Latest news with #OverseasInvestmentAct
Otago Daily Times
7 hours ago
- Business
- Otago Daily Times
Vege growing business owes more than $1m
A North Otago organic vegetable growing business, recently approached to appear on Country Calendar, has gone into voluntary liquidation owing more than $1 million, while a subsidiary company owes more than $300,000. Organic Solutions, which traded as Oamaru Organics, is 53.45% owned by James Porteous — who is also the sole director — and Australian-based Lanson International Holdings Pty Ltd (46.55%). Touted as the largest organic market garden in the South Island, it sold vegetables both at a roadside stall at Totara and through the Otago Farmers Market. In a statement, Mr Porteous said the farm had ''long struggled with chronic overstaffing'', which significantly increased its financial burden and led to an accumulation of debt with the IRD. He said he stepped in to directly manage farm operations in August, reducing staff numbers from nine to one and introducing mechanisation. He said the farm became compliant with all ongoing tax obligations and began rapidly repaying historic tax arrears. Per-hectare revenue increased 39% and he proposed a ''realistic'' repayment plan, which was declined by the IRD. The company would continue to operate and supply customers to the best of its ability throughout the farm sale process, he said. Incorporated in 2014, it originally owned Thai restaurants around the South Island and bought the 23ha farm — one of its main suppliers — for $1.7m in 2019 to maintain supply. The deal was later found to have breached the Overseas Investment Act because Lanson International Holdings — whose majority shareholder was Mr Porteous' friend Marc Lanson — owned more than 46%. The rules stated Australians could not have more than a 25% share of any purchase of New Zealand land bigger than 5ha without gaining consent first. Organic Solutions was fined $20,000 and retrospective consent had to be sought. In his first report, liquidator Brenton Hunt, of Insolvency Matters, said the majority of the restaurants were closed due to the outcome of the Covid-19 restrictions. According to Mr Porteous, the business had struggled to be economic for some time. Inland Revenue payments had fallen behind and the IRD had begun recovery action. The last annual accounts completed for the company were in March 2022. Plant and equipment and motor vehicles were to be collected and sold and there was finance owing on vehicles, Mr Hunt said. The land and buildings were also to be listed and sold (first mortgage owing). Under preferential creditors, staff holiday pay was estimated at $10,000 and GST and PAYE were estimated at $900,000. Unsecured creditors were estimated to be owed $1m and the total estimated shortfall to all creditors was estimated at $1,279,500. An associated company, Southern Organics, which is wholly owned by Organic Solutions, of which Mr Porteous was also sole director, was placed in voluntary liquidation the same day. That company, which was incorporated in November 2020 and ceased trading in November last year, produced organic soup products, and bought vegetables from the shareholding company. According to Mr Porteous, the soup products originally sold well but sales were not enough to make it economic and it was very seasonal. At the end of winter last year, the lease of a kitchen in Christchurch was surrendered and trading stopped. Under preferential creditors, staff holiday pay was estimated at $20,000, while Inland Revenue GST and PAYE was estimated at $40,000. Unsecured creditors were estimated to be owed $300,000.
