Accusations of 'weak-kneed leadership' on Crafar
JOHN HARTEVELT
With the Crafar farms finally set to pass into Chinese hands, Prime Minister John Key has been accused of "weak-kneed leadership" over the sale.
Mr Key confirmed yesterday that a decision on the sale of the 16 Crafar farms – in receivership since October 2009 – was imminent and most likely to be announced today. He had "a sense" which way the ministers responsible would fall on deciding if a bid by the Chinese Government-backed Shanghai Pengxin was acceptable.
He said the Government had spent "a long time tightening up the law" around foreign ownership of land and there was "not really" a "significant buy-up of New Zealand farms" by foreigners taking place.
"If you look at the foreign ownership of farms, on the best information we have, it's less than 1 per cent," Mr Key said. "If we saw a significant buy-up of New Zealand farms, then the Government's response would likely be to further toughen the regulations or the Overseas Investment Act, but at this point, we're not really seeing that.
"We cannot say we are not going to accept a bid because someone is Chinese. We can say it's because they don't meet certain regulations and conditions in the Overseas Investment Act but we can't say it's because they're Chinese.
"We always have the power to disagree with the Overseas Investment Office but we couldn't disagree because we don't like the ethnicity of a buyer. We'd have to say it doesn't meet these regulations or these terms."
Labour leader David Shearer has backed a rival consortium bid for the farms being led by Kiwi businessman Sir Michael Fay.
Mr Key said that was "a great political statement to make", but might not be legally correct if the Overseas Investment Office had followed the law in deciding on the Pengxin bid. Neither Labour, nor any other major political party, had campaigned on a total ban on the sale of farmland to foreigners, Mr Key said.
NZ First leader Winston Peters attacked Mr Key's stance as a "weak-kneed apology for leadership".
Mr Peters said China was "demanding that the purchase of the farms come under the Free Trade Agreement".
"We warned at the time the FTA was signed that it would come back to bite us where it hurt. For some time the National Party has been getting closer and closer to China business interests.
"There have been huge political donations to National and it now appears to be payback time."
Mr Key denied he had had any discussion with the Chinese about the FTA in relation to the Pengxin bid or that he had come under any political pressure to seal the deal.
The decision expected today could still be subject to a judicial review as the Fay consortium yesterday secured an out-of-court agreement to delay the closing of any purchase deal at least a week.
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If we cannot control who buys our farmland because of a "Free Trade Agreement" (which I never voted for), then that makes our Parliament irrelevant; our elections a pointless exercise; and our assets up for the highest bidder.
If millionaire Michael Fay couldn't outbid Shanghai Pengxin, then it's fairly obvious that no other Kiwis can hope to outbid a German, American, Swiss, Chinese, etc, bid. In effect, we have lost our sovereignty.
This should give us cause for concern:
"Investigations into Pengxin are believed to have shown it to be a reputable trader with access to cheap credit from the Chinese Government.
“They’re not a Mickey Mouse outfit. What they’re doing is, without any question, advancing Chinese Government policy,” a source familiar with the company said.” " - http://fmacskasy.wordpress.com/2012/01/26/competing-against-the-chinese-government/
John Key says only 1% of our farmland is in foreign ownership. As usual, he is making up stuff to suit himself. The truth is far more worrying; http://www.nzfarmersweekly.co.nz/article/8952.html
With the sale of farmland to overseas investors, regardless of which nationality, we lose export income. That will simply make us poorer in the years to come.
At the very most we should be prepared to sell land to those nations with whome we have a reciprical arrangement. If such an arrangement doesn't exist with China then the racist accusation is completely misplaced. The truth around this has not been spoken I am sure. The truth may very well be linked to the price of dairy farms if such a large number were to come onto the market, hence one parcel is sold, and the concern that the mortgage holder, Westpac, has about realizing a price way below the value of their liabilities, hence they keep very quiet on this issue. If the farms were to have been dumped on the market individually and the price of dairying land were to drop significantly as a result then quite possibly Westpac and some other banks would become rather nervous, particularly if world dairy prices were to drop over the same period.
Idiots voted them in and now its too late. be prepared for a third world employment boom. Key compared us to chinas workers getting paid $2
There should be no Land sales to foreigners full stop, only to NZ residents, it is so simple. This is the only way land prices stay relevant to wages paid in this country Just another episode of National selling out the country to the highest bidder! Keep our land prices realistic and lets keep our young from leaving the country. Go back to the trading desk John while we still have a country.
It's pretty gut wrenching to hear the farms have gone to the Chinese. Good Luck to us Kiwi's ever getting our hands on that land again. I agree with leasing the land to them, and not selling it off to overseas buyers.
Does John Key have any idea about farming etc? once he's screwed the Country he'll be departing New Zealand for someone else to clean up the mess once again, made by Tools@nzgovt.co.nz
Chris #6 ... I take it from your comments you've never even been to China ... I am a Kiwi (born and bred) who spent 50 years living and working in NZ and now live in Beijing ... I wish I had come here 20 years ago! ...OMG Tiananmen Square was in 1989 and China, in case you haven't noticed, has progressed just a bit since then ... China has it's challenges but I certainly don't see NZ as perfect ... social issues abound between the haves and have nots, environmental issues especially around water quality with remedial actions taken at a NZ typical snail pace. This issue is not be race related.
NZ has a right to protect itself against the effects of selling off assets but when you have a PM who stated "If you look at the foreign ownership of farms, on the best information we have, it's less than 1 per cent," Mr Key said. "If we saw a significant buy-up of New Zealand farms, then the Government's response would likely be to further toughen the regulations or the Overseas Investment Act, but at this point, we're not really seeing that" yeah lets wait for the horse to bolt!!
Leadership is what is needed and the performance of the NZ Goverment over the last 3 years shows that you won't get it from Key. Example the economy and the responce in Christchurch. Oh that's right we'll play the blame game as per usual ... it's the international economy and the insurance industries fault ... Come to China opportunities abound!!!! .... and please read widely about what is actually happening in China and not base your opinions just on emotive headlines from a media that has a negative bias towards this amazing country.
No land sales full stop to anybody that is not a resident. That is the only way the price of land remains relevant to what people earn in the country, giving the young a chance for a future in this country and not Australia. But National not only screw down wages but are keen on selling land to foreigners, Time to show you are not a wet blanket Mr Shearer and call for a total ban of land sales to foreigners.
Now that South Canterbury Finance' land, which is far larger than that of Crafar, is for sale, it just amazes me that no one seems to care. No one cared about Shania Twain's huge farm purchase a while ago either.
Shame on you all, racists.
So Winston thinks that we shouldn't get close to the Chinese. And why. Let me understand - China's GDP (National Income) has doubled in the last 6 years - ours has gone up around 10%. Getting closer links to a country with high growth is exactly what we should be doing. Winston has no policies - he is a "Serial Criticiser" - who can only see what he thinks is wrong and never comes up with solutions - unless there is votes in it for him. He is the "Hotchin of New Zealand Politics" - "dont blame me".
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Perhaps the opposition parties will join together and vote the National Party out.except Dunne.Mr Key's smile off his face and wave goodbye as PM.