Overseas investment review due out

Prime Minister John Key. Photo / Mark Mitchell

A review of the Overseas Investment Act will be released later this week, Prime Minister John Key says.

Last year the Government announced the vast majority of overseas investment applications would no longer need ministerial approval.

The change was the first part of a two-part review, with the second part focusing on changes to the Overseas Investment Act itself.

Mr Key said Finance Minister Bill English was likely to announce the results of that this week.

Asked if the review would appease fears about Chinese ownership in New Zealand, Mr Key said he did not want to pre-empt the announcement.

Those fears were sparked by recent Chinese interest in purchasing Crafar farms and investment by Chinese Bright Dairy and Food Co Ltd in Canterbury milk processor Synlait Milk Ltd. Bright Dairy announced today it was taking an $82 million stake in Synlait.

Mr Key said the Act had far-reaching provisions already.

"There are quite a number of criteria that the Overseas Investment Office could turn to, and indeed have to consider, when they consider an application."

- NZPA