For all of his populist instincts, Prime Minister John Key appears curiously out of touch with the public on land ownership by foreign investors. Though overseas investment is required to fund growth in small economies, the Government could and should do more to prevent open-slather land sales to offshore speculators.

Across the Tasman, the Abbott Government is talking up a number of measures in response to foreign ownership concerns. Proposals include a tax on foreign property buyers, a register of foreign land and property ownership, tougher rules for purchases of rural land and stricter penalties for those who break the rules. In this country, the Government denies we have a problem with foreign land sales. It rejects public concern over the issue and the belief that the phenomenon is in part to blame for rising property prices. Whether it's true or not, there is a strong belief that foreign buyers are helping to nudge Kiwis off the first rung of the housing ladder.

New Zealand First leader Winston Peters describes the Overseas Investment Office as "a rubber stamping machine", and says all 189 applications for overseas ownership of New Zealand land in the past two years have been approved.

If the Abbott Government's proposed tightening occurs, this country will be out of step with Australia, despite the Closer Economic Relations ethos which envisages the two economies becoming more and more aligned.

The gap between our country and the rules applying in China - where some of the higher-profile purchases have come from in recent years - is even more marked. China allows foreign investors to lease land, but not buy it. The Chinese also direct overseas investment into strategic industries or areas of development they nominate or control.

It's not xenophobic to compare our policies with other countries we trade most closely with. The issues are the same whether the offshore currencies are the renminbi, yen, greenback or euro.

What ought to be an obvious first step is for this country to establish a foreign land register. With current technologies this should not be an overly taxing task. It would show up the extent of the problem - if there is one. Surely good economic governance requires solid information.