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4. Barriers to investment
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Foreign investment is considered a key factor for boosting the domestic economy, the New Zealand Government encourages foreign investment. However, there are some policy or de facto restrictions on foreign investment in certain areas according to the relevant investment measures of New Zealand. The restricted areas are mainly as follows:

4.1 Investment involving land

Pursuant to Overseas Investment Act 2005 and Overseas Investment Regulations 2005, stringent restrictions are imposed on foreign interests to acquire land or relevant assets that are deemed sensitive, such as farms, beaches, sea beds, river beds, lake beds, and relevant warrants). According to the above laws and regulations, the Overseas Investment Office shall enhance supervision on the approval of foreign access to the sensitive areas. The more land the foreign investor wishes to acquire in New Zealand, the more difficult to get the proposal approved. Prior to the acquisition, the foreign investor is required to submit detailed land administration plan to the Government which enjoys priority in purchasing beaches, sea beds, river beds, and lake beds, and has the right to deny foreign access to the above land. After the acquisition of the land, the investor is subject to further supervision and required to report at regular intervals how the agreement is implemented.

4.2 Restrictions by sector

In New Zealand, it is difficult for foreign investors to gain access to such monopolized sectors as fishery, spectacles making, energy development and supply, and printing. Take fishery for example, a foreign person is not allowed to have interests of more than 24.9 percent in a commercial fishing company. Besides, any foreign investor is required to apply to the competent authority to obtain the fishing quota. This has limited foreign access to these sectors.

Although the New Zealand Government removed part of agencies monopolizing these sectors at the end of 2001, such as the Apples and Pears Authority, vertical manage ment is conducted by State-owned Enterprises over the distribution of agricultural and farming products such as diary products and kiwifruits. These SOEs control the purchase, marketing, processing, transportation, and storage of these products and have the decision-making power. Though there are no explicit restrictions on foreign investment in these sectors, foreign investors can hardly gain access to the highly monopolized market.

4.3 Resource management

The Resource Management Act of 1991 created a three-layer regulatory system involving national, regional and local authorities that requires businesses to acquire a resource content, or permit, for most types of business activity, including gas and water discharge, and waste disposal. However, it is an inconsistent system in which each of the country's different local authorities interprets the law in its own way. Issues regarding environmental protection are made complicated by the system and a process can take as much as two years. The system has created an unnecessary burden to related enterprises by increasing the operating cost of these enterprises.

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