Carter David: Overseas Investment Bill — Second Reading Instruction to Committee In Committee Third Reading 
Carter David: Overseas Investment Bill — Second Reading Instruction to Committee In Committee Third Reading 
[Volume:626;Page:21588] 
Hon DAVID CARTER (National) 
: 
 I rise to support the bill and to follow from Pansy Wong’s good contribution with another rationale before other members—particularly Dail Jones—speak as to why National supports this legislation now it has been amended. I refer to the process by which foreigners have the opportunity to buy land in New Zealand—[ 
Interruption 
]—and that for the benefit of Craig McNair is an absolute privilege. Having been lucky enough to invest in New Zealand they do so on the conditions imposed by New Zealand law and by the rules at the time of the Overseas Investment Commission. 
What I have found particularly galling are the many cases in which foreigners have been allowed to purchase in New Zealand under conditions imposed by the Overseas Investment Commission and then have completely thumbed their noses at the impositions imposed on them at the time they were given permission. I understand that this legislation significantly tightens the enforcement provisions. That is necessary because some foreign investors coming to this country have not been prepared to abide by the rules and the legislation that existed previously meant that it was difficult for New Zealand to do much about that. 
My second point is particularly in response to the very interesting commentary from Dail Jones when he argued that we do not need foreign investment and that there is suitable capital in New Zealand to provide all the investment capital that this country needs. I suggest to that man that he should get real. Capital in this world is in very short supply and New Zealand must develop by attracting capital. We know that New Zealanders have historically not been good savers and I do not see that in the foreseeable future they would ever be in a position to provide enough capital by themselves. In other words if we are to progress this economy foreign investment becomes essential. 
I refer now to some of the papers tabled before the Finance and Expenditure Committee which show that over the last 3 years the number of people interested in applying to invest in New Zealand has continually declined. That is something the Minister at present in the chair the Hon Dr Michael Cullen—the Minister of Finance—should take particular note of. He accepted my argument a minute ago that this country was in need of foreign capital. Therefore questions need to be asked as to why there was considerably more interest in foreign investment in New Zealand in 2002 than there was in 2003 while there was considerably more interest in 2003 than there was in the last year for which we have figures—2004. I suggest to Dr Cullen as the Minister of Finance that an issue associated with declining confidence in overseas investment is the legislative framework imposed by this country not only on foreign investors but also on New Zealand investors. I refer to issues such as the ratification of the Kyoto Protocol which we now find to be a miscalculation by Pete Hodgson of somewhere between $1 billion and $3 billion. 
Brian Connell 
: That’s good maths! 
Hon DAVID CARTER 
: The maths are fascinating in themselves but the really interesting thing is the risk that it now puts this economy in for future generations. I happened to see Pete Hodgson rambling on in a TV interview tonight saying that the reason the Government had ratified was for future generations of New Zealanders. He has now saddled New Zealand with such a huge international commitment that he is risking the very standard of living not only of future generations of New Zealanders but also of current New Zealanders. 
The other point I want to comment on is the fascinating provision that has been completely removed from the bill following its process through the select committee. It is the issue whereby the bill had suggested we should take the opportunity as part of the approval process for foreigners purchasing land of ensuring that public access is guaranteed by the creation of marginal strips. I have some sympathy for doing that. Provided it is upfront and explained to investors before they purchase in New Zealand it could become part of the rules that they fulfil for the privilege of being a landowner in this country.