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Act Repealed Latest version as at 27 March 1998 (as enacted) | 1998 No 11

Overseas Investment Amendment Act 1998

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Act Repealed Latest version as at 27 March 1998 (as enacted) | 1998 No 11

Overseas Investment Amendment Act 1998

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Overseas Investment Amendment Act 1998

Public Act
  
1998 No 11
Date of assent
  
27 March 1998
 

Contents

An Act to amend the Overseas Investment Act 1973

BE IT ENACTED by the Parliament of New Zealand as follows:

1 Short Title and commencement

(1)

This Act may be cited as the Overseas Investment Amendment Act 1998, and is part of the Overseas Investment Act 1973 (“the principal Act”).

(2)

This Act comes into force on a date to be appointed by the Governor-General by Order in Council.

2 Interpretation

(1)

Section 2(1) of the principal Act is amended by inserting, in their appropriate alphabetical order, the following definitions:

“‘Estate or interest in farm land’ does not include an estate or interest the term or the unexpired term of which is less than 21 years (including any rights of renewal):

“‘Estate or interest in land’ does not include—

“(i)

A forestry right within the meaning of section 2 of the Forestry Rights Registration Act 1983; or

“(ii)

A right to harvest a crop of trees on land granted under a contract or arrangement:

“‘Farm land’ means land used exclusively or principally for agricultural, horticultural, or pastoral purposes, or for the keeping of bees, poultry, or livestock:”.

(2)

Section 2 of the principal Act is amended by inserting, after subsection (2), the following subsection:

“(2a)

Despite subsection (2), an individual is not ordinarily resident in New Zealand if the person is not entitled, under the Immigration Act 1987, to be in New Zealand indefinitely.”

3 Regulations

(1)

Section 14(a) of the principal Act (as substituted by section 7 of the Overseas Investment Amendment Act 1995) is amended by repealing subparagraph (ii).

(2)

Section 14(i) of the principal Act (as so substituted) is amended by omitting the expression “section 14a(2)(d)”, and substituting the expression “section 14d(2)(f) or section 14e(c)”.

(3)

Section 14 of the principal Act (as so substituted) is amended by inserting, after paragraph (i), the following paragraph:

“(ia)

Prescribing, for the purposes of section 14c(2), procedures for offering for sale or acquisition on the open market to persons who are not overseas persons—

“(i)

Farm land or estates or interests in farm land; or

“(ii)

Securities or rights or interests in securities of a company or body corporate to which an overseas investment involving farm land relates:”.

4 New sections substituted

The principal Act is amended by repealing section 14a (as inserted by section 8 of the Overseas Investment Amendment Act 1995), and substituting the following sections:

“14a Criteria for consent to transactions not involving land

“(1)

This section applies to an application for the approval, consent, or permission of the Minister to an overseas person undertaking an overseas investment, other than an application that relates to the ownership or acquisition of, or control over,—

“(a)

Land or an estate or interest in land in New Zealand; or

“(b)

Securities or rights or interests in securities of a company or body corporate that owns or controls directly or indirectly any land or an estate or interest in land in New Zealand.

“(2)

The Minister must grant the approval, consent, or permission if satisfied that—

“(a)

The overseas person has, or, if the overseas person is not an individual, the individuals exercising control over the overseas person have, business experience and acumen relevant to that overseas investment; and

“(b)

The overseas person has demonstrated financial commitment to the overseas investment; and

“(c)

Every person who will have not less than a 25% beneficial interest in the overseas investment is, or, if the overseas person is not an individual, each individual exercising control over the overseas person is, of good character and not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

“(3)

To avoid any doubt, the Minister must not grant approval, consent, or permission unless the Minister is satisfied as to the matters in subsection (2).

“(4)

Subsection (2)(c) is subject to section 14f.

“14b Criteria for consent to transactions involving land

“(1)

This section applies to an application for the approval, consent, or permission of the Minister and the Minister of Lands to an overseas person undertaking an overseas investment that relates to the ownership or acquisition of, or control over,—

“(a)

Land or an estate or interest in land in New Zealand; or

“(b)

Securities or rights or interests in securities of a company or body corporate that owns or controls directly or indirectly any land or an estate or interest in land in New Zealand.

