BREAKING NEWS
Germany, Argentina locked at nil-all, Football World Cup final goes to extra time ... Read more
Close

July court date for Crafar challenge

ANDREA FOX
Last updated 12:06 09/05/2012

Relevant offers

Farming

Porky pies in pig welfare Fonterra cheese jewel on target Injuries after quad bike crash Farmers tackle issue of residue in milk Use of water still seriously unsustainable Icelanders check out Kiwi dairying 'Critical capability going' with AgResearch cuts $40,000 fine after river turns pink Scientists need to learn how to make research accessible Hereford prices on the rise as market shifts back

Two legal challenges to the Government's consent for Chinese company Shanghai Pengxin to buy the Crafar farms are to be heard together in the High Court in July.

Businessman Sir Michael Fay, whose group of farmers and iwi want to buy the 16 North Island dairy farms, said the group's appeal over a High Court ruling earlier this year around Pengxin's proposed purchase, and its new, more recent challenge against the Government's second green light for the Chinese deal, are to be rolled into one hearing in Wellington on July 2.

The Government early this year allowed the $200 million-plus Pengxin purchase on the recommendation of the Overseas Investment Agency.

A judicial review challenge against that decision by Fay's group, which has offered $171.5 million for the in-receivership farming estate, resulted in the High Court effectively sending the decision back to the OIO and Government ministers for a rethink.

Fay's group challenged the OIO's recommendation on two fronts: that the Pengxin purchase was of economic benefit to New Zealand and that Pengxin had the necessary business acumen and farming experience to operate the farms.

The court supported the economic benefit challenge, but not the business acumen question.

Fay's group has asked the Court of Appeal to rule on the High Court's latter decision.

Since then, the OIO has again recommended that Pengxin be allowed to buy the farms, which have been in receivership for more than two years, and the Government has again consented, sparking a fresh legal challenge from Fay's group.

A spokesman for Pengxin has said the company intends to have its proposed farms manager, state-owned enterprise Landcorp, on the farms by spring, but will not say whether the deal with the receivers is unconditional.

Ad Feedback

- BusinessDay.co.nz

Special offers
Opinion poll

Are farmers right in demanding heavier penalties for those caught rustling?

Yes

No

Vote Result

Related story: Farmers demand beefing up of rustling laws

Featured Promotions

Sponsored Content

rural digi editions 4/9

Digital editions

Read our rural publications online