Government to speed up processing of overseas investment applications, OIO fee hike will lift staff numbers

Thursday 5th May 2016

The government has flagged plans to speed up the overseas investment regime, hiking application fees to allow the Overseas Investment Office to take on more staff and clarifying exemption rules.

The changes are the result of a review that started last year and will mean the OIO will be able to assess applications faster while overseas investors will have more certainty, Finance Minister Bill English and Minister for Land Information Louise Upston said in a statement. OIO fees are to increase by between 8.7 percent and 166 percent in mid-2016, allowing the office to increase its staff by 25 percent.

Changes will also be made to the policy that underpins the overseas investment regime before the end of the year, once the regulatory process has been completed, they said.

China's Shanghai Pengxin has been among offshore investors who have criticised the current rules, which it blamed for its decision to abandon an attempt to buy farm land in Northland last year. It also criticised the OIO Act after the government rejected its application to buy the Lochinver sheep and beef station near Taupo, saying there was "a great deal of confusion in the market" about aspects of the law.

However, the OIO has also faced criticism that its pre-approval checks are too lax after it signed off on the sale of a Taranaki farm in 2014 to two Argentine brothers who had convictions overseas for polluting a river.

English said the government welcomed "beneficial overseas investment and is committed to ensuring the efficient operation – and continual improvement – of the system".

“We’ve heard concerns from investors that the rationale for screening certain investment types is unclear and decisions by the OIO are taking too long," he said. "The introduction of targeted exemptions will not only clarify guidelines, but will also reduce costs for affected investors, and allow the OIO to focus its efforts on the most sensitive applications, as well as ensuring applicants are meeting their on-going obligations."

BusinessDesk.co.nz

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