Pengxin’s outrageous profiteering attempt

Written By: - Date published: 12:00 pm, June 29th, 2012 - 21 comments
Categories: farming, overseas investment - Tags:

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.

21 comments on “Pengxin’s outrageous profiteering attempt”

  1. mike e 1

    As the global economy continues to stay in depression except for a small number of countries.
    the spotlight turns to China and its economy,
    The various types of companies mostly state owned.
    Profit is missing from most companies.
    What China is doing is taking much of the Worlds resources And manufacturing as possible
    ( behaving like a monopoly)
    In the future when they have wiped out most of the competition through uncompetitive practices they will be able to make huge profits.

    • darkhorse 1.1

      Except they will have no customers to sell to mike e. That is what Germany has done to Europe. Europe is not a Greek problem it is a German Problem. We have a China Problem.

      There is no point in running a highly subsidised economy that destroys your customers ability to produce and earn while at the same time loaning them money to buy your highly subsidised goods.

      That is not trade.

      The end outcome of this strategy will be more like the highland clearance than anything else. Once dispossessed we will be driven from our land. It happened to the Scots – it happened to the Maori and every other indigenous population – it is now happening to the majority of us.

      John Key doesn’t care – only money matters to him – he is not a New Zealander he is an Internationalist and he is an agent for the new Corporate Feudalism. This is the psychopathic behaviour of the compulsively acquisitive – ultimately self-destructive but the pathologically greedy can’t see that they are blinded by the need to own things and by their own sense of superiority.

      We the sheeple allow it to happen by our apathy.

      • Bill 1.1.1

        John Key is no internationalist ‘darkhorse’. Globalist, perhaps. But internationalist? Absolutely not.

        • darkhorse 1.1.1.1

          Wouldn’t split hairs with you on the semantics Bill but yes maybe a Globalist perhaps more accurately a corporatist, definitely not a nationalist =- though possibly an Hawaiian

          • Bill 1.1.1.1.1

            It’s not mere semantics darkhorse. Internationalism has a very long history and is a term and idea firmly rooted in the left.

  2. ghostwhowalksnz 2

    The bid is still under legal challenge which could rule the OIO approval invalid , for a second time.

    Interestingly the sale to iwi offer was conditional on them withdrawing from the legal action. Could they have wanted to lock them into buying the milk as well so they were glorified sharemilkers ?

    Chinas milk production is twice that of New Zealand just out of interest. And Chinas production is half that of India.
    If they wanted security of supply of a insignificant food product you think they would be paying us to show them how…. oops Fonterra tried that which ended with dead babies

  3. bbfloyd 3

    “national going to have to give us some bloody good reasons for voting it down”… They’ve gotten away with using specious bullshit for the last four years…. what is going to be different this time?

    Is the news media going to actually report this accurately? Or are we just going to get more of the obsequious cheerleading going on now?

  4. Jackal 4

    I hate to point this out but… the sixteen dairy farms consist of an area the size of Hamilton, comprising of around 7892 Hectares. The two Bennydale farms are 1687 Hectares and the Taharua Road, Rangitaiki farm on the Napier Taupo Highway is 1751 hectares. So that’s 3438 Hectares or 43.5% of the total land area Shanghai Pengxin apparently purchased for $210. Therefore the actual price equivalent to what Shanghai Pengxin is believed to have paid for the three farms in question is $91.35 million, well above the amount offered.

    • McFlock 4.1

      land valuing isn’t my area, but it would depend on the development and use of the land, not just the total area. e.g. how much of them are gorse or native bush?

      • ghostwhowalksnz 4.1.1

        The iwi, who would have their own valuation from their attempts to buy it off the bank, seem to have that number allready

  5. fender 5

    Makes Pita Sharples look rather silly after his trip to China performing impromptu haka etc. declaring Shanghai Pengxin partnership a good thing, a 180 degree change to his earlier stance. He was on the 6 oclock news stating how Maori were to be given some of the farmland back. Guess he was severly mistaken and a huge rise in the cost was somehow lost in translation.

    • prism 5.1

      Don’t sneer at Pita Sharples. Maori are attempting to grow their bit of the economy and though we don’t like some Chinese moves we including Maori have to keep talking and trying to advance business projects.

  6. tracey 6

    be warned this is what will happen if a new govt wants to buy back the energy companies, in a couple of short years, notwithstanding GFC and recession the price will have risen enormously.

    • darkhorse 6.1

      The government can buy the assets back at what ever price it wants to pay. It is the government it makes the rules. Rule making can work two ways for the people or against the people =- presently they are working against us. That must change.

