Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Sweet Chinese Deal for Silver Fern Farms is Sour for Farmers

Rt Hon Winston Peters
Member of Parliament for Northland
New Zealand First Leader
12 OCTOBER 2015

Sweet Chinese Deal for Silver Fern Farms is Sour for Farmers

New Zealand First is unsurprised that Silver Fern Farms has reacted bitterly to the latest counter proposal to keep it Kiwi.

“The CEO of Silver Fern Farms may use all the bluster under the sun, but this Shanghai Maling deal is nothing less than an ultimatum dressed up as an opportunity,” says New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters.

“New Zealand First’s Red Meat Industry Restructuring Bill, in contrast, would poll those with skin in the game on a Kiwi owned merger of Silver Fern Farms and Alliance Group.

“While the Silver Fern Farms deal is frozen from 15 October 2015, the co-op has provisional banker support contingent on a yes vote until 30 June 2016. That will probably happen since it’s a case of vote yes, or the likes of KordaMentha will be called in as receivers.

“The caveats to a yes vote are the Overseas Investment Office and of course, New Zealand First’s Meat Industry Restructuring Bill.

“However, by next June, Silver Fern Farms’ debt is forecast to be slashed by another $57m. As time passes the deal becomes sweeter for the Chinese but only more sour for farmers.

“And with the way beef prices are holding up, it is highly likely that by the middle of 2016, Silver Fern Farms net tangible assets will increase from $340m to about $400m.

“This means Shanghai Maling and the Chinese government will get a $139m discount in return for $261m in cash. As a direct result, the co-op’s board is being forced by its foreign bankers to give away $140m worth of farmer assets. That is not a good deal.

“It is also a reminder of what happens when New Zealand has no Kiwi owned commercial banks. Who are the winners here? A Chinese state-owned enterprise, Australian, Dutch and Anglo-Chinese banks, as well as Goldman Sachs, an American investment bank.

“What is good for New Zealand or the Kiwi red-meat farmer does not figure with so much international self-interest when we are led to believe Goldman Sachs stands to gain $8-10m in commission from the Shanghai Maling deal,” says Mr Peters.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Government: Labour and Greens reach a deal

The Labour Party and the Green Party will have a Cooperation Agreement that will see the Green Party Co-leaders hold ministerial portfolios outside of Cabinet, and areas of cooperation on climate, environment and child and community wellbeing issues. More>>

 


Referendum Preliminary Results: 'Yes' On End-Of-Life, 'No' On Recreational Cannabis

End of Life Choice Referendum The referendum asked the question: 'Do you support the End of Life Choice Act 2019 coming into force?' 65.2% Yes 33.8% No 1.0% Informal VOTES NUMBER OF VOTES RECEIVED PERCENTAGE OF TOTAL VOTES Yes 1,574,645 65.2% ... More>>

ALSO:

Gordon Campbell: On National Being Shafted By Its Own Creation

As it licks its wounds, let’s hope the National Party can still find time to look back with some pride at what it has achieved in Epsom. The Act Party’s nationwide success on Saturday night has been a tribute to National’s foresight, and to its ... More>>

ALSO:

Green Party: 'Fruitful Discussions ... Further Discussions To Have'

The Green Party says there is a negotiation going on with the Labour Party, but there are more discussions to be had. More>>

ALSO:


Border: No Changes To Border Exemptions After Fishing Crew Test Covid-19 Positive

The cases were detected after routine day three testing but the immigration minister and air commodore agree there's no need to change border exemptions. More>>

Election: ParityBOT_NZ Processed Nearly 200,000 Tweets To Find And Fight Online Abuse Over The NZ Election

Auckland, New Zealand: Of the almost 200,000 tweets directed at women candidates that Areto Labs’ proprietary election Twitter bot, ParityBOT_NZ, processed over the New Zealand election period, nearly 4,000 were classified as toxic and triggered ... More>>

Stats NZ: New Report Shows Significant Changes To New Zealand’s Climate

Climate change is already happening in New Zealand and could have a profound impact on future generations of New Zealanders, a new report from the Ministry for the Environment and Stats NZ says. Our atmosphere and climate 2020 , released today, includes analysis ... More>>

ALSO:

Judith Collins: Obese People Must Take Responsibility For 'personal Choices'

National Party leader Judith Collins has described obesity as a weakness and says people should not 'blame systems for personal choices'. More>>

Māori Party: Poll Reveals Tamihere On Cusp Of Historic Māori Movement Election Victory

John Tamihere’s election campaign is on the rise and on track to return the Māori Party to parliament, a new Māori TV poll has revealed. The poll released on 11 October during the seventh and final Māori TV Maori Electoral campaign coverage has Tamihere ... More>>


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels