12. Dr RUSSEL NORMAN (Co-Leader—Green) Link to this
to the Minister of Finance
Have any members of the technical reference group been involved in cases involving foreign takeovers of New Zealand dairy companies while assisting in the review of the overseas investment regulatory regime; if so, what are the names of the relevant law firm and lawyer?
Hon BILL ENGLISH (Minister of Finance) Link to this
No members of the technical reference group have been involved in takeovers of dairy companies. One company in the dairy industry did seek to raise capital from the New Zealand public, which required Overseas Investment Office approval, and it involved a member of the technical reference group. That company was Synlait, and the decision sheet is available on the Overseas Investment Office’s website. Synlait ultimately decided not to proceed with raising capital from the New Zealand public.
Does he have any concern that a lawyer such as Andrew Monteith, in the case that the Minister referred to, who is advising the Government on rewriting the Overseas Investment Act, has also been involved in assisting overseas firms in raising money in order to buy up New Zealand’s dairy assets?
No, I have no concerns at all. When the Government gets expert advice, it tends to go to the people who do the transactions; otherwise they do not know what they are talking about. In this case, I have personally met with those lawyers and have had a discussion about how we can get Overseas Investment Office decisions made more quickly and at a lower cost. They have given some useful suggestions and some suggestions that would not be acceptable to the Government.
Hon David ParkerIs the Minister aware that the free-trade agreement with China does not stop the New Zealand Government from declining applications to buy New Zealand farmland under the overseas investment rules?
When he spoke with the technical advisory group lawyers from Chapman Tripp, Russell McVeigh, Simpson Grierson, Bell Gully, and Minter Ellison Rudd Watts on 18 February this year, did he express any concerns about large foreign firms being able to buy up huge swaths of the New Zealand primary production sector; if not, why not?
We had a discussion about how the Overseas Investment Act works, the technicality of the processes, and how those processes could be improved for the benefit of both New Zealand vendors and overseas investors. It is up to the Government to decide whether to take that advice. The fact is that under the Overseas Investment Act hundreds of millions of dollars of overseas investment have come into New Zealand—in fact, it is billions of dollars. Because New Zealanders do not save enough themselves, we are more reliant than many countries on overseas investment in order to provide jobs and incomes for New Zealand families.
How are any conflicts of interest being managed, given that the legal firms that the technical advisory group lawyers work for—Chapman Tripp, Russell McVeigh, Simpson Grierson, Bell Gully, and Minter Ellison Rudd Watts—have been involved in over 70 cases involving the Overseas Investment Office since they were appointed?
There is no conflict of interest involved, despite the member’s attempts to portray discussions with experts in the field as a conspiracy. When the Government wants to obtain expert advice on the provision of health services, it talks to the people who provide the health services. If it wants to obtain expert advice on the provision of education, it talks to people in education. When we want to obtain expert advice on the law, we talk to people who know something about the law.
I seek leave to table two documents. The first is a statement made by Minter Ellison Rudd Watts on the appointment of Andrew Monteith to the review group.
Mr SPEAKERThe second document is the decision summary in the case of Synlait and various unknown overseas persons seeking approval from the Overseas Investment Office.