QT BUSINESS - Issue 14 - November 2021 Women in Business Series Wānaka-based, Anne Urlwin Governing in a Pandemic - Lakes Weekly Bulletin
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QT BUSINESS
Women in Business Series
Wānaka-based, Anne Urlwin
Governing in a Pandemic
Issue 14 – November 2021
9th November 2021 | Issue 14
QT BUSINESS
Kiwi finance firm for
Sponsored content
Kiwi businesses
by Paul Taylor
Tightening restrictions around how banks lend
to businesses has opened the door for a new
Queenstown-based investment business.
Paul Carman founded Private Capital Group
about two years ago, returning to New Zealand
after 25 years working in London for Japanese
mega-bank Mizuho.
The private debt management and equity
investment firm intends to operate in the space
created by the ding-dong between the Reserve
Bank of New Zealand and the country’s four
major banks, all Australian owned.
RBNZ has increased the ratio of capital banks
must keep in reserve, which has made them
more selective about which companies they lend Private Capital Group founder and CEO Paul Carman
money to.
Carman says that’s something he’s seen play out
investment officer John Ferrara, another former this is our home, our base, and we want to see it
across the world in the past decade, as regulators
Mizuho corporate alumni and more recently thrive.
have increased the capital requirements for banks
ASB, and chief governance officer Luke Ryan,
post-GFC. Carman says Queenstown allows the
who’d worked in the USA, Australia and Europe,
“In the States, 20 years ago almost all lending was and for Graeme Hart’s Rank Group.
PCG to express its difference from
provided by banks,” he says. what has been a fairly cookie-cutter
The PCG team has spent the past two years
“Today, 80% of the lending to what the market type market historically in NZ.
speaking to off-shore and NZ investors, the
refers to as ‘crossover’ or ‘sub-investment grade’, Overseas Investment Office, the IRD, the banks “Rather than expecting companies to pitch
companies perceived as higher risk, is now done themselves, trustees, lawyers and accountants, up and meet us in what’s often an unfamiliar
by Funds, not by banks. setting up the business and a series of investment environment, we want to be able to jump in the
“In the UK it is two-thirds, but in New Zealand structures. truck and go a see a business, see what it does,
it’s a big fat zero. Everything has been done by the how it operates and to more fully understand it.
They’ve recently moved into offices in The
banks.” Mountaineer building and hope to have their “Then we can much better match the finance
PCG plans to help fill the gap as the banks first Fund up and running in Q1 of 2022, Covid and capital we’re providing to what the business
operating in NZ pull back from certain types of permitting. Four other experienced finance actually needs.”
lending. high-flyers are waiting in the wings to relocate
to Queenstown and join the company, once the
It will raise funds from wholesale investors, both
fund completes.
overseas and domestic, and use them, through
a series of managed Funds, to provide loans to Queenstown was chosen as a base to
handpicked Kiwi SMEs and corporates. provide a little distance and allow PCG
“We are Kiwis for Kiwi businesses’” to complement rather that compete
Carman ran the global sponsor and acquisition against the Auckland based banks.
platform for Mizuho, with 150 people in teams “In reality, we’ll be working NZ-wide and
in London, New York, Hong Kong and Sydney. diversified across sectors, helping companies
He was also responsible for managing about with good cashflows and presence in the various
NZ$7 billion of private debt and equity as chief sectors including services, healthcare, tech, some
investment officer of the bank’s third-party agri and a range of others.
fund management business Mizuho Investment “At the same time, we are keen to find ways to
Management Ltd. support the local community and economy.
But the opportunity to be one of the first firms Things like the planned tech hub at Remarkables
serving an NZ market, potentially worth $25 Park, the proximity to Otago University and the
billion, was too good to miss. depth of overseas and domestic experience which
exists in the wider region provides some genuine
After serving a 12-month no compete, he opportunities which we’re interested in because
established PCG and brought on board chief www.privatecapitalgroup.co.nz
QT BUSINESS 9th November 2021 | Issue 14
Fear Factory was already at a ‘skeleton’ staff due
to natural wastage before the first lockdown, and
such was the strength of the domestic market, it
has had to take more staff on. It hasn’t let any go
due to Covid.
