9). By the EMA Advocacy team in consul-tation with EMA Advice, and based on real calls to EMA’s AdviceLine. The information in this article is a guide only

and not to be used as business advice without further consultation. Start with our AdviceLine team at phone 0800 800 362 within New Zealand or 09-367 0909 and 1800 300 362 (from Australia) 8am-8pm weekdays. Alternatively, email [email protected], and read or download information such as the A-Z of Employing – a manager’s guide on more than 100 specific topics, at

www.ema.co.nz/advice

"While it is possible to have customary closedown at

other times you can only have one in

a 12-month period."


When it comes to paying bills tax can loom large. Companies can feel considerable pressure to pay their provisional tax at the expense of salaries and/or debtors who themselves may be in tight circum-stances. The ripple through can mean often it’s the last man standing who falls.

Also, if you are setting budgets for the year and evaluating how to manage cash month to month, or have a cash crunch with 7 May provisional tax approaching, tax finance could be the answer.

There are some forms of tax that you must pay on time or the penalties will create immediate problems; namely GST, PAYE, RWT. With

provisional tax however, IRD has built in more flexibility.

Provisional tax is a percentage of estimated earnings based upon figures yet to be finalised. To make sure you make these provisional payments on time the IRD charges interest at 8.89% on any underpaid amounts, and may also charge late payment penalties at 5% for the first month and 1% per month thereafter. Generally this means companies pay their provisional tax on time.

But now there is another alternative that IRD has facilitated. Tax financing through tax pooling intermediaries is IRD approved. It allows companies to defer their provisional tax payments until their terminal tax date with interest rates less than IRD charge, and no late payment penalties. So it allows

companies to defer provisional tax to match cash flow, and in this way is a valuable cash flow management tool.

If there isn’t enough cash to go around it is good to have options. For instance, when setting budgets for the year, cash flow often becomes a factor and knowing tax finance is available can make a significant difference; you can reduce the difficulty of the cash management process by deferring your provisional tax using it. Because there are no administration or commitment fees there are no sunk costs, acceptance is guaranteed, it can be put in place quickly, and the term of the facility can be matched to your circumstances (up to the terminal tax date). Call Tax Management to learn more, on 0800 829 888 or visit www.tmnz.co.nz

“If I pay both my GST and provisional tax I can’t make the wages this month.”

Business PlusADVICE


By Catherine Beard, Executive Director, Export New Zealand

There are some who oppose New Zealand’s pursuit of free trade agreements and its participation in the WTO Doha Development Agenda negotiations. They get a lot of airtime listing the perceived ills of free trade, and never balance this against the positives.

For this reason, we at Export New Zealand think it important to remind New Zealand why both the National and Labour parties are both spot-on in pursuing free trade opportunities when they present themselves.

At the end of September 2008, the day before the China–New Zealand FTA came into force, China was New Zealand’s fourth largest export market. Exports over the previous 12 months stood at NZ$2.237 billion.

Two years later, China had overtaken the US to become our second largest market, with exports of NZ$4.318 billion.

This trade continues to grow.

In the 12 months ending January 2011, New Zealand exports to China were up 32.9% to NZ$4.919 billion. So, in total, since the China FTA came into force just over two years ago, New Zealand exports to China have more than doubled – they grew 119.89%.

The FTA was not the only reason why this has happened, but is was a major contributing factor.

Dire predictions from the anti-free trade brigade have been around since we contemplated free trade with Australia in the early to mid-1980’s, and after CER came into force.

Then, as now, the doomsayers were predicting the end of the New Zealand economy. How can New Zealand open itself to such a large economy? Surely we must come off second best? But the reverse was true.

Many of the original opponents of CER from the manufacturing sector soon became the agreement’s greatest supporters. Australia became their major market. We even had Australian officialdom in a lather because they perceived New Zealand to be doing much better from CER than Australia.

With such a small population, New Zealand needs to export its goods and services to prosper.

If we are going to grow our incomes, we need to grow our exports.

Historically that hasn’t been easy. While we once enjoyed pretty much open access to the UK market for our

agricultural products, that changed dramatically when the UK joined the European Community. By this time, the rest of the world had erected huge barriers in the way of agricultural exports.

It has been the free trade agenda that has slowly clawed some access back for New Zealand.

First it was CER with Australia. Then the Uruguay Round of Gatt negotiations moved agriculture into line with standard trade rules, and introduced some discipline on subsidies.

