By Deanna Harris
Natural Dairy NZ Holdings is disappointed by the country’s widespread opposition to land sales and foreign investment in New Zealand and say the Crafar farms are not a vital New Zealand asset.
In the latest 3 News Reid Research poll 1,000 voters were asked, ‘should the Government change the rules around selling land – like farms to foreigners?’
An overwhelming 75.5 percent said, ‘yes, tighten the rules’, 14 percent said leave it as it is and just 8 percent said relax the rules and let overseas interests buy our land.
The results came after Natural Dairy NZ’s bid for the 16 Crafar farms.
Natural Dairy said in a statement to 3 News:
“The farms are not, in any sense, vital strategic assets and the New Zealand economy can only benefit from our purchase of the farms.
“This is not a wholesale sell off of large tracts of land that would see New Zealanders become ‘tenants in their own land’.
It involves just 0.5% of the country’s dairy farmland.”
Natural Dairy is a Chinese company which changed its name from China Jin Hui Mining and is registered in the Cayman Islands.
The Green Party disagree and are pleased with the poll results.
“New Zealanders recognise the importance land is to the economy and they want that protected and one of the ways to do that is to keep it in New Zealand hands,” said Green Party co-leader Metiria Turei.
But Natural Dairy NZ say they will considerably boost New Zealand’s export earnings.
“Rather than simply shipping lower valued milk powder overseas, used for ingredients by other countries manufacturers, we want to manufacture and export ‘added value’ milk products such as UHT long life milk, speciality dairy products and infant formula to an insatiable market in China,” said Natural Dairy.
Their first step towards this investment has been applying to the Overseas Investment Office to acquire the 16 Crafar farms.
“Yes, a portion of the profits from the venture will be returned to investors living abroad (no different from the current interest paid by farmers to our offshore banks) but, in return, every year the New Zealand economy will gain hundreds of millions of dollars in increased export earnings, taxes and jobs.
“This investment could go to Australia or South America where we know it will be eagerly accepted but we believe in New Zealand and its world-class dairy industry.”
RadioLIVE business editor Andrew Patterson says he also understands the concerns of New Zealanders.
He says the government should look at possible 50:50 joint ventures or alternatively, leasing the land to overseas investors rather than selling.
“If New Zealanders want to invest in China they have to do it on a joint venture basis. I think it should be a level playing field.
“That, I think will be more satisfactory to New Zealanders then land sold out right.”
Last month John Key stated his concerns by saying: “If we ended up as tenants in our own country, then I can't see how that would be in our best interests.”
Natural Dairy agrees with Mr Keys concerns.
“Your Prime Minister is right to worry about large amounts of farmland being sold to non-New Zealanders and there may be a day when you decide New Zealand has to restrict the amount of land sold to overseas interests but that day may still be far off. The vast bulk of New Zealand farmland remains in New Zealand ownership and our limited acquisition will not threaten that fact,” it said.
3 News