Fay's consortium can match Chinese on all but price

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Fri, 17 Feb 2012 6:21p.m.

Key could not have got closer to farmer opinion today if he tried at the waimumu Field Days in Southland

Key could not have got closer to farmer opinion today if he tried at the waimumu Field Days in Southland

By Patrick Gower

The Kiwi consortium which wants the Crafar farms has thrown down the gauntlet to the Government, saying it can match the Chinese bid in everything but price.

The consortium, led by Sir Michael Fay, has revised its offer, pledging to invest more than the Chinese would.  It also says that as New Zealanders its members will look after the farms better than the Chinese could.

Prime Minister John Key may be in the driving seat here but as for the Crafar farms deal with the Chinese, well, that has spun out of control.

Today came a challenge from the Kiwi rivals to keep the farms in our own backyard.

The consortium’s spokesperson Alan MacDonald says “the guys that are buying these farms literally live over the back fence”.

“They walk down the road, they look at this property and they go, ‘I can do better than that’,” he says.

That is exactly what the consortium of farmers and local iwi told the Overseas Investment Office (OIO) today.

It has offered to pay more than $171.5 million, which is less than the $200 million and more from the Chinese offer.

It will invest more than $18 million, more than the $16 million from the Chinese, and match undertakings on walking access, preserving pa sites and improving conservation measures.

“They know what they are doing, they are responsible farmers and they just want to get on with doing what they do best, which is producing milk,” says Mr MacDonald.

Mr Key admits the court ruling forcing the OIO to rethink the Chinese offer means anything could happen.

“It may change things because we've got a new law now if you like, or at least a new interpretation of that law, so we'll have to wait and see,” says Mr Key.

Although he had his doubts about Alan Crafar's bid to get the farms back. Mr Key could not have got closer to farmer opinion today if he tried at the Waimumu Field Days in Southland.

The OIO, or Mr Key's ministers, will have to reject the Chinese offer before the Fay application can come back into play.

Sir Michael’s revised offer is a public reminder; there are options and they are Kiwi, even if the names Fay and Crafar come with baggage.

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Comments

19 Feb 2012 01:05p.m.

AT wrote:

The Kiwi consortium which wants the Crafar farms has thrown down the gauntlet to the Government, saying it can match the Chinese bid in everything but price. Indirectly, it wanted to "steal about $30 to $40 millions" from the 3 mortgagee banks...and/or perhaps the NZ Government should make up the difference to pacify these banks and their shareholders. By the way, base on what ground and surety has this Kiwi Consortium over the Chinese Buyer to justify its superiority...perhaps hearsay! You kiwis should be the Judges.