INTERVIEW WITH MURRAY DOUGLAS

Murray Douglas is the CEO for the HB Chamber of Commerce and runs a growing commercial orchard. A town planner and economic policy analyst by trade, he has never been shy of expressing his voice, challenging the actions and thinking of those in the local economy. Now putting his money where his mouth is, Murray is standing for the Regional Council, focusing on regional council basics: improving our Land, Air and Water.

Murray is a very busy man who is not encumbered by the several hats he wears at any one time. An expert in time management ('time is our slave' he says), he easily found the time to answer our questions and give a few pointers for businesses in difficulty.

  • What problems do you see plaguing Hawkes Bay Businesses today?

We've just done a study going over data from 1987 to now, on business confidence in Hawkes Bay. Amongst the 37 indicators, the one problem that shows right across is sales. Businesses don't know how to sell, they don't go looking for the customers as strongly as they should and there is a tendency to rest in their comfort zone, rather than thinking competitively for new ways to do things and develop new markets.

Hawkes Bay Chamber of Commerce has taken that into account and we're trying to help. For example we really put the emphasis on marketing and sales when organising the recent Business Expo.

  • Who is best placed to help businesses?

The one professional all businesses use is an accountant. Some businessmen also have a lawyer but I am sorry to say that most of them limit their work to preparing the papers as instructed, rather than providing advice. Accountants, however, are generally much more involved into the life of the business and can provide sound advice. They can but not all of them do, that's the difference. It is largely the part of the business owner to ask the questions like: 'What does that figure mean? How do I get my cash-flow up? What's my long term prospects? Etc.'

Back in late 2008, when the crash was happening, I personally wrote a letter of complaint to the NZ Accountants Institute. We were seeing a large number of businesses which were in trouble, not getting the help and advice they ought to from their accountants. The Chamber put their hand up to invite business owners who were having difficulties to come and see us for assistance. I do believe that some accountants were not up to the game then, that they should be even more proactive when the times are hard. I think the letter was taken into account and has helped a lot of them change their attitude.

We're going through a little bit of a dip at the moment and I think that generally accountants are being a little better this time. We're getting referrals from accountants who have recognised that their clients needed a different sort of help than they could provide. That's very positive.

Another good source of help for businesses in difficulty are Business Coaches or Advisors. Unfortunately some of them are just of the 'feel good' type. When the goings get tough, feeling good is definitely not where you need to be. Business owners need people who are going to get a close look at what's underneath and give them realistic advice on what steps they can take or how differently they could be conducting their affairs.

  • Supposing a business can't afford the help they need?

There is plenty of free help available - especially on referral from the Chamber. We are a membership organisation but our board is taking the generous view that help should be provided to anyone, because if we help growth, we're helping ourselves. That means that anyone who walks in the door looking for help will get it. Having said that, it costs as little as $200 a year to become a member, and that gives you access to a whole lot more, like functions and regular publications, as well as wealth of information.

We're also launching as the government’s regional partner a 'Business Capabilities' program which will co-fund good advice service for businesses who are willing to grow. There is an assessment program at the beginning, then valuable help becomes available for a fraction of the cost. This is a joint venture with Venture HB who are doing the local R & D grants.

However, I'd like to come back to what I was saying about accountants being the first port of call for businesses. I think accountants should be talking to their clients on a regular basis, in order to keep their finger on the pulse so they are able to provide advice when it's needed. So that should take care of most of the help that's needed for the fee that the client is already paying. Some of the best ones already dedicate half a day every week to helping their existing clients, like Nick Roberts does with his free Business Clinic.

  • What are key things you think business owners should do to get on?

It's the basics! Get the sales right, get the cash-flow right, get the profitability right, the pricing, inventory...... all the basics. And it's about working at these all the time too, not just when things get tough. You know, at the Chamber we mainly see people in trouble, and those businessmen who already do things right, we never see.

  • What does the Chamber do to help businesses?

There is of course providing help to businesses experiencing problems. At the height of a recession we would have about 60 companies on our books that we were working with, and that's a rolling over figure. At the moment it's gone down to about 15, most of them not members.

We also organise seminars, bigger events such as the Business Expo. We also have a 'Business After Five' regular event, where we visit a company and look at their business model. Some 200 people can attend at the same time - probably because of the wine after that. We try and invite those businessmen who are doing the right things to talk about their experience, or we get outsiders to make a presentation: they could be economists, cabinet ministers, politicians, etc.

We also conduct a lot of lobbying and advocacy. Within the coming election, we're putting pressure on the candidates to say what they propose to do to help local businesses. Then there are some programs aimed at the youth, plus others for the established businesses. We're pretty busy and we have to be, because no-one is going to help Hawke’s Bay if we don't help ourselves first. The national Government has a very hands-off attitude here, so there is no help coming from there. There could be funding, but you have to work to get it first.

  • Do you think the Government should be doing more?

The hands-off attitude is probably a good one, actually. From experience, when governments get involved too much, there is a risk for economical distortion.

Also the Government is doing a lot of work on exporting and that's where local businesses need the most help.

  • What about Hawkes Bay Regional Council? You're running for the election yourself. Why did you decide to do this and what do you propose to do?

Please understand that I am not answering as the head of the Chamber of Commerce here, only talking for myself.

The Regional Council is dealing with big strategic issues - unlike the District Councils, which are concerned with barking dogs, libraries and such that are very important to the community of course, but don't make a difference to the big picture. Strategically, there are several things that we need to get right.

The first one is our fundamental 'Clean Green' attitude, which I think is very much what we sell to the outside world. Yet we are not managing it anywhere as well as we should. I would like to see it run much more aggressively – not negatively – but fixing it up. We have a regional plan at the moment, but it's flawed. The Council has been working on it for twenty years and the problems are still going on. The bottom line is, at the moment we can't put our hands up and say that our produce is coming from a 'clean green' environment, because it's not. Something needs to be done quickly and permanently.

The second one is that the Council is less than efficient. There are a lot of wasted resources and it offends me. I think my background in business and councils (I used to run the city of Sydney) will help.

The last one and probably most important one is that the Regional Council is responsible for the big economic plans. This is where we can really make a difference, by kick-starting Hawke's Bay economy. I've been talking about it, writing about it and yelling about it. Now is the time to do something about it, so the Council is the place to be. For example I just don't see why, with so much potential, we've got unemployment at 9%. I think we can do a lot with that. I also see business owners saying: 'I'm very pleased that I'm surviving.' Well that's just not enough. We need to energise all this and make it work to its full potential.

We can make a big difference with the right energy and by thinking globally.

We wish Murray well in the election and needless to say, the Accountancy + Business Advice Centre is a member and strong supporter of the Hawke’s Bay Chamber of Commerce. Their website is www.hawkesbaychamber.co.nz.

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