July viewpoint is targeted almost solely on issues affecting business.  
I met with Human Rights Commissioner, Dr Judy McGregor during her visit to Wanganui.  Judy incorporated visits to five of Wanganui’s major businesses and support agencies including Chamber of Commerce.   In the Wanganui/Manawatu 100 people including employers, employees, individuals and community groups were spoken to.  The Commission focused on:
1. Weathering the Recession in Wanganui   9. Redundancy
2. What do People Like About Their Work   10. Issues
3. Availability of Labour & Skills    11. Ageing Workforce
4. Pay Equity      12. Attitudes to Work
5. Training      13. Work Hours
6. Flexibility and Family Friendly Workplaces  14. Disability Discrimination
7. Leadership      15. Retirement & Volunteering
8. Economic & Business Development

Interestingly, in the draft report the region has fared above average compared to the rest of NZ in areas of unemployment, increased labour force participation and increased employment.  The report goes on to say the economic recession dominates the employment landscape in the region as it does elsewhere in provincial and urban NZ.    Loss of jobs, shorter periods of seasonal work and some industries with tighter order bookings impacts the employment in the region.  The report for the region is too long to detail but recommendations are:
• Government should incentivise EEO and diversity training in the public sector by providing tax relief on training expenditure. 
• Government agencies provide disaggregated labour market data for cities over 35,000 people to aid planning by local economic development agencies, Chambers of Commerce and other agencies.
• Local authorities who regularly hold lengthy night meetings are urged to review the demands placed on staff to ensure reasonable working hours.

I recently attended the NZ Security Conference in Auckland. The conference theme highlighted the bottom line.   ASB Economist; Neil Tuffley was one of the guest speakers and predicts that exports to international markets will continue to be slow due to a weak international economy.   Good news is Australia is leading the way for economic recovery and this will benefit NZ tourism as more Australians choose our country as an affordable close to home holiday destination.   In NZ a steady economic recovery is predicted for the rest of the year, strengthening first in the residential building market.   Developers are meeting market demands to provide buyers what they want, where there is not the quality of houses on the market to meet demand. The real estate market is picking up with the affordability report released showing Manawatu/Wanganui region up by 16.3 per cent - more than 12 per cent ahead of Auckland with median house prices in NZ having risen by $7K from this time last year.  The Reserve Bank may not cut interest rates further so investment in secure bonds, property and banks where short term deposit rates are still relatively high, minimises high yield, high risk investment.  

 NZ has the 5th worst average debtor days in the OECD, this seriously impacts on business.  Sales loose 5% their value if the account is 30days overdue and a staggering 20% when it reaches 90-days.  Is your business working for nothing?  Businesses that are prudent with debt provide more flexibility.  Managing to pay creditors promptly and being pro-active with debtors helps manage King Cash.  Many businesses are being creative with prompt payment incentives, while this helps cash flow I don’t entirely agree that people should be enticed to pay for something they have agreed to purchase.  Revenue is not profit and even growth companies face difficulty if debtors and creditors are not managed.   In June our company reported the highest ever sales figures in security installations but it was one of the most difficult months to get money in.  Businesses are not banks and should not feel they need to extend credit. 

The feedback on bringing the Chamber newsletter to you through the media has been brilliant.  It has benefits for Chamber with a wider commercial reach beyond our members with a platform for members to advertise at great rates and provide profile to your target audience.   Sign up to advertise with our Wanganui Chron team and reap the rewards.

Of course I can’t complete this Viewpoint without highlighting the Massey University Wanganui Business Awards.  Business needs to celebrate achievement and now is the time to do that - put those entries together for the 2009 Awards.  Entries are available through Chamber of Commerce, email or phone to have one sent to you.   The workshops have been and gone but if you have questions, or need help, please give me a call or phone the Chamber office.    Benchmark your business against Wanganui’s best.

Take care and have a great month!

Bronwyn Paul

Quote: “As long as the light at the end of the tunnel is not a freight train, whatever doesn’t kill you will make you stronger!” Author unknown.