Leading Questions: Vector boss Simon Mackenzie on how Covid offers NZ tech opportunity

Simon Mackenzie, chief executive of Vector. Photo / Supplied

Simon Mackenzie has headed Vector since 2008.

How would you describe 2020 for your business?

It was a combination of very grounding with some positive developments that, together, unified us and made us stronger. Grounding because Covid really brought home to all of us just how much our business is an essential service and the dependence of the community on us, not just in Auckland but across New Zealand and Australia. I was proud of how everyone worked, pretty much seamlessly, in a new mode despite all the challenges of lockdown and the different alert levels. Positive because, in parallel with that, we managed to continue to grow, deliver our services, expand our metering business, and enter a strategic alliance with Amazon Web Services, while supporting each other through a year like no other.

How do you think the Government has handled the Covid-19 crisis?

They've done a really good job. Anyone who has led through a crisis knows that things rarely go smoothly and unforeseen challenges arise that you have to tackle as you go. The main area of frustration for many came from the issues with the quarantine facilities and the border, but no one had any idea how this would play out and it's easy for people to be clever in hindsight. You only have to look at how we sit now compared with the rest of the world to acknowledge that the Government has handled the crisis well.

What are two key things the Government should do for economic recovery?

I'd like them to think about how, given the state of other countries, we can use this opportunity to grow our tech capability by attracting people and large companies from the tech sector to establish themselves in New Zealand.

We have struggled to get people here in the past, but we know from first-hand experience with Amazon Web Services there are highly skilled people who would move here at the drop of a hat right now. There is a real opportunity, given Covid-19, climate change, and political issues overseas, to create the environment for NZ to become a player in the tech sector globally. But we need to get moving if we want to make it work.
Secondly, they need to rethink how they drive large-scale projects, using a different model that doesn't try to recreate the infrastructure of the past. Decarbonisation should be central to the thinking and form a core objective, with private sector experts brought in to lead the developments instead of government agencies. A refined model of the Ultra-Fast Broadband process could be a good place to start.

How is your business planning to tackle 2021?

We are going to continue to build on the lessons learned and initiatives that came out of 2020 thanks to Covid-19. These include greater flexibility; the ever-growing use of tech; collaboration with like-minded people and organisations, particularly strategic alliances with global tech partners; and we'll continue to look optimistically at the future, focusing on solutions, not problems.

What will be the major challenges and/or opportunities for your industry?

The electricity sector needs to beware of complacency that comes from already having a high percentage of renewable energy thanks to historic investments by the Electricity Corporation of New Zealand. The landscape is changing quickly and we're facing a significant and potentially rapid demand for new energy solutions from people and businesses, which we have to be ready for. We need to design energy systems around the customer, transforming our systems to start with demand, not supply. The use of technology and data is key to developing new products and solutions for customers, and rewiring how the energy sector is developed, structured and operated. To add a bit of Christmas spice into the conversation, I think the government ownership of significant parts of the sector is problematic.

What was the most interesting non-Covid story of 2020?

The US election. I don't think it has ever captivated people around the world quite as much as it has this year – captivated with a sense of disbelief. I've also been keeping a keen eye on the rise of Scottish independence: if there was a vote now, the pro-independence side could win and Scotland's First Minister is pushing for another referendum on this next year. Watch this space!

Where are you holidaying this summer?

The same place we've been going for the past 15 years: in the beautiful Far North. It's where I go to surf, fish and spend time with family and friends. I look forward to it every Christmas, but this year more than ever. It's been such a hard year for everyone and we cannot underestimate the mental toll it's taken on a lot of people. I know a short summer holiday is not going to fix everything, so supporting people's wellbeing is a really critical ingredient we all have to be mindful of for 2021.

What are your predictions for 2021?

Unfortunately, I think we will still face a lot of challenges around Covid-19. We must not be complacent about our position in New Zealand as we have seen how quickly it can unravel. I hope we don't rush back to opening everything up and find ourselves in another wave that's worse than we've already experienced.

We'll continue to see New Zealanders return home from overseas, putting more demand on housing and the economy, but also bringing their skills and experience back with them. So, how do we manage this "brain gain" to the benefit of all New Zealanders and minimise social and economic divides increasing? I'm concerned about supply chain challenges getting worse, which could impact many businesses, including ours in 2021. Now the Government has declared a climate emergency, we will see some pretty significant policy proposals to rapidly advance decarbonisation. I predict a swift increase in interest in electric vehicle charging and a rise in new technology such as solar panels and batteries. This needs to be accompanied with a growing recognition that infrastructure and regulation need to change to enable us to respond well to the new demands.