Relevant offers
Industries
The OECD ranks New Zealand as among the most restrictive foreign investment regimes in the developed world - which dispels the popular view we are easy pickings for investors, says think-tank the New Zealand Initiative.
An NZI report analyses the Organisation for Economic Development's Foreign Direct Investment regulatory restrictiveness index published in April. This shows New Zealand has the sixth most restrictive foreign investment regime of 55 developed economies.
NZI research fellow Luke Malpass said the view that New Zealand was really open for anyone to come and invest was not true.
The index measures statutory restrictions on a country's FDI, including screening and prior approvals, key personnel and equity and operational restrictions. Most of New Zealand's negative rating comes from its screening of investment applications, he said.
"New Zealand relies more than any other OECD country on ministries and ministers second-guessing investment intentions and possible outcomes on the most contrived criteria."
Of the 55 countries measured, 35 didn't have screening restrictions.
Malpass said though New Zealand's foreign investment regime restricted investment only in "sensitive land", this category is absurdly broad. It includes any rural land of more than 5 hectares and anything larger than 0.4ha near inland water.
New Zealand also had the most restrictive regime on the index in manufacturing, which badly needed capital, Malpass said.
The merged entity of two think-tanks - the New Zealand Business Roundtable and the New Zealand Institute - the NZI argues for abolishing the screening rules altogether, as recommended by the OECD and supported by Treasury.
A spokesman for Finance Minister Bill English said the Government was aware of criticism the foreign investment regime was too restrictive, yet others criticised it as too liberal. The Government had no plans for change.
New Zealand Council of Trade Unions policy director Bill Rosenberg said other than land and fishing quotas, most investment in New Zealand was "virtually uncontrolled".
- © Fairfax NZ News
Sponsored links
Winebox connection to SFO boss
Zespri had invoice warning years ago
Manslaughter charge for quad bike tour owner
Kiwi and conman in takeover mystery
Oram: The best and worst of times
Investment syndicate eyes small business
Credit firms under fire over charges
Who owns your social media connections?
Bowling into the male grooming business
Is Meridian too big to swallow?
Rebuild targets a 'complete failure'
House sales failures prompt warning
Sir Graham Henry cautioned over ref comments
Kidnap horror: Dragged behind a car like dummy
'Woolwich Killer' held three years ago
Warriors bounce back with win over Knights
A whale of a time for cruise passengers
Magic keep season alive with overtime win
UFC Kiwis bloodied and disappointed
Polynesian men a global sports commodity
Aussie PM demands live odds ban
More AFL racism caught on camera
Polanski: No to equality, yes to skimpy dresses
Keeper mauled by tiger 'broke rules'
Kidnap horror: Dragged behind a car like dummy
Girlfriend mourns after man dies in fire
Polanski: No to equality, yes to skimpy dresses
All I want for my birthday is Maui
Anti-terror soldier's throat slashed
Con artist failed to convince the Grim Reaper
New cancer blow for Angelina Jolie
The best Fresh Prince reunion ever
