6. TE URUROA FLAVELL (Māori Party—Waiariki) Link to this
to the Minister of Finance
Does he still believe that following the Government’s review of the foreign investment rules that “New Zealanders are able to feel that those things that they think are important about New Zealand are … protected”; and what influence did the outcomes of that review have on the Overseas Investment Office’s decision to grant consent for Carter Holt Harvey to sell more than 17,000 hectares of central North Island forestry blocks to a company with ownership spread between 10 countries including the United States, Saudi Arabia, Denmark, and Liechtenstein?
Hon BILL ENGLISH (Minister of Finance) Link to this
Yes, I do stand by the comment, but I can confirm for the member that the changes the Government made in the overseas investment rules to implement the Government’s approach, as outlined in my comment, had no bearing on that particular case, and that is because the application for consent was received on 3 December 2010, and the new regulations came into force after 13 January 2011. So the application he refers to was approved under overseas investment rules put in place a few years ago by the previous Labour Government and Winston Peters.
Te Ururoa Flavell Link to this
What advice was received from central North Island iwi about the decision to sell off 18 North Island forestry blocks to a US-led applicant group?
The Government would not have sought advice from anyone in particular. Once an application is lodged the Overseas Investment Office deals with it consistent with the Overseas Investment Act and it makes a recommendation to the Minister. It is not a consultative process.
Hon David ParkerHow many proposed sales of New Zealand rural land to foreign owners have been declined pursuant to the changes that he made to the overseas investment rules, which he said just then came in on 13 January 2011, noting that the likes of the Crafar farms were declined under pre-existing rules?
I am not aware of any applications that have reached the point where a decision is required under the new rules, but it is simply a matter of time before they are. My understanding is that overseas investors are taking note of the Government’s concerns about undue aggregation, and also a positive direction for them to have a New Zealand content to their proposals, which would make it easier to get approval.
Te Ururoa Flavell Link to this
What checks and balances are in place with American-style corporate investment applications to ensure that commercial exchange to a foreign owner does not erode our own local institutional, intellectual, social, and physical capital?
Those constraints are laid out in the Overseas Investment Act 2005, which was passed by the previous Government and Winston Peters. Since then the Government has made a couple of extra changes to the regulations that create higher hurdles in respect of rural land. Of course, the terms of that legislation are always open for debate, but we believe they strike about the right balance between protecting things that are valuable to New Zealanders and at the same time allowing the kind of overseas investment that helps to create new jobs and higher incomes in New Zealand.