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Thymebank tests Work and Income / Cross Lease Titles / Managing Business Performance / Criminal Sanctions ......................

VOICEOF BUSINESS IN MARLBOROUGH

SeptemberOctoberNovember 2014

CHAMBER OF COMMERCE

PA G E 2 Voice

Advertising: Voice is published quarterly, and posted to members and delivered to various business service providers. For advertising rates, deadlines and details contact the Chamber office on 03 577 9575 or enquiries@mcoc.org.nz

Disclaimer:Views expressed by contributors to Voice are not necessarily those of the Marlborough Chamber of Commerce.

Voice

Marlborough Chamber of CommercePO Box 658, BlenheimPhone 03 577 9575enquiries@mcoc.org.nz | www.mcoc.org.nz

Publisher: Deborah Carter8 Penny Street, BlenheimPhone 027 848 0463deborah.carter.va@gmail.com

HAMISH MACFARLANE GENERAL MANAGERMARLBOROUGH CHAMBER OF COMMERCE

Chamber UpdateContents• CHAMBER UPDATE P2

• MARLBOROUGH DISTRICT COUNCIL P3

• THYMEBANK TESTS WORK AND INCOME’S RECRUITMENT SERVICE P4

• BUILDING THE FOUNDATIONS OF A SUCCESSFUL BUSINESS P5

• CROSS LEASE TITLES - PROCEED WITH CAUTION P6

• SPOTTED P8

• ASK THE ACCOUNTANT P9

• MID WINTER CHRISTMAS WITH YOUNG CHAMBER P11

• EVENTS CALENDER P12

• MANAGING BUSINESS PERFORMANCE P14

• CRIMINAL SANCTIONS FOR THOSE INVOLVED IN CARTELS P15

• EMPLOYING RIGHT P16

• MEASURING AND MONITORING BUSINESS SUCCESS P19

• ANTHONY BOWRON, MARLBOROUGH COMMERCIAL MANAGER FOR FMG ADVICE & INSURANCE P20

• MEMBER PROFILES P21

FRONT COVER : PHOTO BY RICHARD BRIGGS

WWW.RICHARDBRIGGSPHOTOGRAPHY.CO.NZ

RICHARD@RICHARDBRIGGSPHOTOGRAPHY.CO.NZ

Official members’ publication of the Marlborough ChamberOf Commerce

The end of year is in sight and as always the Chamber is working to add value to your business. Sometimes this is directly and sometimes it is behind the scenes work that benefits all.

More directly the Chamber has secured another round of business funding from the New Zealand Trade and Industry for distribution in Marlborough. This is for businesses that have less than 50 employees and are owned by an individual or individuals. As well as this R&D Grants are also available through Callaghan Innovation. Please do give us a ring if you want to know more.

Networking, we have a series of excellent lunchtime speakers and “Business after 5” events between now and Christmas. Often who you meet and talk to at occasions like these, make the effort worthwhile. not to mention adding value to your business.

Talking about helping business the below new regulation is refreshing for its simplicity and ease of use.

Raising funds / CapitalThis is something that is worth knowing about. New regulations (crowdfunding) now allow everyday investors to back a New Zealand business in a much easier format.

Through licensed equity crowdfunding platforms, New Zealand companies can now raise up to $2 million in any 12 month period by offering shares to the New Zealand public. If this is of interest please ask and I will give you the information you need.

Colleges – future proofingOne of the most important matters right now for Marlborough is where the new boys and girls colleges are located, assuming, that is, the option of having the two on the same site gets the nod. Ease of getting to school for the majority is one thing and

the other is having enough space for sports grounds on the campus for generations to come. Space can’t be created afterwards so I trust that the decision makers give that good consideration.

Economic Development Agencies – EDAs – this will become a debating point before too long around the country. EDAs are getting more press than they have for several years. Should governments / councils leave it to the private sector or should they intervene by trying to pick winners?

Out of interest in the year ended June 2012 councils spent no less than $252 million on “economic development” activities, up from $188 million the year before.

Quotes to consider for the debate from the late Roger Kerr; local councils should be careful not to get too involved in economic development. Councils have a role in creating an attractive business environment but it should be left to entrepreneurs to establish the business. The main barriers to business growth were tax and regulations which he likened to lead in the saddlebags. Government driven innovation was an oxymoron. While these quotes were made back in 2002 they still have a relevant ring about them.

Should councils and EDAs be funding tourism and business promotion, putting on major events or trying to lure business with special treatment and rate payer’s money? Is this not similar to what individual businesses or industry associations like the Chamber of Commerce are already doing quite well?

Would the ratepayer’s money be better spent on core infrastructure or, dare I say it, returned to the rate payer to spend as they choose.

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ALISTAIR SOWMAN MAYOR

What’s happening with the new library?The District Council is planning to build Blenheim a new Library. The timeframe for this project has yet to be settled but Council has reached agreement in principle to the proposal that this become part of an urban design project for the High Street-Wynen Street area of the CBD.

The new Library will be the town’s next big social infrastructure project.

The decision is a move away from the original idea that we could shift the Library across the road into a refurbished Civic Theatre building once the new theatre opens. That was the thinking under the Council’s Urban Design Strategy agreed in 2009. However that Strategy also stressed the need for redeveloping the CBD to connect it with the river. Councillors have now picked up on the opportunity which has emerged since that Strategy was put together to create a new precinct near the Taylor River with the Library at its heart.

It’s an area of town with some history attached to it, the site of Blenheim’s original river trading settlement so perhaps it may become known as the Wynen Quarter – a discussion for another day.

The possibility of a Rangitane museum-research dimension to the CBD redevelopment is one enormously exciting aspect to consider. This is something we certainly want to explore with Rangitane and the University of Otago. The Wairau Bar Story is an international significant chapter of New Zealand history that has huge potential for Marlborough, not only in cultural terms but for tourism and business, and it could become a very important stage of this overall project.

