Northland and China Railway to sign terms of engagement

Northland Regional Council chairman Bill Shepherd, front, and Northland Inc business growth manager David Templeton.

It has been nearly a year on the to-do list and its significance has been under speculation in recent weeks, but the Memorandum of Understanding between Northland Regional Council and China Railways is now written up and ready to sign.

Rather than a document based on secrecy and potential deals between the Chinese government-owned railways and the council - as earlier claimed by Northland MP, New Zealand First leader Winston Peters and others - it is what council officials said it would be: an introductory handshake on paper and a promise the two partners will play nicely.

It will be signed on Monday. Northland Regional Council (NRC) chairman Bill Shepherd said the memorandum formalises an agreement to identify and develop business opportunities for the benefit of the Northland economy and its people.

It is non-binding and does not identify or list specific projects of joint interest the Chinese may invest or co-invest in.

It builds on a relationship that began in June last year when the council hosted a delegation from China Railway Zhongji Holding Group, Mr Shepherd said.

When news broke that an MoU was on the cards, Mr Peters said a deal was in the offing for the state-owned Chinese rail and road builder to fix part of State Highway 1 and tack on the Marsden Point link.
That was among other claims he made about "secret" talks concerning contracts with China between local government and local business.

NRC said the memorandum currently has no financial implications for the council, but the possibility it might lead to some sort of investment opportunities in future could not be ruled out, Mr Shepherd said.

"One of council's roles is to advocate for economic development and attract investment and jobs into the region,'' he said.

"The MoU makes it easier for us to do this by providing potential Chinese investors with advice about who they should be talking to when they are looking at potential developments."

Regarding recent claims the council was part of secret negotiations concerning a private/public contract for the job to widen the highway from Whangarei to Marsden Point, Mr Shepherd said the NRC is not in the business of building roads, rail and other infrastructure.

There are other agencies and businesses at both local and national level which already do that, he said. District councils are responsible for local roads, while the NZ Transport Agency is responsible for state highways. KiwiRail is responsible for the rail network.

"The MoU simply outlines a proposed, high-level strategic relationship between ourselves and China Railway Zhongji Holding Group and enables us to maintain a warm, strong and mutually beneficial relationship," Mr Shepherd said.