Crafar sale approved
Maurice Williamson and Jonathan Coleman have announced:
Land Information Minister Maurice Williamson and Associate Finance Minister Jonathan Coleman have approved the new recommendation of the Overseas Investment Office (OIO) to grant consent to Milk New Zealand Holding Limited to acquire the 16 Crafar farms.
“New Zealand has a transparent set of laws and regulations around overseas investment,” Mr Williamson says.
“Those rules recognise the benefits that appropriate overseas investment can bring, while providing a range of safeguards to protect New Zealanders’ interests. They are applied evenly to all applications, regardless of where they are from.
“We have sought to apply the law in accordance with the provisions of the Overseas Investment Act and the guidance of the High Court.
“We have carefully considered the OIO’s new recommendation. The OIO sought advice from Crown Law and independent legal advice from David Goddard QC. The Ministers also sought advice and clarification from Mr Goddard.
“We are satisfied that on even the most conservative approach this application meets the criteria set out in the Act and is consistent with the High Court’s judgment.”
In other words, it would probably have been illegal to decline the application.
Dr Coleman said the consent came with stringent conditions.
“These 27 conditions have been imposed to ensure Milk New Zealand’s investment delivers substantial and identifiable benefits to New Zealand,” Dr Coleman says.
The conditions require Milk New Zealand to invest $16 million into the farms and to protect and enhance heritage sites.
“The combined effect of the benefits being delivered to New Zealand as a result of this transaction is substantial.”
It is worth noting that any NZ buyer would not have any binding conditions on them at all. They could hock them all off as individual farms.
A copy of the OIO’s new recommendation is at: http://www.linz.govt.nz/sites/default/files/docs/overseas-investment/oio-recommendation-crafar-farms-20120420.pdf
A copy of the OIO’s decision summary is at: http://www.linz.govt.nz/sites/default/files/docs/overseas-investment/decision-summary-201110035.pdf
I’m glad the Government has approved the sale. Not just because it was the law, but because China is a huge opportunity for New Zealand. The partnership between Landcorp and Shanghai Pengxin could lead to significant more opportunities in the future.