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2010 March / April Tabloid

Chamber Tabloid articles for March / April 2010

Chamber releases results of the 2010 business issues survey

The Rotorua Chamber of Commerce has released the comprehensive results from its round of business consultation. Consultation was based on a web-based survey of its members, four industry sector focus group discussions and a series of meetings with business and community groups. The overall participation in the process has involved 175 members representing 26 per cent of the organisation’s membership as well as a smaller number of non-members.

The objective of the consultation was to provide the Chamber with information on current business issues to produce its 2010 Manifesto for Local Authority Elections. The manifesto is used to inform candidates standing for election to Council of issues important to business. The same process was undertaken in 2007 and a comparison of the two manifestos provides interesting data on the trends between the two periods. In addition to issues of importance, respondents were also asked to rate Council’s performance in handling the issues. The results of the consultation can be viewed on the Chamber’s website in the column on the right of the News and Documents page.

The five most important issues to business (according to the survey) are:

· A tourism promotion strategy that positions Rotorua as the premier tourist destination in New Zealand.

· Having and implementing a strategy to provide infrastructure for business growth.

· A commitment to improve the water quality of Lake Rotorua and the other lakes in the District.

· A visionary and progressive development strategy to drive economic and population growth and community prosperity.

· Encouragement to new businesses to establish in Rotorua.

An analysis of the survey results provides a short list of issues on which the members of the Chamber want Council to place greater emphasis. This list includes issues of high importance but perceived lower current Council performance. The six short-listed issues are:

· Business growth strategy.

· Business friendly consents processes.

· Economic development strategy.

· Involvement of business in consultation on issues relevant to business.

· Strong leadership by Mayor and Council.

· Encouraging new businesses.

”The results of the survey make interesting reading,” according to Roger Gordon, CEO of the Chamber of Commerce. ”It indicates that business would like to see a greater emphasis placed on economic development and growth. The results of the survey and the comments that accompany the results in the report will generate a series of suggested action plans on each of the issues that we would encourage the incoming Council to consider.”

Keeping up with technology at Waiariki

Technology continues to change so rapidly. How does New Zealand business keep pace with change and how do employers keep up with professional development needs for their staff?

Waiariki is a large employer too. We have an extra challenge. Not only to provide sufficient staff training to keep pace with the nuances of new software, but we also need to ensure that our academic staff are up to speed with teaching the latest techniques. And we need to ensure that Waiariki has the best technology for teaching at least to local industry standards. This is a big investment for us. But it’s worth it! Our staff are worth investing in and particularly in a people business like teaching, we need motivated and well trained staff.

Over the past three years Waiariki has invested significantly in new technologies. As well as the latest products and equipment for teaching our students, we have invested in our own systems. We have moved to an entirely wireless campus. Our students work in world-class PC labs and computer suites. We have new Finance and HR systems, and are currently investigating a new student management system. We also migrated to Microsoft for all of our administration systems two years ago. These investments alone have cost Waiariki millions of dollars. But the pay-off for us is more efficient staff. While Waiariki’s business has grown (17% in revenue in 2009) our staffing costs have been largely maintained. Our staff is becoming more productive as we invest in them.

At Waiariki we put aside two percent of our annual staffing budget for professional development. That equates to around $1.25 million. Some of this money goes in upgrading qualifications for our staff. Obviously many staff study at Waiariki. But others are doing postgraduate qualifications at universities. There are many other courses and workshops organised through our own HR department. For instance we recently had Outlook training arranged for a number of our administrative staff. This investment in staff productivity nearly always pays off in spades. More efficient use of technology and software saves staff time and money. Most of all there are real savings in duplicating processes.

One of our current frustrations at Waiariki is that our Government has capped our student numbers, and the Government’s priority appears to be younger and full-time students studying at higher level qualifications. This means that Waiariki has fewer spaces available for part-time and working people. Clearly this will impact on employers’ ability to provide quality training for their staff at affordable prices. Private sector training providers tend to be much more expensive.

Polytechnics were set up in the first instance to support adult learners and second chance education for those who did not fare well in compulsory schooling (eg secondary schools). Learning is a life-long responsibility and right for all of us. Traditionally the average age of Waiariki’s students has been 29 years, but this is falling rapidly now that we have stopped taking enrolments through Semester 1. While we enjoy the energy of our younger students (and our campuses are overflowing) we do miss creating opportunities for more mature and working people. Older students are often more motivated. They know what they are giving up for study - work and family time. They also create a healthier lecture room balance and act as role models for younger students who are not always as disciplined in their study habits.

