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Chamber of Commerce SouthlandBusiness CentreCorner Leven and Esk StreetP.O. Box 856, Invercargill

Phone: 03 218 7188Fax: 03 218 7927Email: office@commercesouth.comWeb: www.commercesouth.com

Designed and Collated by:Market South | 178 Spey Street | InvercargillPh: 03 214 4455Email: info@marketsouth.co.nzWeb: www.marketsouth.co.nz

In This b2b:

Budget 7 WHK look over the shoulder at what changes will affect you

Patents and Protecting your IP 10 That great idea you want to tell everyone about today? You should read this first

Import and Export 14HSBC looks at why optimism is on the up

Young Enterprise 15 Half way for this year’s high school entrepreneurs

City Manager Richard King looks at what this means for Invercargill buildings

The Shaky ISleS

IS ThaT Copy “rIghT”? or aT leaST okay To USe?

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Focus Technology Group looks at what the new file sharing laws mean for business

BUSINeSS 2 BUSINeSSEdition 3, 2011

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How can your business harness the power of technology to get ahead?

Could new technologies really change the way you do business?

ON BUSINESSTechnology Forum Wednesday 3rd August 2011

with guest speaker Simon

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Find out more and book your place now at http://techforum.focus.net.nz

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TRAININGSEMINARS&fit

july 2011

Speaking Confidently in Meetings & Committees Category: Personal Development26 Jul | 9.00am - 4.00pm

Meetings and committees are an integral part of many workplaces, and this seminar will help you to identify how they work and how you can be a positive and active participant in them.

august 2011

Public Speaking Skills Category: Business Administration9 Aug | 9.00am - 4.00pm

Most professional workplaces require staff to give presentations, but for many this can be a stressful experience. In this seminar you will learn the skills and strategies to speak confidently and clearly in a workplace environment.

Procedural Fairness and Disciplinary Process Category: Business Administration15 Aug | 9.00am - 4.00pm

To ensure that all levels of management understand and observe the rules of procedural fairness at all stages of the disciplinary procedure.

Professional Report WritingCategory: Business Administration22 Aug | 9.00am - 4.00pm

The ability to write reports is one of the most useful skills you can acquire. To be a good report writer means you must be competent at describing and analyzing situations and people.

Sales - Stage 2Category: Business Administration23 Aug | 9.00am - 12.30pm

Part two of this two part programme sets out the essential skills to help your sales staff reach their full potential.

Twitter TrainingCategory: Business Administration30 Aug | 9.00pm - 12.30pm

What is Twitter and what’s all the media fuss about? Why should I consider using it for business and are there any benefits?

Full course descriptions online atwww.commercesouth.com under training.Our Training Presenters & Partners include:OSEA, WHK, IRD, ACC, AWS Legal, Pairman IP

F ollowing the devastating Christchurch earthquakes, a Royal Commission of

Inquiry is currently sitting in Christchurch to look at the causes of why some buildings collapsed. It is unlikely that there will be any changes to the Building Act that strengthen current requirements until the Commission’s findings are known.

This however has not prevented many local authorities raising question marks over the adequacy of their current earthquake prone building policies. A visual inspection of Invercargill’s Central Business District, like many other provincial cities, shows a large portion of our ‘heritage’ buildings would pose a significant risk to the safety of the occupants should we be subjected to the effects of a significant quake.

In October 2007, Associate Professor Tim Davies of the University of Canterbury in an address to the Otago Regional Council, warned of the effects of a major shift in the alpine fault which has not ruptured since 1717 AD. Highlights of his talk included:

The next earthquake centred on the alpine fault should begin in South Westland and will probably have a magnitude of 8+.

The length of the rupture will be up to 400km and will last about two minutes.

This will be considered a ‘great earthquake’ not simply a strong one. The force will result in a horizontal earth shift of up to 8 metres and a vertical displacement of 4 metres.

Whilst the effects will diminish eastward, the state of some of our heritage buildings does not inspire confidence.

The Invercargill City Council’s current policy

is to require buildings to be strengthened up to one third of the current earthquake code where there is a change of use and if it is practical to do so.

Until the Building Act is changed the City Council is writing to the owners of buildings that currently show outward signs of distress recommending they obtain an engineering report on the safety and structural integrity of the building.

For heritage building owners who will be facing a large increase in insurance premiums, if in fact insurance will be obtainable, it may be a very costly exercise.

If, in the future, earthquake standards are increased for older buildings, it may be cheaper to demolish and rebuild which will raise the debate about what heritage buildings the community values and who should pay?

Richard King City Manager of the Invercargill City Council.

VIEWPOINT: EaRThquaKE PRONE BuIlDINgS

Interesting and informative speakers delivering easily digestible pearls of wisdom for your business. First Wednesday of each month at the BNZ Partners CentreFor a list of speakers see www.commercesouth.com and click on Biz Bites logo

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The inaugural BNZ Biz Bites lunchtime speaker series was held on 1 June, with guest speaker Brendan harrex opening the series for guests.

Around 25 people attended the first session, hosted at the BNZ Partners Business Centre.

