Seldom has the saying ''as one door closes, another opens'' seemed so appropriate as in Dunedin this week, given the contrasting fortunes of two of the city's food and beverage manufacturers.
Bell Tea and Coffee Co on Thursday confirmed more than 100 years of tea production in the city would end next month, as the company goes ahead with its plans, announced last week, to shut its Dunedin factory (in light of an estimated $1 million earthquake-strengthening price tag) and move machinery to its Auckland factory.
The same day Bell Tea's plans were confirmed, Cerebos Gregg's announced it would consolidate its coffee and food production in Dunedin and Sydney, and close its Auckland plant.
The loss of Bell Tea from the city is poignant given it is the country's oldest tea company. The company had made a substantial investment in new equipment several years ago, more people are now set to leave the city (two of its 10 staff were expected to move to jobs at the Auckland factory, and others possibly to jobs with Foodstuffs in Christchurch while others stay in Dunedin), and the fate of the Hope St building is uncertain.
Earthquake-strengthening requirements, continued tough economic times, market variations and centralisation are having a profound effect on businesses.
It is heartening therefore to see other businesses investing further in the city; indeed it is essential if we are to stem the flow north. While an increase in jobs above the current 40 staff at Cerebos Gregg's is not expected in the short term, another $10 million will reportedly be spent on redevelopment and machinery, and increased production and related transport activity is expected to contribute further to the economy.
Of course, when it comes to businesses restructuring, it has to be remembered in this case one city's loss is another's gain. No-one will be immune to the heartache of the 125 Cerebos Gregg's workers who will lose their jobs at its Auckland plant when it closes about Christmas. Dunedin has recently made other gains at others' expense too, most notably as Lawrence-based Tuapeka Gold Print, the town's major employer, moves its printing operations to the city as a result of that company's spectacular growth. But Dunedin has certainly also felt the ''loser'' in recent months, often as a result of what seems to be an increased big-city/centralisation ethos, which sparked the ''Stand Up Otago'' campaign spearheaded by this newspaper.
As such, any news of business expansion and job creation in the city is worth celebrating. Other recent ''good business news stories'' include Fisher and Paykel, which will see a multimillion-dollar expansion of its design centre to cater for another 60-plus jobs (although, of course, hundreds of jobs were lost to the city when the whiteware manufacturer moved production offshore several years ago) and Speight's Brewery's multimillion-dollar redevelopment. A great many more such good business start-ups and expansions are needed in order for the city and region to really feel as if the tide is turning.
Yes, the tyranny of distance is an issue for Dunedin, as it is for New Zealand globally, when it comes to transporting our goods to market, but our cheaper infrastructure, our considerable skillbase, health and education training institutions, and lifestyle opportunities are significant factors in our favour, and the internet has opened enormous possibilities for traditional businesses and start-ups alike. Fundamental concerns around centralisation will remain a challenge. But concentrating investment around Auckland and Christchurch at the expense of smaller centres only exacerbates the growth/demise scenario, and with it the problems of housing affordability and sustainability.
It is a fine balance.
Any business and job losses must be replaced, more sought to grow the local economy and increase the opportunities for residents, and continued work done on initiatives that encourage and support investment here. The significant commitment from, most recently, Cerebos Gregg's, Fisher and Paykel, Tuapeka Gold Print, Lion New Zealand, and of course many other long-standing and new businesses and institutions is welcome.
It is to be hoped more will continue to ''stand up'' and add their strength to the historic foundations on which this illustrious city and province were built.
