Labour says the Government is confused over foreign investment rules and is softening the public up for another policy U-turn.
Prime Minister John Key has signalled the Government is unlikely to change overseas investment rules to make it easier for land to be sold to foreigners.
But Labour's associate finance spokesperson David Parker says a Government review, which is due to be reported to Cabinet soon, was set up to ensure applications to the Overseas Investment Office could be approved more easily.
He says the Government can't decide whether it wants to encourage or discourage foreign investment.
Mr Parker says the Government's approach is not driven by principle, but by the opinion polls.