Nz opens foreign investment door

In a bid to show foreigners that ‘New Zealand is open for business,' and encourage greater international investment, the NZ Government has relaxed its rules relating to overseas buyers purchasing assets in the country - a move which could potentially see Auckland airport put back on the market...

New Zealand Finance Minister Bill English (what an appropriate name for this foreign story!) has announced that the NZ Government will soon drop criteria preventing the sale of ‘strategically important assets' to overseas buyers.

The relaxation of these rules will allow for far greater foreign investment into the country, which can only be a good thing as New Zealand struggles in the light of the credit crunch. Attracting overseas investment has become far more urgent as unemployment levels in the country grow.

New Zealanders who are concerned that a host of foreigners could come in and snap up valuable assets can rest assured that the Government would continue to protect things that residents had legitimate concerns about, such as land and large businesses.

Overseas investors would be subject to higher conditions, especially around stewardship and public access rights.

One of the country's main assets is Auckland international airport, and Mr English has suggested that the new rules could lead to the airport being put up for sale once more, although ‘any bid would be subject to the same screening process as for any other major foreign investment.'

But Labour Associate Finance Spokesman David Parker said the weakening of protection against the sale of strategic infrastructure assets risked losing a valuable asset for New Zealand.

The Government also intended to simplify the process of investing in sensitive land and will raise the £40 million threshold above which foreign investments require approval.

Picture of the Auckland skyline by Chris Gin