April 2025 Introduction This submission is being made on behalf of the New Zealand International Business Forum (NZIBF), whose members are listed at...
Submission to the Finance and Expenditure Selected Committee of the New Zealand Parliament

SUBMISSION TO THE FINANCE AND EXPENDITURE SELECT COMMITTEE OF THE NEW ZEALAND PARLIAMENT
OVERSEAS INVESTMENT AMENDMENT BILL
JANUARY 2018
- This submission is made on behalf of the New Zealand International Business Forum (NZIBF) whose members are listed at Annex A.[1] NZIBF is a forum of senior business leaders working together to promote New Zealand’s engagement in the global economy.
- NZIBF welcomes the opportunity to comment on the ‘Overseas Investment Amendment Bill’ (“the Bill”).
- For its sustained prosperity as a nation and to enhance the living standards of our communities, New Zealand critically depends on being deeply engaged internationally through broad and deep flows of goods, services, capital, data, knowledge, technology and people. These international connections not only generate direct export earnings but also help to create the optimal conditions for productivity, innovation, job creation and economic growth for the benefit of New Zealand businesses and for New Zealanders at home.
- Foreign direct investment is a key component of New Zealand’s economic future. Inflows of capital supplement New Zealand’s relatively shallow capital base, enable the development of productive businesses and infrastructure, facilitate the introduction of innovative new technologies and management techniques that drive domestic competition and productivity growth, and serve to generate new opportunities for employment for New Zealanders. New Zealand businesses are also themselves increasingly investing offshore, and New Zealand’s foreign investment policy settings can in turn help to encourage investment-friendly approaches from our FTA partners. NZIBF is accordingly a strong and longstanding supporter of foreign investment in New Zealand and of provisions in our trade agreements which promote greater certainty and security for foreign investments in both directions.
- NZIBF takes no position on the policy objectives in relation to residential housing in the Bill. We welcome the Government seeking to resolve these issues before the Comprehensive and Progressive Trans Pacific Partnership Agreement (CPTPP) is enacted.
- NZIBF is concerned, however, at the potential implications arising from the Bill for New Zealand’s trade agreements, and for any unintended consequences for broader FDI settings.
New Zealand’s obligations under international trade agreements
- With respect to New Zealand’s trade agreements, NZIBF is concerned that any legislative action or new policy settings in this area should take careful account of our FTA commitments.
- We note that Australia is exempted from the proposed action, consistent with New Zealand’s obligations under the CER Investment Protocol, and in accordance with the special relationship between New Zealand and Australia. We propose likewise the exemption of longstanding FTA partner Singapore from the regulations, given the commitments under our Singapore-New Zealand Closer Economic Partnership Agreement (and in particular in relation to the definitions of the categories of investment that are subject to screening as set out in the CEP Agreement).
- More broadly we would emphasise the importance of staying closely in touch with all of our existing FTA partners to explain the changes to our policy, to reassure them that New Zealand will continue to respect its international treaty obligations, and to emphasise the value that New Zealand continues to place on foreign direct investment that serves to enhance New Zealand prosperity.
Impact on OIO approval timeframes
- NZIBF is concerned that the proposed implementation of the regulations, namely their administration by the Overseas Investment Office (OIO), could place a heavy additional resource burden on the Office. A large increase in applications is likely under the new regime: the Regulatory Impact Assessment describes this as a “significant increase in volume of transactions expected…and the [OIO] will also have expanded role around compliance, monitoring and enforcement”.
- The Office is already under pressure, commonly resulting in lengthy decision-making timeframes which attract adverse comment from current and potential foreign investors. The increase in the workload for the OIO under the new regime could result in potentially even longer approval timeframes – and for all proposed investments, not just those covered by the new policy. This would be damaging to overseas investor perceptions of New Zealand, detracting from New Zealand’s otherwise world-leading “ease of doing business” rating. It would also negatively affect any New Zealanders involved in any such transactions. We would accordingly strongly support the allocation of substantial new Crown funding for the OIO to enable the current average timeframe for approvals of five months to be reduced even under the new regime.
Recommendations to the Finance and Expenditure Select Committee
- NZIBF accordingly recommends that the Committee:
a) seek further advice from officials on the consistency of the proposed legislation with New Zealand’s trade agreement obligations prior to proceeding further;
b) propose the exemption of Singapore from the proposed legislation, along similar lines to the exemption of Australia, subject to the receipt of the advice mentioned in sub-paragraph (a) above;
c) recommend sufficient additional resourcing of the OIO in order to expedite its decision-making timeframes
For further information
Stephen Jacobi, Executive Director, NZ International Business Forum
Phone: 0294 725 502
Email: st*****@*******co.nz
Issued by the New Zealand International Business Forum, January 2018
ANNEX
NEW ZEALAND INTERNATIONAL BUSINESS FORUM: MEMBERSHIP
Executive Committee
Malcolm Bailey (Chair), Chair, Dairy Companies’ Association of New Zealand
Michael Barnett, Chief Executive, Auckland Regional Chamber of Commerce and Industry (representing the New Zealand Chambers of Commerce)
Philip Gregan, Chief Executive, NZ Winegrowers
Sir Graeme Harrison, Chairman, ANZCO Foods Ltd
Kirk Hope, Chief Executive, Business NZ
Peter McBride, Chairman, Zespri International Ltd
James Parsons, Chairman, Beef + Lamb New Zealand
Alan Pollard, Chief Executive, NZ Apples and Pears
Simon Power, General Manager, Consumer Banking and Wealth, Westpac NZ
Brian Stanley, President, Wood Council of New Zealand
Philip Turner, Director, Global Stakeholder Affairs, Fonterra Co-operative Group
Steve Yung, Chief Executive, Sealord Group Ltd
Alternate Directors
Catherine Beard, Executive Director, Export NZ/Manufacturing NZ
Jeffrey Clarke, General Manager, Advocacy, NZ Winegrowers
Nick Kirton, Manager, Government Relations, Zespri
Jenny McGregor, General Manager, Trade Strategy, Fonterra Co-operative Group
Sam McIvor, Chief Executive, Beef + Lamb New Zealand
John Milford, Chief Executive, Wellington Chamber of Commerce
Executive team
Stephen Jacobi, Jacobi Consulting Ltd (Executive Director)
Fiona Cooper, Cooper Clarke Consulting (Associate Director)
Stephanie Honey, Honey Consulting (Associate Director, Lead Staffer, ABAC)
[1] The views in this submission are those of NZIBF as a whole. Individual members may have different views on specific issues covered in this submission.
