BUSINESSPLUS - New Zealand Manuka ...

Page created by Marion Singh
 
CONTINUE READING
BUSINESSPLUS - New Zealand Manuka ...
ISSUE 141 - OCTOBER 2016

BUSINESSPLUS
NEWS AND COMMENTARY FOR EMA MEMBERS

                                         BUSY BEES GROWING
                                         THE NZ ECONOMY
                                         READ MORE: PAGE 29

MORE STORIES
Page 5, 8: Environment law protects no one
Page 13:   Manufacturing driving NZ’s growth
Page 19:   90-day trials strictly enforced
Page 26: Nothing like a trade mission to get you going
PLUS:      Spring Member Briefing schedule and more...
BUSINESSPLUS - New Zealand Manuka ...
“THE BEST WAY TO DEAL
WITH ANY EMPLOYMENT
RELATIONS MATTER IS
WHEN YOU KNOW THAT YOU
ARE ON THE RIGHT TRACK,
FOLLOWING THE RIGHT
PROCESS.

THE EMA SUPPORTS AND
COACHES MEMBERS, LIKE
US, TO BE PROFESSIONALS
LIKE THEM”
Marilou Cuison, Human Resources
Manager | PAK’nSAVE Papakura

Do you need help with
restructures, union
negotiations, personal
grievances or other staff
issues?

LET AN EMA CONSULTANT
HELP YOU.

   Visit ema.co.nz or call
  0800 300 362 to find an
  EMA consultant near you.
BUSINESSPLUS - New Zealand Manuka ...
“To champion
BUSINESSPLUS
                                                                                                                                                                                         ISSUE 141 - OCTOBER 2016

                                                                                                                               BUSINESSPLUS
                                                                            New Zealand business and                           NEWS AND COMMENTARY FOR EMA MEMBERS

is published by
The Employers and Manufacturers Association                                help our members succeed”                                                                    BUSY BEES GROWING
                                                                                                                                                                        THE NZ ECONOMY
(Northern) Inc (EMA)                                                                                                                                                    READ MORE: PAGE 29

EMA is the major shareholder of national lobby group, BusinessNZ.

EMA head office:
145 Khyber Pass Rd, Grafton, Auckland, New Zealand
                                                                                    On the cover...
Private Bag 92066, Victoria Street West, Auckland 1142, NZ                Manuka honey production pioneer, New Zealand
Ph: +64-9-367 0900                                                         Manuka Group, keeps innovating and growing.
Email: ema@ema.co.nz
In Hamilton:
                                                                                                           Full story, p29.    MORE STORIES
                                                                                                                               Page 5, 8: Environment law protects no one

EMA/ExportNZ Waikato                                                                                                           Page 13:
                                                                                                                               Page 19:
                                                                                                                                          Manufacturing driving NZ’s growth
                                                                                                                                          90-day trials strictly enforced

103 Tristram Street, Hamilton.
                                                                                                                               Page 26: Nothing like a trade mission to get you going

                                                                          CONTENTS
                                                                                                                               PLUS:      Spring Member Briefing schedule and more...

PO Box 490 Waikato Mail Centre, Hamilton 3240.
Ph: +64-7-839 2713
In Tauranga:
ExportNZ Bay of Plenty                                                    Commentary
Smart Business Centre, 65 Chapel Street, Bay Central, Tauranga, 3110.        5      EMA’s CEO Kim Campbell on: Effective use of our resources
PO Box 13202, Tauranga Central, Tauranga 3141.                                      – a case for change
Ph: +64-7-571 0600
AdviceLine: 0800 300 362 (in NZ) or 1800 300 362 (from AUS) or
                                                                                    Winston Peters guest speaker at AGM in November
advice@ema.co.nz                                                             6      Want better transport? Over to you, Aucklanders
Phone 8am-8pm weekdays for information about employment and                  7      Obituary to Sir Graeme Douglas
more, plus referrals to EMA Legal lawyers and your local EMA consultant
in employment relations and/or occupational health and safety.               8       Report backs need for resource management reform
Visit www.ema.co.nz for owner and staff training programmes, confer-         9       BusinessNZ CEO Kirk Hope on: We need people with skills and work visas
ences and other events, employer guides and templates, manufacturer
services, media statements and submissions, export development and more      10     Tapping into global expertise
EMA contacts
                                                                                    Survey: How well does this magazine keep you informed?
Chief executive: Kim Campbell                                                11     Opotiki – more than farms and shops
Membership manager: Roger Carson
External Relations manager: Val Hayes
                                                                             12     Seen @ Mayoral candidates’ debate - Auckland
Advocacy and Industry Relations manager: Mark Champion                      13      Manufacturing driving NZ’s economic growth
Learning manager: David Foley                                             Employment
Enterprises and Strategy manager: Mauro Barsi
Industrial Relations and Safety manager: Paul Jarvie                         14     Avoiding employment traps with employment agreements
Finance and Technology manager: Paul Yeo                                     15     Apprenticeships making a comeback in NZ
Corporate and Building Services manager: Sheree Alcock
ExportNZ manager: Catherine Lye
                                                                             16     Employment Chat – Q and A: Coping with health and safety, underpaying
                                                                                    competitors and public holiday pay
BusinessPlus is free and available to EMA members only                       18      20 EMA members reach finalist status in Best Workplaces Awards
Editor: Mary MacKinven, +64-9-367 0939, mob +21 636 089,
                                                                             19     Case law: Strict rules relating to 90-day trial periods
email mary.mackinven@ema.co.nz                                               20     The end isn’t nigh for worker safety and wellbeing
Designer: Ripeka Mikaere | Printer: MHP | Distributor: Rocket Mail        In business
Advertising sales: Colin Gestro, Affinity Ads, mob + 27 256 8014,
email colin@affinityads.com                                                  22     ICT: Choose the computer solution based on the business problem
ISSN No. 1176-4953                                                           23     Wellbeing: Nutrition - the game changer your business needs?
                                                                             24     Marketing: Marketing-led approach leads to market leading
                                                                             25     Selling up: Strategically exiting a significant business
                                                                          International trade
  EMA is yours                                                               26     Nothing like a trade mission to expedite exporting
  Enterprises of all types and sizes belong to EMA for a variety
  of benefits:                                                              27      Business opportunities for NZ in Cuba
  • The latest information and advice on everything to do                 Member profileS
      with employing staff or managing contractors, and legal
      representation if employers require - at member rates;
                                                                              29    Manuka Group: Busy bees grow their Manuka honey business
  • A choice of 100-plus courses and tailored training                        30    Zealong Tea Estate: NZ tea tempts German tastebuds
      options, plus specialist seminars and events on topics
                                                                                    Over the Moon Dairy: International recognition for NZ cheese
      such as Lean practice and developing markets offshore
      through EMA’s Export New Zealand division – all                         31    Spring Member Briefings schedule: book now!
      providing opportunities to network;
  • Ensuring your voice is heard by local and central
      government, since our aim is to improve the environment             + Inside: Training Plus insert detailing October training courses, and more
      in which your business operates.
                                                                                                                                                 BusinessPlus October 2016                                          3
BUSINESSPLUS - New Zealand Manuka ...
10 WAYS WE HAVE HELPED
YOUR BUSINESS

       Been deeply involved in making                    Provided economic and employment
 01.   practical changes to the Health &           02.   updates to more than 6000 people
       Safety at Work Act                                via our regular Member Briefings

       Introduced the concept of Employment              Continued to raise the importance of better
 03.   Readiness Certificates for school leavers   04.   transport infrastructure and funding for
                                                         this

        Promoted the need for a more efficient           Been instrumental in the passing of
 05.    planning and consent process               06.   legislation protecting migrant labour from
                                                         exploitation

        Fought to mitigate members having to             Answered more than 30,000 queries from
 07.    bear unnecessary costs of earthquake       08.   members via our AdviceLine service in the
        strengthening for buildings in low risk          past year
        areas

        Provided more than 750 training,                 Delivered a reduction
 09.    networking and conference events for       10.   in ACC levies
        our members, which were attended by
        more than 10,000 people

                             NZ 0800 300 362 | AU 1800 300 362
                                                www.ema.co.nz
BUSINESSPLUS - New Zealand Manuka ...
CEO COMMENTARY
                                                                                                     By Kim Campbell

