NZ told to mend fences with India

Paul Henry. Photo / Greg Bowker

Remarks by broadcaster Paul Henry could have a negative impact on negotiations for a free trade agreement, says a specialist in trade between India and this country.

Raga D'silva, deputy chairman of the India New Zealand Business Council, said good relationships were critical when doing business on the subcontinent.

Speaking from New Delhi, she said it was important New Zealand's negotiators took the right approach to the situation surrounding Henry's remarks on TVNZ's Breakfast.

"Our diplomatic leaders need to start looking at ways of rectifying this matter with immediate effect," D'silva said. "Considering India is all about relationships - a slur like this will not be taken lightly."

Henry yesterday resigned from TVNZ.

Negotiations towards a free trade agreement began this year. After Henry's remarks about New Delhi chief minister Sheila Dikshit (he pronounced her name "dik-shit" rather than "dixit") New Zealand's High Commissioner to India, Rupert Holborow, was summoned to the Indian Foreign Ministry and given a formal protest.

Henry's comments were reported in the Indian media with an account of his remarks about Governor-General Sir Anand Satyanand.

D'silva said the comments on the chief minister's name had upset Indians the most. "For instance I was in Delhi yesterday at meetings and at every meeting I had every client brought [Henry's remarks] up," she said.

"They're very upset about it and I had to say 'I'm sorry and embarrassed' as a Kiwi-Indian."

Trade Minister Tim Groser would not comment but an official said there was no link between Henry's comments and the FTA negotiations.

Wenceslaus Anthony, chairman of the India New Zealand Business Council, said Henry's remarks had made a dent in the relationship between the two countries.

He did not believe the comments of one man could have a direct impact on the FTA's progress, but said discussions were needed.

Labour's trade spokeswoman, Maryan Street, said Henry's remarks had created a diplomatic nightmare for New Zealand.

While not necessarily placing the FTA in jeopardy, she said, the comments would make negotiations more difficult.

Export New Zealand executive director Catherine Beard said this country's economy relied on its exports and India was a huge market.

Henry's comments were "certainly not helpful" to the FTA negotiation process, she said.

Beard said she hoped the Indian Government would take the issue "for what it was" - the comments of one individual.

"[Henry's remarks] are not a reflection of NZ Inc."