Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Collapse in business investor numbers

3 October 2005

Collapse in business investor numbers confirms fears

Business NZ's predication that the Government's changes to the Investor Category immigration rules would drive investors away has been confirmed in figures released by the Department of Labour.

Business NZ had warned that doubling the amount of investment required and forcing the money to be invested with the Government would slash the number of potential investors.

"When we made our concerns known in June, New Zealand was attracting around thirty business investor migrants a month. Since the changes came into force in July, New Zealand has accepted only two," said Chief Executive Phil O'Reilly.

"The sad fact is that the business investor category is attracting such little interest it is virtually meaningless and is contributing nothing to infrastructure. What makes this worse is that official papers reveal the Government was predicting 200-400 migrants a year to use the business investor category. As we warned, the changes have deterred investors to such a degree that these expectations will not even come close to being met," Mr O'Reilly said.

"Official papers obtained by Business NZ under the Official Information Act also reveal a high level of opposition to the changes from officials. Several agencies recognised the implication of the changes and attempted to change the policy," said Mr O'Reilly.

The Treasury had strong reservations about requiring business investors to invest solely with the Government. They warned Ministers that "forcing migrants to place their funds in a government option does not give them an opportunity to leverage off their personal business attributes and make their own investment decisions for their capital, which seems counterintuitive to making business attributes a requirement of the system."

Several agencies were worried about the funds being used for infrastructure. The Ministry of Social Development "expressed concern at the rationale for directing migrant funds to infrastructure" while Treasury concluded that the proposed scheme "may not necessarily be the best source of funding."

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news