Latest news with #LINZ
Scoop
4 hours ago
- Business
- Scoop
Overseas Investment Decisions Twice As Fast
Associate Minister of Finance Associate Minister of Finance David Seymour is encouraged to see overseas investment decisions being made twice as fast following his Ministerial directive letter (the letter) to Land Information New Zealand (LINZ). 'Last year I issued a Ministerial directive letter setting out my expectations for faster consent processing timeframes under the Overseas Investment Act (the Act),' Mr Seymour says. 'The letter set my expectation that LINZ, the regulator for the Act, will process 80 per cent of consent applications in half the statutory timeframes for decisions. 'The financial year beginning 1 July 2024 is on track to meet my expectations. So far, LINZ has been processing 88 per cent of consent applications in half the statutory timeframe. 'Since this financial year began, processing times have reduced by 39 per cent faster than the previous financial year. The average timeframe has reduced from 71 working days in the last financial year, to 28 working days this financial year. 'The improvements to processing times are largely owed to the new risk-based approach LINZ take to verifying information and streamlining consent processes. This recognises that the majority of consent applications are low-risk and should be processed more efficiently. '1 July 2024 to 19 June 2025 saw 122 applications for overseas investment, decreasing from 146 in the financial year prior (both figures exclude 'only home to live in' applications). The decrease is explained by a significant drop in applications for residential land development due to poor property market conditions. I expect these numbers to bounce back with the rise of the property market. 'In order to have a strong growing economy New Zealand needs to be more welcoming to investment. Long waiting times for applications was creating uncertainty and impacting the attractiveness of investing in New Zealand. This affected New Zealand businesses that rely on overseas investment for capital or for liquidity. 'Since delegating most decision-making to LINZ and directing officials to focus on realising the benefits of overseas investment, there has been a significant improvement in processing times. 'Feedback from investors has been overwhelmingly positive, and they have welcomed the changes to make the application process more efficient, while still giving the right level of scrutiny to high-risk transactions. 'LINZ still has the full statutory timeframe to process 20 per cent of consent applications, which will allow them to manage complex and higher-risk applications. 'This week will see the first reading of thee Overseas Investment (National Interest Test and Other Matters) Amendment Bill as well. 'The Bill will consolidate and simplify the screening process for less sensitive assets, introducing a modified national interest test that will enable the regulator to triage low-risk transactions, replacing the existing benefit to New Zealand test and investor test. If a national interest risk is identified, the regulator and relevant Minister will have a range of tools to manage this, including through imposing conditions or blocking the transaction. The current screening requirements will stay in place for investments in farmland and fishing quota. 'New Zealand has been turning away opportunities for growth for too long. Having one of the most restrictive overseas investment regimes in the OECD means we've paid the price in lost opportunities, lower productivity, and stagnant wages. This Bill is about reversing that. 'For all investments aside from residential land, farmland and fishing quota, decisions must be made in 15 days, unless the application could be contrary to New Zealand's national interest. In contrast, the current timeframe in the Regulations for the benefit test is 70 days, and the average time taken for decisions to be made is 30 days for this test,' says Mr Seymour. 'International investment is critical to ensuring economic growth. It provides access to capital and technology that grows New Zealand businesses, enhances productivity, and supports high paying jobs.
RNZ News
8 hours ago
- Business
- RNZ News
Overseas investment decisions made twice as fast after directive from David Seymour
Watch Acting PM David Seymour speak after Cabinet meeting: Overseas investment decisions are being made twice as fast, following a directive from David Seymour to Land Information New Zealand (LINZ). Seymour, who holds portfolio responsibility for the Overseas Investment Act, told LINZ last year to process 80 percent of consent applications in half the statutory timeframes for decisions. He said the financial year beginning 1 July 2024 was on-track to meet expectations, with 88 percent of applications processed in half the timeframe. "Processing times have reduced by 39 percent faster than the previous financial year. The average timeframe has reduced from 71 working days in the last financial year, to 28 working days this financial year," Seymour said. "Since this financial year began, processing times have reduced by 39 percent faster than the previous financial year. The average timeframe has reduced from 71 working days in the last financial year, to 28 working days this financial year." Seymour is standing in for Christopher Luxon at this week's post-Cabinet press conference as Acting Prime Minister, but has made the announcement in his capacity as Associate Minister of Finance. He said the improvements to processing times were largely due to a new risk-based approach LINZ was taking to verifying information and streamlining consent processes, recognising that most applications were low-risk. There had been a drop in total applications for residential land development (122 between 1 July 2024 and 19 June 2025, down from 146 in the previous financial year), which Seymour said was due to poor property market conditions. He expected the numbers to bounce back as the property marked rose. LINZ still had the full statutory timeframe to process 20 percent of applications, which would allow them to manage the more complex and high-risk applications. With Parliament sitting this week for the first time in three weeks, Seymour's Overseas Investment (National Interest Test and Other Matters) Amendment Bill will also have its first reading. The Bill seeks to introduce a modified national interest test so low-risk transactions can be assessed quicker. The screening process for less sensitive assets would also be simplified. The current screening quota for investments in farmland and fishing quota would stay in place. Seymour said New Zealand currently had one of the most restrictive overseas investment regimes in the OECD. "We've paid the price in lost opportunities, lower productivity, and stagnant wages. This Bill is about reversing that," he said.
RNZ News
9 hours ago
- Business
- RNZ News
Watch live: David Seymour speaks after Cabinet meeting
Overseas investment decisions are being made twice as fast, following a directive from David Seymour to Land Information New Zealand (LINZ). Seymour, who holds portfolio responsibility for the Overseas Investment Act, told LINZ last year to process 80 percent of consent applications in half the statutory timeframes for decisions. He said the financial year beginning 1 July 2024 was on-track to meet expectations, with 88 percent of applications processed in half the timeframe. "Processing times have reduced by 39 percent faster than the previous financial year. The average timeframe has reduced from 71 working days in the last financial year, to 28 working days this financial year," Seymour said. "Since this financial year began, processing times have reduced by 39 percent faster than the previous financial year. The average timeframe has reduced from 71 working days in the last financial year, to 28 working days this financial year." Seymour is standing in for Christopher Luxon at this week's post-Cabinet press conference as Acting Prime Minister, but has made the announcement in his capacity as Associate Minister of Finance. He said the improvements to processing times were largely due to a new risk-based approach LINZ was taking to verifying information and streamlining consent processes, recognising that most applications were low-risk. There had been a drop in total applications for residential land development (122 between 1 July 2024 and 19 June 2025, down from 146 in the previous financial year), which Seymour said was due to poor property market conditions. He expected the numbers to bounce back as the property marked rose. LINZ still had the full statutory timeframe to process 20 percent of applications, which would allow them to manage the more complex and high-risk applications. With Parliament sitting this week for the first time in three weeks, Seymour's Overseas Investment (National Interest Test and Other Matters) Amendment Bill will also have its first reading. The Bill seeks to introduce a modified national interest test so low-risk transactions can be assessed quicker. The screening process for less sensitive assets would also be simplified. The current screening quota for investments in farmland and fishing quota would stay in place. Seymour said New Zealand currently had one of the most restrictive overseas investment regimes in the OECD. "We've paid the price in lost opportunities, lower productivity, and stagnant wages. This Bill is about reversing that," he said.
