Business News

The causes and consequences of decreasing public trust in business, and what this means for societies and the global economy, will be the focus of a public lecture on Monday at the Victoria Business School. Harvard Professor and Victoria University alumnus Paul Healy will discuss recent cases and research findings that provide insights into the causes of the loss of trust, its ongoing impact, and the changes required to rebuild confidence. Professor Healy is the James R. Williston Professor of Business Administration and Senior Associate Dean for Research at the Harvard Business School, where he researches and teaches in corporate governance and accountability, strategic financial analysis and financial reporting. He cites Enron, the Madhoff Ponzi scheme, the global financial crisis and ongoing banking issues in Europe as just a few examples of many events causing public faith in business to decrease.  “People have a sense that the leaders of the firms involved in these scandals took a very narrow approach to management that served their own short-term interests, often at the expense of customers, employers, the company’s reputation and the financial system.  “This loss of trust is twofold: it’s in the individuals that lead corporations and the corporations themselves. That, I think, is the tragedy—as a result of ethical lapses some leaders failed to preserve the reputation of their own organisations and led them to their demise.” Professor Healy says as a result increased regulation is being placed on business, and while this is appropriate, some laws will likely end up being heavy-handed. Another consequence is economic growth also slows, along with opportunities to reduce unemployment, as investors move their resources into more secure locations than the stock market. Meanwhile, innovative new businesses find it increasingly difficult to raise capital. “Many of the challenges in the world today, such as […]

There may be a lot more people experiencing the languid Friday afternoons following the announcement today that Telecom is to lay off “hundreds of workers”. This comment is not forgetting other people across companies in New Zealand who are regularly being layed off with no recall and not much chance of  a new work environment. Corporately speaking,we have just had Peter Reynolds return to London with a large payout and now the return to the Board looks like it isn’t good enough.  With technology services it is an ever changing product market; different mobile phones are coming out every day and phone plans are very competitive amongst the players. So do you only get a job with Telecom if  you are a technician; and even then, what is your use by date? Why on earth would you want to work for them? –Doug Green

The Reserve Bank Governor, Graeme Wheeler’s speech yesterday was essentially more of the same – an ongoing attachment to orthodoxy reinforced by a reluctance to do anything new, believing it is best to do nothing as change always has its risks, says the New Zealand Manufacturers and Exporters Association (NZMEA). NZMEA Chief Executive John Walley says, “Mr Wheeler outlined the risks of each policy change and rejected each of them in turn. Best to live with the current choices and associated risks; all a bit hard to take when, as an exporter, your back is to the wall.”  “We saw technical analysis from John McDermott a couple of weeks ago and more from Mr Wheeler yesterday; all good analytic reasons for their position. Unfortunately the analysis seems to miss the fact that high quality, high value, high tech manufacturers don’t have the confidence to invest in New Zealand.”  “We agree with Mr Wheeler’s analysis that New Zealand has a structural problem in terms of balance of payments, savings, productivity and real investment. These are all manifestations of the existing “low risk” policy settings; the real risk is that nothing changes before it is too late for many exporters.”  “There is more to currency intervention than the spot market, as it has been demonstrated by many central banks around the world. There should be more than one lever and more than one target. The Kiwi dollar needs to be more than a one-way bet for speculators, and to move away from this, we need to target inflation and financial stability together by using policy tools in a complimentary manner.” “Discussion around the use of loan to value ratios (LVR), for financial stability reasons, is a major step that can crimp debt growth in a targeted way and avoid our exporters being […]

 In light of the latest CPI result  the Reserve Bank should review how it assesses inflation and cut the official cash rate, the Employers and Manufacturers Association says.  “With inflation below the Reserve Bank’s mandated target for three consecutive quarters now the official cash rate should be cut, said Kim Campbell, EMA’s chief executive. “Lowering the OCR makes sense for three important reasons: 1) It would help keep us in line with interest rate cuts in Australia, our largest trading partner, thereby maintaining the trans-Tasman cross rate at its present favourable level. Further falls in the Australian dollar could well stifle our exports to Australia and short circuit our fragile recovery. 2) It should keep us within the central bank’s mandated target range for inflation by holding CPI prices between one and three per cent over the medium term. 3) It would make investment in productive enterprise more attractive; interest costs are a hand brake on investment.   “If we’re lucky it might also help bring our exchange rate down marginally.  “The Reserve Bank needs to separate out the price inflation in Auckland’s housing market from the deflation elsewhere in the economy. For example the Producers Price Index has been negative for many months, and Auckland’s house prices are driven by insufficient stock due to few new houses being built over recent years. “No adjustment to interest rates will make any difference to the present lack of housing. “If housing affordability is an issue, that’s hardly the responsibility of the Reserve Bank and we fail to see why the productive sector should be punished for a lack of housing stock. “Some groups advocate a change to the Reserve Bank Act. That’s unnecessary. All the Bank has to do is stick to its own rules.”  

