PM: Change to foreign ownership law possible
DANYA LEVY
Prime Minister John Key says the Government would look at changing the law to limit foreign ownership of productive land if there is growing public concern.
However, he says such as change in response to the sale of the Crafar farms would a knee-jerk reaction.
The Government last week approved the sale of the 16 dairy farms to Shanghai Pengxin after recommendation by the Overseas Investment Office.
Under the sale, Landcorp will manage the 8000 hectares of North Island farms which were placed in receivership two years ago.
Key this morning said 72 farms had been sold in the past 18 months but an ''awful lot'' were being sold to New Zealanders.
''Yes, there are some sales taking place but they are relatively small,'' he told Radio Live.
Ministers did not have a legal right to decline a sale which complied with conditions.
''You'd be judicially reviewed and you'd lose.''
No major political parties campaigned on banning foreign sales during the election, Key said.
''Obviously that's a sovereign right that we have.
''We can change the law but at this point I would have thought it would be a bit of a knee-jerk reaction.
''We should look at it, if the flow of sales starts to accelerate and people really become very concerned.''
Labour leader David Shearer yesterday said any opposition to the sale was not racist.
''What concerns me is that, by implication National is labelling every New Zealander opposed to the sale as anti-Chinese and possibly racist simply because they oppose the sale of profitable New Zealand-owned assets to foreign interests.''
Surveys showed up to 85 percent of New Zealanders opposed selling land to overseas owners.
Labour was not opposed to foreign investment, he said.
''However we also believe no overseas purchaser has an automatic right to buy New Zealand land. That is a privilege and any purchase must provide some added value.''
In the Crafar case, local farmers could add more value than a foreign company with no farming expertise, he said.
University of Auckland law professor Jane Kelsey said the Government could not treat applications from Chinese investors differently from similar applications from other countries' investors under what is known as the 'most-favoured-nation' rule.''
She agreed with Key that the Government could have faced an international law suit for breaching its free trade agreement with China if it declined the Shanghai Pengxin purchase.
''Shanghai Pengxin's application pointed to numerous purchases of farmland by investors of other nationalities, and claimed that rejection of its otherwise well-founded application would amount to anti-Chinese discrimination.
''Such a dispute would have huge ramifications for New Zealand's diplomatic and economic relationship with China.''
Sponsored links
LOL I cannot believe it, the majority of people are apposed to the sales of our assetts and are voicing there concern, Why the heck did you vote for this knob when he clearly stated that is what he will do! My own belief is I dont care what nationallity a person is who buys land in our country as long as they are going to be living here not some overseas investment company that just wants to rake profits away from us, SO SHAME ON YOU IF YOU VOTED FOR NATIONAL (IDIOTS)!!!!!
Really stupid seller...even CHinese are laughing online. They say in near future NZ milk would be harmful as their local brand as well.
To all of you saying this asset sale is a good thing (Crafar), encouraging foreign investment (like Aussie mining companies), only selling a percentage of shares – not the whole thing (SOE’s) – blah, blah, blah…. Investors invest for profit. They spend the least amount of money in order to maximise the profit. They will pay the cheapest wages they can, built the cheapest infrastructure they can, employ the cheapest contractors they can because they KNOW they are going to sell their investment to make as big a profit as they can. There is absolutely no intention of investing in something for the on-going benefit of New Zealanders, despite the lip-service they pay to this – we’ll create a couple of hundred jobs etc. Chickenfeed when compared to the billions they’re taking out of the country. Once upon a time – yeah. 30+ years ago the emphasis was on building a sustainable business, building communities, looking after your employees etc - doesn’t happen any more. Our Governments should be protecting the future of our people, not thinking '3 years'. Prevent the pillaging of our resources and legislate that foreign companies or individuals can only take a certain percentage of their gross income out of the country – regardless of whether they sell the company, or to whom they sell it. Everything else MUST stay in NZ for good. Our farms, mines, SOE’s are worth so much to people because they’ve either already run out of their own resources, or they’re just plain greedy. Stifle the huge profits they take out of the country, the price tag falls = more affordable to New Zealanders. Bugger the greedy Kiwi’s too – we’re caught in this vicious circle of making as much money as we can and screwing everyone else over.
