By Yoke Har Lee
Local economic development agencies are pitching to be the preferred location for Motorola's third research and development facility in Australasia.
But unlike the Australian states, Auckland's local authorities are shying away from offering tax breaks.
A decision won't be made by Motorola until the end of the year, Motorola's vice president (Pacific Region) Ron Nissen, who is based in Australia, told the Business Herald. But he won't be drawn into the selection criteria on the ultimate location nor will he discuss what proposals he has received.
Auckland City, Enterprise North Shore, Auckland International Airport (in Manukau City) and the Canterbury Development Corp are among those said to be keen to attract Motorola.
One industry source said there was a bigger issue at stake: "It is related to the experience of regional development. We don't do that well. What is important is that you sell the bigger unit first. You don't worry about location. Each city presenting its strategy presents an inconsistent view."
Guy Tapley, the New Zealand Trade Development Board's manager for investment services (Asia Pacific), agreed there was a lack of coordinated approach in each city within the Auckland region, unlike Canterbury which has a regional approach.
Cushla Gamlin, general manager for Enterprise North Shore confirmed North Shore was positioning itself as a natural software centre with the access to Massey University's Albany Campus' academic output and the Auckland Institute of Technology's branch.
She said while North Shore was competing with Auckland city "we cooperate to be competitive".
"We are each trying to promote out local region. But what's good for the North Shore will be good for greater Auckland. We are part of the regional economic development and that does not happen in isolation."
Victoria Carter, chairman of Auckland City's attractions (economic development) committee said the city was looking at a range of alternatives to facilitate Motorola and other investors.
Auckland International Airport's chief executive John Goulter confirmed that the airport, as a property developer, had offered itself as a possible location for Motorola. He said that was purely from the point of a property developer.
A Manukau City official said the council would facilitate the Airport's plans for local development.
Mr Tapley said Motorola has expressed strong interest in Auckland and Christchurch as possible choices.
"They have said they want to be near universities with strong software development output. They also would like to be in an area where there is a cluster of similar or IT activities," Mr Tapley said. Trade NZ is the country's de facto investment promotion agency.
The government, he said, has unequivocally said it would not offer financial incentives to anyone.
"At the end of the day, it depends on how the sums (cost structure) add up. So anything of that nature will have to fall on the local community," Mr Tapley said.
Ms Carter of Auckland City said: "People who want to come to Auckland are looking at their different requirements. Regardless of what people say, we still have the CDB. And as a councillor, I think reducing these differentials (rates) are our initiative to make sure the CBD doesn't die. It is not a question of competition, I think each region offers different things to businesses coming to Auckland. It is more about which city is going to give the best to the business setting up."
Agencies battle for Motorola facility
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