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

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

Designed and Collated by:Market South Level 4, 5 The Crescent, Invercargill Ph: 03 214 4455 | Web: www.marketsouth.co.nz

In This b2b:

How Google Maps can Help 7 Drive Traffic to your Business’ Door with Focus Technology Group

Reducing Risk in the Workplace 9And what it means to your bottom line

Your Dollars at Work, while you’re at work 14 Craigs IP put KiwiSaver under the microscope as an investment

“Cup Week” learnings for businesses and local government

Our CITy On ShOw

STaTuTOry ManageMenT 101

$4.95

A beginners’ guide from AWS Legal

TOry

BuSIneSS 2 BuSIneSSEdition 4, 2011

Southland’s Telecom Business Hub is putting a face to telecommunications.

Part of a new nationwide network, the local franchise was launched in February this year by Lindsay Wills who has been in the telecommunications industry for the majority of his working life. Lindsay not only has a wealth of experience, he is at the forefront of the new approach to telecommunications – and that is to provide the personal touch.

To run the Telecom Business Hub Franchise, Lindsay started a new company which he named Talking Point Communications Ltd (T/a Telecom Business Hub Southland); this has been set up as a subsidiary company of locally owned and operated company Jackson & Wills who have been specialising in many forms of electronics and communication systems for over 64 years in Southland.

Telecom Business Hub Southland is centrally located at Jackson & Wills, 239 Dee Street, Invercargill. The experienced Hub team go beyond offering businesses free advice and recommendations. As your local telecommunications experts they make personal visits to your work place.

The Telecom Business Hub Southland is a one-stop shop where customers can streamline all their telecommunications into one account. The Hub has all the tools required including products, back-up and service.

“We’re the only local business offering a full range of telecommunications services,” says Lindsay.

“We understand Southland like you, and we

adopt a simple approach. We speak the same language you do, we listen, and we focus on keeping things easy to understand.”

Lindsay says the importance of face-to-face engagement with customers came about in response to a survey conducted by Telecom indicating that customers preferred to personally engage with their telecommunications representatives.

“The survey identified a real need that customers wanted people to visit them and we address that need by being 100 percent local. We know the Southland community and understand the day-to-day challenges small to medium businesses face in the area.”

Lindsay’s experience in running a small business is a distinct advantage. He has a good understanding of the issues facing local businesses in the ever-changing world of telecommunications and understands the value of building personal relationships.

Telecom’s aim is to not only to put back a voice at the end of the phone, but to introduce a face.

Southland’s Telecom Business Hub Team is made up of three business sales representatives and a skilled sales support person, each keen to meet with you to discuss your company’s communications wants and needs.

“Being the face of Telecom means that one-on-one meetings will take an expert from our telecommunications team out to a customer’s premises at a time that is suitable to them. You ring us and we’ll come to you. It’s that simple.”

Getting back to grassroots customer service is an exciting prospect for Lindsay and his team.

“Our job is to familiarise ourselves with your business in order to tailor the right telecommunications tools to help your business succeed.”

Keeping abreast with the rapid changes in technology is a challenge for anyone. The team at the Hub make knowledge their business. They keep up-to-date with all the advancements and can tailor a package that is most cost effective and efficient for your business.

They go much further than providing the right product recommendations, however. Their service extends to recommending the right calling plans, mobile, broadband and ICT solutions to keep your business connected.

Telecommunications are vital to the success of any business, no matter its size. Having reliable communication is crucial.

“To grow and build a customer base, businesses need effective systems that allow them to achieve results and improve profits. That’s where the Hub can help,” says Lindsay.

“Whether it’s a new mobile phone, the latest telephone system, or mobile broadband to keep on top of your email, we’ve got everything a small business needs to stay in touch.”

Call Telecom Business Hub Southland now on 0800 784 482 and arrange a free business communications health check.

One-On-One Service - yOur place, yOur Time

Local, just like youWe’ve launched a brand new face-to-face service created for local businesses in Southland.

Our job is to get to know your business inside out and recommend the right landline and calling plans, broadband and mobile solutions to keep your business connected and give you the competitive advantage.

And what’s more our advice to you is FREE.

Find out more 0800 784 482 info@hubsouthland.co.nz

business hubSouthland

3-0 02345 BUS Biz Hub Southland Chamber of Commerce Ad 210x99.indd 1 17/08/11 2:30 PM

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richard HayCEO, Southland Chamber Of Commerce

TRAININGSEMINARS&fit

OcTOBer

Business Document Writing17 Oct | 9.00am - 4.00pmcategory: Business Administration

Business letters, memoranda, emails, and faxes are all very common and important forms of communication within the contemporary business environment.

introduction to employment law18 Oct | 9.00am - 12.30pmcategory: Employment

This workshop will help you as an employer understand aspects of employment legislation and build mutual trust in employment relationships.