“(2)

The Minister and the Minister of Lands must grant the approval, consent, or permission if satisfied that—

“(a)

The overseas person has, or, if the overseas person is not an individual, the individuals exercising control over the overseas person have, business experience and acumen relevant to that overseas investment; and

“(b)

The overseas person has demonstrated financial commitment to the overseas investment; and

“(c)

Every person who will have not less than a 25% beneficial interest in the overseas investment is, or, if the overseas person is not an individual, each individual exercising control over the overseas person is, of good character and not an individual of the kind referred to in section 7(1) of the Immigration Act 1987; and

“(d)

The overseas investment would be in the national interest.

“(3)

To avoid any doubt, the Minister and the Minister of Lands must not grant approval, consent, or permission unless they are satisfied as to the matters in subsection (2).

“(4)

Subsection (2)(c) is subject to section 14f.

“14c No approval to overseas investment in farm land unless land offered for sale on open market

“(1)

This section applies to an overseas investment involving the ownership or acquisition of, or control over,—

“(a)

Farm land or an estate or interest in farm land in New Zealand; or

“(b)

Securities or rights or interests in securities of a company or body corporate that owns or controls directly or indirectly farm land or an estate or interest in farm land in New Zealand.

“(2)

No approval, consent, or permission may be granted to an overseas person to undertake an overseas investment to which this section applies unless the land or the estate or interest in land or the securities or rights or interests in securities of the company or body corporate to which the overseas investment relates have, in accordance with a procedure prescribed by regulations made under this Act, been offered for sale or acquisition on the open market to persons who are not overseas persons.

“(3)

Subsection (2) does not apply to the undertaking by an overseas person of an overseas investment if—

“(a)

The Minister and the Minister of Lands consider that, by reason of circumstances relating to the particular overseas investment, the land or the estate or interest in land or the securities or rights or interests in securities of the company or body corporate to which the overseas investment relates, need not be offered for sale or acquisition on the open market to persons who are not overseas persons; or

“(b)

The overseas person belongs to a class of overseas persons that is exempted from the application of that subsection by the Minister and the Minister of Lands by notice in the Gazette; or

“(c)

The overseas investment belongs to a class of transactions that is exempted from the application of that subsection by the Minister and the Minister of Lands by notice in the Gazette.

“14d Matters to be taken into account in determining whether overseas investment in farm land in national interest

“(1)

In determining whether, for the purposes of section 14b(2)(d), an overseas investment involving farm land is in the national interest, the Minister and the Minister of Lands must consider whether the overseas investment will, or is likely to, result in substantial and identifiable benefits to New Zealand or to a region, district, locality, or other part of New Zealand.

“(2)

For the purposes of subsection (1), the Minister and the Minister of Lands must have regard only to the following matters:

“(a)

Whether experimental or research work will be carried out on the land:

“(b)

The proposed use of the land by the applicant:

“(c)

If the overseas person is an individual, whether the overseas person intends to farm the land for his or her own use and benefit and is capable of doing so:

“(d)

Whether the overseas investment will, or is likely to, result in—

“(i)

The creation of new job opportunities in New Zealand or the retention of existing jobs in New Zealand that would or might otherwise be lost; or

“(ii)

The introduction into New Zealand of new technology or business skills; or

“(iii)

The development of new export markets or increased export market access for New Zealand exporters; or

“(iv)

Added market competition, greater efficiency or productivity, or enhanced domestic services, in New Zealand; or

“(v)

The introduction into New Zealand of additional investment for development purposes; or

“(vi)

Increased processing in New Zealand of New Zealand’s primary products:

“(e)

Whether the overseas person or, if the overseas person is not an individual, any overseas person who exercises control over the overseas person, intends to reside permanently in New Zealand:

“(f)

Such other matters as may be prescribed:

“(g)

Such other matters as the Minister and the Minister of Lands, having regard to the circumstances of the particular overseas investment, think fit.

