Business News

ExportNZ is increasing its focus on growing opportunities in Korea by entering a partnership with the Korea New Zealand Business Council (KNZBC). Catherine Beard, Executive Director of ExportNZ, says the new agreement will create a strong alliance focusing on maximising the benefits to be gained from trading with the fourth biggest economy in Asia. “With its unique culture and perceptions, Korea can be a tough market to crack. New Zealand exporters should take all the help they can get to step up, be more competitive, and leverage the pool of goodwill and trust that Koreans have for New Zealand. “Working in close co-operation with the KNZBC will add huge value to the services ExportNZ can offer its members – including events, connections, the latest developments and business opportunities. In effect, KNZBC will be our specialist unit serving the Korean market.” Fergus McLean, Executive Director of the Korea New Zealand Business Council, welcomed the new agreement, saying it will enhance the opportunities for NZ companies to take advantage of our fifth largest market. “The Council looks forward to the prospect of working with ExportNZ through its strong branch structure. “Korea is probably the most IT-connected market in the world, and offers exciting possibilities for our exporters of value-added goods and services.” ExportNZ and the KNZBC will work together offering services and activities to their members, they will retain their individual autonomy and operate independently.  

The rapid development of new communications technology is challenging the old ways of doing things in today’s workplaces, says David Lowe, Employment Services Manager for the Employers & Manufacturers Association. “New technology such as smart phones and finger scanning are doing away with traditional work records, timesheets and other data entry,” Mr. Lowe said. “Smart phones with global positioning can determine when and where an employee is at any time, so keeping a record of their hours to be charged, and generating an invoice, is much simpler. “They also present new social media challenges for employers. “Finger scanning systems can replace manual timesheets and data entry. “Whereas this sort of technology is totally normal for an entire generation of newer workers, for others it presents a constant round of surprises. “New systems are also blurring the line between work and home life, often to the advantage of both employers and employees. “The downside is unhappy employees can make damaging comments about their job or employer on Facebook, and others may spend far too much personal time browsing the web at work. “These are just some of the challenges from new technology facing employers who must stay up to speed with what’s becoming possible, and develop clear guidelines on how to use it productively in the workplace. “To help with this EMA has just published Employees and Technology so employers can deal systematically with these workplace issues.”  

One of ten that will open around New Zealand in 2012, the trades academy will provide practical skills training for secondary school students while allowing them to study for NCEA credits and tertiary qualifications. As lead provider for the trades academy covering the HawkeÕs Bay and Tair?whiti regions, EIT will partner up with secondary schools and industries to provide fees-free places for training in hospitality, sport and recreation, automotive and electrical engineering, trade skills, agriculture, land skills, animal care and hair and beauty services while the students remain enrolled in secondary school. The basic model will provide 16 and 17-year-olds with the opportunity to attend EIT one day a week. However, EIT deputy chief executive Claire Hague says the partnerships will be tailored to meet the needs of participating schools and students. Principals who attended a recent meeting with EIT were very positive and excited about the scheme, she said, and now wanted to enrol students into programmes. “They are already indicating the initiative will be oversubscribed. If that’s the case, we may have to look at establishing a mechanism for selecting students.” Places have been capped at 100 students for Hawke’s Bay and 50 for the Tair?whiti region. However, EIT had indicated it may go back to the Ministry of Education if demand outstrips the numbers approved. New Zealand’s first trades academies opened this year as part of a Government initiative aimed at re-engaging students who may have lost interest in education but were interested in learning practical skills. Ms Hague said trades academies gave the 71 percent of secondary school students who did not go on to university an opportunity to seriously consider alternative pathways. “It’s important to intervene early before they disengage from education, and to direct them into hands-on learning while rebuilding feelings of success as […]