      These sales are theft not just of an community asset but of a cornersrtone of our nation’s future.

  7. Bill 7

    A private land owner attempting to convert land ownership into as much money as possible? Who’d ‘av thunk it?

    Oh yeah that’s right. Only every other land owner of the past couple of hundred years or so is all. (And that’s a very generous 50% approximation)

  8. Spam 8

    I’m sure Michael Faye’s consortium had purely altruistic motives, and would not have tried to sell any of the farms, instead donating them to charity.

  9. Macro 9

    “National’s going to have to give us some bloody good reasons for voting it down.”

    James, when has “reason” ever been a motivation for action by this crowd??

Recent Comments

Recent Posts

  • Shifty Bill jumps the shark
    Bill English's claim today that it has never been established that Todd Barclay's recordings of his staff took place is bizarre and shows a complete lack of honesty and leadership, says Labour’s Finance spokesperson Grant Robertson.  "Todd Barclay told Bill ...
    12 hours ago
  • Te Ture Whenua – gone by lunchtime?
    Māori Development Minister Te Ururoa Flavell has to front up about yesterday’s mysterious withdrawal of Te Ture Whenua Bill from Parliament’s order paper, says Labour’s Ikaroa Rawhiti MP Meka Whaitiri.  “Has he lost his way and has decided to run ...
    1 day ago
  • Bill English ignorance of law beggars belief
    For Bill English to claim he and others in the National Party didn’t realise the law may have been broken in the Todd Barclay taping scandal is simply not credible, says Leader of the Opposition Andrew Little. “The Prime Minister ...
    1 day ago
  • Government ignored advice on Pacific people’s superannuation
    The Government ignored advice from the Ministry of Pacific Peoples that raising the Superannuation age of eligibility would have a ‘disproportionately high impact’ on Pacific people, says Labour’s Pacific Island Affairs spokesperson Aupito William Sio.   “The Ministry for Pacific ...
    2 days ago
  • Bill English misleads Parliament on Police statement
    Bill English's attempt to restore his damaged credibility over the Todd Barclay affair has backfired after his claim to have "reported" Mr Barclay's actions to Police has proven not to be true, says Labour MP for Wellington Central Grant Robertson. ...
    2 days ago
  • Keep it Public
    The Green Party strongly supports the Tertiary Education Unions call to #KeepitPublic Keep what public? Out quality tertiary education system that National is trying to open up to more private for-profit providers with a new law change. The (Tertiary Education ...
    GreensBy Gareth Hughes
    2 days ago
  • This ‘technical error’ is hurting big time
    Jonathan Coleman cannot resort to his ongoing litany that the Ministry of Health’s $38 million budget blunder is an error on paper only, says Labour’s Health spokesperson David Clark. “He might keep saying it’s a ‘technical error’ but the reality ...
    2 days ago
  • Labour to invest in public transport for Greater Christchurch
    Labour will commit $100m in capital investment for public transport in Greater Christchurch, including commuter rail from Rolleston to the CBD, says Leader of the Opposition Andrew Little. “As the rebuild progresses, there are huge opportunities for Greater Christchurch, but ...
    3 days ago
  • Green Party will repeal solar tax
    It’s ridiculous for an electricity distribution monopoly to apply a charge on solar panels but worse than that, it’s harming our effort to tackle climate change. Hawke’s Bay lines company Unison last year announced a new solar charge for their ...
    GreensBy Gareth Hughes
    3 days ago
  • English fails the character test over Barclay
    Bill English is hoping this scandal will go away, but he is still dodging important questions over his role in covering up for Todd Barclay, says Leader of the Opposition Andrew Little. ...
    3 days ago
  • Government must apologise for Christchurch schools stuff-up
    The Ombudsman’s findings that the Ministry of Education botched the reorganisation of Christchurch schools after the 2011 earthquake are damning for an under-fire National Government, says Labour’s Education spokesperson Chris Hipkins. “The Ombudsman has found the reorganisation of schools in ...
    3 days ago
  • Government’s multinational tax measures weak
    The Government’s proposals to crack down on multinational tax avoidance, by its own admission only recovering one third of the missing money, means hardworking Kiwis will bear more of the tax burden, says Labour’s Revenue spokesperson Michael Wood. “The Government ...
    3 days ago
  • World Refugee Day – we can do our bit
    I’m really proud that yesterday, on World Refugee Day, the Greens launched an ambitious plan to increase the refugee quota to 5000 over the next six years. Of those places, 4,000 will be directly resettled by the government and another ...
    GreensBy Denise Roche
    3 days ago
