Taxpayer shortchanged on SCF sale
New Zealand taxpayers will take a loss from the receivership sale of land owned by Cooper Horticultural.
The Overseas Investment Office recently gave permission for Craigmore Sustainables Farming fund to acquire land owned by Cooper Horticultural for $6 million.
The company was placed in receivership in June 2010 by the receivers of South Canterbury Finance, whose investors were protected by the government deposit guarantee scheme – ultimately, the New Zealand taxpayer.
The last receiver’s report for Cooper Horticultural reveals it owed:
- $12.6 million to South Canterbury Finance, reduced to $10.3 million with the sale of various orchard and crop assets.
- A further $6 million with the latest sale of land to Craigmore – 57ha at Gilbertson Rd, Napier; 37ha at 468 and 469 Lawn Rd, Clive; and 17ha at 91 Tukituki Rd, Haumoana.
Unsecured creditors owed $3 million are unlikely to see any proceeds.