Campaign Against Foreign Control of Aotearoa: WHO OWNS NEW ZEALAND?

Foreign direct investment (ownership of companies) in New Zealand increased from $9.7 billion in 1990 to $46.6 billion in 1996 - an increase of over 450%.

Foreign owners now control nearly 65% of the NZSE40 companies (the top 40 companies listed on the Stock Exchange). In 1989, the figure was 19%.

In 1996* alone, the Overseas Investment Commission approved foreign investment totalling $6.8 billion (the Commission only has to approve company takeovers involving $10 million or more). latest available statistics.

The area of rural land sold to foreigners has increased from 41,900 hectares in 1991 to 86,000 in 1996.

The biggest foreign owners of New Zealand are: America, Australia, Britain, Singapore, Europe, Canada, Hong Kong, Japan. The Asian countries come a long way behind the others.

Transnational corporations (TNCs) are making massive profits out of New Zealand. For the 1996/97 financial year, US-owned Telecom made a $581 million profit. It pays out never less than 70% of annual profits as dividends to its owners, and some years more than 90%. TNC profits can truly be called New Zealand's biggest invisible export and have a major deletrious effect on our balance of payments.

Foreign "investment", in the great majority of cases, is actually a takeover, not investment at all.

Foreign ownership does not guarantee more jobs. In fact, it quite often adds to unemployment. US-owned Telecom is making 40% of its New Zealand workforce redundant.

Foreign ownership does nothing to improve New Zealand's foreign debt problem. In 1984, total private and public foreign debt stood at $16 billion. In 1997, it is $75.5 billion - despite a decade of public asset sales and takeovers.

Ownership means political power. The finance markets constantly threaten to move their money out if policies are enacted that they disapprove of.

Foreign control means recolonisation, but by company this time, not country.

Nearly everything that has been done to New Zealanders in the past decade has been done to "make the New Zealand economy attractive to foreign investment". This is what it all means to ordinary New Zealanders - we are involuntary competitors in the race to the bottom.

WHAT CAN WE DO ABOUT IT?

Quite understandably, this is the one question asked most frequently of us (and similar groups). We outline a few suggestions.

Join CAFCA, subscribe to Foreign Control Watchdog. We have a vested interest in suggesting that (and in urging you to financially support the CAFCA/ABC Organiser Account). But the fact is that we have probably the best specialist knowledge on the subject, outside of the inner circles of the political and business collaborators of the transnationals. It is important to remember that our perspective on the subject is internationalist, progressive nationalist, Leftwing and anti-racist. Not to mention a wealth of facts.

Fine, that's given away more money, but what can I do?

If you attach importance to the Parliamentary system, then get involved in the party of your choice and work actively to ensure that it serves the interests of the New Zealand people, not local or international Big Business. The introduction of MMP changes the game and opens the way for greater Parliamentary representation by people who share our viewpoint. CAFCA doesn't endorse any particular party nor parliamentarism as a whole. We recognise it, however, as a legitimate means of advancing the cause. MMP opens the prospect of working alliances with likeminded people from all major parties - National, Labour, Alliance, New Zealand First.

OK, that might lead to somebody representing me but what can I actually do?

Raise your political consciousness. Educate yourself about foreign control in all its manifestations. It affects us in so many areas of our daily lives. You don't need to study obscure academic texts; just read the papers with a critical mind. You'll find an awful lot just from the business pages and general news. Reject defeatist thinking. You are neither alone nor powerless.

Individually, you can do the time honoured letterwriting, earbashing your MP, etc. Or you can individually fight back by doing something like refusing to pay a hospital bill. That single action is a blow against the New Right, and their transnational backers. Never underestimate the power of an informed and determined individual. Multiplied, that is a mass civil disobedience campaign.
And it works - hospital charges have been scrapped.

Collectively, get actively involved in any of the myriad campaigns fighting the transnational agenda: trade unions; groups fighting the commercialisation and privatisation of our electricity, health and education systems; groups fighting for beneficiaries and State house tenants; groups fighting for the environment; groups fighting for justice for Maori and women. But don't restrict your vision to the single issue. Recognise that all these campaigns are fighting a common foe and that the fight of all these groups is yours also. For the same reason, support similar struggles overseas. We face a global foe. But one that is certainly not invincible. These are some first steps towards defeating it.

CAFCA
Campaign Against Foreign Control of Aotearoa
PO Box 2258, Christchurch
email: cafca@chch.planet.org.nz

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