Most of all we are concerned about the impact on business productivity. If we cannot offer subsidised training for staff that will impact on business success and growth. Employers will continue to be frustrated at the lack of skills within and outside their own workplaces. Local business will be affected. This is also a particular concern for Rotorua as our economy pulls out of recession and job vacancies start reappearing.

Pim Borren, PhD

Chief Executive, Waiariki Institute of Technology

The search is on! Rotorua’s Top Business for 2010

The nomination period for this year’s awards opened on Tuesday, 2 February and closed on Friday, 26 March 2010. Interest in nominations was the highest it has ever been with over 300 nominations received.

Entries for this year’s competition opened on Monday, 29 March and will close on FRIDAY 25 JUNE 2010.

Organisations can enter the awards in either of the following two methods:

· In response to an invitation to enter from the Chamber reflecting the number of nominations received

· A self-generated entry by any organisation that wants to enter.

Historically entries have been split equally between these two methods.

This year, the awards include a new feature. Every entrant that submits an intent-to-enter form for any of the six business award categories will receive two hours free mentoring to assist them in preparing their award entry. This is provided by a specialist consultancy, Results.Com. This Tauranga-based company has been providing similar support to the Westpac Tauranga Business Excellence Awards.

Once again, the Chamber will be providing FREE workshops for prospective entrants. This will be held on:

· Wednesday, 5 May from 4.00 pm to 5.00 pm; and on

· Thursday, 13 May from 5.30 pm to 5.30 pm.

Registration for either of these workshops can be made by contacting the Chamber of Commerce on 349 8365

Annual Chamber golf tournament

What a great day again. For the past five years, the annual Chamber golf day has been blessed with the best weather of the month. The field was the largest that the tournament has enjoyed since the competition began nine years ago and companies and organisations are really entering into the corporate spirit. Competition for the major trophy, The Guardian Trust Champion Ambrose Team was very close. The top eleven teams were separated by only seven shots indicating that on the day anyone could have won. ‘If only that putt had dropped …’ As a result of a count-back GJ Gardner Homes were declared the Champion Team for the second year in succession.

Most participants entered the Ambrose competition, but 30 decided that they preferred to play a ‘real’ game of golf - everyone to their own taste! Again the competition was tough with some excellent net and gross scores across the three divisions. Alan Mitchell carded the lowest gross of the day, with the lowest net shared by Grant Borthwick and Mike Brady, both in separate divisions.

Guest speaker Brendon Telfer from Newstalk ZB was entertained during his round of golf by a group of real burglars in Richard Cashmore from Bayleys, Richard Evans from Rotorua Rentals, and Pim Borren from Waiariki Institute of Technology. We still haven’t found out what happened by Brendon didn’t put his card in…. I wonder why? Brendon gave an enjoyable presentation to the gathered crowd at the prizegiving. He has already stated his wish to return next year.

The Radio Network is the major sponsor for the day and their support of the hole and prize sponsors is tremendous. Each of the sponsors received a $250 advertising voucher from the station in recognition of their support and all sponsors went into a draw for the big sponsor’s prize of $1,000 worth of advertising. This was won by Phoenix Commercial Cleaning.

The wonderful family of sponsors were:

Agroventures; Autohaus Rotorua Ltd; Bank of New Zealand; Bayleys and Eves Realty Ltd; Davys Burton; Distinction Rotorua Hotel; GB Teat Ltd; Heritage Rotorua; House of Elliott; Konica Minolta; Liquor King Rotorua; Lockwood Group; Millennium Rotorua Hotel; MTEC Consulting; NZ Guardian Trust; NZ Maori Arts and Crafts Institute - Te Puia; NZCU Rotorua; NZ Travel Brokers; Off Road NZ; OfficeMax Tauranga; Phoenix Commercial Cleaning; PhotoArts NZ Ltd; Rainbow Springs Ltd; Richmond Foods Ltd; Rotorua Rentals; Skyline Skyrides; Speedy Signs Rotorua; Sue Canning; Tandoori Palace Restaurant; The Embroidery Company; The Good Water Company; The Lewis Plumbing Company; The National Bank of New Zealand; UDC Finance; Unison Networks Ltd; Waiariki Institute of Technology; Westend New World; Westpac Business Banking; and Xquizit Limousines and Tours.