Bank Financing & Securities20 Oct | 2.00pm - 4.00pm

Demystifying Bank Financing and Securities: what does all the fine print really say?

nOvemBer

Safety Techniques for Frontline managerscategory: Health & Safety01 Nov | 9.00am - 4.30pm

If you have any influence or control over others in a workplace, then the law says you have responsibilities, so this course is a ‘must do’ for managers, supervisors, leading hands, health & safety representatives and committee members.

Register for 2 seminars or register 2 people and get a 10% discount (only available on Green Series training)

Full course descriptions and other training can be found online at www.commercesouth.comEmail: office@commercesouth.comPhone: 03 218 7188

Our Training Presenters & Partners include: Employers’ Association, WHK, IRD, ACC, AWS Legal, Pairman IP, Can Do Training, Macalisters Solicitors

Mention the three letters IRD and most people have some felling of emotion

towards distain, but simply put they are merely collecting revenue to build and maintain the infrastructure that we all need to support our day to day business and personal lives.

Debate will go on year after year on the spending of that revenue, how best to use it, how it is being frivolously wasted in some areas, whether enough is being invested in other areas.

Year after year that debate doesn’t change but at times like now, when NZ Inc is in or coming out of a recession, it is more prudent than ever to look at all spending, especially tax dollars and where justification of spend or consolidation and savings can accrue. Rightly so, the collectors of the revenue are not immune themselves and 150 IRD back room positions are considered expendable and are to go.

As NZ Inc gears up and takes advantage of technology it stands to reason that more jobs, especially in back offices, throughout the private and, perhaps even more so, throughout the public sector, will become fragile and their existence threatened.

One would expect that there is good sound math and reasoning behind the consolidation by the department but indications suggest that while the math is there, the reasoning on where the cutbacks will be made has been judged on some irrational analysis.

The thing about back room positions that utilise technology is that the these can be done anywhere, so the most logical plan would be to relocate these activities to the lowest operational cost center; I’m not suggesting going to India, but surely for government departments this is where Southland comes in.

The city has the infrastructure to and cost base to, not only maintain the existing government jobs that are here, but to encourage more ‘back room’ administration and call centre operations.

Of the 151 IRD FTE positions that are to be made redundant, a third of these will come out of the Southland office. A third not only seems disproportionate to the number of regional offices there are, but well disproportionate on any thought of a population criteria, and the effect this will have on the local spend within the economy. While not knowing the specifics of the positions,

vieWpOinT

surely the Southland IRD skill base is as professional and as capable as any centralised IRD office.

On the surface it is easy to think that the reason for a reduction in the Southland staff as opposed to other centers where votes may be considered marginal – it is election year – could look as though it snacks of a political decision. However it’s more likely that it is driven from bureaucrats of the “yes, minister” fame looking after the head office power base.

When it comes to accountability by department heads, it’s about budget and manipulations to meet KPIs which don’t include any visible government policy of supporting regions through practical and cost effective positioning of government backroom positions, and no consideration is made to a policy which could be wrapped around decisions that include any thoughts to ‘social impact’.

Simply put, why would a government head office want to move into a smaller Wellington office or scale back any other large center office exposing its vulnerability to look important and commanding, even if it could better meet its objectives of cost reduction by utilising or even boosting regional staff in more cost-effective regional premises like Southland.

The bureaucrats make the decision, the ‘polies’ nod; they got the budget result they want and there is no support for the regions, as there is no incentive or policy for the departments to do so.

A policy that could be effective is for Cabinet to say that all government department backroom positions must consider social impact and are to be firstly considered for operations within the cost effective regional office networks, encouraging regional support through government departmental expenditure in these regions, while utilising such tools as cloud technology process, unless a proposal for centralisation can otherwise be proven to the minister on a cost effective and sustainable model that will not detract from the regional economic and employment base, not the other way around.

Over recent history Southland has suffered substantially from government centralization; the depletion of government offices and

workers has left large hard to fill buildings and lowered the population with the consequence of reduced funding support for infrastructural service such as education, health, policing and transport that is required to support a growing or sustainable regional economy. Prior to today’s technology, centralisation could be somewhat reluctantly understood but not in today’s world of communications.

