A private sector board helping New Zealand companies expand into China quit en masse because its members disagreed with New Zealand Trade and Enterprise’s approach, Acting Minister for Economic Development David Carter said today.
All members of the China Beachhead Advisory Board resigned last month, saying NZTE was undermining their work. Board chairman David Mahon said it had become clear to members it was unwanted by NZTE in China.
In Parliament Mr Carter said: “Differences of opinion developed over quite a period of time between the Beachheads advisory board and New Zealand Trade and Enterprise, and it was agreed that the best way forward was to start with a clean slate.”
Labour’s David Parker highlighted concerns Mr Mahon raised that New Zealand had failed to pursue opportunities under its free-trade agreement with China.
“Why should New Zealanders have any confidence in the Government’s handling of trade and investment opportunities with China, given that the mass resignation of the private sector participants in the Beachheads programme for China is a vote of no confidence by those most closely involved?”
Mr Carter said he did not agree with Mr Mahon and said he had confidence in the work of New Zealand exporters and NZTE.
“China has become New Zealand’s second-largest trading partner since 2008. We have observed a 140 percent increase in the amount of trade with that country. That is the fastest rate of growth in the history of New Zealand and of New Zealand Trade and Enterprise.”
Mr Carter said it was up to NZTE if the board was replaced or not.
He disagreed that the resignations had damaged New Zealand’s reputation.
“I do not believe any damage has been done to the New Zealand reputation in China at all. What the member needs to realise is that the Beachheads programme dealt with 12 New Zealand companies working in China; New Zealand Trade and Enterprise works with 183 companies quite successfully, as the trade figures demonstrate.”
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Submitted by jcinanshan on Tue, 05/07/2011 – 10:03pm.
Having lived in China for 6 years I am continually surprised that Australia, without a free trade agreement, has more goods available here than New Zealand. David Mahon and his team are highly respected here among business people and is often featured on television and it beggars belief that a New Zealander of his stature is not part of any negotiations that New Zealand is part of.
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