A farmer uses a threshing machine as he harvests wheat crop in Arbeen, in the eastern Damascus suburb of Ghouta June 1, 2014. War and drought have cut Syria's wheat forecast to between 1 million and 1.7 million tonnes, agricultural experts and traders say
A farmer uses a threshing machine as he harvests wheat crop in Arbeen, in the eastern Damascus suburb of Ghouta June 1, 2014. War and drought have cut Syria's wheat forecast to between 1 million and 1.7 million tonnes, agricultural experts and traders say. Before the conflict, it typically produced around 3.5 million tonnes a year. Picture taken June 1, 2014. REUTERS/Diaa Al-Din (SYRIA - Tags: POLITICS CONFLICT FOOD AGRICULTURE CIVIL UNREST BUSINESS COMMODITIES)

Labour MP Stuart Nash has called up the John Key government to institute an audit of overseas investment applications in New Zealand to ascertain whether they are really adding value to the country. The law maker expressed concern at the lack of transparency in approving foreign investment proposals.

The Opposition MP noted that there were instances in the past when applications to buy sensitive land were declined by the Overseas Investment Office. But surprisingly, no application has been rejected in the past three years. Nash reminded the government that people wanted to be assured that these applications are transparent. The MP said there was a feeling in the investment community that once the applications are approved, they can do whatever they want. Nash said the thinking seems to be, "Oh well, let's do what we want to do regardless of what we promised." In New Zealnd, sensitive land has been defined as land of five hectares or more, a property with business worth more than $100 million, or with a fishing quota, reported Radio Nz.

Support From Farmers

The Labour MP's demand for investment audit drew instant support from Federated Farmers. Its president William Rolleston said the Federation fully supported it. He said farmers welcomed direct overseas investment in New Zealand, but sensitive assets such as farm land needs to show demonstrable benefits to the country. He said there has to be constant monitoring and enforcement to ensure that the promised benefits are being delivered. Rolleston noted, "If an overseas investor can add something that New Zealanders can't or won't provide, there is a benefit. On the other hand, if the strategy is to simply buy up swathes of farmland and create a vertically integrated enterprise, and take it out of New Zealand's control, then it becomes a matter of concern."

The farmer leader told Scoop News that there is lack of information in knowing whether the applicants are really keeping the promises or merely pursuing own agenda. There are norms that the Overseas Investment Office to obtain written information on complaince to the conditions for approving the applications. "But these apparently are only desk-top exercises and OIO officers do not visit the properties to see for themselves. Stuart Nash is right to question whether there is a serious monitoring deficiency after the overseas investment approvals process," Rolleston said.

National Register

Federated Farmers had been vocal in demanding the government to establish a national register of foreign ownership. But it received a lukewarm response from the government, which wanted to study the outcome of a similar register in Australia. Rolleston reiterated the demand for an overseas land ownership register and said it was a sensitive issue and vital to all New Zealanders.

(The writer can be contacted with feedback at kalyanaussie@gmail.com)