Shanghai Pengxin’s bid to buy the Crafar Farms was accepted the second time around because of promises that it (actually, Landcorp) would invest in building the farms’ productivity in a way a New Zealand buyer couldn’t. Instead, they immediately turned around and tried to sell 3 of the farms at an outrageous profit – offering to on sell to iwi 3 farms that include sacred areas at a 50% premium over what it is paying.
Pengxin has shown it has no intent of being bound to the commitments it has made to the Overseas Investment Office. This should aid the New Zealand group suing to stop the sale of the farms to Pengxin no end.
In a huge coincidence, Russel Norman’s bill that would ban farm sales overseas just drawn from the members’ ballot yesterday. In light of Pengxin’s behaviour, National’s going to have to give us some bloody good reasons for voting it down.