We know from regular research that the town’s Library is an asset that is highly valued. We also know that modern libraries serve a far wider purpose than simply lending books. ‘Information hub” gives a better clue to their role today. However, the size and scale of this new facility is, as yet, an unknown. But I am sure a staged approach will be necessary because this will be a big multi-dimensional project.

Council has been very clear that it won’t be rushed on this as there are other core infrastructure projects to consider and essential emergency reserves to rebuild after our recent period of natural disasters.

So the CBD project is going to have to be tackled in bite-sized pieces, not as a single project. For example, landscaping and streetscape work may be a first step as that could be accomplished within existing budgets.

The Council has negotiated to secure two properties in Wynen Street which have supporting car parks, handily placed in Wynen Street and in High Street. Further sites may be considered.

Doubtless there will be debate about most aspects of the project. But public feedback during this year’s Annual Plan process was heavily in favour of the overall concept of ‘doing up downtown’ and placing a new library nearer the river. The most consistent objection I have heard related to accessibility for bus patrons but of course we can alter the bus route to deal with that concern. In fact we may ultimately have to reconfigure the roading – but that kind of planning is for the future.

The Civic Theatre would have been the easy option in one sense; there’s an existing building and it would be a less complicated rebuild. But the High Street-Wynen Street site offers the chance for a purpose-built facility which could serve a far broader role.

Of course there will be a public consultation process to bring together ideas about the dimensions and design of a new library-information hub-art gallery. Ambience, accessibility, design and features will all be matters for the planning process.

Christchurch is building an $85M library. Obviously we cannot match that scale but we can create something that is very special to Marlborough – a complex that will be well-used by the widest possible cross-section of people – and an attention-grabbing building which will boost pride in our town.

The future of Queen Street is another issue Council has had to consider in the context of the Library discussion.

We had always assumed that if the old Theatre block wasn’t used for a library-art gallery then it would go over to retail. However we have now seen the degree of interest from new tenants in occupying this site. I hope our decision to revamp and re-let the site will bring more people, more activity into the town – that is also one of the aspirations of Council’s Urban Design Strategy.

Overall, I believe we should look at building something very special in this new riverside precinct; something that will be a destination in its own right. This is our chance to create a building the town can be proud of, something that will stand the test of time and be a real anchor point for our community. So I would rather take the time to get this right than see a quick build.

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Since buying the lettuce herb business Thymebank in June last year, manager Leanne Roberts has not only had an extraordinary bout of mother nature events to deal with, such as earthquake and wind damage, but also needed to cram some quick learning around a completely new business.

So, when Work and Income Employment Coordinator Heather Manners arrived in March to encourage them to choose their new staff from jobseekers registered with Work and Income, Leanne wondered if dealing with a government department might be too complicated and time consuming.

“We listened to what Heather had to say but we didn’t really need any more workers at the time. A week later things changed and we needed two employees to start as soon as possible, so I called her back,” she said.

Leanne cautiously approved using Work and Income’s recruitment service – with some conditions. “We told Heather what sort of people we were looking for, asked her to screen likely candidates, come up with a shortlist and organise the interviews for us at their office. Heather did a great job. She responded quickly and did everything we asked.

“It was easy. We went to a room at Work and Income and interviewed the six top candidates Heather had selected. They were all lovely people. They all matched the skills we were looking for and if we had the jobs – we would have happily taken them all on. But two mums returning to work came out on top so they were successful. I wouldn’t hesitate to use Work and Income again,” she said.

It was a baptism by fire for the new staff, starting around the incredibly busy Anzac to Easter time when the demand for fresh lettuces and herbs is in top gear, but Leanne says the two new staff did extremely well. “We have an awesome team of 11 here and they have just fitted in so well.

Both of the young mums have worked before, part time or full time doing vineyard work. Even so, 6 am start means they need to be well organised.

“My advice to single parents is to get your childcare organised before you go job hunting. So you know what hours you can work and you can tell prospective employers that,” one of the women said.

“We really enjoy the work and the people here are really friendly and helpful. As mums, it is hard not having that early morning time with our children; but at the same time it’s good getting out, working with others and earning our own money,” they said.

Coming from a career in health and community work, their boss Leanne firmly believes that employers do need to make sure their staff feel good and appreciated in their jobs. This year she organised the “lovely nurses at the Marlborough PHO” to come out to give flu vaccinations to staff who wanted them. She is also fine about picking up and dropping off employees who don’t have transport if she can and Thymebank regularly donates to local schools and community projects.

“I’ve always been a believer that you get back what you put out, so I guess you could say that as employers, we take a holistic approach.

With damage and drama from both the Seddon earthquake and April’s powerful winds Leanne and her team have had more to contend with in a year than some other businesses see in a decade; but they say having huge support from other growers, customers and the community in general has been crucial in getting ahead. It looks like that good karma they have been putting out is coming back already.

Thymebank tests Work and Income’s recruitment service

We have enthusiastic local jobseekers looking for work in Marlborough

Some are ready to start right now.

Some may need a little support to help them get started.

Talk to us about the products and services we have to offer.

Work and Income offers a free recruitment service. We’ll list your jobs, screen candidates

and arrange interviews.Talk to our local work brokers

Heather Manners Ph Blenheim 984 7573James Rodgers Ph Blenheim 984 7566

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Jodie and Simon Bixley purchased the Signature Homes franchise five years ago and have been successfully growing the business from year to year. The couple, who have three children, love the business and get immense pleasure from building homes for their very happy clients. In 2013 Jodie started studying part-time toward a Graduate Diploma in Accounting at NMIT.

Why did you choose to study accounting?I found that accounting was an area I was struggling to understand within my business and decided the best thing to do was to tackle it head on and gain the knowledge by studying it at NMIT. I feel it’s vitally important for all business owners to have a good understanding of accounting as it really is the backbone of every business.

How are you juggling your work/study/family commitments?I’m very lucky as I have great staff members that can step up and help out when I’m extra busy when studying for exams or have an assignment due. My family is very understanding and will give me the time and space I need to get my work done. But I’ve found it all comes down to planning ahead and ensuring I allow enough time to get all my commitments achieved without leaving it to the last minute - which results in stress.

