Tuesday, March 6, 2018

The unworkable Overseas Investment Amendment Bill

The Government's byzantine and draconian anti-foreigner bill is working its way through submissions in select committee.  Here are a snippet of the problems it has created so far (courtesy of Act's "Free Press" email newsletter):

Treasury predictions
Treasury predicts the Overseas Investment office will go from processing 150 applications per year to 4700.  That's great for unemployment!
Electricity Companies
Roughly every 1,000 homes require a substation. There are a surprising number of these on residential land.  Electricity companies want to be exempt from it.

Telcos face basically the same problem as electricity companies. They need to have a cell tower in every suburb at least, and then there are data centres and future technology roll outs such as 5G. They want an industry exemption.

The Mega-Rich
Queenstown Mayor Jim Holt and local man Sir Eion Edgar pointed out just how much wealthy foreigners have contributed to conservation in the Otago region. In at least one case investing $100m and putting the land in trust for everybody to enjoy. They would like an exemption for properties over, say, $5m.

Retirement Villages
They want an exemption for operators of registered retirement villages.

Build-to-Rent Companies
They want to be given a Standing Consent for their type of business.

Mining Companies
Mining Companies are often required to buy houses near their sites who might be affected by noise and other pollution, in order to gain resource consent. They may find themselves unable to purchase in time to get consent. They want to be exempt.

Apartment Developers
Banks generally won’t lend to apartment developments, who often depend on pre-sales to a wide market of buyers, including foreign ones. Shrinking the retail market to domestic buyers only will stop many developments.  You guessed it, they’d like an exception for overseas buyers who buy off the plan.

Bunnings Warehouse
This Australian company is suggesting ASX listed companies with more than 500 employees should be exempt.
Labour is caught between a rock and two hard places.  The Rock is the CPTPP, which forbids this kind of nonsense. The first hard place is Labour and New Zealand First’s xenophobic campaigns against foreign investment. The second hard place is the impossibility of designing a law that will cut off some foreign investment based on a problem that doesn't exist without accidentally cutting off the New Zealand economy. 

The crude cynic in me actually hope this goes through unaltered.  I suspect the delayed deadline will be further delayed as Labour attempts to extricate itself from this mess.


Anonymous said...

Electricity Coys.

There are only about 200 Substations in NZ which are owned by the national grid.


They rent mast space. As technology progress’s the masts will disappear as they are doing in the UK.

Mega rich.

Fuck them. When a US billionaire golf course owner starts to threaten our elected Govt through the media it becomes a wake up call. The beneficiaries of billionaire largesse in Queenstown are not your average New Zealander just a cartel of businessmen. The people who service Queenstown are mainly kids on the OE trip.

Overseas owned buy to rent companies.

Become NZ buy to rent companies, just like the EU and most other countries

Mining Companies.

Introduce them to the NZ buy to rent companies

Apartment developers.

I’m sure that Apartments will be exempt like Singapore. The legislation is aimed at residential land.


These are usually on land zoned as industrial and will probably be exempt. having said that they also make big profits through land sales ie. Hawkes bay and Hamilton their property portfolio is eye watering and they use land banking to generate income.

I'm sure that flexibility and pragmatism will work it's way through the torturous process......don't panic Mr Mainwaring

Lord Egbut

Anonymous said...

Oh, forgot to mention a foreigner cannot own land in Vietnam and can only lease it in Brunei.........members of CPTPP I am led to believe.

Lord Egbut

Johno said...

Your "fuck them" comment sums you up, "Rich people play golf so fuck them". How eloquent.

Never mind that these flash courses drag in tourists who pay top dollar, eat in the best restaurants, stay in the best hotels and of course contribute the most to employment and the economy.

Instead, Egbut would love to have more smelly hippies coming here, renting $30/day freedom camper vans, spending no money and shitting all over the place. Because that's better as they aren't rich.

Never mind that these "rich pricks" are contributing massively to NZ - Julian Robertson donated $115m in art to Auckland - hardly gets mentioned - along with building two beautiful golf courses. The Ishii family's decades long ongoing investment into Millbrook continues to drag the tourist dollars. Ric Kayne turned a pine barren into a world class golf resort and is planning to build a public course next door.

But they're rich so fuck off!

The Veteran said...

Nick K ... uptick2. Johno ... uptick2. Egbut ...

Anonymous said...

Veteran...An uptick surely.... All I did was demolish Nick K's spurious arguments and I notice Johno was quick off the mark with the insults and and no attempt to refute my arguments.

Johno.....Speculating on my wealth and and attitude to wealth is not helpful. Relying on tourism and handouts from the super wealthy puts us in the situation as a supplicant.

My neighbour (Zillionaire) who runs an equestrian centre and has donated to many projects around town thought he had the right to demand from the Marie that the Bastille day firework display be cancelled and he instead would fund a laser display. the Marie, quite rightly told him to fuck off. I'm sure that if the situation existed in Queenstown the firework display would be cancelled. We are becoming a nation of forelock tuggers in thrall to wealth and celebrities and we are losing sight of what is important.

Lord Egbut

Johno said...

Egbut, Accepting and relying on are not the same and you are extremely dishonest to represent that they are.

You also assert that I speculated on your wealth. I did no such thing. I also didn't speculate on your attitude to wealth. You spelt it out quite clearly and no speculation required: "Mega Rich. Fuck them". You've shown your true nature quite clearly.

It seems you either can't or won't read for comprehension, so there's no point bothering to comment further on your disjointed, errant drivel.

The Veteran said...

Egbut ... (and apologies to Nick K for threadjacking). You mentioned fireworks. The bit of socialism that remains embedded in my brain (as a compassionate conservative) has me convinced that the sale of fireworks to the general public should be banned ... Nanny State notwithstanding. The cost of injury to humans and animals is just far too high. No issues with public displays orchestrated by professionals.

Adolf Fiinkensein said...


There have been two recent cases of severe injury here, resulting from incidents at public fireworks displays.

Anonymous said...

Pretender.... then you would not want be here. Bastille day at Carcassonne Pop. 46,000 thousand.. I escaped unscathed and will not bother going to other displays....this is the ultimate......... https://www.youtube.com/watch?v=Wq0t3c9uRRA

Lord Egbut of Bunbury