Govt targets 10 big foreign investors to boost NZ exports

We have to get more access to the world for NZ farmers and manufacturers, says Economic Development Minister Steven Joyce. Photo / NZ Herald

Economic Development Minister Steven Joyce says the Government is looking to attract 10 multinational firms to invest in New Zealand research and development over the next five years.

Launching the investment chapter of the Business Growth Agenda at the Infinz finance industry conference this morning, he said $160 billion to $200 billion in new productive capital needed to be secured for the country's export sector.

Much of that capital would need to come from overseas.

"We aim to double the amount of capital that migrant investors and entrepreneurs bring to New Zealand from around $3.5 billion to $7 billion."

He said the target of 10 new multinational R&D investors had been set with the aim of holding "the officials to account over the next few years as to what they can achieve".

"We think 10 further multinationals in R&D is a good goal to have and if we do that it will have a significant impact in terms of New Zealand's overall R&D ecosystem."

It was difficult to put a figure on how much those 10 companies could invest, Joyce added.

He said foreign direct investment was crucial to the goals of the Business Growth Agenda and the Government was working to provide more resources to the Overseas Investment Office to improve its efficiency.

"We have 4.5 million people on this waka and if we want to make our farmers, our manufacturers and our companies more successful then we have to get them more access to the world," Joyce said. "Welcoming investment occurring here will ensure more of it takes place in this geography than offshore."

He defended the Government's decision to decline Chinese firm Shanghai Pengxin's $88 million bid to buy Lochinver Station, near Taupo, saying it was simply an application of policies rather than a change of policy.

"Ministers and NZTE have had a chance to talk to investors and make it clear that it's not a change of policy," Joyce said. "It's certainly not a change of policy in relation to Chinese investment - it's simply an application of the existing rules."

A Shanghai Pengxin-controlled firm, Dakang New Zealand Farm Group, said this week that the Lochinver experience had contributed to its decision to pull out of a $42.7 million deal to buy a cluster of farms in Northland.