Christchurch prepares welcome mat for Motorola

By DANIEL RIORDAN

Technology giant Motorola will decide whether to set up a Christchurch research facility employing more than 200 staff by the end of September.

Government officials are optimistic of a favourable outcome, which will ultimately boost the local and national economy by tens of millions of dollars.

A delegation, headed by New Zealand's ambassador to the US, Jim Bolger, visited Motorola officials in Chicago late last month to make a final plea on Christchurch's behalf. The group also included Trade NZ officials and Canterbury Development Corporation's chief executive, Chris Pickrill.

Christchurch's bid has gone to the top of Motorola's Kiwi list ahead of others from North Shore, Auckland and Wellington.

Gary Langford, director of Investment New Zealand (the arm of Trade NZ charged with attracting investment to the country), said Motorola had asked if it could hold off its decision until the end of September to satisfy its internal requirements.

Guy Tapley, manager of Investment NZ's corporate attraction unit, said the meeting with Motorola senior management was very successful, working through a number of issues with the company about any investment in Christchurch.

He said he could not comment on details of the discussion, but was pleased with the outcome.

"It was a positive discussion. We feel New Zealand is in a reasonably strong position but we're not there yet."

New Zealand interests had now done as much as they could to lure Motorola here, and the rest was up to the company, said Mr Tapley.

Motorola's Melbourne-based spokesman, Russell Grimmer, said he could add nothing to the comments of the Investment NZ officials.

The deal is seen by many as a potential "circuit-breaker" that could lead to further major corporates setting up in New Zealand, creating jobs and wealth.

Motorola first became interested in setting up a software research facility in New Zealand 18 months ago.

Investment NZ has acted as a facilitator, liaising between Motorola in Chicago and representatives of what has become its preferred New Zealand location, Christchurch.

"We've had to demonstrate New Zealand has the academic and other infrastructure to support a 200-person centre," said Mr Tapley.

"We've worked with the universities about their ability to turn out the right types of graduates and Motorola is now comfortable with that."

Mr Tapley said the attraction of Christchurch for Motorola included low-cost structures.

Other factors in any decision to locate here included scope for Motorola to become involved in other areas of the local economy.

Investment NZ's annual budget was recently increased from $1 million to $4 million, which it uses to encourage firms and individuals to invest in New Zealand, as well as helping local companies do business offshore. The organisation does not offer financial inducements, but acts as a facilitator between parties here and overseas.

The facility would be Motorola's third research and development facility in Australasia.

If Christchurch is successful, it will have won against stiff competition from Australian cities able to call on federal Government tax incentives as well as a raft of state government business incentives.

Christchurch City councillor David Close said the council had been able to offer some "modest incentives," the biggest a guarantee of a long-term lease at a reasonable rate on the former Southpower building in the central city.