Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Current account deficit rubberstamped

Overseas investment office rubberstamps current account deficit

The approval by the Overseas Investment Office of another $16 billion in overseas purchases of New Zealand assets only adds to pressure on the current account deficit, house prices, and farming practices says the Green Party.

"The current account deficit for the year ended June 2006 was $15.2 billion, which was $3.1 billion worse than a year before. Most of this increase was due to a $1.9 billion increase in the investment income deficit, due to incomes earned by foreigners on their New Zealand investments and interest payments on our foreign debt, says Russel Norman, Green Economics' Spokesperson.

"Yet the Overseas Investment Office has now approved another $16 billion worth of sales of New Zealand assets, which will add to this investment income deficit on both counts."

"The sale of additional profitable New Zealand companies to overseas owners results in more overseas repatriation of profits and dividends.

"The sale of additional New Zealand land and housing to foreign owners adds to the upward pressure on the housing and land market which in turn leads to rising levels of household indebtedness, debt which is ultimately sourced from overseas and interest payments which end up overseas.

"The free-for-all purchase of New Zealand productive and non-productive assets is adding to our current account deficit.

"Additionally, foreign investment is also putting pressure on the prices of productive rural land which in turn puts more pressure on farmers to get a return on their investment, pressure that can translate into poor environmental management practices as farmers cut corners to save costs.

"The 2005 Overseas Investment Act opened the door ever wider to the overseas ownership of New Zealand productive resources. It was based on the dogma that overseas investment in businesses is always good. But, with a structural current account deficit being driven by payments to overseas owners of assets and debt, maybe it's time to question that dogma."

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Scoop 3.0: How You Can Help Scoop’s Evolution

Entering into its third decade of operation, the Scoop news ecosystem is set to undergo another phase of transformation and evolution.

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

 
 

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>

ALSO:

Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>

ALSO:

Train Free Thursday: Workers Strike To Defend Terms Of Employment

"They signed up to these conditions a year ago when they got the contract for Wellington's rail services. Now they're trying to increase profits by squeezing frontline workers." More>>

ALSO:

Seclusion: Ombudsman Emphasises Importance Of Monitoring

Disability Rights Commissioner Paula Tesoriero says that while there have been changes to the Education (Update) Amendment Act 2017 to prohibit the use of seclusion, the report is an important reminder of the importance of regular monitoring of schools. More>>

ALSO:

United Future History: "All Good Things Must End"

'We’re extremely proud of what we’ve achieved over the past 15 years, working alongside the government of the day, both National and Labour.' Mr Light told members on Monday. More>>

Gordon Campbell: On The TPP Outcome, And The Hobbit Law

Somehow the Trans Pacific Partnership trade deal has come lurching back from the dead – and as predicted in this column last week, the member countries gathered in Vietnam have announced a deal in broad principle, shunted aside until a later date the stuff on which they don’t agree, and declared victory. More>>

Agreeing To Differ: Greens Maintain Opposition To TPPA
“The Green Party has long opposed the TPPA. The new proposed deal, which came out of the weekend’s talks, still contains key ISDS concessions to corporations that put our democracy at risk, so our position remains the same,” said Green Party trade spokesperson Golriz Ghahraman. More>>

ALSO:

Monitoring Report: A New Chapter For Children’s Rights In New Zealand?

The Children’s Commissioner is calling on the country to embrace children’s rights to ensure their overall well-being. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election