Wellington - New Zealand's 4-month-old conservative government moved Tuesday to relax rules governing foreign investors, hoping to attract more outside capital to the country, which has been in recession since early last year.

Finance Minister Bill English said overseas investment could play an important role in an economic recovery and job creation.

Announcing a review of the Overseas Investment Act, English said the current law was cumbersome and the rules often difficult to interpret.

He said an application to buy land near the sea, or otherwise declared "sensitive" because of historical or cultural importance to the indigenous Maori population, had to pass 27 different criteria.

"The process is too long and too uncertain," English said, insisting that rules introduced by the previous Labour government to protect conservation and heritage land and access for hikers were covered by other laws.

A year ago, the government changed the rules to block a bid by a Canadian pension fund to buy the Auckland International Airport, the main gateway for 2.4 million foreign tourists who visit the country each year.

In 2004, the government tightened the rules on foreign purchases of sensitive land after a US investor moved to buy the landmark Young Nick's Head at Gisborne, named by British explorer Captain James Cook after his cabin boy, who was the first person on the ship Endeavour to sight land in 1769.

"In the current economic environment, access to foreign capital is particularly important, and we need to ensure that the screening regime does not unnecessarily deter or prevent initial and ongoing foreign investment," English said. (dpa)