Overseas Investment Decisions Twice As Fast
Associate Minister of Finance David Seymour is encouraged to see overseas investment decisions being made twice as fast following his Ministerial directive letter (the letter) to Land Information New Zealand (LINZ).
'Last year I issued a Ministerial directive letter setting out my expectations for faster consent processing timeframes under the Overseas Investment Act (the Act),' Mr Seymour says.
'The letter set my expectation that LINZ, the regulator for the Act, will process 80 per cent of consent applications in half the statutory timeframes for decisions.
'The financial year beginning 1 July 2024 is on track to meet my expectations. So far, LINZ has been processing 88 per cent of consent applications in half the statutory timeframe.
'Since this financial year began, processing times have reduced by 39 per cent faster than the previous financial year. The average timeframe has reduced from 71 working days in the last financial year, to 28 working days this financial year.
'The improvements to processing times are largely owed to the new risk-based approach LINZ take to verifying information and streamlining consent processes. This recognises that the majority of consent applications are low-risk and should be processed more efficiently.
'1 July 2024 to 19 June 2025 saw 122 applications for overseas investment, decreasing from 146 in the financial year prior (both figures exclude 'only home to live in' applications). The decrease is explained by a significant drop in applications for residential land development due to poor property market conditions. I expect these numbers to bounce back with the rise of the property market.
'In order to have a strong growing economy New Zealand needs to be more welcoming to investment. Long waiting times for applications was creating uncertainty and impacting the attractiveness of investing in New Zealand. This affected New Zealand businesses that rely on overseas investment for capital or for liquidity.
'Since delegating most decision-making to LINZ and directing officials to focus on realising the benefits of overseas investment, there has been a significant improvement in processing times.
'Feedback from investors has been overwhelmingly positive, and they have welcomed the changes to make the application process more efficient, while still giving the right level of scrutiny to high-risk transactions.
'LINZ still has the full statutory timeframe to process 20 per cent of consent applications, which will allow them to manage complex and higher-risk applications.
'This week will see the first reading of thee Overseas Investment (National Interest Test and Other Matters) Amendment Bill as well.
'The Bill will consolidate and simplify the screening process for less sensitive assets, introducing a modified national interest test that will enable the regulator to triage low-risk transactions, replacing the existing benefit to New Zealand test and investor test. If a national interest risk is identified, the regulator and relevant Minister will have a range of tools to manage this, including through imposing conditions or blocking the transaction.
The current screening requirements will stay in place for investments in farmland and fishing quota.
'New Zealand has been turning away opportunities for growth for too long. Having one of the most restrictive overseas investment regimes in the OECD means we've paid the price in lost opportunities, lower productivity, and stagnant wages. This Bill is about reversing that.
'For all investments aside from residential land, farmland and fishing quota, decisions must be made in 15 days, unless the application could be contrary to New Zealand's national interest. In contrast, the current timeframe in the Regulations for the benefit test is 70 days, and the average time taken for decisions to be made is 30 days for this test,' says Mr Seymour.
'International investment is critical to ensuring economic growth. It provides access to capital and technology that grows New Zealand businesses, enhances productivity, and supports high paying jobs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
6 hours ago
- Scoop
Review Condemns Taranaki Regional Council Treaty Principles Bill Decision-Making
, Taranaki Whanganui regional correspondent An internal review has condemned the Taranaki Regional Council's handling of its decision not to make a submission on the Treaty Principles Bill and not to debate the matter. It found the December 2024 decision-making process inconsistent with standing orders, meeting protocols and broader principles of good governance, transparency and natural justice. There was evidence of pre-meeting discussion and agreement among councillors to oppose making a submission and to curtail debate, which contributed to a perception of predetermination and bias. The handling of a related deputation by New Plymouth District councillor Dinnie Moeahu also fell short of the expected standard of engagement and caused offence. Chief executive Steve Ruru undertook the Council Conduct Review which made a raft of recommendations to improve decision-making and rebuild trust with iwi. He found the consequences of the December 2024 meeting "were severe, as it damaged the Council's reputation, resulted in a loss of trust and confidence in the elected Council from iwi partners and strained internal relationships". Council chair Craig Williamson welcomed the recommendations in the report. "It has been a challenging period for everyone and as a council we have taken time to reflect on what happened and how we can be better moving forward. "This review has identified constructive ways we can do that, and I am confident the council will be stronger