ACT leader lays into Greens' "xenophobic" bill to restrict land sales to foreigners
"To make it even worse, a person not even born in this country seems to be hell bent on destroying the NZ economy."
Featured commentA private member's bill that would prevent foreign companies owning farmland of more than five hectares in size is "xenophobic", ACT leader John Banks says.
The Overseas Investment (Restriction on Foreign Ownership of Land) Amendment Bill was introduced to the house yesterday as a private member's bill by Green Party co-leader Russel Norman.
The Greens say the legislation would stop the sale of "senstive land" like the Crafar Farms to Shanghai Pengxin.
During the legislation's first reading, Mr Banks said, "If we wish to prosper, we need foreign investment. Foreign investment brings capital, know-how, and jobs.
"We know this because up until approximately 1000 years ago there was no foreign investment in New Zealand, and there were no jobs, either.
"The history of New Zealand is a history of foreign investment."
Of 55 countries measured by the OECD, New Zealand is the fifth most restrictive on foreign invesment, Mr Banks said.
"Countries more open to foreign investment get more foreign investment – and that those economies grow faster," the ACT leader told Parliament.
"Take the example of James Cameron. The best film director in the world will soon live within an hour of this parliament.
"He’s bringing his capital, his know how, and perhaps jobs to New Zealand."
Mr Cameron has bought a 250ha dairy farm in the Wairarapa plus two nearby properties for a total of around 1000ha of land.
Earlier, when the Crafar sale controversy was at its height, Federated Farmers president Bruce Wills told NBR ONLINE that even the current law could spook foreign investors.
Some would look at the applications, appeals and counter-appeals Shanghai Pengxin was being put through and decide it was easier to put their money elsewhere.
Mr Wills said his first preference would have been for the Crafar farms to have been broken up, and sold in smaller lots to locals. But the fact of the matter was that New Zealanders had been spenders, not savers.
To get out from under $47 billion in farm debt, foreign investment was needed.
Finance Minister said China invested relatively little in New Zealand, given it was our second-largest trading partner.
Our largest, Australia, had invested around $52 billion by the end of last year. China had invested under $2 billion.
UPDATE: The Green’s Party's Overseas Investment (Restriction on Foreign Ownership of Land) Amendment Bill was defeated at its first reading:
Ayes: 59 Labour 34; Green Party 14; New Zealand First 8; Maori Party 2; Mana 1.
Noes: 61 National 59; ACT 1; United Future 1.
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Comments and questions53
To make it even worse, a person not even born in this country seems to be hell bent on destroying the NZ economy, if him and his ilk can get away with it.
The entire point of invesment is to be able to take out more than you put in, so after enough Banks-type foreign investment NZ will inevitably be catastrophically worse off... But I wouldn't expect ACT or Nat sympathisers to understand that...
And of course when New Zealand firms invest overseas we make absolutely sure we take out more than we put in leaving their countries catastrophically worse off...I wouldn't expect Labour or Greens sympathisers to understand that.
what a brain
What a reply.
Fatuous and stunning ignorance. The point of an investment is to create something that is better and more productive than previously existed.
Why do you comment on things you have zero understanding about - like the whole of human history and progress since the renaissance?
This comment is even more xenophobic,so people that dont live here can buy land,but people that choose to live here and contribute to the economy should have no say?
If only the comments had come from a MP with better ethics and morals than Banks - they would have more meaning
Get a life Mr and join the planet.
Spoken like a true Winston first supporter.
Remember when he said "NO N-O"
And back further the scampi issue.
I cant believe that a bunch of un-elected buffoons in the real world can attempt to wield so much power,on a trading nation like NZ.
"Foreign Investment" is a euphemism for foreign ownership and control. A little is tolerable, possibly even good in the event that jobs are created. Too much and we stop being a sovereign nation.
Yes and of course when New Zealand invests overseas its alright.
I believe we need Foreign investment to help the economy, but that investment should be in the productive/manufacturing sector which will create jobs. Ownership of all our land including commercial and industrial land not just farmland should be retained in NZ citizens ownership, Maori incorporations etc to actually support our country so that some profits and tax is retained in NZ. Foreign investors should be able to lease the land and own the buildings, but not the land itself. The whole point of investing is to make a profit so naturally that means the profit goes offshore to the foreign investors. At least if the investment is adding to the workforce, we gain some benefit, where as in the case of the Crafar farms, Shanghai Pengxin takes the profit and any capital gain to the land with landcorp doing the management and low paid labour component, it is the wrong way around for the long term benefit of NZ.
