Time to stop sell-off of NZ land to the world's wealthy
Rod Donald
27.09.2004
COMMENT
Shania Twain and her husband are probably very nice people and I would be more than happy if they made New Zealand their home. But I am concerned that they have been given Overseas Investment Commission approval to buy two high country stations near Wanaka.
Under the headline "Benefits all round in Twain deal", a Herald editorial said the purchase proposal "served the interests of New Zealanders" and "could stand as a blueprint for future land sales to foreigners". I sincerely hope not.
While the overall requirements and the conservation caveats that have been placed on the sale are good, it is highly likely that land above 1100m would have been retired as part of any tenure review.
I also applaud the public-access conditions of the sale, but it should be noted the proposed alpine tramping track is a second-best option. An easier valley-floor route would have been a more appropriate condition of sale.
I am not alone in this view. The Wanaka Community Board chairman, Bill Gordon, said he was disappointed the community had missed out on a multi-use public access route; Wakatipu Trails Trust chairman John Wilson said the trust wanted to secure a valley floor route using the existing private farm track because it could give year-round access; and Lake Wanaka Cycling Club president Doug Hamilton said the sale was disappointing for mountain bikers, who had been lobbying for more access to the valley floor in addition to the annual bike race.
It should also be noted that the alpine track and huts and camping facilities were only offered by Twain after the commission had indicated it was inclined to turn down her purchase application.
The protracted negotiations between the commission and Twain highlight, on the one hand, the greater scrutiny that the commission is undertaking as a result of widespread unease over the sale of properties like Young Nick's Head and, on the other, the weak compliance requirements that buyers need to meet and the effect of the Government's directive to facilitate foreign investment.
All foreign direct investment is meant to be in the national interest but not all the national interest criteria have to be met for an application to be successful. And the test does not include impact on the social fabric of the local community, environment effects or compatibility with Treaty of Waitangi obligations.
Despite these lax and inadequate rules, the commission still struggled to approve the Twain application. Its secretary, Stephen Dawe, said it went back to the Canadian singer three times to advise that the application might be refused if it was not improved. In a confidential report, the commission said it did not consider the proposal a particularly compelling case, given the size and nature of the property.
It raised questions about the real reason Twain wanted the sheep station, saying it doubted whether it was really a viable farming investment. It initially decided the purchase was not in the national interest, would not benefit Wanaka, and could push up the price of land for farmers seeking to set up their own property.
The commission also challenged Twain's claim that the farm would employ substantially more people, saying the short-term increase would be from around three to six full-time staff. It compared that to the increase in employment that might be achieved if a new tourist venture was being established.
The Herald also claimed that the Green Party fails to appreciate the significance of foreign investment to an economy as small as that of New Zealand. We understand all too well its impact. The latest balance of payments figures highlight the harm arising from our increasing dependence on foreign capital.
Statistics New Zealand reported that rising goods imports and higher income payments to foreign investors were the main reason for the current account deficit blowing out to $2.07 billion in the June quarter. Foreign corporations and individuals earned $9.49 billion on their New Zealand shareholdings and loans for the June year. Without that burden New Zealand would have had a current account surplus of $3.05 billion, not a deficit of $6.43 billion.
Despite the best efforts of our exporters and tourist operators to earn foreign exchange, we continue to live beyond our means as a nation, as demonstrated by the $7 billion increase in our net national debt to $109.2 billion (78 per cent of gross domestic product) in the June year.
That's why, for reasons of national sovereignty, economic self-reliance, environmental sustainability and cultural identity, the Greens are opposed to any more land sales to foreigners, and to the Government's plans to "liberalise" the sell-off of New Zealand to the world's wealthy.
* Rod Donald is the Green Party co-leader. He has drafted a private member's bill that would stop land sales to people who do not become permanent residents.
http://www.nzherald.co.nz/storydisp...ection=dialogue
- Tommy
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