Motorola shock for Christchurch

By DITA DE BONI

Christchurch has lost the fight to secure Motorola's multimillion-dollar research plant but apparently has not been altogether ruled out as a future destination for the global technology giant.

Widespread disappointment washed through the city last night on hearing Economic Development Minister Pete Hodgson announce that Australia had been chosen over New Zealand for the highly prized contract.

The company is expected to announce the research plant's home city within the week.

With the lost contract goes 150 new jobs and a software research facility that would have provided a welcome fillip estimated at tens of millions of dollars for the southern city.

But a "high-ranking" Motorola official is coming to Christchurch in the next few weeks to talk to businesses in the area, and the company has indicated to local authorities it will "seriously consider New Zealand in the future," Trade NZ's Gary Langford said last night. "I mean, we were ranked first by [Motorola's] corporate team."

"Please make it clear: we have done everything that's humanly possible to make [New Zealand] the right place for them."

Auckland had earlier dropped out of the running as a possible destination for the research centre.

Mr Langford did not want to speculate on why Motorola had chosen to go elsewhere, but said the tender process had been a "strong learning experience" for everyone involved.

Mr Hodgson confirmed that a Government assistance package had been offered to the company but said the details could not be disclosed without compromising future negotiations.

Motorola spokesman Russell Grimmer said he could not say why New Zealand had lost the contract, but said Government and local incentives played only a small part in the decision.

He confirmed that New Zealand had not been eliminated from the company's radar screen. The Motorola trip to Christchurch in the next few weeks could lead to some "very big business opportunities indeed."

Canterbury Employers Chamber of Commerce chief executive Peter Townsend said he was very disappointed but "there are worse places to come than second."

Canterbury Development Corporation's Chris Pickrill said he was also disappointed, but said Christchurch could take solace in the fact that it had several European and United States multinationals in the area -"all relationships we can continue to build on."