Effective use of our resources
– a case for change
The launch of our campaign to reform the            EMA has been vocal on reforming the             its environmental goals.
resource management system marks a                  Resource Management Act (RMA) for many
significant milestone for the EMA.                  years. We know that this piece of legislation   Rigorous evaluation and monitoring of
                                                    has been the bain of your life and most         outcomes has been limited, resulting in
In late September, we and the Property              businesses consider it a handbrake on           an erosion of the potential for adaptive
Council of NZ and the New Zealand Council           development - particularly when it is           governance and robust implementation.
for Infrastructure Development, released            combined with the Local Government
a ground-breaking piece of research                 Act and the New Zealand Transport               It’s time to put the party politics aside, and
conducted by the Environmental Defence              Management Act.                                 have a mature debate about how we as
Society (EDS) – which you can read more                                                             a nation want to effectively manage our
about on page 8.                                    In this latest development, we can now          resources.
                                                    say the current system is not working for
You may well wonder why business                    business, nor serving the needs of the          While we initially believed a reform of the
organisations such as ourselves would               environment. We commissioned the EDS to         Act was required, we are now of the view
have teamed up with an environmental                explore whether the RMA had delivered to        that the debate goes beyond this. There is
organisation. The answer is simple: the             desired environmental outcomes, as part         no quick fix on offer here.
current resource management system                  of a wider assessment of the efficacy of the
is not working for anyone – no matter               Act.                                            What’s important is that we, as a nation,
which side of the debate you sit on, the                                                            need to explore the options for change.
one thing we all agree is that there is an          Now in its 25th year, and having been           These may be legislative, they may
overwhelming need for change.                       amended more than 20 times, the RMA             be institutional, these may be around
                                                    has not met the environmental outcomes          process – whatever they are it’s important
This research delivered the empirical               expected of it, according to this research.     that we marshal a new era for resource
evidence that our current system is failing                                                         management.
the environment.                                    A lack of national direction has limited the
                                                    potential of the resource management            • Kim Campbell is the CEO of EMA. Email
As a member, you will be well aware the             system to effectively and efficiently achieve   kim.campbell@ema.co.nz

Winston Peters guest speaker at AGM
Come along to our annual general meeting                 known for his role as kingmaker when he held
(AGM) on November 9 and gain an insight into             the balance of power after the 1996 election. He
how New Zealand politics will shape up over the          eventually formed a coalition with National.
next 12 months leading into the 2017 general
election.                                                The question is, will he be kingmaker again in
                                                         2017?
With The Right Honourable Winston Peters as the
guest speaker, you will be left in no doubt about        AGM details:
his view of his role in the next Government.             Date: Wednesday, November 9
                                                         Time: 4pm-6pm: AGM meeting, guest
While he is the current MP for Northland and                      speaker and refreshments
Leader of New Zealand First, his political career        Venue: EMA Business Hub, 145 Khyber Pass
spans almost 40 years since he first entered                      Road, Grafton, Auckland
Parliament in 1978 as a National Party MP.               Please register your interest with kylee.
                                                         goodwin@ema.co.nz if you would like to
Arguably, under the MMP environment, he is best          attend the AGM.

                                                                                                                        BusinessPlus October 2016    5
BUSINESSPLUS - New Zealand Manuka ...
COMMENTARY                          “The EMA would have liked the same urgency applied to
                           By Alan McDonald                    actually building the required infrastructure.”

    Want better transport? Over to you,
    Aucklanders are going to have to pay more      options for progressive congestion            our transport future. But, they must also be
    for better public transport, better road       charging.                                     convinced that the future vision will deliver
    links and less congestion on the roads -                                                     the promised benefits. That leadership
    somehow.                                       Enhanced roading, public transport and        must come from our Mayor, Council and
                                                   traffic management systems are all part       perhaps a specialist ATAP-style body
    That’s the clear message that emerged          of the equation, but ATAP is pinning its      charged with delivering the newly aligned
    from the findings of the Auckland Transport    hopes on reduced congestion on a yet-         transport strategy.
    Alignment Project (ATAP) announced in          to-be-identified road pricing mechanism.
    mid-September. ATAP has been a success         That is hoped to shift the mindset and        Public Private Partnerships would be
    for Transport Minister Simon Bridges           behaviour of Auckland drivers towards         one way to speed up project delivery;
    and Auckland Mayor Len Brown, in that          off-peak schedules and public transport in    Infrastructure Bonds could spread costs
    central government and Auckland local          sufficient numbers to reduce congestion in    over future generations of Aucklanders
    government, plus the transport planning        2027 by about 6 per cent of 2013 numbers.     who also benefit from today’s projects; and
    agencies, all now agree the transport          That’s roughly equivalent to the freer flow   asset reallocation might help unlock the
    priorities for the city and the region.        of traffic we see every school holiday in     Government’s wallet by demonstrating
                                                   Auckland.                                     Auckland is willing to contribute its share
    The result is a 10-year programme of                                                         – much as Christchurch has shown during
    transport priority projects – basically the    Who pays the $4bn                             the rebuild.
    Auckland Transport Plan developed by           shortfall?
    Auckland Council and Auckland Transport        In the meantime there is no urgency to        The ATAP report acknowledges the
    two years ago, plus a NorthWestern             reduce worsening congestion and not           urgency around finding funding solutions,
    Busway.                                        even a hint at where that extra $4bn might    and proposes a work stream to address that
                                                   come from, although Auckland Council’s        issue as early as next year.
    At nearly $24 billion that’s $4bn more than    chief executive Stephen Town made it clear
    the previous forecast spend. But there is no   at the ATAP briefing that the majority of     The EMA would have liked the same
    clue as to where the $4bn will come from.      that funding was expected to come from        urgency applied to actually building the
                                                   Auckland Council.                             required infrastructure.
    Why the 10-year delay in reducing
    congestion? That’s how long it will take       Auckland ratepayers and road users will       The EMA takes issue with some of the ATAP
    to assess and implement the technology         have to accept they have a role in funding    priorities, as enhanced port access and the

6    BusinessPlus October 2016
BUSINESSPLUS - New Zealand Manuka ...
Obituary to Sir
, Aucklanders                                      Graeme Douglas
  second stage of improved airport access
                                                   By Kim Campbell
  should be included in the early priorities
  rather than in the intermediate phase.           Founder and joint managing
                                                   director of Douglas
  We will also continue to push for three-         Pharmaceuticals, Sir Graeme
  laning of the Mt Wellington overbridge as        Douglas, passed away on
  part of the East/West link.                      September 1. The company has
                                                   been a member of EMA for 35
  But ATAP has also been a significant success     years.
  in identifying an agreed set of priorities.
  With the multitude of agencies and               It was as if you were the only
  ownerships/responsibilities for various parts    person on earth when you met
  of Auckland’s transport network, it’s great to   him; his personal attention and
  have that alignment.                             simple, old-world manners never
                                                   permitted him to be anything but
  Let’s get on with it.                            attentive, polite and charming…
                                                   year in and year out.
  Proposed contractors law
  defeated                                         A quiet, determined man with
  A special thanks to all our member               unshakeable personal values,
  companies who responded to our call              possessed of a sharp intellect and                          Sir Graeme Douglas
  to action recently, which resulted in            tough inner resolve.
  defeating the Minimum Wage (Contractor
  Remuneration) Amendment Bill.                    Often underestimated, Sir Graeme Douglas was at the same time a shrewd
                                                   and determined businessman and a generous, charitable philanthropist. He
  Our members emailed MPs and raised               was a colossus in the Auckland business community, standing stride of an
  awareness of what was a flawed piece of          international pharmaceutical enterprise he started in his Pharmacy in Te Atatu
  law – and which was defeated by one vote in      , and now employing more than 450 people.
  Parliament in late August.
                                                   I doubt his headmaster at New Plymouth High school saw the promise of the
  That was influenced by your direction and        distinguished old boy he would spawn, nor indeed his best mate Sir David
  support, along with pressure applied by our      Levene who was knighted on the same day as Sir Graeme at Government
  sister membership organisations around the       house. Graeme would marry Ngaire, whose sister would marry David.
  country.
                                                   We first met when we were competitors in the pharmaceutical industry nearly
  The Contractors Bill would have imposed          30 years ago, and he subsequently asked me to become a director of his
  restrictions on contracts for services,          company.
  requiring those in contracting arrangements
  to be paid the equivalent of the minimum         In the intervening years I have observed how he was able to build his business
  wage or higher. Members were telling us          steadily; without fuss, enter and exit markets with good timing, believing in his
  their concerns were not that businesses          people and building durable relationships around the world. He was the type
  would have to pay the minimum wage.              of businessman who makes you proud to say you are in business.
  Rather, it would have meant Government
  would have to set a minimum contract rate        He will be deeply missed by his many charities, his dedicated staff, his sons Jeff
  for services in order to address concerns        and Richard, his wife of nearly 60 years Ngaire, his extended family and a huge
  about poor remuneration practices. The           community of colleagues and business associates.
  Bill would have blurred the line between
  contracts and employment agreements.             New Zealand has said farewell to one of its leading citizens and I have lost a
                                                   dear friend.
  • Alan McDonald is policy director at EMA.
  Email alan.mcdonald@ema.co.nz                    • Kim Campbell is chief executive of EMA. Email kim.campbell@ema.co.nz

