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Why no answer on Crafar farms before election?

Wednesday, 23 November 2011, 10:05 am
Press Release: New Zealand Labour Party

Why no answer on Crafar farms before election?

National is concealing its intention to sell off our farmland to foreign buyers well under the radar before the election, says Labour's Economic Development and Associate Finance spokesperson David Parker.

"National is not just about selling our power companies, inevitably into foreign ownership," David Parker said.

"It's about selling productive farmland overseas as well."

David Parker says he questions the 'political motivations' behind no decision having been taken in the past six months on the latest foreign application to buy the Crafar farms.

"On the face of it, there's no reason the Overseas Investment Office could not have made a decision. So why hasn't it?

"The only conclusion I can come to is that National doesn't want a decision to be made until after the election, because the Government is already copping so much flak for its intention to sell our power companies," David Parker said.

"Finance Minister Bill English has set out the rules for the OIO. Provided the applicant is not corrupt --- and there has been no suggestion of corruption in this case, as far as I am aware --- the OIO normally eventually approves the sale.

"A letter from Bill English to the OIO says the National Government is happy to allow farmland up to 10 times the size of the average farm to be sold to the same buyer," David Parker said. "For practical purposes that means the first 10 farms applied for can be sold provided the potential buyer isn't corrupt, but the 11th application must be turned down.

"The rule puts no real obstacle in the way of foreign ownership of large chunks of our land, but it seems very clear National doesn't want this reality to be borne out before the election. That's the only reason the OIO has been sitting on its hands."

David Parker says Labour would make changes that would prevent such sales proceeding. "New Zealand's farmland is of strategic importance to our economy and must be protected, but National seems determined to allow our productive assets to be sold off piece by piece. Farms and the state-owned power companies are on the block.

"Selling off our dairy farms to an overseas buyer who can pay more than a New Zealander will not make New Zealand wealthier. Losing control of our productive base makes us poorer, not richer."


Authorised by David Parker, MP, Parliament Buildings, Wellington

 
 
 
 
 
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