BNZ Partner, Kirsty McNeil has organised these short, one hour sessions after seeing a need within her clients for opportunities to meet and mix with other business people on a regular basis.

With the meetings slotting in comfortably to many people’s lunch breaks, Biz Bites is a convenient way to stay up to date with developments in Southland business and to make new contacts from a wide cross section of like-minded people.

Brendan spoke on the Harrex Group’s approach to planning for business succession. Part of this related to developing methods to help owners and managers to take a step back from the day to day hands on running of the business – with a view to making time to plan and organise structures to help that business grow and develop. Quite some task in the short space of his 40 minute presentation, but certainly achieved, judging by the very positive comments from guests after his talk.

Each session is limited to around 25 guests, so please book quickly for the next one which will be held on 6 July, with Joanne O’Connor from NZIM the guest speaker.

To register you can call the Southland Chamber Of Commerce on 03 218 7188 or email office@commercesouth.com

BNZ BIZ BITES REVIEW

guest speaker Brendan harrex.

It was a good turnout for the inaugral Biz Bites Meeting at the BNZ Partners Business Centre.

FOUR REASONS TO CONTACT BDO

BDO Invercargill Lexicon House, 123 Spey Street T: 03 218 2959. E: invercargill@bdo.co.nz W: www.bdo.co.nz

� Dave Mitchell� Greg Thomas� Diane Thornbury� Tim Ward

AUDIT • TAX • ADVISORY

FOUR REASONS TO CONTACT BDO

BDO Invercargill Lexicon House, 123 Spey Street T: 03 218 2959. E: invercargill@bdo.co.nz W: www.bdo.co.nz

� Dave Mitchell� Greg Thomas� Diane Thornbury� Tim Ward

AUDIT • TAX • ADVISORY

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SPOTlIghT ON SOuThlaND BuSINESS: EaT ON WINDSOR

If there’s ever a case of a one word name summing up a business, then EaT on Windsor come close to the top of that list.

EAT on Windsor is a licensed café that prides itself on the quality and presentation of their fare, but also with a firm focus on the overall atmosphere and complete dining experience.

EAT rate themselves at the top end of café/restaurant dining in Invercargill. Come in and make your own decision, you won’t be disappointed.

Since a chance meeting of EAT’s owners at Queenstown’s legendary Gourmet Express back in the 1990’s, Mark and Shelley have refined the art of food through several restaurants, possibly the most well known

being The Rocks on Dee St and Shop 5.

After selling The Rocks and Shop 5 - EAT became a reality in the heart of the Windsor Village, with the benefit of a load of experience within the industry with a loyal and growing clientele.

Besides EAT’s café and evening dining, Mark and Shelly have a whole lot more on the menu for customers, including their ever changing Blackboard Special offers.

Events at EAT include breadmaking, and live Jazz music on Friday from 6.30pm till 8.30pm.

EAT caters for everything corporate – corporate breakfast, lunch or dinner,

corporate functions and meetings, corporate aftermatch, corporate cocktail, corporate private party, corporate gentlemen and corporate women.

EAT is available to be booked out for any event and they’d love to talk to you about making your dining experience or event, a standout success.

EAT on Windsor are at 38 Windsor St, Windsor, Invercargill. For more information, phone Mark or Shelley on (03) 217 7722 or email dine@eatonwindsor.com.

Shelley White and Mark Elder

FOUR REASONS TO CONTACT BDO

BDO Invercargill Lexicon House, 123 Spey Street T: 03 218 2959. E: invercargill@bdo.co.nz W: www.bdo.co.nz

� Dave Mitchell� Greg Thomas� Diane Thornbury� Tim Ward

AUDIT • TAX • ADVISORY

FOUR REASONS TO CONTACT BDO

BDO Invercargill Lexicon House, 123 Spey Street T: 03 218 2959. E: invercargill@bdo.co.nz W: www.bdo.co.nz

� Dave Mitchell� Greg Thomas� Diane Thornbury� Tim Ward

AUDIT • TAX • ADVISORY

Mark Elder 18 years experience Featured in various magazine articles (Cuisine, North & South, Hospitality) Fully Qualified Trade Certificate Professional Chef 11 Years Consecutive Hallmark of Excellence Award for Lamb & Beef Top 5 Finalist for Nationwide TV 2 Programme Hell’s Kitchen

Shelley White 24 years experience in the industry Absolute master of anything front of house

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SOuThlaND BuSINESS BuCKINg ThE TREND

The latest National Bank regional trends survey for the closing quarter of last year provided more doom and gloom forecasting, indicating that although Southland had a 0.7 per cent increase in general economic movement, there have been many indicators that have declined during the period, giving some southland businesses reason to fear more stormy weather ahead.

Southland has experienced a dramatic drop in rural real estate sales – declining 55 per cent, and a significant increase in unemployment rising to 1.4 per cent, taking Southland to a dismal three-year high of 3.1 per cent.

We wanted to broach the subject of business trends in Southland, by talking with a business built on supporting business; Ricoh Southland. It would seem that ‘on the ground’ the attitude varies from national confidence trends.

“As businesses grow, so to do their demand for our services; we are a great barometer for what is ‘really’ happening in the business community,” comments Reece McDonald.

