October 18, 2012
Crafar decision opens floodgates to foreign buyers
The chair of the King Country Maori land trusts trying to block a Chinese company buying the 16 Crafar farms says the Supreme Court’s refusal to hear its appeal opens the floodgates for foreigners to buy up New Zealand land.
The three-judge panel rule that the ministers considering the application had been able to conclude that Shanghai Pengxin had relevant business experience when giving consent to the sale.
Hardie Peni from the Tiroa E and Te Hape B Trusts other investors will copy what Shanghai Pengxin has done to get around the Overseas Investment Office.
"The loose interpretation has now opened to floodgates for any investor to come into the country and there is no valid reason why their application should not be approved. Any passive investor can now come in, not have the experience, as long as you can contract it to keep you compliant, you can do that now," he says.
Tiroa E and Te Hape B Trusts are still negotiating with Shanghai Pengxin to buy two of the farms near Bennydale adjoining their existing blocks.