Editorial

Hamilton and Waikato first to enjoy ‘Warm White’ LED street lighting

Hamilton and Waikato drivers and residents are the first in New Zealand to experience unique warmer streetlights that reduce spillover glare into houses, are less harsh on the eyes and more energy efficient. Over 15,000 new street luminaires have been custom-made by Philips for Hamilton and the Waikato’s conditions, with half already in place and the rest being installed by the end of the year. While numerous districts throughout New Zealand have replaced older HID lights with LEDs, Hamilton and Waikato are the first to specify a 3000 Kelvin luminaire which provides an atmospheric form of ‘warm white’ lighting. This is a less harsh and more welcoming light compared to the more common 4000 Kelvin LEDs which produce a cooler blue-white light similar to daylight. As a fast-growing city, many of Hamilton’s major arterial roads lie in residential areas with high housing density. The lighting must both provide safety for drivers while not spilling over into people’s homes. In addition, New Zealand street light poles are often more spaced out than those in other countries so light has to reach between poles but not outwards or upwards towards homes. The $7.2 million project, funded by the NZ Transport Agency with contributions from Waikato District and Hamilton City Councils, covers all roads throughout the council areas and is scheduled for completion in December. It is being managed by the Infrastructure and Waikato Alliances, a strategic partnership between the councils and Downer, with Cory’s supplying 16,000 Philips ‘Road Grace’ luminaires. Over 9,300 existing lights will be upgraded on the two council’s P category residential roads and 5700 along higher volume V category roads. The new LEDs fit into existing street light poles and infrastructure, are more energy efficient and require less maintenance, with Hamilton expecting to save over $250,000 in reduced power […]

Synlait Palmerston North officially opened

“We’re very excited to be opening Synlait Palmerston North, which is home to our new Research and Development Centre,” says John Penno, Managing Director and CEO. “We have some major opportunities in front of us. With the strong team and partnerships we’ve got in place to lead liquid innovation within our business, we won’t miss a beat,” he says. Vice Chancellor of Massey University, Professor Jan Thomas, opened the facility and highlighted the important new relationship between Synlait and the university. “The establishment of Synlait’s new Research and Development Centre at Massey’s Manawatū campus is an excellent example of industry and the university collaborating closely to achieve real, tangible outcomes,” says Professor Thomas. “Strategic partnerships like these are vital if we are to start and grow new industries, create new jobs, and to remain competitive in the global marketplace. Massey University is New Zealand’s premier provider of food research and education, and at the forefront of pioneering such partnerships with the food industry.” she says. Synlait Palmerston North is a partnership with Massey University and FoodPilot, one of the New Zealand Food Innovation Network’s four hubs. The Palmerston North team will primarily concentrate on innovative dairy liquid product development, as well as supporting processes and technology. They will also play an important role in developing innovative export-orientated cream opportunities that leverage Synlait’s upcoming $125 million advanced liquid dairy packaging facility at Synlait Dunsandel. Synlait plans to double their investment over the next two years, having committed around $7 million to research and category development in the current financial year. They will be investing around $2 million on additional equipment for the FoodPilot facility, which can be used by others. Synlait currently has around 35 staff members working within the Research and Development Team, but this will continue to grow as […]

Chamber welcomes funding for Canterbury in Budget

The Canterbury Employers’ Chamber of Commerce has welcomed the announcement in the Budget of the delivery of Labour’s election promise of a $300m acceleration fund for capital investment in Christchurch rebuild projects, says Canterbury Employers’ Chamber of Commerce CEO Leeann Watson. “This funding is a welcome boost for Christchurch, with several projects strong candidates for acceleration, such as the Multi-Use Arena and the Metro-Sports Facility”, Ms Watson said. The Chamber has made clear in its submissions on the Christchurch Council’s LTP that businesses wish to see a strong pathway indicating investment in infrastructure to ensure we are on the events calendar again in Christchurch. The Chambers’ hope is this announcement will go some way to ensuring this is carried through in the LTP. “Business and private investors need certainty around these key anchor projects. This allows them to make their own investment decisions and bring jobs and growth to the Canterbury region.” “We are also pleased to see the investment of $62m in new capital for the Christchurch Schools Rebuild programme. This will be a welcome boost to both the education of our future skilled employees and extra stimulus for the Canterbury economy.” The confirmation of the Government’s commitment to the R&D tax credit for business is also good, says Ms Watson. “R&D tax credits will stimulate investment because innovation is a key to New Zealand growth. It clarifies and provides a more easily understood structure for businesses to invest in R&D.” The Chamber is also heartened to see the Government sticking to its fiscal targets. “It’s pleasing that we are seeing continuing responsible management of New Zealand’s finances. This will ensure we can continue to sustainably grow,” says Leeann Watson.

