Focus: How to stop the spread of coronavirus. Video / AP / Mark Mitchell
Closing international borders will affect the marine industry but opportunities are still out there, Q-West Boat Builders managing director Myles Fothergill says.
"Let's not overlook a good crisis. It's just a matter of identifying [opportunities] and working the right way, without wasting money," he said.
Half of the superyachts expectedin Auckland for the America's Cup in March next year are likely to pull out because of the coronavirus pandemic, RNZ has reported. That could strip boat builders of $150 million in refit and maintenance work.
About 40 per cent of the work Fothergill's Whanganui company does is linked to tourism. He wasn't planning to get involved in refits, but could gain through supporting Auckland marine businesses.
However, Q-West is building three 12m rigid inflatable patrol boats that will be used by Auckland police during the cup. It also has a 24m passenger ferry on the go for a South Island tourist business.
And Fothergill can see other opportunities ahead - with an aquaculture industry that Fisheries Minister Stuart Nash wants to grow from $600 million a year to an annual $3 billion over 15 years.
Q -West Boat Builders general manager Colin Mitchell (left) and managing director Myles Fothergill. Photo / Bevan Conley
"The industry will need $300m in boats in the next 10 years to support that growth," Fothergill said.
Auckland Transport will also need to replace some of its ageing ferries - an ideal "shovel-ready" project for Government to support. Q-West has already built three ferries for Auckland, and Fothergill said the rest of the fleet will need replacing.
"It has to go ahead at some stage. That's still work that I can hang my hat on."
Q-West also has other projects on hold.
It stopped operating during the level 4 lockdown. Its 25 full-time staff got the Government's wage subsidy. That input gave the business resilience, Fothergill said.
With work to return to, there was never any question of making staff redundant.
Fothergill was the chairman of Whanganui and Partners for three years. He's keen to hear when New Zealand will wind down to level 2, and what the Government is proposing in Budget 2020 on May 14.
"Businesses that are struggling need a plan. It's difficult to work out what the plan is, or even if there is one."
The Auckland to Waiheke Fullers ferry, Torea, was the third boat Q-West has built for Fullers. Photo / Bevan Conley
He agrees with Whanganui and Partners chief executive Mark Ward that Whanganui will be in a good position to recover from the pandemic. Manufacturing has been bolstered and primary production will help "providing we don't keep using prime land for basic sheep and beef".
He hopes there will be Government money to upgrade Whanganui's port.
"I've been trying to get that project over the line for six and a half years. I remain positive about it."
And he said banks have been building up their financial reserves, so it is unlikely the Government will have to bail them out as it did after the global financial crisis in 2007-08.
He hopes the Government will invest wisely in sustainable projects. Otherwise there will be liquidations later, which could take other businesses down with them.
Banks are turning down some loan applications, even those guaranteed by Government, and he said that was sometimes because they wanted to stop businesses getting into debt they can't repay.
Average New Zealanders have already played a significant role in supporting the economy in its time of need, he said.
"Government spent $20 billion propping up the economy in the past six to eight weeks. Businesses and workers have spent probably four times that amount, doing exactly the same thing."
He hopes businesses will now support each other.
"If there's a company that's struggling and another that's doing okay, can we look at payment terms that support them a bit better?"
