In the bigger scheme of things, Aotearoa - New Zealand is still a magical place. A country of authenticity, cultural richness and in many places, a backyard like no other. We live in a time however, where our future is uncertain. Our current path – our legacy, is questionable and without intervention and a clear vision for where we wish to go, we are destined to follow the path of a world currently on a tipping point. On returning from Beijing last November, I shared the idea that we needed to get smarter in our approach to attracting and managing inwards investments. Over the last few months a concept has developed in my thinking and this I have shared with a number of influential people. The feedback has been nothing but positive. The idea is around developing a proactive local policy and partnerships that not only celebrate and care for our people and our place, but importantly, create a legacy that ensures we leave our backyard in a better place for our future kaitiaki. The aim is to develop a framework that proactively promotes and manages inwards investment (internationally and domestically) that sees the Far North grow and develop in line with the expectations of our district vision; He Whenua Rangatira – A District of Sustainable Prosperity and Wellbeing. Simply put, we really do need to get smart! Develop a way forward that identifies and enables sustainable and innovative methods that support an environment (people and place) of respect, authenticity and prosperity. The motivation behind this is that currently foreign inward investment is managed by the OIO (and other government agencies). Local Government has little if any influence on this decision. I believe we can better manage this at the onset by being clear and proactive. Recognising that any investment relationship needs to be mutually beneficial, the framework would aim to provide clarity and support for potential investors to understand the opportunities and the support networks and the terms in which these can be taken advantage of. Noting that such a framework would naturally identify areas that are not supported for investment. In a nutshell, the approach would be five fold. Address landownership models – focusing on partnership, lease and other relationships rather than foreign ownership. Two, promote robust investment opportunities that focus on industry we wish to encourage (e.g. tourism, aquaculture, horticulture, forestry, marine, farming, energy and manufacturing). Three, identify and legislate areas within the District Plan that promote and enable specific industry development. Four, identify and strengthen key relationships that benefit our communities/district, investors and government. Such as investigating developing Public - Private Partnerships that sustain investment and mutual returns and five, develop processes that support efficiency and cost effectiveness for industry development. The concept is currently sitting with two ministers. I plan to continue to advocate and work towards progressing the idea into a feasible case over the next few months.
4 Comments
William Schwass
3/1/2018 08:56:48 am
It is no secret and it is openly acknowledged by the Chinese that ‘global expansion’ of its economy furthers its influence strategically and thus at the end of the day politically. Look at the huge embassies in the tiny pacific nations of Vanuatu and Tonga where it seeks to influence politics in the name of trade and fishing votes. Trade with China needs to be on New Zealands terms as I think you are suggesting but there are dangers in not having a coherent national policy where we are all paddling our waka in the same direction. Diversive local policies as opposed to clear National strategies leads to confusion amongst business and politics from both sides, leading to a politised talk fest and inefficiencies beaucrats brings.
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Simon Upperton
3/2/2018 09:24:05 am
Hi Tania, I am surprised you have only heard positive feedback on your proposal and perhaps the audience you have addressed is selective. To fragment policy on foreign ownership by region rather than a national policy approach is fraught with all sorts of conflicts and complications. (as the poster above also states) Personally I wouldn't trust local government with that sort of responsibility. The issue under the last National government was that they were in complete denial in regards the level of foreign buying and ownership. They also allowed flagrant abuse of the law in regards foreign ownership and it was quite obvious there was dodgy money being funneled into the NZ property market. How do I know this? As soon as it was a requirement of all buyers to have an IRD number, the foreign buying ceased. The auction rooms in Auckland changed demographic almost overnight. So at least the Nats got one thing right in this area, although it was very late in the piece. Your proposal of long term leases is obviously not new, however it is a good one and at least it returns ownership to NZ eventually. I am not against foreign ownership, in fact some is obviously necessary, but it needs to be far better managed than it has been in the recent past. As badly as it has been managed recently, it doesn't mean local government is the place for the responsibility to lie. Regards Simon
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Tania McInnes
3/3/2018 06:59:13 am
Thank you William for your wise words. Totally agree that we can not have policy that 'contradicts' itself. This is the beginning of a journey and we need to be open to where it might lead, noting that the outcome must be to better manage our future. The reason I have shared this with central government people is that it has to be a joint approach to support the kaupapa. Thanks again for your thoughts.
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Tania McInnes
3/3/2018 07:10:06 am
Thank you Simon for your thoughts also. I appreciate your openness. Obviously I generally agree with you and note that your major concern appears to be who the authority sits with. As noted in my previous comment, this is the beginning of a journey. Currently this type of legislation sits with government. Personally, my thinking is that whatever comes of this, it is perhaps managed by an independent body, with clear links to government. On a personal note, I do hope that we can build confidence in local government.. II can do a lot of good!
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