The Government review of the overseas investment regime was today welcomed by Chapman Tripp.
“New Zealanders want to be assured that sensitive land and assets with cultural, historic or strategic significance will remain in New Zealand ownership and that is an important function of our regulatory framework,” said Chapman Tripp Partner Nick Wells.
“But overseas capital is a major source of economic growth and we need to be certain, particularly in the current business environment, that we are not putting up unnecessary barriers to foreign investments which can strengthen the economy.
“We are far from being able to say that now”, he said.
“Chapman Tripp’s experience is that trivial or minor transactions which were never intended to be caught by the Overseas Investment Act are being caught due to technical drafting issues with the legislation.
“This ‘red tape’ is creating significant additional costs and delays as well as stretching the resources of the Overseas Investment Office. As a result, clients proposing a transaction that requires consent are often surprised by the level of detail and effort needed to get the application over the line.”
Chapman Tripp has given some thought to the sorts of legislative changes which are needed to remove this clutter from the Overseas Investment Act 2005. Our Counsel on this issue is available by clicking here.