Toby Williams: Federated Farmers spokesperson says rules are needed around levels of investment in Overseas Investment Act reforms

The gates are opening for foreign investors looking at New Zealand companies and property.

The Government's reforming the Overseas Investment Act - allowing any investment that doesn't threaten our interests.

Federated Farmers Meat and Wool Chair Toby Williams says he supports the change.

He told Ryan Bridge overseas buyers are interested in large farms - that Kiwi farmers can't afford to begin with.

Williams says foreign owners wouldn't be interested in those that first farm buyers would be after  - so he wants to see some rules around the levels of investment.

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Episode Transcript

Speaker 1 (00:00):
Overseas investment rules are set to be loosened, with the
Associate Financements to David Seymour calling our current rules quote
the worst in the developed world and if you look
at the score, it's hard not to argue with. We
rank thirty eighth out of thirty eight countries in the
OECD for openness to investment. So once these rules are changed,
and it's going to go before Cabinet, they've agreed principles already,

(00:21):
it'll be done by the end of next year. Will
we see a whole bunch of Kiwi farmland being sold off?
I'm joined by Toby Williams, Fed Farmers Meet and wheelchair Toby.
Welcome to the show. Good to have you on. What
do you expect to see from this?

Speaker 2 (00:36):
We actually make supportive of these rule changes. What we
had in the previous government. We actually had the special
Forestry tests which took a balance away from between farming
and the forestry, so it was only six weeks compared
to two years to be able to buy a farm
keeper farming in six weeks of forestry, so shortening this
up as great down till probably about one year for either,

(00:57):
but also having the balance between them so if you're
going to buy farmlan for forestry or farmland to keep
farming is going to be the same test. And we're
really supportive of Do.

Speaker 1 (01:06):
You think there's a lot of farmers wanting to sell
to overseas buyers?

Speaker 2 (01:11):
Well, no, I don't think there's a lot of farms
wanted to sell to overseas buyers. But you know, we're
looking at a certain class of farm that overseas buyers
is going to be interested in, and those are the
bigger fans that really keevy farmers can't afford to buy. Anyway,
we wouldn't expect foreign owners to be coming in buying
up farms that first farm owners should be able to buy.
So we expect see some rules in around there about
the levels of investment that are going to be But

(01:32):
what we've seen on thes Coast is basically foreign investment
in the family and which stayed farming. Is there a
massive boost for the regional economy and it's for the
environment for the farm itself.

Speaker 1 (01:41):
Is there in terms of overall foreign ownership? Is there
something that fed? Is there a number of FED farmers
wouldn't be happy with I understand at the moment it's
about ten percent of agricultural land in Australia's foreign ron.
Ten percent of productive land here is owned by foreigners.

Speaker 2 (01:55):
Yeah, we haven't looked at that, if we're honest, and
it's one of those things we have to look at
the deeper to the rules to make sure that young
farmers that still have the excess to be able to
buy their farms. So we need to looking at levels.
And if I use my own fan for example, you
notice I'm very fortunate where I own, and the value
of it means it's unlikely that a first fund buy
if I was ever to sell it was be able

(02:16):
to do it, or you know, a lot of key,
we probably wouldn't be able to afford it either. So
if we ever wanted to sell, you need to have
that option to be able to realize the true value
of it. I paid the value of the rates on
those and everything that goes along with it. So if
we're looking at the true value of the properties, need
to make sure that the people are available to be
able to do that.

Speaker 1 (02:33):
Yeah, and I suppose handing it on to the kids
not always what it once was. The interest.

Speaker 2 (02:38):
No it's not, No, it's not. But we've just done
now a number of years ago. So I've been very
fortunate that Mum and Dad piger values in twenty seventeen
and that meant that we'll actually be able to afford
We missed that forestry rush, you know, the sugar rush
of the cabin. Yeah, so much ink. So I'm very fortunate. However,
we've got to hangover effect of it and dairy land surprise,

(03:00):
and we haven't mixed you gone up very much in
terms of value. Sheeven bee farms over the last twelve
or sixty years have probably gone off about fifty percent
in value what our profitabilities for them. So there's a
real disparate balance for you.

Speaker 1 (03:11):
Toby, thanks for your time. Look forward to seeing the
legislation when it's actually drafted. That's Toby Williams Fed Farmers
Meet and Wheelchair that the legislation will go out and
be done back through Parliament by the end of twenty
twenty five, according to David Seymour. For more from Early
Edition with Ryan Bridge, listen live to News Talks it'd

(03:31):
be from five am weekdays, or follow the podcast on iHeartRadio.