Crafar Farms Sale Group Fears the Worst

2 April, 2012

Crafar Farms Sale Group Fears the Worst

The Crafar Farm Purchase Group expects the worst as it awaits another decision from Government Ministers on the sale of the farms to China’s Shanghai Pengxin Group.

With the Overseas Investment Office (OIO) having made its recommendation to Ministers last week, Group Spokesman Alan McDonald said the buying group expected the OIO to reach the same pre-determined recommendation with Ministers then approving the sale.

“It’s been clear since the buying group made its first offer in June last year that Government has been determined to push this sale through despite the overwhelming public opposition to it,” said Mr McDonald. “Three out of every four New Zealanders oppose the sale of the Crafar Farms to overseas interests, but our Government gives every appearance it is softening up the public to give in to Chinese political pressure and say yes.

“That means the sale will go ahead despite ongoing Court of Appeal action and the preparation of a claim to the Waitangi Tribunal by our Iwi buyers.”

Mr McDonald said Iwi buyers in the Group were furious with Friday’s announcement and felt betrayed by a number of Government Departments, especially given the VIP treatment handed out to Shanghai Pengxin by the OIO.

Tuwharetoa representative Nigel Baker said Tuwharetoa and Ngati Rereahu fear the worst as they believe they are about to lose their final opportunity to reclaim and buy back land they first lost in the 1800s.

“The deal to sell this land was done before the election and only stalled with our successful judicial review,” says Mr Baker.

“When we compare the red carpet treatment given to Shanghai Pengxin, which has met numerous times with the OIO, to the fact Iwi don’t even get to look through the windows from the outside of this sale process, we are disgusted,” said Mr Baker.

“The OIO has glad-handed Shanghai Pengxin through the sale approval process despite the fact the Chinese have no expertise in dairying. Landcorp has also colluded with the Chinese and the OIO against the best interests of local Iwi.

“The Ministry of Land Information, which controls the OIO, the OIO itself and Landcorp are all required by law to consult with Iwi. But, despite many requests, we can’t even get in the door with the OIO or Landcorp.

“Crown Law has responded to our questions about being ignored by claiming there are no proven Wahi Tapu sites on the farms and that a letter written by us to the OIO is in fact consultation. That’s nonsense, especially when the 2008 He Maunga Rongo Tribunals report has been upheld in favour of Iwi, therefore establishing customary evidence of Wahi Tapu. Tuwharetoa also regards the Taharua in its entirety as Wahi Tapu and there at least 20 significant sites on the Taharua farm alone.

“Even the Chinese accept that there are a number of Wahi Tapu sites on the farms but the OIO just says no to Iwi.”

Mr McDonald said the buying group had expected the OIO to reach the same pre-determined approval recommendation with Ministers also bowing to Chinese Government pressure and approving the sale.

“We’re sure they’ll add a bit more window dressing to try and fluff up the economic case but it’s clear that Government has been determined to approve this sale despite the opposition,” said Mr McDonald.

Mr McDonald said the major concern now was that Shanghai Pengxin, the Receivers and the Banks would use the Easter period, while New Zealanders were taking a break , to organise a quick settlement, effectively rendering the ongoing legal challenge toothless.

“We’ve seen the legal process ignored just recently with the precedent set by UBNZ (the original Crafar Farm bidder now facing serious fraud and other charges in Hong Kong), which in 2010 illegally purchased four of the Crafar Farms without OIO approval. Nearly two years later those farms remain in UBNZ’s ownership, with the OIO and the Government powerless to unwind the sale.

Once the money is paid and the Crafar Farm land changes hands, a later Court of Appeal ruling against Shanghai Pengxin will be ineffectual – the land will have already gone to the Chinese.

ENDS

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