VZCZCXRO0907
PP RUEHNZ
DE RUEHWL #0009/01 0140510
ZNR UUUUU ZZH
P 140510Z JAN 08
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC PRIORITY 4993
INFO RUEHBY/AMEMBASSY CANBERRA PRIORITY 5064
RUEHNZ/AMCONSUL AUCKLAND PRIORITY 1589
RUEHDN/AMCONSUL SYDNEY PRIORITY 0622
RUCPCIM/CIMS NTDB WASHDC PRIORITY
RUEHRC/USDA FAS WASHDC PRIORITY 0375
RUCPDOC/USDOC WASHDC PRIORITY 0202
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHC/DEPT OF LABOR WASHDC PRIORITY

UNCLAS SECTION 01 OF 08 WELLINGTON 000009 
 
SIPDIS 
 
SIPDIS 
 
EAP/ANP, EEB/IFD/OIA, STATE PASS TO USTR 
 
E.O. 12958: N/A 
TAGS: EFIN EINV ELAB ETRD KTDB PGOV OPIC USTR NZ
SUBJECT: 2008 INVESTMENT CLIMATE STATE FOR NEW ZEALAND 
 
REF: STATE 158802 
 
¶1. Following is Post's submission for the 2008 Investment 
Climate Statement (ICS) regarding New Zealand per request 
reftel. 
 
¶2. Begin text of ICS submission: 
 
2008 Investment Climate Statement - New Zealand 
 
Openness to Foreign Investment 
------------------------------ 
 
Foreign direct investment in New Zealand is generally 
welcomed and encouraged without discrimination. 
 
New Zealand screens certain types of foreign investment 
through the Overseas Investment Office (OIO).  Amid growing 
public concern about purchases of coastal properties by 
foreigners, the New Zealand government enacted legislation in 
August 2005 that toughened the screening and monitoring of 
land purchases, but raised the minimum threshold that 
triggers a review of proposed business purchases.   Under the 
legislation, government approval is required for non-land 
business investments of NZ $100 million or more, where a 
foreigner proposes to take ownership or control of 25 percent 
or more of a business.  Government approval also is required 
for purchases of land larger than 5 hectares (12.35 acres) 
and land in certain sensitive or protected areas.  Any 
application involving land must meet a national interest 
test.  For land purchases, foreigners who do not intend to 
live in New Zealand must provide a management proposal 
covering any historic, heritage, conservation or public 
access matters and any planned economic development.  That 
proposal would have to be approved and generally made a 
condition of consent.  Overseas purchasers also must 
demonstrate the necessary experience to manage the 
investment. 
 
In addition, investors would be required to report regularly 
on their compliance with the terms of the consent.  The OIO 
monitors foreign investments after approval.  If foreign 
investors are found to have included deceptive statements on 
approval applications, the High Court can order the disposal 
of their New Zealand holdings.  A U.S. citizen in November 
2005 became the first person to be convicted of breaching the 
Overseas Investment Act 1973, for failing to meet the 
conditions of the government's consent to his purchase of 
land.  In the three years since purchasing the property, he 
had not developed a chestnut orchard or fir tree plantation 
as promised.  A district court fined him NZ $17,000 and 
ordered him to pay legal costs of NZ $5,000. 
 
As of the 2007 statistical year, the level of total outside 
investment in New Zealand was valued at US$193.2 billion, an 
increase of US$14.7 billion over 2006.  Australia was the 
largest source of foreign investment in New Zealand valued at 
US$60billion and the destination of US$23 billion of New 
Zealand's investment abroad.  The level of New Zealand total 
investment abroad in 2007 was US$84.5 billion, an increase of 
US$4.9 billion over 2006.  Australia, the United States and 
the U.K respectively are the three largest sources of foreign 
direct investment (FDI) in New Zealand. For 2007, the level 
of U.S. FDI equaled US$1.5 billion amounting to 16% of FDI in 
New Zealand with Australia at 59% and UK at 6% of FDI 
respectively. 
 
The OIO, part of Land Information New Zealand, took over the 
functions of the Overseas Investment Commission in August 
¶2005. 
 
In practice, the government's approval requirements have not 
been an obstacle for U.S. investors.  Very few applications 
have been turned down (only 46, versus 1,555 granted, from 
2000- 2007), and those usually involved land intended for 
farming purposes, residential subdivision or accommodation. 
In 2007, 127 applications were approved estimated to be worth 
US$19billion in contrast to 4 refused applications worth 
US$1.5million. 
 