What’s it like studying alongside people of all ages and backgrounds?As a mature student, I really enjoy studying alongside the younger generation and also enjoy helping the International students out from time to time. I enjoy the comradeship of being a student - age, race and background is not important, we are all in it together!

What have you learnt so far that’s been the most useful/applicable in your business?I’ve learnt to step back and look at our business from the outside in, rather than getting bogged down with the day to day operations, I now know the importance of looking at the big picture. The accounting papers I have studied so far have hugely benefited me in the understanding of my financial reports and using this knowledge to help with the growth of our company.

NMIT’s Applied Business programmes offer well-recognised, practical and relevant business qualifications at all levels in Business, Marketing, Management and Accounting. Study can be started mid-year and there are flexible options available for many courses.

To find out more, visit www.nmit.ac.nz

Building the Foundations of a Successful Business

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Cross Lease Titles - Proceed with CautionBY ROB ANDERSEN

Rob Andersen, a staff solicitor with Gascoigne Wicks, works primarily on residential conveyancing with Partner Paul Gibson and Associate Scott Wight.

IntroductionHow do “cross lease” titles differ from “fee simple” titles? And why does it matter? Seemingly, most property purchasers are either are not aware of the difference between these types of title, or simply do not care. Such ignorance or disregard can sometimes cost them dearly. This article aims to educate the reader of the unique considerations required when purchasing properties comprised in cross lease titles, and the potential dangers of ignoring those considerations.

Cross lease developments evolved in the 1970s as an expedient and cheaper alternative to the traditional fee simple subdivision. Today, existing cross lease developments are very common place. When the Resource Management Act 1991 came in to effect, it included cross lease developments under the definition of “subdivision”, which meant that cross lease subdivisions then became subject to the same requirements (and expenses) which affect all other subdivisions. As such, new cross lease subdivisions are a rarity today.

By way of example, in a common small cross lease development containing two flats, the two buildings will be constructed on one piece of land, with each flat owner typically owning a half share in the fee simple estate. By virtue of mirrored lease documents registered on their respective titles, each flat owner then leases from the other owner the exclusive right to occupy their flat and the land immediately surrounding it for a prescribed amount of time (usually 999 years). Each flat owner will have their own composite title, combining their half share in the fee simple estate and a 999 year leasehold estate. A pedestrian walking past this property could easily mistake the arrangement for two separate fee simple titles and, in practice, they are usually be treated similarly. There are however some very important exceptions which anyone who owns or is considering owning a cross lease property should be mindful of.

Cross Lease CovenantsLeases applying to cross lease titles contain a raft of covenants with which each flat owner is bound to comply. Normal fee simple land owners are not subject to such leases and therefore are not subject to the covenants they contain. Each flat owner must not carry out any structural alterations on their flat unless prior written consent is obtained from the other flat owner.Some of these covenants might be seen as an invasion of an owner’s rights, and may cause difficulties for prospective purchasers of a cross lease title.

Common Cross Lease Title RequisitionsClause 5.3 of the current (2012, 9th edition) Auckland District Law Society agreement for sale and purchase provides a right for the purchaser to “requisition” (or “object to”) title if the outline of the building on the flats plan does not accurately reflect the actual outline of the building, or if structural alterations have been carried out without the other flat owner’s consent. In our experience, these two reasons for cross lease title requisitions are the ones most commonly raised by a prospective purchaser.

If the outline of the building does not reflect the flat’s plan, giving rise to a defect in title, this can be an expensive problem. In order to resolve this problem, a surveyor will need to be employed to prepare and lodge a new survey plan with Land Information New Zealand. Then each flat owner and any charge-holders on their titles (such as their mortgagee) needs to consent to registration of the new flats plan on both titles. Basic examples of this exercise could cost the owner up to, and sometimes over, $4,000. Needless to say, a cross lease title owner will not be terribly excited about paying such a significant sum to remedy what they may see as a mere “technical” defect in title.

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If you are purchasing a property comprised in a cross lease title, it is imperative that the flats plan be examined to ensure it correctly reflects the true outline of the flat, in order to avoid a purchaser being liable for footing the bill to correct this title defect when they come to sell the property in the future.

The second common issue whereby the consent of the second flat owner was not obtained for structural alterations undertaken by the first flat owner is usually easier and cheaper to resolve. Importantly, if this consent is not obtained, it is a technical breach of the lease by the flat owner who undertakes the alterations. Typically, a reasonable flat owner neighbour will be happy to sign a document confirming their consent to the structural alteration. Sometimes this consent may need to be issued retrospectively, which is certainly better than having no consent at all. The neighbouring flat owner cannot unreasonably withhold their consent to the structural alterations, but they can, on good grounds, withhold their consent and become entitled to remedies under the lease if the structural alterations proceed without their consent.

A third, less common issue seen in our experience, is where the two registered leases significantly differ or contradict each other. Examples of this issue include where the leases grant exclusive occupation to a flat owner of the wrong flat or the wrong area, or where common

usage areas are incorrectly defined. Resolving such an issue can be an expensive task. It will often involve surrendering the current lease, preparing a new correct lease and potentially a new survey plan (if necessary), obtaining consent from each flat owner and any charge-holders, and lodging the new lease and plan with Land Information New Zealand. This highlights the importance of carefully checking the terms of the registered lease.

Importantly, by default provisions in the standard sale and purchase agreement, the purchaser will have 10 working days from the date of the agreement to requisition title, otherwise they will be deemed to have accepted title to the property.

Proceed with CautionThe issues discussed above are by no means exhaustive, but are surprisingly common. Other issues confined to cross lease titles also arise, such as conflicting insurance policies between flat owners in post-earthquake Christchurch. Although significant, such issues are outside the scope of this article. This article helps to explain why cross lease titles are sometimes viewed as being “inferior” to fee simple titles. People should not be concerned about purchasing a cross-lease property, but simply must exercise due caution when doing so. Your Lawlink lawyer has the expertise required to prevent the above “worst case” scenarios occurring at your expense.