The positive impact on the New Zealand economy is estimated to be in the billions of dollars.

More recently we have seen the FTAs with Singapore, Thailand, the Transpacific Strategic Economic Partnership, China, Malaysia,

Hong Kong, and most recently all of ASEAN. Negotiations are underway with India, Korea, the Gulf cooperation Council and the nine-party Trans Pacific Partnership – including the United States. Japan and Canada are proposing to join this negotiation at the end of the year.

Of New Zealand’s top 20 markets, New Zealand has FTAs negotiated with eight, and negotiations underway with a further four.

Some people dismiss the growth in trade with our FTA partners as simply being a reflection of high dairy commodity prices. This is wrong, as can be seen in a recent

report for the Horticulture industry on trade barriers.

“The value of New Zealand’s horticultural exports to China has more than tripled in the past two years. Kiwifruit exports have been largely responsible for this increase – these were worth $20 million in 2008 but reached $75 million in 2010 – and the free trade agreement between New Zealand and China appears to have played a role in this

increase. This free trade agreement has already reduced kiwifruit tariffs from 20% to 13.3%, and this will drop to 8.9% by 2012.

The recently signed free trade agreement with ASEAN countries also appears to be having an effect on New Zealand’s trade volumes, with exports to Malaysia, Singapore, Thailand, Indonesia, and Vietnam all showing significant growth since the last edition of this report was published in 2008.”

It is facts like these that make Export New Zealand so supportive of the National and Labour parties’ trade policy agendas.

The current and previous Governments have both done well in this space. They deserve continuing support for delivering this long-term dividend for all New Zealanders.

Free trade is delivering economic benefits

“The value of New Zealand’s horticultural exports to China has

more than tripled in the past two years."


Business PlusTECHNOLOGY

Like many people lately I have been thinking about what I would do at home or in the office if the ground started shaking.

For many of us, we no longer have to dash for the door with boxes of personal photos or stacks of company files. Technology has meant much of this is stored electronically and can be rescued from a laptop or storage device.

Everyone knows the importance of doing backups but are your backups in the same building, and how quickly can they be restored? If the building was under a pile of rubble, how long can you survive on a government compensation scheme before your savings dry up?

Business continuity is much more than having a backup. It is better defined as; the extent to which your business can continue to trade in the event of a major disruption. Information, client data, work files are the real value of the business, and if that is lost, corrupted or inaccessible the business may cease to exist

Technology has made it cheaper and simpler than ever to protect your data and keep your business running, with a host of simple and low cost options.

Time can turn a crisis into a disaster – the more prepared you are, the less likely you will end up in a disaster scenario.

A recent Symantec SMB survey found that, when asked about their company’s state of readiness to deal with an outage or disruption, only half (48%) responded that they already have a plan in place. 12% do not have a plan, nor do they have any intention to create one.

Reducing Risk1.��What’s�your�ability�to�prevent�

a�crisis�turning�into�a�disaster?■ Deploy UPS and alternative

power sources to cope with minor outages

■ Utilise laptops instead of desktops to reduce risk of break-in theft, and make sure people take them home

■ Consider utilising Cloud providers for Accounting\Payroll\CRM, and ensure their systems are resilient.

2.��When�a�crisis�occurs,�what’s�your�ability�to�recover?

■ Ensure your backup mechanism is robust, with (at least) a daily copy of your data sent offsite promptly. Ensure the location of your backups is secure, and readily accessible 24 x 7.

■ Don’t take backups home – they get lost, stolen, and are often not readily accessible.

■ Don’t leave your backups in a safe

onsite – burglars will steal servers and your safe.

■ Test and prove recovery from your backups on a regular, scheduled basis.

3.��How�long�this�can�be�sustained?■ Ensure your business has

somewhere to go in the event the building is disabled, and look at standby infrastructure to recover onto.

■ For many organisations working from home often doesn’t work especially for extended periods– if it did, there would be no office buildings.

■ Ensure you have access to third party recovery expertise in the event of a crisis – don’t depend on

internal staff – they go on holiday, get sick, leave.

■ Don’t forget your phone system. Have a plan in place to redirect incoming calls and way to communicate with customers.

Five Common Myths of Business Continuity1.��My�files�are�backed�up,�that�

should�be�enoughThis is a first step but you need to consider how you will restore them and in what order. And what happens when the office is inaccessible.

