Court Halts Sale Of New Zealand Farms To
Chinese. Read this in Calgary Today just
had to post. Someone has finally woke
up.
A New Zealand court Wednesday halted the
first ever sale of dairy farms to
Chinese investors, the latest twist in a
saga that's dividing a country reliant
on agriculture for much of its export
earnings.
High Court Judge Forrest Miller ruled
the New Zealand government overstated
the economic benefits that the Chinese
investors would bring when the
government approved the sale of the 16
farms last month. Miller said the
government needs to review the sale
again using stricter evaluation
criteria.
Supporters of the sale — which would
have been the first to Chinese investors
— say it would encourage international
trade, while others say farmland needs
to stay in the hands of New Zealanders
if the country is to remain prosperous.
The potential buyer is Shanghai Pengxin,
run by wealthy property developer Jiang
Zhaobai. The company says it wants to
spend more than 200 million New Zealand
dollars ($164 million) buying and
improving the farms.
A consortium of local farmers and
businessmen led by merchant banker Sir
Michael Fay filed the court action
seeking to block the sale. The group
earlier offered to pay 171 million New
Zealand dollars ($140 million) to buy
the land itself.
"We're very pleased with the decision
from Justice Miller," said consortium
spokesman Alan McDonald. "Our view is
that Shanghai Pengxin never brought any
real economic benefits to New Zealand."
The judge essentially ruled that the New
Zealand government used a false
comparison when evaluating the benefits
the Chinese would bring to the farms,
which are currently in bankruptcy and
poor repair. The judge said the benefits
from the Chinese needed to be measured
not against the farms' current state,
but against the benefits a New Zealand
buyer would bring.
Cedric Allan, a spokesman for Pengxin,
said he believes the Chinese investment
will benefit New Zealand under either
measure, and he said he expects the sale
will still go ahead after a second
government review.
"Personally, for me, the ruling is a big
surprise, I hadn't read the Overseas
Investment Act in that way," he said.
"We're still pressing ahead as fast as
we can, and we're still confident we are
going to get the final signoff."
The case has been watched closely by
Chinese officials, who earlier expressed
concern at delays in the sale.
New Zealand relies on China to buy much
of its farming exports, including its
dairy products. In 2008, the two
countries signed a free-trade agreement,
the first such agreement between China
and a developed nation.
Maybe some day our politicians will
figure it out. No Communist nation will
every just purchase land from you.
NEVER!!!!!!!!!!!!!!!!
Chinese. Read this in Calgary Today just
had to post. Someone has finally woke
up.
A New Zealand court Wednesday halted the
first ever sale of dairy farms to
Chinese investors, the latest twist in a
saga that's dividing a country reliant
on agriculture for much of its export
earnings.
High Court Judge Forrest Miller ruled
the New Zealand government overstated
the economic benefits that the Chinese
investors would bring when the
government approved the sale of the 16
farms last month. Miller said the
government needs to review the sale
again using stricter evaluation
criteria.
Supporters of the sale — which would
have been the first to Chinese investors
— say it would encourage international
trade, while others say farmland needs
to stay in the hands of New Zealanders
if the country is to remain prosperous.
The potential buyer is Shanghai Pengxin,
run by wealthy property developer Jiang
Zhaobai. The company says it wants to
spend more than 200 million New Zealand
dollars ($164 million) buying and
improving the farms.
A consortium of local farmers and
businessmen led by merchant banker Sir
Michael Fay filed the court action
seeking to block the sale. The group
earlier offered to pay 171 million New
Zealand dollars ($140 million) to buy
the land itself.
"We're very pleased with the decision
from Justice Miller," said consortium
spokesman Alan McDonald. "Our view is
that Shanghai Pengxin never brought any
real economic benefits to New Zealand."
The judge essentially ruled that the New
Zealand government used a false
comparison when evaluating the benefits
the Chinese would bring to the farms,
which are currently in bankruptcy and
poor repair. The judge said the benefits
from the Chinese needed to be measured
not against the farms' current state,
but against the benefits a New Zealand
buyer would bring.
Cedric Allan, a spokesman for Pengxin,
said he believes the Chinese investment
will benefit New Zealand under either
measure, and he said he expects the sale
will still go ahead after a second
government review.
"Personally, for me, the ruling is a big
surprise, I hadn't read the Overseas
Investment Act in that way," he said.
"We're still pressing ahead as fast as
we can, and we're still confident we are
going to get the final signoff."
The case has been watched closely by
Chinese officials, who earlier expressed
concern at delays in the sale.
New Zealand relies on China to buy much
of its farming exports, including its
dairy products. In 2008, the two
countries signed a free-trade agreement,
the first such agreement between China
and a developed nation.
Maybe some day our politicians will
figure it out. No Communist nation will
every just purchase land from you.
NEVER!!!!!!!!!!!!!!!!
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