US owners can keep hideaway

The controversial owners of a $5 million hideaway on D'Urville Island have proved they are of good enough character to keep the land, says the Overseas Investment Commission.

But commission chief executive Stephen Dawe said American millionaires Marc and Ivy Powell could still lose their land if disgruntled contractors could prove a case against them.

"From the angle of the letters of good character, the case is most certainly closed," he said.

"But if the court cases they seem to be involved in show there is any questionable behaviour, then we will have to take a look at things again."

The commission last year demanded the couple prove they had relevant business experience, financial commitment and good character to own the 2012ha Waitai Station in the Marlborough Sounds.

It warned that failing to provide the evidence was an offence and that it could seek a court order to force the property back on the market.

The couple's response was kept confidential until commission lawyers determined whether it met the requirements of the Overseas Investment Act. Mr Dawe confirmed it had.

"As required, the documents from their lawyer show they have everything we have asked for. That closes things as far as that is concerned."

But the commission was prepared to reopen the case if allegations the couple had not paid contractors and suppliers who worked on their property were proven.

"If that happened and could be shown to be true, then the good character provision would have to be looked at again," he said.

Nelson MP Nick Smith last year told Parliament that more than a dozen creditors had been "done over" by the couple, and the claims should be enough to reconsider their right to own land in New Zealand.

Mr Dawe said the cases were bogged down in procedural matters.

Mr Powell is a securities company chief executive and son-in-law of American billionaire Peter Lewis, who was discharged without conviction for importing marijuana during the America's Cup in 2000.

- NZPA