Views on foreign ownership

Care urged: Havelock dairy farmer Tony Sorensen and his wife, Lone. Mr Sorensen, who emigrated to New Zealand from Denmark 20 years ago, says caution is needed when it comes to foreign ownership of rural land.

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A lobby group pressuring the Government to ban foreign ownership of New Zealand farms is "almost xenophobic" because it was set up following a Chinese bid to buy the Crafar family farms, Marlborough Federated Farmers president Geoff Evans says.

Save the Farms was set up last month by Remuera property developer John McKearney.

Mr McKearney told The Marlborough Express the group was not xenophobic, and while the potential sale of 22 Crafar dairy farms was topical, Save the Farms was set up to encourage debate.

"I'd been reading a lot of things about [the Crafar bid] with different opinions. So I thought we should talk about it."

He said he did not have a problem with foreigners buying land, but they should move to New Zealand and become part of the community.

"We're concerned about multinationals who make inroads into our farming community."

A ban would not depress land prices because little overseas investment had occurred, so farmers were not sitting on a goldmine, he said.

However, Mr Evans said a ban on foreign ownership was grossly unfair and would affect land prices.

"I'm not happy about it. A moratorium on sales overseas will mean a moratorium on sales.

"Land prices are the only thing that have been affecting farmers' ability to farm. Were it not for the fact the capital asset had been growing, farmers would not have been able to continue to produce in the manner to which we had."

No-one had made a fuss about overseas investment in other businesses, he said.

"What's the difference between a vineyard, a forest or a farm? There's any amount of foreign ownership in those industries."

Other Marlborough farmers said they also opposed a ban on foreign ownership, but supported some restrictions.

Awatere farmer Greg Harris said foreign investment was holding up New Zealand's economy in many places, but he suggested that foreigners only be allowed to own up to 50 per cent of a property.

"That would create good investment ... [rather than] people in it for a tax dodge or to take advantage of our legislation."

Medway Valley farmer Simon Harvey said the land must be fiercely protected.

"The land is where we generate wealth, and it's far more than just a business asset. It shouldn't just be treated just as a business asset."

However, some foreigners had brought in much-needed capital and had done a good job, he said.

The Government should investigate how it could get the benefits of foreign ownership while avoiding the pitfalls by looking at what had been done overseas, he said. "It's definitely worth debating."

Havelock dairy farmer Tony Sorensen, who emigrated to New Zealand from Denmark 20 year ago, said caution was needed.

"We're cutting the branch we're sitting on, especially in New Zealand, because it's one of our biggest assets."

Foreign land ownership should be restricted to nationals of countries that also allowed New Zealanders to buy their land, he said.

- The Marlborough Express

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