Now, during his State of the Nation speech, Prime Minister Christopher Luxon announced a new foreign investment agency with the aim of driving more overseas revenue to our shores. It's a model based on Ireland in Singapore, and we'll see Invest New Zealand become part of New Zealand Trade and Enterprise, which will become an autonomous Crown entity. Oliver Hartwich is the executive director for the New Zealand Initiative and he joins me, now, thanks for your.

Now, during his State of the Nation speech, Prime Minister Christopher Luxon announced a new foreign investment agency with the aim of driving more overseas revenue to our shores. It's a model based on Ireland in Singapore, and we'll see Invest New Zealand become part of New Zealand Trade and Enterprise, which will become an autonomous Crown entity. Oliver Hartwich is the executive director for the New Zealand Initiative and he joins me, now, thanks for your.

Time, Oliver, Yeah, good morning.

Time, Oliver, Yeah, good morning.

You took I believe you took the Prime Minister on overseas trips to see how a model like this could work. What do you make of the announcement.

You took I believe you took the Prime Minister on overseas trips to see how a model like this could work. What do you make of the announcement.

I think it's a wonderful announcement because it's exactly what New Zealand needs. And you're right, we traveled with a Prime minister. We traveled with him to Switzerland and Denmark when he was a member of our group. But we also took another group to Ireland and we encountered the IDA Ireland Agency, exactly the model on which Invest New Zealand is now based, and so we saw how it works. We sought in practice and from that perspective, I can tell you this is exactly the kind of investment agency that really makes a difference, that attracts for investors to the country, and that creates jobs and opportunities. So I'm not surprised that Cristopher Luxen is enthusiastic about this model, because we were too.

I think it's a wonderful announcement because it's exactly what New Zealand needs. And you're right, we traveled with a Prime minister. We traveled with him to Switzerland and Denmark when he was a member of our group. But we also took another group to Ireland and we encountered the IDA Ireland Agency, exactly the model on which Invest New Zealand is now based, and so we saw how it works. We sought in practice and from that perspective, I can tell you this is exactly the kind of investment agency that really makes a difference, that attracts for investors to the country, and that creates jobs and opportunities. So I'm not surprised that Cristopher Luxen is enthusiastic about this model, because we were too.

What's going to be key to its success? Oliver, Well, the.

What's going to be key to its success? Oliver, Well, the.

Really important thing is actually that it goes hand in hand with liberalization of our foreign direct investment rules, because they are really complicated. We have made it extremely hard for international investors to navigate New Zealand. And so when they look at potentially investing in New Zealand currently, they will find all these rules and regulations and in the end they will ask themselves, well, if it really worth it, should be really trying to jump through all of these hoops and jump over all of these hurdles, or should we rather take our money elsewhere? And often the case is that they said, well, it's really not worth it. It's a small market, it's a small country. New Zealand is not a must have in our portfolio, it's a nice to have, And so we write they we're somewhere else, and if we change the rules if you make it easier, if you make it more welcoming to be here and to be an investor in New Zealand, then they would consider a New Zealand more. And then if they also encounter the invest New Zealand agency which takes them by the hand, guides them through the system and tells them really how New Zealand works, how the country takes them, really makes that lending in New Zealand a little bit easier, then I think we have a good chance to get way more international investment than we currently have.

Really important thing is actually that it goes hand in hand with liberalization of our foreign direct investment rules, because they are really complicated. We have made it extremely hard for international investors to navigate New Zealand. And so when they look at potentially investing in New Zealand currently, they will find all these rules and regulations and in the end they will ask themselves, well, if it really worth it, should be really trying to jump through all of these hoops and jump over all of these hurdles, or should we rather take our money elsewhere? And often the case is that they said, well, it's really not worth it. It's a small market, it's a small country. New Zealand is not a must have in our portfolio, it's a nice to have, And so we write they we're somewhere else, and if we change the rules if you make it easier, if you make it more welcoming to be here and to be an investor in New Zealand, then they would consider a New Zealand more. And then if they also encounter the invest New Zealand agency which takes them by the hand, guides them through the system and tells them really how New Zealand works, how the country takes them, really makes that lending in New Zealand a little bit easier, then I think we have a good chance to get way more international investment than we currently have.

Oliver, how long do you think it will take to make those changes to the rules of legislature.

Oliver, how long do you think it will take to make those changes to the rules of legislature.

