Trade board resignations embarrassing'

David Parker. Photo / NZ Herald

Labour says the mass resignation of the private sector China Beachhead Advisory Board is serious and the Government should be embarrassed.

The board quit at a meeting at the New Zealand Embassy in Beijing this week, saying NZ Trade and Enterprise was undermining its work helping companies do business in China.

Labour's economic development spokesman, David Parker, linked the resignation of the board chaired by expatriate banker David Mahon to his recent criticisms, saying the Government had plenty of warning that things were not working properly.

"They weren't attacks on the Government - they were just critical of the failure of policy."

Parker said Labour, which negotiated the free trade deal with China, shared Mahon's frustrations.

Mahon had said New Zealand was failing to take the opportunities that arose from the free trade agreement.

"We think that David Mahon's criticisms are right," said Parker.

The resignation came despite an attempt to find a resolution by NZTE chief executive Peter Chrisp, who flew to Beijing for the Monday meeting.

Mahon has worked in China for 26 years, and the other seven members are either high-flying local businesspeople or other expat Kiwis. They are at present helping 12 companies to expand into the China market.

Mahon told the Herald from Beijing: "The board had no option but to resign because it had become clear to us all that we were an unwanted programme by NZTE China, that the NZTE team in China had undermined our work for New Zealand companies because they were reluctant to engage in a full partnership.

"So without trust and respect there was no point in continuing."

Asked how the board felt undermined, Mahon said: "In order to work wholly with New Zealand companies, we have always needed full information, full transparency and this was not always made available to us by NZTE."

There had been parallel discussions and projects in key sectors that the board had been asked to help companies with - such as wine.

"And because of this lack of transparency and communication, it caused, at times, embarrassment in respect of the companies and unnecessary duplication of work."

The resignation is likely to be an embarrassment for NZTE and the Government because growing trade with China is so highly prized by the Government.

It is understood a reference by Chrisp to a "couple of years of operating tensions" relates to NZTE's China regional director, Rod MacKenzie.

The Beachhead board did not want to work with him but Chrisp would not make personnel changes on the basis of outside objections.

The board has been operating for three years.