Foreign land sales complex, so farmers need the detail

Federated Farmers is looking forward to receiving the detail behind Labour’s newly announced foreign investment policy, as it similarly awaits detail from the Government.

“Federated Farmers wishes to take a principles approach to foreign investment in farmland, as it will be a major item before our November National Council,” says Don Nicolson, Federated Farmers President.

“Five hectares may be in the Overseas Investment Act, but as a farmer, five hectares might as well be 50 square metres. It’s important we understand the detail behind Labour’s new policy and for that matter, the Government’s recently announced changes.

“For us the property right is sacrosanct. What is farm policy today, could tomorrow become shares in a New Zealand company or for that matter, a unit in Takapuna.

“Things are not black and white. It’s incredibly complex so the last thing we need is for it to be interpreted overseas as a possible political veto on foreign investment.

“We have to be very careful about the signals we send. 82 percent of the $17.2 billion New Zealand Superannuation Investment Fund is for instance, invested overseas.

“The Government is itself borrowing $413 a second, or $250 million a week, to help take the sharp edges off the recession. Doing that may help insulate the domestic economy but it massively increases pressure on the already high Kiwi dollar.

“Appreciating the vast amounts of foreign money coming into New Zealand makes you look at an ATM machine in a whole new light.

“What’s also missing is a real debate around the principles underpinning foreign investment. Somehow we’ve skipped to solutions instead of understanding why we allow direct foreign investment into New Zealand and why New Zealanders invest overseas.

“In 2009, Kiwis were the sixth largest ‘foreign investors’ in Queensland, buying 2,669 land parcels worth almost AUD60 million, according to Queensland’s Foreign Ownership of Land Register.

“I think if the shoe was on the other foot, you’d have many people crying foul.

“It’s why our starting point is not in the negative but the positive. Irrespective of whether they’re from Manila or Manitoba, the New Zealand farm system can be made better by the people who enter it from outside of New Zealand.

“That’s why refining Federated Farmers policy on foreign investment at our National Council will be led by principles,” Mr Nicolson concluded.

ENDS

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