Oh, the legislative changes are easy. You could basically do them almost overnight. But you have to create an agency, and you have to create an agency with a right mindset. We have New Zealand Trade and Investor of course right now, and that is part of their role also right now to attract international investors. But the mindset so far has been to are always be a bit careful, really emphasize the risks and really make sure that we are getting the right kind of investors. We have to turn them one set into something that really wants investors. I mean that's what Ireland's done. Ireland at one stage decided they no longer wanted to be the poor house of Europe, and then they had this mindset to really get cracking and really change things and attract investors. And we have to do exactly the same.

Oh, the legislative changes are easy. You could basically do them almost overnight. But you have to create an agency, and you have to create an agency with a right mindset. We have New Zealand Trade and Investor of course right now, and that is part of their role also right now to attract international investors. But the mindset so far has been to are always be a bit careful, really emphasize the risks and really make sure that we are getting the right kind of investors. We have to turn them one set into something that really wants investors. I mean that's what Ireland's done. Ireland at one stage decided they no longer wanted to be the poor house of Europe, and then they had this mindset to really get cracking and really change things and attract investors. And we have to do exactly the same.

So, Oliver, how soon do you expect it to start drawing in more overseas investment.

So, Oliver, how soon do you expect it to start drawing in more overseas investment.

I hope within the next month. I mean, the signal that I'm just sending out is positive. The signals for the world is we are open for business, we want you here. And that's quite a change of mindset, and I think if we continued on that path, that change could happen quite quickly.

I hope within the next month. I mean, the signal that I'm just sending out is positive. The signals for the world is we are open for business, we want you here. And that's quite a change of mindset, and I think if we continued on that path, that change could happen quite quickly.

And look, as you've been traveling to Singapore and Ireland, anything, did you pick up on anything we need to be aware of to you know that potentially you know might be wrong or we addressed sort of any issues that may arise.

And look, as you've been traveling to Singapore and Ireland, anything, did you pick up on anything we need to be aware of to you know that potentially you know might be wrong or we addressed sort of any issues that may arise.

No. I think what we have to do is actually we just have to make the case. We have to explain that this is worthwhile. I can totally one experience we had in Ireland. We have hosted the Irish Economics Minister at the time and he told us that he could not travel to a single place in Ireland, and not even the smallest village without being asked by the locals, hey, minister, what can you do to get foreign investment into our area? And then we asked success, well would that happen in New Zealand And the answer was probably not because here we haven't actually learned to actually appreciate the benefits of foreign investment. We always think about them as risks. We think about them as becoming tenants in our own country, boards selling out about losing control. The Irish narrative was different. The Irish narrative was always what can this investment do for us? How many jobs can it create? How much opportunity do we get out of it? How much growth do we create out of this? So it was a growth mindset and that's what the Primus had talked about yesterday. He said we should actually think about what can it do to make the economy grow? What can it do to make New Zealand a better place? And that should be our mindset rather than thinking what are they any potential risks?

No. I think what we have to do is actually we just have to make the case. We have to explain that this is worthwhile. I can totally one experience we had in Ireland. We have hosted the Irish Economics Minister at the time and he told us that he could not travel to a single place in Ireland, and not even the smallest village without being asked by the locals, hey, minister, what can you do to get foreign investment into our area? And then we asked success, well would that happen in New Zealand And the answer was probably not because here we haven't actually learned to actually appreciate the benefits of foreign investment. We always think about them as risks. We think about them as becoming tenants in our own country, boards selling out about losing control. The Irish narrative was different. The Irish narrative was always what can this investment do for us? How many jobs can it create? How much opportunity do we get out of it? How much growth do we create out of this? So it was a growth mindset and that's what the Primus had talked about yesterday. He said we should actually think about what can it do to make the economy grow? What can it do to make New Zealand a better place? And that should be our mindset rather than thinking what are they any potential risks?

Oliver, thank you so much for your time this morning. Nice to talk to you, Oliver. Heart which is the executive director for the New Zealand Initiative. For more from Early Edition with Ryan Bridge, Listen live to news talks.

Oliver, thank you so much for your time this morning. Nice to talk to you, Oliver. Heart which is the executive director for the New Zealand Initiative. For more from Early Edition with Ryan Bridge, Listen live to news talks.

It'd be from five am weekdays, or follow the podcast on iHeartRadio

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