NZTE China advisors quit
Eight member board, including chairman David Mahon, resign
Friday, June 24 2011 || News || BY Andrea Fox, Businessday.co.nz
Mahon, a veteran investment adviser in China, said that for at least two years his board has been trying to resolve the issues that flared to a head in a meeting with NZTE chief executive Peter Chrisp in Beijing this week.
The eight member board including Mahon resigned at the meeting telling Chrisp it was not wanted by NZTE.
''As we said, we don't need to do this if we are not wanted. This is being done for New Zealand largely by people who are not New Zealanders, but out of respect for New Zealand.''
Beachheads is an NZTE programme designed for high-growth New Zealand companies looking to improve their international connections.
Its eight regional boards connect participating companies to a network of advisers, successful private sector executives and a mix of expat Kiwis and local business people.
The China board's formation in 2008 coincided with the signing of a New Zealand-China free trade agreement.
Mahon said NZTE China acted like it was in competition with the advisory board, set up to advise New Zealand companies on establishing and growing in China.
Chrisp has not been available for comment. An NZTE spokeswoman said the trade programme would continue.
The board comprised three Kiwi business people including Mahon, two leading Chinese businesswomen and three foreigners who had lived and run businesses in China for up to 10 to 20 years, Mahon said.
The advisory board members were paid ''but it doesn't come near what these people would earn in an hour''.
He had been asked to set up and chair the advisory board three years ago.
''In many cases in south-east Asia and in other places it (the New Zealand Beachheads programme) has worked very well, but in China it hasn't worked. It's been an unwanted partnership on behalf of NZTE China.''
Trade Minister Tim Groser is overseas.
BusinessDay in May reported Mahon strongly criticising New Zealand's failure to take advantage of its trailblazing free trade agreement with China.
He called it an ''unconsummated marriage'' that would prove a commercial disaster for New Zealand and accused government departments responsible for trade and commercial development in China of self-interest and having territorial sensitivities.
Mahon wanted New Zealand "to break open the silos within its bureaucracy" and create a single commercial entity to tackle the China market.
The many small companies that comprise New Zealand's key sectors need to do the same: end their territorial jealousies and create collaborative commercial vehicles," Mahon said.
Recipients of "millions" of dollars of NZTE funds to help small companies and institutions to enter and grow in China should be required to work together where practical to deliver convincing returns to New Zealand taxpayers, he said.
We who know China and lived here for a lifetime know all about it. New Zealand has simply a bad attitude, and the Chinese know it. They reject any competence that does not kneel down and touch the floor with their forehead.
Get rid if NZTE and the ivory tower tower bureaucrats in China.
harriss.rick@gmail.com in Hong Kong
Posted by Rick Harriss at 09:50 on June 25, 2011
The only thing that is a surprise is that someone (or a group of people) have finally gone public on the frustration with NZTE as an organization. The review of NZTE by the State Services showed how poorly managed NZTE was (prior to the new CEO coming on board). In my experience a lot of companies / organizations feel frustrated with NZTE but will no speak out for fear of being black listed.
The real concern is that NZ is missing the China boat badly - where is NZ inc's China strategy? .I understand that NZTE thinks it is doing more of the same but maybe a little better. Based on the above that just will not work.
Posted by Anonymous at 09:03 on June 28, 2011
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