Im not saying that hes wrong but that is the worst set of points i have ever seen made in an argument. He clearly has no knowledge of history or economics. Of course countries that allow more foreign investment have more investment. And im pretty sure the last 100 years of economic growth in nz had as much or more to do with the industrial revolution and european settlement as it does foreign investment. He could have at least come up with some figures. No wonder no one takes banks seriously...
Im not saying that hes wrong but that is the worst set of points i have ever seen made in an argument. He clearly has no knowledge of history or economics. Of course countries that allow more foreign investment have more investment. And im pretty sure the last 100 years of economic growth in nz had as much or more to do with the industrial revolution and european settlement as it does foreign investment. He could have at least come up with some figures. No wonder no one takes banks seriously...
You are kidding me!!
Where do you think NZ and Aus. got the initial capital to invest in roads, schools, police, army et al?
Given that Aus. and NZ initial Euro. settlement were , in the main, the flotsam and jetsam from the UK. (Peeps that Europe were very pleased to see the the back of), it is stretching the imagination that the "necessary" was raised locally.
The fact is, in the beginning NZ had to borrow money and pay for goods before the ship left Europe.
Actually, you are wrong. Mostly they dug the 'capital' up out of the ground with picks and shovels. It is why they came here, generally speaking.
And sent a lot of it back to the mother-land of course.
Read some history you biggoted ignoramus.
No you are wrong.How would you have dug the capital out of the ground without the investment needed to buy the drilling equipment and open the export market to sell your minerals too.
You do realize of course New Zealand is in exactly the same business overseas as foreign investors are here ie:Expoiting local respurces and sending capital back to New Zealand.How do you think we're able to pay the Maori unemployment benefits.
Read the business section you uneducated fool.
Thank you, you are of course correct. Especially re "uneducated fool."
cheers
John did well, but one point I would like to see discussed is, What effect this dopey bill, if passed, would have on rural bankers and their clients.
Surely if passed it would reduce the size of the market for farms? and as a consequence the farms value? and as a consequence the farmers equity? and as a consequence the bankers collateral? mmmmmmmmm
I wonder if there is any chance the Aussies would take Norman back? "No chance" I hear the Aussie say.
I thought as much! Bugger!
James Cameron is as far as I'm concerned, fit for purpose and most welcome here in Aotearoa, especially with the talent and skills that he brings with his globally renowned reputation in the Film Industry.
I enjoyed watching on Discovery Channel, his journey in search and locating the Titanic.
I would however, give that ( forgetful, obsfucatious, obsolete, passed it's used by date, humbug), Bank[s] Deposit Slip away to any foreign shore that will take him.
I'm not against foreign investment, just against sales of our farms to the government of the Republic of China - We are not their feeding ground for their overpopulated ugly nation - Paula Bennett should offer the Chinese as a koha (donation) free contraception to the Chinese.
Ah, but they don't breed the hundreds of thousands of pathetic useless irresponsible no hopers and scums of societies like you lot do.
And they certainly don't borrow, live off other people's savings and then, deny responsibility and accountability for their lives like the miserable lot you are.
More Kahui twins, solo mums, social welfare?
Stupid boy
http://www.cbsnews.com/2100-202_162-6346584.html
Sadly, indicative of the moral decay now setting in after all the social and justice system engineering and rampant social welfarism in the last 15 years.
That's exactly how Russell and his mates feel behind closed doors. It's a stance based on bigotry and racism more than anything else
Talk to Fonterra and they will tell you they have stricter dairying regulations on their farms in China than they do in NZ. The Chinese regulations are becoming tighter yet. Some of you say James Cameron will add to the economy and China will take away. Perhaps China will actually add to saving our most precious resource: our environment. Lets get this message to Norman and his extremist Green party.
If only we could wind the clock back to FPP and 80 odd members of parliament, then we wouldn't have to put up with this absurd nonsense. Sigh.
Banks likes the sound of his own voice way too much.
Most foreign investment, so far, has been bad for this country. Most have just come and removed local jobs, while few have created jobs.
