While fumbling down the street this morning, walking into
all and sundry while trying in vain to pin my Chinese-made ANZAC poppy to my
lapel – succeeding only in repeatedly stabbing myself in the chest before
losing the pin in the gutter – I was reminded that today is the day the
Government plans to announce the sale of 16 former Crafar Farms to Chinese
conglomerate Shanghai
Pengxin.
A
large section of society is howling that we are “selling out New Zealand” and “bowing to China”. People are being swayed by the slightly
jingoistic argument that the Government is selling “our” land to uncaring
foreigners.
But
let’s look at the reality of the situation behind the screeching slogans and
nationalistic fear of overseas investment; let’s look at it without the
knee-jerk “tenants in our own land” argument and without invoking the Yellow
Peril.
Crafar Farms went into receivership in October 2009 – owing some $200 million
to Westpac, Rabobank and PGG Wrightson Finance – and, by all accounts, were
poorly managed financially and physically.
Using his existing land as leverage, Allan Crafar was rapidly expanding
his holdings at a time when the recession was biting and when Fonterra had
dropped the prices it was paying for milk, sending the Crafars into
receivership. On top of the massive
fines levied for pollution and animal mistreatment, one could guess things were
going to end badly no matter what happened.
So
here we have Australian banks left holding the bag with a $200 million hole in
it.
The
banks passed the debt on to receivership company KordaMentha, which was
actively seeking buyers to take on the farms and thereby relieve it of the
debt. At no stage was this “our
land”. It is private land and, before
going into receivership, Crafar himself said: "You'll get vultures
around wanting to buy up one or two of the good [farms]." He also stated clearly that he was holding
out to sell all 22 farms in one hit, and was in talks with both Australian and
Chinese companies. Before the
receivership took effect – and before the Government got involved – Allan
Crafar was looking to sell the entire whack to foreign owners and actively declined selling individual farms to New Zealand investors. This was his right as a private landowner.
But, nonetheless, the banks took the land and – as the new landowners – sought
their own buyer. The banks are merely
trying to plug the holes in their books – as Allan Crafar was doing with
his. So they looked around and found a
Chinese buyer willing to pay the price.
The Overseas Investment Office then gave approval to proceed and, on
that advice, the Government rubberstamped it.
And that’s when the banshees began to wail.
Tenants in our own land!
Selling out NZ to the highest bidder!
Selling our children’s future
All the money will be funnelled offshore!
Shame on you Prime Minister!
Despite the fact that this is a
private land sale, and that Crafar himself was heading down the same route, the
issue got a lot more public attention.
It was seized upon by Left-wing bloggers and far-Left political Parties who
stoked the negative public opinion by claiming that the National Government was
selling out New Zealand. The Labour
Party has also called on the Government to reject the deal – but is much more
cautious in its language because it recognises that the land is open to be sold
to foreigners. Labour’s main concern is
around the benefits of selling to this particular buyer, and not the actual
selling of the land itself – which is a reasonable position to take and much more
restrained than some.
The fact still stands, however, that this is a private sale – it is no more “our
land” than it was when Allan Crafar owned it. Not only that, but the cries of selling out New
Zealand ring hollow when you consider that it currently isn’t New Zealand-owned land. Rather, it is owned by Australian receivers – leaving
the Government in the unenviable position of having to sign the whole thing off
without actually have any title to the land.
Some suggest rejecting the Chinese bid and instead considering one from the
consortium headed by Sir Michael Fay. Fay presided as a ’consultant‘ during the biggest stock
market crash in New Zealand history; sold New Zealand assets in the 1980’s and
1990’s to enrich himself and his cronies; was twice investigated for insider
trading; was fined $20 million for dodgy dealings; and currently lives in
Switzerland while his New Zealand companies siphon all their money overseas. Fay’s bid is $30 million less than the Chinese
bid and some people realise he would buy it, sell it to the Chinese at a lower
price than the receivers have asked, and keep the profits offshore for his own
enrichment. Yet these same people think
Fay is the better option – which plays directly into the hands of the biggest New Zealand
crook of them all. Fay is not a
reasonable option.
Another suggestion is that the Government reject the deal outright and either
direct the receivers only sell to a New Zealand
owner, or compulsorily take the land back into New Zealand ownership. There are two problems. First: if the current bid is rejected, what
happens next? The receivers are under no
obligation to sell to a New Zealander and the Government has no way in which to
dictate the sale outside of rejection. If the receivers then approached the Government
with a US
buyer, the Government must then reject that offer or be accused of racism. So we hold out and reject every offer –
thereby causing the receivers to take a lower New Zealand bid – meaning the Government
has effectively forced a private company to take a loss on its own private
holdings. That doesn’t sound like an
appropriate response. I’m sure that
those pushing for this solution might kick up a fuss if the Government took a
similar approach to private citizens’ sale of their own property – ie: forcing
you or I to sell our house to a New Zealander for less than it’s worth, rather
than to a German who is offering to pay the full value. As for the Government retaking this land into New Zealand
ownership – well, that just amounts to theft. Plain and simple. Unless they pay for it, which I don’t think we
are in a position to do.
Unfortunately it would appear we have our hands tied. While I’m sure John Key and his team are
pretty pleased to sell to these Chinese investors, the reality is that they
don’t really have a choice. I don’t like
it much – Hell, I would love the land to stay in New Zealand hands. But I’m a realist and, as such, I don’t subscribe
to the bullshit being propagated by those with an axe to grind against the Government
or those who dislike the idea of foreigners buying New Zealand land. The xenophobic and borderline dishonest ‘the
Government selling us out‘ and ‘selling off our land’ arguments against this
sale are worse than the sale itself.
Meanwhile, those expounding and supporting them are doing so for
political expediency – forsaking reality and replacing it with their own
version of events. What’s worse is that people
actually believe them because it plays into their fears.
Besides, if my Chinese-made ANZAC poppy is anything to go
by, the whole fucking thing will fall apart anyway.