Hayes John: Questions for Oral Answer — Questions to Ministers Questions to Members 
Hayes John: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:670;Page:16810] 
3. 
JOHN HAYES (National—Wairarapa) 
 to the  
Minister of Finance 
: What progress has the Government made on strengthening New Zealand’s economic relationship with Australia? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 Today Prime Minister John Key and Australia’s Prime Minister signed the Protocol on Investment to the New Zealand - Australia Closer Economic Relations Trade Agreement. It builds on existing goods and services agreements and will cut red tape and compliance costs for investors on both sides of the Tasman. It provides additional safeguards for the $36 billion that New Zealanders have invested in Australia which is the largest overseas destination of New Zealand investment. I would like to take the opportunity to acknowledge the work done by the previous Labour Government in beginning the investment protocol negotiations. 
John Hayes 
: What changes will occur under the investment protocol? 
Hon BILL ENGLISH 
: In the case of New Zealanders investing in Australian business assets the screening threshold increases from A$231 million to just over A$1 billion. In the case of Australians investing in significant New Zealand business assets the threshold rises from NZ$100 million to NZ$477 million. The protocol ensures that in most instances New Zealanders will be treated equally with Australians investing in their own country and gives them more certainty that their investments will be protected and will not be treated unfairly. 
Hon David Cunliffe 
: In respect of the potential for energy assets to be sold to Australia given the new threshold does he agree with John Key who said that options for narrowing the wage gap with Australia are limited and that “we can sit around all we like if we want and worry about a potential partial float … [but] that is not going to make the New Zealand economy go faster and … we’ll continue to lose New Zealanders and that’s just not sustainable.”; if so why is he continuing to consider a partial float if it will not grow our economy or keep New Zealanders here? 
Hon BILL ENGLISH 
: The Government is working on a wide range of fronts to undo the damage done by the previous Government and to build stronger economic opportunity in New Zealand. We are making significant progress and the investment protocol signed today is just another small step along with hundreds of others this country needs to take in order to close the wage gap between New Zealand and Australia. 
John Hayes 
: What changes will occur under the investment protocol? 
Hon BILL ENGLISH 
: The provisions of the protocol preserve our ability to take measures that could affect investors differentially. Those include fulfilment of obligations under the Treaty of Waitangi; protection of human animal or plant life or health; and management of a balance of payments crisis. Furthermore if the Government decides to move to a mixed-ownership model for certain State-owned enterprises the protocol includes a specific provision that preserves the right of the New Zealand Government to give preference to New Zealanders in respect of State-owned enterprises. 
John Hayes 
: What categories of investment are covered under the investment protocol? 
Hon BILL ENGLISH 
: One important category that is not covered by the protocol is investment in land. Investments in sensitive land will be treated under the Overseas Investment Act in the same way as any other investment so the thresholds and categories have not changed in respect of land investment. The protocol applies specifically to business investment. 
John Hayes 
: Under the investment protocol what policy flexibility do we retain? 
Hon BILL ENGLISH 
: New Zealand retains policy flexibility on those matters that we regard as important to our sovereign interests: in particular the Treaty of Waitangi dealing with a balance of payments crisis and also the ability to provide a preference for New Zealanders investing in State-owned enterprises.