Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Farmers concerned over Lochinver sale

Farmers concerned over Lochinver sale


While Federated Farmers supports positive overseas investment into New Zealand’s farming system, it is concerned the potential sale of Lochinver Station to Shanghai Pengxin Group Co. Limited, may not provide sufficient benefit to New Zealand.

“Since there is no requirement to publicly notify applications to the Overseas Investment Office, Federated Farmers is frankly uneasy about the potential sale of Lochinver Station to Shanghai Pengxin,” says Dr William Rolleston, Federated Farmers President.

“New Zealand absolutely needs foreign investment but it has to be of benefit to the local and national economy.

“That is why a ‘substantial and identifiable benefit’ test was incorporated into the overseas investment decision tree, further bolstered in 2012 by a High Court decision adding a "with and without” counterfactual test.

“This was to ensure any investment, such as the one being proposed, has benefit over and above just making a farm work better. Since Lochinver Station is highly regarded in farming circles there must be something very special and we are keen to know what that is.

“Given the location of these farms to Shanghai Pengxin’s other landholdings, it will increase speculation that vertical integration by way of processing could be on the cards.

“In December 2010, the Government tightened the rules around foreign ownership by way of an “economic interests” factor in the Overseas Investment Office’s consideration. This allows ministers to consider whether New Zealand’s economic interests are adequately “safeguarded and promoted” in the case of land aggregation or vertical integration.

“Considering Lochinver Station on its own is three times the land aggregation trigger level, let alone when added to the former CraFarms, this will be a test of the OIO’s rules.

“Yet this proposed sale and the commentary around it, again highlights the need for research into what the extent of overseas investment in our farmland is.

“Last year, Federated Farmers wrote to Ministers requesting research into the extent of overseas investment in farmland. We understand Ministers were concerned at the potential cost, but the economic price of getting foreign investment rules wrong outweighs this.

“Our counterparts at the National Farmers’ Federation are already several steps ahead of us, with the Abbott Government working on a Farm Register.

“The reality is that here, no one knows how much of our farmland or housing is foreign owned. To base critical economic policy decisions around a hunch is unacceptable.

“We also hope the OIO will be able to share what the ‘substantial and identifiable benefit’ to New Zealand is with the proposed overseas sale of Lochinver Station,” Dr Rolleston concluded.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

OECD And Zero Carbon Reports: Environmental Pressures Rising In New Zealand

New Zealanders enjoy a high environmental quality of life and access to pristine wilderness. However, New Zealand’s growth model, based largely on exploiting natural resources, is starting to show its environmental limits with increasing greenhouse gas emissions and water pollution ... More>>

ALSO:

Statistics: Record Net Annual Migration Levels Continue

In the February 2017 year, 71,300 more migrants arrived in New Zealand than left, Stats NZ said today. This equalled the previous annual record set in January 2017. More>>

South America Trade: New Zealand-Argentina Agricultural Agreement Signed

Primary Industries Minister Nathan Guy has signed an Agricultural Cooperation Arrangement with Argentina today, aimed at building closer relationships between the two countries. More>>

ALSO:

Statistics: Economic Growth Eases In December Quarter

GDP rose 0.4 percent in the December 2016 quarter, following an increase of 0.8 percent (revised) in the September 2016 quarter. “Growth in service industries was partly offset by weaker activity in primary industries also flowing through into manufacturing.” More>>

ALSO:

Trapping: Predator Free 2050 Holiday Parks Partnership

Conservation Minister Maggie Barry has welcomed a new predator-free initiative signed today which includes trapping in and around hundreds of holiday parks. More>>

ALSO:

Sure As Eggs: Commerce Commission Should Look Into 'Free Range' Egg Labelling

Green Party MP Mojo Mathers has written to the Commerce Commission asking it to inquire into the alleged mislabelling of eggs laid in cages as “free-range”, the Green Party said today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news