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An aerial view of one of the Crafar farms - Source: ONE News -
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The future of 16 Crafar family dairy farms is now in the hands
of two Government ministers.
They are mulling over a recommendation from the Overseas
Investment Office on an offer from Chinese company, Shanghai
Pengxin.
Now the Labour Party is adding to calls for the decision to be revealed before the farms go unconditional.
Labour Party leader David Shearer today inspected one of the Crafar farms up for sale, which could possibly fall into foreign hands.
"The Government has the last say on this particular issue and they can actually determine whether this land sale goes ahead on not," Shearer said.
Prime Minister John Key said whether the bid for the Crafar farms meets the legislation is a matter for the ministers charged with making the decision on the OIO recommendation.
Land Information Minister Maurice Williamson and Associate Finance Minister Jonathan Coleman have the sole responsibility for making the decision on the recommendation, Key said.
Labour has joined a consortium of investors and iwi led by Sir Michael Fay calling on the OIO to release their decision on the offer for the land from Shanghai Pengxin.
"I think we should obviously see the documents right now," Shearer said.
The Fay-led consortium made a $171.5 million dollar bid for the
16 farms in the central and lower North Island.
The receivers, KordaMentha, rejected the bid, saying it was not
their best offer.
Tomorrow, the High Court will hear arguments from the group's lawyers to get more information on the OIO's recommendation.
'Tenants in our own land'
It is understood the state-owned farming company Landcorp would run
the Crafar farms should Shanghai Pengxin be successful.
Shearer said: "What we're going to see is the state owned enterprise, our own corporation, Landcorp, taking over as tenants in our own land. I mean this is nonsense."
Key said if Labour were responsible for about 650,000 hectares of land being sold overseas.
The Prime Minister said his view has been that the wholesale sale of land in New Zealand overseas is not in New Zealand's best interest and that was why the Government sought to toughen up the Overseas Investment Act.
Although he didn't have the most up to date information, he said his understanding was that less than 1% of all farmland is currently owned by foreigners.
"At around about 1% I don't think we have a substantial issue," he said.
Key said there have been sales of farms to foreigners with the German pension fund buying in the South Island recently, and other buyers from overseas.
"But in terms of the data that I have, sales that have taken place in the three years that we've been in office have been pretty modest."
The receivers have imposed a January 31 deadline for the Shanghai Pengxin offer to go unconditional.
A decision from Government on the offer could well come before
then.
