Accusations fly over new foreign investment bill

A former Overseas Investment Commission contractor has slammed the regime and accused investors and their agents of deliberately evading the rules.

And he told the finance and expenditure committee yesterday that the situation would not change under the proposed Overseas Investment Bill.

The bill abolishes the commission and transfers its functions to a unit within Land Information NZ.

But Mark Dunlop said the change would not solve the inherent conflict the regulator had in both being an adviser and facilitator to overseas investors and the body which gives consent and monitors them.

Mr Dunlop said his experience at the commission left him with the "distinct impression that there's widespread evasion of our overseas investment rules, particularly in relation to land purchase".

He said there should be comprehensive statistics on the level of overseas investment but the bill failed to address that fundamental issue.

He said many New Zealanders had "serious concerns" about foreign investment, particularly land sales and the right of foreigners to buy strategic business assets with no requirement that there be social and economic benefits.