                                                                                                           BusinessPlus October 2016    7
BUSINESSPLUS - New Zealand Manuka ...
COMMENTARY
                            By Alan McDonald

                  Evaluating the
    Report backs need      for resource
                  environmental
    management reform
                  outcomes
                                                                                                                                                                                                                                                            The Reso
                                                                                                                                                                                                                                                                          urce Mana
                                                                                                                                                                                                                                                           human                          gement
                                                                                                                                                                                                                                                                       activities                      Act has
                                                                                                                                                                                                                                                          landscap                   on New                         jurisdicti
                                                                                                                                                                                                                                                                        es and                    Zealand’                        on over
                                                                                                                                                                                                                                                                                   unique                      s fragi                        many
                                                                                                                                                                                                                                                         outcome                              wildlife.                   le islan                     of the
                                                                                                                                                                                                                                                                       s of the                                                      d ecos                       impacts
                                                                                                                                                                                                                                                                                   RMA have                 This repo                          ystems,                        of
                                                                                                                                                                                                                                                        of poor                                                            rt conc                          exception                         9. A narr
                                                                                                                                                                                                                                                                     impleme                        not met                           ludes                               al
                                                                                                                                                                                                                                                                                 ntation,                        expectati                     that the                                                      ow rang
                                                                                                                                                                                                                                                       Addressin                              but also                           ons, large                 environm                                                      e of instr
                                                                                                                                                                                                                                                                       g air disc                           due to                                                       ental                    has been                            uments
                                                                                                                                                                                                                                                      impleme                       harges,                             a wide                 ly as a                                                             employed
                                                                                                                                                                                                                                                                                                 most poin                         range                 result
                                                                                                                                                                                                                                                                    nting mitig                                                                                                                  behaviou                         to gene

                  of the R
                                                                                                                                                                                                                                                                                                                 t source                    of othe                                                             r chan                   rate
                                                                                                                                                                                                                                                     standard                       ation and                                                          r facto                                                           ge whic
                                                                                                                                                                                                                                                                   ising deci                       offsetting                  freshwate                         rs.                           instances                           h, in man

                                                                                                               MA
                                                                                                                                                                                                                                                     most com                    sion-ma                             to addr                   r  disc harges,                                                  , has not                     y
                                                                                                                                                                                                                                                                    munities                  king and                           ess unav                                                      purpose.                       been fit
                                                                                                                                                                                                                                                                                 can func                     providing                       oidable                                                          better                   for
                                                                                                                                                                                                                                                                                               tion are                       a fram                      impacts,                            likely poss                outcome
                                                                                                                                                                                                                                                                                                            all achi                    ework                                                                  ible throu            s are
                                                                                                                                                                                                                                                   The effec                                                            evements                   within
                                                                                                                                                                                                                                                                 tiveness                                                                                   which                            a broa                          gh emp
                                                                                                                                                                                                                                                                              of the                                                    it can                                                         der rang                        loying
                                                                                                                                                                                                                                                  commun                                                                                          claim.                                                             e of instr
                                                                                                                                                                                                                                                              ity aspi                   RMA woul                                                                                           including
                                                                                                                                                                                                                                                                          rations                       d seem                                                                                                                    uments,
                                                                                                                                                                                                                                                 but has                                                             to have                                                                               economic
                                                                                                                                                                                                                                                            been weak                are more                                                                                                                               instrume
                                                                                                                                                                                                                                                                                                     easily                       been grea
                                                                                                                                                                                                                                                The Act                      est whe                          reconcile                           test whe                                                                             nts.
                                                                                                                                                                                                                                                            has been                     re reso                              d with                          re                    10. futu
                                                                                                                                                                                                                                                                                                     urces                              extractive                                               re refor
                                                                                                                                                                                                                                               and weak                    strongest                          are past                                                                                       m of the

                                                                                                                                       Evaluating the
                                                                                                                                                                                                                                                             est on                        on adju                           comforta                  inter  ests,                       managem                          resource
                                                                                                                                                                                                                                                                                                       dicating

    Our report on the environmental             There were two parts to the report.
                                                                                                                                                                                                                                             longer                     overarch                                                           ble alloc                                                    ent syst
                                                                                                                                                                                                                                                        term strat                   ing man                         individua                         ation limit                       New Zeal                      em for
                                                                                                                                                                                                                                                                        egic issue               agement                           l perm                             s.                              and shou
                                                                                                                                                                                                                                            the goal                                                            of cum                       itting func
                                                                                                                                                                                                                                                          of sust                      s. As a                               ulative                        tions,                      only whe                      ld proc

                                                                                                                                       environmental
                                                                                                                                                                                                                                                                     ainable                      result,                              effects                                                       re the                     eed
                                                                                                                                                                                                                                           below.                              managem                       it has                                and othe                                                     anticipate
                                                                                                                                                                                                                                                      Some                                                             largely                                                        improvem
                                                                                                                                                                                                                                                                are sym                         ent to                            failed                        r                                     ents are                  d
                                                                                                                                                                                                                                                                            ptoms                         date. The                         to achi
                                                                                                                                                                                                                                                                                       of othe                             key issue                  eve                            and whe                         certain
                                                                                                                                                                                                                                                                                                  r key issue                                                                                     re any

                                                                                                                                       outcomes
                                                                                                                                                                                                                                         1. Whil                                                                                         s are iden                                                          changes
                                                                                                                                                                                                                                                      e the RMA                                                     s – they                            tified                      based                                  are

    outcomes of the Resource Management
                                                                                                                                                                                                                                                                       has brou                                                  are all                                                       on robu
                                                                                                                                                                                                                                                                                                                                           linked:

                                                                        A report by the
                                                                                                                                                                                                                                              it coul                               ght toge                                                                                                               st evid
                                                                                                                                                                                                                                                        d be more                                                                                                                                                      ence.
                                                                                                                                                                                                                                                                         integrate               ther   a lot of
                                                                                                                                                                                                                                             be bett                                                                                                                           The rese

                                                                                                                                       of the RMA
                                                                                                                                                                                                                                                         er joine                      d. Ther                       decision                                                             tting of
                                                                                                                                                                                                                                                                    d up to                       e are still                     -making                                                             case law
                                                                                                                                                                                                                                                                               enhance                           key exclu                       processe                    King Salm                                through
                                                                                                                                                                                                                                                                                              overall                            sions that                   s,                           on and
                                                                                                                                                                                                                                       2. A lack                                                         environm                                                           improvem                   the ongo
                                                                                                                                                                                                                                                      of effec                                                           ental outc               should                                                              ing
                                                                                                                                                                                                                                                                  tive strat                                                                                                              ent in
                                                                                                                                                                                                                                                                                                                                        omes.                                                       planning

                                                Part one lookedEnv
                                                                                                                                                                                                                                          has redu                             egy and                                                                                      of natio                               , availabili

    Act (RMA) paints a dim picture.                                       ironme
                                                                     at what        measures            were
                                                                                                                                                                                                                                                        ced the                               oversigh                                                                                nal direc
                                                                                                                                                                                                                                                                                                                                                                                                                                 ty

                                                                                         ntal Def
                                                                                                                                                                                                                                         including                   potential                              t of deci                                                      public                  tion and
                                                                                                                                      A report by the                                                                                                                              to prot                                                                                         expectati                      rising

                                                                                                          ence Society
                                                                                                                                                                                                                                                        the capa                             ect envi                     sion-ma
                                                                                                                                                                                                                                                                      city to                             ronmenta                     king                               potential               ons sign
                                                                                                                                                                                                                                                                               manage                                                                                                                           al that
                                                                                                                                      Environmental Defence                                                                        3. The                                                     cumulati                    l value
                                                                                                                                                                                                                                                                                                                                    s,
                                                                                                                                                                                                                                                                                                                                                                                       of the
                                                                                                                                                                                                                                                                                                                                                                                                 Act is                   the
                                                                                                                                                            Society                                                                           incorrect
                                                                                                                                                                                                                                                             jurisprud
                                                                                                                                                                                                                                                                                                           ve effec
                                                                                                                                                                                                                                                                                                                        ts.
                                                                                                                                                                                                                                                                                                                                                                         unlocked
                                                                                                                                                                                                                                                                                                                                                                                     . The RMA
                                                                                                                                                                                                                                                                                                                                                                                                          only just
                                                                                                                                                                                                                                                                                                                                                                                                                         being
                                                                                                                                                                                                                                       undermin                            ence relat                                                                                   for New                      is the
                                                                                                                                                                                                                                                     ed the                                                                                                                        Zealand’                     flashpoin
                                                                                                                                                                                                                                                               potential                   ed   to the                                                                                          s effor                       t
                                                                                                                                     June 2016                                                                                        reset of                                                            ‘overall                                                     with sust                          ts to grap

