New Zealand governments have long been relaxed about selling chunks of the New Zealand economy off to foreign interests. But it occurred to the current Government that, if you're going to sell us out, you don't need to do it the obvious way. The Government clearly thought that they would explore other ways. It must have seemed so easy.

All you needed to do was to assemble a collection of overseas companies, lure their chief executives or other senior executives to New Zealand, show them the promised land, and assure them that the New Zealand government would provide them with any help (including financial help), that they would find useful, assume that they had little use in preserving a land use pattern that had served New Zealand's interests very well, and hey presto - the country would have all the investment it needed. A huge boost to the New Zealand economy was virtually guaranteed.

Sadly, it never seemed possible or even likely that it would actually turn out like that. The overseas companies all have boards, as well as shareholders, back home and they would - not surprisingly - have a keen interest in seeing the benefit of these overseas ventures reflected in the returns to be made to balance sheets much closer to home. Investing in some remote island territory was all very well, but the acid test would be the boost that would be seen in the return to shareholders in the overseas territories concerned.

The profits to be made from the investment that had been made available would, in other words, go to interests that were located at a distance far removed from New Zealand. The wealth that could ordinarily be made from the exploitation of New Zealand's natural resources would not be made in New Zealand's interests or get anywhere near New Zealand but would be paid into overseas coffers. Any stimulus to the New Zealand economy would be enjoyed by us as spectators, not as investors.

But That Would Only Be The Half Of It

In the course of their operations in New Zealand, these foreign interests would have no reason to comply with other requirements that a New Zealand government would ordinarily require of all those operating in our territory. What about for example, the treatment of protected species or the preservation of natural resources that were known to be in short supply or the achievement of climate change targets?

And what of Māori interests? Would foreign firms not pay them scant regard and ride roughshod over them if they felt the need arose? And would foreign operators not be the most likely to utilise the discredited FastTrack process to throw to the winds any concerns that New Zealanders might feel about the survival of particular species or the application of policies that would restrain climate change. Shane Jones might applaud but few other Kiwis would think the risk worthwhile.

The net result of the Government laying out the welcome mat for foreign investment would be negative, however it was done. It would mean, once again, that the power of decision over issues that are central to our wellbeing and our future would have passed into foreign hands and would again be taken in foreign interests. Only a dunderhead would have expected anything different.

Watchdog - 169 August 2025