Source: BusinessNZ
BusinessNZ says the Government’s announcement to reform the Overseas Investment Act sends a positive signal to the world that New Zealand is ready to do business.
Chief Executive Katherine Rich says existing rules make it difficult and uncertain for overseas investors to consider investing here.
“New Zealand’s settings for overseas investment have been some of the most restrictive in the OECD. These rules have held us back from achieving our potential as we say no to investment which has been accepted by other economies.
“As one example, any non-urban land parcel larger than five hectares is deemed sensitive in the current Act. For the likes of a manufacturer looking to set up shop and invest here, anything less is far too small.
“BusinessNZ has long advocated for new policy settings which could allow us to gain the benefits of overseas capital and grow businesses, assets, and the incomes of New Zealanders. We know that business will be heartened by today’s announcement.
“Changing settings will be a positive first step in showing the rest of the world that we welcome investment – but more changes are required to encourage it.
“Settings related to taxation of overseas earnings and incentives for research and development need to be more internationally competitive. Otherwise, investors will choose to put their money and talent where they see a better return.”
The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.