Notice of Government Overseas Investment Policy, Delegation and Criteria 21 December 1995 Chairman Overseas Investment Commission P.O. Box 2498 WELLINGTON Dear Mr Stannard Overseas Investment Policy, Delegation and Criteria 1. The Minister of Lands and the Minister of Finance have decided a number of matters relating to the Government's general policy approach to overseas investment and to what decisions under the legislation should be delegated to the Overseas Investment Commission and its staff as from the commencement date of the new legislation on 15 January 1996. General Policy Approach 2. The Government's welcoming policy on foreign direct investment recognises that the inflow of such investment normally provides a net benefit to the New Zealand economy. Section 9 (2) of the Overseas Investment Act 1973 requires the Overseas Investment Commission to ``comply with the general policy of the Government . . . transmitted in writing . . . by . . . the Minister and the Minister of Lands.'' We wish to convey the following general policy of the Government in relation to the functions of the Commission: a. The Government's policy of welcoming foreign direct investment is to continue. b. The general policy approach is to continue to be based on the premise that proposals from overseas investors should be approved unless good reason exists, in terms of the legislative criteria, to decline an application. c. The existing approach of interpreting the criteria applications must meet in a way which facilitates rather than hinders investment should continue. Delegation 3. The Minister of Finance hereby delegates to the Overseas Investment Commission and its staff the power to determine applications under Part II of the Overseas Investment Regulations 1995. 4. Both Ministers hereby delegate to the Overseas Investment Commission and its staff, in relation to Part III of the Regulations: a. their powers to determine land applications involving land of less than 10 hectares which do not involve sensitive land (being land in the Schedule of the Act involving islands, foreshores, lakes, reserves and historic areas) where the cost of the land is less than $1 million. b. their powers to determine land applications which are part of a purchasing programme previously approved in principle by them under the new Regulations or which has previously been approved under the Overseas Investment Regulations 1985 or the Land Settlement Promotion and Land Acquisition Act 1952 where each acquisition is consistent with any conditions established for the programme. 5. We also delegate the following related matters: a. our powers under regulation 12 to specify information and particulars to be supplied by applicants; b. our powers in regulations 14 and 16 in respect of applications that have been delegated; c. our powers in regulation 16 in respect of adding entities to or deleting entities from the Schedules to the Overseas Investment Exemption Notice 1995; d. our powers in regulation 17 in respect of any matter delegated; e. our powers in section 15 of the Act in respect of applications that have been delegated; f. in each case where a power has been delegated, the power of delegation under section 16 of the Act. Criteria 6. In considering any applications under delegation the Commission must take into account the matters provided for in section 14a of the Overseas Investment Act 1973. Right Hon. W. F. BIRCH, Minister of Finance. DENIS MARSHALL, Minister of Lands.