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SpOTligHT On SOuTHlanD BuSineSS: inTrODucing Warren TayleS FOr KOnica minOlTa

For all your document solutions needs, Konica minolta Business Solutions invercargill provides our important business partners a dedicated account manager for their business. Konica minolta is pleased to announce the appointment of Warren Tayles who joins the team as account manager in the Southland region.

A true Southlander, Warren has lived in Invercargill all his life. Before joining the team Warren enjoyed a very successful 30 years in sales in Southland.

As a professional, honest and passionate Account Manager, Warren is a relationship builder who cares about delivering value and customer service to his clients. This is delivered through understanding their unique business needs and with the support of the local team Warren will develop a solution tailored to suit each individual business.

Passionate when it comes to customer service, Warren always goes the extra mile to ensure premium service and support is delivered. “Building strong commercial relationships are critical in truly understanding client needs,” he believes.

Identifying a client’s drivers and future goals allows him to develop a solution that not only delivers value today but continues well into the future.

“I want to be able to continually provide my clients with the best technology solution, along with the best service and support in the market,” says Warren.

Away from the office, Warren is involved with Invercargill Rotary and Family Works Big Buddy Programme, where each weekend he spends time with his little buddy coaching and promoting good healthy life skills.

Warren Tayles

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

5

visiting rugby fans have provided a solid economic boost in some business sectors in Southland during their recent stay.

As the pool play competition kicked off, southern retailers, accommodation outlets and hospitality venues reported a definite upswing in spending.

The Southland Times reported …

“Paymark figures released yesterday show Southland had the largest increase in eftpos spending in the nation on Sunday after transactions in the hospitality, accommodation and car rental sectors jumped up $123,000 from the same day last year, a 43.4 per cent increase.

In the 10 days to Sunday, $3.23 million was spent through transactions in Southland, a 23.4 per cent increase on the previous year, while in Otago spending was at $9.8m, a 15.6 per cent increase.” (Southland Times 21/09/2011)

Figures which would gladden the hearts of those whose tills were ringing, definitely – and again Southland as a province scored gold for the hospitality offered and the spirit in which we made the most of our relatively short time in the RWC spotlight.

As we basked in a very timely run of (mostly) great weather across our “Cup Week,” it was a revelation to many to see our towns take on a vibrancy that we often regard as missing – especially within the central business area of Invercargill.

A Scots journalist based in Invercargill in the week prior to the tournament described it as “somewhat industrial” in an otherwise kindly piece in the Herald Scotland online edition.

Perhaps a timely observation, with the inner

city refurbishment committee moving through the phases of the planned redevelopment.

Of course the presence of swathes of international visitors will be a hard ask to replicate any other old day – but any areas lacking in Invercargill city and of course the activities and destinations sought out by these visitors would be a good shortlist that could help form a basis for growth in the tourism and hospitality areas in particular.

Prior to competition starting, the Reserve Bank estimated total spending of about $700 million from the Rugby World Cup. With ticket sales performing (quietly) beyond the expectations of the organisers in most centres, the World Cup buzz has not been unique to Southland.

Some media financial commentators have ventured that the competition has let kiwis forget the overseas financial woes for a short time and has led to an “opening of wallets” for the average New Zealander in the past weeks.

A change is as good as a break, as the saying

goes and, if the average household has budgeted for a RWC ticket or two along the way? That’s great.

Those tickets have helped put a lot of smiles on faces; they have made many kiwis feel a tangible part of this huge event and helped New Zealand make this once in a lifetime tournament a great success for the public face of NZ Inc.

invercargill On SHOW: learningS FrOm Our “cup WeeK”

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

Phot

o: C

orrin

a H

oush

am

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HOW TO legally minimiSe uSe OF mOney inTereST anD eliminaTe laTe paymenT penalTieScompanies, trusts and some individuals are subject to inland revenue Department (irD) use of money interest (uOmi) if they underpay or overpay their income tax.

Currently taxpayers pay UOMI on underpayments of tax at the rate of 8.89% pa whilst they receive UOMI on overpayments of tax at the rate of 2.18% pa. The large spread between the underpayment and overpayment rate of UOMI has lead to a large number of complaints to the IRD.

As a result of this, the IRD has allowed the establishment of tax pooling intermediaries. These intermediaries, broadly, help facilitate overpayers of tax to sell their income tax refunds to underpayers of tax and thereby reducing or eliminating UOMI with the IRD.

Tax pooling not only helps minimise a taxpayer’s exposure to UOMI but it can also reduce or eliminate late payment penalties.