                                                available to assess the outcomes for
                                                                                                                                                                                                                                                   the case                   for envi                                 balance’                                                    ainability
                                                                                                                                                                                                                                                                law and                   ronmenta                                                                                                and it                  ple
                                                                                                                                                                                                                                                                                                         l bottom                    approach                         seem                                 woul
                                                                                                                                                                                                                                                                             other                                                                                             we  have som                         d
                                                                                                                                                                                                                               4. Agen                                                amendm                            lines to
                                                                                                                                                                                                                                                                                                    ents are                         be appl                                                      e work
                                                                                                                                                                                                                                           cy capt                                                                likely to                      ied. The                                                     to do.
                                                                                                                                                                                                                                                       ure of                                                                   see this
                                                                                                                                                                                                                                    vested                       (particula                                                                                         This chall
                                                                                                                                                                                                                                              interests                        rly loca                                                      improve.                            enge is
                                                                                                                                                                                                                                   appropria                has redu                       l) gove                                                                  projected                far from
                                                                                                                                                                                                                                                                          ced the                     rnment                                                                                              dissipatin

                                                                  June 2016
                                                                                                                                                                                                                                                 tely man                             power                       by                                                              populatio                               g.
                                                                                                                                                                                                                                                              age effec                          of the                                                            economic                     n and

    A little over a year ago the EMA joined     the environment       since the introduction
                                                                                                                                                                                                                                                                            ts on the                       RMA to                                                               growth
                                                                                                                                                                                                                            5. A lack                                                      environm                                                               pressure                  will only
                                                                                                                                                                                                                                          of natio                                                       ent.                                                                 s on the                   sharpen
                                                                                                                                                                                                                                system                 nal direc                                                                                                 restructu                environm
                                                                                                                                                                                                                                          to effec                   tion has                                                                                                 ring of                   ent, and
                                                                                                                                                                                                                                                       tively                    limited                                                                                                econ
                                                                                                                                                                                                                                                               and effic                     the pote                                                          will be                         omic syst
                                                                                                                                                                                                                                                                             iently                        ntial of                                                       required                             ems
                                                                                                                                                                                                                         6. Agen                                                      achieve                          the RMA                                sustaina                to achi
                                                                                                                                                                                                                                      cy capa                                                       its envi                                                               bility (suc          eve genu
                                                                                                                                    The purpose of this project                                                                                  city has                                                      ronmenta                                                                                         ine
                                                                                                                                                                                                                                                                                                                                                                                         h as ‘curb

    forces with the Property Council NZ and     of the RMA. They painted a pretty dim
                                                                                                                                                                 is to explore whether the                                   the RMA                          often                                                            l goals.                      the appe
                                                                                                                                                                                             Resource Management                         and oppo                       been insuffi                                                                                       tite of                     ing
                                                                                                                                   Act 1991 (RMA) has delivered                                                             finan       amended         rtuni
                                                                                                                                                                                                                                                      and    much-discussed              cien                                                                mus                   the afflu
                                                                                                                                                                   desired environmental outcomes                                  cial and                    ties   for cent         ,        t to succ                                                          t recognis                   ent’).1
                                                                                                                                                                                                        for                                    logistical                        ral gove                     essfully                                                           e the curre             We
                                                                                                                                   New Zealand. It is intended                                                                         the Act’s     impact      on ort                                                     impleme                         of the
                                                                                                                                                                 to complement wider assessments                                                              supp    economic and            rnment                                     nt                           RMA and                    nt failin
                                                                                                                                                                                                         of                                                                have gene                       to prov                                                                act upon                   gs
                                                                                                                                   the efficacy of the Act.                                                         7. The             environmental outcomes                              rally not                  ide                                  to mars
                                                                                                                                                            The project is focused on                                            design                                      is a common                                                                              hal in                     them,
                                                                                                                                                                                         gathering the best                                of impl                                                      been take                                                              a new
                                                                                                                                  available information on                                                                different topic of          ementing although
                                                                                                                                                                                                                                                    conversation,                                                        n.                               genuine                       era of
                                                                                                                                                             the state of the environment                                                                                                                                                                                                         more
                                                                                                                                                                                             in New Zealand                            mandate                        institutio                                                                                       adoption

    New Zealand Council for Infrastructure      picture, with much of our native flora
                                                                                                                                  and the influence of the                                                               the best more the sformer     requires than the latter.    ns and                                                                                         of sust
                                                                                                                                                             RMA on that state. This                                                  means                          systema                    allocation                                                                                    ainability
                                                                                                                                                                                       evidence is intended                                                                                                                                                                                                 .
                                                                                                                                  to help enable an informed                                                                                    of deliv                        tic revie                       of
                                                                                                                                                                discussion on the future                                                                   ering on                           w to ensu
                                                                                                                                                                                           of the RMA.                                                                   statutory                           re it is
                                                                                                                                                                                                                 8. Rigo              Often missing from this                           aspiratio
                                                                                                                                                                                                                             rous eval                                      discussion
                                                                                                                                                                                                                                          uation                                                      ns.
                                                                                                                                 The RMA was the first legislation                                                   eroding          is an  empirical
                                                                                                                                                                                                                                                     and mon element. The
                                                                                                                                                                      internationally to enshrine                                 the pote                         itoring
                                                                                                                                 sustainability in its overriding                                  the concept of                             ntial                           of
                                                                                                                                                                                                                                      critical   issue
                                                                                                                                                                                                                                                     for really     is, has theoutc      omes
                                                                                                                                                                  purpose which is ‘to promote                                                             adaptive                  RMA           has been
                                                                                                                                                                                                   the sustainable

    Development to commission a report          and fauna, maritime and freshwater
                                                                                                                                 management of natural                                                                                delivered on its environmental     governan                                  limited,
                                                                                                                                                           and physical resources’.                                                                                                    ce and
                                                                                                                                                                                       Now in its 25th year,AEvAluA
                                                                                                                                                                                                               the  TINg ThE                                                                       robust
                                                                                                                                 of the Act remains high                                                            profile   ENvIRO goals                                                                    impleme
                                                                                                                                                                                                             JuNE 2016T by ThE ENvIRONMENTAl and if not, why not? This
                                                                                                                                                                                                               REpOR
                                                                                                                                                           amongst observers of environmental                                                                                                                                ntation.
                                                                                                                                                                                                    and economic                      NMENT OuTcOMES
                                                                                                                                 management and it is highly                                                                         is theAlkey
                                                                                                                                                                                                                                               DEfEN      Of ThE
                                                                                                                                                                                                                                                     question
                                                                                                                                                                                                                                                               y that this
                                                                                                                                                                                                                                                     cE SOcIET RMA
                                                                                                                                                                visible compared with other
                                                                                                                                                                                                legislation. Often
                                                                                                                                                                                                                                     report seeks to answer.                                                                                                                   1 benid
                                                                                                                                                                                                                                                                                                                                                                                       ickson
                                                                                                                                                                                                                                                                                                                                                                                               et al, 2011

    to analyse the effectiveness of the         environments, in a poorer state than they
                                                                                                                                 EvAluATINg ThE ENvIRONMENTAl
                                                                                                                                 A REpORT by ThE ENvIRONMENTAlOuTcOMES Of ThE RMA
                                                                                                                                 JuNE 2016                     DEfENcE SOcIETy

