Foreign investors buy $2.1b of NZ assets in five months, but…

It pays to read past the headline and opening paragraph.

Newstalk ZB (NZH) report: Foreign investors snap up $2.1b of NZ assets in five months

Foreigners got consent to buy $2.1 billion of New Zealand assets classed as rural, sensitive or worth $100m-plus in the first five months of the year.

But this is ‘a sharp decline’.

The Overseas Investment Office has just released its list of decisions made between January and May, and the figures show a sharp decline from the $4.6b recorded over the same period last year.

And:

It’s also worth noting that New Zealand has survived and thrived on foreign investment for two hundred years.

42 Comments

  1. Blazer

     /  July 3, 2018

    ‘It’s also worth noting that New Zealand has survived and thrived on foreign investment for two hundred years.’

    whats this supposed to mean?

    • Gerrit

       /  July 3, 2018

      well…people and organisations have put capital and expertise into creating goods and services that forms New Zealand tradeable sector…some even from overseas…simple really

      • Blazer

         /  July 3, 2018

        name some.

        • Gezza

           /  July 3, 2018

          I’m pretty hopeful with this one.

          • PartisanZ

             /  July 3, 2018

            Oh that’s great … a terrestrial thing to send stuff into outer space …

            This has gotta be ‘cost-effective’, productive and efficient …

            • Gezza

               /  July 3, 2018

              Only low earth orbit, not outer space. Aren’t quite a few of our everyday comms & useful info coming to us by being bounced back from “stuff” in low earth orbit?

            • PartisanZ

               /  July 3, 2018

              Mine aren’t …

            • Gezza

               /  July 3, 2018

              Are you sure? Ever use Google earth? Watch weather/wind videos. Use or rely on any vehicles using satnav? For example?

          • Blazer

             /  July 3, 2018

            25 mil of taxpayers money thrown at..it.

            • PartisanZ

               /  July 3, 2018

              Oh well, based on what I’ve discovered this morning, that makes it the perfect pseudo-neoliberal business …

            • Gezza

               /  July 3, 2018

              Good point. I was thinking of future returns but I dunno if we’re all 51% shareholders.

              Gerrit’s not coming to the party. I’ll see if I can think up up any others thru the day. Al might have a few ideas.

          • Blazer

             /  July 3, 2018

            Martin Jetpack didn’t really…fly…

          • Gezza

             /  July 3, 2018

            Yes it does. Right over traffic jams.

        • Grimm

           /  July 3, 2018

          There’s thousands.

          They’re in:

          Pharmaceuticals
          Healthcare
          Retirement
          Transport
          Construction
          Education
          Tourism
          Farming
          Horticulture
          Wine
          Hospitality
          Accommodation
          Banking
          Etc

          See the pattern emerging Blazer?

          • Blazer

             /  July 3, 2018

            name some companies.

            • Gerrit

               /  July 3, 2018

              Nah…not playing your silly game.

              worth a read…Canadians are the primary evil foreign investor.

              https://www.radionz.co.nz/news/national/281539/largest-foreign-investor-in-nz-revealed

            • Blazer

               /  July 3, 2018

              so Canada…’Canada was the largest source of foreign investment during the period, as its pension fund bought 18 properties in a portfolio from AMP and increased its stake in Kaingaroa Forest.’

              now marry it up to this and list the benefits to NZ…


              ‘ organisations have put capital and expertise into creating goods and services that forms New Zealand tradeable sector’

            • Grimm

               /  July 3, 2018

              Your stupidity knows no bounds.

              McDonald’s would be a good one, given that you’ll be there for lunch, Reading YourNZ on your iPhone on the Vodafone network. .

            • Blazer

               /  July 3, 2018

              so MacDonalds prescence in NZ is a net gain?
              Jobs,taxes,some product vs the profits sent offshore.
              Hard to see how NZ would be worse off without Maccas.

              How exactly does the Iphone contribute to NZ’s tradeable sector?