Strategic Elements Ltd is involved in an aggressive program of field work on the West Coast of New Zealand. The West Coast field work marks the start of a wider program aimed at discovering large new sources of valuable strategic and precious metals. Results will be reported from each prospect as the Company receives information from its geological team. A company-wide phase of activity is intended over the next few months that includes: (1) Fieldwork across a number of projects on the West Coast NZ. (2) Fieldwork on the Mandamus rare metals project on the East Coast NZ. (3) Grant and commencement of work on a significant new tungsten/tin project in Ireland. (4) Fieldwork on Australian projects. (5) Airborne geophysical surveys to detect geological bodies hidden under cover. Managing Director Charles Murphy said “an intense period of activity has started that will lead us strongly into the New Year. General market conditions are still tough; however we are positioning ourselves to take advantage of any rebound that may occur in the first quarter of 2012.” The field team has begun to comprehensively explore through a geologically rich belt adjacent to the regional ‘Alpine Fault’ on the South Island. They will progressively commence work on each prospect until the end of January 2012. It is believed the west coast region has considerable mineral potential, however much of the surface area contained within the project is covered by vegetation due to humidity and rainfall. The project area has remained highly underexplored due to the covered surface. Critically, airborne geophysical data that can identify geological bodies under the covered surface has never been available. However a sudden escalation in exploration is expected, with the NZ government funding a multi-million dollar airborne geophysical survey to provide information on what lays hidden beneath the surface on […]

Minister of Building and Construction Maurice Williamson will open and attend a forum for Christchurch’s building and property professionals on 29 February. The event – Steel: the proven performer for a new Christchurch – aims to make the case for structural steel to play a leading role in the rebuilding of the city. Hosted by industry body Steel Construction New Zealand, invited guests including local architects, engineers, builders, developers and property owners will debate the technical, commercial and design merits of structural steel. Steel Construction New Zealand manager Alistair Fussell says seismic performance will be a key factor in deciding how Christchurch’s new buildings and infrastructure are designed and built. “The earthquake performance of the HSBC Tower on Worcester Boulevard and the Pacific Tower on Gloucester Street are great examples of steel’s seismic properties. Going forward, not just in Christchurch but around the country, there will be a big focus on seismic performance and what this means in dollar terms for tenants and owners of new buildings.” Forum speakers include Associate Professor Charles Clifton of the University of Auckland, Mr Fussell, and Richard McGowan of architects Warren and Mahoney. “Steel is a leading structural solution around New Zealand and overseas, but it’s not so common in Christchurch,” says Mr Fussell. “With the draft Central City Plan currently with the Government for approval, now’s a good time to be talking to the city’s property professionals about how New Zealand manufactured and fabricated steel can contribute to an attractive and future-proofed CBD.” The forum takes place on Wednesday, 29 February from 4.30pm at The George on Park Terrace.  

BusinessNZ and the Australia New Zealand Leadership Forum have welcomed the announcement of joint work by the Productivity Commissions of New Zealand and Australia. An agreement of the joint cabinet meeting of the New Zealand and Australian Governments in Melbourne will see the two commissions working to develop options for further economic reform and integration. “This is a practical step forward and makes good sense,” said Australia New Zealand Leadership Forum Co-Chair Jonathan Ling. “Australia is not just our most important trade and investment partner – the health of the trans-Tasman economy is essential for expanding growth and ensuring both Australia and New Zealand continue to ride out the wave of global economic instability”. The Australia-New Zealand Leadership Forum is supported by BusinessNZ. BusinessNZ Chief Executive Phil O’Reilly said obtaining economic alignment where it is in the interests of both countries is already improving the trans-Tasman business environment. “Achievements under CER and now the Single Economic Market programme have demonstrated the benefits of trans-Tasman harmonisation. “A number of other significant steps could be taken to facilitate capital raising, ease the approval process for investment and align financial market regulations and supervision. New Zealand business believes mutual recognition of franking and imputation credits would increase investment flows to the benefit of both countries”. Mr Ling said making further progress on the single market would be a focus of discussion at the Australia New Zealand Leadership Forum meeting in Sydney on 12-13 April. “The Forum has always taken a long term view of the relationship. Our Sydney meeting will be an opportunity to discuss how to contribute to the Productivity Commissions’ study and the ongoing single market agenda.” Mr Ling highlighted measures to facilitate trans-Tasman travel. “We congratulate the two Governments on the progress made with SmartGate. Further extension of SmartGate technology […]