Tax pooling can only be used for income tax at this stage, including provisional tax and terminal tax.

There are three main tax pooling products on offer, being:

Tax purchases Tax finance Tax pooling

Tax purchases If a taxpayer has underpaid income tax, in the past they would, generally, be charged UOMI.

Using tax pooling the taxpayer can buy the underpaid tax, at a lower interest rate (up to 30% less) than the IRD rate, and have it put into their IRD account with an effective date of when the tax was underpaid.

From the IRD’s perspective the correct amount of tax has been paid and on time so no UOMI will be charged.

The tax purchase product can also be used by a taxpayer to eliminate late payment penalties when provisional tax has been paid late.

Tax finance Sometimes a taxpayer’s provisional tax payment dates do not align with their cash flow therefore they have no cash readily available to make the provisional tax payment. In this instance if the taxpayer does not pay the provisional tax on time the IRD would charge UOMI and late payment penalties.

By using tax pooling, taxpayers can finance their provisional tax payments, at a lower interest rate (from 6% p.a.) than the IRD rate, and align payment with their cash flow.

Taxpayers agree in advance of a provisional tax payment date how much tax they want to finance and when they will settle this payment with the tax pooling intermediary.

From the IRD’s perspective the correct amount of tax will have been paid and on time so no UOMI or penalties will be charged.

Tax financing is also an option for taxpayers that are operating in overdraft at the time a provisional tax payment is due.

Tax pooling Instead of making provisional tax payments direct to the IRD, taxpayers can make their provisional tax payments direct to a tax pooling intermediary.

The benefit of this is that where a taxpayer is in a tax refund position, they can sell their tax refund into the tax pool and receive a greater rate of interest (up to 200% more). They pay no more than they would by paying their provisional tax directly to the IRD but may receive significant benefits. There is no downside.

BRAD PHILLIPS — YOUR TAX POOLING SPECIALIST

Brad Phillips is a Taxation Specialist Advisor and Principal of McIntyre Dick & Partners Limited.

Call Brad today if you would like to:-Reduce the amount of interest you pay to the IRD,

Eliminate late payment penalties, or

Finance your provisional tax payments to suit your cash flow

Brad Phillips, Principal

continued on page 13

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uSing gOOgle mapS FOr yOur BuSineSSgoogle is now one of the major powerhouses on the internet, providing many services to users including searching, email services, image editing software and the android smartphone operating system that powers a number of mobile phones worldwide.

In addition to the services Google also provide a comprehensive street maps, satellite and hybrid maps service (http://maps.google.com) that is gaining popularity on the Internet. There are a number of different aspects of this service including:

get Directions - from one location to another using different modes of transportation including walking, driving, cycling or on public transport. This applies not only to New Zealand but to anywhere in the world.

Street view - allows users to view most buildings and streets anywhere in the world as if they were physically there. This is a useful tool for relocating businesses who may want to see what a specific physical location looks like in another city, for example.

Google Maps also provide services for businesses to include on their web pages, including basic location maps.

Businesses can also submit contact information to the service to provide much better exposure to customers.

It just doesn’t end there, the detail on these maps can be as basic or as detailed as you like! Google maps can also be used to view satellite and terrain images and of course street view provides most importantly images from the ground – just like you were standing in front of the location itself.

A user can also find Traffic and Weather updates and view photos of popular tourist attractions in various locations around the world.

In addition to these services, most smartphones (including the Apple iPhone and the Android) have Google maps applications that are already built in that provide navigation and map services at the push of a button wherever you are in the world.

With the advances in mobile phones and technology in general, these days - we should never get lost again!

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

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HOW mucH SHOulD yOur BuSineSS pay yOu?

The august 2011 Supreme court Decision on the penny and Hooper case was a landmark case on tax avoidance for small and medium sized business owners.

It put into focus a concept that is not written into the Income Tax Act – the concept of what an acceptable salary is.

The case revolved around two orthopedic surgeons who provided medical services through two family owned companies. The companies made net profits of between $500,000 and $700,000 for the years in question but the surgeons were only paid $100,000 to $120,000 per year for their efforts. This low salary resulted in tax savings of between $20,000 and $30,000 per year. The IRD alleged tax avoidance and challenged the setting of these salaries, deeming them to be artificially low.