“I was ready to pack it in after the first lockdown,
but last July was the busiest we’ve ever had.
“Kiwis have been really good to us, and
I’m really hopeful for 2021. We’re still
around and are not going anywhere,
but we’re in consolidation mode until
they release the Aucklanders.”
Ardern, in a press conference on Saturday,
confirmed Aucklanders will be able to travel
domestically over the summer, at some point.
Close-quarters: Skyline’s Queenstown gondola
That could see ‘My Vaccine Pass’ needed for travel
too, once all DHBs have 90%+ vaccination rates
and the country moves to the traffic light system.
Roll on 2022
by Paul Taylor
McDonald believes even that system could be
temporary protection, while driving people to get
vaccinated.
Queenstown businesses can see the Covid-19 McDonald says Skyline and other businesses will
finish line in sight. also need to work through how it impacts on staff “I’d be very surprised even to see the traffic lights being
in headquarters and other offices, some of whom used beyond Q1 or Q2 of next year, I really would.
But owners, managers and staff have a taxing few
months ahead as they adjust to the complexities regularly visit the customer-facing sites. “Once we’re way up above 90% double vaxxed,
of vaccine passes, the traffic light system and But he’s not expecting much blowback from staff. and international visitors have to be to get in,
changing levels of support from Government, all you’d think the risk would dissipate and we should
“We’ve not been able to check people’s status,
while revenue remains low. be getting back to somewhere near normal.
although I note in this new legislation we will
‘My Vaccine Pass’ will be a QR code people carry have to ask staff... but for Queenstown, our “I hope that is the case because I know a lot of
on their phones, or print out, to be scanned by double vax rate is high, and single is very high, so businesses won’t survive another quarter of this.
places in NZ that require proof of vaccination. if you extrapolate that to the site... Everyone in town knows how bad it is.
Prime Minister Jacinda Ardern has already “I’d imagine there’ll be one of two people we “With Auckland out of the market is has been
confirmed that will include large public need to have a discussion with, to explain the pretty dead. We thought August to December
gatherings, such as festivals and sports events, Government’s proposal. was going to be tough, and it has, it’s been very
hospitality venues including restaurants and bars, very poor.”
“They’ll have a week or so to think that through
and business premises involving close personal but I think a high proportion are double McDonald says Government support cannot
contact. vaccinated.” continue indefinitely and the economy and the
Some other locations are under review, with a full country can’t be “held hostage any longer” by
Simon Smith, co-owner of haunted house
list expected the middle of this month. those reluctant to get vaccinated.
business Fear Factory, is in a similar position.
The need for proof will be attached to a place, “We just need to get on with it, and get opened
All 11 Fear Factory staff, which includes his co-
not an employer, which means it will cover staff, back up, start travelling and trading.”
owner brothers and parents, have already been
customers, contractors, suppliers and anyone vaccinated, without the need for a mandate. Queenstown Chamber of Commerce boss Ruth
who visits a site. Stokes, meanwhile, says the range of businesses
“Lucky for me they were all very enthusiastic,”
Skyline CEO Geoff McDonald says he expects to she’s spoken to welcome the vaccine pass system.
Smith says.
consult with staff this week about the changes. “They appreciate there will be some complexities
Fear Factory would likely fall through the cracks
“I guess everybody in town is having a associated with the implementation, for instance,
of any overview of premises, as it doesn’t serve
bit of a think about where they fall in does that mean they need an extra person to be
food, alcohol or have mass gatherings, but does
monitoring it, but they also know that embracing
terms of the categories,” McDonald says. have close proximity.
that system is the economically sensible thing to do.
