The Labour Party says the Government is priming strategic assets for sale to overseas interests.
The Overseas Investment Act is to be reviewed with a view to simplifying the rules for foreign investment
The review was announced by Finance Minister Bill English, who says the current legislation is cumbersome and the rules are often difficult to interpret.
Mr English says changes to foreign investment rules could help create jobs during the recession.
However, Labour Party leader Phil Goff says the review is a code for a readiness to make strategic assets in New Zealand available for sale to overseas interests.
Mr English says protections will remain in place for significant assets and land.
An application by the Canada Pension Plan Investment Board to take a stake in Auckland International Airport Ltd was declined last year after the previous Government tightened the rules around national interest.
Mr English says one of the reasons for the review is that investors need to know the Government won't change the rules at the last minute.