2.��My�mate�owns�a�computer�business�and�he�said�he�could�sort�me�out

Unless it’s tested and proven regularly, the recovery timeframe – even if standby hardware is available, will be days if not weeks.

3.��I�can�work�from�homeIf it was so easy to work from home, there would be no big, highly expensive office buildings. A crisis scenario is the time when people need to congregate the most.

4.��I’ll�use�my�old�hardwareYou have already declared it not fit to run your business, otherwise you wouldn’t have retired it. It only gets less useful as the weeks go by - old hardware is not a robust solution.

Being prepared does not cost a lot, and will save your business if you face a crisis. Shift your thinking from disaster recovery to disaster prevention.

It is always a good idea to get an outsider’s perspective to help design a plan or offer more suggestions and the team at Maclean and Plan-B can help.

Planning for a disaster is the only way to mitigate the risk of business failure from one. So, find a quiet place and start planning.

For further information : www.maclean.

co.nz 0508 622 532

Common myths around business continuity

By Andrew Charlesworth


Over recent months EMA has engaged with it’s geographically spread membership to give news and information updates in real time using webinar or web conferencing.

Speakers and attendees from around the region and overseas were able to meet up in an interactive way that eliminated downtime and costs associated with travel.

While EMA values the importance of its face to face meetings and presen-tations, this alternative forum received extremely positive feedback from all involved as a resounding success.

The ability to conduct effective, virtual meetings using web confer-encing has grown from a technical novelty to a mature, widely deployed technology in less than a decade. It has become scalable and reliable, and combined with increased speed and growth of internet access, users can now connect to virtually anyone.

So what is the potential of Web Conferencing and how has its role changed? What are its ‘values’ and can they be quantified? To find out, Wainhouse Research conducted a series of in-depth interviews with individual web conferencing users.

In particular, the interviews demonstrated the following “hard dollar” returns:■ Reduction in travel costs■ Helped to meet or improve schedule

deadlines■ Shortened duration of meetings by

keeping all participants “on the same page”Perhaps as compelling were “soft

dollar” returns that, while they could not be easily quantified, indicate web conferencing is achieving a new level of value:■ Improving on quality and accuracy

of information transfer by using visuals (Studies by educational

researchers suggest that about 83% of human learning occurs visually.)

■ Driving interactivity among meeting participants

■ Reducing the need to email documents and avoid file version confusion

■ Making it easier to get experts and management involved

■ Increasing team member satisfaction Web conferencing has other

uses outside of business and team meetings, including product and system demonstrations, and training and coaching.

Some enterprising organisations have used the polling, survey and recording functionality built into web conferencing platforms to run Annual General Meetings. The savings in travel, accommodation and catering costs alone were a major incentive even before staff and stakeholder downtime were taken into consideration.

Web conferencing – take your business global

By Craig Garner

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Business Plus TECHNOLOGY

IntroducIng FarmsIdeFarmside is New Zealand’s leading rural telecommunications provider, giving rural and provincial Kiwis access to telecommunications services. These include rural broadband via satellite, wireless and ADSL technologies, home phone line packages, webline (Voice over IP), mobile solutions and associated computer and networking equipment. Farmside is New Zealand’s primary IPSTAR satellite service provider, with nearly ten years experience in rural telecommunications. The company head office is in Timaru. In addition, Farmside has staff and contractors throughout the country, including an office of ten people in Christchurch.

Why they chose Plan-bFarmside Chief Operations Officer, Ron Goodfellow has always been a firm believer in business continuity planning. “We have revenue to protect. I just consider it as if you’re buying insurance.”

He chose Plan-b because he had worked with them before and was happy with the service he got.

Site loss has been part of the thinking from the outset. However, when crisis struck, it wasn’t quite as expected. “The scenario we’ve had in mind was always that our Timaru head office may be inaccessible,” says Ron. “Never in my wildest dreams did I think we’d use Plan-b for our Christchurch office.”

dIsaster strIkes!On 4 September 2010, a major earthquake struck Christchurch, making Farmside’s local office unusable. First the building was declared off limits. After a few days, limited entry was allowed to retrieve essentials. However, due to the possible collapse of a nearby building, the office was declared out of bounds again later in the same week. This was to last for an indefinite period, leaving ten Farmside staff with no office facilities.

attemPted solutIon: WorkIng From homeFarmside Logistics Manager Graham Henshaw says at first they decided to simply work from home. “We’re a transient bunch, used to working out of the office. Everybody has a mobile and a laptop, so we decided to work from home and meet occasionally in coffee shops as needed.”