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SpottedPHOTOS BY MARLBOROUGH CHAMBER OF COMMERCE

BA5 BV Gourmet 1 - Sam and Craig Young2 - Mariette de Ruiter3 - Vicki Young and Janet Enright4 - Nicky Simpson

Lifeflight Information Evening5 - Tizzy Pollard & Nicky Stretch

BNZ Speaker Lunch

BNZ Partners’ Speaker Lunch6 - Sue Lindsay

Chorus Info evening7 - Jon Dow

H&S Expo 20148 - Gary Spence, Annie Percy, Lyne Reeves, Debbie Carter

Christmas in July at Watery Mouth9 - Kat Pickford10 - Sarah Dawson, Melissa Ryder, Rachel Crosbie

BNZ Partners’ Speaker Lunch11 - Domenic Romano

Debbie’s leaving drinks12 - Linda & Christian Fletcher-Firks

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Ask the Accountant

DISCLAIMEREvery care has been taken in the preparation of answers provided and in the preparation of the general information. However, the Q&A service is intended to provide basic guidelines and information based on given fact scenarios and is not intended to constitute accounting, tax, legal, investment, consulting or other professional advice or service.

BY HAMISH MATHESON CA

Question

We own a painting company and are often required to paint houses in remote areas like the Marlborough Sounds that are generally too far to commute on a daily basis. Our staff are normally housed by our clients whose houses we are painting. We provide food and beverages for the staff while they are based at these remote locations.

Are the food and beverages we provide to the staff deductible to the company?

Answer

Generally, the consumption of food and drink is not considered to form part of a taxpayer’s income earning activities. The expenditure is not incurred in gaining or producing the taxpayer’s gross income but is expenditure of a private nature. However, where the cost of a meal is incurred while carrying on business activities away from home, there may be an ability to allow a deduction. This is because these are work-related meals.

As the meal benefit only arises from the nature of the work and the remoteness of the location, and the duration of time spent at these locations is likely to be short, it is likely that the meal costs are deductible to your company.

However, if they are part of the employee’s income PAYE would need to be deducted on the value of the food and beverages.

For completeness I note that in a recent discussion document “Reviewing the tax treatment of employee allowances and other expenditure payments - An officials issues paper” November 2012 officials proposed that employee expenditure payments to meet an employee’s meal expenses during work travel away from the employees normal workplace should be exempt from tax, subject to a three-month upper time limit at a particular work location.

Culverden Christmas Country Fete

Coming up on Thursday 30 October, Marlborough Tour Company day trip including entrance to the Culverden Fete. $75.00 per person.

BOOK NOW: 03 577 9997 info@marlboroughtourcompany.co.nz

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Cash flow shouldn’t stop you from delivering.That restless two a.m. is something Mark Shapland remembers all too well. Lying awake, wondering how to grow his business when it was being limited by his cash flow. BNZ Invoice Finance changed that. It gave Mark and the Big Chill Distribution team a working capital solution that could flex alongside their business.

Call the BNZ Invoice Finance Team on 0800 227 429 I Read Mark’s story at sharedstories.co.nz

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Mid Winter Christmas with Young ChamberJuly saw our Young Chamber event held at the Watery Mouth Café. Some speed networking over Christmas crackers made sure everyone got to meet each other - then it was an opportunity to relax, mingle and enjoy some great canapés and mulled wine.

Many thanks to event sponsors - Watery Mouth Café and Love Thy Curry

Want to know more?Contact Nicolene at the Chamber

on 03 577 9575 / enquiries@mcoc.org.nz

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So what’s Young Chamber all about?The vision for Young Chamber is to create a supportive and well-networked environment for young professionals and business people in Marlborough. It’s about engaging with the under 40 year olds within our business community, and fostering a more smart and connected network to benefit us all. But it’s not all serious – our events are designed to be welcoming, and a lot of fun!

Who is it for ?Anyone in business in Marlborough who is aged 40 and under. It doesn’t matter if you’re in business for yourself, or an employee.

Save the date : 25 September - Young Chamber Road TripSign up to our newsletter to receive full details of Young Chamber events.

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MCOC Events CalenderSeptember 2014Monday Tuesday Wednesday Thursday Friday Saturday Sunday1 2

Active Performance Management - Forté Management

3 4 5 6 7

8 9 10 11GIST Customer Service Workshop

12 13 14

15 16BNZ Partners’ Speaker lunch with Doug Avery

17Small Business Group

18 19GIST Selling - The Basics

20 21

22NZTE - Export to China

23NZTE - Export to China

24Marlborough Community College BA5

25Young Chamber - Road Trip

26 27 28

29AGM

30

Notes:

October 2014Monday Tuesday Wednesday Thursday Friday Saturday Sunday

1 2 3 4 5

6 7Active Performance Management - Forté Management

8 9 10 11 12

13 14Essential Skiils for Teamleaders & Supervisors - Forté Management

15 16 17 18 19

20 21Essential Skiils for Teamleaders & Supervisors - Forté Management

22BNZ Women in Business - Pataka the Foodstore

23 24 25 26

27 28 29 30 31

Notes:

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MCOC Events Calender

November 2014Monday Tuesday Wednesday Thursday Friday Saturday Sunday

1 2

3 4 5Active Performance Management - Forté Management

6Business Awards pre-dinner Westpac entrants, judges & Sponsors

7 8 9

10 11 12 13 14 15 16

17 18 19 20 21Westpac Gala Dinner

22 23

24 25Lean Training

26 27Small Business Group

28 29 30

*** Westpac Marlborough Chamber of Commerce Business Awards Dinner

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Managing Business Performance“Not everything that can be counted counts and not everything that counts can be counted” (Albert Einstein)

Every business strives for better performance in one way or another. That most are frustrated by their efforts should tell us that something important is being missed. One such thing stems from the mantra “what you can’t measure you can’t manage”. It is simply wrong. Of course businesses should and must measure what can be measured. But those things increasingly represent the bench marks to play the game, not the indicators of competitive differentiation.