The counsel for the surgeons put forth some interesting arguments. They argued that the IRD could not impose what they considered to be a market salary and that the taxpayers were within their rights to structure their

business any way they wanted. In this case, the taxpayers had decided to trade through companies, owned by their family trusts. They did not dispute the IRD’s contention that the salaries that were paid to them by their companies were way below market but argued that the low salary could be attributed to ordinary family dealings. Besides, the Act did not stipulate that the company must pay a market salary in circumstances similar to that the surgeons were in.

The Supreme Court found that the taxpayers were entitled to trade through any business structure they chose. However, the artificially low salaries paid to the surgeons by their companies amounted to tax avoidance. When the top marginal tax rate changed in 2000, 33% to 39%, Parliament had contemplated that income earned from personal services would be attributed to the individuals whose efforts produced the income. Interposing a company, solely to take advantage of lower tax rates amounted to tax avoidance. The taxpayers argued that the formation of the companies was motivated by asset protection goals they had. However, this was rejected because of subsequent actions by the

taxpayers that undermined their contentions.

While the ruling in this case was very fact specific, it is one that is of significant importance especially to taxpayers in the service industry. Those trading through companies or trusts must ensure that they are adequately remunerated for what they do. While paying market salaries has become very important, there are still some situations where paying of salaries below market can be justified. For example, situations where the company/trust is generating losses or where money needs to be retained in the company to fund future capital investment. The reasons for paying low salaries must be genuine and justifiable.

IRD data collated has shown that there is a significant increase in taxpayers receiving salaries around the $60,000/$70,000 mark while the personal tax rates were 38%/39%. While the IRD have indicated that they will adopt a measured approach in dealing with such taxpayers, it remains to be seen how wide they will cast their net. If in doubt about how this decision applies to you, see your accountant or tax specialist.

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The Southland Times reported on 20 October 2010 that there had been 213,000 work related injuries claimed through acc in the previous year.

With the introduction of Employer Rating for ACC levies, businesses may incur a potential increase in levies if there has been a history of workplace injuries.

Workplace injuries, and especially lost time from work injuries, are an unnecessary cost to any business.

Many injuries occur through faulty movements and poor techniques when lifting or transferring. Poor posture at work stations due to incorrect set-up may lead to neck, back or arm strain.

Workplace injuries can be minimised by having employees educated in injury prevention including workstation set-up, best practice lifting, bending and transferring activities. Education should be especially designed for the needs of your company.

Physiotherapists have expertise in this area as we have an excellent knowledge of correct biomechanics, postures and lifting techniques along with our ability to educate on injury prevention.

Businesses that have adopted injury prevention education as part of their Health and Safety Plans have been shown to have a decrease in lost time work injuries. Employees are more aware of the importance of being safe and how to prevent sprains and strains and are therefore often happier and become more productive.

Ideally every new employee should be given some education on safe work postures and techniques so they can take responsibility for

their actions.

As well as ensuring ACC levies do not increase, well delivered programmes can reduce injuries and payment of initial wage compensation.

At Stephenson Murray Physiotherapists we have a passion to prevent injuries as well as effective lasting rehabilitation for any injuries, pain or discomfort.

lindsay StephensonDip Pthy, Post Grad Dip Rehab, MNCP (Pain Management)

Stephenson Murray Physiotherapists 112 Don St Invercargill, Phone (03) 2186583www.stephensonmurray.co.nz “Get Active, Stay Active”

WHy prOviDe WOrKplace eDucaTiOn anD injury prevenTiOn prOgrammeS?

n anD injury

10

Strategic Software at mDp limited specialises in providing accounting and payroll software solutions to businesses of all sizes throughout varying industries.

All members of the team have an accounting background and provide practical advice to suit your needs and help your business grow.

Strategic Software’s services include:

payroll processingProvide them with the hours and rates and their experienced staff will do the rest, with the goal being to provide an efficient and cost effective processing service.

System review A review of existing software, systems and procedures surrounding the software can identify areas where efficiencies can be gained. This involves working with you and your staff to identify your key business needs, how these needs are currently being meet and where improvements can be made.

Software Selection Strategic Software will assist you to identify your key requirements of a software package. Then review software against these key requirements to identify the “best fit” solution.

This selection review is completed on an independent, unbiased basis looking at a range of products whether those are able to be provided by Strategic Software or even via other suppliers.

Through support and implementation of a number of packages and constant review of the packages, Strategic Software will custom design packages that are able to meet the needs of various industries, but particularly provide strength in the following areas:

Inventory control.1. Job costing and/or manufacturing ability.2. Full integration of debtors, creditors, 3. inventory and other modules with general ledger.Ease of use.4. A range of useful standard reports. 5. Ability to add on point of sale, if 6. required. Ability to customise the programme and 7. reports to fit each business.