However, they found that working from home was disruptive and difficult.

“We’re a tight-knit group. Working from home, the interaction between people wasn’t happening. Phoning is not as easy as poking your head over the cubicle. We need to feed off each other’s creativity to keep business flowing. Also, we’ve been through a stressful event, so wanted to keep people together and provide support to each other.”

It didn’t help that everyone’s spouses and children were around either. “It’s good for families to stay together, but for business it was difficult with all the distractions.”

the solutIon: go to Plan-bWith customers having to run their own businesses, Farmside had to be able to provide the expected services. “Two weeks after the quake I rang Plan-b and said we wanted to move in. They said, no worries, turn up tomorrow.”

Because of the way the Farmside office in Christchurch works, they didn’t need a server recovered or one available on site. They just wanted office space and Internet connectivity as well as a professional place for meetings.

Initially, Farmside took half a dozen seats only, as not everyone was expected to be in the office at the same time. “Later we took more space, as it worked better for us. When there was vacant space, Plan-b let us use it. They were very flexible around that.”

Farmside operated from the Plan-b OfficeNOW facilities in Christchurch for three weeks, until 5 November.

busIness ImPact“If we hadn’t had the facility to go to Plan-b, we would’ve had to find another office, get furnishing and connectivity sorted and also the many small things that turn an empty building into a working environment.”

By going to Plan-b’s ready facilities, Farmside avoided having to deal with these practicalities on top of an already difficult situation.

“When you’re in a state of trauma, the little things matter – the ability to make coffee, all those things,” says Graham.

“We were impacted, but it was manageable. None of our customers even realised we were not in our regular office.”

lessons learnedAs the person in charge of business continuity planning for Farmside, COO, Ron Goodfellow says the experience around the earthquake reaffirmed that their approach was correct.

“What we need to do now is an exercise dry run from head office to make sure that everything does work,” says Ron.

5917

1269918

800+

After the September 2010 Christchurch earthquake, Farmside’s local staff tried

working from home, but that didn’t work out as expected. Activating their Plan-b

OfficeNOW facilities provided them with everything they needed to keep

business running smoothly.

“We were given codes to get into the building, shown to our space and away we went. We made ourselves at home.”

– Graham Henshaw – Logistics Manager, Farmside

“We were impacted, but it was manageable. None of our

customers even realised we were not in our regular office.”

– Graham Henshaw Logistics Manager, Farmside

Plan-b case study: FarmsIde

“If our office becomes unusable, we still have to be able to run our

business, to be able to provide service to our customers, so they can keep doing what they do. That way,

we’ll still have a business when the crisis is over!”

– Ron Goodfellow, COO, Farmside

OfficeNOW provides you with access to standby office facilities, including:

• Dedicated office space

• Desktop computers

• Phones (with DDI numbers & headsets)

• Printer & fax

• Network & server infrastructure

• Assistance with transferring your back-up

OfficeNOW facilities are ready for immediate use in Auckland, Hamilton,Wellington & Christchurch.

PB-11-Case Study-Farmside.indd 1 30/03/11 1:34 PM


Manufactured goods are easily tracked as they cross country borders but services - ‘weightless’ - exports are less tangible. Compared to commodities/products they can also be harder to export to markets with different languages and cultures.

Now Victoria University staff have studied and evaluated what’s happening in the export services sector in our major growing markets in China and India. The aim is to help build a sustainable competitive advantage for New Zealand service firms there, because our services firms have a high potential to create lasting value.

Their report - Service Success in Asia - highlights some facts offering NZ firms great potential: in China the middle class is growing from 2% to 70% of the population over 20 years; 200 of the top 700 cities in the world will be in China, requiring 97 new airports and 30,000km of new railways over the next 10 years.

Research respondents in the study said face to face interaction was partic-ularly important for services because they usually involved the transfer of complex knowledge that can only be conveyed in person.

For China, the challenge is significant. The researchers recommended New Zealand support firms already in the market ensure they achieve a greater

take-up of the Free Trade Agreement advantages available to them, and encourage firms to pursue opportunities in the tier 1 and 2 provinces as China defines them.

As one New Zealand respondent said: “…I just believe the pace in China is such that we are not reacting quickly enough and we’ve got an amazing advantage right now, a competitive advantage, not just in business but politically.”

