Removing the strategic asset test from the overseas investment rules will reduce confusion and uncertainty for investors but will have little other practical effect, Finance Minister Bill English says.

"The strategic asset test has never been used to block a sale by any government in this country," Mr English told the Shareholders Association Annual Conference in Wellington today.

"Contrary to Labour's spin, it did not use this test to block the sale of Auckland Airport. Instead it relied on nine existing criteria in the rules relating to the sale of sensitive land. They were applied as part of the normal screening process.

"Even without the strategic asset test Ministers would have been able to make exactly the same decision.

"Any future bid for Auckland Airport will continue to have to meet tests for investment in both sensitive land and local businesses. In addition we will introduce a new national interest test based on international best practice.

"However unlike Labour we will not change the rules mid-way through an application to impose a rule that is neither used nor understood.

Labour was never able to say exactly which assets were 'strategic' and in July last year it approved the sale of 100 per cent of Wellington's strategic electricity network to a Hong-Kong-based consortium. This decision showed its strategic asset test was nothing more than an election-year stunt."

Mr English yesterday outlined the first stage of moves to speed up the 70 days it takes on average to approve an overseas investment application.

"In the past eight years 98 per cent of all overseas investment applications were approved. We are determined to speed that up so local firms can more easily access the funds they need to create jobs and grow," Mr English says.