          • PartisanZ

             /  July 3, 2018

            Name some industries from that list that DON’T either rely or heavily depend on government support?

            Pharmacueticals and Healthcare … Government bulk-bought, research funded or straight out funded …

            Retirement … largely dependent on Super?

            Transport … ‘Private’ vehicles using public infrastructure …

            There’s a pattern there all right … it emanates from Banking …

            • Grimm

               /  July 3, 2018

              The government supports everybody. That’s the whole point of it.

              Bashing companies because they use the basic infrastructure that connects us all, or using goods and services that they can’t, or don’t (because of specialisation) provide themselves, and inferring that it’s a subsidy, is puerile. We elect governments to protect us (is that a subsidy as well?) and our property, and to provide things like infrastructure and education, that we can’t as individuals. Get over it.

              The alternative is no central government and that we protect and provide for ourselves. That was tried in NZ for a few hundred years, and quite often we ate each other (No McDonalds).

            • PartisanZ

               /  July 3, 2018

              Surely that’s an argument for the government supporting everybody more equally?

              The wildest illogic of it would be: Those who do not use the infrastructure to create profit for themselves should be paid for not doing so out of (some of) the profits of those who do?

              My point today has been that the neoliberal argument was for reducing the size and influence of government, yet it appears precisely the opposite has happened …

              These businesses don’t operate in ‘Free Markets’ at all, but are almost entirely dependent on government policies … Wasn’t that precisely the problem back in the days of Rob Muldoon?

              It seems neoliberalism is little more than a different form of central planning … Corporate-Capitalist-Political central planning.

        • High Flying Duck

           /  July 3, 2018

          Large portions of bank funding used to finance NZ businesses great and small come from overseas.
          Infrastructure spending, companies like Xero who are huge employers, vineyard developments, gold courses, much hospitality infrastructure.

          From Stuff:

          “Foreign direct investment, or FDI as it’s called, helps extend dairy factories, buys farms, get start-ups going and companies exporting.

          Often that money is from Australia or overseas institutions in the form of bank funding. But it also comes from people moving here, buying houses and starting or investing in businesses.”

          https://www.stuff.co.nz/business/103050269/foreign-investment-in-nz-a-conversation-worth-having

          Without overseas funds we would be an international backwater with a GDP like Fiji.

          • Blazer

             /  July 3, 2018

            Foreign exchange is earned by exports and tourism.
            Foreign firms invest for profit
            Xero has only 2000 employees worldwide..been going 12 years now.Still no profits.
            ‘ Drury decided to list on the NZX rather than receive investment from Silicon Valley ‘….changed his tune later.
            It all goes back to the same question…’where does ‘money’ come from and what makes it worth something’?

            • High Flying Duck

               /  July 3, 2018

              You always take it back to that question, but the question is completely irrelevant.
              Most Xero employees are in NZ. It can be profitable whenever it wants to be, but is reinvesting for growth (still).
              The exports and tourism that earn us foreign exchange were most likely created and funded by offshore investment.
              NZ cannot afford the cost of growth and development and so overseas funding is used, which then increases our economy and growth. Some profits go offshore, but the pot of money is bigger and overall we are still better off.

            • Blazer

               /  July 3, 2018

              @HFD its not irrelevant at all.
              Xero earns 80% of its revenue offshore.Roughly 1/2 its workforce is NZ based.
              Which countries do not rely on foreign exchange earnings for investment…and why?

            • High Flying Duck

               /  July 3, 2018

              Countries without external debt:
              Brunei
              Liechtenstein
              Macau
              Niue
              Andorra
              San Marino
              South Sudan
              Tuvalu

              However, as countries both lend and borrow money, many countries with external debt are also net international creditors.

              This list shows countries net investment position, which is probably more relevant:

              https://en.wikipedia.org/wiki/Net_international_investment_position

            • Blazer

               /  July 3, 2018

              an interesting list that overall is not too inspiring.
              The reality is that the world is awash with QE ,and unpayable debt unless it is inflated away.

