Air NZ’s gift for lobbyists
A lobby group focused on keeping New Zealand onside with China has received more than $1.5 million in taxpayer funding since 2016 and gets ‘‘travel funding’’ from Air New Zealand to fly regularly to China.
The New Zealand China Council – a New Zealand-led, New Zealandfunded organisation – was established in 2012 as part of a New Zealand Government strategy to improve links with China by bringing together influential people from both countries.
In the 2018 financial year its revenue was $824,670 with more than half of that coming from taxpayer funded organisations including the Ministry of Foreign Affairs, New Zealand Trade and Enterprise, Education NZ, Tourism NZ and Universities NZ.
The council’s costs for 2018 were $806,440.
The incorporated society is chaired by former National Party cabinet minister and deputy prime minister Sir Don McKinnon and features well-known names on its executive board such as former prime minister and Mainzeal director Dame Jenny Shipley, Fonterra chairman John Monaghan and former Wellington mayor Kerry Prendergast.
Its advisory board includes the likes of high profile lawyer Mai Chen, Labour list MP Raymond Huo, National list MP and former Chinese spy teacher Jian Yang and NZME journalist Fran O’Sullivan.
At the group’s annual meeting in November, McKinnon thanked Air New Zealand chief executive Christopher Luxon for ‘‘the generous provision of travel funding which enables our regular visits to China’’.
An Air New Zealand spokeswoman said the airline supported a range of organisations with travel assistance but would not comment on how much it gave the council.
The New Zealand Government owns 52 per cent of Air New Zealand. The remaining shares are listed on the NZX.
McKinnon also thanked the Ministry of Foreign Affairs and Trade (MFAT) and New Zealand Trade and Enterprise (NZTE) for their ongoing financial support.
Over the past four years the Ministry of Foreign Affairs and Trade has given the New Zealand China Council close to $1.5 million.
An MFAT spokesman said it made up about half of the council’s funding.
The New Zealand China Council brings together people across a broad spectrum of New ZealandChina relations and was committed to preserving New Zealand’s interests with China, he said.
MFAT recognised the importance of this, he said.
Funding was used to support activities of the council approved by
‘‘It has been reassuring to us in the council to hear of our Government’s restatement of the importance of the relationship to New Zealand.’’ Council chair Sir Don McKinnon
its executive board, he said.
Examples included studies relevant to New Zealand-China relations, support for community activities such as New Zealand China Language week and the New Zealand Chinese Speech Competition, as well as staff costs.
An NZTE spokeswoman said it supported the New Zealand China Council in its effort to build a strong and resilient partnership between New Zealand and China. It had paid the council $80,000 each year for the past two years.
Universities New Zealand pays New Zealand China Council $17,250 to cover executive board member fees for professor Grant Guildford, vice-chancellor of Victoria University of Wellington.
Tourism New Zealand has given the council about $30,000 over the past three years. A Tourism New Zealand spokeswoman said its focus was on making New Zealand an attractive destination to high-value visitors.
Education NZ provides funding to the New Zealand China Council but did not respond to requests for comment.
The New Zealand China Council is currently in damage control as it attempts to play down suggestions the New Zealand-China relationship is deteriorating following the New Zealand security agency the GCSB’s decision to block telco Huawei from supplying Spark with 5G technology.
In a speech in Wellington to government officials, business people, and board members on February 19, McKinnon said the past few weeks had been ‘‘something of a rough and tumble for the relationship’’.
‘‘Amidst the many – and sometimes confused and alarmist – commentaries it has been reassuring to us in the council to hear of our Government’s restatement of the importance of the relationship to New Zealand,’’ Mckinnon said. He said there would be challenges between China and New Zealand. ‘‘There will even be occasional disappointments – some big, some not so big. That is when we need to redouble our efforts to engage with each other, to explain and discuss any differences and to look for those areas where we can move forward.’’
Meanwhile, when asked about Shipley’s future on the executive team following a High Court order for her to pay $6m for her involvement in the Mainzeal collapse, McKinnon said all appointments to the board were made by the executive board and board membership was under regular review. He would not comment further.