This section contains information about the assessment of the likely benefit to New Zealand arising from the factor relating to other consequential benefits.
Whether the overseas investment will, or is likely to, result in other consequential benefits to New Zealand (whether tangible or intangible benefits (such as, for example, additional investments in New Zealand or sponsorship of community projects)) (r28(a))
Key elements of this factor
There are three key elements to this factor:
- There must be a consequential benefit to New Zealand.
- The benefit must not have been considered under another factor, it must be an other consequential benefit.
- The consequential benefit that is likely to result from the overseas investment must be additional to that which is likely to occur without the overseas investment.
This factor is broadly worded and covers a variety of benefits. The examples listed in the regulation are additional investments in New Zealand and sponsorship of community projects.
The consequential benefit must be proposed in connection with the proposed investment. Benefits that are currently in existence (e.g. existing or historic sponsorship) or that are also likely to occur without the overseas investment will not satisfy this factor.
Benefits that do not fall within the scope of other factors may be considered as a consequential benefit (for example, environmental benefits which do not meet the requirements of one of the factors in sections 17(2)(b) to (e)).
The Minister has directed the OIO through the Directive Letter that where consequential benefits to New Zealand are demonstrated through sponsorship of community projects or donations the consequential benefit factor is to be given low relative importance. For the avoidance of doubt, the Government does not seek donations or sponsorship from overseas persons investing in sensitive land.
If the consequential benefit involves sponsorship, a scholarship, or a donation, it is helpful to discuss the proposal with the intended beneficiary of the sponsorship, scholarship, or donation before making your application. However, the OIO does not seek or encourage these financial contributions and will normally give them low importance in our assessment of an application.
Making a claim
Benefits that have been claimed under other factors should not be repeated under this factor. A benefit will only be counted once.
Provide the following information when making a claim under this factor:
The form the consequential benefit will take.
- Benefit to New Zealand:
How the consequential benefit will benefit New Zealand.
- Causal connection:
How the consequential benefit is linked to the overseas investment.
The size of the consequential benefit to New Zealand (in dollar or other terms).
The consequential benefit that is likely to occur without the overseas investment.
When the consequential benefit is likely to occur.
Any uncertainties or contingencies that may prevent the delivery of the consequential benefit.
An applicant should include sufficient evidence to show that any consequential benefit is likely to occur.
Conditions of consent
All consents are granted subject to conditions. Consent conditions will generally require consent holders to deliver, and report on, the benefits claimed in their application. The OIO monitors all consents to ensure that conditions are complied with.