30 JULY 2015

New Zealand at Risk of Losing 30 Per Cent of Red Meat Sector to Foreign Ownership

New Zealand is in danger of losing as much as 30 per cent of its red meat production to overseas ownership, but there is an alternative, says New Zealand First.

“Kiwi co-operative Silver Fern Farms is on the brink of transferring $100 million of shares to foreign investors, and the Overseas Investment Office will not stand in its way,” says Primary Industries Spokesperson Richard Prosser. “The OIO has a woeful record of approving all applications.

“There is an alternative – the costed, banker approved Newco proposal from the Meat Industry Excellence group. It would create a New Zealand farmer-owned cooperative company of the red meat sector, without the need for any foreign money or government assistance.

“New Zealand First is deeply concerned that the OIO, in assessing the foreign deal for Silver Fern, has not given any strength to the Newco proposal, as it should under its statutory responsibilities.

“There is a strong history of cooperatives and collaborations in New Zealand, and there is no reason that the same approach cannot bring benefits for the red meat sector.

“New Zealand red meat production is at a crossroads.

“One way leads to secure economic sovereignty and maximised profits for New Zealand farmers and processors. The other leads to foreign takeover and the loss of benefits to New Zealand,” says Mr Prosser.

“When New Zealanders can do the job and deliver the benefits there is no need for foreign ownership in New Zealand. We need only look at foreign investment when it will benefit us, not work against our own plans and companies.”

ENDS

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