“For our sites in Queenstown and Rotorua, the Smith reckons the closest equivalent is a
“It means the return of customers and that is now
gondola access is pretty close quarters and we’ve hairdresser, with limited contact between staff
on the horizon. The end really is in sight.”
a number of staff interacting pretty closely with and customers, although at the moment actors
customers, in hospitality, food and beverage, luge are two metres away. The Chamber continues to push for the early
instruction etc. release of Tourism Kick-Start Fund payments.
“But we’ll just jump through whatever
“So we’re thinking at the moment that will hoops we need to, to make it work. We
include us.” want customers to be comfortable as
Those that are not covered automatically will be well.”
given a framework against which they use to decide
Both Smith and McDonald say the past few
whether they need to require a vaccination pass.
months since lockdown have been tough,
Government is expected to push through although bolstered by Government support.
legislation by December 1, to help protect
“There’s definitely been a huge drop in business
businesses against legal challenges by staff and Chamber boss Ruth Stokes
since not having Auckland around, it does suck.”
customers.
9th November 2021 | Issue 14
QT BUSINESS
Women in Business Series
The Queenstown Chamber of Commerce launched its new ‘Women in
Business Series’ in partnership with Queenstown Airport last week with
the first monthly morning tea.
The new series came about after the success of the annual Chamber’s
Women in Business Conference and the desire to support, empower, and
connect women through a range of events showcasing prominent local
and national business leaders. Chamber of Commerce CEO Ruth Stokes
was delighted that they were able to kick off a series of events designed and
delivered by women, for women, that can provide an opportunity to learn,
laugh, empower and recognise the phenomenal talent among us.
Sara Irvine, GM Corporate and Community Affairs at Queenstown Airport,
said “Last Friday’s event was a great start to the series. It was awesome to
have more than 50 local women come together.”
The guest speaker was Wānaka-based professional director, Anne Urlwin,
who sits on six boards, including Queenstown Airport.
Anne presented her insights and reflections on governing in a pandemic.
Anne joined the board of Queenstown Airport late last year in the midst of
the pandemic. At the time she said to the team that she “was probably the
ultimate mystery shopper over many years with all my travelling in and out
of the airport.”
Anne’s governance experience includes infrastructure, energy, construction,
telecommunications, insurance, health, and financial services.
A few themes emerged as she reflected on her experience over the last 18
months.
“Firstly the 3 Rs of risk, response, and resilience. Before we’d heard much
about Covid-19 I’m not sure many businesses had a pandemic on their risk
register.”
And while Anne believes the 3 Rs are still relevant, she thinks there are 3 Fs
that are becoming particularly so. Fear, fatigue, and frustration. Anne Urlwin
Ultimately, Anne said the experiencing of governing in a pandemic came
down to the importance of people because business is all about people.
Anne’s closing sentiment was one of positivity, that while there are still
A key reflection for Anne was the common challenges across all the many challenges to be faced, she is “confident that the wonderful and
organisations she is involved with, no matter the industry, and that was the supportive community in this region – including those in this room – will
impacts on people and grappling with working from home, stress, burnout, grab opportunities that the “new normal” will bring.”
tiredness, and restructures.
The next Woman in Business Series event is a lunch on Friday 19 November
“Some people have been in crisis mode for 18 months now. Everyone in this with Dame Therese Walsh, Chair of Air New Zealand and ASB, and a board
room is capable of stepping up in a crisis but stepping up and dealing with member of Antarctica New Zealand. She will
one for that long is something different.” speak about her career journey reflecting on
Anne noted the importance of wellbeing and checking in with people, giving some of the challenges, triumphs, and lessons
them the chance to talk about how they were feeling - which isn’t easy over learnt along the way.
a computer screen. She highlighted the importance of asking people what
they needed, recognising we’re all different and respond in different ways
through these difficult times.