  • PM’s leadership in question over Barclay affair
    The Prime Minister must belatedly show some leadership and compel Todd Barclay to front up to the Police, says Labour Leader Andrew Little. “Twice today Bill English has been found wanting in this matter. ...
    4 days ago
  • Another memory lapse by Coleman?
    The Minister of Health ‘couldn’t recall’ whether the Director General of Health Chai Chuah offered his resignation over the Budget funding fiasco involving the country’s District Health Boards, says Labour’s Health spokesperson David Clark. “In the House today Jonathan Coleman ...
    4 days ago
  • Bill English needs to come clean over Barclay
    Bill English needs to explain why he failed to be upfront with the public over the actions of Clutha-Southland MP Todd Barclay, following revelations that he knew about the secretly recorded conversations in the MP’s electorate office, says Labour Leader ...
    5 days ago
  • Minister, show some backbone and front up and debate
    Rather than accusing critics of his Te Ture Whenua Māori Bill of telling ‘lies’, Māori Development Minister Te Ururoa Flavell should show some backbone and front up to a debate on the issue, says Ikaroa-Rāwhiti MP Meka Whaitiri. “Te ...
    5 days ago
  • Equal pay for mental health workers
    Today, mental health workers are filing an equal pay claim through their unions. Mental health support workers do important and difficult work in our communities. But because the workforce is largely female, they are not paid enough. It’s wrong for ...
    GreensBy Jan Logie
    5 days ago
  • Nats’ HAM-fisted housing crisis denial
    National’s decision to knowingly release a flawed Housing Affordability Measure that underestimates the cost of housing is the latest evidence of their housing crisis denial, says Labour’s Housing spokesperson Phil Twyford. ...
    6 days ago
  • New Pike footage builds compelling case for mine re-entry
    New footage of the Pike River Mine deep inside the operation, revealing no fire damage or signs of an inferno, provides a compelling reason to grant the families of Pike River’s victims their wish to re-enter the drift, says Labour ...
    6 days ago
  • Labour will get tough on slum boarding houses
    The next Labour-led Government will legislate a Warrant of Fitness based on tough minimum standards to clean out slum boarding houses, says Labour’s Housing spokesperson Phil Twyford. “It’s not acceptable for New Zealanders in the 21st Century to be living ...
    6 days ago
  • Green Party tribute to Dame Nganeko Minhinnick
    Haere ngā mate ki tua o paerau; te moenga roa o ngā mātua tupuna. Haere, haere, haere. It was with a huge sense of loss that we learned of the death of Dame Nganeko Minhinnick yesterday. The Green Party acknowledges ...
    GreensBy Catherine Delahunty
    1 week ago
  • Urgent answers needed on DHB funding
      Jonathan Coleman must come clean and answer questions about what actual funding DHBs received in Budget 2017, says Labour Health Spokesperson David Clark.   ...
    1 week ago
  • Treasury puts Māori Land Service on red alert
    A damning Treasury report raises serious questions about the delivery of Te Ururoa Flavell’s proposed Māori Land Service, giving it a ‘red’ rating which indicates major issues with the project, says Ikaroa-Rāwhiti MP Meka Whaitiri.  “Treasury’s Interim Major Projects Monitoring ...
    1 week ago
  • Economy stalling after nine years of National’s complacency
    The second successive quarterly fall in per person growth shows the need for a fresh approach to give all New Zealanders a fair share in prosperity, says Labour’s Finance spokesperson Grant Robertson. ...
    1 week ago
  • Kiwi kids deserve much more
    All Kiwi kids deserve so much more than the impoverished picture painted by the shameful rankings provided by the UNICEF Innocenti Report Card, says Labour’s children spokesperson Jacinda Ardern. ...
    1 week ago
  • NZ Zone a precursor to a total nuclear weapon ban
    New Zealand’s nuclear-free zone, legislated by Parliament in 1987, is something we all take pride in. It’s important, however, that we don’t let it thwart its own ultimate purpose – a world free of nuclear weapons. That goal must be ...
    GreensBy Kennedy Graham
    1 week ago
  • English must confirm we still stand by our principles on UN resolution
    Bill English must tell New Zealand whether we remain in support of the UN Security Council resolution on Israeli settlements in Palestinian territory, says Labour Leader Andrew Little. “After Foreign Affairs Minister Gerry Brownlee’s evasive answers to repeated questions on ...
    1 week ago
  • Māori party drop the poi on Māori health
    The Māori Party have dropped the poi when it comes to supporting Ngati Whakaue and Māori interests in Bay of Plenty by allowing an iwi owned and operated service Te Hunga Manaaki to be brushed aside in favour of a ...
    2 weeks ago
  • Labour to invest in Whanganui River infrastructure
