12. RAHUI KATENE (Māori Party—Te Tai Tonga) Link to this
to the Minister of Finance
Does he stand by his responses to Oral Question No 6 on Overseas Investment Rules Review on 6 April 2011; if so, what regulations are in place to prevent sensitive forestry land from being sold on the open market into foreign ownership?
Hon BILL ENGLISH (Minister of Finance) Link to this
Yes, I do stand by my response. In terms of regulations for investment in forestry land, investors must obtain consent to invest in any forestry block greater than 5 hectares, as it qualifies as sensitive land under the Overseas Investment Act. Part of that test is that investors must show they are of good character and their investment must be likely to benefit New Zealand. Over the years foreign investment has played a significant role in New Zealand’s economic development, but recently the Government has introduced some extra tests into the regulations to ensure that such investments do benefit New Zealand.
What consultation was undertaken with mana whenua before approving the sale of forestry blocks in the Waiau, West Ho, Moonlight, Tolaga, and Merriwa forests for $95 million to the Tiong family of Malaysia?
My understanding is that at least some of those transactions occurred as private transactions between an existing foreign owner and a new foreign owner, and they followed all the process. By and large, the assumption the system runs on is that if, for instance, mana whenua have an interest in particular assets, then they should approach the owners as the best way of understanding where opportunities might arise for them to purchase those assets. The Government introduced regulations last year that mean that those sales have to go through further tests to ensure their benefit to New Zealand.
Is he aware of concerns expressed by Te Rūnanga o Ngāti Porou chairman Api Mahuika that prior consultation was not undertaken with iwi about the sale of the five forestry sites in their rohe, and what process will he instigate to address the concerns and establish consultation with iwi as a matter of course?
I am familiar with the concerns. The Crown has done business with Ngāti Porou and also any number of other iwi on the issues between the iwi and the Crown. It is not really the Crown’s role to protect or enhance the iwi’s commercial interests over and above the way it would protect the commercial interests of anyone else in New Zealand. Once iwi have their own assets and they have their own governance and commercial processes, then fundamentally it is up to them to advance those interests. The Crown does not have a particular obligation, at least in our preliminary thinking, to protect those ongoing commercial interests.
Stuart NashIf the Minister is genuinely concerned about New Zealanders becoming tenants in our own country, why is he determined to sell shares in our publicly owned energy companies, a significant proportion of which Treasury says will be bought by foreigners?
One reason is this: while Mr Nash might be happy to have New Zealand indebted up to its neck paying interest to foreigners, we would rather pay dividends to New Zealanders who own those companies if we get the opportunity to do so. That is the choice. I cannot understand why Labour is so worried about foreign ownership of assets and so reckless about foreign ownership of debt.