Key defends sale of Crafar farms to Shanghai Pengxin
John Key says the deal with Shanhai Pengxin couldn't be vetoed just "because they're Chinese".
Prime Minister John Key has defended his government's decision to allow China-based Shanghai Pengxin's to buy the troubled Crafar farms.
Mr Key said at a press conference this afternoon that critics, including New Zealand First leader Winston Peters who accused him of "economic treason," had their heads in the sand.
"He [Mr Peters] is in a state of denial. New Zealand has strict legislation where it comes to the sale of farmland," he said.
Associate Minister of Finance Jonathan Coleman and Land Information Minister Maurice Williamson approved the sale for the 16 dairy farms yesterday at 5pm, Mr Key said, and while legislation granted a right of veto it was not utilised. "In our view there was no reason to do that," Mr Key said.
"If government had decided to overrule the decision of the Overseas Investment Office we would have to give reasons - and that reason can't be 'because they're Chinese.'"
Shanghai Pengxin were the highest bidder for the farming group, but a consortium fronted by Sir Michael Fay had submitted a lower offer and lobbied against their rivals.
The OIO approved the Shanghai Pengxin bid despite complaints the firm's founder had ties to the Chinese criminal underworld.
Mr Key said the new owners of the Crafar farms would be an improvement for both the local environment and the dairy cows on site as they had been poorly run.
The Prime Minister downplayed his concerns expressed last year that he feared New Zealanders were becoming "tenants in their own land".
Mr Key said less than 1% of New Zealand farmland was foreign-owned and current OIO regulations - strengthened last year - were working well.
He did not rule out toughening regulations further. "I wouldn't want to see enormous tracts of land sold [offshore] week after week after week after week. Governments always reserve their right to change the law," he said.
Matt Nippert
Fri, 27 Jan 2012
Fri, 27 Jan 2012
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Key defends sale of Crafar farms to Shanghai Pengxin
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