NZ to ban foreign buyers of existing homes but says change would comply with TPP-11
By Paul McBeth
Oct. 31 (BusinessDesk) - Prime Minister Jacinda Ardern announced plans to effectively ban foreign buyers of existing
residential property but says the prohibition doesn't put New Zealand at odds with the slimmed down version of the
Trans-Pacific Partnership deal.
In her first post-Cabinet press conference, Ardern and Trade Minister David Parker unveiled the plan to introduce
legislation to amend the Overseas Investment Act restricting foreign buyers of existing residential property before
Christmas and passing the law early next year, saying the move had the backing of the NZ First and Green parties.
That would take the heat out of future property bubbles by blocking overseas speculators, and wouldn't breach existing
free-trade agreements with the exception of the Singapore Closer Economic Partnership, Ardern told reporters in
Wellington.
It also removes the newly installed Labour-led government's biggest objection to signing up to the TPP-11, leaving
Investor State Dispute Settlement (ISDS) clauses the biggest remaining bone of contention and Ardern said negotiators
had been tasked with trying to amend those provisions in the deal.
"We have given a new mandate to negotiators around these clauses," Ardern said. "We will do all we can at this late
stage to negotiate in the best interests of New Zealand and New Zealanders when it comes to the use of ISDS clauses."
Ardern said Cabinet also issued instructions to trade negotiators that future FTAs don't include ISDS clauses. She
declined to say whether New Zealand would walk away from the deal if it doesn't get traction on the ISDS clauses.
That move comes as members of the European Parliament's trade committee visit New Zealand as a precursor to formal
negotiations of a free trade deal. European policymakers are keen to abolish ISDS provisions in favour of a new public
court system and chair Bernd Lange today told BusinessDesk that could be a key plank in negotiations with New Zealand.
Ardern said the government's plan won't apply to Australian citizens because New Zealanders have reciprocal rights to
buy property across the Tasman, and won't prevent foreign buyers of land to develop new housing. It also won't be
retrospective, she said.
The Overseas Investment Office will focus on applications relating to the purchase of land building existing housing and
will need appropriate resourcing, Ardern said.
"Land-banking is an issue also we will be looking at in further detail, at the moment, our priority has been dealing
with this issue as quickly as we can because these OIO provisions need to be resolved sooner rather than later," Ardern
said.
(BusinessDesk)