Connell Brian: Overseas Investment Bill — First Reading 
Connell Brian: Overseas Investment Bill — First Reading 
[Volume:622;Page:18035] 
BRIAN CONNELL (National—Rakaia) 
: 
 That was an outstanding contribution from the last speaker. I was hoping he would take more time and give another example but we are very grateful for having had the benefit of his contribution. 
The National Party is prepared to support this legislation through to its next stage and as my colleague the Hon David Carter has already foreshadowed we will watch carefully what happens at the select committee stage and reserve our position. I have to say that at a first read it appears to me that this bill is a pragmatic and common-sense solution to what is an emotional and often very ill-informed debate flamed by some politicians in pursuit of what I roughly phrase as cheap votes. National has no problem with the concept of foreigners pouring their hard-earned cash into this country subject to some clear rules of engagement. For goodness’ sake—everybody wins! Overseas investors get to live work and own property in Godzone and we get money for education employment infrastructure—members can name it. That is the type of contribution that foreign capital makes to our economy. 
But I have to say also that this bill appears to me to be an absolute no-brainer. Arguing against it is a bit like arguing against motherhood. But then on reflection I realise that some members of the House did argue against that last week so I probably should not use that example. No one is knocking tourism in New Zealand no one minds planeloads of foreigners coming here and spending their cash— 
Hon David Carter 
: The Green member does. 
BRIAN CONNELL 
: Will the Green member knock tourism? Well that is probably enough said. No one should mind foreigners coming here and deciding they want to buy a company or a farm— 
Hon Dr Michael Cullen 
: I bet he doesn’t ride a NZ-made bicycle. 
BRIAN CONNELL 
: I bet he does not. Foreigners are really saying to people in New Zealand that they think this is a great country and they want a stake in it. I say to members in this House and particularly to Green Party and New Zealand First members that this is just another form of immigration. Unless we forget I remind everyone that we are a nation formed from immigration beginning with Kupe. Overseas investment is a vote of confidence in the New Zealand economy. Years of market reform in the 1980s and the 1990s have made this a very good-performing economy but some Luddites in the House want to wind back that clock. 
I have heard all sorts of talk about our heritage being sold off etc. but I want to quote some examples that put those myths to bed I hope forever. In the last 3 years 11 Canterbury high-country stations were sold. Six of those went to New Zealand interests three were sold to New Zealand and foreign interests in joint ventures and only two were sold to foreigners—so much for the argument that Kiwis are being priced out of the marketplace! Over the last 11 years 40 percent of foreign-owned properties were sold back to New Zealand interests. I have also to say that with the benefit of that overseas capital those farms are now performing at a much higher level than they ever were before. They are making significant contributions to the local economy in terms of both their produce and their employment opportunities. Let us remember that nothing is sold in this country—or not yet unless Mr Sutton has his way—unless there is a willing seller and a willing buyer. 
I challenge a member of the Green Party or the New Zealand First Party to stand up—whoever will—and say that he or she is prepared to take $50000 or $100000 less for his or her property simply because it is an overseas buyer who is making that offer. The Government has no right to involve itself in the New Zealand property market and has no role in that market. I therefore congratulate the Minister on resisting the pressure that must have been brought to bear from some quarters for him to do just that. 
I want to take time to quote another example. Five Star Beef Ltd’s feedlot in Ashburton houses nearly 18000 cattle all destined for the top tables in Japanese restaurants. It is a joint-venture operation between Japanese and New Zealand interests and Japanese capital contributes something like $30 million to that venture. Not only does that feedlot employ significant numbers of people in the area but it underpins the local barley price two meatworks three or four transport companies and dozens of grazing and silage contracts and the flow-on effects into the Ashburton retail trade are extremely significant. That is what foreign capital does for this country. 
I offer yet another example from mid-Canterbury. The Mt Hutt ski-field is now regarded as one of New Zealand’s premier tourist attractions. The prosperity of the township of Methven is underpinned by the performance and success of that ski-field—and guess what? The capital that underpins that ski-field is Japanese capital as well. [ 
Interruption 
] Is the member contradicting me? 
Hon David Carter 
: I’ll tell you when I’ve made it. 
BRIAN CONNELL 
: Ha ha! Well a lot of it is foreign capital; does the member agree with that? In fact there is actually some misunderstanding around the Mt Hutt ski-field. About 4 or 5 years ago there was an exchange of ownership. The original owners of Mt Hutt ski-field were having difficulty trading so they sought significant capital. My understanding is that that capital came from Japan. 
I have another example: the Terrace Downs golf resort in mid-Canterbury is now regarded as one of the premier golf courses in this country. About 10 years ago a Japanese investor—risk taker is a better way of describing him—came to the area and bought a farm that nobody else wanted. The local community said: “You are absolutely mad.” Today the capital employed in that resort is in excess of $80 million. The resort employs 180 people at the height of the season and has been doing so for many years. An astounding number of people in the local community—in particular Christchurch—have built properties on this resort. One needs only to go there to see how outstanding that development is. That was all due to foreign capital. 
If we adopted some of the arguments put forward in this House we would build a wall around this country to keep out the rest of the world but that would be shooting ourselves in the foot. We need foreign capital we need foreign investment and we need the type of person I have just spoken about to come here and invest. We need to embrace those people. But the anti-foreign sentiment I have heard tonight makes my skin crawl. It is sad but a lot of the protest is racially based. I have to say that some members are objecting because a lot of people who are coming here and investing in New Zealand are Asian. I say to them: “Wake up and smell the roses.” We are a multicultural country now and we are part of Asia. 
I say to those members: “Don’t be surprised because you will be slashing your wrists if we see people from Pakistan South Korea and Mainland China coming here to invest more and more into the future.” Capital is a scarce resource and we should embrace it.