“We are finding more and more our clients are wanting to streamline their operations; they are looking for service as opposed to a product, and this has brought about enquiry from new areas as we are the only locally based provider. Access to service and a quick turn around has become increasingly important.”

Reece also comments on new trends in purchasing decisions as businesses are looking at ways to operate as efficiently as possible but also in a more sustainable way. Ricoh nationally have carved new ground in this arena as the only carbon zero copier supplier. “Protecting the environment is becoming more important to Southland

business, if it isn’t going to cost more to be sustainable locally businesses are opting to be greener in their office operations.”

Reece himself has employed business development manager for Ricoh Southland, Quinton Sharp, to assist in the growing demand for servicing Southland businesses and is in the market for another technician to add to his team.

Whilst nationally we are hearing a lot of talk about bracing for the imminent storm, it would appear that in Southland businesses are keeping buoyant and bucking the trend.

White Heronfunction and catering centre

White Heronthe

Ph 03 216 607 Fax 03 216 6077 Email functions@thewhiteheron.co.nz

Web www.thewhiteheron.co.nz

Office lunches After 5 functions Morning, afternoon teas & suppers

White Heronthe

quinton Sharp and Reece McDonald.

WE’RE RIGHT IN THE THICK OF THINGS

Our experts are based right here in Southland, so we can be there when you need us – wherever that may be!

Call Southland’s only local photocopier and printer specialist: Phone: (03) 211 0968 Email: admin@ricohsouth.co.nz

“ It would seem that ‘on the ground’ the attitude varies from national confidence trends.”

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after the usual pre-budget comments there was little to be surprised about when the official budget was released. Election year budgets are traditionally a “lolly scramble”, but the 2011 budget lived up to its billing of fiscal prudence.

The critical areas of the budget that will have an impact will undoubtedly be the signalled changes to KiwiSaver, Working for Families and potential changes to the livestock tax regime.

The KiwiSaver regime changes weren’t as far reaching as anticipated, with the expected scrapping of the $20 per week contribution being softened to a reduction to $10 (from 1 July 2011), and the maintenance of the $1,000 kick-start. However, the removal of the Employer Superannuation Contribution Tax exemption for the minimum contributions (currently 2%) from 1 April 2012 means that not all of your employer contributions will arrive in your KiwiSaver accounts. Rather, some will be diverted as tax, the degree depending on your marginal tax rate (up to 33%). This means the 2%

employer contribution could become as low as 1.34% in reality. The expected increase in the minimum contribution rate to 3% has been deferred until 2013.

Changes to Working for Families Tax Credits (WFFTC) were in line with expectations – a very minor change in the threshold (now $35,000) and a quicker abatement rate (25%, rather than 20%, for every dollar of income), meaning that higher income persons will receive either less, or no, WFFTC.

The Government also announced a review of the livestock valuation rules. In particular,

the process allowing the movement between the two common valuation methods (herd and national standard cost) where tax advantages can sometimes be achieved. This could have a material affect on the ability to claim tax deductions on stock write downs going forward, so we await with anticipation the finer details on this proposal.

WhK Tax Consulting Contact: Aneesha Varghese Tax Director Ph: 03 211 33 55 Mob: 021 802 187 Email: Aneesha.varghese@whk.co.nz

BuDgET 2011 – WhaT DOES IT MEaN FOR yOu?

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RuRal BuSINESS BRIEFS

WhO’S FOOTINg yOuR BIll??

a hot topic in the news at the moment is the controversial ‘Copyright amendment act’ (Infringing File Sharing) that comes into force on 1 September 2011.

Copyright holders such as musicians, television networks and movie production companies have the right to force Internet Service Providers to issue an infringement notices against their customers that are caught or suspected of infringing copyright via file sharing technologies.

The act has a “three strikes” regime which requires your ISP to send you three warnings.

1. A detection notice is sent out outlining that copyright has been illegally infringed.

2. A warning notice is sent out with a further request to stop if users are still in breach of copyright after the first notice is sent out.

3. Finally, an enforcement notice is then sent out outlining that the copyright holder is exercising enforcement of their rights if copyright infringement is still happening.

After the ‘third strike’ the copyright holder can apply for damages up to $15,000.00 or for the suspension of the infringer’s internet services.

An important point to note is that these infringement notices are taken out against the Internet account holder not the user on your network that is sharing files.

As the account holder you may challenge an infringement notice but this must be done within 14 days of the date on the notice to which you are challenging.

Fortunately there are measures that can be put in place in order to prevent users on your network from accessing file sharing websites and from downloading infringing material off the Internet.

End of network software products, such as WebMarshal, allow system administrators to restrict internet access and track internet usage on your network.

A firewall device installed at your Internet gateway can also provide restricted Internet access to users.

More information about the act can be found at www.legislation.govt.nz

If you have concerns about the safety of your network don’t wait until it’s too late – act now and contact Focus to discuss your security options!

WE’LL

TAKE CARE

OF YOUR

TECHNOLOGY.

