Peters Winston: Questions for Oral Answer — Questions to Ministers Questions to Members 
Peters Winston: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:620;Page:15951] 
3.  
Rt Hon WINSTON PETERS (Leader—NZ First) 
 to the  
Minister of Finance 
: What policies will be implemented if any to enable the Government to better determine the quality of overseas investment in New Zealand? 
Hon TREVOR MALLARD (Acting Minister of Finance) 
: 
 The Government plans to improve the overseas investment regime to provide greater protection for heritage sites improve monitoring enforcement and reduce the barriers to business investments that can make positive contributions to the economy. 
Rt Hon Winston Peters 
: Is it not a fact that interest and dividends remitted overseas cost New Zealand $8.9 billion in the year to March 2004 of which $4.9 billion resulted from investment under the overseas investment criteria and what will he do about that mindless rubber stamping of every purchase by foreign interests? 
Hon TREVOR MALLARD 
: That may be the member’s view. My understanding is that direct foreign investment in New Zealand is now at about 40 percent of GDP and last year it was also about 40 percent. When he was Treasurer it was 60 percent. There has been a significant drop. 
Luamanuvao Winnie Laban 
: What other initiatives has the Government introduced to encourage positive foreign investment? 
Hon TREVOR MALLARD 
: The current taxation bill before the House provides an exemption from income tax for non-residents who are exempt in their own countries from taxation on gains made from share sales in unlisted New Zealand companies. That move is designed to make it easier for New Zealand companies to access offshore venture capital and will align our rules more closely with Australia’s. Given that we want to have high-quality investment that is a good move. 
Rt Hon Winston Peters 
: Does the Minister remember the glorious Labour Government sale of Air New Zealand or the magnificent sale by the previous National Government of New Zealand Rail and is it not a fact that the amount being made by foreigners out of the New Zealand economy equates to the same amount that New Zealand makes from the export of milk-powder butter and cheese and is many times more than any new trade agreement would promise let alone deliver? 
Hon TREVOR MALLARD 
: I am not sure of the member’s figures; he does not always have accurate figures. But I do remind him— 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. The Minister cannot deviate into totally untruthful territory for a start that is not to the point of the answer. He has just challenged my figures. The figures that I have happen to have been put together by someone— 
Mr SPEAKER 
: The member states there are figures. The Minister in answering can dispute the figures. That addresses the question concerned. If the member wants to table any documents at the end of his question to prove his point he is perfectly entitled to do so. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. He is not disputing the figures at all. He does not have any. He is making an allegation that my figures are not accurate without any access to the background of that information. That is my point. 
Mr SPEAKER 
: I will let the Minister carry on. 
Hon TREVOR MALLARD 
: I repeat that I do not always rely on the figures the right honourable gentleman gives me for good reason. The figures that I do have indicate that in 1998 just after that member had been appointed Treasurer of this country direct foreign investment totalled 60 percent of GDP. It now totals 40 percent. It has gone—[ 
Interruption 
] The economy has grown as Lockwood Smith knows. The proportion has dropped. Mr Peters does not like it but he was the one who did exactly what he is saying this Government should stop doing. 
Rt Hon Winston Peters 
: Why on earth is the Minister making out that argument when he knows full well that New Zealand First had legislation passed on foreign investment that the later National Government refused to have signed off by the Governor-General but that the Government Mr Mallard belongs to did and that it is that that has led to an improvement not anything that he might have done himself? 
Mr SPEAKER 
: The Minister may comment briefly in so far as it relates to his responsibilities. 
Hon TREVOR MALLARD 
: I think my responsibility is that I am aware of what happened in the past. But what I am also aware of is that right from the time that the sealers and the whalers came to New Zealand high-quality foreign investment was important. 
Rt Hon Winston Peters 
: I seek leave to table an article on the foreign investment trade 
“New Zealand Economic Register for the World” by a senior researcher with the Christchurch-based Campaign Against Foreign Control of Aotearoa. 
Mr SPEAKER 
: Leave is sought to table that. Is there any objection? There is. [ 
Interruption 
] 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. Somebody behind me said that that has got to be a joke. He is right. There is a joke and it is sitting behind me.