Overseas Investment Commission's function to be transferred to LINZ
11 July 2005
As a result of the Overseas Investment Bill being passed (and thus becoming an Act), the Overseas Investment Commission (OIC) will be disestablished and its functions performed by a dedicated unit within Land Information New Zealand (LINZ).
To make the transition as smooth as possible, the OIC will move its staff and systems into LINZ before the Overseas Investment Act comes into force. The OIC will be renamed the Overseas Investment Office (OIO), and, amongst other things, will be required to increase its monitoring of the consents attached to approvals of foreign investments.
For further information on the changes in the Overseas Investment Bill, refer to the press release of Minister of Finance, Michael Cullen.
Please find a Q & A addressing some common questions.
Questions and Answers:
- Where do I go for updates?
www.oic.govt.nz. When and if the website address changes to LINZ, you will be automatically redirected to the new site.
- When do the new rules apply?
The Overseas Investment Act 2005 (the 2005 Act) passed into law on 16 June 2005 but will not come into force until the Governor General has approved a suitable commencement date by Order in Council. The proposed commencement date is 1 September 05.
Contracts relating to the acquisition of assets entered into before the 2005 Act commences will be governed by the old 1973 Act and its regulations.
- Do I have to send my application to LINZ now?
No. For now, follow the same process as before. Once the move to LINZ has occurred changes to contact details will be communicated by email to the OIC's key stakeholders, and through the OIC website - www.oic.govt.nz.
- Has the application process changed? If so, how?
As a date has not yet been finalised for when the Act comes into force, the application process is the same. Once the Bill becomes law, any changes to the application process will be communicated by email to the OIC's key stakeholders, and through the OIC website - www.oic.govt.nz. This will include information about the new requirements relating to things such as walking access, and protecting and enhancing our natural heritage.
- Will there be any change to the OIC's current fees and charges?
The current fees and charges will be reviewed. We will release more information as it comes to hand.
- Does this mean LINZ decides whether overseas investors get land? Will they decide on private land now?
After the Act comes into force, LINZ will decide on investment applications, or, if necessary, make recommendations to relevant Ministers about the best course of action.
- Who in LINZ will be the contact person for the new OIO?
The structure of the OIO within LINZ is still be finalised, but, after the Act comes into force, the Office will report to Warwick Quinn, General Manager, Regulatory.
- Why is the OIC being disestablished and moving to LINZ?
When the OIC was established by the Overseas Investment Act in 1973, an integral part of its work related to exchange and capital controls required at the time. This work was connected to the Reserve Bank's core functions, so it made sense for the OIC be an independent body located within the Reserve Bank.
In recent years, the OIC's core work has been more and more about land, and is more closely aligned to LINZ's functions.
- Why is the OIC being renamed the OIO?
A Commission, by its very nature, must be an independent and separate body. As a consequence, when the functions of Overseas Investment Commission are transferred into LINZ, the Commission is no longer required. Consequently, the Overseas Investment Commission will be renamed the Overseas Investment Office (OIO).
