Wanganui has started 2008 racing with our famous Cemetery Circuit Motorbike Races, Jet Boat Sprints, NZGP Hydroplanes and the Wanganui Inaugural VAL. UCOL Summer School, Wanganui Opera Week, Bushy Park Festival and Brooke Fraser, Anika Moa & Goldenhorse Concert add the cultural elements that make Wanganui the most desirable place to be over summer.  Yet the best is still to come with a line up of international quality events in the next two months; Mayoral Mile, NZ Superstock Champs, Supercross, Touch NZ, Heritage Wanganui, Chicago and the Artists Open Studios to name a few.  If you can get out and enjoy these events your support will ensure their future success. 

I start with a ‘Pat on the Back’ for the Wanganui Chronicle recently running front page with a ‘local economy booms’ headline.   The number of phone calls I took regarding this headline proves good headlines inspire positive responses and sends out a clear message that ‘Wanganui IS Open for Business’.  Keep it up Chron!   On the subject of ‘Open for Business’, don’t forget our distinctive, positive message Chamber of Commerce postage stamps are available from Pete’s Post.

Several things will impact businesses and ratepayers in the coming year and I guess we were all surprised by the Holding Company announcement of the goose that laid the golden egg will be a bit of a gander for the next couple of years as Energy Direct pays a set premium for gas whether it’s used or not.  Preparing forecast budgets on variable and unknown dividend returns is risky and I assume the Directors were not aware of any previous contracts signed for energy supply that would greatly impact on current and future dividend returns.   The offer of resignation by the Holding Company Directors is perhaps untimely; for one thing the Holdings Directors know and understand business dynamics.  The next couple of years will be important to make sure the structure and business development of Council owned assets is strong and on track for future success, I believe their expertise is needed more now than ever.  If it is simply a cost saving exercise, why don’t the Directors provide their time without remuneration?   Hundreds of people in Wanganui contribute their time freely in support of the city.

Some property owners will be happy, some won’t; with the new QV valuations.  It does bring Wanganui property values more in line with national figures and is great for those wanting to capitalise or renovate their property investment.  The fact is that Wanganui does have a large sector of the community on low or fixed incomes and while property valuation is only a part of a rating criteria, any rate increase in line with new valuations will have a social impact making it difficult for some to afford more rates dollars in what is already a high rate demand city, especially when that is combined with high interest rates for mortgages. 

High interest rates and some overpriced properties are affecting the Wanganui real estate market and lengthening the time it takes to sell a property.  A senior local real estate consultant told me that in the month of December (in round figures) only 5000 properties sold throughout New Zealand, and only 56 in Wanganui!    That is less than half the normal sales figures and with more than 20,000 real estate agents throughout New Zealand there has to be a lot of hardship in that industry sector.

Having just attended a Chamber hosted lunch with guest speaker Rod Drury it was great to see such a good attendance.  Rod is a technologist and entrepreneur with 20 years international IT experience and has developed a revolutionary way business does accounting with Xero.  When time is money, this system saves it!  It allows business owners or staff to work from any PC anywhere in the world and keep accounting information up to the minute with a fraction of the time spent on data imputing.  From bank account cross referencing, invoicing, recurring billing, property management, GST returns, comprehensive graphics, charts and reports plus much more.   Xero also eliminates the risk associated with data recovery, something a lot of smaller businesses don’t factor into their potential risks.  One of the great things about Xero, you don’t purchase a program that from time to time needs updating or for software support, for just $50 a month you have full accounting, automatic updates and support.  Check out the free online demo at www.xero.com and save yourself up to 8 hours a week.

 A big welcome to new members, I hope you gain a lot from your Chamber of Commerce membership and enjoy active participation and networking opportunities.   To all our members, have a healthy and prosperous 2008! 

Bronwyn Paul
President