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Corin Dann - Source: ONE News -
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Corin Dann, who's leaving Business to become a permanent
fixture on the Breakfast couch, looks back on his years in business
reporting and presenting.
I started as a dedicated business and economics reporter around the
time the US sub prime mortgage crisis broke back in early 2007.
Since then, unfortunately, it's felt like at times all I've done is report on bad news.
There have been the finance company busts, share market plunges, the prolonged recession, the massive corporate failures, the high dollar, rising unemployment and the euro zone debt crisis.
Putting it another way, I've covered the bust but not the boom in the business cycle.
Of course I schooled up on the boom years of the early 2000s and heard about what it was like to be working in finance during that period of debt fuelled excess, corporate swagger and big profits.
Big ups to the likes of Brian Gaynor and my bro Liam for also regaling me with some of their always excellent insights on this period.
However in reality the financial glory days of the boom - I was working as a parliamentary reporter - are a bit foreign to me.
My first hand knowledge of large mergers, corporate take-overs and leveraged private equity deals is frankly a bit limited, because there just hasn't been much of that kind of activity in New Zealand over the last four years.
So it was with some excitement that I greeted the news of Fletcher Building announcing this week that it is to launch a massive - in New Zealand terms anyway - billion dollar takeover bid for Australian firm Crane Group.
The merits or otherwise of the deal will be debated extensively by analysts and the media over the next 30 days, and I'm sure there will be plenty more twists to come in this hostile takeover bid.
However I think the mere fact that Fletcher's has decided to act now in such bold way is significant - especially given the criticism it got for its last purchase of the US-based Formica back in 2007.
At that time it was criticised for buying at the top of the market. Might it now have learned a lesson and be buying at the bottom of the cycle or near to it?
Its shareholders will certainly be hoping so.
It's a story I will be watching with interest, but not with the same level of scrutiny as I once would have.
As next year I will be moving out of my dedicated business role and onto the Breakfast couch.
I've loved covering business and remain constantly amazed by the energy, creativity and drive which I see in so many great Kiwi businesses and business people.
Feeling positive
Over the last four years I think there have been some real positives for local businesses and the economy.
Firstly we have finally started to address and rectify our habit of over investing in the property sector.
And some credit must go to the government for finally nudging Kiwis away from the lure of bricks and mortar with their tax changes. Some may argue it's still not enough, but at least it's a start.
Regulators too have stepped up their game and started the process of restoring confidence to the market place after so many finance company collapses.
The SFO with its host of investigations in play really looks like it means business. And the introduction of the Financial Markets Authority - or new super regulator - is also a very welcome development.
Our biggest and most important company Fonterra finally reformed its capital structure and now looks well placed for the future. Plus the IT industry has thrived over the last couple of years as firms have looked for productivity gains.
The top 300 or so IT companies in New Zealand now earn billions of export dollars and its industry leaders even reckon that, with the advent of broadband, it can go on to rival dairy as our lead export earner within 10 years.
This is crucial in my view if New Zealand is to create the interesting and high skilled jobs which will keep young Kiwi graduates in the country.
I need to mention a few negatives too though.
Concerns
The inability to grow our stock market is still a big worry and small companies with exciting ideas still find it far too hard to raise capital in this country.
The high dollar remains a big barrier to growth - and no one yet seems to have any ideas on how to combat it, while unemployment too should be lower by now.
The failure of politicians to take any kind of bi-partisan approach to thorny issues like the retirement age and the deficit also remain a frustration.
Thanks and goodbye
Anyway thanks again to all of you who've been reading my column over the last three years and watching the show.
It's been a privilege to be the NZI Business Presenter, and I'd like to say a big thanks to all the regular guests and contributors who have come on the show.
Nadine Chalmers-Ross, reporter/producer/my back-up presenter - it's been fantastic working with you. You are an immense talent with an incredible business knowledge and |'m going to miss you heaps. I wish you the very best for next year.
Also big thanks to my producers Brett Cammell and Suze Burgess who have both been fantastic and wonderful to work with.
Have a great Xmas and excellent New Year and tune in on January 17 for the new look Breakfast.