Otago Daily Times
9 hours ago
- Business
- Otago Daily Times
Organic vege grower in liquidation
A North Otago organic vegetable growing business, recently approached to appear on Country Calendar, has gone into voluntary liquidation owing more than $1 million, while a subsidiary company owes more than $300,000. Organic Solutions, which traded as Oamaru Organics, is 53.45% owned by James Porteous — who is also the sole director — and Australian-based Lanson International Holdings Pty Ltd (46.55%). Touted as the largest organic market garden in the South Island, it sold vegetables both at a roadside stall at Totara and through the Otago Farmers Market. In a statement, Mr Porteous said the farm had ''long struggled with chronic overstaffing'', which significantly increased its financial burden and led to an accumulation of debt with the IRD. He said he stepped in to directly manage farm operations in August, reducing staff numbers from nine to one and introducing mechanisation. He said the farm became compliant with all ongoing tax obligations and began rapidly repaying historic tax arrears. Per-hectare revenue increased 39% and he proposed a ''realistic'' repayment plan, which was declined by the IRD. The company would continue to operate and supply customers to the best of its ability throughout the farm sale process, he said. Incorporated in 2014, it originally owned Thai restaurants around the South Island and bought the 23ha farm — one of its main suppliers — for $1.7m in 2019 to maintain supply. The deal was later found to have breached the Overseas Investment Act because Lanson International Holdings — whose majority shareholder was Mr Porteous' friend Marc Lanson — owned more than 46%. The rules stated Australians could not have more than a 25% share of any purchase of New Zealand land bigger than 5ha without gaining consent first. Organic Solutions was fined $20,000 and retrospective consent had to be sought. In his first report, liquidator Brenton Hunt, of Insolvency Matters, said the majority of the restaurants were closed due to the outcome of the Covid-19 restrictions. According to Mr Porteous, the business had struggled to be economic for some time. Inland Revenue payments had fallen behind and the IRD had begun recovery action. The last annual accounts completed for the company were in March 2022. Plant and equipment and motor vehicles were to be collected and sold and there was finance owing on vehicles, Mr Hunt said. The land and buildings were also to be listed and sold (first mortgage owing). Under preferential creditors, staff holiday pay was estimated at $10,000 and GST and PAYE were estimated at $900,000. Unsecured creditors were estimated to be owed $1m and the total estimated shortfall to all creditors was estimated at $1,279,500. An associated company, Southern Organics, which is wholly owned by Organic Solutions, of which Mr Porteous was also sole director, was placed in voluntary liquidation the same day. That company, which was incorporated in November 2020 and ceased trading in November last year, produced organic soup products, and bought vegetables from the shareholding company. According to Mr Porteous, the soup products originally sold well but sales were not enough to make it economic and it was very seasonal. At the end of winter last year, the lease of a kitchen in Christchurch was surrendered and trading stopped. Under preferential creditors, staff holiday pay was estimated at $20,000, while Inland Revenue GST and PAYE was estimated at $40,000. Unsecured creditors were estimated to be owed $300,000.
NZ Herald
13-05-2025
- Business
- NZ Herald
Capital Markets: Foreign investment requires adequate public safeguards
For Labour, our measure of success isn't solely about the amount of money we attract from overseas. It is about our people and whether we have jobs that pay enough to cover life's essentials, quality healthcare and a warm place to call home. When foreign investment is rushed or lacks adequate safeguards, it can undermine our jobs, health, homes and our long-held Kiwi values. Labour welcomes foreign investment that align with our national interest, delivers what New Zealand needs while saving taxpayers' money, and honours Te Tiriti o Waitangi. But we draw a firm line when it comes to essential public services. Labour does not support the private ownership or operation of our public schools, hospitals or prisons. These are not just line items on a balance sheet, they're pillars of our communities and must remain in public hands. We do not want to be tenants in our own hospitals and we certainly don't want another privately-run prison debacle. We are worried about National's rushed attempts to reform the Overseas Investment Act, which, if not done properly, could put our economic future at risk. Making it easier for foreign companies to buy up key assets while shifting profits offshore doesn't strengthen our economy, it weakens it. However, we are committed to continuity, because people are rightly sick of the changes and cancellations that happen when a Government is voted out. The Interislander ferries are a fantastic example of a botched cancellation. Construction workers are losing their jobs and leaving the country in droves as the National Party stops Government builds like hospitals, schools and housing projects as they make their mind up about whether they see these projects as important enough to fund. New Zealand recently sank into the sharpest recession in 30 years, excluding Covid. We lost 33,000 jobs, 13,000 construction jobs are gone and thousands of New Zealanders have left for Australia. So we have made it clear that Labour will not spend our first year back in Government pausing, cancelling and reviewing every project. Labour won't repeat National's mistakes. No more games. No more broken promises. No more throwing the baby out with the bathwater just to make a political point. If a project is contracted and under way, or if there would be significant costs to changing directions, then we'll keep it going – even if it's not how we would have gone about it. I've heard loud and clear from the construction sector that more job losses could follow if they don't have greater certainty. They need confidence that a change of Government won't mean the end of a project that's under way, because New Zealand can't afford more job losses, as we are seeing under National. Labour will be pragmatic. Ultimately, foreign investment is about getting the balance right. We need overseas investment to help us build infrastructure, create good jobs and help grow our economy. But investing in New Zealand is a privilege, not a right. And it must never come at the cost of public control over essential public services, like schools, hospitals or prisons. That's what smart investment looks like – and that's what Labour will deliver.