We have to look beyond the safe, quantitative mechanistic measures that we are so familiar and comfortable with and delve into the murkier humanistic, qualitative (difficult or impossible to measure) elements like employee morale and satisfaction, dealing with poor performance, and recognising, rewarding and retaining top performers, for it is these variables that determine performance. In fact, people management practices are a better predictor of a business’s performance than strategy, technology or R&D. As a rule Kiwis are “OK” at the structured, mechanistic performance management but particularly poor at the humanistic people performance management*. The greatest opportunity for Kiwi businesses to grow performance therefore is to focus on human capital development*. 21st century Kiwi businesses need a performance strategy or at very least a specific performance section in their business plan.

Here’s why. The top 16% of your performers are 96% more productive than your bottom 16%. That’s a simple statistical reality. Some of the bottom 16% may not even break even while the top 16% carry more than their fair share.

Let’s pull employee performance apart a little. There are four categories that should be considered as shown in the diagram.

When managers think about employee performance they typically do so in relation to what is specified in the job description and employment agreement – the contracted or “mandated” minimum. From that we have to subtract deliberately withheld performance and other tolerated under performance that is ignored for various reasons. The former is common and the latter endemic. It should be a major cause of concern. Hopefully, at the other end of the scale we can add back discretionary performance, more typically referred to as “going the extra mile”. The goals are simple even if achieving them is not:

• Set clear expectations around mandated performance - what “good” looks like;

• Address the causes of withheld performance; • Stop condoning poor performance; • Create the conditions to optimise discretionary performance.

This means submerging into the intensely uncomfortable qualitative, humanistic world of politics, clarity of goals and perceptions, morale and employee satisfaction. All the things that when done wrong undermine performance and when done right make it soar.

Forté Management specialises in performance management for 21st century Kiwi businesses through delivering a fully integrated service suite of consulting, training and coaching drawing on their world class specialisation in the impact of Kiwi psyche on how Kiwis manage and need to be managed.

*Ministry of Economic Development (2010) Management Matters in New Zealand – How does manufacturing measure up?

BY TONY SMALE

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BY MARTY WILSON, DIRECTOR, AND JACKI EVES, ASSOCIATE, WAIN & NAYSMITH LAWYERS LIMITEDCurrently cartels are prohibited by the Commerce Act 1986, which make agreements between competitors unlawful through the price fixing provisions. The Commerce (Cartels and Other Matters) Amendment Bill includes specific provisions which prohibits entering into contracts, making arrangements or understandings that contain cartel provisions or the giving effect to a cartel provision. A cartel provision is one which has the purpose or effect of price fixing, restricting output or allocating markets.

The most significant change is that individuals intentionally participating in cartels will now face up to seven years imprisonment.

The Bill has had its first reading in Parliament. If passed in its current form the reforms will bring New Zealand’s cartel regime into greater alignment with our significant trading partners and will enhance our ability to take action against global cartels.

Why prohibit cartels?The purpose of the legislation is to promote competition in markets in New Zealand. Competition promotes the efficient allocation of resources and provides benefits to consumers through lower prices, increased choice and quality of goods and services, and innovation. If the competitive process is interfered with by cartel behaviour these benefits do not accrue and the opposite occurs.

Busting a cartelCartels are difficult to catch without the help of insiders. To aid detection the Commerce Commission has a leniency programme that provides incentives to companies to confess and help it in the investigation and prosecution of other companies involved in the cartel. The Commission offers immunity from prosecution to individuals or companies involved in a cartel if they cooperate and provide information and assist in any court proceedings. It’s a condition, however, that they are the first member of the cartel to apply.

PenaltiesIn addition to criminalisation corporates will now be subject to fines of the greater of $10 million or three times the value of any commercial gain or – if this can’t be ascertained – 10% of turnover.

Genuine collaborative activityOnly intentional cartel behaviour has criminal consequences. A person has a defence if they can show they honestly believed they were engaging in a

collaborative activity. A collaborative activity is ‘an enterprise, venture, or other activity, in trade, that is carried on in cooperation by two or more persons; and is not carried on for the dominant purpose of lessening competition’. The exemption would cover arrangements such as joint ventures, strategic alliances, syndicated loans and consortium bidding provided the arrangement had a legitimate purpose and the cartel provision was reasonably necessary to achieve that purpose.

To be certain that an activity will fit within the collaborative activity exemption, the Bill also introduces a clearance regime similar to the Commission’s business acquisition regime. Competitors can prospectively apply to the Commission for clearance. This may be granted if the Commission is satisfied that ‘the cartel provision … is reasonably necessary for the purpose of the collaborative activity; and … will not have, or would not be likely to have, the effect of substantially lessening competition in the market.’ Do note that a clearance can be revoked where there have been material changes.

The Bill doesn’t change the Commission’s wide powers to obtain information. The penalties for failing to comply in an investigation, however, have been increased to $100,000 for individuals and to $300,000 for companies. There is no right to silence in Commerce Act investigations.

Other changesThere are other small, but significant, proposed changes to the Act including that an employee or agents’ behaviour can be attributed to a manager or employer.

The key message is to take care when communicating or otherwise dealing with firms competing against you or when proposing to enter into joint ventures or strategic alliances. If you have any concerns, you should always contact us first for advice.

marty@wainlaw.co.nzjacki@wainlaw.co.nz

Criminal Sanctions for Those Involved in Cartels Proposed changes beef up the Commerce Act 1986

PA G E 1 6 Voice

If you were to spend $30,000 on new equipment, how much due diligence would you do? If it didn’t work as you expected how much damage would this cause in reputational risk, disruption to your team, cost, or time?

Taking on a new employee will cost at least this in the first year if you are paying the minimum wage. Getting the appointment decision right and putting in place some essential paperwork is your best way to mitigate the risk of employing.

Set up for SuccessKnowing what you need is the start. Taking the time to write not only a job description, but identifying the skills, qualifications and personal characteristics that are required for the position is essential. By determining this up front you limit the risk of employing someone for the wrong reasons. Frequently a decision about a candidate is made in the within the first couple of minutes, and the rest of the time is spent justifying your initial decision. Measuring the candidate against your predetermined criteria helps to avoid this.