For TRUSTED timely
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QT BUSINESS 9th November 2021 | Issue 14
Good Service is THE difference
My garden needed attention with early spring. I The reason for this story is because it demonstrates • Effective Communicator. - be clear, concise,
had bought a number of trees and to protect them the importance of the type, depth and relevance and natural.
from the ravages of the strong southerlies we get, of the service that customers can gets from a • Empathetic – understand how the customer
especially at this time of the year in Queenstown, product or service supplier – in my case it was feels and where they are coming from. Put
I needed some stakes to support them. Due to a superior experience for me – I ended up with yourself in their shoes.
previous experiences, I needed longer ones to what I needed – on time, below budget and with • Basic Acting skills to enable you to be cheerful
properly support young trees in their early years. no hassles. I will be a repeat customer – and I will when a customer is grumpy.
So, started the hunt for 50 treated pine stakes 3 spread the word (referral) – hence this story. This list is not finite – think your business should
metres long. Customer service is a complex, and potentially be doing better? One way to approach the issue
A couple of hours of frustration on various web difficult area for businesspeople – but the is to get in an expert – the best local person in
sites and follow up phone calls, it was clear that rewards for getting it right can be significant and this area is Duncan Ashford owner of Lionheart
nobody supplied stakes longer than 1.8 metres. potentially also life saving for the business. It’s too Consulting, (021 0287 6313) who has heaps of
So, I got onto emailing a variety of contacts- easy to shop online and in store staff should be a experience in international corporates and local
builders who might know subbies or suppliers, key point of difference for your business. There businesses
landscape gardeners, landscape architects who are many different customer service skills that I really hope this helps you and your business –
might have contacts- but all I got was either no need to be addressed and many cannot be trained nothing like a delightful story to add a positive
reply or no leads. So, what now? I jumped in the but they are talents that are identifiable including note to your day.
car (the trees will sequester the exhaust fumes) • Friendly Attitude- there is nothing that beats
and go speak, in person, to local building supply a smile and friendly attitude to help resolve
companies. Well, that was interesting - and was issues.
heading for a clean sweep of disappointment • Active Listener – a person needs to feel
until I made my last call to Building Supplies understood, heard and responded to.
Company – Carters in Glenda Drive. • Able to read customers’ requirements.
I quickly wished I had visited them out the • Adaptability- everyone is different, and issues
outset. 10 minutes after putting my mask on and can vary.
signing in with my QR code I had secured what I • Conflict resolution- this is not easy but
needed. I was introduced to a buyer, she listened essential.
to me, made a phone call, secured the price, and • Creative- be able to be clever and find fun
delivery, offered me a trailer, took a deposit, and ways to go the extra mile.
had me leaving with a big smile under the mask. • Decision making – get and take action
quickly.
I will use Carters in Glenda Drive next time I
• Dependability and Responsibility - staff need 0275 212 728
need a product or service that they have expertise
to be to be trusted and encouraged to resolve robin@martinbusinessconsulting.co.nz
in.
issues. www.martinbusinessconsulting.co.nz
9th November 2021 | Issue 14
QT BUSINESS
Airport running on fumes
by Paul Taylor KEY NUMBERS
Queenstown Real Estate
No of Sales (Sept) Growth (on PY)
64 +6%
No of Sales (6 Months) Growth (on PY)
375 +63%
Days to Sell (Sept) Growth (on PY)
39 +2%
Median Sale price (Sept) Growth (on PY)
$1,000,000 +13%
Source: queenstownrealestate.co.nz The above data relate to all Real
Estate agency transacted urban Residential Sales for the Queenstown
and Arrowtown area. Residential Sales are Houses, Apartments, Units,
Townhouses, Villas and Condos.
QAC chair, Adrienne Young-Cooper, at the opening
of the tans-Tasman bubble back in April NZ Auto Sales
New Commercial Vehicle Sales (Oct) Growth (on PY)
Queenstown Airport Corporation bosses don’t expect trans-Tasman flights 4,775 +33%
to return until at least April next year. New Car Vehicle Sales Growth (on PY)
QAC chair, Adrienne Young-Cooper, in her update to shareholders at the 9,261 +11%
recent AGM, outlined the impact the the loss of international and domestic Source: MIA Motor Industry Association
passengers over the first full Covid financial year.
