27 February 2012

Iwi Launch Legal Challenge on SOE and Crown Role in Farm Sales

Trusts representing Tu Wharetoa and Ngati Rereahu interests are launching a legal attack on the roles of State Owned Enterprise Landcorp and Land Information New Zealand (LINZ) in the sale of the Crafar Farms to the Shanghai Pengxin Group which has been sent back for reconsideration by the High Court.

Hardie Peni, Chairman of the Tiroa E and Te Hape B Trusts, said Landcorp’s focus on its commercial interests was effectively locking Iwi out of an opportunity to purchase land illegally obtained in the 1800s.

“We’ve retained leading Maori issues and Waitangi claim specialist lawyer James Johnston to investigate our claims under Section 9 of the SOE Act,” says Mr Peni. “In our view the Crown must take into account Maori interests in its decisions and we believe both Landcorp and LINZ - the Overseas Investment Office is part of LINZ – have failed in their obligations to Maori while facilitating the acquisition of sensitive land by an overseas buyer.

“Without Landcorp’s long-term involvement in negotiations with Shanghai Pengxin, the deal is going nowhere – the conditions of sale show that - and the fact the OIO is prepared to pass land containing sites of deep ancestral significance for Ngati Rereahu into overseas ownership, when there is an opportunity for us to buy this land back, is also acting against the best interests of Iwi.

“Obviously some of those on the Board at Landcorp were concerned about their involvement in this deal as I understand it took the casting vote of the chairman to secure Landcorp’s partnership with Shanghai Pengxin.”

Mr Johnston, a partner with Wellington-based Maori issues specialist law firm, Rainey Collins, said he was finalising an opinion with a view to filing proceedings on behalf of the two Maori groups this week.

“These Trusts represent Tangata Whenua, have very specific ancestral links to the land in question, and have the ability to reacquire this land on a commercial basis. That should have carried weight with both agencies involved in this transaction,” said Mr Johnston.

Tauhara Whenua Trust representative Nigel Baker said Tu Wharetoa also had concerns that Landcorp was facilitating a deal that acted against his Iwi and that Landcorp had been less than open about its role in the transaction.

“Despite denials it’s clear Landcorp has been in the thick of negotiations with Shanghai Pengxin and the OIO,” said Mr Baker. “I also find it incredible that the OIO, which is supposed to be mindful of retaining sensitive land for New Zealanders, publishes its own “How To” guide to help applicants from overseas get around its flawed interpretation of the OIO Act.

“Our information makes it clear Landcorp first became involved in this deal in the middle of 2011. In Mid January Landcorp CEO Chris Kelly was saying there was no such thing as a 50-50 sharemilking agreement with Shanghai Pengxin and denied that Landcorp would be paying about $18 million to Shanghai Pengxin to tenant the land. Two weeks later he confirmed the same deal at a greater tenancy cost of $20 million. This needs to be investigated further and we will be asking the Court to look closely at this deal and Landcorp’s role. No matter which way you look at it, both agencies deserve further scrutiny over what they are doing to Maori interests.”

Mr Peni said emotions among Iwi remained high with the number of occupiers on the Crafar Farms bordering his property near Benneydale swelling to 200 over the weekend.

ENDS

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