Oliver Hartwich: NZ Initiative executive director on new law reforms to allow for overseas investment

An easier road for foreign investors looking at New Zealand's companies and property.

The Government's new law reforms will allow overseas investment to proceed - so long as it doesn't go against our interests.

Associate Finance Minister David Seymour says right now, we rank 38 out of 38 countries for openness to investment.

New Zealand Initiative Executive Director Oliver Hartwich told Mike Hosking New Zealand's always been one of the most difficult places for investment.

“That part of globalisation has always bypassed New Zealand. Actually, the share of FDI in our GDP is lower than it used to be 25 years ago.”

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Episode Transcript

Speaker 1 (00:00):
So foreign investment talk. Over the weekend Saturday, David Seymour
an act announced reform that will make it easier for
foreigners to buy local companies and properties than yesterday. New
Zealand first announced the Future Investment Fund idea that they
will take to the next election in twenty twenty six. Now,
the New Zealand Initiatives executive Director Oliver Hant, which with
us on all of this, oliber.

Speaker 2 (00:16):
Morning to you, Good morning, MIKEE.

Speaker 1 (00:19):
Seymour said over the weekend we're thirty eight out of
thirty eight with reputation. We sort of thumb our nose
to the world. Is he right?

Speaker 2 (00:26):
Oh, he's absolutely right. And we've known this for many years.
New Zealand has always been one of the hardest places
for international investors to come and invest, and we've been
ranked in these rankings really at the bottom really for decades,
and that's why that part of globalization has always bypassed
New Zealand. Actually, the share of FDI in our GDPs
law than it used to be twenty five years ago,

(00:48):
whereas most other countries have advanced. Or David Seymour's absolutely
spot on.

Speaker 1 (00:52):
What's our problem? Are we usenophobic?

Speaker 2 (00:55):
Not necessarily zonophobic, but we just don't like foreign capital.
We just make it very too hard for in capital
to come to New Zealand and be deployed here. We
check them, we put them through a massive bureaucratic process,
and you know what, New Zealand is a nice to
have for these international investors. They look at or bureaucracy
and say, actually, is it really worth playing in New
Zealand or should we just go somewhere else? And then

(01:15):
they typically look at that and invest elsewhere.

Speaker 1 (01:18):
Have we got two completely different things over the week
in one from Seymour, two from Peter's or are they
sorted the same thing?

Speaker 2 (01:25):
Well, they are related. I mean the significance about Peter's investment,
especially in the context of Seymour's, is that New Zealand
First for a long time was one of the road
blocks to reforms. They didn't want to reform the obse's investment.
That Seymour now says we have cabinet approval, that means
New Zealand First is in and then just top it
up when St. Peter's announced that actually they would like
to go at one step further and even have a

(01:46):
future fund based on international investment. So that's a very
clear signal that New Zealand First has changed their minds
and so that can only be good news.

Speaker 1 (01:54):
Can New Zealand First change their mind on that while
still blocking foreigners buying houses.

Speaker 2 (02:00):
Actually none of the investments are about houses. This is
really about business investment and both Winston Peters and David
Seymour have made it clear that they want to get
capital into the economy with the goal of making us
more productive. That's not about houses at the moment. It's
really about genuine business investment to lift our productivity here.

Speaker 1 (02:17):
Well, if you're an equity fund, sure and hundreds of
millions of dollars, I get that. But what if you're
in a business investment man who wants to bring in
thirty forty million dollars into the country, and you like
New Zealand, you thin actually it wouldn't mind buying a
house and you can't.

Speaker 2 (02:30):
That of course is an inconsistency, and actually we've said
that before the last selection when those plans were discussed.
I think actually we cannot do the two things together.
We should actually say we make it easy for you
to come and invest in a business. And by the
way of course, we also make it easy for you
to buy a house. I would even go a step further,
I would say, and then we make it easy for
you to get visa for your staff. And we actually
roll out the red carpet to make it all happen,

(02:52):
because it has to be a consistent package. If you
go to the most successful countries in the world when
it comes to foreign d liked investment, like Ireland, like Singapore,
that's exactly what they do with There are dedicated agencies
making it at easy as possible for these international investors
to come.

Speaker 1 (03:06):
Always enjoy your company, Oliver Appreciate Oliver heartwhich had a
New Zealand initiative.

Speaker 2 (03:10):
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