Bickering brides lose sight of groom

By Yoke Har Lee

Between the lines

If Ron Nissen, Motorola's vice president (Pacific Region), is not thoroughly put off by New Zealand's approach to getting the multi-national telecommunications equipment manufacturer to invest here, he must be at least having a chuckle.

Anecdotal tales suggest New Zealand local councils, some regions and even the universities are all scrambling and bickering over how to get Motorola's attention. An official of one local council's economic development enterprise is said to be hopping mad at being mouthed off by another enterprise courting Motorola.

Those willing to be brides are: Wellington, Christchurch, Auckland (and here there are three competing ones: Manukau, Auckland and North Shore city councils) and others who have not gone public in the courtship.

The scenario: Motorola is looking at setting up a third research and development centre in Australasia. It has two others now - one each in Melbourne and Sydney. Motorola has publicly been very polite, saying we have all the right things to offer. We are even deemed attractive, cost wise. Motorola doesn't even mind that we don't offer any fiscal incentives.

Here's a punter's reason to why New Zealand won't make it up the aisle with Motorola, not for now anyway. Australia, which already has two of Motorola's R&D centres, would be the next logical choice.

Australia, which in the past had a few positive factors on its side - generous R&D tax provisions included - scored another victory with its corporate tax cut.

But more importantly, Motorola's concern will be at our ability to supply the brainpower. The most stark reminder comes from Dr Howard Frederick from Victoria University who recently helped author the report, The Knowledge Economy.

His point: Motorola is looking to interview at least 1000 - or the country's entire annual relevant graduate output - to hire about 100 graduates a year.

In Christchurch, for instance, which is about the most logical choice for Motorola if it does decide to come to New Zealand, the engineers graduating from Canterbury University are easily snapped up by the likes of Tait Electronics and Trimble of the US, a specialist in global position systems. Both already face problems finding engineers to meet their needs.

New Zealand's low number of scientists and engineers in R&D and equally low number of science graduates in the labour force needs immediate attention but can be solved over time.

More difficult would be how to address the local and regional rivalry which will drive not only Motorola away but other intending investors.

The worst thing to do is to turn the whole country into an investment-location tournament which would allow intending investors to play regional or local councils against one another.

If Motorola chooses not to come, it would be a lesson well worth paying for.