WELLINGTON, Oct. 16 (Xinhua) -- The New Zealand government is focusing on reducing complexity and cutting unnecessary red tape in attracting foreign investment, Associate Finance Minister David Parker said here on Tuesday.
While launching the second chapter in its rewrite of the Overseas Investment Act by the Labor Party-led coalition government, it aims to ensure investments are consistent with New Zealand's national interest.
The first phase included the ban on foreign buyers acquiring existing homes, which takes effect on Oct. 22, as well as measures to encourage foreign investment in forestry.
"By preventing foreigners from buying existing homes, the government has completed the most significant reform of the act in more than a decade," Parker said.
"In the second phase of our reform, we will ensure New Zealand remains an attractive destination for beneficial, long-term foreign direct investment, while examining ways to ensure prospective foreign investments are consistent with New Zealand's national interest," he said.
"Many of our closest allies have the ability to block significant investments that are inconsistent with their national interests. New Zealand currently cannot," he added.
It is likely that a broad, but rarely used, discretion to decline approval for significant foreign investment, such as infrastructure assets with monopoly characteristics, will be introduced, Parker said.
He noted that legislation to implement the changes is expected to be completed by 2020 when the next elections are scheduled to take place.