On the upside there’s a perception in China that foreign made is better, and New Zealand can be amongst the lowest cost foreign suppliers of services.

India represents substantial opportu-nities though it’s seen to be signifi-cantly behind China at present, yet an easier country in which to do business. Researchers recommend a sector-based approach to building capability there amongst New Zealand firms.

Also, New Zealanders are typically not demanding, though in China being demanding indicates that you are serious. We need to be more demanding.

In both China and India its all about relationships – people should be invited into discussions even when they are not directly involved in an issue. China doesn’t understand so well our culture where we sell peoples’ time – they buy a service or product that’s fit for purpose.

On India a New Zealand respondents said: “I don’t think we’ve

got our hands around the scope of what’s happening in India and I’m sure not a lot of New Zealand manager have. I think there’s a general feeling that, hey, something is happening out there but do we really know what that is?”

India is hugely competitive, but New Zealand’s advantage is our international reputation. Credibility is critical.

There are lots of potholes to navigate but once you make it onto the expressway its all good.

In broad terms China wants companies here to fill gaps in their supply chain whereas India wants innovative firms here to partner with.

For both country markets, researchers’ recommendations included:■ Firm and managerial capability need

building and a multi-level approach is needed, involving Government (eg, visits to China more often to promote New Zealand’s commercial visibility), government agencies, industry, and individual managers.

■ Firms need to commit sufficient resources to sustaining their physical presence on the ground in the market by some arrangement, eg through a joint venture or wholly-owned subsidiary.

■ Businesses need to develop collaborative or partnership based approaches with businesses in those markets.

■ Government needs to work with firms to select sectors and industries to prioritise for help; and to develop strategies to boost market opportu-nities for these sectors.The researchers define services

in broader terms than many people think, to include: tourism, education, engineering consultancy, profes-sional services such as law, information technology, design and consultancy, marketing, R&D and design.

Researchers interviewed 70 New Zealand managers about their experiences of doing business in these markets along with many of their foreign customers and others in those markets connected to New Zealand firms over the course of two years. For a copy of the report email to [email protected]

BNZ Partners Bay of Plenty Export New Zealand Awards 2011 this year are on theme! “Catching the Orient Express".

Bay of Plenty members are welcome to enter.

Entries close: 9am, Monday, May 2

Awards evening: Friday, June 24 at Baypark Stadium, Mt Maunganui

Ticket bookings for climb on board the gala evening are available by contactingt

Tracy Donovan at ExportNZ BOP office at [email protected]

Spotlight on success in China and IndiaBy Mary MacKinven


Export New Zealand and the Combined NZ ASEAN Business Council’s Trade Mission to Vietnam early March was an unqualified success, according to all its 14 delegates.

But whereas Vietnam in general presents many large and sometimes daunting business opportunities, it was Danang in particular that captured my attention as a place where New Zealand businesses might prospect for early, big gains.

Danang, half way between Hanoi and Ho Chi Minh city, has just under a million people but with growth well over 12% in GDP terms, or twice the

nation’s average. And that’s how its been for over a decade. The locals now enjoy income per capita a third higher than for the country as a whole.

Danang is relatively congenial. It does not suffer from the population pressure cooker atmosphere of the two big cities; it’s home to An Hoi, an attractive shopping precinct, and to an endless string of major resort developments along its tourist mecca coastline. Hence the growth, driven by construction, and as well, to feed rapidly growing tourist numbers, fine foods and wine.

The local government agency people seem keen to assist. They want us to appreciate the effort going into developing their series of industrial parks near the city: for such as seafood processing; IT and hi tech, bio –tech,

energy and environment protection. Food security is a top issue. They

are buyers of systems and procedures, and the associated training to build the capability that will enhance the reliability of their food supplies.

Indeed Vietnam is a potential buyer of education at all levels and for all types of business requirements, but delivered locally rather than to students coming here. More of our universities and technical institutes would assuredly be most welcome!

Vietnam yes, Danang much more soBy Gilbert Peterson

From Trade Mission leader Sir Ken Stevens“The Trade Mission to Vietnam certainly awakened my interest in Viet Nam as the prospects we unearthed exceeded our expectations.“I found the Vietnam team at NZTE to be just the best I have worked with in NZTE’s network. Graham Sims proved to be a very competent and technically savvy Trade Commissioner. Travelling in a group with the support of NZ Government meant the delegates got a lot for their money. “Additionally, we enjoyed meeting NZTE’s ASEAN Beachheads board. Their calibre is awesome and it does the heart proud to learn about their input in accelerating NZ exporters into complex markets. “The fund raiser for the Christchurch earthquake fund in Ho Chi Minh was a blast with over 300 people attending and raising US$96,000 (at last count). I must congratulate our Australian bros as they turned out in numbers in support. “I personally enjoyed leading the mission and would encourage exporters wishing to expand their markets to join a trade mission as the benefits are many.”

