Foreign Direct Investment

It is hard to introduce populist policies without hurting the economy. That is the takeout from the Government’s decision to water down its planned restrictions on foreign property buyers.

We should not be content for other countries to beat us on attracting investment. If we do not liberalise our FDI regime, New Zealanders will miss out.

If you are concerned about New Zealand’s cost of living, you should think about those regulations that have a limiting effect on supply and competition.

New Zealand affords itself the luxury of treating overseas investment as a privilege rather than as a necessary and desirable means of better integrating ourselves with the world, so as to make the most of what it has to offer.

Hong Kong and New Zealand are obviously very different economies with different political and social cultures. But if we want to make the New Zealand economy more attractive to job creating international investment, we might just try to learn a thing or two from the world’s best players in this business.

An extended TPP may have a positive effect on FDI – and New Zealand certainly needs to improve its FDI performance. But we should not expect the TPP to be a game-changer. Instead, we need to focus more on welcoming international investors, whether from TPP member countries or not.

It’s not enough for New Zealand to compete with Australia in the battle for Olympic gold. We now have to beat the Australians in the battle for foreign investment to grow the Kiwi economy. Thanks to Gillard and Abbott, New Zealand’s chances are better than ever.

Instead of interacting across borders, why can’t we withdraw and enjoy the safety of home? Why risk becoming ‘‘tenants in our own country’’ for dubious benefits derived from foreign direct investment?