So you can get

on with running

your business.

leave it to us

P: 03 211 0099W: www.focus.net.nz

A: 176 Spey Street, Invercargill

technology group

FaRM PuRChaSE lENDINgTIghTENED

The Reserve Bank has restricted the amount of capital trading banks can lend to farmers for land purchases, by increasing the Core Funding Ratio for banks to 70% from 65% (this means the banks will require more collateral).

Farm debt expanded by 31% between January 2008 and August 2009, rising from $35.9 billion to $47.1 billion. More recent figures show that in September 2010 it has fallen back from 48.2 billion to $47.4 billion.

In 2010, primary industry-based earnings

(from forestry, fishing and agriculture) were about $27 billion.

laTEST PRODuCERS PRICE INDEx

The rise in agricultural commodity prices is reflected in increases across the board for Statistics NZ’s March quarter producers price index (PPI). The PPI measures changes in prices received by producers (known as output prices) and changes in the costs of production (input prices).

Effectively it measures prices received on farm which, naturally, reflects on how much manufacturers have to pay to further process

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A glint in the eye for SouthlAnd printing compAny

craigs design and print have continued their well established track record of industry accolades, by winning gold at the new Zealand pride in print awards hosted in Wellington in may.

This win takes Craigs total of gold medals from these awards to three, counting previous wins.

The latest gold was awarded for an in house brochure Craigs Design and Print developed to showcase their services and products to customers, winning the “Self Promotion” category, over competition from around New Zealand.

Rodger Wills, Managing Director, sees this latest win as confirmation that the firm is pushing all the right buttons for customers and is thrilled for the recognition of his team.

Mr Wills said that this latest medal will take pride of place beside their highly commended placings from 2003 - 2004 and 2010 and the gold medals awarded in 2005 and 2007.

He commented that any award received by the company really confirms the outstanding pride his staff place on the quality of the work produced for customers.

rurAl buSineSS briefS (continued)

what are usually farm products such as a lamb or raw milk.

The main statistics are:

in the year to the March 2011 quarter, dairy cattle farming prices jumped 22.5%. During the same period, dairy product manufacturing prices increased 7.8%;

meat and meat product manufacturing prices increased 18.9% in the year to March 2011;

wool prices rose 14.9% in the March 2011 quarter; and 55.1% in the year to March 2011; and

export prices for logs increased 8.8% in the year to March 2011 quarter.

fonterrA pilot fArm in brAZil

Fonterra Co-operative Group is in the final stages of plans to purchase land to develop a pilot dairy farm in Brazil. This is in line with its strategy to establish best-practice dairy farms in the fast growing economies of Asia and Latin America.

Fonterra is currently developing a second dairy farm in China and is conducting a feasibility study into a joint venture dairy farm in India.

New Z

ea

laN

d Pride iN PriN

t a

wards

www.craigprint.co.nz

Yet again, Craigs Design & Print soars above its competitors and continues to show its printing excellence in collecting its third Gold Medal at the prestigious 2011 New Zealand Pride In Print Awards held in Wellington, May 2011 – just think of it as the printing world’s Oscars and you’ll understand why we’re so chuffed!

www.facebook.com/craigsdesign

from

crowdstand outthe

Gold Medal Winner: Category – Industrial Development

Contact us today for your FREE copy of our award-winning Promo Book!

Stand Out from the Crowd!invercargill 122 Yarrow Street PO Box 99, Invercargill 9840 phone +64-3-211 0393fax +64-3-214 9930email info@craigprint.co.nz

queenstown branchPO Box 117, Arrowtown 9351phone +64-3-451 1360 mobile 027-475 5369email qtown@craigprint.co.nz

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Do you have intellectual property rights that are not being used effectively?

Many business owners are unaware of the valuable assets they own. They may only realise the value of a right in a product when a competitor starts selling a similar product and, after consultation about their options for action, realise that they have left it too late to formally protect their product.

One golden rule in the area of protection of ideas is that, prior to disclosing any product, the owner should think carefully about whether the product could be protected by way of a formal registration. I am thinking specifically about rights to new ideas and the ability to obtain a patent registration for an invention.

A patent protects the functionality of a

product and is a relatively wide form of intellectual property right. A patent is registered at The Intellectual Property Office of New Zealand and anyone infringing the patent can be sued.

Unfortunately many developers and business owners do not realise that once a product has been publicly disclosed, it is no longer possible to obtain a patent for it. The right has been irretrievably lost. This is due to The Patents Act 1953 which clearly states that to be patentable, an invention must not have been publicly disclosed prior to filing an application for protection.

So, before disclosing your idea to a potential manufacturer, publishing marketing pamphlets, writing newspaper articles, attending conferences, agricultural events or selling the item, speak to a patent attorney about possible opportunities for protection.

Even if you do not decide to file a patent application, there are ways of maintaining secrecy for as long as possible, such as by using confidentiality agreements.

Initial consultations are free from Pairman IP and would provide you with the reassurance that your actions are not going to compromise your business.

Jane Pairman, Pairman IP Contact details: jane@pairmanip.co.nz 03 981 6196

Trumpcard is pleased to announce that the pilot launch of its fundraising loyalty network in Invercargill has been successful and the company is now looking at growth strategies, both within the region and further afield.

