Smith Nick: General Debates 
Smith Nick: General Debates 
[Volume:610;Page:7660] 
Hon Dr NICK SMITH (NZ National—Nelson) 
: 
 In recent days a number of media have covered the story of Marc and Ivy Powell a wealthy American couple who gained New Zealand residency and purchased the large Waitai Station on D’Urville Island in 1999 with Overseas Investment Commission approval. The way this couple have used and abused our country’s immigration foreign ownership and commercial laws is a disgrace. This case raises questions about how effectively residency and overseas investment conditions are enforced. 
I make no apologies for using the privileges of this House to expose this matter. Those who worked for the Powells were required to sign horrendous confidentiality agreements with $100000 penalty clauses for mentioning any aspect of this couple or their development on D’Urville Island. There is an air of fear about this couple reinforced by writs served against those who dare question them. This secrecy fear and litigiousness are not the New Zealand way. 
My interest in this matter arises from constituents in Nelson having fallen victim to the deep-pocket litigation employed by this couple. There are over one dozen creditors—small honest Kiwi business people—who have been done over by this couple. Let me tell a few of their sad stories. 
Fraemohs Industries a well-known South Island building firm did major building work on D’Urville Island. The firm lost over $320000 in its dealings with the Powells. The company has gone from employing 40 people to fewer than 10. The dispute wrecked the health of the managing director who has had to sell that business. Tilley’s a well-respected plumbing and drainage firm from Nelson has been done for $120000. This is a crippling debt for a small family firm. When the firm attempted legal action to recover the money it was hit by a $300000 counterclaim. A Nelson barging firm Tyco Marine transported materials out to D’Urville Island for the couple’s luxury mansion. It sought payment for just $1300 in the disputes tribunal and was hit with a spurious counterclaim of $30000 from the Powell’s lawyers—no surprise. The firm simply walked away unpaid. The firm of architects and designers involved in the project is trying to recover $45000 but it too has been hit with huge counterclaims totalling over $600000. The consulting engineers involved sought payment of $23000 and got a counterclaim and suit for $200000 for its claims. 
These sums would bankrupt any of these individuals and businesses and they hang over them as dark intimidating clouds. The stories are repeated over and over again. The claims for payment are first diverted off to consultants or other companies. Spurious claims are made about the standard of work. The Fair Trading Act the Consumer Guarantees Act and the confidentiality agreements are quoted at length. Huge counterclaims are lodged as intimidation and most creditors have just walked away. 
What irritates me further is the way our residency requirements have been so blatantly abused. This couple told the Immigration Service that they would reside permanently here. There is strong evidence that they never intended to do so. The facts are that they have spent negligible time in New Zealand and have breached their commitments to the Immigration Service and today I am formally writing to the Minister of Immigration to have their residency revoked. 
Nor have the couple carried out their business plans as stated to the Overseas Investment Commission. This too requires inquiry. I cannot see any benefit for New Zealand in allowing very wealthy absentee landowners to own some of our most precious coastal farmland. We cannot allow our country to be prostituted in this way. I do not care how many millions or billions of dollars people have; we should not put up with this sort of abuse of New Zealand’s sovereign territory. This case highlights how we need to rethink our approach to business migration and overseas land sales to ensure that New Zealand is able to benefit. 
I seek the leave of the House to table a series of documents obtained under the Official Information Act from the Overseas Investment Commission on the matters I have raised. 
Documents by leave laid on the Table of the House. 
I seek the leave of the House to table public documents filed in the courts against the many creditors who have sought payment for their work done on D’Urville Island. 
Documents by leave laid on the Table of the House.