The InterviewPast behaviour predicts future behaviour - therefore ask behavioural questions. For example if you are looking for someone who is customer focused you might ask them to ‘describe a time in the last month when they went the extra mile for a customer’. If they can’t think of an example they don’t meet that criteria.

Don’t Just InterviewEven with a structured, behavioural based interview it can hard to make an accurate judgement about a person based on an hour long discussion. Use a number of different tools to increase your chances of success.

A trial period is not valid unless you have a signed Agreement before the employee starts work – signing the day they start makes the trial period invalid.

Make it a requirement that an applicant must phone you for a position description before applying – you can then consider their telephone manner. Get them to have morning tea with the team they would be working with (the boss shouldn’t go), and get feedback on the teams’ view of the team fit. Reference check with their immediate managers (at least two), rather than with the referees they have given you, noting you must have the applicant’s permission. If they don’t give permission, be very suspicious. Seldom will an applicant nominate a referee who will give them a poor reference, so you need to ensure you dig deep enough. Also consider:

• Work/Skills tests• Psychometric testing• Alpha/Numeric testing• Qualifications checks• Criminal history checks• Applicant Presentations

Making the OfferAll employees must have a signed Employment Agreement (contract). This is a legal requirement. It is particularly important if you want to rely on a 90 day trial period. A trial period is not valid unless you have a signed Agreement before the employee starts work – signing on the day they start makes the trial period invalid. The best time to negotiate an Agreement is before the employee starts.

Make any offer subject to agreeing terms and conditions, with an expiry date for the offer to be accepted. That way if negotiations don’t go well you can withdraw the offer. You can make the offer subject to other conditions as well – for example satisfactory references or a satisfactory criminal record check.

Spending the time making the right decision at the start, and putting in place the necessary paperwork could save you thousands. The extra effort will be worth every cent.

For more information, please contact: Kay Chapman, Consultant. E. kay@chapmaner.co.nz

Employing RightBY KAY CHAPMAN

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PA G E 1 8 Voice

With thanks to all our Sponsors for making these Award’s possible

Principal SponsorWestpac

SponsorsWallace Diack Chartered AccountantsMarlborough ExpressForté ManagementNew Zealand King SalmonSouthern Water Engineering TrustpowerMarlborough LinespcMediaThe HitsRichard Briggs PhotographyVerve Flowers for MarlboroughMarlborough Convention CentreCrombie LockwoodSteamCleanz MarlboroughMarlborough Light & SoundMcCormick the JewellersSaint Clair Family EstateScenic HotelWyesguy Photography

The Business Event of the Year

Marlborough Chamber of Commercepresents the

Westpac Marlborough Chamber of Commerce

Business Awards

GALA DINNERFriday 21 November 6:00 pm

Marlborough Convention Centre

MC Scott Radovanovich

Formal DressTickets $119.00 / Table of 10 $1090.00

BOOK YOUR TICKETS NOW!!enquiries@mcoc.org.nz

Voice PA G E 1 9

We’re often very good at looking at where we’ve been. However, how often do we look forward to see where we want to go?

Most recently we wrote about Key Performance Indicators (KPIs). However, do you know just from KPIs whether or not you’re actually heading in the right direction?

If you know where you want to be then you need a strategy to get there. KPIs in isolation are not helpful in measuring the success of your strategy. To be any use they need to be linked to your strategy.

A Balanced Score Card (BSC) is designed to do that. The beauty of the BSC is that it combines operational KPIs with strategic and long-term business goals. In short it pulls the KPIs together in a format that makes sense.

The BSC breaks operating areas down into four key elements. It then links these to your business’s overall strategy.

The key areas of focus are:

• Financial• Customer (external focus)• Business process (internal focus)• Learning & growth

Once you have a clear strategy for your business this helps identify and establish KPIs under each area of your BSC.

E.g. a manufacturer’s strategy may depend on its production process becoming as lean as possible. Setting a maximum tolerance % for defective parts and waste would be a must.

Building customer satisfaction KPIs into your business will help serve your customers better. E.g some common measurements

include product return % and/or the number of customer complaints received.

Some questions and issues to consider when designing an effective BSC:

• Is the information readily available and measureable?• Are the KPIs something that your staff and management

can influence?• Ultimately if you achieve your KPIs will you be closer to

achieving your overall business strategy?

A good BSC must be engaged with regularly by all involved. It can’t be left in a vault somewhere to gather cobwebs.

Here at TvA we are confident that even the smallest of businesses can develop effective systems to improve business performance.

So how are you tracking? Contact our Business Advisory team today to learn more.

Measuring and monitoring business successBY ADRIAN FERRIS CA

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Anthony Bowron, Marlborough Commercial Manager for FMG Advice & Insurance

A common misconception is that FMG only offers insurance to farmers. However, in order to be New Zealand’s leading rural insurer our business scope has to sit wider than that. FMG has been a trusted insurer for 109 years and we continue to be 100% New Zealand owned and operated with the goal of offering rural New Zealand a better deal. This makes rural and provincial business our business.

Whether you own a winery or vineyard, have an agricultural contracting business or own the local rural supplies shop, we can help you with assessing the risks involved with a single commercial building, through to ensuring your entire business operation is adequately protected.

As a business owner, we offer you insurance cover which meets the challenges you face on a daily basis. Added to this we also provide a risk advice service which helps you avoid and minimise risks. Simply put, this means we take the time to visit you at your premises and listen to the things which matter most.

As a dedicated Commercial Manager with FMG, I’m responsible for looking after the Mutual’s diversity of commercial clients and for building our commercial portfolio in the Marlborough region.

In the last couple of years I have had the opportunity to form strong bonds with my clients, which is important, because at FMG we put people at the centre of everything we do.

By way of a brief background, I have a broad range of experience which includes eight years in the insurance and finance sectors both in New Zealand and overseas - coupled with six years as Operations Manager for a corporate farming operation.

My strengths lie in understanding the needs of commercial businesses, particularly when it comes to insuring wineries, retail, trades, commercial property portfolios and motels.