Mission accomplished“If you came here on your own, you would not get this,” said Sir Ken Stevens, leader of the Export NZ/ASEAN Business Council trade mission.The mission was the first from New Zealand to an ASEAN country after the signing of the AANZFTA agreement.The packed programme included briefings, meetings with officials, site visits, and pre-arranged business matching meetings including four site visits - a port, a shipbuilding yard, a ceramics factory and a brewery – and extensive business matching arranged through the mission’s own contacts and also New Zealand Trade and Enterprise.

Results so far recorded are:■ an invitation to participate in a

$US1bn development project in Danang,

■ talks underway re opening a representative office in Vietnam on behalf of a possible NZ construction sector.

■ 10 tonnes of cherries, plus apples, meat and other produce.

NZ Consul General and Trade Commissioner in Ho Chi Minh, Graham Sims told delegates: “If you come to VN as individual businesses now we will know what to expect, and will partner with you, and set up a programme for you.”

Sir Ken Stevens, rt, at breakfast with members of the delegation and business hosts


After 18 years in business Earthmaker Enterprises Ltd has had 50,000 patented home compost bins manufactured in New Zealand, and established eight export markets so far.

The plastic, three-tiered, aerobic compost system reduces greenhouse gas emissions and is user-friendly. Gravity does the hard work, says managing director Dr Lannes Johnson.

The time is right to expand into more markets as the world focuses on greenhouse gas emissions and putting waste to good use, he says.

The bin works like this: users put their food scraps and garden waste in the top section, and after a month or so, according to provided guidelines) remove the ‘pull-out panel’ and push material down into the middle chamber using the ‘push-pull-tool’. The tool is also used to push material down from the middle to the bottom chamber then to the front where it can be removed with a long handled shovel.

A bin for an average family makes an estimated 1000kg a year of organic rubbish which can create 200 litres of

healthy compost to spread around the garden.Its green credentials include not emitting methane like

single pile bins do (and methane is 23 times more noxious to the atmosphere than carbon dioxide). Earthmaker Enterprises suggest their aerobic composter is better than worm farms.

When aerobically produced compost is placed on the garden, its carbon content is sequestered by the soil, and the process reduces waste to landfills.

Dr Johnson, also a medical doctor and director of GP clinics, set up Earthmaker Enterprises out of his love of gardening and new challenges. He snapped up the rights to his friend’s father-in-law’s compost invention, which was initially made of timber. But Dr Johnson and fellow shareholders, including industrial designer Michael Smythe, developed the concept to make its manufacturing and logistics more affordable. Then they patented the ‘continuous cycle composting’ principle and trademarked the Earthmaker name.

The bin is sold in hardware and garden stores in New Zealand, Australia and through e-tailers in the US, UK, Tahiti, Finland, Greece and France.


Australia’s fifth-largest full-service audit, tax and advisory firm, BDO, is expanding with four new, key appointments in its Sydney and Brisbane offices: ■ Sydney’s Louise Worsley has been

promoted to partner;■ Former KPMG partner John

O’Donnell will lead the Private and Entrepreneurial Clients division of BDO in Sydney;

■ In Brisbane, Brendan Balasekeran has been promoted to partner in the Private and Entrepreneurial Clients division; and

■ Joubert Breet has joined BDO Brisbane from Deloitte as an associate director of Risk Advisory Services.

The appointments bring the number of partners at the BDO network in Australia to 153 supported by more than 1400 staff.

New trans Tasman appointments for business advice firm

Brendan Balasekeran

Joubert BreetLouise Worsley

Composting an answer to global emissions


Auckland based air conditioning equipment manufacturer Temperzone has moved its Australian operations into a new 18,000sq m facility in Sydney.

The offices, warehouse and spare parts department were moved by early January with full factory production underway by mid-January. Splitting the process into two steps enabled Temperzone to maintain a continuous supply of product to the market, says Australia P/L managing director Alan Channells.

