Sio Hon Aupito WilliamOVERSEAS INVESTMENT (URGENT MEASURES) AMENDMENT BILLSecond ReadingHon AUPITO WILLIAM SIO (Minister for Pacific Peoples) on behalf of the Minister for Trade and Export Growth: Talofa lau afioga I le Fofoga Fetalai—which is simply to acknowledge you Madam Speaker. Actually the word Fofoga Fetalai" is gender neutral. It actually refers to the honourable orator and speaker on behalf of all those who sit in this House.I move That the Overseas Investment (Urgent Measures) Amendment Bill be now read a second time.The Minister would like to acknowledge the members of the Finance and Expenditure Committee for the way that they dealt expeditiously with this bill. Even though it was a tight time frame the bill is better off thanks to their dedication and effort. I also want to acknowledge the 17 submitters who took time out of their busy lives to participate in the democratic process. Individuals law firms and businesses all made a significant beneficial contribution which helped make this bill a much better bill than we originally started off with. Despite the tight time frames it did not prohibit us from producing a bill which achieves its purpose of ensuring that we manage the risk posed by foreign investments effectively while also reducing the regulatory burdens of the current screening process so that we can continue to attract sustainable investment in our country.The bill contains measures which the Government considers need to be put in place urgently to mitigate the economic effects of COVID-19 to help us restore recover and rebuild New Zealand's economy. This is one of two bills that have been put before Parliament as a package. The other one that has been referred to select committee is the Overseas Investment Amendment Bill (No 3). This contains the remainder of the provisions from the phase two reform of the Overseas Investment Act. It is still the intention of the Minister that the amendments made through this urgent bill be subject to further parliamentary scrutiny through the process of Parliament's consideration of the No. 3 bill. The Minister would like this House to consider the COVID-19 pandemic context where we have seen globally that the pandemic and related economic downturn have changed the foreign investment risk environment. Falling firm values are increasing opportunities for overseas investors to acquire ordinarily productive firms or strategically important assets at fire-sale prices without any Government scrutiny. This could result in risks to New Zealand's national security or an offshore transfer of knowledge and jobs. That sale at a reduced value may not reflect the importance of the business to our economy and interim controls are needed to protect our national assets. Some of those businesses that could be snapped up may be best kept in New Zealand ownership to help our recovery. The measures increase oversight and foreign investments in New Zealand. At this time of unprecedented crisis the Government needs the ability to rapidly respond to foreign investment risks and to be able to protect New Zealand's essential interests. Therefore this bill introduces a new emergency notification regime which will require overseas persons to notify the Government of certain investments with a controlling stake in an existing business or business assets that would not ordinarily require consent.Then there's a number of other powers that have been introduced here—new powers to effectively manage the risk of overseas investment. The Government does not currently have sufficient ability to block transactions that are contrary to our national security the functioning of our democracy or other essential interests. So we are introducing a national interest test that can be applied to transactions already requiring consent in the existing regime. This tool will be used rarely and only where the Minister responsible for the Act considers it necessary.Can I then go to new exemptions following the select committee process. Again through that select committee process we were able to receive the benefit of their expertise and experience and there's a number of items that we've listed in the report which have enabled that bill to be a far better bill than what we started off with. And again the Minister acknowledges all those who have contributed. We're also cutting red tape to support sustainable investment in our country. Finally this bill supports New Zealand's interests at a critical time by increasing our oversight of foreign investment and cutting the red tape needed to ensure the Act supports rather than hinders our recovery. New Zealand continues to be open for business. Productive foreign investment has been and will continue to be important for our economic wellbeing both in this time of recovery and beyond.This bill and the No. 3 bill will achieve the balance between welcoming investment and the need for safeguards. They will set us up to make the most of the coming decades of economic change and transformation. I'd like to once again on behalf of the Minister thank members of the select committee the members of the public who contributed to this as well as officials for their responsiveness and engagement on this time-critical issue. I commend this bill to the House."