Challenge to business 'access to funds'

Alison Paterson. Photo / Supplied

The biggest challenge facing New Zealand businesses is gaining access to secured funding as the world recovers from the global financial crisis and the aftershocks in Europe, Queen's Birthday honour recipient Alison Paterson says.

Paterson, who has been made a Companion of the New Zealand Order of Merit for her services to business, said banks were reluctant to lend one another money in the wake of the financial collapse and the possibility the euro could destabilise had reduced investor and business appetite for risk.

"The challenge is sustainable growth and innovation. Businesses need to innovate, to know what your product is and how to attract business. Money has been tight. There is concern about what is happening in Greece, Spain and Portugal, what the impact on the euro will be."

Another challenge for businesses was the reduction in consumer spending as households tried to rebuild their balance sheets, she said.

"We're seeing a lot of discounting. Fisher & Paykel, Briscoes, The Warehouse are all looking to attract the consumer. Businesses need to think about what they are doing to attract consumers. Up until 2007 there was a decade of economic growth. In the past 13 years business has changed dramatically."

There were three ways businesses could increase revenue, either sell more, sell for more, or discount, and retailers had been discounting stock for the past three years, Paterson said.

But she said it was important for businesses to look at the wider economy and not become "tunnel visioned".

Despite the fact that New Zealand, and especially Australia, were buffered from the worst of the financial fallout, unemployment had increased here and graduates were finding it difficult to get jobs, she said.

Paterson said working on the Reserve Bank board for 15 years, working for DHB New Zealand and being the chairwoman of Landcorp Farming and Waitemata Health had been career highlights.

A career that spans decades includes being a current director of Vector, Metrowater and Nga Pae o Te Maramatanga - a centre for research excellence.

She is also a councillor of Massey University and was last year awarded an honorary doctorate from the university for her contribution to business.

She was the first woman to be on a producer board when she joined the Apple and Pear Marketing Board in 1978, and the first woman to be appointed to the board of a publicly listed company.

Paterson said that despite being "the only woman on many boards" she never felt any discrimination.

"It never made any difference. It was good to work with men. Theywere always very generous towards me."

At present, Paterson is chairwoman of Abano Healthcare, Stevenson Agriculture, the Emergency Ambulance Communications Centre, the Best Practice Advisory Centre, and the National Research Centre for Growth and Development - another research centre at Auckland University.