Policy Area: Foreign Investment

Statement of General Direction:

While recognising the need foroverseas capital and the need to maintain investor confidence and without eroding any existing ownership rights the Coalition agrees that as a statement of general principle it is desirable that the control and ownership of important New Zealand assets and resources be held by New Zealanders.

Key Initiatives of Policy:

Sale of Farm Land
Reduce foreshores requiring approval from 0.4 hectares to 0.2 hectar es.

Strengthen "national interest" by:

Amending Overseas Investment Act s14 (2)(a) to read
"Whether the overseas investment as a primary consideration will or is likely to result in substantial and identifiable benefits to New Zealand and...".

Require an individual purchaser to hold and continue to hold permanent residence status; or the purchase, by an individual or otherwise, will make a material contribution to the local or New Zealand economy.

Require evidence either that the property has been offered on the open market or that the proposed sale has been publicly notified and offers invited but no satisfactory offer has been received.

Greatermonitoring of compliance of conditions imposed by requiring the purchaser to file a declaration after two years or end of project that all conditions have been complied with.

Strategic Assets

Presently owned by Government
ECNZ
Contact Energy
Trans Power
New Zealand Post
TV1
Radio New Zealand - National Programme - Concert FM

The above assets will not be sold.

Presently owned by local bodies or consumer trusts
Power and gas utilities
Airports
Ports
Any sale of over 24.9% would require prior approval of ratepayers or consumers.

Fiscal Implications of this Policy Agreement:

Nil

(All funding proposals subject to being considered within the agreed spending policy parameters.)

Legislative Implications of this Policy Agreement:

Amendments to the Overseas Investment Act.