Infrastructure New Zealand has welcomed proposals to increase overseas investment...
The Government’s proposal to streamline the Overseas Investment Act has been welcomed by Infrastructure New Zealand as an important step to increase the overseas investment needed to supercharge New Zealand’s infrastructure uplift.
“New Zealand faces a massive infrastructure deficit, estimated to be at least $200 billion,” says Infrastructure New Zealand Chief Executive Nick Leggett. “Central and local government funding will not be enough to overcome this, however increased access to overseas capital along with domestic private sector investment can help bridge the gap.”
“Infrastructure can be an extremely attractive asset for international institutional investors such as pension funds and sovereign wealth funds. These investors typically seek long-term, stable investments, which infrastructure projects can provide.”
“Creating a more favourable investment regime to attract global investors can facilitate increased interest in critical nation-building projects,” Leggett says.
“The additional benefit to increased overseas investment is that it can help bring in international expertise, innovation and technologies that can modernise our infrastructure delivery and assist promote best global practice when it comes to building infrastructure that is resilient to future climate challenges and a growing population.”
As well as plans to streamline the overseas investment assessment process, Infrastructure New Zealand is also encouraged by the proposed requirement for a government policy statement.
“A government policy statement is a good idea because it means New Zealand can take a far more strategic approach to overseas investment,” says Leggett. “In areas such as infrastructure, where we desperately need an injection of overseas private capital, we can encourage it, and in other areas where it does not benefit us quite so much, we can seek to restrict it.”
“Ultimately, creating the right investment environment is about striking a balance. Removing regulatory barriers to investment is important, but it is also important to ensure public transparency and maintain New Zealanders’ trust in the system.”