With payroll software, ease of use is a key area, plus an ability to cope with differing bases and rates of pay, allowances, deductions, full leave recording (holiday, sick and leave in lieu) and good support.

Software installationThe team at Strategic Software assist with

the management of the installation project including installation, implementation and training of staff.

This process often results in changes and improvements to procedures and they will assist, identify and document, if required.

They can also assist with reviewing hardware and networking requirements (and procuring if required

Day to Day SupportStrategic Software offer full software and accounting support, helping with day to day queries and problems and can also provide back up for office staff.

Other ServicesOther services offered by the IT team are:

E-business requirements.• Development of spreadsheets and • databases to efficiently manage manual tasks (if it is not appropriate to incorporate this into the accounting software).Disaster Recovery Planning.• Data security and protection plans.•

Strategic Software at MDP LtdLevel 2, 137 Spey Street, Invercargill Phone 03 211 2589

SpOTligHT On SOuTHlanD BuSineSS: STraTegic SOFTWare aT mDp

11

recent publicity regarding the Statutory management of one of new Zealand’s prominent financiers and associated entities begs the question what is statutory management?

New Zealand has a unique Statutory Management procedure contained in the Corporations (Investigation and Management) Act 1989. The Statutory Management powers are designed to deal with situations of emergency and urgency to preserve the interests of creditors, beneficiaries or the public.

The appointment of a Statutory Manager is a political appointment. The Governor General on the advice of the Finance Minister may declare any Corporation or associated person to be made subject to Statutory Management. Statutory Managers may only be appointed if it is deemed that:

The Corporation or associated person is 1. operating fraudulently or recklessly; or

It is desirable to maintain interest of 2. creditors, beneficiaries or the public.

The two most important effects of Statutory Management are:

A moratorium against various actions by 1. creditors and claimants;

Management of the Corporation 2. and associated persons in Statutory Management.

The moratorium prevents creditors from enforcing their securities and from issuing proceedings or claims.

Statutory Managers are given wide powers. The powers of Directors and Officers of Corporations and associated persons are displaced by the Statutory Manager. These powers include the right to suspend repayment of debt and disclaim performance of onerous obligations despite the terms of any contract. A Statutory Manager may also sell any property or assets subject to security interest.

There is no defined time limit for when the Statutory Management must be completed. There is no predetermined process for

which the Statutory Managers must adhere to.

The appointment of Statutory Managers appears to be at the top of the hierarchy of insolvency measures. Whether the appointment is justified will depend upon entirely upon the facts presented to the Governor General. There is no opportunity for a review of the appointment under the enactment unless an application for judicial review is made to the Courts.

We query whether the appointment of Statutory Managers to other troubled finance companies earlier may have been more appropriate given the public interest involved. It may be that we see the appointment of Statutory Managers becoming more common in the future.

Please remember, this information is designed as a guide only and shouldn’t replace the advice of your legal professional.

We welcome your comments: chris.peddie@awslegal.com.

STaTuTOry managemenT – WHaT iS iT?

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

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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

The Southland export Forum recently welcomed the new HSBc new Zealand ceO at a function at the White Heron Function centre.

Guests had the chance to meet Noel McNamara, the new HSBC head and farewell outgoing CEO David Griffiths who is on the move back to Asia to slip into (semi) retirement mode.

Noel McNamara has moved from Australia to take up his new role and, in his address, stressed the importance of Southland exporters’ growing role in HSBC’s operations in New Zealand.

As part of the evening, guests also heard from Nicola Smith, CEO of Southland based educational literature exporter, Essential Resources. Nicola retraced the original concept and setup of her award winning operation (from her laundry!) and provided a fascinating insight into the growth they have seen through their unique approach to supplying material to teachers in a growing list of countries.

An HSBC Southland Export Forum grant from 2010 assisted Essential Resources in attending the Irish Book Fair recently and it was great to hear how this has helped to open up new contacts and markets for their products.

Scene ‘n HearD arOunD SOuTHlanD: HSBc: HellO gOODBye…

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

l to r: Kirsty mcneill (BnZ partners) and Helen young (OSea).

L to R: Outgoing HSBC CEO David Griffiths & new ceO noel mcnamara. nicola Smith (essential resources ceO) and gerald ryan (HSBc).

l to r: neil mcara (WHK), carla Forbes (market South), richard Hay (chamber Of commerce).

