Closer monitoring of gradual foreign control needed

Closer monitoring is needed of "gradual foreign control" of New Zealand's core tourism sites, says Greens Co-Leader Russel Norman.

Referring to the proposed takeover of the country's main tourism company, Tourism Holdings, by Australia's MFS Living and Leisure Group, Dr Norman says it comes at a time of public concern over loss of coastal campgrounds and some South Island high country to foreign buyers.

"I realise Tourism Holdings has some of its business in Australia and Fiji and it has a fairly large percentage of overseas shareholders already. However, its concessions give it control in effect of some of our iconic tourism sites such as with the Bay of Islands and Milford Sound cruise boats and the Waitomo Caves.

"What we are seeing in effect is gradual foreign control of these sites and of one of our key enterprises," Dr Norman said. "Tourism and leisure remains our largest foreign exchange earner."

While the takeover is subject to Overseas Investment Office approval, Dr Norman says judging from the OIO's record it could mean little more than a rubber stamp.

The Green Party launched a foreign investment policy two years ago halting land sales to foreign investors and applying a "national interest analysis" to all proposed investments of more than $10 million where the foreign shareholding was more than 10 percent. It would apply to the Tourism Holdings takeover.

"When my predecessor Rod Donald launched the policy he said he did not want to see Kiwis become merely serfs and servants in their own land,"
Dr Norman says. "I agree with him, especially when it comes to our key properties and businesses."