Results of the 2010 Chamber of Commerce Newstalk ZB Golf Day Ambrose Competition

24 teams participated

Guardian Trust Champion Team for the Lowest Ambrose Score

G.J.Gardner Homes 62 on a countback won the Guardian Trust Trophy (for the second time) as well as four thick Guardian Trust Anoraks; vouchers for a meal at Tandoori Palace Indian restaurant; and a round of golf for four at the Formosa Country Club courtesy of The Golfer Gazette

Distinction Hotel Runner-up Ambrose

Rotorua International Airport 62

Skyline Skyrides 3rd Ambrose Team

Team Davys Burton 63 on a countback

Heritage Hotel 4th Ambrose Team

Team BNZ 63

WestEnd New World 5th Ambrose Team

Team Te Puia 64

Guardian Trust 6th Ambrose Team

Team Red Stag 65 on a countback

Richmond Foods 7th Ambrose Team

Team Mitai Maori Village 65

Liquor King 8th Ambrose Team

Team UDC 66

Off Road NZ 9th Ambrose Team

Team 2 Westpac 67

Agroventures 10th Ambrose Team

Team New Zealand Hotel Council 69 on a countback

NZCU Rotorua 11th Ambrose Team

Team Polynesian Spa 69

NZCU Rotorua 12th Ambrose Team

Team Distinction Hotel 70 on a countback

Chamber 13th Ambrose Team

Team Te Wananga O Aotearoa 70

UDC FINANCE Worst Ambrose Team

Team A Guardian Trust 78

Medal Competition

26 players participated

Office Max Senior Net

Winner: Grant Borthwick 68

Runner-up: Brett Farquar 70

Guardian Trust Senior Gross

Winner Alan Mitchell 74

Runner-up Pim Borren 75

Lewis Plumbing Junior Net

Winner Mike Brady 68

Runner-up Richard Evans 70

GB Teat Junior Gross

Winner Jeff Seo 83

Runner-up Ray Bernie 87

Men’s Most Golf

Vic Gordon

Te Puia Ladies’ Best Net

Winner Ruth Clapperton 70

Runner-up Sue Martin 77

Lockwood Group Ladies’ Best Gross

Winner Carolyn Kopu 81

Runner-up Judy Columb 84

Ladies Most Golf

Rowan Friend

Waiariki Institute of Technology Ladies’ Closest to the Pin

Carolyn Kopu

Waiariki Institute of Technology Men’s Closest to the Pin

Trevor Newbrook

AMP John Visser Financial Services, Sue Canning Ladies’ Longest Drive

Judy Columb

UDC Finance Men’s Longest Drive

Logan Shipgood

Konica Minolta Hole in One

No one even close!!!!

All-player draw for the Pamper Pack of a hair appointment at House of Elliott, pick-up by Xquisit Limousines, dinner for two at Mac’s Steak House, and a night at the Millennium Hotel with breakfast

David Cutfield

There were also all player spot prize draws for a night at the Millennium and for a voucher for $200 from the Embroidery Company.

4 legs good – 2 legs bad …. The difference between free and open-source software, proprietary software and cloud computing

There is a lot of confusion and some misinformation circulating about the different types of software available to run your website. Free and open-source is often touted as the “best” because of its low cost while proprietary software is seen as “bad” because of the (sometimes) high cost to purchase.

Let’s take a look at each kind and see if we can arrive a better answer

Free and open-source software (or just open-source)

Examples are Ubantu (a Linux operating system) and Silverstripe (a website content management system). This software is often provided as a free download and it is free to use – but you do still need to pay someone to install it and to host it.

You also need to plan for the software to be updated with security patches from time to time, and plan for an upgrade when a new version comes out.

Often these products have had many authors and there can be issues with security breaches and open “back doors” to access the software so you do need an expert in the particular software to configure it for you.

Having a great helpful user-base is one of the greatest strengths of open-source software and there are often many plug-ins available to extend the functionality of the software.

Proprietary software

This is typified by large companies such as Microsoft. You need to purchase the software for business or personal use. Installation and support are normally very quick and easy.

Security upgrades mostly happen without you knowing about them (except for the occasional reboot) and training and support are also available from a dedicated core user-base. Some proprietary software can be extended with third-party components but typically the features are pretty high to start with.

For software to run your web site you still need a host computer and someone who knows how to best install and configure the software.

Cloud computing or software as a service (SaaS)

Examples are all of the Google products: Google Docs for creating and editing word processing documents, spreadsheets or presentations and Google Analytics for traffic management reporting for websites. This is the type of software that my company recommends to use wherever possible.

Typically the software doesn’t get installed on your computer or at a host at all – it runs through a normal web browser and your information can be manipulated from any web-connected computer.

