Fresh legal challenge to Chinese bid for NZ farms
Source: Xinhua |
April 28, 2012, Saturday
|
Print Edition
Print Edition
A NEW Zealand group that went to court to overturn government approval for the sale of 16 North Island dairy farms to a Chinese company is taking fresh legal action to stop the deal.
Sir Michael Fay, who heads the Crafar Farms Independent Purchasers Group, lodged its appeal in the High Court in Wellington on Thursday.
The group is challenging a ruling that Shanghai Pengxin has the necessary business acumen to run a dairy farm business, Radio New Zealand reported yesterday.
The High Court had set aside the government's original approval for the sale and asked the Overseas Investment Office to reconsider the recommendation based on new criteria for the benefits of foreign ownership.
Last week, the government announced it would again approve the Shanghai Pengxin deal based on a new recommendation from the OIO.
Radio New Zealand reported a spokesman as saying that the New Zealand group, which includes indigenous Maori interests, was determined to take any practical steps to stop the sale.
The new appeal to the High Court has the same basis as the first, which is that the Shanghai Pengxin bid failed the test of relevant business experience and acumen, said the report.
In February, the High Court in Wellington upheld the New Zealand group's argument that the Overseas Investment Office had failed to properly consider the benefits a foreign buyer would bring to the farms, and the court set aside OIO's recommendation to the government.
However, it rejected the argument that Shanghai Pengxin failed to have the appropriate business expertise and experience to operate dairy farms in New Zealand.
A spokesman for Shanghai Pengxin told the radio station that the New Zealand group was grasping at straws.
Cedric Allen said Pengxin already owned several large farms overseas and more than met the requirements of New Zealand's Overseas Investment Act.
Shanghai Pengxin first submitted a reported bid of NZ$210 million (US$170.86 million) to the OIO on April 13 last year, before the rival New Zealand offer of NZ$171.5 million.
The farming industry association, Federated Farmers, has said that another legal challenge would further discourage overseas investment in New Zealand.
Federated Farmers Chairman Bruce Wills said other foreign investors would not want to be caught up in similar protracted legal action and could be put off investing in New Zealand businesses.
Sir Michael Fay, who heads the Crafar Farms Independent Purchasers Group, lodged its appeal in the High Court in Wellington on Thursday.
The group is challenging a ruling that Shanghai Pengxin has the necessary business acumen to run a dairy farm business, Radio New Zealand reported yesterday.
The High Court had set aside the government's original approval for the sale and asked the Overseas Investment Office to reconsider the recommendation based on new criteria for the benefits of foreign ownership.
Last week, the government announced it would again approve the Shanghai Pengxin deal based on a new recommendation from the OIO.
Radio New Zealand reported a spokesman as saying that the New Zealand group, which includes indigenous Maori interests, was determined to take any practical steps to stop the sale.
The new appeal to the High Court has the same basis as the first, which is that the Shanghai Pengxin bid failed the test of relevant business experience and acumen, said the report.
In February, the High Court in Wellington upheld the New Zealand group's argument that the Overseas Investment Office had failed to properly consider the benefits a foreign buyer would bring to the farms, and the court set aside OIO's recommendation to the government.
However, it rejected the argument that Shanghai Pengxin failed to have the appropriate business expertise and experience to operate dairy farms in New Zealand.
A spokesman for Shanghai Pengxin told the radio station that the New Zealand group was grasping at straws.
Cedric Allen said Pengxin already owned several large farms overseas and more than met the requirements of New Zealand's Overseas Investment Act.
Shanghai Pengxin first submitted a reported bid of NZ$210 million (US$170.86 million) to the OIO on April 13 last year, before the rival New Zealand offer of NZ$171.5 million.
The farming industry association, Federated Farmers, has said that another legal challenge would further discourage overseas investment in New Zealand.
Federated Farmers Chairman Bruce Wills said other foreign investors would not want to be caught up in similar protracted legal action and could be put off investing in New Zealand businesses.
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