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juDiTH camBriDge cHarTereD accOunTanTS: HeaDS in THe clOuD…

judith cambridge chartered accountants opened their doors to guests from the chamber Of commerce in September – and also opened minds, ears and eyes to the relatively new concept of cloud computing for small to medium business operations.

While the concept of “Cloud” storage of information and computing applications has existed for a number of years – Think Facebook, Hotmail & Gmail – the practical use for business has started to grow at a rapid pace. In their partnership with

the Xero web based accounting system the Judith Cambridge team showed how connectivity, combined with ultra smart software (which you don’t have to purchase!) can simplify all your accounting processes and save you some real money.

This Business After 5 event also featured some pretty spectacular nibbles, it needs to be said.

Judith Cambridge Chartered Accountants Tudor House, 26 Don St Invercargill 03 214 4036 , email: mail@jcca.co.nz www.jcca.co.nz

It is also possible to use the tax finance product in conjunction with the tax pooling product.

An added benefit of making provisional tax payments direct to a tax pooling intermediary is that if the taxpayer requires these funds back for some reason the tax pooling intermediary can refund the payments at anytime.

Security One of the first questions taxpayers ask when discussing tax pooling intermediaries is, “how safe is my money?”

A requirement to be a tax pooling

intermediary is that the funds have to be held and operated by an independent trustee. Therefore, the tax pooling intermediary does not have access to or a claim against the funds. IRD approval is also required to become a tax pooling intermediary.

At McIntyre Dick & Partners we have assisted many taxpayers with tax purchases, tax pooling and tax financing to reduce exposure to UOMI and eliminate late payment penalties. Please contact us if you want to know more about this.

For more information contact Brad Phillips at McIntyre Dick & Partners, phone 03 211 0801, www.mdp.co.nz

HOW TO legally minimiSe uSe OF mOney inTereST anD eliminaTe laTe paymenT penalTieS (cOnT.)

john Wilson (craigs investment partners), judith cambridge.

alex Depew (jcca cloud & Business Development manager).

geoff lange (a1 auto Services).

Xingdong yan (associate and cloud guru jcca).

14

The sooner you start saving for your retirement the more financial security you will have in your retirement, however, saving for your retirement is one of the easiest decisions to put off.

KiwiSaver is New Zealand’s voluntary savings initiative designed to make it easier to put money aside for your future. There are now more than 1.75 million New Zealanders enrolled in KiwiSaver, with funds invested of $8.5 billion. During the year to 30 June 2011, 295,000 new members joined KiwiSaver.

The May 2011 budget changed some of the dynamics surrounding KiwiSaver, but it remains one of the most efficient investment vehicles available within New Zealand. Specifically the May 2011 budget:

retained the Government’s $1,000 kick start contribution for new members;

changed the Government’s member tax credits payable on qualifying contributions to up to $521.43 per annum from 1 July 2011;

removed employer superannuation contribution tax exemptions from 1 April 2012;

announced an intention to increase employer and employee minimum contributions to 3% from 1 April 2013; and

left withdrawal benefits unchanged.

“Although the 2011 budget involved some changes to KiwiSaver, the Government and

employer contributions still add significant value to qualifying members’ KiwiSaver balances,” says David Goble, Craigs Investment Partners Invercargill Branch Manager and Authorised Financial Adviser.

“There are not many long-term investment savings schemes in New Zealand offering both up front incentives and on-going tax breaks – in fact there is only one, and that’s KiwiSaver,” David says.

“It is now four years since the introduction of KiwiSaver and as member balances grow we expect that members’ focus will shift to their investment selections and manager performance,” adds John Wilson, Craigs Investment Partners Gore Branch Manager and Authorised Financial Adviser.

Craigs Investment Partners kiwiSTART® Select is a registered KiwiSaver scheme offering all the KiwiSaver incentives available for qualifying members. In addition to this, kiwiSTART® Select also offers the flexibility to tailor your investments to suit your needs.

“Our scheme gives you the option to self-select from a range funds and nominated securities, allowing you to create your own portfolio. Investment Advisers in our Gore or Invercargill branches can work in partnership with you to develop a KiwiSaver strategy that is designed to meet your needs and goals,” says John.

Joining KiwiSaver is relatively easy – simply notify your payroll administrator, read and review the relevant Investment Statement

then complete and send through an application form.

Transferring between KiwiSaver providers is even easier – read and review the relevant Investment Statement, complete and send through an application form and we will initiate the transfer on your behalf.

For more information on kiwiSTART® Select contact an Investment Adviser at Craigs Investment Partners Gore branch on 03 208 9310 or Invercargill branch on 03 214 9939 or visit www.craigsip.com.