Updates are seamless and happen “behind the scenes” by the provider – you don’t have to do anything. This type of software can be offered free under a “freemium model” or can come at a set price per month.

I firmly believe that the future of computing is based on SaaS concepts. I don’t think the other models will disappear quickly, but there are too many advantages to SaaS over the other models for smart businesses not to take note.

Some of the advantages of SaaS over open-source or proprietary software are:

· No software to install, upgrade or to apply security patches too

· No need to back up files created by the SaaS or the program itself

· Access from any web-connected computer

· Ability to access the tools to enhance collaboration between geographically diverse teams

· No issues with version control of the software – updates happen invisibly

· Often more secure as fewer people can see the code that runs the software

· SaaS just works straight away.There is no time commitment to learn how to install, configure or update the software

· Saves money as there is no requirement to invest in hardware to host the software.

Contact me if you’d like to know more about how SaaS can work for your business.

In the next Tabloid: “Using Social Media for better Search Engine Optimisation”.

E-C Technologies

Recovery building

Recent economic data in New Zealand has been a mixed bag, on the one hand pointing to a solid rebound in some industries, but demonstrating some of the headwinds faced by households on the other. We continue to expect a solid recovery (though still sub-par by historical standards) in 2010 and beyond.

GDP lifted by a solid 0.8% in the final quarter of 2009, and there are signs that this momentum continued into the early part of this year. Business confidence rose to a new cycle high in February 2010, with profit expectations rising to a ten-year high, pricing intentions surging, and employment intentions rising to just above their long-run average. Own-activity expectations in this survey are a useful indicator of same-quarter GDP, and current levels are consistent with quarterly growth in excess of 1%. By industry, there is evidence of continued strength in dairy production, tourism and manufacturing.

However, the signs for households have been less encouraging. House sales have fallen sharply and prices have eased, due to fears about potential changes to the tax treatment of property in the 20 May 2010 Budget. Consumer and employment confidence dipped in March, retail spending has been sluggish, and what growth there has been was probably eaten up by higher food and fuel prices. Indeed, with the most recent hikes, fuel prices are back at levels that have noticeably crimped spending on other items in the past.

In the March Monetary Policy Statement the RBNZ reiterated that they “continue to expect to begin removing policy stimulus around the middle of 2010”. Their assessment of growth was broadly unchanged, but the inflation outlook is becoming increasingly uncomfortable. They now expect annual inflation to hit the top of the 1-3% target range in mid-2011, and to remain near that level for the rest of their forecast horizon.

Part of the increase in their inflation forecasts was due to a lower assumption of ‘potential’ growth for past and future years, following recent revisions to the national accounts that showed that actual growth since around 2006 was even weaker than previously thought. Another aspect was a series of one-off administrative charges, such as a larger than usual increase in ACC levies, and the introduction of the Emissions Trading Scheme in July 2010. But with inflation expectations already running high, the RBNZ has limited scope to ignore the impact of these kinds of changes.

While forecasts of such persistently high inflation would normally set off alarm bells, the market’s attention was instead diverted by another statement by the RBNZ. Bank funding costs have been substantially higher since the global financial crisis – the RBNZ estimates that marginal funding costs are currently around 150 basis points (bps) above the OCR, compared to 20-30bps pre-crisis. The RBNZ have made an explicit judgment that funding costs will remain at these levels for the rest of their forecast horizon (around three years ahead), which means that the level of the OCR needed to achieve a given level for borrowing rates is lower than it would be otherwise. Consequently, they have revised down the expected peak of the tightening cycle, with 90-day rates expected to top out at 6.1% by the end of 2012, compared to a 6.5% peak in the December MPS.

We suspect their assumption around funding costs will be put to the test over time. But for the near term it’s not a significant factor; the RBNZ still faces the task of lifting the cash rate from extremely low levels in the face of burgeoning inflation pressures. We continue to expect the first rate hike in June 2010, with a series of 25bp hikes through to early 2012.

Westpac Economics

Pending tax changes not as bad as first thought

The tax merry-go-round has been in full speed lately, with many reports on how proposed changes aimed at property investors will affect the sector, but what has evolved from the initial shock is the fact things may not be as bad as they first appeared.

The Victoria University-lead Tax Working Group (TWG), which released its final report on 20 January 2010, proposed a raft of changes aimed at taxing the property investment sector, after it claimed there were too many holes in the system and investors were in fact costing taxpayers money.

