Friday, 27 January 2012 13:09

Crafar Farms verdict heads to court

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A local consortium which made an unsuccessful bid for Crafar Farms says it will challenge in court the Government's decision to approve a Chinese buyer.

The Crafar Farms Purchase Group says the sale of Crafar Farms to Shanghai Pengxin Group "is wrong in law".

It warns if not overturned by Judicial Review, the decision sets up open season for any foreign buyers wanting New Zealand land.

The Group is the highest New Zealand bidder offering $171.5 million for the 16 farms. The Government's farming SOE, Landcorp made a lower bid for the farms.

Following today's ministerial announcement approving the sale to Shanghai Pengxin, the Group confirmed it would proceed with a Judicial Review launched earlier this week to try to stop the land from being sold offshore.


The deal between the Crafar receivers and Shanghai Pengxin will effectively make the New Zealand Government a tenant on New Zealand soil to foreign investors.

The Group also confirmed that, if it is successful and becomes the owner of the farms, it will divide them amongst its members, which consist of local Central North Island farmers, iwi groups and Auckland businessman, Sir Michael Fay.

No member of the group would own more than two farms and all are happy for legal restrictions to be placed on the farms' title preventing, in perpetuity, their subsequent sale to foreigners.

A member of the purchase group, Hardie Peni of Tiroa E and Te Hape B Trusts, said his people were "dismayed but not deterred" by today's ministerial decision.

"All public opinion polls have been overwhelmingly against the Shanghai Pengxin bid, with more than 80% of New Zealanders against the sale of large parcels of productive farm land to overseas buyers," he says.

"This is one issue where all Kiwis, Maori and Pakeha, urban and rural, stand together. Kiwis are right to be mightily concerned that this National/Maori Party Government has stood by and waved foreign buyers through our farm gates."

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