27 September 2010 Media Statement

‘Flexibility’ means doing nothing to stop land sales

Labour Overseas Investment spokesperson David Parker says the Government’s review of overseas investment is not even a half-hearted effort to protect New Zealand against increasing foreign ownership of land.

“Foreigners with access to cheaper capital find the prospect of tax-free capital gains from buying New Zealand land attractive,” David Parker said. “But there is no benefit to New Zealand in that. Labour’s position on this will be much clearer and stronger. This review makes it even more apparent that Labour is the only party that can be trusted to keep New Zealand in Kiwi hands.

“National has polled itself to a standstill on this issue, and has ended up caught in no-man’s land,” David Parker said.

“The Government started by saying the review would liberalise the overseas investment in New Zealand land. Finance Minister Bill English said the strategic asset test was nonsense, too confusing and difficult. The Government wanted to make the rules simpler and more attractive.

“Instead, the Government has kept the strategic asset test, and rather than making the rules simpler it has added new rules of its own, an ‘economic interests factor’ and a ‘mitigating factor’,” David Parker said.

“Bill English says the review will allow greater ministerial flexibility, but flexibility gives no certainty that New Zealand interests will come first.

“Prime Minister John Key has said he is worried about land sales, but there is nothing in this review that suggests the Government is committed to turning down further land purchases,” David Parker said.

“Are they going to do it? A review that promotes flexibility gives no reassurance that National believes, as Labour certainly believes, in keeping New Zealand farmland in Kiwi hands so we can own our own future.

“Flexibility in this case is another word for doing nothing,” David Parker said.

“The results of National’s own polling have clearly come in --- they know it is unpopular to sell more land, but they also promised to make the law more liberal.

“So they’re introducing the notion of flexibility in the hope Kiwis will be duped into believing they are doing something.

“The government should be explicit about whether they intend to turn down applications by overseas interests to buy New Zealand farmland. So far it is just talk, and inconsistent talk at that”

ENDS

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