The Trumpcard network uses a loyalty programme to harness the power of consumer spending in order to raise funds for a range of local charities, clubs and schools.

The programme operates over the EFTPOS network, allowing participating outlets to both allocate rewards to and redeem rewards from their customers in a straightforward manner.

As a brand new concept using purpose-developed software, a pilot phase was required to ensure the system would operate efficiently for all parties involved.

This pilot phase has been running in Invercargill since February, with around 60 local businesses taking part, including a number of restaurants, taverns and hotels operated by the Invercargill Licensing Trust.

“We really appreciate the support of all the local businesses who have taken part in the pilot phase,” says Trumpcard CEO Neil Selman.

“The pilot has tested our systems and provided us with feedback from the parties

involved. As a result of the pilot we have made a couple of tweaks that will enhance our business model and ensure its long term success; we’re very excited about scaling things up,” adds Mr Selman.

The focus for Trumpcard will now be on raising consumer awareness and growing the network, with the addition of new outlets throughout the Southland region.

“We’ve already had a number of businesses approach us asking to join but had been holding off expansion until the pilot phase was completed and the model thoroughly tested, but now it’s full steam ahead extending the range of participating outlets to cover all merchant categories,” says Mr Selman.

A number of other exciting developments for the network are also in the pipeline.

Trumpcard’s Southland launch is to be followed by a roll-out across the country.

The company’s long term goal is to be a significant contributor of fundraising revenue for non-profit organisations throughout New Zealand.

For more information on Trumpcard go to www.trumpcard.co.nz

DON’T ThROW aWay yOuR IDEaS!

lOCal PIlOT lauNCh COMES uP TRuMPS

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On 1 april 2011 there were significant changes made to gST involving business “land” transactions.

The reason for the changes was that a number of transactions involving land, including the use of so called “Phoenix” fraud schemes was leaving the Inland Revenue Department (IRD) significantly out of pocket. This occurred where there was a secured creditor with a higher priority to the GST amount than the IRD.

The new Rules are compulsory and apply to business transactions involving the sale of land itself, or where land is a component of the transaction. The changes to the legislation also establish a very wide definition of what land is. The definition includes an estate or interest in land, rights that give rise to an interest in land and options to acquire land. This includes buildings on land and leases of commercial property but not regular lease payments.

After 1 April 2011, supplies consisting wholly or partly of land from a registered

person must be zero rated where the supply is:-

made to another registered person; and

the person acquires the land with the intention of using all or part of the land for the making of taxable supplies; and

the land is not intended to be used as a principle place of residence by the recipient or an associated party.

The important time for these definitions is the time of settlement. Under the old Rules it was the time of supply.

Purchasers must give to the Vendor a warranty stating at settlement they:-

are or expect to be a registered person;

are acquiring the land with the intention of using them for making taxable supplies;

do not intend to use the land as a principle place of residence.

This warranty will protect the Vendor from any liability regardless of the factual status of the Purchaser at the time of settlement, the Vendor will still be able to treat the transaction as GST zero rated.

If the Vendors retain the information provided and the information which has been given to them by the Purchaser is incorrect leading to the wrong GST treatment, then the IRD will look to the Purchaser for any payment of GST and penalty.

It is important that the parties understand their respective positions given the change in the legislation and we recommend obtaining this advice from AWS Legal. One firm, full service delivered exceptionally. Please remember, this information is designed as a guide only and shouldn’t replace the advice of your legal professional.

We welcome your comments: damien.pine@awslegal.com.

gST ChaNgES

A� ordable, QualityEmployment Law SolutionsFor HR advice, employment problems, disputes & personal grievances, Holidays Act, employment agreements, restructuring and redundancy.

For advice or an appointment contact Helen on:tollfree 0508 656 757 or mobile 021 756 809email helen@osea.org.nz

Full Access to Information and Business Services

Cre

8ive

504

9

Helen Young

Otago Southland Employers’ Association IncorporatedInvercargill O� ce, Cr Esk St & Leven St, PO Box 856, Invercargill 9840

Dunedin O� ce, 16 McBride St, PO Box 473, South Dunedin 9054

Specialist Employment Lawyer

12

Following the release of the 2011 budget, the Southland Chamber Of Commerce was delighted to have the opportunity to host one of the main architects of recommendations that formed the government’s financial policy for the coming year.

Kerry McDonald chaired the Treasury driven Savings Working Group, who did much of the hard work behind the scenes towards Budget 2011.

SCENE ‘N hEaRD aROuND SOuThlaND: KERRy MCDONalD luNChEON REVIEW

Recently, Chamber Of Commerce guests had an opportunity to tour the NZaS Tiwai Smelter including an overview of operations, from g.M. Ryan Cavanagh.

Teams gathered in May and presented their individual business plans at a “Dragons Den” held at the Elmwood Gardens Reception venue. In addition to this, the winning teams were named in these sections:

Business Card Competition Best Trade Stand Most Innovative Marketing Strategy Most Environmentally Friendly Product or Service Company with High Growth Potential Best Oral Presentation.

Regional Co-ordinator Joanne O’Connor, said the high standards and enthusiasm of the teams this year is very pleasing and that some cutting edge business concepts

have started to come to fruition as the competition reached the half way stage.

