Crafar sale to become 'election issue'

Published: 11:08AM Friday January 28, 2011 Source: Breakfast

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Lobby group Save the Farms plans to make the sale of the Crafar dairy empire an election issue.

Spokesman Tony Bouchier told TV ONE's Breakfast there seemed to be broad party support for Save the Farms which wants a moratorium on the sale of the farms to overseas owners.

Bouchier's comments follow the announcement yesterday that receivers for the Crafar family's four companies had canned a sales agreement with a Chinese-backed investor.

The receivers for the group of 16 farms, KordaMentha, confirmed the UBNZ bid had failed to gain Overseas Investment Office (OIO) approval.

However, a new offer from Chinese company Shanghai Pengxin International Group was announced.

The Shanghai-based diversified investment company has global interests including bio-fuel crops, fisheries, farming and property development. Pengxin plans to lodge an application with the OIO by the end of March.

Bouchier said overseas owners did not bring benefits to New Zealand.

"All they do is bring money to the table," he said.

"All the dairying expertise is already here in New Zealand. We are world leaders in dairying. They bring nothing."

Brendon Gibson of KordaMentha said the Pengxin offer was "the best offer we have".

Consent for Natural Dairy's application was declined last year. Cabinet ministers Maurice Williamson and Kate Wilkinson were not satisfied that all the individuals with control of Natural Dairy were of good character.

Bouchier said agricultural land should stay in New Zealand ownership.

"This is election year," he said. "There seems to be broad party support for what we are doing and we will make it an election issue."

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