Purchase of fishing quota is reserved to New Zealand citizens, residents and incorporated enterprises no more than 25% owned or controlled by foreigners, unless prior consent has been obtained for the foreign investment in fishing quota. Consent can be granted by the relevant Minister only if the investment meets all the criteria required, including meeting, or likely meeting, the various conditions of national interest stipulated in the legislation. According to the OECD FDI RR Index methodology, this measure is classified as a 'foreign equity limitation' instead of 'foreign investment screening' as the above-mentioned consent is understood to be granted on a rather exceptional basis given the conditions needed to be fullfilled.
"5 Act incorporates sections 56 to 58B of Fisheries Act 1996
(1) This Act incorporates sections 56 to 58B of the Fisheries Act 1996 (which in this section are called the overseas investment fishing provisions) as if they were part of this Act, so that a reference in this Act to “this Act” includes a reference to the overseas investment fishing provisions.
(2) See section 57A of the Fisheries Act 1996 for further provisions on the interpretation of the overseas investment fishing provisions.
[...]
7 Who are overseas persons
(1) The purpose of this definition is to provide that persons are overseas persons if they themselves are overseas persons (for example, not a New Zealand citizen or ordinarily resident in New Zealand or, for companies, incorporated overseas) or they are more than 25% owned or controlled by an overseas person or persons.
(2) In this Act, overseas person means—
(a) an individual who is neither a New Zealand citizen nor ordinarily resident in New Zealand; or
(b) a body corporate that is incorporated outside New Zealand or is a more than 25% subsidiary of a body corporate incorporated outside New Zealand; or
(c) a body corporate (A) if an overseas person or persons have—
(i) more than 25% of any class of A’s securities; or
(ii) the power to control the composition of more than 25% of A’s governing body; or
(iii) the right to exercise or control the exercise of more than 25% of the voting power at a meeting of A; or
(d) a partnership, unincorporated joint venture, or other unincorporated body of persons (other than a trust or unit trust) (A) if—
(i) more than 25% of A’s partners or members are overseas persons; or
(ii) an overseas person or persons have a beneficial interest in or entitlement to more than 25% of A’s profits or assets (including on A’s winding up); or
(iii) an overseas person or persons have the right to exercise or control the exercise of more than 25% of the voting power at a meeting of A; or
(e) a trust (A) if—
(i) more than 25% of A’s governing body are overseas persons; or
(ii) an overseas person or persons have a beneficial interest in or entitlement to more than 25% of A’s trust property; or
(iii) more than 25% of the persons having the right to amend or control the amendment of A’s trust deed are overseas persons; or
(iv) more than 25% of the persons having the right to control the composition of A’s governing body are overseas persons; or
(f) a unit trust (A) if—
(i) the manager or trustee, or both, are overseas persons; or
(ii) an overseas person or persons have a beneficial interest in or entitlement to more than 25% of A’s trust property.
[...]
10 Consent required for overseas investments in sensitive New Zealand assets [...]
(2) See also sections 56 to 58B of the Fisheries Act 1996, which require consent for a transaction that will result in an overseas investment in fishing quota.
[...]
12 What are overseas investments in sensitive land
An overseas investment in sensitive land is the acquisition by an overseas person, or an associate of an overseas person, of all or any of the following (a section 12 interest): [...]
(b) [...]
(i) the overseas person or the associate (either alone or together with its associates) has a more than 25% ownership or control interest in A; or
(ii) the overseas person or the associate (either alone or together with its associates) has an increase in an existing more than 25% ownership or control interest in A; or
(iii) A becomes an overseas person.[...]" (Overseas Investment Act (2005 No 82), last amended on 1 December 2020, Sections 5, 7, 10 and 12)
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"2 Interpretation
(1) In this Act, unless the context otherwise requires,— [...]
overseas person has the meaning set out in section 7 of the Overseas Investment Act 2005
[...]
45 Criteria of eligibility to receive quota
A person is eligible to receive quota for any stock declared by notice in the Gazette under section 18 to be subject to the quota management system if the person— [...]