A full list of this year’s teams and their progress to date is on the Chamber Of Commerce website alongside the Southland sponsoring businesses. To see more go to www.commercesouth.com and look for the Y.E.Scheme link.

NZaS REVIEW

The lunchtime gathering at the White Heron Function Centre gave guests a unique chance of hearing Kerry’s thoughts on the state of the New Zealand financial landscape and its place within the world’s monetary woes.

As one of New Zealand’s top business advisors, Kerry’s credentials are numerous and to hear the raw truth of how New Zealand is poised for the next few years, devoid of political or media spin, was certainly an eye opening experience.

He told the group the economy was seriously weakened because of poor Government policies during the past 10 years, which allowed the housing boom to run unchecked, large incentives to invest in rental housing and a lack of response to the declining tradeable goods sector.

Because of this, NZ’s private and public debt - our borrowing and continued spending - places us on the same portion of a graph as occupied by Greece, Ireland and Portugal and was a shock for most to see.

His opinion that the public, simply don’t realise we are “eating next year’s seed and breeding stock” rung true with most in attendance on the day.

In a lighter vein, his reasoning that we’ll find it a hard challenge to match Australia’s growth pattern raised a few smiles – seems, in many ways we’re just a bit nice. Kerry drew the comparison between our two countries RMA practices and suggested that the very slow and tedious process in NZ simply wouldn’t be tolerated by our “get things done” colonial cousins next door.

Kerry mentioned on more than one occasion, every New Zealand family should read the SWG report, or at least the Exec Summary, for a pretty clear message of how we stand financially in 2011.

Not a lot of cheery news in his address, but certainly some genuine home truths, and a very worthwhile presentation for the 40 people who attended the function.

To view the SWG 2011 report start here www.treasury.govt.nz and search SWG. You can view Kerry’s PowerPoint presentation from the Chamber Of Commerce website at www.commercesouth.com

13

gENERal BuSINESS BRIEFS

“a PERFECT STORM” hITS NZ TOuRISM…

The NZ Hotel Council (NZHC) says recent NZ and international events have created “a perfect storm” that is having a big impact on their performance.

The “storm” refers to a number of local and global events that have all hit the hotel sector over a short time. The Queensland floods and the Christchurch earthquake were both significant events, but they’ve been surpassed by even bigger events like the Japan tsunami and the resulting reduction in Japanese, Chinese and South Korean visitors.

Add to that the strong Australian dollar and the dire UK economy… The NZHC says any one of these events would have sent a ripple through the hotel industry but having them all happen at once creates a major challenge for the tourism sector.

NZHC monthly statistics indicate that the first quarter of 2011 showed a national occupancy rate of 78.8% - similar to the same period in 2010. Outside of Christchurch, Queenstown was the most affected centre with an occupancy decrease of 2.9 points (79.6% 2010 to 76.7% 2011) for the quarter, and a 10.1% decrease in occupancy for the month of March 2011 from 80.6% in 2010 to 70.5%. Rotorua’s occupancy for the quarter was on par with last year (74.3%), but March results were also down 5.6% from 70.4% in March 2010 to 64.8% in 2011.

Regions that had occupancy increases included Nelson/Marlborough, Dunedin and Wellington.

Recently released April 2011 NZHC statistics showed Queenstown was down 7.1 occupancy points from 66.6% in 2010

to 59.5% occupancy in 2011. Other regions maintained occupancy levels similar to April 2010.

NZHC notes that travellers’ booking patterns in recent years have become much more last-minute and it seems that even an international event like the Rugby World Cup has not changed this trend.

…BuT aPRIl VISITOR NuMBERS REBOuND

Seasonally adjusted visitor arrivals increased 8% between March and April 2011.

This follows a 12% decrease between January and March 2011. Despite the overall recovery, visitor arrivals from Japan and Korea were half the level seen last April. Sharp declines in visitors from these countries began after the Christchurch earthquake, and before the devastating earthquake and tsunami in Japan.

In contrast, there were twice as many visitors from Malaysia compared with April 2010 (following the launch of more international flights between the two countries).

OVERSEaS STuDENTS: IMMIgRaTION ChaNgES

Changes (from July 2011) to immigration requirements for overseas students studying here include:

tougher student visa conditions around attendance and academic progress;

students showing Immigration NZ they have access to funds for maintenance;

strengthened requirements for sponsorship and financial undertakings;

extending medical and police certificate validity for PhD students, their partners and dependants - from 24 to 36 months;

eliminating the need for work visa holders to obtain a variation of conditions for training authorised by their employer as part of their job;

requiring (in most cases) that students study in NZ for at least two years before they qualify for Study to Work visas; and

a second Graduate Job Search visa for students who obtain a second, higher

qualification at bachelor’s degree or postgraduate level.

EMPlOyMENT: aPRIl JOBS - 8.5% INCREaSE…

The most recent SEEK New Job Ad Index showed an 8.5% increase in the number of new jobs in April. This is 29% higher than April 2010, and is the fifth consecutive month of growth.