In FY21, there were 1.33 million passenger movements, down 29%
compared to FY20, and 42% down compared to FY19.
Airport - Passenger Movement
Domestic passenger movements at ZQN were actually up 2%, but
Total (Sept) Growth (on 2020)
international passenger movements were down 96%.
31,549 (100%) -63%
That led to a significant drop in revenue – down 40% to $27.8 million from
Domestic Growth (on PY)
$46.7 million.
31,549 (100%) -63%
And the company’s reported Net Profit After Tax was down 91% to $1.6m
International Growth (on PY)
from $18m the previous financial year.
0 (0%) Prior year was 0
Reopening Auckland and the trans-Tasman is “critical to a Source: Queenstown Airport
sustainable recovery”, Young-Cooper said.
“While there is much conjecture, we hope Auckland flights will return in
time for Christmas,” she said. Situations Vacant
“However, we aren’t expecting trans-Tasman flights to operate to and from
No of Open Roles (Oct) Growth (on PY)
Queenstown until at least April 2022.
404 +18%
“We are of course prepared for an earlier restart of Tasman flights and will
No of Open Roles (YTD) Growth (on PY)
welcome them as soon as the government decides the risks are acceptable.”
3,990 +20%
She was speaking 17 weeks after the Tasman bubble popped, and 10 weeks Source: Jobfix.com
since the last scheduled flight had arrived from Auckland.
COVID-19 vaccinations: Updates as at 11.59pm, 7th October.
Young-Cooper said a big part of the airport’s business “simply
More than 90 per cent of Queenstown residents have had at
does not exist” until the free flow of international travel least one dose of the Covid-19 vaccine.
recommences. And 95% of total revenue is linked to domestic
Vaccination as at 2nd November First dose Second dose
and international passengers.
Southern District HB eligible
Therefore, she said, a key element of QAC’s forward focus will be on the 91% 79%
population %
diversification of revenue sources not directly related to passenger numbers
Total NZ poulation eligible
from scheduled air services, but did not elaborate on what that might be. 89% 77%
population %
Debt increased by $13m to $85m (25% of net assets). That was mainly due Total eligible population
to the $18.3 million payment to Porter Group for the acquisition of the ‘Lot 89% 81%
vaccinated or booked
6’ land adjacent to the main runway.
Queenstown % 95% 88%
Over the year, the priority had been to stabilise the business, safeguard its Arrowtown % 95% 85%
ability to operate vital airport infrastructure, and support the whole airport Lakes Hayes Estate % 93% 83%
community.
Wanaka % 93% 82%
While there had been multiple job losses, and no dividend payments to Kingston % 82% 73%
majority shareholder QLDC and minority Auckland Airport, QAC had not Source Ministry of Health
required an equity contribution from shareholders.
QT BUSINESS 9th November 2021 | Issue 14
The small print
New Aucklander return for Christmas and Aussies early next
year
Pony Up Pre-Loved Designer Boutique
Aucklanders should be in Queenstown before Christmas, Australians here early
Long term local ladies Claire Brinsley and Heidi McLeod are bringing a hot-right- next year, with the rest of the world following on their heels.
now fashion concept to Arrowtown, to fill a gap in the market. Claire and Heidi
are focusing on a different fashion ethos – the buying and selling of pre-owned The Prime Minister Jacinda Ardern confirmed over the weekend that
clothing. Aucklanders will be able to travel outside the region over summer and Christmas
and Chamber of Commerce CEO Ruth Stokes says that’s how Finance Minister
The concept is a simple one–circulating fashion back into the world, so it’s not and Deputy Prime Minister Grant Robertson described the Government’s
wasted. expectations for opening New Zealand’s economy to a Covid world during
Pony Up is selling beautiful, coveted, clothing and accessories, all pre-owned a webinar last Tuesday. Robertson told participants the Government was
and pre-loved, and sometimes never worn. “committed to the international border reopening in the first quarter of next
Launching on Monday 8th December at Dudley’s Cottage, 4 Buckingham Street, year”, while Aucklanders are likely to be out of lockdown before Christmas.