New production machinery makes the plant the most sophisticated and largest production facility of its type in Australia; the Temperzone group is the largest manufacturer of air conditioning in the Southern Hemisphere, he says.

The larger premises allowed Temperzone to increase the level of automation in production including with a second Finn-Power automated turret punch, decreasing lead times.

In the new factory, Temperzone has also made the switch from LPG to natural gas eliminating bottled LPG for silver soldering and reducing associated risks.

Integrating the manufacturing, warehouse and spare parts all under one roof means Temperzone will now be able to improve overall efficiencies in manufac-turing, support and logistics, Channells says.

Over the past 23 years, 50-year-old Temperzone New Zealand has actively developed markets across Asia for premium commercial air conditioning. Its first office in Hong Kong was established in 1988.

“Ironically, while many air conditioners sold in Australia and New Zealand are manufactured in Asia, Temperzone NZ is reversing that trend by sending locally manufactured commercial air conditioners to Asia.”

The company also supplies heat pumps from a network of offices, warehouses and distributors in Australia, New Zealand, South East Asia and China.


Making and renting little portable buildings have kept Cabins To Go thriving during the global financial crisis when some people couldn’t afford big rents and family members returned home to live, says co-owner Marcel Bakker.

He and co-owner, wife Karen, are celebrating 10 years in business and planning rapid growth this year. They will increase their stock of cabins for their own rental business plus supply other rental companies under license in the Bay of Plenty, Manawatu, Northland and Auckland.

The cabins can have one to three bedrooms plus other facilities and are designed to be towed by trailer to wherever needed – for teenage sleepouts or holiday homes, commercial lunch rooms, mobile barber/food stall or temporary office space. Cabins To Go can organise consents needed to secure the building on piles.

“People need somewhere to live and with expensive rents it’s a good option to buy or rent a cabin for a spare room because teens can’t go flatting,” he says.

The commercial cabins installed are fitted out with power and lighting, toilet,

shower, hot water califont and optional kitchenette. Floor plans are standardised but designs can be customised, eg, with chosen type of toilet, cladding, kitchen colours and sizes. Buyers/renters install their own furniture.

Marcel says the cabins are like a caravan but built like a home – with full head height, more space and options of full insulation and double glazing, for example. They are built with light but strong timber frames and he is looking at using steel, constantly trying to improve the business.

Cabins To Go proudly became finalists in a business awards programme last year and are entering again because of the exposure it generated. And last month they exhibited their cabins and caravans at the New Zealand National Motorhome and Caravan Expo in Hamilton.

Cabins To Go going very well

Cabins can be customized to suit the buyer’s needs, then towed by trailer to site and secured on the ground.

Karen and Marcel Bakker, owners of Cabins To Go

Temperzone expands in Sydney


Leaders and Misleaders resonates for me like no other book on leadership ever has. I am recommending it to all our managers, board members and others.

I’m also keeping it handy as a ready reference for inspiration.

The thrust of the book is about being a good person – what this means and how and why to achieve it. There is no religious overtone or doctrine other than the perceptions of a “cultured, complex and cantankerous South African-born”, former Rhodesian and now New Zealand citizen,” as the author describes himself. He dedicates the book to his wife Cheryl, “whose love pretty much turned around a life that was headed in the wrong direction.”

The author has published this book to promote his leadership consultancy business. However, refreshingly, he talks little about leadership skills, which so

many other leadership gurus cover, and instead focuses on the leader’s need for personal transformation through on-going education and the development of a strong character along the lines of William Wallace (the Braveheart subject) who continually seeks to do good rather than bad.

The author demonstrates his own knowledge, brought about by extensive and on-going reading and his own many-faceted journey through life. He acknowledges leadership is not easy or without sacrifice and constant self-evaluation, mainly because it is easier for people to accept the status quo or too often, give in to being bad.

The author demonstrates his own knowledge, brought about by extensive and on-going reading and his own many faceted journey through life. He acknowledges leadership is not easy or without sacrifice and constant self-evaluation, mainly because it is easier for people to accept the status

quo or too often, give in to being bad.I like this quote from Ralph Waldo

Emerson (1836): “The difference between good and bad, better or worse, is simply helping or hurting.”

A person demonstrates a good attitude when they help and a bad one when they hurt.

It is about choice. We can all choose to lead or to mislead.

