For Immediate release

15 February, 2012

High Court Decision Confirms Purchase Group’s View

The Crafar Farms Purchase Group says today’s High Court decision confirms its view that Shanghai Pengxin’s purchase of the Crafar Farms brought no additional economic benefit to New Zealand.

Group spokesman Alan McDonald said Justice Miller’s judgement to set aside the decision of the Ministers to approve the sale was welcomed by the group and confirmed the reasons for their opposition to the Shanghai Pengxin bid.

“Our view was that Shanghai Pengxin’s offer brought no real economic benefit to New Zealand and it was not in the best interests of New Zealanders. It is reassuring that a High Court judge has come to a similar conclusion and set aside the Ministers approval,” said Mr McDonald.

Bell Gully Lawyer David Cooper, who represented the Purchase Group, said: “The judgment confirms that the Ministers and the OIO misapplied the Overseas Investment Act and materially overstated the benefits to New Zealand arising from the transaction. The Judge has therefore set aside the decision to grant consent and has required the Ministers to follow the test in the Act.”

Mr McDonald said paragraph 57 in Justice Miller’s judgement was the one at the heart of the matter for the Purchase Group.

That paragraph states: “The error was not a mere technicality. No one suggested that the farms are likely to remain in their present unsatisfactory state, whoever purchases them. Any solvent purchaser can be expected to bring their production up to its potential. That being so, the economic benefits caused by the overseas investment were materially overstated in the OIO’s recommendation.”

Mr McDonald said the Purchase Group and its legal team were now taking time to fully consider the details of Justice Miller’s decision.

ENDS

BUDGET 2012:
Parliament Debate Live - Video Of Budget 2011
Keith Ng Interactive Graphic: How the Budget Breaks Down
BUDGET 2012 - FULL COVERAGE: Reports / Analysis - Press Kit - Reaction (from everybody) - Previews (from everybody) - Pre-Budget Announcements

Gordon Campbell: On the Budget’s Spreadsheet Victories

It wasn’t as if expectations were sky high, exactly. Chances are, it was always more likely that we’d be seeing Bigfoot rampage through the Beehive lock-up than catch a glimpse of a credible growth agenda from this government. More >>

Sludge Budget Report - Short The Dollar! MEMO: To international bankers FROM: C.D. Sludge Please short the dollar! It'll be good for both you and us. And you know you want to. Greexit, Eurogeddon... watch out... flight to quality and all that. Follow your instincts. The NZ Debt Management Office has been so surprised at the unprecedentedly low interest rates that it can borrow at that it has already entirely pre-funded the 2013 fiscal deficit - all $8 billion of it! More >>

Pattrick Smellie Comment: Doddling along the best we can hope forCriticising Budgets for lacking vision or imagination is like shooting fish in a barrel, but even so, this year's Budget again feels like a missed opportunity. Perhaps it's the intrusion of real world needs that means the government couldn't make better political use of the $558.8 million it expects to gather in its first partial asset sale. More >>