A Disclosure Statement is freely available on request. The kiwiSTART® Select Investment Statement is available on request. Please visit www.craigsip.com for more information.

KiWiSaver - STill an aTTracTive inveSTmenT

15

HSBc emerging marKeT inDeX Q2 2011

Weakest emerging market growth in two years but victory over inflation promising soft landing.

Emerging market growth slowed to its weakest level in two years in the second quarter of 2011, reflecting global economic fragility, the exceptional consequences of the Japanese tsunami and amid the lingering impact of recent inflation, according to the HSBC Emerging Markets Index (EMI).

The HSBC EMI, which is calculated using long-established Purchasing Managers’ Index (PMI) data, dipped to 54.2, down from 55.0 in the first quarter and edging below the long-run series average of 54.8.

Price pressures eased sharply against a backdrop of continued monetary tightening by central banks across the emerging world in response to menacing inflationary pressures identified by previous HSBC EMIs. The Q2 HSBC EMI signalled the most acute easing of input cost inflation for two-and-a-half years.

The moderation in overall activity growth reflected a weaker increase in manufacturing production, with the pace of expansion easing to the slowest in three quarters. Meanwhile, service providers recorded a slightly faster rise in business activity, albeit one that was the second-slowest since Q2 2009.

Paul Bloxham, Chief Economist, HSBC New Zealand says, “The easing in the EMI seen so far is largely good news for New Zealand, as some slowing was needed in order to reduce global inflationary pressures, put growth on a more sustainable footing and decrease the risk of a hard landing. Sustained modest growth in the emerging markets is expected to provide support for demand for New Zealand’s exports and to hold commodity prices at above average levels, which will boost domestic incomes and investment.”

Stephen King, HSBC’s Chief Economist, said, “HSBC’s latest EMI confirms that, after a strong rebound in the immediate aftermath of the global financial crisis, the pace of activity in the emerging markets has faded. In many parts of the emerging world, there has been a noticeable reduction in the growth of export orders, consistent with the recent experience of countries in the developed world, suggesting world trade growth peaked in the first quarter of the year.

“Emerging nations remain magnets for global capital and are increasingly investing in each other with the prospect of more and more Asian-funded infrastructure projects in Latin America and parts of Africa. As this new infrastructure comes on stream, so a new network of economic connections across the emerging world will be established, along what HSBC has termed ‘The Southern Silk Road’.

“If a soft landing can be achieved, the stage is set for a sustained period of growth across the emerging world driven by new ‘South-South’ connections. The result of all these changes could easily be a tenfold increase in intra-emerging market trade in the first half of the 21st Century.”

Rates of production growth eased across the majority of manufacturing sectors monitored by the survey, with South Africa and Singapore the two exceptions. In emerging Asia, China saw growth slow to the least marked in nine quarters while output rose at the weakest rates for two quarters in Taiwan and South Korea. Even India recorded a slower rise in manufacturing output, although the rate of growth remained substantial, and by far the healthiest of all emerging markets monitored by the survey. In Europe, particularly marked slowdowns were registered in Turkey and the Czech Republic while Russia saw activity growth

moderate to a five-quarter low.

The weaker increase in manufacturing output in part reflected a lessening in new order growth, which in turn was linked to a slowdown in the rate of expansion in new export orders. Of the largest emerging markets, Brazil, China and Russia all recorded reductions in new export orders. Meanwhile, India reported the slowest pace of growth for one and-a-half years, and rates of expansion eased noticeably in Taiwan and South Korea. Only marginal increases in exports were seen in Turkey and Poland.

Despite easing to a six-quarter low, India again recorded the fastest rate of growth of all emerging market service sectors monitored by the EMI, followed closely by Russia. Rates of expansion held broadly steady in Brazil and Mexico, while output growth accelerated from Q1’s record low in China.

The HSBC EMI is a weighted composite indicator derived from national PMI surveys in the emerging markets of Czech Republic, Hong Kong, Israel, Mexico, Poland, Singapore, South Africa, South Korea, Taiwan, Turkey, UAE, Saudi Arabia and the increasingly important BRIC economies of Brazil, Russia, India and China. These surveys collectively track business conditions in over 5,800 reporting companies. The PMI data is produced by global financial information services company Markit.

The HSBC EMI is released quarterly and is available in the HSBC News Room at www.hsbc.co.nz.

The above material has been provided for general information only and does not constitute personalised investment advice. 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. 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.

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