“14e Matters to be taken into account in determining whether overseas investment in land, other than farm land, in national interest

In determining whether, for the purposes of section 14b(2)(d), an overseas investment involving land, other than farm land, is in the national interest, the Minister and the Minister of Lands must have regard only to the following matters:

“(a)

Whether the overseas investment will, or is likely to, result in—

“(i)

The creation of new job opportunities in New Zealand or the retention of existing jobs in New Zealand that would or might otherwise be lost; or

“(ii)

The introduction into New Zealand of new technology or business skills; or

“(iii)

The development of new export markets or increased export market access for New Zealand exporters; or

“(iv)

Added market competition, greater efficiency or productivity, or enhanced domestic services, in New Zealand; or

“(v)

The introduction into New Zealand of additional investment for development purposes; or

“(vi)

Increased processing in New Zealand of New Zealand’s primary products:

“(b)

Whether the overseas person or, if the overseas person is not an individual, any overseas person who exercises control over the overseas person, intends to reside permanently in New Zealand:

“(c)

Such other matters as may be prescribed:

“(d)

Such other matters as the Minister and the Minister of Lands, having regard to the circumstances of the particular overseas investment, think fit.

“14f Status of persons subject to special direction under section 12(2) of Immigration Act 1987

For the purposes of sections 14a(2)(c) and 14b(2)(c), an individual is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987 if the Minister of Immigration has, by special direction under section 12(2) of that Act, exempted the individual from the requirement to hold a permit under section 7 of that Act.”

5 Schedule amended

(1)

Part I of the Schedule of the principal Act (as enacted by section 14 of the Overseas Investment Amendment Act 1995) is amended by omitting from the item Foreshore, lakes, and reserves, paragraphs (a) and (b) and the words that precede those paragraphs, and substituting the following items:

“Any land that, together with any associated land, exceeds 0.2 hectares in area and that includes or adjoins the foreshore; or

“Any land that, together with any associated land, exceeds 0.4 hectares in area and that includes or adjoins—

“(a)

Any lake the bed of which exceeds 8 hectares in area; or”.

(2)

Part I of the Schedule of the principal Act (as so enacted) is amended by omitting from the item Foreshore, lakes, and reserves, the expression “(c)”, and substituting the expression “(b)”·

(3)

The Schedule of the principal Act (as so enacted) is amended by repealing Part III, and substituting the following Part:

Part “Part III

Other land

In this Part,—

‘Land’ does not include land specified in Part I or Part II:

‘Land value’ means the land value of the land determined in accordance with the Valuation of Land Act 1951 and shown in the district valuation roll for the district in which the land is situated. Any parcel of land (including any adjacent or contiguous parcel of land) the land value of which exceeds $10,000,000 or such greater amount as may, from time to time, be prescribed.

Any parcel of land (including any adjacent or contiguous parcel of land) that is, or any estate or interest in which is, owned or controlled directly or indirectly by a company or body corporate the land value of which exceeds $10,000,000 or such greater amount as may, from time to time, be prescribed.”

6 Amendment to Citizenship Act 1977

Section 23 of the Citizenship Act 1977 is amended by repealing paragraph (c), and substituting the following paragraph:

“(c)

Entitle an alien to acquire property without any approval, consent, or permission required under the Overseas Investment Act 1973 or regulations made under that Act:”.

7 Repeals

The following enactments are repealed:

(a)

Section 8 of the Forestry Rights Registration Act 1983:

(b)

Section 4 of the Forestry Rights Registration Amendment Act 1994:

(c)

Section 8 of the Overseas Investment Amendment Act 1995.

8 Transitional provision

The principal Act and any regulations made under that Act, as in force immediately before the commencement of this Act, continue in force and apply to every contract or arrangement entered into, and to every act or thing done, before the commencement of this Act.

This Act is administered by the Reserve Bank of New Zealand.
Act Repealed Latest version as at 27 March 1998 (as enacted)

Overseas Investment Amendment Act 1998

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