Very few government-owned enterprises remain to be 
privatized. The government has not discriminated against 
 
WELLINGTON 00000009  002 OF 008 
 
 
foreign buyers, but has in place limitations on foreign 
ownership of Air New Zealand and Telecom New Zealand. 
 
The New Zealand government offers virtually no incentives for 
foreign investment, except for a tax rebate for large-scale 
film and television projects produced in the country.  A 
stable, low inflation environment and relatively open economy 
are viewed as the strongest incentives for investment. 
 
There is no capital gains tax. New Zealand has agreements 
banning double taxation with 29 countries, including the 
United States.  (Such an agreement between New Zealand and 
Poland was signed in 2005 but is not yet in force.)  The 
corporate tax rate is 33 percent for all companies, domestic 
and foreign.  The personal tax rate for most foreign 
investors (from the combined effects of New Zealand's 
nonresident withholding tax and company tax) also is 33 
percent, although the maximum personal tax rate is 39 
percent. 
 
Under legislation passed in 1995, foreign firms and investors 
were granted national treatment on corporate taxes; 
transfer-pricing rules were aligned so that New Zealand 
adheres to Organization for Economic Cooperation and 
Development (OECD) practices; and, thin capitalization 
regulations were tightened to discourage foreign companies 
from using excessive debt to avoid New Zealand taxes. The 
rules offer foreign investors greater transparency and 
predictability. 
 
The Overseas Investment Office operates a comprehensive 
Internet website (www.oio.linz.govt.nz) that explains New 
Zealand investment policy and walks potential investors 
through the application process. 
 
Investment New Zealand, the government's investment promotion 
agency, works with offshore investors to facilitate 
investment in New Zealand. Information about the agency and 
contact details for its offices in the United States can be 
obtained from its website http://www.investnewzealand.govt.nz. 
 
Conversion and Transfer Policies 
-------------------------------- 
 
There are no restrictions on the inflow or outflow of 
capital, and the currency is freely convertible. Full 
remittance of profits and capital is permitted through normal 
banking channels. 
 
Expropriation and Compensation 
------------------------------ 
 
Expropriation has not been an issue in New Zealand, and there 
are no outstanding cases. 
 
Dispute Settlement 
------------------ 
 
Investment disputes are extremely rare, and there have been 
no major disputes in recent years. The mechanism for handling 
disputes is the judicial system. New Zealand is a party to 
the Convention on the Settlement of Investment Disputes 
Between States and Nationals of Other States and to the New 
York Convention of 1958.  Property and contractual rights are 
enforced by a British-style legal system. The highest appeals 
court is a domestic Supreme Court, which replaced the Privy 
Council in London and began hearing cases July 1, 2004. 
 
Performance Requirements and Incentives 
--------------------------------------- 
 
There are no performance requirements or incentives 
associated with foreign investment, although the government 
may require foreign buyers of land to report periodically on 
their compliance with the terms of the government's consent 
to their purchase. 
 
Right to Private Ownership 
-------------------------- 
 
There are no restrictions on the right to establish, own and 
operate business enterprises, aside from the requirement for 
 
WELLINGTON 00000009  003 OF 008 
 
 
government approval of foreign investments over NZ $100 
million where a foreigner proposes to take ownership or 
control of 25 percent or more of a business, investments in 
commercial fishing and certain land purchases, and limits on 
investments in Air New Zealand and Telecom New Zealand. 
 
A number of government entities have been transformed into 
state owned enterprises (SOEs), and a number of SOEs have 
been privatized. Aside from the government equity holdings 
established at the time of formation, SOEs are provided no 
special advantages in their competition with private 
entities. In general, there has been no restriction on 
foreign purchasers in the privatization of assets. There is 
no limit on foreigners buying into any sector or acquiring 
100 percent ownership of any firm, except for the ceilings on 
foreign ownership stakes in Air New Zealand and Telecom New 
Zealand.  To preserve landing rights, no more than 49 percent 
of Air New Zealand, the national flagship carrier, can be 
owned by foreigners. A single foreign investor can hold a 
maximum of 49.9 percent of the total voting shares of Telecom 
New Zealand.  In addition, under the Fisheries Act 1983, 
foreigners can only lease New Zealand fishing rights. 
 