This month’s growth is not driven by a rise in just one city; all regions have recorded sound performances. Christchurch posted a 9% increase, undoubtedly reflecting the beginning of the reconstruction activity, while Auckland grew by 8% and Wellington by 7%.

…aND EMPlOyMENT RISES SlIghTly IN laTEST quaRTER

NZ’s seasonally adjusted total employment rose by 30,000 (1.4%) in the March 2011 quarter, with increases in both fulltime and part-time employment (the rise in employment is mostly due to a rise in part-time work).

Employment rose for both men and women in the latest quarter.

On an annual basis, employment has grown by 39,000 – with equal growth in male and female employment. Contributing to this was an increase in the number of self-employed people during the year.

14

The 2011 Lion Foundation Young Enterprise Scheme recently took a step forward, with a record number of teams entered from across Southland and some from as far as Wanaka this year.

Teams gathered in May and presented their individual business plans at a “Dragons Den” held at the Elmwood Gardens

Reception venue. In addition to this, the winning teams were named in these sections:

Business Card Competition Best Trade Stand Most Innovative Marketing Strategy Most Environmentally Friendly Product or Service Company with High Growth Potential Best Oral Presentation.

Regional Co-ordinator Joanne O’Connor, said the high standards and enthusiasm of the teams this year is very pleasing and that some cutting edge business concepts have started to come to fruition as the competition reached the half way stage.

A full list of this year’s teams and their progress to date is on the Chamber Of Commerce website alongside the Southland sponsoring businesses. To see more go to www.commercesouth.com and look for the Y.E.Scheme link.

122 (/)115

(/)108 (/)

102 (/)

114 (-2)

140 (0)132

(14)125 (1)

123 (-1)

121 (-4)

121 (8)

116 (-6)

116 (-6)

114 (3)

111 (3)

109 (-1)

107 (0)

107 (-3)

104 (-5)

104 (-2)

101 (-5)

97 (-17)

Malaysia HK Egypt France UK Australia Germany Poland Canada USA MainChinaArgentina Vietnam Brazil Singapore UAE Turkey Indonesia Mexico KSA India OverallGlobalIndex

HSBC Trade Confidence Index 1H 2011 – global overview

Figures in brackets show change from 2H10

Young EnTErprISE

15

gLoBAL TrADE ConFIDEnCE HIgH DESpITE InFLATIon, SAYS HSBC SurVEY: Traders expect rMB to be a top 3 trade currency in 2011

Exporters and importers around the world remain optimistic about trade prospects in the next six months despite increasing concerns about rising costs, reduced profitability and volatile demand. The HSBC Trade Confidence Index held steady at 114 in the first half of 2011 compared to 116 in the second half of 2010.

Rakesh Bhatia, HSBC Global Head for Trade and Supply Chain, said: “In the face of inflationary issues and continued uncertainty in the global economy, our survey underscores the trade sector’s resilience to the rising prices of raw materials, wages and shipping services, interest rate hikes and a possible pullback of consumer spending.

“The HSBC Trade Confidence Index points to two important trends that have sustained confidence despite headwinds and will underpin the future of global trade; strengthened intra-regional trade and greater connectivity with, and in, the emerging markets. Greater China, in particular, promises to boost prospects for traders around the world.”

Commenting on what the results mean for the New Zealand trade sector, Gary Cross, Head of Trade and Supply Chain, at HSBC New Zealand, says: “Despite the increasing concerns that New Zealand’s largest trading partners have around rising costs, profitability and volatile demand, it is positive news for New Zealand’s importers and exporters that trade prospects for the next six months remain optimistic.”

Globally, trade health is sound with around nine in 10 traders expecting trade volumes (89%, 0), including their need for trade finance (92%, +3) and their access to liquidity (91%, 0) to either increase or hold at current levels in the next six months.

The HSBC Trade Confidence Index (conducted by research company TNS between February to March 2011) covers a total of 21 markets – including key economies in the Asia-Pacific region, MENA, Latin America, North America and Europe. It is the largest trade confidence survey globally. The current survey comprises six-month views of 6,390 exporters, importers and traders from small and mid-market enterprises on: trade

volume; buyer and supplier risks; the need for trade finance; access to trade finance; and the impact of foreign exchange on their businesses.

While the level of confidence was highest among the emerging markets of India (140), Saudi Arabia (132) and Mexico (125). Sentiment across traders in the world’s top export markets, namely, China (114), Germany (107) and the US (111), were also solid with the China and US indices strengthening by three points each (results calculated on an index from 0 to 200, with 100 being neutral).

rMB and greater China Overall traders indicated the Renminbi (RMB) would become one of their top 3 most used trade settlement currencies in 2011. Notably the RMB also ranked the 3rd highest for primary currency usage having overtaken the pound sterling for the first time. In order of preference, the US Dollar remains the clear leader, followed by the Euro, RMB, Pound Sterling and Japanese Yen are the traders’ top five trade settlement currencies. As the global trade sector prepares to increase trade with Greater China, the use of the RMB to settle trade in the next six months is gaining momentum being lead by traders in Greater China (45%, +5), MENA (13%, +10) and Southeast Asia (16%).

