Williams Andrew: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeWilliams Andrew: Questions for Oral Answer — Questions to Ministers[Sitting date: 14 May 2014. Volume:698;Page:17826. Text is incorporated into the Bound Volume.]8.ANDREW WILLIAMS (NZ First) to theMinister of Finance: Will the 2014 Budget contain specific measures to improve tighter rules on foreign ownership of New Zealand land businesses and other New Zealand-owned assets; if not why not?Hon BILL ENGLISH (Minister of Finance): The member will just have to wait until tomorrow to hear what is in the Budget. But I could point out to the member that the nearby market Australia has some restrictions and housing in Australia is relatively more expensive than it is in New Zealand. In terms of the restrictions on overseas buyers of these assets we think the current framework introduced under the previous Government—in fact I think overseen by the Minister at the time Winston Peters—strikes about the right balance.Andrew Williams: Given that as at 31 December 2013 New Zealand’s net international investment position was a deficit of $147.5 billion equivalent to negative 66.6 percent of GDP how is continuing to sell our assets overseas going to solve our debt problem?Hon BILL ENGLISH: I am interested the member raises the net international investment position. I think 4 years ago it was minus 85 percent of GDP and it has improved more quickly and further than I think anyone anticipated just 4 or 5 years ago to minus 65 percent of GDP. If it improves further to somewhere around 50 percent that would put us around the kind of national norm for our type of open economy. So we are actually making quite significant progress assisted no doubt by the processes put in place by Winston Peters to ensure that foreign investment in New Zealand was useful for New Zealand.Andrew Williams: Why does the Government continue to talk of foreign investment when most foreign takeovers are simply a transfer of ownership that creates no new asset?Hon BILL ENGLISH: The thing is that with a small open economy we generally benefit from being open to other people’s capital. They bring in other ideas. Foreigncompanies are not too bad at picking businesses in New Zealand that they can grow into something better and more productive. It would be a bit odd to do what all Opposition parties are now promising to do which is essentially stop overseas capital coming into New Zealand. That is a guarantee to destroy jobs reduce incomes and destroy wealth.Andrew Williams: Why is the Government avoiding developing a comprehensive registry of foreign ownership if not to hide the true extent of foreign ownership in New Zealand?Hon BILL ENGLISH: It is a matter of imposing more compliance costs only if we think there is a benefit that is larger than those costs. It may be possible to track every single so-called foreign buyer although a lot of them who look foreign are actually New Zealand residents. A lot of New Zealand citizens actually live offshore. It would be a fairly large complex exercise. The Government’s view is that in light of the fact that somewhere around maybe 2 to 4 percent of our housing stock is owned by foreigners and around 2 to 4 percent of housing sales are likely to go to foreigners including expat Kiwis it is not a large influence on house prices. A much bigger influence is the decisions made by councils to restrict supply driving up house prices particularly in our larger cities.Andrew Williams: Will the Government commit to New Zealand First’s policy of collecting comprehensive data on the extent of foreign ownership in New Zealand so that the public can actually see what land and assets have gone into foreign ownership?Hon BILL ENGLISH: That is the least harmful aspect of New Zealand First’s policy. Its real policy is to ban foreign investment of all sorts and I suspect ban foreigners.Tracey Martin: I raise a point of order Mr Speaker. The Minister has no responsibility for New Zealand First policy—Mr SPEAKER: Order! [Interruption] Order! I do not need assistance but I invite the member to go back and look at her colleague’s question. It asked for comment on New Zealand First policy.Andrew Williams: Is the Government’s refusal to have the full picture revealed to the public on the true extent of foreign ownership because it knows that the real figure is much higher than the figure it has been citing from the BNZ of 8 percent and even the Inland Revenue Department’s figure of 11 percent; if so will it finally commit to New Zealand First’s policy of establishing a land register?Hon BILL ENGLISH: I stand by the rough estimates we have used. The 11 percent is 11 percent of investment housing stock which means about 3 or 4 percent of all housing stock. But the member should be pleased that the Labour Party—the party that is meant to be friendly to the migrant communities—has essentially adopted New Zealand First policy of banning foreign investors.Hon David Parker: I seek leave to table a 2013 article titled “Economic Inequality in New Zealand” showing that in 2009 New Zealand was 14th—Mr SPEAKER: Order! [Interruption] Order! I just need the source of the article.Hon David Parker: It is authored by Brian Easton.Mr SPEAKER: Is it published in one of the daily papers?Hon David Parker: No no it is published in a journal but I cannot remember which one.Mr SPEAKER: On the basis that it is a Brian Easton article it is published in a journal and it may not be freely available to members I will put the leave. Leave is sought to table it. Is there any objection? There is none. It can be tabled.Document by leave laid on the Table of the House.Andrew Williams: I seek leave of the House to table a document prepared by the Parliamentary Library showing that properties that are rental properties and other properties owned offshore are between 6.4 percent—Mr SPEAKER: Order! The information has been described. Leave is sought to table that particular information prepared by the Parliamentary Library for the member. Is there any objection? There is none. It can be tabled.Document by leave laid on the Table of the House.Hon Dr Nick Smith: I seek leave to table the Treasury reportData on Foreign Ownership of New Zealand Housing showing that approximately 22000 homes or 1.2 percent are owned by people who live overseas—Mr SPEAKER: Order! Again that has been described well enough. Leave is sought now to table this particular Treasury report. Is there any objection to that being tabled? There is none. It can be tabled.Document by leave laid on the Table of the House.