(b) is not an overseas person or, if an overseas person, either has obtained consent under the overseas investment fishing provisions to acquire provisional catch history or quota or is exempt from the requirement for that consent; and
[...]
57B Consent required for overseas investments in fishing quota
A transaction requires consent under the overseas investment fishing provisions if it will result in an overseas investment in fishing quota.
57C Consent must be obtained before overseas investment given effect
(1) Consent must be obtained for a transaction before the overseas investment is given effect under the transaction.
(2) The procedure for obtaining consent (including who must obtain consent) is set out in subpart 2 of Part 2 of the Overseas Investment Act 2005.
57D What are overseas investments in fishing quota
An overseas investment in fishing quota is the acquisition by an overseas person, or an associate of an overseas person, of—
(a) an interest in fishing quota; or
(b) rights or interests in securities of a person (A) if A owns or controls (directly or indirectly) an interest in fishing quota and, as a result of the acquisition, 1 or more of the things referred to in section 12(b)﻿(i) to (iii) of the Overseas Investment Act 2005 happens.
[...]
57E Approach to criteria for consent
(1) The relevant Ministers, in considering whether or not to grant consent to an overseas investment transaction under the overseas investment fishing provisions,—
(a) must have regard to only the criteria and factors that apply under the overseas investment fishing provisions (subject to this section); and
(b) may consult with any other person or persons, as the Ministers consider appropriate; and
(c) must grant consent if satisfied that all of the criteria in section 57G are met; and
(d) must decline to grant consent if not satisfied that all of the criteria in section 57G are met.
[...]
57G Criteria for overseas investments in fishing quota
(1) The criteria for an overseas investment in fishing quota are all of the following:
(a) the relevant overseas person is a body corporate:
(b) the individuals with control of the relevant overseas person collectively have business experience and acumen relevant to that overseas investment:
(c) the relevant overseas person has demonstrated financial commitment to the overseas investment:
(d) all the individuals with control of the relevant overseas person are of good character:
(e) none of the individuals with control of the relevant overseas person are individuals of the kind referred to in section 15 or 16 of the Immigration Act 2009 (which list certain persons not eligible for visas or entry permission under that Act):
(f) the interest in fishing quota is capable of being registered in the Quota Register or the Annual Catch Entitlement Register:
(g) the granting of consent is in the national interest, as determined by the relevant Ministers under section 57H:
(h) if the overseas investment in fishing quota is a transaction of national interest, the Minister has not declined consent to the transaction (see section 20C of the Overseas Investment Act 2005).
57H Factors for determining whether or not overseas investment in fishing quota is in national interest
(1) The relevant Ministers—
(a) must consider all the factors in subsection (2) to determine which factor or factors (or parts of them) are relevant to the overseas investment; and
(b) must determine whether the criterion in section 57G(1)﻿(g) is met after having regard to those relevant factors; and
(c) may, in doing so, determine the relative importance to be given to each relevant factor (or part).
(2) The factors are—
(a) whether the overseas investment will, or is likely to, result in—
(i) the creation of new job opportunities in New Zealand or the retention of existing jobs in New Zealand that would or might otherwise be lost; or
(ii) the introduction into New Zealand of new technology or business skills; or
(iii) increased export receipts for New Zealand exporters; or
(iv) added market competition, greater efficiency or productivity, or enhanced domestic services, in New Zealand; or
(v) the introduction into New Zealand of additional investment for purposes of significant development; or
(vi) increased processing in New Zealand of fish, aquatic life, or seaweed:[...]" (Fisheries Act (1996 No 88), last amended on 1 December 2020, Sections 2, 45, 57B, 57C and 57D)
Overseas Investment Act (2005 No 82), last amended on 1 December 2020, Sections 5, 7, 10 and 12
Fisheries Act (1996 No 88), last amended on 1 December 2020, Sections 2, 45, 57B, 57C and 57D
[<a href="https://www.legislation.govt.nz/act/public/2005/0082/51.0/DLM356881.html">Act</a>],[<a href="https://www.legislation.govt.nz/act/public/1996/0088/220.0/DLM394192.html">Act</a>]