Foreign Investment Criteria Outlined

Press, Volume CVI, Issue 31111, 14 July 1966, Page 11

Foreign Investment Criteria Outlined

(New Zealand Press Association) WELLINGTON, July 13. The Government policy was to attract and encourage worth-while overseas investment that made available research, design and technological developments, the Minister of Finance (Mr Lake) said in Parliament.

Mr Lake said this was particularly so where such investment was associated with a world-while New Zealand participation in the ownership and management of the industries concerned. The Minister was answering a question by Mr M. A. Connelly (Opp., Riccarton) whether Government policy enabled overseas interests to invest in New Zealand financial institutions similar to that of the First National City Bank of New York which was reported to be taking up a 50 per cent equity in Walton’s Credit Corporation of Australia. Mr Lake said consent to the taking up of a 50 per cent equity in a New Zealand financial institution by overseas interests would require the consent of the Minister of Finance. Mr Lake said the Government was very conscious of the need to preserve the general freedom of New Zealand residents to employ or dispose of their property as they thought fit. It remained the Government’s intention to intervene only where it appeared clear that a proposed take-over would be against the public interest. In answer to a further ques-

tion, Mr Lake said the Government preferred industries to remain under New Zealand control but it was not always possible for this to be done. Mr Connelly asked how long the Minister believed New Zealand could continue selling farm land to overseas interests.

Mr Lake replied: “New Zealand has gone on for over a hundred years as a developing country. In that time many New Zealanders have established many businesses and they have also had access to overseas know-how.”