My aim at FMG is to help understand and manage the risks that affect my clients businesses, and help them achieve their goals.

So, if you want to find out more about insuring your business and discuss the options available, don’t hesitate to give me a call.

Anthony BowronDDI: 03 577 8798Email: anthony.bowron@fmg.co.nz

BY ANTHONY BOWRON

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Hunter’s WinesJane Hunter

e. wine@hunters.co.nzwww.hunters.co.nz

a. 603 Rapaura Road, Blenheimp. 03 572 8489

Air New Zealand HolidaysBrad Sidley

e. holidays.blenheim@airnz.co.nzwww.airnewzealand.co.nz

Yvonne, Fiona, Francesca and Brad

Welcome you to their Holidays Store on 3 Maxwell Road. Between the four of them they have the globe well covered for all your travel needs and are ready to share their knowledge and experience with traditional face to face consulting.

The unique aspect of booking through a Holidays Store is that you will be dealing direct with Air New Zealand so we have our finger on the pulse at all times. At our Holidays Store you can use your Airpoints dollars to pay for certain

land and cruise holidays, we also offer 12 months interest free (conditions apply) and we will also reward you with Fly Buys points on every purchase, all you have to do is sit back and start picturing that holiday and we will do the rest. As a full service agency we can also book other airlines, so the world is truly your oyster.

So just pop in, or give us a call, the team are on standby to help make all your travel dreams a reality.

Hunter’s Wines are recognised as one of the pioneers of the Marlborough wine industry and one of New Zealand’s best known family owned wineries. Established by Irishman, the late Ernie Hunter in 1979, the company is now headed by Jane Hunter. Some 30 years on, Jane is the most awarded women in the New Zealand wine industry with an impressive set of accolades, including an O.B.E and an Honorary Doctorate of Science. Jane is backed by a great team and three generations of family.

After winning immediate acclaim in 1986 at the London Sunday Times Wine Festival with the 1985 Fumé Blanc,

Hunter’s Wines now boasts over 180 gold medals, more than 30 trophies and innumerable international awards and accolades. Today Hunter’s wines are still breaking new ground.

Still 100% family owned, Hunter’s search for excellence never ceases. New varietals, new wine making techniques and new branding constantly keeps the team at Hunter’s seeking the best for its wines and continuing their commitment to Hunter’s philosophy of ‘Quality not Quantity’.

a. 3 Maxwell Road, Blenheimp. 0800 505 187

Watson LtdVirginia Watson MBA

p. 03 579 1297m. 021 0263 9548

e. vwatson@ts.co.nzwww.linkedin.com/virginiawatson

Businesses and organisations call me when they need an experienced, strategic marketer to:

• develop or review their marketing strategy• get a special/strategic project up and going• manage their external communication

Often organisations have one-off projects or special business issues or opportunities that need professional input, but they don’t want to employ someone permanently. I fill that gap, either working as a consultant or sometimes coming in a on a short-term contract.

Some clients use me to facilitate strategic marketing planning, or to manage a big project for them, and others just call once in a while for help with something like a media release. Fifteen years of operating this way means clients get a very broad set of skills, experience and connections to draw on.

Strategy, New Projects and Marketing

Hotel d’UrvilleTony Lawrence Tony and Sarah Lawrence bought out their previous business

partner in April this year and took on full ownership.

The restaurant has been redeveloped into a specialist seafood restaurant although it still has a range of options for meat eaters and vegetarians.

Additionally, a new private dining area has been established which doubles as a conference room during the day. This area is separate from the main restaurant and caters for groups of up to 24.

The eclectic and charming style of the hotel rooms is being further enhanced by a refurbishment programme currently

under way in time for the upcoming summer season. Inquire about our special accommodation rates for friends and family of Marlburians.

The outdoor bar area is being extensively redeveloped in time for the summer season. It will specialise in al fresco dining. The ideal spot to enjoy a summer afternoon or early evening in Blenheim.

Visit our Facebook page to keep up to date with what’s happening at d’Urvilles (don’t forget to “like” us!).

See our new website from 1 September.

a. 48 Queen Street, Blenheimp. 03 577 9945

e. hotel@durville.comwww.durville.com

Member Profiles

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Member Profiles

PROPERTY INDEPTH is a forward thinking dynamic valuation business with representation in many parts of New Zealand, specialising in residential and lifestyle property valuation.

We provide detailed reports with fast (often 24 – 48 hour) turnaround utilising smart computer technology. Our reports reveal comprehensive detail, are competitively priced and their scope and structure meets the expectations of all N.Z. lending institutions. We can prepare an independent, objective and professional registered valuation for a range of property types and purposes.

Dianna is our local Registered Valuer and her qualifications include being:

• A Member of the Property Institute of New Zealand (MPINZ)

• An Associate of the New Zealand Institute of Valuers (ANZIV)

Dianna moved to Marlborough over 10 years ago after spending many great holidays in this area, and is well established and highly regarded as a registered valuer in the wider Marlborough community.

Property IndepthDianna Schulz

e. dianna.s@propertyindepth.co.nzwww.propertyindepth.co.nz

p. 0800 463 378 m. 027 478 6518

Irvine Holt Enterprises LtdJan Bilton

e. janbilton@irvineholt.co.nzwww.janbilton.co.nz

p. 03 579 6100 m. 021 627 771

Marlborough’s only Multi Award Winning Craft Beer Specialist “ Dodson Street Beer Garden “ proudly presents one of the largest selection of craft beer and cider on tap in the South Island!

Located adjacent to the multi-award-winning Renaissance Brewery, Dodson Street Beer Garden’s current management has taken the business back to its beery roots and displays New Zealand and International Craft Beer and ciders. A favourite for tourists and locals alike, all beers and ciders are available as tasting trays, in 200ml glasses and pints.Open 11am – 11pm every day and available for functions 7 days a week.

