Labour List MP Damien O'Connor. Photo: Supplied.
Damien O’Connor, List MP Labour
The silt has settled and hopefully the weather also. For some homeowners and growers in the Motueka area it’s a long road ahead to get back to normal, whatever normal means these days.
The wine industry, the honey industry, Alliance meat company and Rocket apples are all facing significant challenges when our primary sectors are supposed to be leading the way to an economic recovery. It is perhaps a reminder that generalisations don’t deliver, and the variety of businesses and products all require focused attention to deliver profits and success.
The discussion around the structures that best suit primary sectors continue with cooperatives, private, and public companies all delivering mixed outcomes. Clearly the structures alter the objectives of the companies, but outcomes depend on the level of governance and guidance from a board with the focus and competence of management. This is where the secret to success lies rather than in the structure itself.
As Māori say, “what is the most important? ... the people, the people, the people.” In a world where focus on infrastructure, capital, technology and stocks captures the world of commerce, people are all too often seen as a flexible resource that adds cost and complexity to a business.
On the other hand, there are smart innovative companies that value people as more than inputs, consumers and customers. People must be at the heart of a smart successful business. People who set a bold vision, select for honest scrutiny and value for diverse contributions and feedback.
There are the alternative enterprises where tradition, egos, misguided loyalties and sometimes ignorance drive companies to failure.
In a small distant country far from our markets and competition, we cannot afford to waste anything.
Capital is not easy to acquire, although KiwiSaver, ACC and domestic savings are building to a point where there is no excuse for capital constraints. It’s simply a question of what we value to support.
Even in an environment of rising unemployment the best people for the job have to be remunerated and supported well to be retained. Infrastructure investment by councils is frugal at best and absent at worst because of constraints on rating income.
When we do create, establish and build a new business the wider community wants to see it succeed and provide enduring well-paid jobs.
There are many stakeholders who support enterprises, and it is not just the investing shareholders who take a risk. All this leads to my view that directors of companies have to take their roles very seriously. And that goes beyond the fiduciary and legal duties.
Not everyone gets the opportunity to guide and grow our country. People depend upon company directors’ decisions for better or for worse. We must always hope for the best and for success.
The same applies to politicians who should absolutely understand that role before putting their hand up. Whether its government or governance every one of us has to take responsibility for our roles and be judged by the success or failure we deliver.
Maybe then and only then can the huge increase in director’s fees implemented by the coalition government be justified. In the meantime, we should all strive for sustainable success at every level, commercial, community and environmental.
