A billionaire American investor and New Zealand resident, who developed one of the world's best golf courses here, has threatened not to expand if the Government's anti-foreign buyer ban is passed.
David Parker, associate finance minister, said the bill would "reaffirm that it is not a right for an overseas buyers to purchase a house here. Our objective is to ensure that the New Zealand housing market is shaped by New Zealanders."
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But objectors have now made their views known, with 226 submissions on the bill - many strongly oppositional - now with the select committee, awaiting its response.
The bill is then due for a second reading in the House.
Kayne, whose business developed the highly-praised elite links course Tara Iti at Te Arai north of Auckland, revealed big plans for new luxury housing, a new house for himself and an entirely new public golf course.
Kayne said he was working with local Māori and planned a new and second golf course, for the public, was developing a new home for he and wife Suzanne and wanted to build more luxury housing.
But that was threatened, he indicated, by the new bill.
"Stemming from our initial investment purely in Tara Iti, we are wishing to expand our direct investment into the adjoining Te Arai South Precinct, alongside our friends and business partners Te Uri o Hau and Ngati Manuhiri. This includes another golf course(s) of similar quality which will be open to the public.
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"We are also investing in other parts of New Zealand, particularly in the Queenstown Lakes District. But the vision we have for what we would like to contribute to New Zealand is now being threatened by the provisions in the Bill which impact on us personally and others like us who, having discovered this country, want to devote considerable resources to preserving, protecting and enhancing it," Kayne wrote.
In September, the Herald reported how Tara Iti ranked 29th on the influential Golf magazine's prestigious list of the world's top 100 courses.
Kayne told of his expansion plans here.
"I am a New Zealand resident, having met (exceeded) the criteria under the Investor Plus Visa. We now own - alongside our investment - a house here in which we live. We are building another house which, once finished, will be our permanent home in New Zealand in which we will live in for significant amounts of time I am now spending more than 100 days each year in New Zealand.
"Prospective future developments akin to Tara Iti that I am presently considering investment in, that by their nature result in a small number of premium home sites and guest cottages, are now being reconsidered due to the small potential purchaser pool that the bill will allow to purchase such properties.
"The bill's restriction of potential purchases for premium properties created from such developments creates an unacceptable level of risk and reduced economic return."
Under the proposed law, Kayne said he would be classed as "an overseas person despite being a New Zealand resident." That means he would need to sell any new house he builds within 12 months.
"It seems counter-intuitive to allow me to be a New Zealand resident under existing Immigration Act provisions while requiring me to then sell my residence under Overseas Investment Act provisions," Kayne complained.