WELLINGTON, Nov. 29 (Xinhua) -- The New Zealand government on Wednesday issued a directive letter that sets out the policy approach to overseas investment in rural land in order to make clear "it is a privilege to own or control New Zealand's sensitive assets".
The announcement raises the bar for overseas investments in sensitive land, with a new and much broader, rural land directive which applies to "all rural land larger than five hectares other than forestry," Minister for Land Information Eugenie Sage said in a statement.
The new directive, coming into force on Dec. 15, acknowledges the importance of jobs, new technology and business skills, increased exports, processing of primary products and oversight and participation of New Zealanders, Sage said.
"This new directive ensures authorized purchases will provide genuine benefits," said Associate Finance Minister David Parker.
"Too often we see investors buy a New Zealand farm, and then use existing systems, technology and management practices which don't substantially add anything new, or create additional value to our economy," Parker said, stressing the privilege to own or control New Zealand's sensitive assets.
This directive letter is the first step to strengthen the overseas investment regime, he said.
"We will be introducing legislation to ban foreign buyers of New Zealand's existing houses before Christmas, and other work to strengthen the Overseas Investment act is underway," Parker said.