    RMA in protecting and managing New          were in 1991.
    Zealand’s environment.                                                                                                    Part two of the report focused on the
                                                                 The purpose of this proje
                                                                                                ct is to explore whether
                                                The notable exceptions              were
                                                                Act 1991 (RMA) has delive
                                                                                                red desired environmental
                                                                                                                              implementations
                                                                                                                            the Resource Management          andamen
                                                                                                                                                                  effectiveness           of the
                                                                                                                                                                       ded and much-discussed
                                                                                                                               outcomes for                                                         ,
    Those findings are now available and        improvements    NewinZeala
                                                                        airnd.quality,
                                                                                It is intendedpossibly
                                                                                                  to complement wider asses   RMA,       and
                                                                                                                                  sments of
                                                                                                                                                the    results  are
                                                                                                                                                                the    telling.
                                                                                                                                                                     Act’s impa  ct There
                                                                                                                                                                                    on economicis and
                                                                the efficacy of the Act.                                                                        envir onme  ntal
    we’ve been sharing them with key            driven as much      by the HealthTheAct
                                                               available information on
                                                                                                        and
                                                                                                  project is focused on gathe
                                                                                                                              wide       agreement
                                                                                                                                  ring the  best            among      thoseoutco various
                                                                                                                                                                                       mes is a common
                                                                                                                                                                topic of conversation, altho
                                                                                              the state of the environme                                                                      ugh
                                                                                                                             nt in New Zealand
    stakeholders, relevant Government           other legislative    change,
                                                               and the                as    much
                                                                         influence of the RMA on        as   by               stakeholders
                                                                                                        that state. This evidence
                                                                                                                                                     involved      on
                                                                                                                                                                more     a  daily    basis    with
                                                                                                                                                                      the former than the latter
                                                                                                                                                                                                  .
                                                                                                                                     is intended
                                                               to help enable an inform
                                                                                                        ssion on the future the
                                                                                                                              of theAct,
    Ministers and opposition politicians        the RMA, and in the significant                    reduction                          RMA. that it needs significant or some
                                                                                              ed discu
                                                                                                                                                               Often missing from this
                                                                                                                                                                                           discussion
    leading up to, and since, the formal        of point source     (drains,
                                                              The RMA     was thesewers,
                                                                                    first legislation internation
                                                                                                                              reform to meet its environmental is an empirical element.goals.
                                                                                                                                                                                           The
                                                                                                                    ally to enshrine the conc
                                                                                                                                                ept of
    launch of the report’s findings late last   wastewater outlets)          pollution
                                                              sustainability in its overr
                                                                                                 into
                                                                                             iding  purporivers,
                                                                                                           se which is ‘to promote
                                                                                                                                       the sustainable
                                                                                                                                                               critical issue really is, has
                                                                                                                                                                                             the RMA
                                                              management of natural                                                                            delivered on its environme
    month.                                      lakes and maritime         environments.
                                                              of the Act rema
                                                                                            and physical resources’
                                                                                                                        . Now in its 25th year, the
                                                                                                                                                     profile
                                                                                                                                                                       CONTINUED on
                                                                                                                                                               goals and
                                                                                                                                                                                             ntal pg28
                                                                                 ins high amongst observers                                                                                                                                                        if not, why not? This
                                                                                                               of environmental and econ
                                                                    management and it is highl                                             omic                                                                                                         is the key question that
                                                                                               y visible compared with                                                                                                                                                           this
                                                                                                                       other legislation. Often
                                                                                                                                                                                                                                                        report seeks to answer.

                                                                   EvAluATINg ThE ENvIRON
                                                                                          MENTAl OuTcOMES Of
                                                                   A REpORT by ThE ENvIRON                    ThE RMA
                                                                                           MENTAl DEfENcE SOcIETy
                                                                   JuNE 2016

8    BusinessPlus October 2016
BUSINESSPLUS - New Zealand Manuka ...
“We have skills shortages despite bringing in many
skilled migrants basically because our economy                                BusinessNZ COMMENTARY
keeps growing. The shortages are a by-product of                                                 By Kirk Hope
economic growth - surely a good thing.”

We need people with
skills and work visas
Migration is in the news at present. We      of your city or town are students             We have skills shortages despite bringing
hear concerns about large numbers of         paying fees to New Zealand education          in many skilled migrants basically because
immigrants, especially in Auckland, and      organisations, accommodation                  our economy keeps growing. The
about the fact that many low-skilled         providers and host families.                  shortages are a by-product of economic
people are getting work visas.                                                             growth - surely a good thing.
                                             Temporary migrants also come as
These concerns have a lot to do with         working holiday-makers. This is another       The issue of low-skilled migrants
business.                                    large group, of mostly young people           displacing low-skilled New Zealanders is
                                             from Europe, the US and other places.         not such a good story.
The numbers need to be seen in context.      They fill skill gaps in many parts of the
Globally, temporary migration is not         country, for example, the Christchurch        Employers are commonly seeking
out of the ordinary. Just about every        rebuild and Queenstown’s hospitality          employees who are available where the
developed country is seeing rapid            scene rely heavily on these workers.          job is located, who have a driver’s licence,
growth in migrants because people                                                          are drug-free and have a positive attitude
worldwide are more mobile and many           Then there are people on essential skills     to work. Unfortunately it can be hard to
economies are in a state of flux.            work visas, employed in New Zealand           find such employees in New Zealand, and
                                             with skills that are in short supply – or     a migrant on a work visa can be a better
In New Zealand the rise in immigration       not.                                          option.
is not out of the ordinary either. New
Zealand has always been a country of         Addressing concerns                           What should we do about these issues?
high inflows and outflows of people,         There are two concerns being voiced           There’s no shortage of things we can do
often on a cyclical basis – only a few       around these.                                 to improve the delivery of skills into the
years ago there was huge concern about                                                     economy.
a brain drain and exodus.                    The first is that many visa holders don’t
                                             have the right skills to address our          We should keep improving the targeting
The immigration effect is more               shortages of high-level skills – in trades,   of skills by Immigration NZ and make it
noticeable in major cities because           technical areas and so on.                    easier and faster to get in-demand skills
that’s where migrants tend to go, and                                                      onto Immigration NZ’s skills shortage lists.
Auckland’s growing pains are similar to      The second concern is that many
what’s happening in many other large         visa holders are low-skilled and are          We should work towards getting a more
cities in the world.                         displacing low-skilled New Zealanders in      responsive education and training system
                                             a number of occupations.                      to produce more of the skills we need.
Immigration is not a simple,
undifferentiated pipeline; there are         It’s suggested that our immigration           We should reduce the requirements on
several ways temporary migrants come         system could address both issues by           small businesses when seeking to hire a
here.                                        better targeting important skill needs.       worker from overseas.

First, they come as tourists. Tourism is a   Immigration does need to provide us           We should investigate how to address
major earner for New Zealand, making         with skills to drive quality economic         “willingness to work” issues.
us over $10 billion a year and many          growth, while helping businesses
temporary migrants are simply tourists.      manage the transition up the value            What we shouldn’t do is clamp down on
                                             chain.                                        temporary migrants coming here on work
They also come as students. Export                                                         visas, because for many reasons in many
education (schooling overseas students       While the immigration system could be         workplaces we need them.
here) is another major industry, earning     improved – and business would like to
us about $3 billion a year. Many young       see some changes – the issues aren’t          • Kirk Hope is chief executive of
people you might see on the streets          just about immigration.                       BusinessNZ. Visit www.businessnz.org.nz

                                                                                                              BusinessPlus October 2016   9
BUSINESSPLUS - New Zealand Manuka ...
COMMENTARY

     Tapping into global expertise
     Read how Callaghan Innovation helped                                                            “Engaging with this expert gave us
     Methven get the international design                                                            answers to our questions, led to a far
     expertise it needed, without it leaving the                                                     greater knowledge of the topic at
     country.                                                                                        hand, and brought out valuable new
                                                                                                     knowledge in other associated areas.
     Methven is a market-leading designer and
     manufacturer of showers, taps and valves.                                                       “The value for us lies in both the quality
     It is an international business operating                                                       and the speed of knowledge gained,
     in New Zealand, Australia, China, the UK,                                                       without our allocating any significant
     Europe and the Middle East.                                                                     internal resources.

     Methven celebrates 130 years of innovation                                                      “This has saved us two to three months
     in 2016 and has recently set out plans to                                                       by greatly reducing the need for in-
     grow the business to $130 million revenue                                                       house research and identifying technical
     by June 2018.                                                                                   risks early on.”

     In November 2015 Methven approached                                                             Methven was awarded a Callaghan
     Callaghan Innovation for assistance                                                             Innovation Growth Grant, co-funding the
     with a project: the company was                                                                 company $3-5 million over a maximum
     investigating new technology to be used in                                                      period of five years, to increase its
     manufacturing its products and engaged                                                          investment in research and development
     Callaghan Innovation’s Global Expert                                                            (R&D).
     programme, which enabled them to speed
     up their development cycle and get to                                                           According to Methven Group chief
     market faster.                                 decisions about future manufacturing             executive David Banfield, investment
                                                    processes which can be applied to many           in R&D is critical for Methven to deliver
     Callaghan Innovation, through its              different processes, ensuring that Methven       more ground-breaking products that
     international networks, was able to find a     would remain innovative in the industry.         drive value for the business and its
     technology expert who was the perfect                                                           shareholders.
     fit: someone with the right balance            Methven’s senior technology development
     of technical knowledge and industry            engineer, Stephen McCutcheon, says,              • Callaghan Innovation is the
     experience who was able to recommend           “The Global Expert service allowed us to         Government’s agency aiming to help
     the best options to Methven.                   access specialist technical expertise quickly    New Zealand businesses succeed
                                                    and effectively, with minimal time and           through technology. Visit www.
     This enabled Methven to make informed          resources expended.                              callaghaninnovation.govt.nz

           How well does this magazine
           keep you informed?
           It’s a year since we made some changes     appreciate your taking a few minutes to       in New Zealand and emailed to
           to EMA’s monthly, free magazine for        answer the multiple-choice questions.         members in Australia, as part of your
           members, BusinessPlus, which you are                                                     annual membership subscription.
           reading right now.                         Our reason for the survey is to ensure
                                                      the magazine is providing a genuine           Thanks in anticipation of your reply
           So this month, I hope you don’t mind       member benefit.                               when you receive the survey.
           that we will email you a brief survey
           to gauge your views of it. I would         BusinessPlus is posted to EMA members         – Mary MacKinven, BusinessPlus editor

10    BusinessPlus October 2016
COMMENTARY
   “We like to say we roll out the red
                                                                                               By Aileen Lawrie
   carpet rather than the red tape!”