    Labour will work in partnership with the Whanganui Council to repair and redevelop the city’s Port precinct in advance of planned economic development and expansion. To enable Whanganui’s plans, Labour will commit $3m in matching funding for repairing the Whanganui ...
    2 weeks ago
  • Parihaka: an apology
    An apology only works for healing if it is sincere and if it is accepted. We teach our children to apologise and to be genuine if they want to be forgiven. On Friday, June 9 at Parihaka, the Crown apologised ...
    GreensBy Catherine Delahunty
    2 weeks ago
  • Survey shows many international students plan to stay in NZ after study
    Most international students in New Zealand at PTEs (private training establishments) who have a plan for themselves after study intend to stay in New Zealand to work. This shows how low-level education has become a backdoor immigration route under National, ...
    2 weeks ago
  • Councils step up as Nats drop the ball on housing crisis
    Phil Goff’s Mayoral Housing Taskforce is another positive example of councils stepping up where National has failed on housing, says Labour Housing spokesperson Phil Twyford. ...
    2 weeks ago
  • Time for a breather on immigration
    Labour will introduce moderate, sensible reforms to immigration to reduce the pressure on our cities, while ensuring we get the skilled workers our country needs, says Leader of the Opposition Andrew Little. “New Zealand is a country built on immigration. ...
    2 weeks ago
  • Inaction puts Māui dolphins at risk
    Conservation Minister Maggie Barry was at the United Nations Oceans Conference in New York last week, trying to convince the world that the New Zealand Government is doing a good job at protecting our marine environment.  Yet last week after ...
    GreensBy Eugenie Sage
    2 weeks ago
  • National unprepared as immigration runs four times faster than forecast
    National has been caught asleep at the wheel by record immigration that has outstripped Budget forecasts, says Leader of the Opposition Andrew Little. ...
    2 weeks ago
  • First home buyers shouldn’t carry the can for National’s failed policies
    The introduction of tighter limits on lending to first home buyers would see them paying the price for the National Party’s failure to recognise or fix the housing crisis, Labour’s Finance spokesperson Grant Robertson says. “Nine years of denial and ...
    2 weeks ago
  • Motel bill blows out as Nats fail to deliver emergency housing
    Minister Amy Adams has admitted at select committee that National has now spent $22m on putting homeless families in motels as it fails to deliver the emergency housing places it promised, says Labour Housing spokesperson Phil Twyford. ...
    2 weeks ago
  • Minister, how out of touch are you?
    What was going through Jonathan Coleman’s head in the Health Select Committee this morning when he claimed he was unaware that an estimated 533,000 people have missed out on a GP’s visit in the last 12 months due to cost, ...
    2 weeks ago
  • Divided we fall
    I’m getting pretty sick of the politics of division in this country.  The latest example was yesterday’s comments from NZ First leader Winston Peters having a good go in the House at driving up fear and loathing towards people of ...
    GreensBy Denise Roche
    2 weeks ago
  • Labour’s Electoral Amendment Bill to enhance democracy
    Democracy will be enhanced under Labour’s Private Member’s Bill which will have its First Reading today, says Labour’s Local Government spokesperson MP Meka Whaitiri. ...
    2 weeks ago
  • Police underfunded despite rise in crime
    As crime continues to rise dairy owners are scared for their lives and communities reel under a record increase in burglary numbers, it has now been revealed that Police received less than three quarters of their bid in this year’s ...
    2 weeks ago
  • Road pricing years off, public transport investment needed now
    With road pricing still years away, Labour will step up with investment in public transport to ease Auckland’s congestion woes, says Labour’s Auckland Issues spokesperson Phil Twyford. ...
    2 weeks ago
  • Call to protect Easter Sunday in Auckland
    Auckland’s Labour MPs are backing the community to protect Easter Sunday by retaining current trading restrictions in the city, says Labour MPs Aupito William Sio and Michael Wood.  “The Government’s weak and confusing decision to delegate the decision over Easter ...
    3 weeks ago
  • $2.3 billion shortfall in health
    The funding needed for health to be restored to the level it was seven years ago to keep pace with cost pressures has widened to a massive $2.3 billion, says Labour Leader Andrew Little.  “We used to have a health ...
    3 weeks ago
  • Catherine Delahunty: My Mataura River visit
    On June 1st the Greens swimmable rivers tour visited the Mataura river and communities connected to it. All we need now is a Government willing to set clear strong rules and support the new conversation about measuring our success by ...
    GreensBy Catherine Delahunty
    3 weeks ago