These questions and answers relate to the 7 May 2010 media release: Overseas Investment Office launches investigation into farm purchases.
- When will the OIO complete its investigation?
- The OIO will continue its investigation until it is satisfied that all the requested information has been supplied, and it is able to determine whether or not a breach of the Overseas Investment Act 2005 has been committed.
There is no statutory timeframe within which the OIO needs to complete this.
- Is the investigation related to the proposed purchases by Natural Dairy (NZ) Holdings Limited?
- The investigation does not relate to reports in the media of other purchases that may be planned by Natural Dairy (NZ) Holdings Limited.
- If an application is received, can retrospective consent be granted?
- In some cases, consent can be granted retrospectively if consent was required at an earlier stage, but an application is required before a decision can be made. The application would still need to meet the relevant criteria in the Overseas Investment Act before consent is granted.
The OIO also has the power to apply to the High Court to have the farms sold, if the court finds that an offence has been committed under the Overseas Investment Act. This course of action could be taken if an application was filed and consent was declined.
- If an application is received, how long will it take for the OIO to assess it and make a decision on consent?
- The OIO aims to complete an initial assessment within five working days.
Provided the required level of information is received in the application, and the correct fee paid, the OIO will register an application and start processing it.
Once an application is registered, the OIO aims to make decisions within 50 working days of the date of registration. This timeframe applies to high-quality straightforward applications, where no third party consultation is required or special land is involved.
However, there is no statutory timeframe within which the OIO needs to complete this.
- Who will ultimately decide on consent for the farm purchases if an application for retrospective consent is received?
- The decision will be made by the Minister of Finance and the Minister for Land Information.
- If retrospective consent is granted for a particular applicant, does this mean future investments will also get consent?
- No. Obtaining consent for one transaction does not necessarily mean that consent for other transactions would be granted. As an example, should an applicant apply for and be granted consent to purchase five farms, this does not mean the applicant can then go ahead and purchase another ten farms. It would need to seek consent for those transactions also.
- As the farms have already been purchased, what are the potential ramifications if consent is not granted?
- A fine or civil penalty of up to $300,000 can be imposed by the Court for purchasing a property without the required consent.
The OIO also has the power to apply to the High Court to have the farms sold, if the court finds that an offence has been committed under the Overseas Investment Act. This course of action could be taken if consent was declined or an application to purchase the farms was not filed.
- Are the farms purchased by UNBZ Assets Holdings Limited and UBNZ Funds Management Limited able to continue operating?
- Yes. The OIO’s investigation does not affect the ability of these companies to carry on business.
For further information see:
Media queries: Brad Young, Senior Communications Advisor, Ph (04) 460 0147 or 027 227 1267, email media@linz.govt.nz.
