Reform of Overseas Investment Laws to Boost Economic Growth

The Overseas Investment Act 2005 will undergo significant reform, the government has announced. New Zealand is currently ranked the most restrictive country in the OECD for overseas investment. The reform intends to combat this position by increasing openness to foreign investment that should attract more international investors.

To achieve what the government believes will be a more dynamic and competitive economic environment, a suite of statutory changes have been proposed to reduce barriers to investment where such investment does not present any identified risk to New Zealand’s interests. Key proposed changes include:

•         Fast tracking approvals: simplifying the assessment process by establishing basic tests and assuming investment will be permitted unless risks are flagged

•         Targeted scrutiny: retaining flexibility to analyse investments on a case-by-case basis and impose conditions or block them if necessary, and

•         Retaining current scope: ensuring the government can continue to scrutinise sensitive investments, including farmland.

Legislation to implement these changes is expected to be introduced this year.

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