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

 

Massive Rent from Landcorpto under Crafar Farm Deal

For Immediate Release

12 January, 2012

Massive Rent from Landcorp to Shanghai Pengxin under Crafar Farm Deal

Landcorp will pay the Chinese owners $18 million per year to be tenants on the Crafar Farms if the Shanghai Pengxin Group’s application to the Overseas Investment Office (OIO) is successful.

Despite Landcorp’s refusal to comply with an Official Information Act request to provide details of its contract negotiations with the Chinese, Hardie Peni, Chairman of the Tiroa E and Te Hape B Trusts and one of several investors in the central North Island based farmers’ group also seeking to purchase the farms, says details are beginning to emerge locally.

“From what we’re hearing Landcorp have negotiated a deal that is the standard 50-50 sharemilking deal familiar to the wider dairy industry,” says Mr Peni.

“Prime Minister John Key said last year that we didn’t want to be tenants in our own land. On current Fonterra payout numbers and based on Landcorp’s plan to produce 5.2 million kilograms of milksolids per annum, Landcorp, a taxpayer owned Government farmer, will pay the Chinese sitting in Shanghai, $18 million in rent per year to be tenants on what was our own New Zealand farm land.

“No matter which way you look at a deal like that it just seems stupid when there are New Zealand farmers ready willing and able to buy these farms and keep producing milk for the benefit of our local and national economies.

“It is especially hard for us as Iwi with deep ancestral links and claims on this land to consider the possibility of the land going into overseas ownership with the likelihood it will never come back to us.”

Mr Peni said the fact that OIO figures showed approvals for sales of land were increasing should be a concern to all New Zealanders and was a matter of national sovereignty.

“New Zealand farmers can’t buy land in China but overseas buyers are snapping up farms and other valuable land in New Zealand at a rate of more than 107,000 hectares per year for the past five years (2006-2011 OIO figures). That’s 10 Crafar Farm transactions every year.

Mr Peni said his farming group believed Shanghai Pengxin Group failed the OIO’s key test to buy land because Pengxin is clearly nothing more than a passive investor.

“They are a construction and mining company that admits they don’t know how to farm. But Landcorp’s involvement allows Pengxin to get approval for a deal that surely must be turned down.

“The only publicly available information shows Shanghai Pengxin Group has a very high level of debt but has somehow found the backing to make a $200 million deal for the Crafar Farms. Again we’re hearing their backing comes from a major Chinese dairy company that is a direct competitor to Fonterra.

“If that’s the case Landcorp is not only competing against New Zealand farmers for land, it’s also helping our rivals compete against New Zealand’s most successful export earning company. Is that what the taxpayer wants from our tax dollars?

“Giving the go ahead to the Pengxin/Landcorp deal makes no sense. It sets a precedent that is an immediate threat to our national sovereignty.”

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>

PriceSpy: Research Reveals How Shopping Behaviours Have Changed This Christmas

According to a new survey* from PriceSpy , almost 50 per cent of Kiwis are looking to shop locally this Christmas in light of Covid-19; The research also found consumers are changing their shopping habits, with one in seven (14 per cent) getting super-organised ... More>>

Commerce Commission: Noel Leeming Group Warned For Making Delivery Representations Without Reasonable Grounds During COVID-19 Lockdown

Noel Leeming Group has been warned by the Commerce Commission for making delivery representations about two products which, in the Commission’s view, it did not have reasonable grounds for at the time the representations were made. The warning ... More>>