The planned review of the Overseas Investment Act would be over three broad areas, Finance Minister Bill English said.
"The review will focus on the most problematic areas of the legislation so that unnecessary barriers to foreign investment can be quickly identified and removed.
Other areas of the legislation that are cumbersome or difficult to interpret will be clarified and amended as necessary."
The three broad areas of review are:Putting in place some immediate measures, such as ensuring that more applications are decided by the Overseas Investment Office rather than ministers.
This will mean that applications are turned around more swiftly.
These measures will not require any legislative changes.
Considering changes to the Overseas Investment Regulations.
These changes will require cabinet approval.
Considering changes to the scope of the overseas investment screening regime generally, such as whether screening thresholds which determine the sorts of land considered "sensitive" should be changes.
These changes will likely require amendments to the Act.
Mr English said that in the current economic situation, access to foreign capital was particularly important for New Zealand firms.
"We also believe that, beyond the recession, overseas investment will make an important contribution to New Zealand's economic growth in the longer term."
The Government would ensure that land of particular significance or importance to New Zealand continued to be protected.
But issues such as conservation, heritage protection and walking access might already be well covered by existing legislation, he said.
Cabinet would consider recommendations from the review by June 30 and changes to the Act would be open to public submissions through the select committee process.
