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Overseas Investment Act 2005

National security and public order risks management regime - Miscellaneous provisions

127: Regulations regarding transactions of national interest and overseas investments in SIB assets

You could also call this:

"Rules to protect New Zealand from risky investments"

Illustration for Overseas Investment Act 2005

The Governor-General can make rules about certain types of investments in New Zealand. You need to know that these rules are made to help keep New Zealand safe and secure. The Minister helps the Governor-General make these rules and must think about what is best for New Zealand and its international obligations.

When the Minister is making rules about what businesses are important to New Zealand's safety, they must make sure the rules are not too broad. You can think of it like drawing a circle around the businesses that need extra protection. The Minister must be careful not to make the circle too big. The rules can say what makes a business important, like where it is located or what it does.

The Minister can also make rules about when people need to tell the government about certain investments. The government has a special process for handling these investments, and the rules help make sure everything runs smoothly. If you want to know more about how the government publishes these rules, you can look at Part 3 of the Legislation Act 2019.

The government makes these rules to help manage risks to national security and public order. The rules are like a set of instructions that help keep New Zealand safe. The Minister and the Governor-General work together to make sure these rules are fair and effective.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS359910.

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Part 3National security and public order risks management regime
Miscellaneous provisions

127Regulations regarding transactions of national interest and overseas investments in SIB assets

  1. The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes:

  2. prescribing classes of technology that are or are not military or dual-use technology:
    1. prescribing classes of information that are not sensitive information:
      1. prescribing classes of businesses that are or are not strategically important businesses:
        1. prescribing classes of transactions that are not—
          1. transactions of national interest:
            1. call-in transactions:
              1. overseas investments covered by the emergency notification regime:
                1. overseas investments in SIB assets:
                2. prescribing a date for notification for the purposes of section 86.

                  1. The Minister must have regard to New Zealand’s international obligations when making a recommendation relating to a regulation for the purposes set out in subsection (1)(a) to (e).

                  2. The Minister must, before making a recommendation for the purpose set out in subsection (1)(c) that applies in section 82, be satisfied that a class of business is not broader than is reasonably necessary to manage risks to national security or public order.

                  3. Regulations made under subsection (1)(c) may prescribe a class of business using 1 or more of the following methods:

                  4. minimum criteria for a business to be a strategically important business (for example, minimum capacity of a generator):
                    1. the geographic area in which the business is located or provides services:
                      1. any other circumstances in which the business must operate.

                        1. Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                        Notes
                        • Section 127: inserted, on , by section 52 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).
                        • Section 127(5): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).