The Employers and Manufacturers Association is pleased with the announcement today for a new, single-focus workplace health and safety agency to be established. “EMA has been lobbying for some years for precisely such an agency aimed solely at improving our workplace health and safety record,” said Paul Jarvie, EMA’s Manager of OH&S. “This announcement is most welcome,” he said. “But we urge caution; some hard, bold decisions have still to be made.  “We don’t want to see the same old culture we have had before transferred from OSH and the former Department of Labour into the new agency.  “There must be structural and delivery changes to how the new agency operates. “The new organisation must lift itself and business to a whole new level of health and safety actions, to the benefit of both employers and employees. “Our advocacy has been for all health and safety agencies to come under the one body, albeit delivering different products and services to different customers as New Zealand is too small to maintain the plethora of injury prevention agencies we currently have. For example MBIE and ACC at present separately undertake injury prevention activities. “We will be looking for a single agency to coordinate resources, create better efficiencies, and above all take a collaborative and consistent approach for employers and employees. “EMA would be pleased to help ensure these outcomes.”  

Aotearoa has a bright future if we can cheer on these smart folk as they take on the planet and win! said Export NZ Auckland director Catherine Lye announcing the launch the Air New Zealand Cargo ExportNZ Awards Auckland 2013 this week. She was quoting Jeremy Corbett, last year’s MC at the Awards gala dinner. “Entrants will meet some of the Big Guns of the export world, she said, as our line-up of 22 judges this year is a who’s who panel of exporting experts,” Catherine said. They include: • Michael Daniell – CEO, Fisher & Paykel Healthcare • Brian Blake – Managing Director, DB Breweries • Tony Falkenstein – CEO, Just Water International • Ian McCrae – Founder & CEO, Orion Health • Erica Crawford – Director, Tentpole Holdings • Kim Campbell, CEO, EMA. • Les Kendall, CEO and Governing Director, Temperzone • Professor Kenneth Husted, Professor of Innovation and Co-Director at the University of Auckland • Barry Squires – Head of International Business, Westpac Institutional Bank • Craig Watkin – Supply Chain & Distribution Manager, Douglas Pharmaceuticals • Geoff Whitcher – Co-Director of Centre of Entrepreneurial University of Auckland, • Graeme Ransley – VP Operations, M-Com • Chris Komatas – VP Operations, Endace  “Our judges are rich in connections and capability and committed to supporting the small and medium-scale businesses which are recognised as key to driving the export growth we need to sustain employment and our communities.  “Our 2013 Awards programme adopts an NZ Inc approach,” she says. “The Awards are designed to highlight Kiwi ingenuity, innovation and export success and a thought-provoking opportunity for your business to reflect, refine and learn more about your company. “Beyond that, there is the opportunity to: • WIN – use of The Food Bowl facility valued at NZ$10,000 (BDO Food […]

Solidtec Solutions, provider of the industry-leading 3D CAD software SolidWorks, has been recognised as the top performing SolidWorks reseller in Asia Pacific South. In addition to this recognition by Dassault Systemes SolidWorks Corporation, the company has recently been named one of the top performing technology resellers in the Australian IT Channel, rated 27th in the CRN Top 50 Awards. CRN Fast50 rates the top performing companies in the channel according to revenue growth. “I would like to take the opportunity to thank all of our customers and staff for making 2012 our best year yet,” says Shane Preston, CEO of Solidtec Solutions ANZ. During 2012, Solidtec’s revenue grew by more than 32% over its 2011 revenue of $6.2M. The company’s user base also grew to over 1200 customers in 2012, which represented an increase of 28% over 2011. To support this dramatic growth, Solidtec added 16 new employees in 2012. Solidtec Solutions attributes its growth to its strong focus on customer service, understanding their customers’ businesses and the alignment of the SolidWorks suite of products, including SolidWorks Simulation, Enterprise PDM and SolidWorks Composer, to the specific needs of small and mid-sized businesses. “Drawing on many years of expertise in Australia’s and New Zealand’s manufacturing, engineering, design and mining industries, we continue to evolve and improve our services, and selling the highest amount of SolidWorks licences across Asia Pacific South in 2012 demonstrates our commitment to adding value to our customers’ businesses through our technical expertise,” Mr Preston says. Solidtec boasts some of the best engineering talents in the business and is proud of its growing team of certified SolidWorks Application Engineers. Three of Solidtec’s Application Engineers, one in NZ and two in Australia, have been awarded Elite Application Engineer status in the last 12 months. In 2012, Solidtec Solutions strengthened […]