Protection of Property Rights 
----------------------------- 
 
New Zealand is a member of the World Intellectual Property 
Organization, the Paris Convention for the Protection of 
Industrial Property, the Berne Convention and the Universal 
Copyright Convention. It fulfilled its TRIPS Agreement 
obligations in most respects with the passage of the 
Copyright Act 1994; Layout Designs Act 1994; and 1994 
amendments to the Patents Act 1953, the Trade Marks Amendment 
Act 1953 and the Plant Variety Rights Act 1987. Amendments 
made to existing intellectual property statutes came into 
force January 1, 1995.  The Trade Marks Act 2002 created new 
criminal offenses for counterfeiting trademarks and increased 
the penalties for pirating copyright goods.  The Ministry of 
Economic Development released for public comment in December 
2004 the draft Patents Bill intended to replace the Patents 
Act 1953 and to bring New Zealand's patent law into closer 
conformity with international standards.  This draft would 
keep the maximum patent term at 20 years, but would tighten 
the criteria for granting a patent, from a patentable 
invention being new in New Zealand, to being new anywhere in 
the world and involving an inventive step.  The bill is 
expected to be introduced into Parliament by mid 2008 and 
expected to be in force by end of 2008.  The stated purpose 
of the Bill is to ensure that New Zealand's patent regime 
takes account of international developments.  One such 
development is the international trend for countries to 
strengthen intellectual property protection through patent 
term restoration.  On average, the patent and regulatory 
approval processes for new drugs in New Zealand take about 
twelve years.  As a result, many drugs have very few years of 
patent protection remaining after the regulatory authority 
grants marketing approval.  Many countries, including the 
U.S. and EU, have established mechanisms to restore patent 
terms for pharmaceutical products to recover time lost due to 
regulatory delays.  The research-based industry has urged the 
New Zealand legislature to amend the current bill to 
include patent term restoration in keeping with international 
best practices. 
 
The New Zealand government introduced the Copyright 
Amendments Bill at the end of 2006 which passed its first 
reading.  In 2007 the legislation was sent to Select 
Committee for a comment period.  The Bill was again taken up 
by Parliament in November 2007 for a second reading but it is 
uncertain whether the Bill in its current form has sufficient 
votes to pass. If the current Bill does not pass the second 
reading before the end of this year's legislative term, then 
it is unlikely to be dealt with again until after the 
election period, i.e., 2009.  In March 2007, during the 
comment period to the Select Committee, industry agreed that 
the draft legislation would put New Zealand at odds with the 
growing international consensus with respect to protection of 
copyright in the online environment.  The international 
standards for protection of copyrightable material are 
currently set by the WIPO Internet Treaties (the WIPO 
Copyright Treaty and the WIPO Performances and Phonograms 
Treaty) of which New Zealand is not a 
 
WELLINGTON 00000009  004 OF 008 
 
 
signatory. 
 
In May 1998, the Copyright Act and the Medicines Act were 
amended to remove a prohibition on parallel importing. This 
amendment allows importation of legitimate goods into New 
Zealand without the permission of the holder of the 
intellectual property rights. Enacted by the government to 
expand discounted prices for consumers, it also has resulted 
in an increase in "gray market" goods entering New Zealand. 
Manufacturers have expressed concern that parallel imports 
will result in damage to their reputation due to imports of 
dated products, products not suitable for New Zealand 
conditions, and after-market servicing problems. In addition, 
parallel importing limits returns to the holders of 
intellectual property by not allowing control over market 
targeting, such as timing of releases. In October 2003, the 
government enacted a ban on the parallel importation of 
films, videos and DVDs for the initial nine months after a 
film's international release. 
 
Transparency of Regulatory System 
--------------------------------- 
 
The Commerce Commission administers the Commerce Act 1986, 
which governs restrictive trade practices. In general, price 
fixing and contracts, arrangements or understandings that 
have the purpose or effect of substantially lessening 
competition in a market are prohibited, unless authorized by 
the Commerce Commission. Before granting such authorization, 
the commission must be satisfied that the public benefit 
would outweigh the reduction of competition. 
 
The Commerce Commission also can block a merger or takeover 
that would result in the new company gaining a dominant 
position in the market. The use of a dominant market position 
to lessen or prevent various specified types of competition 
is contrary to the Act's provisions.  However, the 
enforcement or attempted enforcement of any right under any 
copyright, patent, protected plant variety, registered design 
or trademark do not necessarily constitute abuses of a 
dominant position. 
 
Suppliers' use of resale price maintenance, in which 
suppliers of goods set and enforce sale prices to be charged 
by re-sellers, is prohibited. Advice should be obtained on 
the application of the Act before the establishment of 
exclusive distribution, selling and franchising arrangements 
in New Zealand. 
 
