Stuart Nash: Former Labour Cabinet Minister on golden visas taking off

There's no downside to New Zealand's latest 'golden visa' scheme, according to a former Labour Cabinet Minister. 

The Government's confirmed almost 200 applications have been received from overseas investors since settings loosened in April. 

Former Minister Stuart Nash, who launched golden visas in 2022, told Ryan Bridge it's not just about the financial investment. 

He says it's about the networks, connections, competencies, capabilities, and experience these people will bring to Aotearoa and the companies they're investing in. 

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Episode Transcript

Speaker 1 (00:00):
So the Golden visas have gone gangbusters. Apparently, nearly two
hundred applications from foreign investors have been received since the
scheme was launched in April, so it's only been three months.
One hundred of those have been approved. In principle, seven
applications have already invested. Applicants rather invested their money and
been granted visas. Stuart Nash, by the way, by comparison,
there was only just over one hundred and two and
a half years to this category. Stuart Nash, former Labor

(00:22):
Cabinet minister who launched the Golden Visas back in twenty
twenty two, is with us this morning. Stuart, Good morning,
Good morning, Ron. How are you Yeah, good, thank you.
So does this mean that the sort of kick up
the JACKXI, the loosening of the rules is worked.

Speaker 2 (00:38):
It seems to have worked, But it's also you know,
all the geopolitical uncertainly that's going on in the world
at the moment. I mean, you've just talked to your
guy about Iran and the US. We've got a lot
of lot going on in American domestic politics. Obviously, we've
got the British Prime Minister talk about putting his forces on,
you know, a sort of a higher alert. You've got

(00:58):
the South China Sea, obviously, you've got the tinder which
is the Middle East. So you know, we're a bit
of an oasis at the bottom of the world at
the moment.

Speaker 1 (01:04):
And this is potentially an eight hundred and forty five
million dollars of new investment for US if they all convert.
Do we know what the conversion rate normally is for
visas like this.

Speaker 2 (01:14):
Yeah, it's very high. Keeping in mind these people have
to pay quite a lot of money to get the
visa in the first place. They've gone through quite a
rigorous process because the one thing that we wanted to
ensure was that everyone coming to New Zealand had integrity.
And by that I mean you've got to prove that
the money you've got has been gained by the legitimate means.
You've got to do a health test, you got to
do a police test. So it's quite a rigorous process
to actually put the visa in. So the conversion rate

(01:36):
is very high. For once you apply to the visas
being submitted and then approval, what.

Speaker 1 (01:42):
Do they do when they get here.

Speaker 2 (01:45):
Well, they've got six months to invest their money and
keeping in mind a lot of these well over fifty
percent of coming from the United States. So you're allowed
to put your money in a managed fund to start with,
or you can put your money directed into equities or bonds,
or into directed into a company if you're really what.
So there are two classes of people, really Ryan and
there were those who were seeking permanent residency who don't
necessarily want to immigrate here, and then there were those

(02:07):
who want to immigate here. Two different pathways. So you know,
if you're part of the growth category, you only have
to spend three which over three years. But what we
tend to find is that once you've invested your five
million or you're three million in US and you come
over here, after a while, you you fall in love
with the place and you tend to immigrate or spend
more time here than the minimum.

Speaker 1 (02:29):
This is a net positive for New Zealand. I mean,
we're getting a lot of text saying and why do
we need these rich Americans coming here who are escaping
Trump and using US as some kind of bunker. I mean,
the benefits to us far out weigh the costs of
having right.

Speaker 2 (02:45):
I don't see any downside to this now, we're not
getting people coming here like Peter Tail. Remember that very
wealthy American who came over here, bought a property, was
given citizenship up to about eleven days. This is not
that skin. These are people who required to invest five
million kiwi or three million US and the growth fund

(03:05):
or ten million kiwi or six million US and the
balance fund. They're contributing in a way that adds value
that now it's not just about the money. Also, for me,
fifty percent of it is about the connections, the networks
they experience, the competencies, the capabilities these men and women bring,
and keeping in mind if they're actively investing, by and large,

(03:26):
a lot of them take a very active interest in
the companies they're investing in, so this is there is
no downside. Also, keep in mind that they're not competing
with Kiwis for fate houses. We're talking about the very
wealthy here. They're not you know that they're buying down
in Queenstown or up north or on the northern slopes
of Humbe if they decide to immigrate here. So that
for me, there is absolutely no downside. And keeping in

(03:48):
mind capital has always been mobile. These people are looking
for a home for themselves. In the past, most of
them have sort tax havens. At the moment, a lot
of them are seeking safe havements, which is what news.
But like I said, they're investing a lot of money here.
They've been part of our community, part of our economy,
and there's a it's just fantastic, man. I think there's

(04:09):
no downside.

Speaker 1 (04:09):
Stuart, appreciate your time this morning. Stuart Nash, former Labor
Cabinet Minister. For more from Early Edition with Ryan Bridge,
Listen live to News Talks at b from five am weekdays,
or follow the podcast on iHeartRadio.