NZSIS director-general Andrew Hampton says Sister City agreements can bring benefits, but councils should also be cautious. Photo: RNZ / Jane Patterson
Sister City relationships provide an opportunity for foreign agencies to interfere in New Zealand's democracy and councils need to be vigilant, the head of the Security Intelligence Service says.
A group of Hamilton City Councillors are reviewing the benefits of the council's five Sister City relationships with Chengdu and Wuxi in China, Saitama in Japan, Ieper in Belgium and Sacramento in the United States.
Fifty-three councils have relationships with 154 Sister Cities, according to Global Cities New Zealand.
In a Local Government New Zealand (LGNZ) webinar, NZ Security Intelligence Service (NZSIS) director-general Andrew Hampton said one form in which foreign interference occurred was through Sister City relationships.
"Yes, they are about building good relationships with other countries, but they are there to achieve other objectives including foreign interference and even potentially espionage objectives. so we ask you to be vigilant about that," he told councillors.
The NZSIS said in its latest Security Threat Environment report that New Zealand's local governments were seen as a prime target for "influence building" by other countries.
"They are attractive due to their extensive authority over valuable strategic resources and critical national infrastructure as well as their ability to exert influence at a central government level.
"Local governments also attract interest since they own controlling stakes in all of New Zealand's ports and exercise control over the use of public spaces, such as for organised protests or events."
The report said not all engagement with foreign governments was harmful, but it was important for local government officials to recognise the risks.
A spokesperson said the NZSIS had made significant efforts to raise awareness of foreign interference across a variety of sectors, including with local government.
Hampton warned about requests to visit New Zealand from overseas delegations as part of Sister City arrangements and said councils should weigh up whether it was in their city's interests to host the visitors.
"And you can say 'No'. You can ask 'What actually are you wanting to come for'. And importantly you should ask what's actually the benefit for you."
He also warned about accepting gifts from Sister Cities, including paid-for visits to their country, and gifts such as USB sticks which could carry spyware.
Hampton also said councillors should be careful about what information they shared with Sister Cities, and using devices overseas that could link back to council including mobile phones.
During his time as head of the Government Communications Security Bureau (GCSB), Hampton said there were multiple cases of councils that had been compromised.
"Unfortunately they were compromised by countries who they had Sister City relationships with."
Hamilton councillor Ewan Wilson, who has just returned from a partially self-funded trip to Sister Cities Chengdu and Saitama, said the council was currently reviewing its relationships and a working group considered a report on the issue on Friday.
Wilson said his view was that relationships with Chengdu, Wuxi and Saitama were valuable, in particular the links with Chengdu were "paying huge dividends" for Hamilton.
"We've had 15 of our Hamilton students fly to Chengdu, have their airfares, accommodation covered so they could participate in a choir event."
The choir assistants and chaperoning parents fundraised up to $30,000 to accompany their children.
"We've had an invite just recently to send two Hamilton-based marathon runners. Their airfares and accommodation are paid for by the city of Chengdu."
He said when comparing what Hamilton invested in the relationship to what Chengdu, in the Sichuan province, paid it was "highly productive" and benefited the broader community.
The Sister City relationship was formalised in 2015 and there was also a joint degree collaboration between Wintec and Chengdu University.
Wilson, who was also the council's Economic Development Committee chairperson, said a delegation of 16 from Saitama would visit Hamilton later this month.
The group is self-funding travel and would meet with mayor Paula Southgate, tour the Hamilton Gardens where Saitama had contributed to the Japanese Garden of Contemplation, and visit Maersk at the Ruakura Superhub inland port.
Wilson said the group would be discussing commercial opportunities.
"There's no doubt in my mind there's a real value there."
Another delegation from Wuxi was also due to visit soon at their own expense.
He said in contrast, it was hard to identify any meaningful economic or cultural exchange happening in the relationship with Sacremento.
But Wilson said it was hard to grow relationships with only $5000 budgeted for all Sister Cities over the next year.
"(Sister Cities) have evolved over decades. They produce both economic and cultural exchanges and you have to think very carefully about walking away."
When asked about security, Wilson said that was not new and before he went to Chengdu and Saitama he worked with council IT and did not take his laptop.