Reforms adopted since 1984 have included deregulation as a 
primary objective. The most salient examples are the 
financial and telecommunications sectors, although the effort 
has been broad based. 
 
To ensure competition in "natural monopolies," such as 
telecommunications and electricity, the government has 
considered increased oversight.  Motivated largely by the 
power industry's failure to provide adequate electricity 
reserve capacity, the government set up an Electricity 
Commission, which started supervising the electricity 
industry and markets on March 1, 2004. Under the 1997 WTO 
Basic Telecommunications Services Agreement, New Zealand has 
been committed to the maintenance of an open competitive 
environment in the telecommunications sector. Key reforms of 
the sector, through legislation enacted in December 2001, 
included appointment of a commissioner responsible for 
resolving commercial disputes.  After an almost year-long 
review of the Telecommunications Act 2001, the Minister of 
Communications on August 9, 2005, announced changes to the 
act aimed at improving the monitoring and enforcement of 
agreements involving regulated services which entered into 
force on December 18, 2006. 
 
Efficient Capital Markets and Portfolio Investment 
--------------------------------------------- ----- 
 
Since the removal of financial-sector controls in the 
mid-1980s, money market activity has grown rapidly, 
particularly foreign exchange trading and a sizable secondary 
market in government securities.  A range of financial 
instruments, including forward contracts, options and 
exchange rate futures, and the use of hedging devices to 
 
WELLINGTON 00000009  005 OF 008 
 
 
reduce interest rate and exchange rate risks have been 
introduced. The New Zealand banking system consists of 16 
registered banks with more than 90 percent of their combined 
assets under the ownership of foreign banks (Australian banks 
account for 85 percent of the total). There are only two New 
Zealand-based banking institutions, the Kiwibank, introduced 
in 2001 by the Labour-Alliance government and operated out of 
the NZ Post Shops and the Taranaki Savings Bank (TSB). 
Aggregate banking system capital adequacy has been above 
minimum requirements since the introduction of Basel based 
reporting in 1989. Access to the credit system is 
unrestricted. 
 
The Securities Commission, under the Securities Act 1978 and 
amendments, regulates the issuance of securities. The Act 
requires prospectuses for public offerings of new securities 
and prescribes the information that must be disclosed. An 
amendment in 1988 provides civil remedies for loss or damages 
resulting from insider trading.  The Securities Markets and 
Institutions Bill, resulting in three amendments that took 
effect in December 2002, gave the Securities Commission 
additional powers to increase its effectiveness in monitoring 
and enforcement, including enforcement of laws against 
insider trading. Stocks in a number of New Zealand listed 
firms also are traded in Australia and in the United States. 
 
A takeovers code that took effect July 1, 2001, requires any 
person who tenders an offer for 20 percent or more of a 
publicly traded company to make that same offer to all 
shareholders. 
 
Legal, regulatory, and accounting systems are transparent. 
Financial accounting standards are issued by the Accounting 
Standards Review Board, an independent body set up under the 
provisions of the Financial Reporting Act 1993.  The Act 
makes the adoption of financial accounting standards 
mandatory for registered companies and issuers of securities, 
including entities listed on the New Zealand Stock Exchange. 
The standards generally are adopted by other entities as 
well.  The Board's accounting standards are based largely on 
international accounting standards, and by 2007 the use of 
international accounting standards will be universal. 
Smaller companies (except issuers of securities and overseas 
companies) that meet proscribed criteria face less stringent 
reporting requirements.  Entities listed on the stock 
exchange are required to produce annual financial reports for 
shareholders together with abbreviated semi-annual reports. 
 
Small, publicly held companies not listed on the New Zealand 
Stock Exchange (NZX) may include in their constitution 
measures to restrict hostile takeovers by outside interests, 
domestic or foreign.  However, NZSE rules prohibit such 
"poison pill" measures by its listed companies. 
 
Foreign-owned or controlled companies are not foreclosed from 
participation in domestic industry standards setting 
organizations. 
 
Political Violence 
------------------ 
 
New Zealand is a stable western democracy. There has been no 
significant political violence since the Maori wars in the 
mid 1800s. 
 
