4. Hon DAVID CUNLIFFE (Labour—New Lynn) Link to this
to the Minister of Finance
Does he stand by all his recent statements on foreign direct investment?
Hon BILL ENGLISH (Minister of Finance) Link to this
Yes. New Zealand’s economy needs a certain level of foreign investment in order to grow. The figures currently are that New Zealanders are foreign investors to the extent of $55 billion in other countries, and other countries have investments of around $65 billion in New Zealand.
Hon David Cunliffe Link to this
Who was correct about the current review of the overseas investment regime: this Minister, who wanted to make the sale of farmland easier, or John Key, who said the review was to stop the sell-off of large tracts of land to foreign buyers?
Both of those representations are incorrect. We made it clear from the start of the overseas investment review that we wanted to facilitate the flow of investment into New Zealand at the same time as protecting those things that are important to New Zealanders. That has not changed.
Aaron GilmoreWhat has been achieved by the first stage of the Government’s review of the Overseas Investment Act?
The Government is focused on administrative and regulatory changes in order to reduce the time and the cost of getting decisions because that is in the interests of both New Zealand asset owners and investors who are looking for certainty. I am pleased to say that those changes have simplified the process and played a role in reducing the average application time from 63 days in August 2009 to just 38 days over the last 10 months. We need to keep in mind that we have to strike the right balance between access to overseas investment, which is critical to the creation of jobs and the payment of wages in New Zealand, and making sure we protect those things that New Zealanders value about our country and our landscape.
Hon David Cunliffe Link to this
When he said: “We don’t want to get overly concerned about it”—the sale of farmland—“if it’s just another cycle.”, did he mean he had no objection to “New Zealanders becoming tenants in their own country.”?
No, I meant what I said. The fact is that New Zealand has always had an inflow of overseas investment into land in New Zealand, and it continued in the 9 years under the previous Labour Government. I was making the observation that sometimes we get a wave of overseas investment. People realise they cannot make money out of farming in New Zealand, and if they do not live it and love it, they end up selling and going away.
Hon David Cunliffe Link to this
When making decisions about overseas investment rules, which does he consider more important: official advice from Treasury, polling data from Crosby/Textor, or public statements by John Key?
What is most important is the common sense of a pragmatic and moderate National Government that has had pretty good support from the public to tidy up this economy, get their incomes up, provide them with secure jobs, and protect those aspects of New Zealand that they hold dear.
Hon David Cunliffe Link to this
Does he share the Prime Minister’s lack of concern over the sale of individual farms; if so, can he explain the difference between an overseas investor buying 16 Crafar farms in one transaction and buying the farms in 16 different transactions?