Opotiki – more than farms and shops
Recent economic statistics from the eastern     beaches, a slower pace of life and a real     relations, and Alan McDonald, policy
Bay of Plenty back up what many locals          community feel. And as a Council we are       director, recently travelled to Ōpōtiki to get
have known for a long time – Ōpōtiki is the     working hard to make it as attractive to      a better sense of issues facing members in
place to live, work and play.                   businesses as it clearly is to individuals.   regional New Zealand.
                                                We like to say that we roll out the red
Recent indicators show growth across the        carpet rather than the red tape!              Aileen says, “That visit was an opportunity
primary and manufacturing sectors across                                                      to raise awareness of the on-the-ground
Ōpōtiki, Whakatāne and Kawerau, which                                                         issues for those in the regions, and it
                                                  “Online consumption
is matched with strong growth in incomes                                                      was a great opportunity to show off the
                                                  means that even more
and spending across sectors.                                                                  businesses doing well such as NZ Mānuka
                                                  businesses can base                         and OPAC.
The chief executive of Ōpōtiki District           themselves in the places
Council, Aileen Lawrie, says the numbers          they choose, rather than                    “I think people are often surprised at the
reflect the excitement in businesses across       the places that cities                      range of industries we have here in town,
a wide range of industries.                       choose for them.”                           and the opportunities that just abound
                                                                                              here.
She says, “We have a booming local              “But the formula for making that work
economy in growth industries like kiwifruit     is largely our size – we are a very small     “Gone are the days when regional New
and the dairy and farming sectors. But we       council so the planners know the              Zealand was just famers and shop owners
have a wide variety of other sectors that       consents team and they know the asset         – there are opportunities for businesses of
also offer fantastic opportunities in the       people and the people who are planning        all sizes. Online consumption means that
district.                                       our infrastructure. We are small enough       even more businesses can base themselves
                                                to talk and still make things work in a       in the places they choose, rather than the
“Mānuka products and honey are                  practical sense rather than get caught in     places that cities choose for them. And who
spreading wealth into smaller communities       red tape.”                                    wouldn’t choose to live in a place like this?!”
up the East Coast. Agar is an unusual but
growing local industry. Tourism is growing      EMA’s staff Mark Champion, general            • Aileen Lawrie is chief executive of Opotiki
rapidly as well, with visitor nights up more    manager of advocacy and gvernment             District Council. Visit www.odc.govt.nz
than 7 per cent in the last year driven by
attractions like the Mōtū Trails.

“The high-profile Ōpōtiki Harbour
redevelopment will see a local harbour
built to service a marine farm operating
just 8km off the Ōpōtiki shoreline. The
infrastructure we are building will allow the
mussels from that aquaculture venture to
be processed right here in Ōpōtiki.

“We are already well underway planning
for the workforce needs for that industry
and the associated research, education,
infrastructure, services and skills that the
industry will need.”

Most locals and visitors can see the
attractiveness of living and working in
Ōpōtiki, with its beaches, bush, rivers and a
busy, historic main centre.
                                                A conceptual image of the Opotiki Harbour development with
“Ōpōtiki is incredibly attractive to people –   marina and revived town area (January 2016).

                                                                                                                  BusinessPlus October 2016     11
@
       en                   Mayoral candidates’ debate
     Se                     - Auckland

     Raewyn Brajkovich, Viv Beck and Fiona    John King [EMA life member] and Rob        Kate Marsh [Auckland Council] and Shane
     Johnston [Heart of the City]             Young [Platform 1]                         McMahon [NZ Bus]

     Steve McCrone [Cornwall Strategic] and   Chris Farhi [Colliers International] and   Susan Warren [Comet Auckland] and
     Raveen Jaduram [Watercare]               Dan Boyd [Heart of the City]               Margaret Brown [EMA board]

     David Vinsen [Imported Motor Vehicle     Adre Hodgskin [Architex NZ] and Victor     Stuart Stitt, Tracey-Lee Wood and David
     Industry Association] and Regan Hall     Yukich [Eurotec]                           Bodenham [Fujitsu NZ]
     [Heart of the City]

     Colleen Stairmand [EMA board] and        Liz Thomas and David Jack [EMA board]      Jeremy Hall [Ministry of Foreign Affairs
     Verity Craft [Intelligent Ink]                                                      + Trade] and Paul Sullivan [Cornwall
                                                                                         Strategic]

12   BusinessPlus October 2016
“Yet manufacturing is an unsung hero, and its
importance is not widely recognised. This is despite                                           COMMENTARY
the fact that it employs quarter of a million New                                              By Catherine Beard
Zealanders, contributes $12 billion in wages, and
earns billions in export revenue every year. “

Manufacturing driving NZ’s
economic growth
New Zealand’s positive growth story            manufacturing’s share has now stabilised          Both those trends – part-outsourcing and
continues, with the latest GDP figures         at a more realistic 11 per cent, similar to       global supply chains – reflect our more
confirming that the economy is growing         that of many other developed countries.           connected, mobile world. They don’t mean
solidly.                                       The international index (the PMI) which           we’re losing manufacturing to “overseas”.
                                               measures manufacturing sectors around the         Instead, we are creating products in new
Even more positive is the role that            world shows New Zealand manufacturing             ways, making more from our creativity
manufacturing is playing in this. The          has had an almost unbroken run of                 and design with the use of new global
latest Economic Survey of Manufacturing        expansion since the Global Financial Crisis.      efficiencies.
from Statistics NZ shows very strong
growth in the manufacturing sector, with       Manufacturing is not a sunset industry – it       Myth #4: The future is in
manufacturing for the construction sector      is stable and growing.                            services, not manufacturing
growing 9.5 per cent and meat and dairy                                                          The service industry is growing all around the
product manufacturing growing by 8.6 per       Myth #2: Food manufacturing                       world. As countries become richer and more
cent over the last quarter (to June).          isn’t real manufacturing                          developed, their consumers spend more
                                               There’s a common belief that “hard”               on services – information, entertainment,
These are outstanding results, and are         manufacturing is what matters, eg,                financial and many other kinds of services.
obviously part of the driver for current       machinery, equipment, cars, metal-based
GDP growth - manufacturing is having a         products, engineered components and               But the growth of services doesn’t mean
huge impact on how well the New Zealand        widgets; and that “soft” manufacturing            the end of manufacturing. In fact, what is
economy fares.                                 such as bio-based, chemical, nutraceutical,       happening is that manufacturing and services
                                               food or beverage manufacturing isn’t really       are morphing into each other, especially at
Yet manufacturing is an unsung hero, and       manufacturing at all.                             more sophisticated levels. High level services
its importance is not widely recognised.                                                         – legal, financial, accounting, marketing,
This is despite the fact that it employs       This belief is wrong, because manufacturing       computing, etc – are increasingly part of
quarter of a million New Zealanders,           is a diverse activity that includes all those     the makeup of sophisticated manufactured
contributes $12 billion in wages, and earns    categories and many more. In New Zealand          products. And it’s becoming harder to
billions in export revenue every year.         our climate and abundant natural resources        say whether software, a critical part of
                                               make food manufacturing a good strategic          manufacturing, is even a product or a service.
I believe there are a lot of misconceptions    choice. This doesn’t mean we don’t excel in
about manufacturing, and four myths in         “hard” manufacturing – we do. But we have         It’s truer to say that the future is in
particular mean manufacturing doesn’t          particular strengths in food manufacturing,       manufacturing and services.
earn the credit it deserves. These myths       and are on a journey to turn even more of our
need busting:                                  unprocessed food exports into manufactured        Examining these four myths reveals some
                                               food products to reap higher revenues. Food       important truths about New Zealand
Myth #1: Manufacturing                         manufacturing is real manufacturing and it        manufacturing: it’s strategic, it’s broad-
is a sunset industry                           earns us billions every year.                     based including both food and non-food
The myth of manufacturing’s decline                                                              manufacturing, it’s well integrated in the
harks back to a previous age when              Myth #3: It’s all made                            global economy, it’s based on the ingenuity
manufacturing was a more dominant              overseas anyway                                   and creativity that New Zealand is famous for,
sector of the economy - but only because       These days New Zealand firms often                and it’s bringing economic growth.
it was heavily protected. Before 1984          outsource parts of the manufacturing
manufacturing made up around 40 per            process to other countries where                  The true story of manufacturing in New
cent of the economy, however, this was         efficiencies in scale and labour costs can        Zealand is great news.
artificially high because tariffs and import   help their competitiveness. They also
regulations protected New Zealand goods        increasingly take part in global supply           • Catherine Beard is executive director
against competition.                           chains, contributing components towards           of ManufacturingNZ, a brand of
                                               finished products that may be made up of          BusinessNZ.
In today’s less regulated economy,             components from many parts of the world.          Visit www.manufacturingnz.org.nz

                                                                                                                       BusinessPlus October 2016   13
EMPLOYMENT
                                  By David Shannon
                                                                 “…the key is choosing the right type of employment
                                                                 agreement from the beginning – and putting it in writing.”

