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The Greens say nearly $16 billion of overseas purchases of New Zealand assets will put more pressure on the current account deficit, house prices and farming practices.
The Overseas Investment Office, part of Land Information NZ, has approved sales worth $15.8 billion since it took over from the Overseas Investment Commission in August last year.
It approved 194 applications and refused four. In the commission's last full year of operation, 2004, it approved $6.9 billion in foreign sales and $13 billion the previous year.
Green Party co-leader Russel Norman said the 2005 Overseas Investment Act had "opened the door ever wider" to overseas ownership.
"It was based on the dogma that overseas investment in businesses is always good," Dr Norman said in a statement. "But, with a structural current account deficit being driven by payments to overseas owners of assets and debt, maybe it's time to question that dogma."
The current account deficit for the year ended June was $15.2 billion, $3.1 billion up on the previous year.
Dr Norman blamed the rise on a $1.9 billion increase in the investment income deficit from incomes earned by foreigners on their New Zealand investments and interest payments on foreign debt. "Yet the Overseas Investment Office has now approved another $16 billion worth of sales of NZ assets."
He said the sale of local companies meant profits were going offshore and the sale of land made houses more expensive.
Also, the price of farm land went up and pressure on farmers to get a return could see poor environmental management practices as farmers cut corners to save costs.
- NZPA