If 85% is not a high enough level of concern, what is ?
People still don't get it.
No matter how much opposition one gets if it is already agreed upon doing something it's going to get done it might just take a little longer.
By the time you hear the story in the media a deal has already been made so it will be done
@ D Advocate #156
That is a bit of a complex concept for most NZers to grasp I am afraid! You are quite correct, of course, but let the people have their rant, at least.
You and I know the truth of it clearly - I imagine the rest will catch up sooner or later.
John Key said the same thing about the Auckland takeover and gifting to the CCOs and privatisation down the line.
'If people protest loudly enough...
A National MP used Hunua, a National/Act farming wealth stronghold to state 'I didn't see Hunua electorate people marching in the streets - 20,000 majority to Nat Paul Hutchison - hardly likely was it.
They did protest at a business lunch Key attended in Pukekohe though. $90 a person, I believe, going into National coffers.
He had time to tell business people how they could look forward to seeing wages drop but no time to meet with the little people genuinely concerned about how the Auckland takeover of councils would affect them.
To date Franklin has gained little - public transport still shockingly 19th century.
People protested then - it made no difference.
People are protesting now but it has to be more people and they have to be much louder in their condemnation of productive land being sold off overseas to anyone.
In short they have to stick together and not allow themselves to be divided by more John Key, Maurice Williamson, Chris Kelly accusations of racism towards the Chinese people or should I say the Chinese Government that is backing the loan.
So many people, CAFCA is the main one,(google it)including myself, have been vociferous over many years in our condemnation of any (local)government imagining it has the right to sell off Kiwis' assets to ANY FOREIGN OR CORPORATE owner(s).
John Key is tricking New Zealanders - manipulating media to make him sound like he is considering Kiwis' demands.
Kiwis are cognizant of the dangers of losing valuable assets and profits overseas; they're not racist; they're just more Kiw
'Prime Minister John Key says the Government would look at changing the law to limit foreign ownership of productive land if there is growing public concern.'
'Surveys showed up to 85 percent of New Zealanders opposed selling land to overseas owners.'
Exactly what level of concern will it take?
I think the main problem is that people don't trust the Chinese. And why would they??? These are a people destroying their own land, and who are renowned for being greedy and treating others badly.
The facts behind Arctic drilling
Today, you might be working for free
Warehouse rules out 'click and collect'
Bathurst's growth prompts Wellington move
SOE takes more time over results
Knowles prefers risks of start-ups
Yahoo threatens Facebook as patent war looms
Windfarm profits battered by lack of wind
Profit soars for Supercheap owner
Insurers rated poorly for quake performance
Sex offender allegedly seen driving schoolchildren
Sage's grandmother: 'Justice - that's all I want'
Sex abuse case spurs call for change
Key: Mums of one-year-olds better working
Sleeping-pill users more likely to die early - study
Sex addicts wanted for Massey study
Wounded journalist smuggled out of Syria
Black Caps fancy South Africa's short stuff
All Whites poised if Jamaica lose their rhythm
Colin Slade not being risked by Highlanders
'Devil's chain reaction' feared after Japan quake
Yahoo threatens Facebook as patent war looms
Reese's latest stirs up dating debate
Scary Spice's weight loss struggle
'Devil's chain reaction' feared after Japan quake
Otago crisis: Return to amateurism - Laidlaw
Angelina Jolie's right leg goes viral
Samsung Galaxy SIII specifications leak
Holiday's over for bach hit by erosion
India stun Sri Lanka with miracle run chase
Newest First
Oldest First
PM John Key is wrong to use the race card saying Kiwis are anti Chinese ? it is shear scale the amount of good land hocked off in one go that has upset us. ////// The Govt can force through the Hobbit movie stuff more or less overnight ? why can they not act so quickly with this sale of our good land overseas ? $$$$ money that it is all about. From Graham Elwell .