The Chinese company behind a $1.5 billion investment in New Zealand's dairy industry has hit out at Agriculture Minister David Carter for comments suggesting a land purchase would not be approved.The Overseas Investment Office (OIO) is to consider a propo
The Chinese company behind a $1.5 billion investment in New Zealand’s dairy industry has hit out at Agriculture Minister David Carter for comments suggesting a land purchase would not be approved.
The Overseas Investment Office (OIO) is to consider a proposal by UBNZ Assets Holdings, a New Zealand registered company backed by Hong Kong-registered Natural Dairy (NZ) Holdings, which has a 20% stake.
UBNZ has put in a bid for 16 of the Crafar family farms, which have been in receivership since October, subject to OIO approval.
On the weekend Mr Carter said the sale to UBNZ was unlikely to go through.
Natural Dairy vice chairman Graham Chin said Mr Carter’s comment was a blatant attempt to subvert what should be an independent process.
“As a government minister Mr Carter should be making no public comments, personal or otherwise, on our OIO proposal,” he said.
Mr Carter’s comment was made at a National Party regional conference. His office said he was questioned from the floor about his opinion on Natural Dairy’s proposal.
“He is on record as saying there is a strict Overseas Investment Office process to be followed and that this proposal would have to meet the same thorough tests as every other overseas investor,” a spokesperson from Mr Carter’s office said in response to questions from Natural Dairy.
However, in its own statement last night, Natural Dairy said it was not prepared to accept Mr Carter’s argument.
“While he does not have ministerial responsibility for the Overseas Investment Office, as best his comments appear to be a very public coded message to [it] that it should reject the… proposal,” Mr Chin said.
Controversy has surrounded the Chinese-led bid from its beginning with opponents suggesting Chinese interest should not have the ability to buy up important New Zealand farmland.
Meanwhile New Zealand citizen May Wang, who owns 80% of UBNZ is facing bankruptcy proceedings.
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