RNZ News
23-04-2025
- Business
- RNZ News
Christopher Luxon promotes NZ's rocket, tech talents to UK businesses
The business networking event attended by Christopher Luxon follows trade and defence talks with the UK Prime Minister Sir Keir Starmer. Photo: RNZ / Soumya Bhamidipati The Prime Minister is selling New Zealand as a "safe haven" for UK investors in an "uncertain and volatile world", but says there's no intention of trying to bypass the United States' tariffs. Speaking at a business networking event in London on Wednesday, Christopher Luxon said New Zealand offered abundant natural resources, credible social and democratic institutions, and good people. "In a very uncertain and volatile world, [there is] no better place for a safe haven investment than New Zealand," he said. "I want to know what more we can be doing to make it a very frictionless experience for investment and partnering with our New Zealand firms." That could include changes to planning laws, the Overseas Investment Act, and tax rules for Foreign Investment Funds, Luxon said. He told the gathering New Zealand had more to offer than meat and dairy. "What you don't know is that we are the fourth biggest launcher of rockets into space, behind the US, Russia and China," Luxon said. "We are also 88 percent renewable energy today, so that puts us probably in the top five in the world ... and the third thing is we have a massively exciting tech sector in our country. In fact, it's our third biggest export behind dairy and behind tourism." UK Prime Minister Sir Keir Starmer and Christopher Luxon at 10 Downing Street in London. Photo: AFP / Pool / Frank Augstein It follows a Tuesday meeting between Luxon and his UK counterpart, Sir Keir Starmer, during which both prime ministers agreed the countries' bilateral relationship had never been stronger. "Prime Minister [Sir Keir] Starmer and I underlined our commitment to the international rules-based system. We also talked about boosting bilateral trade and investment, especially while the global economy is under such extreme pressure," Luxon said. "Export growth will be critical to improving our economic prospects in the coming years so our businesses can create more jobs and lift incomes for Kiwis. "Our free trade agreement provides New Zealand business with certainty of access to the high-value UK market where we have enjoyed export growth of more than 20 percent in the last year." There was no talk of increasing trade between the United Kingdom and New Zealand as a way to get past the United States' tariffs, Luxon told RNZ. "I think it's an 'and', right? I mean, we all want to have a positive, constructive trading relationship with America," he said. "New Zealand's red meat, wine, dairy are our biggest exports into the US, it's a very large market, 360 million people. If you do a good job targeting the right market and consumers they can actually afford higher prices for premium products and that's in fact what they want." The government wanted to advance trade with as many nations as it possibly could, Luxon said. A number of commercial deals between UK and New Zealand companies worth more than $120 million were signed during Luxon's three-day visit to London. One of these deals was the extension of a major international partnership between Heathrow Airport and New Zealand's Safe365. The company provides safety technology to measure, monitor and improve workplace health and safety outcomes at one of the world's busiest airports. Harry Franks, a UK investor who is also associated with the company, said he was drawn to the company's culture. "The culture is what attracted me to the business five years ago and the culture is what sets them apart today. In a world where, in tech in particular, there can be quite a lot of hype I think Safe365 is incredibly good, and among other Kiwi businesses, at actually being focused on delivery being the most important thing they can do and I think that comes down to Kiwi culture."