Budget impact on Exporters and Manufacturers

The 2018 Budget’s allocation of $1 billion towards R&D tax credits will be welcomed by exporting and manufacturing firms. Catherine Beard, Executive Director for ExportNZ and ManufacturingNZ, said innovation support was particularly valued by exporters and manufacturers “Setting up a tax credit scheme in addition to the support available through Callaghan Innovation will increase the support available for business. “While the firms that were getting Growth Grants under the Callaghan Innovation scheme were very happy with that support, there were a large number of companies that were getting little or no support. “This new approach should be more broadly targeted and we hope it will accelerate business investment in R&D across the board. “ExportNZ and ManufacturingNZ are working with industry and officials to ensure we get the scheme to be as effective as is possible for both the large and small businesses we represent. “Exporters will also be supportive of additional funding going to the Ministry of Foreign Affairs and Trade in these increasingly troubling times when it comes to talk of trade wars, and higher tariffs and non-tariff barriers. “New Zealand officials work hard on behalf of exporters and as a small country they have to do it with fewer boots on the ground, so this boost will be welcome. “With regard to greater investment in the Pacific to the tune of $714 million, ExportNZ and ManufacturingNZ would want to ensure that this is quality spending. “By ‘quality spending’ we mean that New Zealand firms are given good opportunity to tender for any building or infrastructure projects and that tenders are let on the basis of quality rather than cheapest price. New Zealand firms can compete on quality products and services and the Pacific Islands need quality that will last the distance and be enduring solutions. “Spending in the […]

Budget 2018 has no action on skills

The Industry Training Federation is disappointed to see no new investment in on-the-job training and apprenticeships in Budget 2018. Skills shortages are rampant, employment is high, technology is changing, the workforce is aging, and there are a lot of houses to build. Employers will need support to train workers in that industry and many others. New Zealand’s Industry Training Organisations are supporting industries to upskill. 25,000 employers across New Zealand are supporting 148,000 trainees and apprentices to gain skills and qualifications on-the-job across a wide range of industries. “Workplaces make excellent classrooms, and employers make excellent teachers” Mr Williams says. “Employers carry the bulk of the costs, subsidies are vastly lower, trainees and apprentices are taxpayers with jobs, industry gets the skills it needs, and every dollar supports training, not buildings and student loans. “We get that this is just one Budget, and that the Minister is progressing a series of reviews, including of vocational education. However, Labour’s Future of Work Commission recognised the need to upgrade the skills of the workforce through life-long education and training, delivered through the workplace. This is an international wave, and critical in the face of technological change. “Traineeships and apprenticeships turn workers into skilled workers, secure the future of industries, and create thriving and prosperous communities. This is a disappointing day for us.” Mr Williams says.

Budget 2018 and business

BusinessNZ Chief Executive Kirk Hope said some of the big ticket items in the Budget would help support business growth. “An investment of $28 billion over 10 years in Auckland transport will improve infrastructure in our largest city, helping support the ability of business to grow and employ more. “Large investments, in the Provincial Growth Fund and the Green Investment Fund, will also support the ability of businesses to grow and innovate using new technologies. “And the establishment of an R&D tax credit will boost the support available to businesses that need to invest in innovation to become more competitive.” Mr Hope said other spending, including $3.9 million to counter major cyber threats or events, was well-placed to address business vulnerabilities such as cybercrime. He said other spending items were less obviously positive for business. “The Budget allows full tax deductibility for racing industry bloodstock. Full capital tax deductibility helps to increase investment in technology, capital and grow productivity, which is important for all businesses. Business believes capital deductibility should be available to all businesses and industries, not just racing. “The Budget also announces a new unit to oversee councils’ consistency of compliance with the Resource Management Act. This may help address some of the RMA’s problems, however council inconsistency is not the only or most significant problem with the RMA. Business continues to seek fundamental reform to this Act rather than a new compliance unit or other marginal changes.” And from the EMA…………………… Budget 2018: Long on welfare, short on productivity Budget 2018 announced today revealed that the country’s books are in good order and the Government intends to maintain surpluses over the coming parliamentary term. In his first budget, Finance Minister, Grant Robertson, predicted continuing growth of 3.0 per cent, along with a surplus of $3.1 billion […]