Entries are now open for the 2013 New Zealand International Business Awards, which recognise New Zealand businesses succeeding on the world stage. The Awards programme, run by New Zealand Trade and Enterprise (NZTE) with support from Strategic Partner ANZ, celebrates the passion and vision of New Zealand’s most outstanding global businesses and business leaders – and benchmark the contribution they make to growing New Zealand’s economy. A $100,000 Supreme Award is presented to an overall winner who stands out across the Awards categories. In addition, each general category winner earns a place on the 2014 Better by Design CEO Study Tour. Past winners of the Supreme Award have included Pumpkin Patch, Beca and 2012 winner Orion Health. Even before winning the top prize,  the company gained significant value from the entry process, which required it to examine its business critically. NZTE Chief Executive Peter Chrisp says entering the New Zealand International Business Awards is more than just an opportunity to be recognised as a stand-out international company. “It’s important for businesses to take time out and reflect on their international growth journeys, and the awards are an opportunity to do this. They are also an opportunity to celebrate achievements and honour the people who have helped drive international successes, and are a fantastic vehicle for forging valuable new relationships.” The Awards judges will be looking for companies which are showing courage, drive and innovation to build successful international businesses. Judges will want to see how businesses are taking an idea to market, how they have overcome obstacles to get to where they are today, and how they are nurturing the business and preparing for future growth. The categories for the 2013 New Zealand International Business Awards are: • Supreme Award • ANZ Best Business Operating Internationally – Under $10m • […]

The service sector showed a pick-up in expansion for the start of 2013, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for January was 52.6. This was up 1.1 points from December, following a 3.6 and 2.7 point fall in the two previous months (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). Compared to previous January results, the 2013 value was lower than 2012, but higher than 2011.  BusinessNZ chief executive Phil O’Reilly said that the stop in slipping expansion levels, along with activity/sales and new orders/sales in positive territory, at least starts the year off on a positive note.  “Activity is certainly patchy, with differences evident across regions, industries and size of business. However, on a wider scale, New Zealand’s result for January sits only marginally below the JPMorgan Global PSI value of 53.6, which shows solid if unspectacular level of expansion. “Despite the pick-up in expansion, the proportion of negative comments from respondents (52.7%) remains higher than those with positive comments (47.3%), with the comments themselves having a strong seasonal influence due to the Christmas/holiday season.” BNZ Head of Research Stephen Toplis said that while the global environment has improved in recent months, there still remain significant threats.  “From New Zealand’s point of view, the strength of its nearest neighbours, rather than the US and Europe, are of greatest interest. While the consensus view about the Australian economy is that it will remain one of the fastest growth areas in the developed world, there are increasing risks to this view.  “Our exporters are exposed to the Australian economy, and this is facing some significant obstacles to its export sector, including cost structure increases, a high Australian dollar and a lower-cost-supply response elsewhere […]

The Carbon Disclosure Project (CDP), the Sustainable Business Council and Deloitte today launched the CDP Australia and New Zealand Climate Change Report, which analyses how NZX 50 and ASX 200 businesses are tackling climate change.  This CDP report, written by Deloitte on behalf of 655 institutional investors representing US$78 trillion in assets, provides an annual update on greenhouse gas emissions data and climate change strategies at the largest listed companies in NZ and Australia.  A key finding is that New Zealand companies are falling behind and need to improve their climate change disclosure if they are to satisfy their investors and customers. The average carbon disclosure score for NZX 50 companies fell from 49 in 2011 to 47 last year, well below the average scores of their international peers in countries like Australia (ASX 200 – 65), UK (FTSE 350 – 66), and the USA (S&P 500 – 70). Disclosure scores below 50 are considered to be low quality, while score of 50-70 are mid-range and 70+ high quality. The maximum possible carbon disclosure score is 100. Over 4,000 companies globally disclosed climate change information through CDP in 2012. This includes over 80% of the 500 largest listed companies in the world, and over 2,000 suppliers. According to a recent GlobeScan and SustainAbility survey of 850 sustainability professionals in 70 countries, CDP is considered the most credible corporate sustainability ranking.  The report also recognises five NZX 50 companies on the CDP NZX 50 Carbon Disclosure Leadership Index for the high quality of their carbon disclosure. These companies are: ANZ Banking Corporation, Telstra Corporation, Westpac Banking Corporation, Fletcher Building and AMP.  Air New Zealand, Telstra and Sky Network TV all significantly increased their carbon disclosure scores this year.   Westpac was also recognised for its high carbon performance, and is the […]