The Government has moved to protect New Zealand's "gateway to the world" from falling into foreign hands by rushing through new powers to block the sale of Auckland International Airport.
The changes were pushed through Cabinet yesterday and enacted within hours in what the Government described as a move to protect New Zealand's major strategic assets.
They almost certainly spell the death knell for a Canadian pension fund's bid for control of Auckland airport.
Under the changes, ministers will be able to block the sale overseas of any land or assets if it runs counter to the need to maintain New Zealand control of strategically important infrastructure on sensitive land.
Finance Minister Michael Cullen said the changes had been made in response to the uncertainty and debate surrounding the Canadian Pension Plan Investment Board's offer to airport shareholders.
"There has been a high degree of public debate about the merits of handing over control of New Zealand's main gateway to the world to foreign interests."
Under the Overseas Investment Act, the Canadian Pension Plan bid would have required final signoff from government ministers, because it involved sensitive land.
The changes rushed through yesterday add another weapon to the Government's arsenal of national interest tests that must be met before such a sale is approved.
The government ministers delegated to consider the partial takeover bid, if it proceeds, are Associate Finance Minister Clayton Cosgrove and Land Information Minister David Parker.
Dr Cullen said the new regulation, which was introduced by an order in council, brought New Zealand into line with a number of other countries, including Australia, which restricted foreign ownership of airports.
"New Zealand already has foreign ownership restrictions on Telecom and Air New Zealand in addition to our generic Overseas Investment regime."
The announcement was delayed till late last night, apparently because of the need to wait for the Australian stock markets to close.
It is the second time the Government has acted against the airport sale; last week Dr Cullen announced urgent measures blocking a multimillion-dollar tax break that would have sweetened the Canadian pension fund's bid.
The changes were pushed through Cabinet yesterday and enacted within hours in what the Government described as a move to protect New Zealand's major strategic assets.
They almost certainly spell the death knell for a Canadian pension fund's bid for control of Auckland airport.
Under the changes, ministers will be able to block the sale overseas of any land or assets if it runs counter to the need to maintain New Zealand control of strategically important infrastructure on sensitive land.
Finance Minister Michael Cullen said the changes had been made in response to the uncertainty and debate surrounding the Canadian Pension Plan Investment Board's offer to airport shareholders.
"There has been a high degree of public debate about the merits of handing over control of New Zealand's main gateway to the world to foreign interests."
Under the Overseas Investment Act, the Canadian Pension Plan bid would have required final signoff from government ministers, because it involved sensitive land.
The changes rushed through yesterday add another weapon to the Government's arsenal of national interest tests that must be met before such a sale is approved.
The government ministers delegated to consider the partial takeover bid, if it proceeds, are Associate Finance Minister Clayton Cosgrove and Land Information Minister David Parker.
Dr Cullen said the new regulation, which was introduced by an order in council, brought New Zealand into line with a number of other countries, including Australia, which restricted foreign ownership of airports.
"New Zealand already has foreign ownership restrictions on Telecom and Air New Zealand in addition to our generic Overseas Investment regime."
The announcement was delayed till late last night, apparently because of the need to wait for the Australian stock markets to close.
It is the second time the Government has acted against the airport sale; last week Dr Cullen announced urgent measures blocking a multimillion-dollar tax break that would have sweetened the Canadian pension fund's bid.
I think this is shocking government intervention and is not sound policy for helping a market economy.
Comment