I get upset by media and politician who really seem to confuse terms. Oversea purchase of an existing asset is not the same as overseas investment. When an overseas company (or individual) buys an existing asset it is a transfer of ownership (not investment).
Investment occurs when more money is put into an asset and that money is used to purchase more capital assets. When those capital assets operate they create wealth. (in some case it might be possible to use unused assets but Auckland Airport assets are not unused)
Before Telecom was sold by the government, they (the government) had invested billions of dollars in new capital. This meant the new owners did not have to invest in the business for years.
Worse, when Contact Energy was sold (with Edision Mission (?) having a 40% shareholding) one of the first actions of the new owners was to dismantle generation plant and export that equipment (I think to China). No new investment from Contact Energy occurred to well after it was sold to Origin Energy.
In my opinion any investment in New Zealand from overseas must include provision that there is more than change of ownership. There must be commitment to growing assets and employing people. If not I can see no reason to have oversea ownership. Why let NZ assets be used for the same purpose where all the profit returns to China, India, Brazil or Australia (the rest of the world appears to be in recession so is unlikely to be able to invest in NZ right now)
Some say that buying shares is investing. Actually this is more like saving or in some cases gambling. If you buy shares and that money is used to build something productive that is probably investment. And if you have money in a business that converts profits in to increasing capital investment then that is partly investment.
However most people who buy shares just buy into existing businesses who do little increase in investment. Many do less that replace their existing depreciation assets.
In fact building a new house is closer to investing than buying shares in many businesses. Buying shares can be less investing that saving money in a bank account as banks will lend your maney for profit. And some of that money may be used by businesses to expand.
For NZ we need to save, stop borrowing to buy the latest gadget
end of rave
