Rt Hon Winston Peters
New Zealand First Leader
8 DECEMBER 2014

Foreign Investors Rip the Welcome Mat From Kiwis

New Zealand cannot blame foreign residential investors for taking advantage of New Zealand’s lax investment rules, despite New Zealanders being either shunted out or finding it harder to buy property, says New Zealand First.

“If first home buyers want someone to blame then it’s naïve politicians who believe all foreign investment is wonderful,” says New Zealand First Leader Rt Hon Winston Peters.

“You cannot blame the Chinese or whoever for wanting to buy land in this country when we’ve put the welcome mat out along with flashing neon signs.

“The policy response to what is an Auckland issue is affecting Kiwis with multiple increases to interest rates and a doubling of loans-to-value ratios this year alone.

“Auckland ends up harming home buyers and exporters from Kaitaia to Invercargill, so it comes down to New Zealanders making it clear they’re no longer prepared to accept it.

“Even Bill English says they are paying Auckland interest rates in Invercargill.

“Only yesterday across the Tasman, the Herald Sun reported Melbourne’s median house value is up 14.7 per cent since December 2012, despite a wide-ranging capital gains tax and even stamp duty.

“The cause? People trading up and familiar sounding foreign dollars.

“The other parties may now cry crocodile tears but when New Zealand First argued for a register of foreign land and house ownership some of their members called New Zealand First xenophobic and racist. We ignored that and have long had a bill on the issue of foreign ownership in the parliamentary ballot. But then it’s true, imitation is the sincerest form of flattery.

“We are reaping the results of further lax immigration, which saw John Key agree to immigration from China on the basis of credit card status. That is, he doesn’t care where or how they get their money as long as they have a platinum credit card.

“Favourable tax treatment for foreign investment explains why we're now the fifth most preferred market for Chinese investors with $37 billion on the international residential market from China.”

“If New Zealand does not react this current overseas investment will become an offshore consumer flood,” says Mr Peters.

ENDS

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