The TWG originally recommended cutting personal tax rates, raising GST, introducing a capital gains tax, taxing returns from capital invested in residential rental properties on the basis of a deemed notional return calculated using a risk-free rate, a “low rate” land tax and removing depreciation on buildings.

However, in a speech in early February, Prime Minister John Key announced the Government was not in favour of a capital gains tax, a land tax, or the idea that investment property should be taxed under a risk free rate of return method (RFRM). There are still a number of options on the table, the three main ones being:

· Ring fencing losses made on investment property so they can’t be used to offset other income

· Removing depreciation allowances

· More strictly enforcing the rules around capital gains.

The most likely scenario is being unable to depreciate buildings, although chattels will probably still be able to be depreciated.

The idea behind the change is that property is an asset that appreciates, rather than depreciates.

By removing depreciation on buildings, the main impact on investors is likely to be cash flow. Investors would need to leverage their properties less aggressively than they may currently do, because the end of year refund from the IRD won’t be as big.

If depreciation can no longer be claimed, investors will need to focus more on cash flow positive properties, that is, properties (rents) that cover all expenses such as maintenance, rates and mortgage payments. Investors that depend on tax refunds at the end of the financial year to make the property viable will find themselves in trouble.

But depreciation changes won’t affect investors as much as first thought. Taking the average house price today of $350,000 as an example, if the building itself had a value of $200,000 (with the other $150,000 being the value of the land), it would be depreciated by 3% (the rate at which buildings are depreciated), which works out to $6,000 per year.

At a 33% tax rate, the tax saving works out to be $2,000 per year, which means investors will be $38.46 a week worse off than if they were able to claim the $2,000 depreciation.

If the building depreciation allowance is removed, quite simply the rents will have to go up to cover the loss of these allowances.

NZ Property Investor magazine

Statistics NZ releases toolbox for businesses

Statistics New Zealand has just released the Business Toolbox, a free suite of online tools that provides quick and easy access to information for businesses. The Business Toolbox contains two tools:

· Market Mapper – businesses can visually pinpoint their target markets using 2006 Census data.

· Industry Profiler – provides details on industry performance over time, staff turnover, and survival of similar-sized businesses.

For example, using the Market Mapper, you can create a population density map by selecting a number of characteristics such as age, income, household composition, and family type. Using Industry Profiler, you can search a particular industry and view information such as survival rates, and new and ceased businesses by region over the last five years To access the Business Toolbox, go to www.stats.govt.nz/business_toolbox

Statistics NZ can also arrange for its Outreach team to demonstrate the tool and its uses at your place of work. For further information, please contact Graeme Simpson on 04 931 4066 or via email: graeme.simpson@stats.govt.nz.

Exciting staff meetings

When payroll is tight, one of the first things that is cut back is often the monthly staff meeting. This is a big mistake as employees need this face-to-face time to train on new products, work on issues together, and continue to develop as a team. While e-learning and other vehicles can help transfer information to employees, you can never beat a monthly face-to-face meeting of the whole staff.

However, it is imperative that these meetings are productive, engaging, and result in a positive return on the time and payroll investment. Companies can't afford poorly-run and poorly-executed meetings.

Many years ago, I worked for a Manager who was scared to death to speak in front of a group of people - even if those people were her employees. Because of that, our monthly meetings consisted of her reading from a script while she fanned us with the shaking papers in her hands. We always thought about positioning an employee behind her in case she passed out. Seriously though, I was never sure who was in more pain, the staff or the Manager.

I'm sure you run your meetings more smoothly than she did but since there's always room for improvement, here are some tips to crank up your meetings and fire up your team.

1. Don't use meeting time to transfer information. Unless you're hiring pre-school students, your staff can read and they don't need anyone to read memos to them. Assign all necessary reading prior to a meeting. The same holds true for new product information. Even if you're planning a splashy introduction of the product itself at the meeting, have the employees learn about them before the meeting starts.

2. Make the first five minutes of every staff meeting a ‘WOW’. Dress up as some character, crank up some music, have the employees up and dancing, throw candy and treats, do anything else you can do to get your team excited and pumped up. Yes, it gets harder and harder to top what you did last time but since we expect our people to keep improving the customer experience, shouldn't we always do the same?

3. Introduce new products with style and flair. At a previous company we went to great lengths to unveil new products to the entire company. I've come across very few employees who don't love seeing and playing with new products. Even when the staff knows the products are coming in, you can still make the first-time people see them as a fun experience.

4. Use the meeting to apply what people have learned. Instead of discussing the details of a new product, talk about how to sell that new product. Practice role-playing with, perhaps, a competition on who can best state the benefits and advantages to the customer. Small prizes are always appreciated.

