Posts Tagged ‘Michael Fay’

In a matter of days… not nine months?!

16 February 2012 2 comments



The Crafar Saga;  a time-line on the sale process,


5 October 2009: Crafar Farms placed into receivership, owing $216 million to creditors.

22 December 2010: Government  blocks  bid by Natural Dairy to buy the 16 Crafar farms on ‘good character’ grounds.

27 January 2011: KordaMentha accepts offer from Shanghai Pengxin International Group Ltd to buy Crafar Farms.

13 April 2011: Shanghai Pengxin lodges application with the Overseas Investment Office (OIO) to buy the Crafar farms.

26 September 2011: Crafar farms receiver KordaMentha  rejects a conditional NZ$171.5 million offer for 16 central North Island dairy farms from a group led by controversial former merchant banker Michael Fay.

26 November 2011: Parliamentary Election

27 January 2012: Government ministers approve Shanghai Pengxin’s application to purchase 16 Crafar farms.

15 February 2012: High Court over-rules  Government’s decision consenting to Shanghai Pengxin’s application to purchase


The OIO spent nine months assessing the Pengxin bid, which is reported to have valued the farms at $210 million, some $40 million higher than the bid by a consortium of New Zealand bidders led by merchant banker Michael Fay.” – Source

We don’t have a clear timeframe for this process but expect to receive the resubmitted recommendation report from the Overseas Investment Office in a matter of days, not weeks.” –  Mr Williamson, Ibid


It  took nine months for the OIO (Overseas Investment Office) to report their decision to Ministers Williamson and Coleman, for their rubber stamp approval…

But Minister Williamson now reckons it will only a matter of days to receive the resubmitted recommendation report from the Overseas Investment Office?!?!

… and this is the government that swears, hand-on-heart, that the extraordinary delay (applications normally take 50 – 70 days to process – not nine months) in processing and approving the Crafar purchase by Shanghai Pengxin, had nothing to do with the November election?!?!

The only thing worse than lying politicians?

Politicians who don’t lie very convincingly.

What a shabby, shonkey, shameful  government we elected last year.



Competing against the Chinese Government…

26 January 2012 6 comments

Cont’d from: Farms, politicians, and emails


Full Story


New Zealanders should take note of the following, which was reported in the above article,


“It is understood Pengxin has been conditionally approved to buy the farms, and management by Landcorp is thought to be among the conditions.

“We are in play, as we speak, doing due diligence on those farms,” Mr Kelly said. “We will then attempt to enter into a management contract. If we can’t, then that’s the end of the story. It’s extremely busy, but we’ve been asked by Pengxin to do our best and that’s what we’ll do.”

There was minimal risk to Landcorp in the deal. The only capital investment was likely to be in farm equipment and stock, which could all be absorbed back into the business if things fell apart.

New commercial opportunities in China could also open up later on as a result of the deal, Mr Kelly said.

Investigations into Pengxin are believed to have shown it to be a reputable trader with access to cheap credit from the Chinese Government.

“They’re not a Mickey Mouse outfit. What they’re doing is, without any question, advancing Chinese Government policy,” a source familiar with the company said.” Ibid


There we have it.

The Chinese government is pursuing an agressive policy to buy up farmland where ever possible, to pursue it’s own narrow, nationalistic agenda.

To facilitate this form of commercial neo-colonialism, it is funding nominally “private” companies (eg; Shanghai Pengxin) with cheap loans – loans that New Zealand companies do not have access to. These “private” companies are acting as de facto arms of the Chinese Government.

The questions that remain to be asked are;

  1. What is the policy of the Chinese Government in buying up farmland around the world? What is the purpose of this massive buy-up?
  2. Will our government accede to the Chinese government and permit the alienation of our own productive farm-base to a foreign government, pursuing unknown, hidden agendas?

In pursuing their agenda, New Zealanders cannot hope to compete with the vast resources of a major economic power. If one of New Zealand’s richest men (Michael Fay) cannot out-bid a foreign investor – then there is no way that ordinary Kiwis can compete.

We will be out-bid every time a foreign buyer (whether German, Americam, Chinese, etc) wants a piece of our land.

The result will be that that, in years and decades to come, New Zealanders will become tenants in their own country.

Landcorp is setting itself up to be the first tenant in a foreign own farm.

Will this  be our future?

And will  we permit it to happen?


Email addresses

Prime Minister, John Key:

Letters to Editor, Dominion Post:

Letters to Editor: Waikato Times:

Letters to Editor, NZ Herald:

Letters to Editor, The Press (ChCh):

Letters to Editor, ODT:



Labour on farm sales – NOT good enough!

21 October 2011 1 comment


Full Story


Labour has stated that,

A Labour government would ensure sales were declined unless potential foreign buyers of farm or forestry land also invested in new processing or other related jobs.Source

Sorry, Mr Goff, but that is totally unacceptable and is merely ‘tinkering’ with the problem.

The sale (or leasing) of our productive farmland means that we lose profits to overseas investors. It means that a foreign owned farm will (a) export their produce (b) make a profit (c) remit much of that profit back to overseas investors, who look for returns on their investment.

It means that New Zealand farmland is priced out of reach of our own people, who cannot hope to compete with Americans, Germans, Chinese, etc. The purchase of the Crafar  farms by Shanghai Pengxin’s over a Michael Fay-led local consortium should ring alarm bells in our heads.  (More here)

Labour needs to lift it’s game on this issue.

There has to be a total ban on the sale/lease of farmland to anyone who is not a New Zealand citizen.  Anything less will ultimately undermine our long term prospects for wealth-generation and prosperity.

We would end up tenants in our own country.