This section contains information about the assessment of the likely benefit to New Zealand arising from the factor relating to jobs.
Will the overseas investment result in, or is it likely to result in, the creation of new job opportunities in New Zealand or the retention of existing jobs in New Zealand that would or might otherwise be lost (section 17(2)(a)(i))?
Key elements of this factor
There are three key elements to this factor:
- The "new job opportunities" must be new, or if existing jobs are being "retained", the existing jobs would or might otherwise be lost if the investment does not proceed.
- The new job opportunities or retained jobs must be in New Zealand.
- The new job opportunities or retained jobs that are likely to result from the overseas investment must be additional to those which are likely to occur without the overseas investment.
Creation of new job opportunities
Generally, there are two types of new job opportunities:
- Direct jobs:
These are provided directly by the applicant or the business it is buying, such as additional staff for an expanding business. Direct jobs also include temporary jobs, such as seasonal workers or contractors for the construction of a new factory.
- Indirect jobs:
These flow from the overseas investment indirectly via suppliers or elsewhere in the relevant industry. Indirect jobs must be sufficiently linked to the occurrence of the overseas investment.
The more direct the relationship between the overseas investment and the new job opportunities, the more relevant this factor will be.
Making a claim
Provide the following information when making a claim under this factor:
How the overseas investment will or is likely to result in the creation of new job opportunities in New Zealand or the retention of existing jobs in New Zealand that might otherwise be lost. If the retention of existing jobs is claimed, explain why existing jobs will or might be lost without the overseas investment.
The number of any new direct or indirect job opportunities likely to be created or the number of any existing jobs likely to be retained with the overseas investment by reference to full time equivalent units (“FTE”) and value of the job opportunities (that is, estimated salaries or annual wages) (see below for how to calculate FTEs).
A brief description of the relevant jobs being created or that would or might be retained.
Where the relevant jobs will be based.
When the new jobs are likely to be created or when the existing jobs would or might be lost. If the new jobs are to be spread over a particular timeframe, specify the financial years over which the new jobs are likely to occur and the number of jobs in each of those financial years.
The number of any new direct or indirect job opportunities likely to be created without the overseas investment or the number of any existing jobs likely to be lost without the overseas investment by reference to FTE.
Any pre-conditions that may prevent the delivery of the benefits claimed under this factor (for example, if regulatory approval or consent is required before the business can be expanded and therefore new jobs created).
This factor is of high relative importance for overseas investments in rural land.
How to calculate FTEs
One FTE is a permanent job for at least 30 hours per week, on average, calculated over a year. A job requiring more than 30 hours per week is still only one FTE.
A permanent job for less than 30 hours a week will be expressed as a fraction of an FTE. For example, a permanent 15 hours per week job will be expressed as 0.5 FTEs.
A temporary or fixed term role must be identified as such. For example, a two year, 40 hour/week job opportunity will be expressed as "one FTE for two years".
A job opportunity for a contractor (and not for an employee) must be identified as such.
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.