New Zealand moves to tighten foreign ownership rules amid Covid-19 pandemic
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The Government in New Zealand is speeding up changes to foreign investor rules as the economy recovers from the fallout of the global Covid-19 pandemic.
“We need to minimise the possibility that cornerstone businesses in our productive economy are sold in a way contrary to our national interest while the pandemic is causing the value of many businesses to fall,” Associate Finance Minister David Parker said.
The changes will fast-forward the introduction of a national interest test that was proposed last November.
The test will let ministers consider potential risks when deciding to grant consent to overseas investments. If it is found to be against the national interest of New Zealand, consent can be declined or conditions imposed.
In addition, the changes announced today include the temporary application of that test to any foreign investments, regardless of dollar value, that result in more than 25 per cent ownership.
Meanwhile, New Zealand reported zero new cases of the coronavirus on Wednesday, the second day in a row without any new cases and the fourth day since early last week.
Director-General of Health Ashley Bloomfield said it was encouraging news as the country prepares to ease many of its lockdown restrictions from midnight. Most businesses, including malls, retail stores and sit-down restaurants, will be able to reopen. Social distancing rules will remain in place and gatherings will be limited to 10 people.
“The sense of anticipation is both palpable and understandable,” Bloomfield said.
The lifting of restrictions will coincide with the release of the government’s annual budget on Thursday.
Prime Minister Jacinda Ardern said the country faced the most challenging economic conditions since the Great Depression because of the virus.
“New Zealand is about to enter a very tough winter,” she said. “But every winter eventually is followed by spring, and if we make the right choices we can get New Zealanders back to work and our economy moving quickly again.”
