Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Verboten! Kiwi hostility to foreign investment

Media Release — NEW REPORT

Verboten! Kiwi hostility to foreign investment


New Zealand operates one of the most restrictive foreign investment regimes in the developed world, missing out on much needed investment, says a new Research Note from The New Zealand Initiative.

In Verboten! Kiwi hostility to foreign investment, Luke Malpass and Dr Bryce Wilkinson analyse the latest data from the OECD, finding that despite popular myth, New Zealand actually operates the 6th most restrictive regime of the 55 developed economies measured by the OECD. But it is the sector by sector breakdown that is most worrying.

“New Zealand has the most restrictive regime of all 55 OECD measured countries in manufacturing,” says Mr Malpass.

New Zealand has become comparatively restrictive over the past two decades.

Of the four criteria considered by the OECD, almost all of New Zealand’s restrictiveness is in the ‘screening and prior approval category.’ This is entirely due to the Overseas Investment Act 2005.

“Bluntly put, New Zealand relies more than any other OECD country on ministries and ministers second guessing investment intentions and possible outcomes, and on the most contrived criteria. A full 35 out of the 55 measured countries had similar no restrictions at all,” says Malpass.

The Overseas investment Act was meant to retain a liberal foreign investment regime but instead states that ‘it is a privilege for overseas persons to own or control sensitive New Zealand assets.’ It introduced a ‘sensitive land’ category of any land over 5 hectares or 0.4 hectares near water.

“The definition of sensitive land is absurdly broad,” says Malpass. “Many bars and hotels on the Wellington or Auckland Waterfronts are ‘sensitive land’; any manufacturing operation with a reasonably sized site or attached freehold land is ‘sensitive land.’”

Commenting on the research findings, Dr Oliver Hartwich, executive director of The New Zealand Initiative, says:

“All New Zealanders bear the cost of high barriers to foreign investment. They raise the cost of capital for all firms and all householders borrowing on mortgages. They reduce New Zealand’s economic growth potential. We need an FDI regime that follows international best practice, even if it means scrapping most of the Overseas Investment Act.”

The report is available here: http://www.nzinitiative.org.nz/fdirestrictiveness.html

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Budget 2022


At base, the political biffo back and forth on the merits of Budget 2022 comes down to only one thing. Who is the better manager of the economy and better steward of social wellbeing – National or Labour? In its own quiet way, the Treasury has buried a fascinating answer to the “who’s best at running an economy during a crisis?” question, at page 57 of the Fiscal Strategy section...
More>>



 
 

Government: Helps Supermarket Shoppers Get A Fair Deal
Urgent Budget night legislation to stop major supermarkets blocking competitors from accessing land for new stores has been introduced today, Minister of Commerce and Consumer Affairs Dr David Clark said... More>>


Budget 2022: A Secure Future In Difficult Times
Budget 2022 will help build a high wage, low emissions economy that provides greater economic security, while providing support to households affected by cost of living pressures... More>>

ALSO:

Budget: Climate Investments Provide Path To Economic Security
The Government is investing in New Zealand’s economic security by ensuring climate change funding moves away from short-term piecemeal responses and towards smart, long-term investment... More>>

ALSO:



National: Jacqui Dean To Retire From Parliament In 2023

Waitaki MP Jacqui Dean has announced that she will not be seeking re-election at the 2023 election. “I have advised the President and Leader of the National Party that I have decided not to put my name forward... More>>

Classification Office: Following Decision To Ban Manifesto The Buffalo Mass Shooting Livestream Is Now Banned
The livestream video of yesterday’s mass shooting in the United States has now been banned, Acting Chief Censor Rupert Ablett-Hampson announced this morning. The decision follows on from his decision yesterday to call in and ban the ‘manifesto... More>>

Borders: New Zealand Poised To Welcome International Students Back
New Zealand is fully reopening to international students and the Government is committed to help reinvigorate and strengthen the sector, Education Minister Chris Hipkins said today... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels