Crafar farm sale draws political flak

Related Links

Key plays down Chinese Crafar deal concerns Crafar farms sale to Chinese group approved

Relevant offers

Politics

Treaty obligations to stay in SOE sales law McCully email thief could be Kiwi PSA disappointed Key won't discuss cuts Delays in privatising ACC work account No background checks on Education ministry staff Labour fears for Kiwis in ministry shake-up The one-seat threshold Today In Politics: Thursday, February 23 Police complaint over election programme McCully's emails revealed

Political opponents of the Government have quickly lined up against the sale of the Crafar Farms to a Chinese Government-backed bidder, confirmed this morning.

Labour leader David Shearer, who earlier this week visited one of the 16 farms sold to the Shanghai Pengxin business consortium, has already given his support to a failed rival bid that was led by Kiwi businessman Sir Michael Fay.

Today he said confirmation of the sale ''opened the way for more New Zealanders to become tenants in their own land''.

"This latest decision will be a massive kick in the guts for the local group of iwi and farmers who also put in a bid," Shearer said.

"Labour is not against foreign investment but any deal must demonstrate added value for New Zealanders. This one doesn't.''

Shearer said Prime Minister John Key had ''tried to distance himself'' from the decision.

''He can't. In 2010 his Government was talking about how their changes to regulation 'increased ministerial flexibility to consider a wider range of issues when assessing overseas investment in sensitive land'.
 
"Ultimately the decision lies with John Key and his Cabinet.''

New Zealand First leader Winston Peters said the sale amounted to ''economic treason''.

"New Zealanders have every reason to feel outraged and betrayed. Our country is being run for the benefit of foreign companies and the international money industry,'' Peters said.

"We call on every concerned citizen to flood the Prime Minister and every National MP with messages of disgust at their lack of loyalty to the country they live in.

"This is a bitterly sad day for New Zealand and there is more to come with our profitable power companies next on the block."

Key is expected to speak to the media about the decision after 1pm this afternoon.

The decision in favour of the Chinese bid is likely to be subject to judicial review, with the Fay consortium set to keep up its push to scoop the 16 farms at a cheaper price.

The deal could also come unstuck if Landcorp, which has a scheduled board meeting on Monday, decides against a joint venture with the Chinese.

- © Fairfax NZ News