Peters Winston: Questions for Oral Answer — Questions to Ministers 
Peters Winston: Questions for Oral Answer — Questions to Ministers 
[Volume:613;Page:10150] 
11.  
Rt Hon WINSTON PETERS (Leader—NZ First) 
 to the  
Minister of Finance 
: How many transactions since 1999 concerning the sale of property to overseas buyers had conditions imposed and how many of these conditions if any has the Overseas Investment Commission failed to ensure were fulfilled? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
All 892 transactions had conditions imposed. The answer to the second half of the member’s question is not available. However I can report that between 1996 when monitoring began and August this year the commission investigated an estimated 398 cases and currently has 19 investigations under way. Of the 398 cases 381 related to late reporting only rather than to any substantive issues. 
Rt Hon Winston Peters 
: Can the Minister explain whether the American applicants Marc and Ivy Powell misled the Overseas Investment Commission when they told the commission that they intended to reside in New Zealand; if not why are they not currently resident 4 years after the application was approved and what will he do about it? 
Hon Dr MICHAEL CULLEN 
: There has been an independent investigation of the Powell case which concludes that by and large they are not in breach of their conditions. The main problem is the consequence of their failure to pay a rather large number of contractors. That unfortunately is not a condition of the sale. 
John Key 
: Is the Minister considering imposing a risk-free rate of return methodology for foreigners investing in projects approved by the Overseas Investment Commission; if not why is he proposing that New Zealanders should pay this crazy wealth tax when they invest abroad? 
Hon Dr MICHAEL CULLEN 
: This is a long way from the original question; however I am prepared to answer it. I am not—it was imposed by the McLeod tax committee. It is strongly supported by a lot of people in the New Zealand financial sector whatever the overseas interest the member represented may have in this matter. To some extent it is supported also by views from the Investment Savings and Insurance Association and others. I have considerable reservations around the risk-free rate of return method as the member probably knows. 
Moana Mackey 
: How do land sales under this Government compare with those under the previous regime? 
Hon Dr MICHAEL CULLEN 
: Under the current Government approved land sales have averaged 3646 hectares a month. From the period December 1996 to 14 August 1998 when Mr Peters was the Treasurer that rate was 10010 hectares a month. 
Rod Donald 
: Why has the Minister not implemented the 2001 recommendations from the Government and Green members of the Finance and Expenditure Committee to “examine the feasibility of a code of corporate responsibility which investors would need to agree to and with which the Overseas Investment Commission would monitor compliance.”? 
Hon Dr MICHAEL CULLEN 
: I do not think that would be as useful as ensuring specific conditions that are effectively monitored. One of the key elements of the review currently being undertaken is the monitoring regimes in place and the capacity of the Overseas Investment Commission to carry out that monitoring regime. 
Rt Hon Winston Peters 
: Will the Minister confirm that in the 7 years before I became the Treasurer not one application was declined. When I became the Treasurer all applications that had any sensitivity came to my office unlike now; and last of all where are Marc and Ivy Powell; if they are not here why has that deal not been revoked by him as Minister? 
Hon Dr MICHAEL CULLEN 
: I do not know where they are but given the member’s earlier questions today I assume he is happy that foreigners are not in this country. 
Rt Hon Winston Peters 
: I seek leave to table a press statement by Dr Cullen saying how he approved of my way of handling Overseas Investment Commission matters and legislation that I drafted. 
Mr SPEAKER 
: Leave is sought to table that statement. Is there any objection? There is.