Employment Bill an attack on the rights of non-union workers

The Employment Relations Amendment Bill is an attack on the rights of non-union workers, BusinessNZ says. Speaking to the select committee considering the Bill, Chief Executive Kirk Hope said it would give undue powers to unions with far-reaching consequences. “It would force employers and employees into collective agreements against their will. This is a breach of international conventions that say bargaining should always be voluntary. “It would force collective coverage on people who weren’t union members. For example, all it would take is two people in a retail store to join a union and this would let unions claim collective coverage of the whole retail chain. “This Bill would let union officials into any workplace without permission to recruit members. “It would breach employees’ privacy by requiring employers to pass on their details to the unions. “It would reduce the chance of getting a job using job trials.” Mr Hope said overall the Bill would take away a lot of flexibility from workplaces, increase costs and make it harder to employ people. “The modern workplace relies on flexibility and collaboration and trust for its success. Unfortunately this Bill would reduce flexibility, collaboration and trust. “This Bill should not proceed in its present form.”

EMEX 2018

Great to see SpeedMeets in full swing! The next John Britten or Bill Gallagher in the making right here at EMEX 2018

Reports of smelter demise greatly exaggerated

The BusinessNZ Energy Council welcomes the reopening of a potline at NZ Aluminium Smelters at Tiwai Point. The Line 4 quarter potline at Tiwai Point was closed in 2012 as production there became unprofitable due to low global aluminium prices and high electricity spot prices. Now the potline is to be reinstated as a result of a longer-term fixed-term power agreement with Meridian Energy. BusinessNZ Energy Council Chair David Caygill said the agreement indicated the strength and competitiveness of the energy market in New Zealand. “It shows New Zealand-produced electricity being delivered in a workable competitive market, supporting industry growth. “Reinstatement of the potline will enable increased production by NZAS and more jobs for Southland. “It shows how New Zealand is a great country to establish and expand new manufacturing operations given our high proportion of renewable electricity generation.” Aluminium produced at NZAS produces ten times less carbon than that made in a country with coal dominant generation profile. “The arrangement announced today, underwritten by Meridian and supported by contracts with Contact, Genesis and Mercury, shows that New Zealand is a great place to invest. “New Zealand’s renewable electricity based market provides more confidence for large users than many other countries internationally – a real competitive advantage for this country on the world stage,” Mr Caygill said.

Updated ATAP project announced

A realigned version of the priority transport projects for Auckland to meet the city’s broader needs is to be commended, says the EMA. The Auckland Transport Alignment Project 2018 announcement confirms the projects the Government and Auckland Council will prioritise in the next decade, along with $28 billion funding required for these. “Auckland’s a growing city and it needs a transport network which supports this. We know congestion is stifling the city’s economy and productivity. Which is why we encourage the Government and council to keep the pressure on to streamline these projects and ensure they happen at pace,” says Kim Campbell, CEO, EMA. “We are heartened that using models such as public private partnerships will be used for some of the projects outlined today. “And there will be value capture benefits that will flow from this programme of work too. “While this announcement was silent on the use of congestion charging, it has made provisions for building more capability in public transport, light rail, which are necessary for a demand management system in the future. “We are pleased to see projects such as the East West link have been retained, if at a significantly reduced funding level. “However, one of our key questions for Government is how proposed changes to employment law will impact this programme of work? Projects such as these rely on the ability to have a flexible workforce, often using a vast number of contracted workers, yet there are legislative changes afoot which we believe will make this process problematic,” says Mr Campbell.

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