Foreign investment is not a black and white issue. Too often the populist reaction to the issue is knee-jerk and xenophobic. New Zealand simply couldn't function as the first world country we are accustomed to without it. The reality is we rely on foreign capital to fund our way of living.
But that doesn't mean we shouldn't be smarter about the kind of investment we are encouraging in this country.
While the issues around foreign investment are far from simple there is, at a policy level, good cause for targeting a simple goal.
READ MORE:• KPMG: Make migrants take a risk
Let's ensure we are weighting policy to require the kind of investment that creates new wealth, new jobs and helps diversify New Zealand's economy.
Now, while demand for New Zealand residency is high, let's play that to our advantage.
The approach that KPMG and business incubator The Ice House have put their weight behind in the Business Herald today is one which shouldn't scare the horses.
It isn't anti-foreign investment.
But it is a bold call. It recognises that New Zealand is a great place to live, with fantastic economic prospects and can therefore afford to be more prescriptive about the way it requires migrants to invest when they settle here.
KPMG's analysis points out that the existing migrant investor regime has attracted nearly $4 billion in just six years.
But it finds that some 80 per cent of the investment is going into safe, passive places like government bonds.
Canada and Australia already have requirements for a percentage of new migrant investment to be placed in risk category investments - like growth funds or direct investments.
Set at just a 10 per cent requirement, that could have resulted in $400 million of capital into NZX-listed companies, venture capital or angel investments over the past six years.
New Zealand is blessed with a wealth of smart young entrepreneurs, tech-savvy business people looking to take on the world. But our investment sector at the venture capital and angel stage has long battled to attract the capital required.
In a market our size, $400 million would have represented a huge boost and been a big driver for the expansion of companies which will provide jobs for the next generation of New Zealanders, including the children of new migrants.
There is opportunity now, while migration trends are on our side, to tweak official policy around this. Let's hope the Government is prepared to take a serious look at the work KPMG has done.