As per the media reports, the government is all geared up to scrap rules preventing the sale of strategic assets to foreigners, as it feels this will help New Zealand in recovering from recession.

The move comes as a part of an overhaul of the Overseas Investment Act, which, according to the National Government, is discouraging investments by foreigners.

An advisory group in the month of March was appointed by Finance Minister Bill English, with the aim of reviewing the regime. The regime seemed to be quite complicated, which was hindering foreign investment.

The previous Labour-led government rushed in the rules protecting strategic assets, in order to block the takeover of Auckland Airport by a Canadian pension fund.

On Thursday, Mr. English said: "Overseas investors will still need to go through a screening test to buy assets such as the airport, but the test will be simpler and clearer."

He continued: "The changes are needed to reduce red tape. The new test will give foreigners more certainty and encourage them to invest in New Zealand while protecting key assets."