REGISTER WITH TRADE WORKS
Register to stay up to date with latest news, as well as saving and discussing articles you’re interested in.
Latest News
SUBMISSION TO THE MINISTRY OF FOREIGN AFFAIRS AND TRADE ON A COMPREHENSIVE FREE TRADE AGREEMENT WITH INDIA
April 2025 Introduction This submission is being made on behalf of the New Zealand International Business Forum (NZIBF), whose members are listed at Annex A[1]. NZIBF is a group of senior business leaders working together to promote New Zealand’s engagement in the...
LAMENTATION DAY
When President Trump spoke in the White House Rose Garden to launch his wrecking-ball “fair and reciprocal tariffs”, there were some in the audience wearing hard hats. While this was doubtless to show support for the move amongst hard-working Americans, maybe...
BUSINESS FORUM DEEPLY DISAPPOINTED WITH UNJUSTIFIED US TARIFFS
Media release, 4 April 2025 The New Zealand International Business Forum (NZIBF) has reacted with deep disappointment to the news that the United States will implement an additional 10 percent ad valorem tariff on New Zealand exports. “The United States is a close and...
Bull in a China Shop: Market Price Support in the Dairy Industry
Market price support policies (aka as “subsidies”) in the agriculture sector are a classic example of what is meant by 'beggar thy neighbour'. One country attempts to improve its own economic situation by intervening in the market on behalf of its producers, at the...
BUSINESS FORUM WELCOMES INDIA FTA NEGOTIATIONS
Media release, 17 March 2025 The NZ International Business Forum (NZIBF) welcomes the launch of free trade negotiations with India, announced in Delhi, and is particularly pleased that these will proceed on a comprehensive basis. “There is enormous value to be gained...
Playing the long trade game with India
Prime Minister Luxon is at last making his visit to India with a large business and community delegation. We wish them well in expanding and deepening the relationship with India. The reasons for doing so we have explained previously. Our Government’s...
SUBMISSION TO THE MINISTRY OF FOREIGN AFFAIRS AND TRADE
PROPOSED GREEN ECONOMY JOINT WORKING GROUP WITH CHILE AND SINGAPORE MARCH 2025 Introduction This submission is made on behalf of the New Zealand International Business Forum (NZIBF), whose members are listed at Annex A[1]. NZIBF is a forum of senior business leaders...
PRESENTATION TO APEC BUSINESS ADVISORY COUNCIL: ADDRESSING PROTECTIONISM AND NON TARIFF BARRIERS
BRISBANE, 24 FEBRUARY 2025 STEPHEN JACOBI, EXECUTIVE DIRECTOR, NZIBF My thanks to Anna Curzon and Stephanie Honey for giving me one last opportunity to speak to ABAC. I want to talk today about rising protectionism and proliferating non tariff barriers. It’s not a new...
Business Leaders Sound Alarm on Global Economic Uncertainty: Call for Unified APEC Action
Brisbane, Australia, 25 February 2025 - Among rising global economic tension, the APEC Business Advisory Council met in Brisbane this week to reaffirm its support for the value of trade and cooperation, and the original APEC commitment to free, fair, open and...
REMARKS TO FOREIGN AFFAIRS, DEFENCE AND TRADE COMMITTEE – 20 FEBRUARY 2025
RATIFICATION OF NEW ZEALAND-UAE COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (CEPA) STEPHEN JACOBI, EXECUTIVE DIRECTOR, NZIBF Thank you Chair for the opportunity to appear before the Committee today. I do so on behalf of the members of the NZ International Business...
Submission by ExportNZ and TradeWorks to the Health Select Committee on the Gene Technology Bill
17th February 2025 Our Recommendations ExportNZ and the New Zealand International Business Forum (NZIBF) support the Government’s overall intention to modernise New Zealand’s gene technology regulations. We support the establishment of a risk-based regulatory regime...
SUBMISSION TO THE FOREIGN AFFAIRS, DEFENCE AND TRADE SELECT COMMITTEE
RATIFICATION OF NEW ZEALAND-UAE COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (CEPA) FEBRUARY 2025 This submission is made on behalf of the New Zealand International Business Forum (NZIBF) and ExportNZ[1]. NZIBF is a forum of senior business leaders working together...
SOUTHERN LINK REVISITED SEMINAR, SEPT 2024
On 24 September 2024 a stakeholders seminar was held in Auckland to reassess the Southern Link concept, five years after a large conference kickstarted focused discussion of the idea (before Covid intervened). This report of the seminar discussions...
T Day has come
STOP PRESS – NOT SO FAST. This post deals with the tariffs President Trump announced on 1 February he would impose on Canada, Mexico and China. By 4 February he announced imposition of tariffs on Canada and Mexico would be suspended for 30 days (until 5 March). ...
Back to the future?
The end of 2024 has trade advocates reaching back to their 2016 taking points as an Administration of a depressingly protectionist hue prepares to take office in the United States, once the global champion for trade liberalisation. We do not know for now what,...
0 Comments