The Bottom Line

Tim Hunter is the deputy editor of Fairfax's Auckland business bureau. He provides commentary and insight into the business issues of the day.

A spinning sensation on the waterfront

05:00am 21 Feb 2012

2 comments

TIM HUNTER

There's something odd about the new ginger group getting stuck in to Ports of Auckland. Admirable, but odd.

This is an alliance of trade unions, a corporate finance consultancy, a logistics company and a city business association. There are probably not many things all four could agree on, but the future of the port appears to have galvanised them into togetherness.

It's great to have such engagement in a public debate, because lots of Aucklanders are interested in what happens on the waterfront.

However, you have to wonder what's really going on here.

Heart of the City employed public relations firm Pead PR last month to rark up fears of massive encroachment on the harbour by a giant port parking lot.

The hidden cost of rising power bills

12:55pm 14 Feb 2012

11 comments

TIM HUNTER

Like many, my household has just received notice of impending price rises from Mercury Energy. Our electricity bill will go up by 6.2 per cent and the gas bill by 6 per cent.

The latest increase continues the decade-long trend of power price rises well in excess of inflation. For both electricity and gas, the increases have been inflicted mainly on households rather than commercial or industrial users.

This is not a debatable statement - the facts are well known and are readily available from the Ministry of Economic Development's Energy Data File.

So why does this happen?

In my view the answer is plain - lack of competition.

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The price of milk is a big red herring

05:00am 08 Feb 2012

20 comments

TIM HUNTER

As the price of milk continues to hog headlines I found myself browsing submissions to the milk price inquiry ran by the Commerce Commission last year.

The inquiry was called after a flurry of publicity over the high price of liquid milk in supermarkets.

Two submissions stood out. One was the indignant foaming of former Federated Farmers president Don Nicolson.

The other was the sympathetic plea from the Families Commission for staple foods to be priced within reach of poor families.

On reflection, I found myself in the unfamiliar and uncomfortable position of leaning towards Nicolson's view.

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A narrow squeak for Shanghai Pengxin

05:00am 31 Jan 2012

21 comments

TIM HUNTER

According to the Overseas Investment Office, certain factors were of "high relative importance" in assessing the purchase of the Crafar Farms by Shanghai Pengxin.

The assessments suggest approval of the acquisition was a narrower squeak than some expected.

Here's my summary of the "high relative importance" benefits:

New jobs created? Two, in a farm training facility run by Landcorp

Business skills introduced? None

Kneejerk media seriously suboptimal

01:39pm 24 Jan 2012

3 comments

TIM HUNTER

In media circles, the summer holidays are known as the silly season - with everyone at the beach, the general absence of news means editors can be left clutching some pretty thin straws to fill their airtime.

This must be the explanation for TV3's news at 6pm on Sunday reporting at length on the success of businessman Manas Kumar, whose company has grown from a bedroom start-up to a listing on Frankfurt Stock Exchange.

Kumar, we hear, immigrated to New Zealand to pursue a cricketing career, but ended up working at fast food chains to make ends meet. Determined to better himself, he spent $10 on a domain name and founded a company in the bedroom of his apartment.

From these humble beginnings, Kumar built up a business selling a software product to help companies with their email marketing. The company, Optimizer HQ, now employs 11 people and names Harvard University, Burger King, Footlocker, the New Zealand Police and NZ Post as clients.

Having listed on Deutsche Borse, its share price, expected to open at E10c, reached E40c in just six hours.

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