     Avoiding employment traps
     with employment agreements
     Employers, envision this nightmare scenario.     Briefly, they differ as follows:                  • Remuneration to be provided,
                                                                                                        • Options for resolving any employment
     The manager of a small firm, George, is          • A Permanent Employee is employed                  relationship issues,
     approached by his neighbour’s son, Mike,         for an indefinite period – either full time       • Reference to “time and a half” if the
     who is looking for work and says he is open      or part time. Employment will consist of            employee is working public holidays,
     to anything.                                     regular, predictable work patterns until the      • An Employment Protection Provision in
                                                      employee resigns or is dismissed. Provision         the event of sale [of the business], transfer
     George says, “Sure, Mike, come down to the       for annual holiday pay and sick and                 or contracting out, and
     plant and I’ll put you to work.”                 bereavement leave, as well as an agreed           • A Restraint of Trade provision, if applicable.
                                                      notice period, must be specified.
     So Mike arrives, and George sets him to                                                            Other clauses that may be included, but
     general cleaning tasks. Mike works diligently    • A Fixed Term Employee agrees to                 carefully written, could provide for:
     and satisfactorily for three solid weeks.        temporary employment, which ends upon             • Deductions from wages for “reasonable
                                                      expiry of a fixed term, ie, on a date, or after      cause”,
     Once the plant is tidy, George says,             a period or event. Such employment must           • Prohibition on other employment if there
     “Thanks, Mike, here is your pay. But we          be based on “genuine reasons based on                is a genuine reason, and/or
     won’t be needing you anymore.”                   reasonable grounds.”                              • Trial period of employment if relevant.
                                                      The agreement must state how and why the
     Here comes George’s nightmare.                   employment will end. Seasonal employment          One of the hot issues in employment is the
                                                      is the most common example of this, as            inclusion of “zero hours” arrangements in
     Mike replies: “Thanks for the pay, but you       there are specific agreed criteria for ending     contracts, whereby the employer does not
     can’t just kick me out. You employed me          the employment, but the agreement must            guarantee specific hours of work in a week,
     indefinitely, so I am a permanent employee       specify carefully the criteria.                   but may expect the employee to be available
     and you will have to give me proper notice of    At the end of the term, the employment must       for any period up to the full work week. Such
     dismissal. I did not agree to any temporary or   end or a new agreement must be signed.            clauses must have genuine reasons for the
     casual employment arrangement.                                                                     availability provision and include guaranteed
                                                      • A Casual Employee has no guarantee              hours of employment. Reasonable
     “You also owe me time and a half for working     of work from one week to the next, but            compensation must also be paid for the hours
     Sunday – a public holiday – and I want           is engaged “as and when needed”. This             of availability that are not actually worked.
     compensation for the leave I did not get.”       is typically useful when the employee is
                                                      needed for a short period for a specific          However, there are consequences if the
     Mike is correct: if the employer does not        purpose, such as Mike’s cleaning work.            employer gets it wrong.
     specify the nature and conditions of             This can mean an irregular work pattern,
     employment, the employee has the right           depending on the work demands and the             It is usually difficult to get an agreement
     to assume he/she is being taken on as a          employee’s availability.                          signed after the employee starts, as all kinds
     full-time, permanent employee with all the       It is important to monitor the work to            of issues and objections can be raised.
     rights that adhere to that condition.            ensure it does not evolve into a part-time,
                                                      permanent arrangement with an ongoing             There are penalties running into thousands
     The key to avoiding George’s nightmare is        expectation of work. Such a situation is          of dollars for an employer who fails to have
     choosing the correct type of employment          often better served with a short, fixed-term      an employment agreement in place.
     agreement from the beginning – and               agreement as described above.
     putting it in writing.                                                                             And a final word of advice: do not take this
                                                      Employment agreements                             article as an authority for drawing up an
     Employment types                                 At a minimum, an effective employment             employment agreement. Refer to your EMA
     There are three basic types of employment:       agreement should include the following:           employment lawyer to ensure you get it right.
     permanent, fixed term or casual. Each has        • Names of the parties,
     different terms and conditions, including        • Description of the work to be performed,        • David Shannon is EMA’s remuneration
     entitlements for holidays and other leave.       • Location and hours of work,                     consultant. Email advice@ema.co.nz

14    BusinessPlus October 2016
“Our workplaces are our most up-to-date
classrooms, and employers are making a                                                           EMPLOYMENT
huge contribution to the development and                                                        By Michael Burgess
deployment of skills in our workforce.”

Apprenticeships making a comeback in NZ
Consolidation in the provision of trades
training in New Zealand has seen the
number of industry training organisations
(ITOs) reduce from 42 to 11 in recent years.
But trainee numbers are growing.

These registered, but industry-owned ITOs
include the Boating Industries Association
of New Zealand Incorporated, the Building
and Construction Industry Training
Organisation and Competenz Trust. They
are responsible for:
•    setting national skill standards for
     their industry,
                                                  After a drop in hiring industry trainees and apprentices around
•    providing information and advice to
                                                  the GFC, employment is on the increase.
     trainees and their employers,
•    arranging for the delivery of on- and
     off-job training (including developing    per cent of the tertiary budget for tuition       engineering professionals (11 per cent).
     training packages for employers),         subsidies ($1.100m), as well as more than
•    arranging for the assessment of           $800m each year in student loans and              Auckland has the largest construction
     trainees, and                             allowances, according to the Industry             workforce requirements in New Zealand,
•    arranging the monitoring of quality       Training Federation (ITF).                        requiring about 185,000 employees by
     training.                                                                                   2021. Occupations that are expected to
                                               But as ITF chief executive Josh Williams          experience the largest levels of growth
Today, 138,000 industry trainees and           says, “New Zealand needs skilled workers          include project builders (39 per cent),
apprentices are being supported to learn       to meet the pace of technological change          plumbers (38 per cent) and carpenters
on the job, receiving just 7 per cent of the   and keep up with global challenges.               and joiners (34 per cent), according to the
tertiary budget, or $180 million. These        Our workplaces are our most up-to-date            report Future Demand for Construction
learners are employed, are paying tax and      classrooms, and employers are making a            Workers in July 2016 from the Ministry of
are economically active. They earn while       huge contribution to the development and          Business, Innovation and Employment.
they learn, and do not require study and       deployment of skills in our workforce.”
living subsidies through student allowances,                                                     A recent survey* of employers in the UK
or attract debt through student loans.         The New Zealand apprenticeship system is          highlighted the following benefits from
                                               now open to all age groups. In 2015 there         hiring apprentices:
The last official count showed almost          was a 17 per cent increase in those aged
42,000 people in the New Zealand               over 35, reaching 4,650 apprentices; and a        Benefits of hiring                                  Agree
Apprenticeships scheme - representing a        25 per cent increase in those aged 55-plus.       apprentices                                           (%)
slightly higher proportion of the workforce                                                      Improved product or service quality                      72
than apprentices did in 1987 when the          The Government’s 2016 Budget will help            Improved productivity                                    68
apprenticeships scheme began to take a         support another 5,500 apprentices into            Improved staff morale                                    67
dive in line with growing unemployment         training on the job by 2020.                      Improved staff retention                                 60
after the share market crash, among other                                                        Improved ability to attract good staff                   55
factors.                                       Construction-related                              Brought new ideas to the organisation                    54
                                               apprentices in demand                             Improved image in the sector                             49
Apprentices gain a Level 4 national            Across New Zealand, demand in                     Won business                                             24
certificate after two to four years combined   construction-related occupations has been         Lowered overall wage bill                                19
work and study.                                projected to increase by 10 per cent or 49,000    *(Source: UK Department for Business, Innovation and Skills)
                                               employees by 2021, to a total of 539,500.
There are almost as many industry trainees     Occupations that are expected to experience       • Michael Burgess is a senior policy
as there are university students, but the      the largest growth include electricians (14       analyst at EMA.
146,000 university students absorb 53          per cent), plumbers (13 per cent) and civil       Email michael.burgess@ema.co.nz