Arrowtown, between Better By Bike and The Dishery
Miller Road Senior Jobs Available
Miller Road Fragrance Studio’s second store has launched in Beach Street,
Smartlife Queenstown
Miller Road is a boutique candle & home fragrance brand, designed and hand
poured in New Zealand. They also run perfumery workshops where attendees Branch Owner/General Manager
can make their very own personalised fragrance. Open now at 45 Beach Street. Smartlife designs, builds, installs, and uniquely programs Automation systems
for homes and businesses. We have developed our own Smartlife App and
www.millerroad.co.nz
controller, and we’re on the cutting edge of what’s possible in the world of
automation technology.
IT Fox We are seeking a Branch Owner/General Manager to join our new Queenstown
IT Fox Solutions opens it Queenstown store for tech and gadget problems. The branch.
Queenstown store is the first in the South Island and 7th in the country. Their We are currently raising capital to fund the next phase of the growth and are
services include but are not limited Desktop, Laptop and Mobile repairs. You interested in talking to people who are keen to run the Queenstown region.
can find them at 43 Shotover Street, opp. Fergburger There is an opportunity to acquire shares and to earn shares as part of the
www.itfoxsolutions.co.nz package.
Interested? email:employment@smartlife.nz or call Rob on 021 500 678 or
Nikhil 021 701 435.
Pushed back
Brecon Street Precinct Renewal
The first stores in the new Brecon Street precinct which were set to open in QLDC maintains low risk status
November have seen their launches pushed back into early 2022. El Camino Queenstown Lakes District Council (QLDC) has maintained its ‘low risk’
Mexican and The Bavarian had commenced their launch advertising with other status following a successful International Accreditation New Zealand (IANZ)
tenancies including chocolate cafe Max Brenner, dessert cafe Gelato and assessment.
10-pin bowling business Kingpin close behind but the launch date was pushed Every two years, councils across New Zealand undertake the assessment,
back at the end of last week. with an assessor and technical experts marking each council against building
Brecon Street Precinct sits between iFLY and Skyline. accreditation regulations.
The assessment and accreditation was necessary for QLDC to issue building
consents, code of compliance certificates, and to continue with building
Social Impact services functions.
QLDC Building Services Manager, Chris English said the outcome of the
Ziptrek Ecotours Donates Over $7500 to Local Mental assessment was a great achievement for Council.
“With only four general non-compliance issues to resolve this year, compared
Wellbeing Charity with 14 in 2019, we’re one of only a few Building Consent Authorities to be
Ziptrek Ecotours is proud to be donating $7725 to the Southern Wellbeing sitting at such an effective level.”
Trust, a culmination of the Queenstown ziplining company’s October IANZ accreditation will be confirmed once the four outstanding general non-
#WellbeingForWhakatipu initiative. compliance issues are resolved.
In what continues to be extremely challenging times for tourism operators,
Ziptrek Ecotours, well-renowned for its award-winning sustainability efforts,
chose to turn its focus to boosting mental health and wellbeing locally, within
the Whakatipu community.
Advertise in QT Business
Contact Advertising Deadlines
03 409 2800 | info@qmg.co.nz Sponsored Content: 12noon Tuesday
Display Advertising: 12noon Thursday
Catherine Mercer - Account Manager | 027 777 2785 | cat@qmg.co.nz
Queenstown Media Group
Kylee Evans - Account Manager | 021 044 2968 | kylee@qmg.co.nz 2nd Floor, The Mountaineer Building
Cnr Beach and Rees Street PO Box 1546, Queenstown
David Gibbs - General Manager | 021 514 072 | davidgibbs@qmg.co.nz
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