5. Play games (with a little friendly competition) to reinforce learning. I always like to split up the staff into teams and play games focusing on role-playing and product knowledge.

In conclusion

A good staff meeting should involve and engage the entire team so plan well to ensure that there are no absentees and always pay them for their time. This will be a valuable investment towards your success.

The majority of the owner's/manager's time should be spent in planning the meetings but not necessarily in running all meetings themselves. In fact, it would be a good plan to delegate the running of some meetings to other Managers or staff members; ensuring, of course, that they fully understand how to make the gatherings upbeat, friendly and yes, even exciting.

Bottomline

Guidelines for good emails

I read an article recently that recommended performing a daily ‘triage’ on your email inbox. Scan the list and delete the junk first, then group the remaining items by action needed, i.e. delete them, file them or place them on your ‘to do’ list. Here are a few email guidelines I have collected from my training courses:

· People like to be greeted by name. Although the common convention is ‘Hi’, some people use ‘Dear’ for more formal emails. Many people find being addressed just by their name without ‘Hi’ or ‘Dear’ is too abrupt.

· Whether you use ‘Kind regards’, ‘Regards’ or ‘Cheers’ depends on your relationship with the person. Some people mimic the sign-off of the person they are emailing.

· Sometimes it is better to pick up the phone or talk to someone face-to-face.

· Never send an email when you are upset or angry.

· People can easily take offence if your emails are too abrupt so be polite and professional.

· Take care with what you write because emails are retrievable and often forwarded.

· Enter the email address last so you don’t press ‘send’ too soon.

· Keep your emails short.

· Use normal writing and punctuation rules. Keep sms language for friends.

· Use attachments for longer or more formal documents. And remember to attach them!

Mary Morel

Consultant, trainer and author

http://www.themfactor.com.au/and http://www.writetogovern.com.au/

$83m redevelopment at Rotorua Hospital

Foundations for the $83 million redevelopment of Rotorua Hospital are taking shape, with the basement and first floor constructed.

Mainzeal, the main contractor, spent October and November 2009 excavating some 13,000m3 of earth from the site, in front of the former entrance to the hospital, in preparation for the foundations. A number of Rotorua firms are supplying services to the redevelopment.

A huge crane dominating the Rotorua landscape was set up on the site in January and will remain in place until August 2010. The crane is being used to lift in building materials such as concrete, heavy reinforcing steel, timber and heavy equipment required in construction.

The first major concrete pour for the foundations of the basement was in December. There have been a number of concrete pours since then, building up the basement foundations and the ground floor.

Various cold water, hot water, gas and vacuum cut-overs have been successfully completed in the Clinical Services Building Plant Room to make way for seismic strengthening and the addition of equipment and piping necessary to support the new development.

With this development Lakes District Health Board is allowing for future expansion beyond what is currently required within this project. This is to ensure that any future buildings can be supported by this infrastructure upgrade.

The change-over of power from the old switchboards to new was completed in late March after five full days during which time the CSB block, the café and Elderly Services (Rehabilitation Unit) were powered by two large generators. The change-over from normal supply to mains generators was to allow replacement of transformers and switch gear.

Work on the level 1 CSB area – the site of the old cafeteria - is almost complete, with new air chillers and power switchboards bring placed in there. This equipment will support the new building, as the whole new building will be air conditioned, as well as the new theatre floor development.

A number of process redesign projects to ensure efficiencies are made in the new building are well underway across the Rotorua Hospital site.

The redevelopment comprises a new three level inpatient building, housing outpatients or ambulatory services on the ground floor, and surgical, medical and the intensive care unit on the upper floors, significant expansion of the emergency department and also redevelopment of theatres with an increase in theatre numbers.

Corporate Services Manager for Lakes DHB, Nick Saville-Wood, is Project Director for the redevelopment. He says the redevelopment is the result of many reports and reviews over a number of years, strongly indicating a need for improved hospital facilities.

The hospital’s redevelopment will support the almost 800 clinical staff employed by Lakes DHB to provide clinical best practice. It will enable the DHB to have an effective workforce and still be financially sustainable into the future.

The redevelopment of health facilities is primarily to improve patient care. However, Nick Saville-Wood says a worldwide shortage of clinical staff means that hospitals with better facilities across a range of health services are better positioned to attract and retain staff than ageing hospitals in serious need of upgrading.

Once Rotorua Hospital has been completed late in 2011, work will proceed on redeveloping Taupo Hospital the following year.



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