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Cedric Allan (L) and Maurice Williamson - Source: ONE News -
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Public angst over the sale of nearly 8000 hectares of prime central North Island dairy land is bordering on racism, a Government minister says.
Maurice Williamson told TV One's Close Up tonight that there was a "very rigorous process" before the decision was made to allow a subsidiary of Shanghai Pengxin to buy the 16 Crafar farms.
The Land Information Minister said the bid met all the criteria under the act and they were obliged to accept it.
But Williamson said the Government has made a number changes to the Overseas Investment Office rules to protect New Zealand.
"I don't expect people to be happy with this," Williamson said, adding that even with this sale, only about 1-2% of the total New Zealand land is in foreign ownership.
"The public don't like any of our land being sold to foreigners...I wish New Zealanders had the wherewithal to buy it."
'Not a mutter' about sales to others
But the minister said New Zealanders seem happy to sell 24,000 hectares to Canadian singer Shania Twain, and "there is not even a mutter" over sales to the Germans, Swiss and Americans. But as soon as the word Chinese was mentioned, we're opposed to it," he said.
"I have to say that's bordering more on racism than it is on xenophobia."
Shanghai Pengxin spokesman Cedric Allan said the company is looking for investment opportunities in New Zealand, particularly around "energy, water and, primarily, food".
"The Chinese are long term thinkers and want a supply of milk that's certain," Allan said.
He told Close Up tonight that China wants a long term arrangement with a New Zealand processor and to open the door to China for the NZ dairy industry.
"It can be win-win for both and that's what we see this as."
Williamson agrees. He said the Government sees the deal more as a joint venture, with Landcorp working with the new owners to manage the "very distressed assets" and get them back to producing high grade milk, fats and product.
"This company has quite good entree into retail and supermarket chains. They can help us market our product into the biggest market in the world and we can use our technologies to do that."