Corruption 
---------- 
 
New Zealand is renowned for its efforts to ensure a 
transparent, competitive, and corruption-free government 
procurement system. It is government policy to give local 
producers a fair chance to compete, but departments are 
responsible for limiting costs and seeking the best value for 
the money. Stiff penalties against bribery of government 
officials as well as those accepting bribes are strictly 
enforced. New Zealand ranked number one with a score of 9.4 
(e.g., U.S. ranked number 20 with score of 7.2) in 
Transparency International's 2007 "Corruption Perceptions 
Index," which looks at perceptions of public sector 
corruption in 180 countries and territories.  The highest 
possible score (i.e., least corrupt) is ten.  This is the 
second year New Zealand was ranked least corrupt.  New 
 
WELLINGTON 00000009  006 OF 008 
 
 
Zealand has ratified the OECD Anti-Bribery Convention.  New 
Zealand has opted not to join the GATT/WTO Government 
Procurement Agreement because the benefits would not justify 
the compliance costs amid New Zealand's totally deregulated 
government procurement system, according to the government. 
Nonetheless, New Zealand supports multilateral efforts to 
increase transparency of government procurement regimes. 
 
Bilateral Investment Agreements 
------------------------------- 
 
New Zealand in 1988 signed an agreement with China on the 
promotion and protection of investment and in 1992 signed a 
Trade and Investment Framework Agreement (TIFA) with the 
United States. New Zealand's Closer Economic Partnership 
(CEP) with Singapore (2002) and Thailand (2004) include 
investment chapters.  New Zealand concluded a Strategic 
Economic Partnership Agreement with Brunei, Chile and 
Singapore in June 2005. New Zealand is currently negotiating 
separate Free Trade Agreements with China, Malaysia and Hong 
Kong.  New Zealand adheres to the OECD Code of Liberalization 
of Capital Movements and the OECD Code on Current Invisible 
Operations. 
 
OPIC and Other Investment Insurance Programs 
--------------------------------------------- 
 
As an OECD member country and developed nation-state, New 
Zealand is not eligible for OPIC programs. New Zealand does 
not intend to become a member of the Multilateral Investment 
Guarantee Agency. The New Zealand Government does not provide 
a comparable program like OPIC to its investors. It has a 
small export credit program that has so far not attracted 
great commercial interest. 
 
Labor 
----- 
 
The overall unemployment rate decreased to 3.5 percent in the 
2007 statistical year. The number of unemployed decreased to 
79,000 persons. There were 2,150,000 persons employed in the 
workforce (out of a population of 4.24 million) yielding a 
labor force participation rate of 68.3 percent.  The demand 
for labor has been strong, and shortages of skilled labor 
remain a problem throughout the economy.  Several factors 
have caused the shortages, including lower wages compared to 
those in Australia, where any New Zealander can legally work; 
lack of training; and, falling immigration numbers.  Labor 
shortages are especially pronounced in the construction 
industry. 
 
Employees are entitled to a minimum three-week paid annual 
leave after the first year of employment.  The mandatory 
minimum will be increased to four weeks' annual leave 
beginning April 1, 2007.  Paid leave also can be taken for 
illness, bereavement or parenthood. 
 
The New Zealand Parliament passed into law the Employment 
Relations (Flexible Working Arrangements) Amendment Bill on 
November 26, 2007, which changes the Employment Relations Act 
to provide employees who care for others with the statutory 
right to request part-time or flexible hours.  The changes 
aren't limited to hours of work but can also include the 
place of work, such as working from home, compressing the 
work week into fewer days, flexi-time, staggered hours, shift 
swapping and job sharing.  The law applies to people employed 
for six months or longer.  If benefit is initially granted 
then employees must wait at least 12 months before they are 
entitled to make another request. 
 
Employers have grounds for refusing requests due to: 
-Inability to reorganize work among existing staff. 
-Inability to recruit additional staff. 
-Detrimental impact on quality or performance. 
-Insufficiency of work during the period the employee 
proposes to work. 
-Planned structural changes. 
-Burden of additional costs. 
-Detrimental effect on ability to meet customer demand. 
-Undermining the terms of a collective agreement. 
 
Unions have the right to organize and collectively bargain. 
 
WELLINGTON 00000009  007 OF 008 
 
 
About 21 percent of New Zealand's wage and salary workers are 
union members. 
 
The Employment Contracts Act 1991 (ECA) ended compulsory 
unionism and prohibited certain strikes. Overall, the law 
spurred a reduction in union membership, although some unions 
grew, particularly through mergers. In 2000, the Labour-led 
government replaced the ECA with the Employment Relations Act 
(ERA), contending the change was necessary to restore balance 
in the powers of employers and employees.  The ERA promotes 
collective bargaining, strengthens unions and places strong 
emphasis on good faith bargaining.  Employment relationships 
are based on contracts, and workers may negotiate an 
employment contract with their employer individually or 
collectively.  Despite the business sector's initial fears 
about the ERA, workdays lost to strikes have continued an 
overall steady decline since a peak in the late 1970s. 
 
