Delays cost would be buyers

Photo / Thinkstock

A French Polynesian family partnership lost more than $150,000 when its plan to buy a Matauri Bay farm fell through due to the long time it took for the Overseas Investment Office to process its purchase application.

French Polynesians Sylvain Laine and Roger Lossing and their families last year sought permission to buy a 296ha sheep and beef farm at Matauri Bay for $2.15million.

The farm was owned by Max Beazley, of Maungatapere, and his sons Arthur Beazley, of Kaeo, and Larry Beazley, of Kaikohe.

Laine-Lossing lawyer Steve Rutherford, of Auckland, said the vendors had granted his clients two extensions of time while they waited months for the OIO to process the purchase application.

But the vendors lost patience, a third extension request was turned down and the farm was sold before OIO consent was granted for the sale on April 22 this year.

Mr Rutherford said his clients had paid more than $150,000 to cover OIO fees, an Elders' report on developing the farm and other expenses that did not include costs for several client visits to New Zealand to arrange the purchase.

Mr Rutherford said his clients had been bitterly disappointed to lose the purchase and they were to a large extent put off investing in New Zealand. "They had their fingers badly burned."

When people applied for building consents and permission for other activities involving land, local authorities were required to process applications within a time limit, such as 20 working days.

"Other business processes are quick and cheap, so why did my clients have to wait so long?" Mr Rutherford asked.

OIO manager Annelies McClure said yesterday the Matauri Bay purchase was a category two application, which the OIO aimed to have assessed within 50 working days.

But there had been a 46-day delay when the application was first rejected then resubmitted.

The OIO assessment had taken 41 working days, 16 working days had been spent waiting for the applicant and 23 days were spent waiting for ministerial approvals.

The OIO has 12 staff.