Overseas Investment Amendment Raises Questions

4 March 2008

Overseas Investment Amendment Raises Questions as to what are Strategic Assets

Urgent clarification is required as to what is meant by strategically important infrastructure and sensitive land according to the New Zealand Chambers of Commerce (Inc).

“The decision to amend the overseas investment regulation will further increase the uncertainty associated with our overseas investment regime,” said NZCCI Director, Michael Barnett.

“Without certainty as to which assets are strategic and what land is sensitive it is becoming increasingly difficult for businesses to know what assets can be sold to whom. Businesses need certainty more than anything else.

“It is also increasingly confusing for overseas entities who want to invest and do business in New Zealand.

“The decision has major implications for overseas perceptions of New Zealand’s openness to foreign investment. It sends a signal that the government is anti-foreign investment.

“It may now be harder to attract private sector partners for infrastructure projects,” Mr Barnett concluded.

ENDS

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