The book reinforced for me that a good leader is motivated by a sincere interest in improving the lives of the people they have appointed, and in the people they are appointed to serve: in the latter case, our customers/members. In this way leaders will achieve good for all and from that, good profits and from those, good remuneration.

Leadership inspires people to be the best they can be. It builds respect by being truthful because human relationships can have no meaning without the reality of objective truth.

Being a leader is about what sort of person you are. Knowledge, strength of character, sound judgment and a human world view are necessary and require a positive and constructive attitude. A cynic of human nature cannot be an effective leader.

Leaders motivate, resolve conflict, empower their staff and delegate to achieve the best.

Andre, thank you for the clear reminders and the focus.

Title: Leaders and Misleaders – the art of leading like you mean it

Author: Andre van Heerden

Publisher: self-published through Maruki Books, 2010

Reviewed by Alasdair Thompson, EMA chief executive

The good leader as good person

Business PlusREVIEW


Members have saved a total of $570,000 on their electricity, gas/LPG and waste services bills by taking part in the EMA/TUMG Bulk Utilities Tenders.

“If your business spends $1000 or more a month on electricity or natural gas/LPG and $400 or more a month on waste services, we have shown that the bulk tender process can cut your utilities bills,” said Total Utilities director, Richard Gardiner.

TUMG operates on a ‘no savings, no fee’ basis. EMA members whose utilities bills are reduced pay a one-off

fee equal to 32% of their first year savings. This represents a 20% member only discount off current TUMG pricing. For more information, ring TUMG on 09 5762107 or go to EMArket to register now (www.ema.co.nz/EMArket)

"I have always been very happy with the results TUMG delivers. In fact, our electricity contract was deemed to be ‘excellent’ by an independent energy consultant sent over from our parent company in Australia to review our energy usage.” - Jack McGrane, General Manager, Reliance Worldwide

Savings on power costs redirected to patient careTe Omanga Hospice staff are exuberant about the savings they have made on electricity and gas through EMA’s E-Market bulk tender offering.

Hospice finance manager Diane Phillips says, “I am absolutely over

the moon with the support we have had to achieve this. It’s the best thing EMA ever did.”

She has saved 17.9% on electricity and 34% on gas.

“As a hospice, anything we save goes straight back into patient care.”

EMA’s partner providing the energy savings, Total Utilities Management Group, was very

helpful, Diane says.“They were so easy to

communicate with and knew exactly where we were coming from and they just got on with it for us. I can’t rave enough.”

So far 80 businesses have signed up, and the more the merrier: the prices go down according to the number of participants.

Pay $4.20/ream for top quality Nature’s paperNature’s copy and printing A4 paper from Fuji Xerox is high grade, reliable and consistent 80 gsm paper, offering whiteness ( C I E 150) for everyday copying and laser printing with a touch of smoothness and good opacity (93%). All this delivered by a environmentally friendly paper made from wheat straw not wood. A green approach with a result that’s all white. For every 50 reams of A4 Nature’s paper purchased in April, EMA members will receive a complimentary movie ticket. Free delivery for orders of 25 reams or more. Exclusive online offer for EMA members. Price excludes GST.To buy now go to the Fuji Xerox store on EMArket (www.ema.co.nz/emarket)

Pay $9.50 for 5-pack of Lever Arch FilesThe Eastlight Classic Mottle Lever Arch File is a strong one-piece construction with added bottom rail and ring pull strength. In A4 and Fullscape, the files have fittings for easy

closure and a locking lever arch mechanism to keep pages secure. Price for 5-pack now $9.50 excluding GST.To buy now go to the Fuji Xerox store on EMArket (www.ema.co.nz/emarket)

Free Water Coolers from Just Water Pay only for the water you drink!With this special online offer you can give your staff

and customers the convenience of filtered, chilled drinking water in any location in your business. Just Water’s drivers deliver water directly to your business for only $1 per litre.■ No monthly rental - Cooler Free on loan for term of

agreement■ Water Delivery $1 per litre – AquaFresh filtered water

delivered In 15 litre bottlesTo buy now go to the Just Water store on EMArket (www.ema.co.nz/emarket)

EMA/TUMG Bulk Utilities Tender ScheduleElectricity bulk tender closing dates:15th July and 31st October 2011Gas/LPG and waste services bulk tender closing dates:31st July, 30th November 2011

EMArket April Offers

Business Plus NEWS

Bulk tenders save members over $570,000

business plus · small business owners themselves or as shareholders in our bigger businesses....

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