Overseas Investment (Exempt Investment from OECD Countries) Amendment Bill

Overseas Investment (Exempt Investment from OECD Countries) Amendment Bill

Member’s Bill

58—1

Explanatory note

General policy statement

It’s important that New Zealand is an attractive destination for investment which will, in turn, support greater levels of productivity, jobs and higher incomes.

This Bill will exempt investors from countries within the OECD from the need to receive Overseas Investment Office approval to invest here, except in respect of investments in residential land. These investments would still be subject to the call-in regime where national security interests are at stake.

This provision would streamline the process for investors from OECD countries to bring capital into New Zealand.

Membership of the OECD is restricted to countries committed to preserving and advancing democracy and market capitalism. Many OECD nations are already our allies on national security issues. They are, therefore, the least risky sources of investment and, in many cases, have large amounts of money ready to be invested.

Clause by clause analysis

Clause 1 is the Title clause.

Clause 2 is the commencement clause and provides for this Bill to come into force on the day after the date on which it receives the Royal assent.

Clause 3 identifies the Overseas Investment Act 2005 as the Act being amended by the Bill (the principal Act).

Clause 4 inserts new definitions of OECD country and OECD person into the principal Act.

Clause 5 amends section 82 of the principal Act (which relates to call-in transactions and overseas investments covered by the emergency notification regime) to clarify that overseas investment transactions by OECD persons that are exempt from the consent requirement remain subject to the call-in regime.

Clause 6 amends Schedule 3 of the principal Act to exempt overseas investment transactions that would result in an overseas investment by an OECD person from the requirement to obtain consent under section 10 of the principal Act; unless the transaction relates to the acquisition of an interest in residential land.