18 August 2015

Landcorp sales will go to foreign investors

The Government cannot let mismanagement of another State Owned Asset see large sales of productive farmland end up in foreign investors’ hands, Opposition leader Andrew Little says.

“Just a week after Solid Energy went into voluntary administration following years of disastrous Government management, Bill English today revealed he is considering partial privatisation of our biggest corporate farmer Landcorp which has for years returned good profits to the New Zealand taxpayer.

“Any sales of Landcorp farms are likely to go into the hands of foreign investors which will see more of our productive economy sending its returns offshore.

“Landcorp entered into a highly amibitious dairy conversion programme as the Government stood on the sidelines cheering the industry’s high prices. If it is now in difficulty, the blame can be laid squarely at the Government’s feet.

“Solid Energy was one of the biggest collapses of a state asset ever. Running one asset into the ground is bad enough, but getting another one into financial trouble is disgraceful.

“Landcorp owns almost 160,000 hectares of land. The chance of already stretched local dairy farmers buying those farms is close to nil.

“National promised not to sell any more state assets ahead of the election. This is yet another broken promise – it had better not be another broken state asset,” says Andrew Little.

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