COLUMN: The Daily Chronicle
About eight years ago we entered our Guy Family farming business in the Electra Business Kapiti Horowhenua Awards. The whole process was invaluable to our company because of the feedback we received from the assessors. The awards ceremony last week at the Events Centre was hugely successful and there was a real buzz among everyone. Showcasing the businesses we have in the Horowhenua and Kapiti region at this event shows how new businesses have evolved from our cornerstone industries of agriculture, textile and retail.
It takes a bit of guts to enter your business in this competition. There is always a perceived risk of failure and you have to be ready to hear what the judges really think of your business. That is where the true value of entering this competition is gained. Staff get a boost and genuine sense of pride if their workplace enters the competition and is lucky enough to win an award.
Congratulations to Levana Textiles of Levin for taking the overall prize. Levana employs about 72 people and exports fabric to China, Hong Kong, Australia and South Africa.
Water Smart from Paraparaumu starting as an owner operator has invented a water saving device that allows grey water to be recycled back onto the garden and lawn. This technology has several unique positives for the environment, with less treated water used and less waste water for council to process. Steven and Serena Roberts are now exporting their product to Australia and won the emerging business award.
Small business of the year went to Display Tactix from Kapiti.
The Government is calling 2007 the Year of the Exporter. With the NZ dollar the highest it’s been against the US dollar since 1984 at nearly US75 cents the Government has gone very quiet. Finance Minister Michael Cullen can’t stop a rampant Kiwi dollar that is hitting exporters hard. Labour have ramped up Government spending and the Reserve Bank is calling the spending spree an ‘expansionary’ fiscal policy that will keep the interest rates higher for longer – thus our dollar continues to climb towards US80 cents.
The May Budget is just around the corner and the Government is set to continue throwing taxpayers money around as it seeks to shore up the votes it needs for a fourth term. After 8 years in Government it will be very cynical for Labour to drop the company tax rate and look to introduce incentives for exporters. Personally I feel that most voters can see through election bribes and the mood for change on the street is growing by the day.
The affect a high NZ dollar has on businesses is huge. As an example, if the dollar is over-valued by 10%, it means that for every $1 million of export sales $100,000 in gross profit is lost. That’s a lot of money that may otherwise have gone into repaying debt, capital investment or research and development. The only positive I can see for shoppers is that imports such as a new TV or stereo will be about 10% less.
I learnt at the business awards that about 160 New Zealand companies command 80% of our exports by value. While several companies export from our region we are mainly small to medium businesses doing our bit supplying domestic goods to drive the local economy.
I urge you to enter the awards next year to show case and learn more about your business. The awards need your support for their ongoing success. Congratulations to Ron Parkin and the Enterprise Coast team for a great evening. Meanwhile I hope the Kiwi dollar eases and 2007 ends on a more positive for the exporters. Right now, it isn’t looking that promising.