“Growth of the RMB as a trading currency has been accelerating significantly over the past few years. Echoing forecasts, the Survey has now highlighted that RMB is set to overtake the Sterling to become one of the top three trade settlement currencies this year. With China as New Zealand’s second largest trading partner, this suggests that importers and exporters need to get up to speed with trading in RMB as soon as possible,” says Mr Cross

“The reality is that New Zealand importers and exporters are competing with other countries in the Asia Pacific region for trading opportunities with China, not only with other New Zealand exporters, so it is imperative that they are ahead of game when it comes to trading in RMB,” continues Cross.

Mr Bhatia said: “By 2015, it is expected that approximately US$2 trillion, more than half of China’s trade, will be settled in RMB. Our

survey revealed that emerging markets are paving the way for the RMB to be accepted as an international trade currency as more traders, particularly in Asia and MENA, are preparing to use RMB to settle trade in the near term.”

Developed markets recognise the emerging markets as a driver of growth and plan to expand their relationships with them in the near term. In the US, more than a quarter (27%) of respondents are looking to Greater China for growth while over a tenth (14%) of their counterparts in China see further growth potential with the US in the next six months. At the same time, the outlook for Germany’s trade sector held steady at 107 with 31 per cent and 26 per cent of respondents forecasting Central/Eastern Europe and Greater China, respectively, as the most promising regions to expand trade.

Summing up, Gary Cross, Head of Trade and Supply Chain, at HSBC New Zealand concludes: “One further positive for the trade sector, is that Grater China has been identified as the most promising region for growth. With China as New Zealand’s second largest trading partner, this can only mean positive things for New Zealand’s importers and exporters.”

Visit the Newsroom at www.hsbc.co.nz to read further.

The above material has been provided for general information only. Although every effort has been made to ensure its accuracy, it should not be relied upon or used as a basis for entering into any products or making any investment decisions. Readers should seek independent legal/financial advice prior to acting in relation to any of the matters discussed in this publication. Neither HSBC nor any person involved in this publication accepts any liability for any loss or damage whatsoever may directly or indirectly result from any advice, opinion, information, representation or omission, whether negligent or otherwise, contained in this publication. A copy of HSBC’s most recent disclosure statement prepared under the Reserve Bank of New Zealand Act 1989 is available free of charge on request or from any HSBC office

This news release is issued by HSBC. HSBC in New Zealand is the Hongkong and Shanghai Banking Corporation Limited, incorporated in the Hong Kong SAR with limited liability, acting through its New Zealand branch.

graphic design is the visual means through which messages are communicated. It is therefore an essential consideration in the production of any marketing or communications material.

However, graphic design suffers from the unfortunate misconception that it is all about being artistic and therefore is only required only by those who wish to be stylish or fashionable.

Too often we hear business owners say, “I don’t need my marketing material designed by a professional. My customers are practical people – they don’t care what it looks like, they just care that it works.”

What these people don’t realise though is that they can’t get away from design. Whenever a message is committed to paper it is designed, in one way or another, and its

appearance provides visual cues that impact on the message as much as the written and image content.

As the medium through which the message is communicated, graphic design has a functional purpose: communicating that message effectively to the reader.

The layout of a document – positioning of items, choice of fonts, font sizes and colours all have an impact on the way the message is communicated.

A well designed advert will grab attention and communicate its key message at a glance. A poorly designed advert on the other hand may have many messages competing for attention, and as a result the reader’s attention will not be attracted or held long enough to understand what it is trying to communicate.

In addition to the purely functional level, graphic design also communicates on a deeper, subliminal level. A well designed advertisement infers the professionalism of an established company and can instil trust in the reader, while a home-designed advertisement suggests a sole operator with inferior capabilities. The choice of colours, fonts and style also send subliminal messages about the company’s values, personality and even the industry it operates in.

Unless you work in the field of design, when you see an advert you probably won’t be actively critiquing the design of it. To the untrained eye it can be difficult to identify exactly what constitutes good or poor design. However, that’s not to say the effect of its design is lost on you.

To illustrate this we have provided two examples of adverts created for jewellery store. Each advert contains exactly the same written messages, but designed in different ways.

Advert one bombards the eye with a plethora of bright colours touting messages that compete against each other for the reader’s attention and result in a low-end aesthetic.

Advert two utilises clean space, a clear hierarchy of messages and an engaging image, along with a rich colour palette that suggests luxury and elegance.

We’ll leave it to you to decide which one of these adverts would be more effective in attracting customers to this jewellery store.

Graphic Design is not just about creating pretty pictures. As the visual medium by which messages are communicated, design can be the difference between success and failure of advertising and communications materials. It can also have a significant impact on the brand or reputation of the company it is representing.

To ensure your next campaign is a success, make sure you engage the help of a professional graphic designer.

For design that works harder for your business, see the team at Market South. Phone 03 214 4455 or email info@marketsouth.co.nz www.marketsouth.co.nz

ThE IMPORTaNCE OF gRaPhIC DESIgN

ThE POWER OF DESIgN DEMONSTRaTEDThese two adverts contain the same content but designed in different ways. Which advert do you think would attract more customers to this jewellery store?