Ministers' Crafar blunder the result of NZ China Strategy

The decision to allow Shanghai Pengxin to buy the Crafar farms was a politically motivated one aimed at keeping the Chinese Government happy, Green Party Co-leader Dr Russel Norman said today.

A High Court judicial review of the Government's decision to grant Chinese company Shanghai Pengxin permission to buy the Crafar dairy farms today ordered the Government ministers who agreed to the sale to reconsider the application.

"The economic arguments put forward by the Overseas Investment Office regarding the economic benefits to New Zealand failed to take into account what would happen if a responsible New Zealand investor were to buy the Crafar farms," said Dr Norman.

"The simple fact is, there are no benefits to New Zealand by allowing our productive farmland to be sold into overseas ownership.

"Behind-the-scenes lobbying from Chinese officials was one of the reasons the Government approved the Crafar farms deal.

"The Government's claims that giving Shanghai Pengxin approval to buy the Crafar farms was in no way influenced by the NZ-China Free Trade Agreement are untrue.

"The High Court judgment states the Overseas Investment Office argued that this investment promoted an important Government policy by demonstrating our compliance with the NZ-China Free Trade Agreement.

"The cost of John Key's attempts to woo Chinese investors through his China Strategy will be the loss of our productive farmland," said Dr Norman.

"The New Zealand High Court has told the Government to give New Zealand buyers of farmland a fair go. It's time the Government listened."