As well as a fantastic range of beers they offer the following:

• Fine section of Marlborough Wines• Marlborough’s best Beer Garden• Authentic German Cusine and Italian Pizza• Classic New Zealand cuisine• Children’s menu• Gluten-free, Dairy-free, Vegetarian options• Garden chess• Home-made authentic Italian Gelato

Dodson StreetBeer GardenDietmar Schnarre

e. info@dodsonstreet.co.nzwww.dodsonstreet.co.nz

New Zealand Méthode Traditionelle specialist, Daniel Le Brun, set up his wholly family-owned wine producing business in July 1997, and released his first wine two years later. A labour of love, the Le Bruns strive to excel at their passion for producing some of the best sparkling wines in New Zealand.

Daniel and his wife Adele, together with their daughter, Virginie and son, Remy, run this specialist winery, which is set out with state-of-the-art processing equipment imported from Champagne. Production is focused on limited edition wines, using only top quality, hand-harvested grapes grown specifically for making wines and paying meticulous attention to detail from the vineyard through to the wine on the shelf.

Daniel has been labelled the “Grandfather” of Méthode Traditionelle in New Zealand. He dedicates himself to being a specialist in his field and is hands-on after 33 years of Marlborough bubbles production, from the vineyard to the pop of the cork. He does not waiver in his wine production, the method passed down to him from his forefathers.

He has, however, also learned to adapt to the local conditions, having spent three decades pioneering the making of Méthode Traditionelle in Marlborough. He has a deep seated belief in the potential of Marlborough to produce one of the finest examples of Méthode Traditionelle outside of France.

No1 Family EstateAdele & Daniel Le Brun

e. no1wine@xtra.co.nzwww.no1familyestate.co.nz

a. 169 Rapaura Road, Blenheim 7273p. 03 572 9876

Irvine Holt Enterprises Ltd is a specialist food and marketing consultancy and publishing company established in 1981. Jan Bilton has food science and marketing degrees. She was editor of The Foodtown Magazine (now Food magazine) for 16 years and writes a syndicated newspaper food column. Michael G. Ryan’s background is as a writer/director/producer of TV documentaries and as a newspaper journalist and deputy magazine editor.

Our strengths: editing; editorial; advertorial and

copy writing; press releases; promotions; recipe development; menu development; food photography; food styling; product launching; newspaper and magazine articles; food demonstrations and classes; travel and wine writing; cookbooks.

Since moving to Marlborough seven years ago, we have written and published three books one of which — Marlborough on the Menu — won best food/wine guide at the 2010 Le Cordon Bleu World Food Media Awards.

a. 1 Dodson Street, Blenheimp. 03 577 8348

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Member Profiles

Saturn MarineBob Doyle

e. bob@saturnmarine.comwww.saturnmarine.com

m. 021 783 995

CurvesKaren Jennison

e. karenscurves@gmail.com

Saturn Marine Ltd is a combination of over 30 years’ experience in the marine industry.

• Designing and suppling Lloyds approved marine exhaust systems, vibration mounting arrangements for ships exhaust.

• Custom made drag reducing, fully feathering, and fully adjustable sailing boat propeller.

Since arriving in New Zealand, SaturnMarine has won contracts to supply systems to :

4 x 26 mt Wind Farm Vessels built in Vietnam1 x 36 mt Fullers Ferry built in Wanganui1 x 20 mt Taranaki Pilot Boat Built in Wanganui

Saturn Marine Managing Director Bob Doyle, started his career as a Marine Engineer in a commercial tug mooring company in the UK and then became technical director and managing director at one of Europe’s leading marine companies.

a. 43 High Street, Blenheimp. 03 578 2300

Local chiropractor Karen Jennison purchased Curves last year with the aim of improving the long term health and fitness of women. She is conscious of member’s health, posture, equipment use, proper stretching techniques and fitness goals.

Curves is Blenheim’s only fitness centre designed specifically for women. Curves uses hydraulic resistance equipment designed to strengthen every major muscle group. This type of equipment is time efficient, safe and effective for all fitness levels.

Curves Smart is an advanced personal fitness training system installed in the past year, and is attached to every piece of

equipment. It provides individual feedback as you’re working out, and automatically adjusts to your fitness level, so you stay challenged and achieve your full potential.

Also available is Curves Complete, a weight management program that includes the Curves fitness circuit, personalized meal plans and one-on-one coaching to help you meet your goals.

Curves is a vibrant community of women working towards the same goal of a healthy lifestyle. The secret to lasting motivation is the support of our friendly staff and members.

Cycle WorldRay Dunstan

Our aim is for people to enjoy riding their bike as much as possible and everything we do is centered on this philosophy. All of the Cycleworld staff are keen cyclists and happy to help you find the right bike and equipment.

Our two friendly mechanics have more than 30 years of experience and will take excellent care of your bike when you book it in for servicing, tuning or repair. We do work on any brand and type of bike, and services offered includes everything from changing a tyre to packing down a bike for transport.

Additional Cycleworld services include;

• Bike-hire for MTBs, touring bikes and indoor exercise cycles.

• Bike fit assessment using the Body Geometry Fit system, which will result in both increased comfort and performance for the rider.

Regardless of what type of riding you do, we look forward to seeing you at Cycleworld.

e. ray@cycleworld.co.nzwww.cycleworld.co.nz/blenheim

a: 58 Charles Street, Blenheimp. 03 579 4111

Social GuyMark Shaw

Social Guy is a Marlborough based digital agency with clients in New Zealand and Australia.

We provide a host of digital and social medial services to improve our customers brand equity online including copy writing, videography and photography, digital and social consultation, social media workshops and community management.

How do our services work?1. Strategy - We work with our clients to design and build social and digital strategies set around specific business objectives.

2. Execute - We provide expertise for one-off campaigns or long-term community management to help build and strengthen our clients’ online presence. We also deliver social and digital workshops specifically designed to meet the requirements of individual brands and businesses.

3. Evaluate - We provide the tools, resources and support to measure the success of digital and social activities, and identify potential opportunities.

If you’re interested in turning your business around online, contact us today.

e. info@socialg.uywww.socialg.uy

p. 04 889 2939Twitter @SocialG-uyFacebook.com/socialguynz

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