From annual levels of over 400 in the late 1970s, the number 
of work stoppages has declined to relatively steady levels of 
under 100 since the 1990s. Thirty-five (35) work stoppages 
occurred in the 2007 statistical year, much fewer than the 60 
stoppages recorded in 2006.  The 35 work stoppages that 
occurred in 2007 consisted of 28 complete strikes and seven 
partial strikes. They involved 6,474 employees, and a loss of 
21,015 person-days of work and US$2.7 million in wages and 
salaries. In comparison, the 60 stoppages that occurred in 
2006 involved 16,628 employees, and a loss of 27,536 
person-days of work and US$4 million in wages and salaries. 
The manufacturing industry had the highest number of 
stoppages in 2007, with 13 of the 35 stoppages (37 percent). 
However, the health and community services industry had the 
highest number of employees involved (contributing 36 percent 
of the total). 
 
A 2004 revision of the ERA strengthened its collective 
bargaining and good faith provisions.  It provides additional 
protections for workers in the event of company ownership 
changes.  It also allows unions to charge bargaining fees for 
non-union workers who enjoy the same wages and conditions 
negotiated by unions for their members, although workers can 
opt out of paying the fee if they negotiate their own 
contracts. The government made a number of changes to initial 
drafts of the bill to address business concerns. Prospective 
entrants to the New Zealand market are encouraged to examine 
the details of the labor legislation. (Information on New 
Zealand's employment law is available on the Department of 
Labour's website, http://www.ers.dol.govt.nz). 
 
Minimum wage and workplace safety regulations are 
incorporated under other laws. An Employment Relations 
Authority handles disputes, and its decisions may be appealed 
in an Employment Court. 
 
Foreign Trade Zones/Free Ports 
------------------------------ 
 
New Zealand does not have any foreign trade zones or free 
ports. 
 
Foreign Direct Investment Statistics 
------------------------------------ 
 
As of the 2007 statistical year, the level of total outside 
investment in New Zealand was valued at US$193.2 billion, an 
increase of US$14.7 billion over 2006.  Australia was the 
largest source of foreign investment in New Zealand valued at 
US$60billion and the destination of US$23 billion of New 
Zealand's investment abroad.  The level of New Zealand total 
investment abroad in 2007 was US$84.5 billion, an increase of 
US$4.9 billion over 2006.  Australia, the United States and 
the U.K respectively are the three largest sources of foreign 
direct investment (FDI) in New Zealand. For 2007, the level 
of U.S. FDI equaled US$1.5 billion amounting to 16% of FDI in 
New Zealand with Australia at 59% and UK at 6% of FDI 
respectively. 
 
Australia continues to be New Zealand's predominant 
investment partner, both as a destination for New Zealand 
investment abroad, and as a source for foreign investment 
into New Zealand.  Australia's significance as an investment 
partner has increased over recent years.  By contrast, in 
 
WELLINGTON 00000009  008 OF 008 
 
 
2002, Australia was the destination for 19.8 percent of New 
Zealand's total level of investment abroad, and was the 
source of 19.3 percent of the total level of foreign 
investment in New Zealand.  In 2007, the U.S. and the UK, 
together with Australia, were the destination for 59.1 
percent of the level of New Zealand investment abroad, and 
the largest source of foreign investment in New Zealand. 
Portfolio investment (stocks and bonds) is the most 
significant form of New Zealand investment in the U.S. and 
the UK. 
 
The privatization of many state-owned enterprises and 
monopolies in the 1990s brought a flood of U.S. investment 
into New Zealand over a five-year period, 1994-1998. U.S. 
investment approvals amounted to NZ $8.7 billion during the 
period, or the second-largest share at 24.8 percent of total 
foreign investment approved, with Australia taking a 27.5 
percent share. 
 
U.S. investment is concentrated in the telecommunications, 
forestry, transportation, food processing and electronic data 
processing sectors. Increased U.S. investments are being 
directed into petroleum refining and distribution, financial 
services, information technology and biotechnology. 
 
Web Resources 
-------------- 
 
Commerce Commission: http://www.comcom.govt.nz 
Department of Labour: http://www.ers.dol.govt.nz 
Investment New Zealand: http://www.investnewzealand.govt.nz 
The Overseas Investment Office: http://www.oio.linz.govt.nz 
 
End text. 
Keegan