 |
FOREIGN INVESTMENT AND STATE ASSETS
INTRODUCTION
New Zealand continues to become ever more dependent upon foreign capital and foreign credit. New Zealand's net foreign debt of over 59% of GDP is higher than that of our trading partners despite asset sales and takeovers.
Thirty-nine state assets were sold under the pretext of reducing this debt - for a total of $19 billion. Now we are involved in the process of buying some of them back.
The vast majority of the profits of foreign companies are paid out to their overseas owners. Our land continues to be sold. Seventy percent of our forestry is in foreign ownership.
New Zealand First is not opposed to foreign investment but the line has been clearly drawn; such investment must stand the test of being to New Zealand's advantage.New Zealand First has also stood firm against state asset sales to majority foreign ownership to protect the national interest. The cost to our party was considerable, but our principles are not for sale.
PLANS
New Zealand First's foreign investment strategy:
- be based upon the premise that such investment must be in the interests of New Zealand. The private interest of foreign shareholders is not our concern, the public interest of New Zealanders is;
- establish priorities for foreign investment in New Zealand that require such investment to bring new technology and lead to employment and export growth;
- promote the creation of an internal investment/savings base to provide a clear alternative to foreign credit for the development of New Zealand infrastructure and business, and develop the superannuation fund as one means of achieving this;
- ensure that the government has first right-of-refusal on the resale of any former state assets, in particular 'infrastructure' assets;
- direct the guardians of the New Zealand Superannuation Fund to prioritise the purchasing of shares in New Zealand infrastructure companies, particularly when they are being sold by overseas investors, with the aim of building a solid base of New Zealand ownership of these assets. This shall be conducted at arms length, with no ministerial interference, and at the discretion of the guardians so as not to distort the market;
- require the fund managers to invest in New Zealand infrastructure and growth industries including making funds available at competitive interest rates to Land Transport New Zealand, New Zealand Railways Corporation, and local government for capital projects;
- stop state asset sales. If considered appropriate, and only where necessary, public assets currently in the hands of the Government will be commercially managed in the public interest and ownership;
- limit foreign investment in strategic assets to 24.9%;
- review the process of local government sales of infrastructure assets;
- strike a balance between preserving the nation's infrastructure in New Zealand hands and ensuring that New Zealand enterprises can enter partnerships with international agencies for their mutual benefit;
- build on the 1997 New Zealand First initiative to drastically reduce the sales of land to foreigners each year; and,
- establish a new organisation, the Investment Commission, independent of the Reserve Bank, to take over the functions of the old Overseas Investment Commission (OIC) and some of the tasks of the current Commerce Commission.
|
|