                                                                                                                          BusinessPlus October 2016             15
Employment CHAT

     Coping with health and safety, underpayi
     Q. I’m dismayed that my managers are
                                                     “We also have a new health                         Dear Elliott
     not taking health and safety as seriously                                                          There was a law change last year
                                                     and safety training game
     as they should. How can I drive home the                                                           specifically designed to manage the
     importance of the new law requiring us all
                                                     called WorkplaceSIM that’s                         exploitative employment practices around
     to be proactive about these matters? - Dan      done online.”                                      immigrants, ensuring they are employed
                                                                                                        with the minimum legal employment
     Dear Dan                                      Repeat as often as you need to, that                 standards such as the minimum wage, five
     The quick answer is to send them to a         employers – owners and managers- have                days paid sick leave and four weeks paid
     training programme here at the EMA            a responsibility to protect people from              annual leave for full time workers. Also
     Learning centre in Auckland – some            harm caused by workplace hazards. This is            because of the kind of thing you are talking
     programmes are also held in other centres     not just a concern for the heavy industrial          about.
     or as one-off webinars, or online courses.    sectors; even small office enterprises can
     We also run tertiary courses resulting in     have health and safety risks that could              That’s the Immigration Amendment Act
     NZQA-approved certificates and a diploma.     result in prosecution if neglected, or worse,        (No 2) 2015, which imposes up to seven
                                                   cause harm to staff or customers if ignored.         years in jail for exploitation of migrant
     We also have a new health and safety                                                               workers or fines of up to $100,000.
     training game called WorkplaceSIM that’s      It might be that a new clause needs to be            Employers here on residence visas who
     done online.                                  added to their employment agreements                 exploit migrant workers could be deported
                                                   and those agreements re-signed and re-               if offences are committed within 10 years of
     Whether you want to know how to run           printed for both parties. Call our AdviceLine        their gaining residence.
     an effective health and safety committee,     to find your local EMA employment
     conduct an ACC audit, identify and report     relations consultants to get help in                 Tougher search powers were extended to
     hazards or gain a better understanding of     drafting that clause. You can incorporate            immigration officers to enter employers’
     your legislative requirements, we have a      measurements and consequences for                    premises.
     programme to suit you.                        failure to adhere to health and safety
                                                   practices that are required.                         Furthermore, this year the Government
     A separate or simultaneous approach is                                                             toughened the sanctions against
     to make prominent all company policies        Q. How will I compete with migrant                   employers for breaching minimum
     relating to health and safety, and make the   employers who are underpaying migrant                employment standards. These include
     topic top of the agenda at team and other     workers? Can I complain about the                    the possible banning of individuals from
     meetings, to rub it in.                       treatment of migrant workers? – Elliott              being a manager for serious breaches or

                     H E BEST
         E T EST T        YOU
                                                         OUR VERY POPULAR
        W          . FO R                                EMPLOYER GUIDE SERIES
                ..
                                                         ISVERY
                                                        OUR NOW    EVEN BETTER.
                                                                POPULAR
                                                        EMPLOYER GUIDE SERIES
                                                        IS NOW EVEN BETTER.

                                                                 A VALUABLE EMPLOYMENT RESOURCE KIT FOR PAYROLL, HUMAN RESOURC
                                                            A VALUABLE EMPLOYMENT RESOURCE KIT FOR PAYROLL, HUMAN RESOURCES,
                                                                  EMPLOYMENT
                                                            EMPLOYMENT               RELATIONS
                                                                        RELATIONS PRACTITIONERS,      PRACTITIONERS,
                                                                                                 AND THOSE                  AND THOSE
                                                                                                               NEW TO STAFF MAN
                                                                                                           NEW TO STAFF MANAGEMENT.
                                                            OUR SUBJECT
                                                                 OUR RELATED GUIDES
                                                                        SUBJECT     ARE UPDATEDGUIDES
                                                                                  RELATED       AND AVAILABLE
                                                                                                          ARE NOW!
                                                                                                                UPDATED         AND AVAILABLE NOW!
                                                              Discipline and Termination     Payroll Essentials           ACC
                                                              Diversity Discipline and     Termination
                                                                                             Leave Entitlements        Payroll
                                                                                                                          UnionsEssentials
                                                              Health and Safety              Drug Testing                 Recruitment
                                                              Employees Diversity
                                                                          and Technology     Harassment and Bullying   Leave   Entitlements
                                                                                                                          Privacy
              Call 09 966 74 74                                      Health and Safety                                 Drug Testing
       www.horizonrecruitment.co.nz                                  Employees and Technology                          Harassment and Bullying
                                                        ORDER ONLINE WWW.EMASHOP.CO.NZ

                                                            ORDER ONLINE WWW.EMASHOP.CO.NZ
16    BusinessPlus October 2016
Employment CHAT

ing competitors and public holiday pay
      exploitation of migrant workers.                                                            Sunday without their being required
                                                       “You decide if it’s worth
                                                                                                  to give a reason.
                                                       it for your brand and
      If you witness or have good reason to
      suspect problems, you can complain to
                                                       in relation to your                        They will also be able to take a personal
      the government agency, Immigration New           competitors.”                              grievance if they are treated adversely
      Zealand or the Labour Inspectorate at                                                       or compelled to work on Easter Sunday.
      the Ministry of Business, Innovation and       Remember to alter or create new
      Employment, whose Labour Inspectors            employment agreements to reflect             • By the EMA communications team
      make sure that workplaces meet at least        this.                                        in consultation with EMA Advice,
      the minimum standards and requirements                                                      and loosely based on real calls to
      of employment law. Or even the police.         Yes there is a cost with growth, or          EMA’s AdviceLine. All names are
                                                     selling more. You decide if it’s worth it    fictional.
      Other than that, you have to rely on the       for your brand and in relation to your
      usual practices to compete in business…        competitors.                                 The information in this article is a
      like having a good product/service, good                                                    guide only and not to be used as
      pricing/margins, great branding and            Shops have been able to trade on some        business advice without further
      communication including your website,          public holidays for a long time – except     consultation.
      great customer service, strictly managed       for Easter Friday, Easter Sunday and
      terms of trade, cash flow…not to mention       Christmas Day and the morning of             EMA members can start with our free
      good people!                                   ANZAC Day. You will be referring to the      AdviceLine team at phone 09-367
                                                     recent law change allowing shops to          0909 or 0800 300 362 (within New
      Q. Now that we can open shop on public         trade on Easter Sunday, as long as your      Zealand), and 1800 300 362 (from
      holidays, this will make leave and rostering   local territorial authority allows it.       Australia), 8am-8pm weekdays NZ
      more complex. Will I have to pay more to                                                    time; or email advice@ema.co.nz
      attract people to work on those days? – Rose   Recent legislation allows territorial
                                                     authorities to put in place local policies   You can also find information at
      Dear Rose                                      that will permit shops within their area,    www.ema.co.nz such as the A-Z of
      Yes, when people work on statutory             or parts of it, to trade on Easter Sunday.   Employing – a manager’s guide on
      (public) holidays you have to pay them time                                                 more than 100 specific employment
      and a half to meet minimum employment          The law also gives all shop employees        topics, or the detailed Employer
      standards.                                     the right to refuse to work on Easter        Guides on 12 popular topics.

                  0800 223 729
                        0800       www.acepay.co.nz
                             223 729  www.acepay.co.nz
                                    0800
                                   0800 223223
                                            729729 www.acepay.co.nz
                                                     www.acepay.co.nz
 PayrollAce Payroll 0800 223 729                             www.acepay.co.nz
      AceforPayroll
       Ace    Payroll
              New Zealand
New forZealand
           New    Zealand
                                       Try it for free
                           Try it for free
     Acefor  New Zealand T r y iTt rfyo ri tf rfeoer f r e e
         employers.
            Payroll
ployers.
      employers.
        employers.
      for  New Zealand                 Try it for free
            Take control on pay day with easy low
      employers.
         Take
ke control oncontrol
          cost       on and
               pay day
               software  pay day with
                         withgreat
                               easy   easy
                                    low
                                   help    lowsupport.
                                        desk
       costandTake control on pay day with easy low
            software
 software       greatand
         cost software
                         great helpsupport.
                      help
                       and desk
                                    desk support.
                            great help desk support.
        Take control on pay day with easy low
       cost software and great help desk support.

                                                                                                                    BusinessPlus October 2016   17
You can also read