Scoop Audio: English on Foreign Investment

• Scoop Audio:

Foreign investors will need to convince the Government that their purchases are in New Zealand’s economic interests, Finance Minister Bill English said Monday.

The Government announced changes to the Overseas Investment Act which would allow ministers to consider whether sensitive land purchases would safeguard or promote the country’s economic interests.

The changes would also allow ministers to consider whether the investment provided opportunities for local oversight or involvement.

English said the changes were prompted by large aggregated land sales in the dairy sector and the prospect of vertical integration.

But New Zealand depended on foreign investment and the Government did not want to damage its reputation with investors, he added.

The changes meant “walking a tightrope”.

“It’s important that we welcome beneficial foreign investment and recognise the positive contribution it makes to New Zealand through increased jobs, capital and access to export markets.”

“At the same time, the Government recognises there are genuine concerns about aspects of certain types of overseas investment.”

The new considerations would achieve an appropriate balance, he said.

The changes to the Act take effect from 01 December.

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