This section contains information about the assessment of the likely benefit to New Zealand arising from the factor relating to New Zealand’s economic interests.

Whether New Zealand's economic interests will be adequately promoted by the overseas investment, including, for example, matters such as all or any of the following:

  1. whether New Zealand will become a more reliable supplier of primary products in the future:
  2. whether New Zealand's ability to supply the global economy with a product that forms an important part of New Zealand's export earnings will be less likely to be controlled by a single overseas person or its associates:
  3. whether New Zealand's strategic and security interests are or will be enhanced:
  4. whether New Zealand's key economic capacity is or will be improved (r28(i))?

Key elements of this factor

There are two key elements to this factor:

  1. The overseas investment must adequately promote New Zealand’s economic interests.
  2. The promotion of New Zealand’s economic interests that will result from the overseas investment must be additional to that which is likely to occur without the overseas investment.

This factor has a higher threshold of ‘will’ rather than ‘is likely to’ result from the overseas investment.

New Zealand’s economic interests

The factor has a broader focus than the other economic factors and concerns the effect of the overseas investment on the wider New Zealand economy.

This ‘economic interests’ factor allows the decision maker to consider a wider range of economic issues in their assessment of a particular investment, in particular whether New Zealand’s economic interests are adequately promoted. A non-exhaustive list of examples is given in the regulation itself to provide a guide as to the interpretation of this factor.

The requirements of this factor will not be met if the overseas investment will not have any material effect on New Zealand’s economic interests.

Matters in regulation 28(i)

The four matters referred to in regulation 28(i) are examples of matters that may be taken into account in assessing whether New Zealand’s economic interests are adequately promoted by the overseas investment, however, the decision-maker may take into account other relevant matters.

The decision-maker will make an assessment as to the overall effect of the overseas investment on New Zealand’s economic interests and whether they are adequately promoted.

Strategic and Security Interests

Strategic and security interests are relevant where there are non-commercial motivations driving the overseas investment (for example foreign government investors with non-commercial motivations for taking control of New Zealand assets).

Making a claim

Provide the following information when making a claim under this factor:

  1. Regulation 28(i) matters:
    Address each of the matters in regulation 28(i) that are relevant and include any other relevant matter.
  2. New Zealand’s economic interests:
    An explanation as to how the overseas investment will adequately promote New Zealand’s economic interests.
  3. Counterfactual:
    The promotion of New Zealand’s economic interests that is likely to occur without the overseas investment.
  4. Timeframe:
    When the promotion will occur.
  5. Uncertainties:
    Anything that may prevent New Zealand’s economic interests being adequately promoted.

An applicant should also include sufficient evidence to show that the adequate promotion of New Zealand’s economic interests will to occur.

Last Updated: 4 December 2017