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Labour wants foreign investment reform

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Labour wants foreign investment reform

3News NZ

Shanghai Pengxin reportedly offered $210 million for the farms (file pic)

Shanghai Pengxin reportedly offered $210 million for the farms (file pic)

Labour is calling for stronger foreign investment rules after the Court of Appeal rejected an attempt by Sir Michael Fay and two Maori trusts to block the sale of the Crafar farms.

The Chinese company that bought them, Shanghai Pengxin, says it can now go ahead with its programme of improvements on the 16 dairy farms.

Labour leader David Shearer says they should have stayed in Kiwi hands.

"Farming is the soul of our heartland but National is happy to see farms priced out of locals' reach and the profits flow offshore," he said.

"Overseas investment needs to demonstrate it will bring in new ideas, create new jobs and significantly improve the local economy - we're not against foreign investment but Shanghai Pengxin won't bring anything new to the table."

Labour has drafted legislation to strengthen foreign investment rules.

"It would substantially limit the discretion of the minister to consent to the sale of rural land to overseas buyers," Mr Shearer said.

Sir Michael and the trusts had sought a judicial review of the sale, which was approved by ministers.

Shanghai Pengxin reportedly offered $210 million for the farms, while Sir Michael and his partners offered $171.5m.

NZN

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Comments

9/08/2012 4:53:06 p.m.

David wrote:

The funniest thing here is all these right wingers complaining about all of labours asset sales... are the same hypocrites applauding National for their planned asset sales. How do you criticise one group for doing the same thing you are applauding another group for?. Problem with a right wing conservative brain is it cant advance... learn or take in new ideas. In their brains... whether labour did the same thing as National or not wouldnt matter... they are stuck in a world all of their own... being completely hypocritical.

9/08/2012 3:55:06 p.m.

Wiseacre wrote:

So Labour sold some land to foreigners when they were in power. Years ago. Under a different leader. So what? That doesn't excuse National repeating the same mistakes. It was wrong then and it is wrong now. At least Labour are showing signs of having learnt from previous mistakes. Unlike National who are so blinkered by a demonstrably failed neo-liberal ideology that they obstinately persist upon repeating the failed policies of the past. I suppose one can't expect conservatives to think of anything new. The problems facing us are beyond the neo-liberal imagination.

9/08/2012 12:15:22 p.m.

Christopher wrote:

Labour sold 8x times more land then National ever did, plus they signed the free trade agreement with them and now they complain. The hypocrisy from Labour and their moronic supporter's like that brain dead Labour drone 'DAVID' is truly breathtaking. Labour disgust me. It is good to see Labour self destruct yet again - with their Gay marriage bill and their euthanasia bill where they want to kill off elderly Kiwis. Morons.

9/08/2012 11:36:35 a.m.

Mike B wrote:

@David. Get off your soap box already! You get stuck on something and run with it. Just like Labour. Lets rather have a comeback on the article and not the person. What Jim Seaview and others say is very true, Labour do have short memories and open themselves to attack with every statement they make. Opposition party? What opposition?

9/08/2012 10:33:51 a.m.

Jim Seaview wrote:

QUOTE: "Labour leader David Shearer says they should have stayed in Kiwi hands.
"Farming is the soul of our heartland but National is happy to see farms priced out of locals' reach and the profits flow offshore," he said."

This is the problem with the Labour Party - they have short memories as when they were in Government for 9 years they sold 660,000 hectares of land, including farms to foreignors.

Wher was Labours "Soul" then????

Now that they are one of the opposition parties (along with the Greens, NZ First, Mana and the Progressive party)Labour have now reversed their policy because some land was sold to the Chinese.

This is the sort of hypocracy that the voters do not forget and unfortunately dent Labours credibility to govern when their leader Mr Shearer tries to feed us this heap of Bull.

I am not surprised with the latest poll findings.

9/08/2012 9:47:31 a.m.

Carlos wrote:

So Labour wants NZ to go further into debt......they just haven't got a clue !

9/08/2012 9:34:04 a.m.

David wrote:

@Mike thankyou for the National Party press release. Please TV3 include a disclosure clause in your terms and conditions so that PR agents like Mike have to declare that they work for a PR firm hired by the National Party. What an utterly nonsensical press release again from Nationals paid mouthpiece.

9/08/2012 7:43:55 a.m.

Mike wrote:

And Labour continues its ostritch, head in the sand act.

When did the Crafar farms go into foreign hands? It was before they were sold to the Chinese. The opposition keeps ignoring NZ debt to foreigners, and till they address that we will have repeat Crafar sales where the foreign banks sell land they acquired through debt. Chinese banks are getting behind much debt around the world, ie everyone is effectively selling to the Chinese.

$40 million more is still something, plus this bunch have also failed to consider that closer ties to China will lead to more trade with China. Fonterra is also doing deals in China, and they aren't the only Kiwi businesses doing so.

There is a claim the milk from these farm will go overseas? Well since most of Fonterras milk is exported, that part is true. But the milk itself, its likely to go to Fonterra as its uneconomic for farms spread so much to send to a tiny operation like one processing plant. Eg the Fonterra competitors who buy Fonterra milk, Shanghai Pengxin if it does get into milk processing is likely to follow that model, having the farms supply Fonterra, and buy milk off Fonterra to process. Already we are talking more capital investment and jobs in NZ if they move into processing. And if Shanghai Pengxin do process and export to China, the size of China they can't fill orders, it will take Fonterra to fill orders with growing exports to China.

Profits made in NZ will be taxed in NZ. But the truth is that farming isn't that profitable, so little profit will flow overseas, and its likely to see not profit flowing overseas, but more capital investment flowing into NZ.

China will probably use these farms as a training facility and with it look to duplicate farming practises back in China. They are also likely to use our support industries, like Livestock Improvement to develop better cows, and which we already export. ie further growth in exports.