They have got there controls of key infrastructure assets, run them into the ground, strips them of cash and taken it with them. It would be all right if the government regulated fair prices, but politicians are far too weak for that; including you Mr Banks.
They dont reinvest, and the taxpayer ends up footing the bill.
Mr Banks, its time to wake up & smell the roses. Politicians are suppose to look after the wider long term interests of the nation, rather than that of a select few.
And what have you done to make NZ less dependent on foreign investments?
Have you stopped buying foreign goods and services?
Have you stopped borrowing?
Did you vote Labour or National?
Everything we take for granted in New Zealand today that advances and enriches our lives is due to foreign investment.Medical advances,the latest technology,consumer products,money to develop schools,hospitals and roads was and still is the result of foreign investment.New Zealand would be a backward third world state if we had none.
Banks is absolutely right.We should not restrict foreign investment.
Most foreign investment so far has been excellent for this country and without it we'd be a struggling backward socialist state.
Foreign investment has created jobs,improved our infrastructure by investing in new plant and machinery by making the industry more efficient.
Foreign invesent in New Zealand has made our country richer and has put more money in our pockets enabling us to enjoy more fulfilling lives.
Without foreign investment where would we get the money to update our infrastructure.The tax payer would be far worse off and it would be a disaster.
Utterly and profoundly ignorant drivel. God help NZ with this mentality loose in the electorate.
Raise minimum wage and then people may have some spare cash to start saving mr banks.
Not sure there was much foreign investment of any kind 1000 years ago. Maybe the odd bit of plundering of national treasuries by force. Oh, wait...
right. Who does he predict will now colonise this country?
Should Fonterra stop "colonising" China (or at least investing hundreds of millions in partnerships with Chinese companies that control land)? Trade and investment are a two-way street.
Of course in China, foreigners can't own land - pretty xenophobic of them...
Every major corporation and country in the world is heavily invested in China one way or another creating millions of jobs and a better standard of living for the Chinese.You would not be able to compete globally otherwise.
NZ cant own land in China, whats 'fair business' about that
NZers can't own land in China but Fonterra can and has invested hundreds of millions in farming there.
We should work with the Chinese to open up further, not introduce Communist-style controls on land here.
It's the golden rule. Those with the gold, rule.
It is a shame that the Greens are opposed to overseas investment but support NZ citizenship for the likes of Dotcom and Yong Ming Yan !!
As well as fast tracking imports on to their Parliamentary" Lists".WTF.
Can the Greens explain why it was such a great thing for the Kiwi Crafars* to own lots of farmland, but not foreign investors who get tight environmental controls put on them by the OIO?
* actually tenants on their own land controlled by an Aussie bank, but never mind
With Fonterra investing heavily in China, and China investing in farming here, there is a real danger here that the Chinese will develop a taste for dairy products, opening up a new, billion-person market for our largest exporter.
Let's stop the madness now.
Even worse, the grossly ignorant Left might then become even slightly financially literate.
Alan? you say "the grossly ignorant Left might then become even slightly financially literate"
Yeah right and pigs might fly.
As long as NZ as a country spends more money than it earns from the rest of the world then there is only two optionst to finance this shortfall and that is to borrow money from the rest of the world or sell assets to foreigners. This is a simple basic fact that applies to conutries, business and households. There is also the issue of property rights here. Why should farmers be restricted who they can sell their assets to when us city dwellers can sell our houses to the hghest bidder whatever their nationality? If we believe NZers should own all of our farmland then the government (that is us) should buy these farms at full market value. Oh I forgot we would need to borrow money from foreigners to do this!!!
I truly and utterly despair for our country when a vote like this comes within one vote of being passed into law. God help us all after the next election.
To make things more in balance,its a foreigner who has moved to keep foreigners out.A case of we are all right,in our party we have our foreign Quota,ummm most of us.
Arrived a bit late to this due to billable work. Doing stuff which you could call my core business. My economic backbone. Collecting the benefits of my productivity.
Why would I sell the assets which me to perform my core business? (Which as everyone knows in NZ is farming).
Besides, NZ has already benefited from Cameron bringing his skills, expertise and jobs as a film maker. He's not a farmer. While it's nice to have him in our midst, how does the NZ economy benefit from having him own a bit of it?
You are enviousof the foreigners and their mega bucks.You dont have the business acumen as they do. Get over it and do a good job of cleaning the public toilets.