October 19, 2010 9:00am by David Farrar

Herald on Labour

Now, it says it would turn down big land sales to overseas buyers except in exceptional circumstances. That means Mr Goff, who was involved in many free trade deals, is overseeing a policy that would, for example, have big implications for the reciprocal provisions of the Closer Economic Relations agreement with Australia.

Labour’s policy is at a minimum against the spirit of CER, and is likely to kill off all the current work underway about further removing barriers between the two economies. It may well result in counter measures from Australia. If NZ bans Aussies from being able to buy land in NZ, then Australia may decide to end having an open labour market with New Zealand.

Unfortunately, this particular change, like the plan to axe GST on fresh fruit and vegetables, can be explained only in terms of populist appeal.

Populist and xenophobic. They have stolen Winston’s policies. Next I suspect they will start to rail against immigrants.

Despite its claims, its policy would be governed by the prevailing fancy, not what is best for the country in terms of economic benefit. A subject as vital as foreign investment is in danger of losing a foundation of sound and consistent principle.

That is too harsh. The sound and consistent policy is the desire for election. Not that Labour is alone there – National is also in danger of being seen to weaken a principle based policy for a populist policy in this area.