  2. Alan Wilkinson

     /  July 3, 2018

    Business confidence plummets in NZ courtesy of the clueless and deluded Left and soars in the US courtesy of Trump. Left buries its collective head up its backside as usual.

    • Gezza

       /  July 3, 2018

      Trump lies like a flatfish, insults other countries & has brought in tariffs & protectionist policies. You are suggesting that business confidence here will improve if our government does the same? Yes?

      • Alan Wilkinson

         /  July 3, 2018

        Cut taxes and regulations. Simple, G.

        • Blazer

           /  July 3, 2018

          Alan Greenspan pushed that strategy,it resulted in the..GFC!!

        • Gezza

           /  July 3, 2018

          But with our government telling lies, insulting other countries, combining those measures with tariffs, & protectionist policies, expanding our military (an aircraft carrier & nukes might be good), with everyone free to carry arms too, Al? Yes? These are Trump’s policies Al.

          • Alan Wilkinson

             /  July 3, 2018

            All governments tell lies and insult their enemies. Trump is protectionist towards IP and fair trade. The jury is out on whether the endgame is free trade. He doesn’t have a policy on gun control any more than Obama did.

            • Gezza

               /  July 3, 2018

              Trump insults America’s friends & flatters its enemies, Al. Trump doesn’t want fair trade he wants bilaterally balanced trade, he wants the world to serve America’s interests. That’s what he seems to have meant by “America First”. That’s not actually fair trade.

              IP protection – if you’re talking about patents, American companies were trying to screw everyone with longer patents when, if there was fair trading, other countries can make things much more cheaply.

              But that’s not the point, is it? You want to pick out little bits of Trump’s policies that suit you & ignore the others. We have to wait & see what the overall US business confidence picture looks like when his trade war tariffs bite back, & when other countries shift their custom to places other than the US, so at least two more years, maybe longer.

            • Alan Wilkinson

               /  July 3, 2018

              No, he objects to China stealing US IP. Trying to extend patent protection was Obama’s policy not Trump’s. But don’t worry about the facts, just feel your prejudice.

            • Gezza

               /  July 3, 2018

              Well, how far do you take this though? I mean, the guys who invented the first two wheeled cart or the wheelbarrow. Do you think they sued someone in the next village or the next country who made a better one?

            • Alan Wilkinson

               /  July 3, 2018

              Brit pirates attacked returning Spanish ships to steal their charts and discoveries. Then they fought wars. Trump has been very tardy about starting wars compared with his revered predecessors.

            • Gezza

               /  July 3, 2018

              When the US forces countries to trade on their terms it usually doesn’t end well. Look at Japan.

              The Perry Expedition was commanded by Commodore Matthew Calbraith Perry, under orders from American President Millard Fillmore. Perry’s primary goal was to force an end to Japan’s 220-year-old policy of isolation and to open Japanese ports to American trade, through the use of gunboat diplomacy if necessary.

              Next thing you know the Japs have a Trump-like Emperor, copied Western technology big time, & are destroying the Russian Imperial Navy and demanding their slice of the US & European Imperialist pie in China. And when the Yanks invoke sanctions to choke their progress, it’s “Hello, Pearl Harbour”.

              Is this what you want?

            • Alan Wilkinson

               /  July 3, 2018

              If Americans wanted more wars they would have voted for Hillary, not Trump.

            • Gezza

               /  July 3, 2018

              Was she threatening to attack Iran & North Korea on the campaign trail, Al?

              You might be right, she might have been, but I don’t remember that. Links to any threats she made to attack those countries would be helpful.

              But you’re diverting a bit. Can we get back to whether you want us to adopt his other policies? You agree we should introduce tariffs on imports from China, Europe, the US, boost our military spending etc. To boost domestic employment. And allow our citizens to carry arms. Correct?

    • Blazer

       /  July 3, 2018

      I think the figures in RED tell the story….Al…

      http://www.usdebtclock.org/