as a result." Ruru's review looked at what happened before, during and after the meeting as well as the surrounding circumstances and processes. "Important lessons have been learned and the report includes several key recommendations that the council will consider at its 5 August meeting. "Firstly, it endorses the decision the council made in February to apologise to Mr Moeahu, the Taranaki community and councillors who were denied the opportunity to speak." It recommended training and professional development for councillors on Te Tiriti o Waitangi and its application to the council's work, mātauranga Māoriand tikanga of iwi in Taranaki. It also recommended structured training around standing orders and meeting procedures, to ensure these were clear and consistently applied. Ruru said the tight timeframe for submitting on the Bill meant it could not go before the Policy and Planning Committee first as it usually would. His report said the draft submission should have instead been emailed to committee members for comment - even though that might not have changed the outcome. It also recommended the council make greater use of additional meetings outside the set meeting cycle where necessary. Transparency and public input were also areas for improvement with a recommendation that all council and committee meetings be held in venues where they can be livestreamed and recorded. Ruru said his focus was now firmly on the future and the start of a new triennium after October's election was an opportunity for a fresh start. "I have recommended practical steps for the incoming council to consider as well as learning opportunities for councillors. I have also looked at where council officers and I can provide more support and advice to elected members. "When councillors meet after the election, they have the opportunity to implement better procedures, increase their understanding of Treaty and iwi issues and start the mahi to repair relationships and regain the full confidence of our community." Ruru wanted to report to the new council on options for allowing greater public input at meetings.
Scoop
9 hours ago
- Scoop
ACT Announces Andrew Pickford As ACT Local Candidate For Hauraki
ACT Local has selected Andrew Pickford, a former international airline captain who now runs a family farm and local businesses, as its candidate for the Plains Ward of the Hauraki District Council in this year's local election. After more than 25 years flying for major airlines, Andrew swapped the skies for the paddocks. These days, he co-manages a sheep and beef farm and helps run two local franchise stores. He's also worked in project development, bringing practical experience in planning, logistics, and getting things done. He knows what it's like to juggle work, business, and family – and he's standing to bring that real-world perspective into council. The HDC needs someone like Andrew. Someone who will scrutinise spending and push for better value. Council forecast a $500,000 surplus for 2024 and instead delivered a $17 million deficit. Now rates are set to rise by 10.6%, with no real improvements in core services. Last year alone, the council's power bill increased by $650,000, a massive cost blowout that ratepayers are left to cover, with nothing to show for it. It's a clear sign the council has lost control of its finances. Ratepayers deserve better. As an ACT Local candidate, Andrew brings real-world experience from the private sector – where budgets are respected, every dollar is tracked, and waste isn't tolerated. "Flying taught me how to plan ahead, stay calm under pressure, and take responsibility. Farming has shown me the daily challenges families face. Running a business reminds me every day how important it is to spend wisely and stay focused on the essentials. "I want to bring all that experience and knowledge to council, which is why I'm standing with ACT — to bring common sense and accountability back to local government, so ratepayers get real value, not more waste.' – Andrew Pickford Earlier this year, ACT New Zealand announced it would be standing Common Sense Candidates for local government for the first time – after hearing from New Zealanders across the country who are sick of rising rates, ballooning budgets, and councils that ignore the basics while chasing ideological vanity projects. When you vote ACT Local, you know what you're getting: Fixing the basics Cutting the waste Lower Rates Stopping race-based politics Restoring accountability Ending the war on cars ACT Local Government spokesperson Cameron Luxton says: ' ACT Local candidates are community-minded Kiwis who've had enough of wasteful councils treating ratepayers like ATMs. It's time to take control on behalf of ratepayers — to restore accountability and deliver real value for money. ACT Local is about getting the basics right: maintaining roads, keeping streets clean, and respecting the people who pay the bills. Our candidates won't divide people by race or get distracted by climate vanity projects. They're here to serve, not lecture." – Cameron Luxton
RNZ News
14 hours ago
- RNZ News
The Wednesday Politics Panel 30 July
politics world politics 7:35 pm today It's another hit of the most insightful and sharp 30 minutes in political analysis. Today Wallace is joined by journalists Patrick Gower and Andrea Vance. They are joined by former ACT MP Heather Roy. Together they examine and debate the main political stories of the week: the politics of austerity, does the government risk reaching the ends of the public's patience by pushing funding cuts; are the minor parties of the coalition overriding the government; are the changes to voting enrolment laws justified and should we be able to boo politicians?