The service sector returned to a more subdued level of expansion in December, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for December was 50.6. This was down 5.6 points from 56.2 in November, and 0.2 points lower than the October result. A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining. The average PSI value over 2011 was 52.6. While this was better than the 48.8 recorded for 2009, it was lower than the 53.2 recorded for 2010. BusinessNZ chief executive Phil O’Reilly said that like its sister survey the PMI, 2011 saw the PSI ending with more of a whimper than a bang, as the November result was sandwiched between two lacklustre results. “While the PSI has now remained in positive territory for 26 consecutive months, it has struggled to push any higher than moderate levels of expansion. The results for December and October indicate that the sector may struggle for stronger expansion in the near future. Bank of New Zealand senior economist Craig Ebert said the December PSI gives a sense of ongoing progression, underscored by its employment component remaining in expansion territory. “This survey’s constructive view on staffing is encouraging, and corresponds with other surveys produced in the last couple of months, all signalling ongoing growth on the jobs front.” The BNZ – BusinessNZ Performance of Composite Index (PCI), which combines the results of both the PSI and PMI, returned to historical patterns with the two options for measuring the PCI (GDP weighted and free weighted) showing the exact same result of 50.7. This was mainly due the sub-indices for both options producing very similar values throughout. For the first time since August 2011, only three of the five sub-indices showed expansion […]

Economic directions signalled by the Prime Minister in his first major speech of the year will be welcomed by enterprise, says BusinessNZ – and now they need to be acted on. Chief Executive Phil O’Reilly says relying on a few major reforms to turn the economy around is not realistic and there will be agreement that a better policy is to ‘do a hundred things well’. “The 120 initiatives signalled in the Government’s Economic Action Plan may not be individually ground-breaking, but if all are executed well, together they will bring momentum towards a more competitive economy. “Work towards a stronger high-tech sector and the establishment of the Advanced Technology Institute, and reforms in areas such as industrial relations, ACC and the Resource Management Act will add up to help boost competitiveness and growth. “It is encouraging to hear the Government’s continued commitment to deliver on the Economic Action Plan. “The business community is expecting a second term national Government to move on and execute the plan with pace.”      

The Reserve Bank of New Zealand (RBNZ) needs to respond to unorthodox monetary policy implemented elsewhere if we are to see an export lead recovery this year say the New Zealand Manufacturers and Exporters Association (NZMEA). This morning the Reserve Bank announced an unchanged Official Cash Rate and no plans to match measures used in other countries – this will continue to damage our export sector via an overvalued exchange rate. NZMEA Chief Executive John Walley says, “Around the world more money printing and other unorthodox monetary policy measures are already signalled and the policy divergence between the RBNZ and the Federal Reserve is manifest in the jump on the cross rate today. For exports to grow New Zealand must also take action on currency overvaluation.” “The longer we run current account deficits, the more pain it is going to take to rebalance our economy.” “Credit Suisse are already predicting that the United States Federal Reserve will print more money this year and we have seen cheap money in Europe re-fuelling the carry trade.” “If the policy path chosen in New Zealand continues to ignore these developments, our tradable economy will continue to contract.” “Interest rates that match those of our trading partners and other inflation control approaches that target non-traded inflation rather than headline inflation would be a good place to start.”  

David McConnell, chair of ATEED (left) chats to Prof Torger Reve By Kevin Kevany Could this be ‘the dawning of the Age of Competitiveness’ for New Zealand? The omens are good at year-end 2011, with all of the right signals suddenly lighting up and a passionate advocate of the need for a country to be both competitive and ‘attractive’ to succeed in the rapidly maturing global world trips through Auckland. That’s Prof Torger Reve, a leading thinker and doer, when it comes to his homeland Norway. He sees interesting parallels between his country and our own which made for a stimulating discussion after his presentation to the 14th Annual Global Conference of The Competitiveness Institute (TCI) held in early December, under the aegis of ATEED (Auckland Tourism, Events and Economic Development). Prof Reve is one of approximately 3,000 leading practitioners ‘action people’  focused on the role of competitiveness, ‘clusters’ and innovation, belonging to that ‘knowledge platform’, who challenged New Zealanders to get with the global plan. The world has moved on from whingeing about manufacturing moving to the East, or our North. He’s predicting it could go to the Middle East next. Oil-rich Norway, encouraged by the likes of Reve, isn’t resting on its petroleum treasures and has already ‘clustered’ itself around existing – and dating – strengths to enjoy the lowest unemployment rate in the world and the highest GDP per capita. They also have the highest labour costs in the world. So they clearly know what competitiveness is all about. No debates about lifting the minimum wage there. And they are prepared to share with a country that has many similarities, or as Reve notes, one that is also: small, beautiful, blessed with resources, and remote. Given there are currently signs that the RWC win on sheer guts […]