Posted on 9-6-2004

Come In, Help Yourselves To NZ

The Government is conducting a behind closed doors review of the foreign
investment regime. Some of the recommendations from officials, principally
Treasury, to Dr Cullen, have been leaked to the media. It is blatantly
obvious that those recommendations are intended to remove any remaining
oversight of the foreign control of New Zealand’s economy. There is some
tightening up of requirements for buying "sensitive" land, specifically
coastal land, but this small mercy is greatly outweighed by the other
recommendations that abolish the Overseas Investment Commission (OIC),
raise the threshold for approval for company takeovers from $50 million to
$250 million, and remove requirements for approval of land sales of more
than $10m in value and/or less than five hectares in size (which means the
central business districts).

The Campaign Against Foreign Control of Aotearoa (CAFCA) has always said
that the OIC’s job could be done by a monkey with a rubber stamp. But we
do not support its abolition. On the contrary, we urge the Government to
give it real teeth and to strengthen the oversight regime. If these
recommendations become law, then hugely significant corporate takeovers
(such as Toll buying out Tranz Rail) will be subject to no more special
scrutiny than if they had been two New Zealand companies. Dr Cullen says
that the OIC has not turned down any company takeovers for years. This
proves our point exactly – that the current regime is far too feeble and
needs substantial strengthening, not abolition.

The annual Roger Award For The Worst Transnational Corporation proves the
case, year in and year out, for greater oversight of these corporate
miscreants. Under an open door policy, we can expect to host many more of
these foreign so-called investors (they actually cost New Zealand
considerably more than they contribute).

And the leaked officials’ recommendations prove what we’ve said all along
– that "free trade" agreements seriously restrict NZ’s sovereignty. The
paper cites the Government’s commitments under the General Agreement on
Trade in Services (GATS) and the Singapore/NZ Closer Economic Partnership
as inhibiting NZ’s ability to set restrictions on foreign investment. This
proves that NZ should get off the "free trade" rollercoaster before it’s
too late.

We urge the Government to hold a proper public inquiry into the foreign
investment regime, not a secret review with a pre-determined outcome. And
for that regime to be significantly strengthened, not weakened or
abolished. New Zealand is our home – we must reserve the right to pick and
choose who comes into it. And we must set the conditions as to how they
must behave when they’re here.

Murray Horton, Secretary/Organiser, CAFCA