Land ownership ‘must stay with Kiwis'

Foreigners should be able to lease, but not buy New Zealand land, says a Waihi Beach rural financier.

'Foreign interests can lease as much land as they like but the sovereign ownership should stay with Kiwis,” says Don Fraser.

Rural finance Don Fraser says leasing land is the logical solution.

Don's comments follow news of the pending sale of Lochinver Station on the Napier-Taupo Highway to Shanghai Pengxin Group Co Limited - the same company which bought the Crafar Farms.

'New Zealanders are asking why land can't be leased, instead of sold. Yes, it brings foreign money to New Zealand, but only once as a purchase, and has no value to our country in 100 years.

'The right to farm our land is gone forever. The solution is to change the ability for foreign interests to buy, and move to only leasing which keeps the ownership in New Zealand.”

Benefits of leasing land include New Zealanders retaining the sovereign right to the land and a continued stream of income, says Don.

'A 100,000 kg dairy farm will have a total annualised rental income of $15,000,000 over 100 years, as compared to a sale price of $5,000,000 (based on $150,000 per year excluding any increases in rental.”

Don says Prime Minister John Key is missing the point when he says the Chinese are doing a better job of running the Crafar farms. The issue is land ownership.

'New Zealanders need to voice their concerns to government.”

Don says the Chinese are already close to owning one third of the New Zealand dairy industry, through shares in four dairy factories.

He believes the purchase of New Zealand farms is about the Chinese government's long term plan to ensure food security of its people.

'China wants to be self-sufficient in food supply. I understand China has the smallest amount of arable land per head of population and also has water worries.”

Federated Farmers is also uneasy about the potential sale of Lochinver Station to Shanghai Pengxin, says president Dr William Rolleston.

'While Federated Farmers supports positive overseas investment into New Zealand's farming system, it is concerned the potential sale of Lochinver Station to Shanghai Pengxin Group Co Limited, may not provide sufficient benefit to New Zealand.

'New Zealand absolutely needs foreign investment but it has to be of benefit to the local and national economy.

'That is why a ‘substantial and identifiable benefit' test was incorporated into the overseas investment decision tree, further bolstered in 2012 by a High Court decision adding a "with and without” counterfactual test.”

The Lochinver proposed sale and the commentary around it again highlights the need for research into the extent of the impact of overseas investment on NZ farmland, says William.

'Last year Federated Farmers wrote to ministers requesting research into the extent of overseas investment in farmland. We understand ministers were concerned at the potential cost, but the economic price of getting foreign investment rules wrong outweighs this.

'The reality is that here, no one knows how much of our farmland or housing is foreign owned. To base critical economic policy decisions around a hunch is unacceptable.

'We also hope the OIO will be able to share what the ‘substantial and identifiable benefit' to New Zealand is with the proposed overseas sale of Lochinver Station,” says William.

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15 comments

No sales!

Posted on 04-08-2014 12:45 | By SonnyJim

Must agree with Don. Such land sales do little for the economy. Let such investors create new services that leads to exports, not revamping existing farms that have been cruising along for years.


Right On Don

Posted on 04-08-2014 13:46 | By Merlin

That is right on Don.The land should remain in NZ hands.The Government are trying to get a free trade deal with China so anything goes for them.We need some politicians that have our values at heart not money.


Very sensible suggestion

Posted on 04-08-2014 14:12 | By morepork

Leasing looks like a very fair and sensible option. China needs to feed her people, we need foreign investment; if they can lease land here, everybody wins with no surrender of birthright for future generations.


Overit

Posted on 04-08-2014 15:27 | By overit

They have been busy in Australia too. It must be stopped. Lease is the way to go.


Quite right

Posted on 04-08-2014 15:28 | By Anbob

There are a lot of Chinese investors, as there are foreign investors. No problem with foreigners buying up houses, but selling land over 1/4 acre to foreigners will make farming your own farm an impossible dream for Kiwi's. National are not looking at the long term repercussions, only the short term gain as usual. Lease only, with a 50 year max term is the way to go,if you have to give land to foreigners.


Quite right

Posted on 04-08-2014 15:28 | By Anbob

There are a lot of Chinese investors, as there are foreign investors. No problem with foreigners buying up houses, but selling land over 1/4 acre to foreigners will make farming your own farm an impossible dream for Kiwi's. National are not looking at the long term repercussions, only the short term gain as usual. Lease only, with a 50 year max term is the way to go,if you have to give land to foreigners.


No Sales

Posted on 04-08-2014 16:21 | By sangrae

Don is right john key is missing the point he is only interested in selling of everything. When is he and his henchmen going to wake up KIWIS have had enough listen to us not the foreigners.


Thoroughly agree!

Posted on 04-08-2014 16:36 | By SML

Leasing is a perfectly legitimate economic arrangement, but leaves New Zealand citizens more secure that they won't become second-class citizens in their own land - or worse, peasants working the land of their forebears, for peasant wages for foreign owners. Any government (or political figure) that ignores the concern (and considerable growing groundswell of anger)of ordinary NZers at the selling off of major assets such as land is making a major miscalculation.


Kiwi ownership

Posted on 04-08-2014 16:42 | By YOGI BEAR

NZ must remain "Kiwi" no matter what. Even the Fijians have figured that with the influx of Indians, they have even taken up arms to ensure that it is so.


What's a New Zealander

Posted on 04-08-2014 18:20 | By Johnney

We are a young country populated by people from all corners of the world. What does it matter who is paying the highest price for our land, our houses etc. We live in a democracy, not a dictatorship where people willing to succeed have the freedom to choose. Kiwi's need to get over themselves.


lease not sell

Posted on 05-08-2014 01:37 | By rosco532

Been saying this for years...Just finished reading a realestate article Re the ''Ownership of land in China''...Chinese in their own country cannot buy land..Instead they can lease it for up to 70yrs which is the reason they are spreading their wings to other countries where they can purchase the land as an investment and eventually share in any capital gains as well as pass the land onto family. Interesting that they are more interested in ownership than the renting out of the property in the mean time as they are quite happy to buy and just sit on it...Selling to these people (who may never live in it) must be stopped now.


FOR LEASE ONLY!!!

Posted on 05-08-2014 18:59 | By tuatua2

We should never sell our country to any overseas buyers unless they have full New Zealand citizenship and live here. Leasing is the only option as we can not make any more land once its gone its gone. A Kiwi definately cant go to China and buy land its against the law. We as a country, have to stop trying to please our major trading partners by allowing them to buy our country.


Johnney

Posted on 06-08-2014 08:36 | By YOGI BEAR

Easy, if you are a citizen, you can own land. all others can only rent, I don't care if that is for 3 years or 100 years.


Dont sell!

Posted on 20-08-2014 11:20 | By DAD

It is only sensible not to sell our country to others!50 year leases would be ideal!


Wisechief

Posted on 26-08-2014 12:24 | By Wise Chief

The Dermally pale chaps have a cheek after stealing 97% of the 66,000,000 acres of land that makes this country while leaving a mere 3% of marginal for Maoris of which 60% of are now homeless or renting gypsies. After 179 years they still cant use their Maori-lands to get loans from UK/Aus/USA/Euro/Banks etc to develop or even put a house on are now adding insult to injury via selling it all off to foreigners all over again. Better for ALL if Maori burn country to the ground to create even playing field for all. They got nothing to lose with rapid climate change impacting hard worldwide, not that anyone here cares. Interesting only 5 English speaking colonialist countries are hellbent on not doing anything to mitigate emissions to try save planet. Sums up the Brit/Euro settlers selfish mean attitude who stole and now are re-selling land.


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