Mixed opinions over land sales

May Wang. Photo / NZ Herald

Publicity over Chinese company moves to buy New Zealand dairy farms continues to divide business. One-third of respondents to the Herald CEOs' survey are against the move.

The issue raised its head when the May Wang - who is now facing fraud charges in Hong Kong - fronted the initial Chinese-funded bid to buy the Crafar farms.

"Quite simply, New Zealand land is our strategic asset because of its limited quantity and productivity," said a company chairman. "Land is not China's strategic asset and in any case foreigners can only lease it and then I believe a Chinese partner is required. Also look at the evidence of the number of Chinese companies on New York stock exchange with accounting fraud and our own mixed experiences here. The reality is Chinese business is not transparent and operates under its own value sets that differ from our own."

But 48 per cent believe Chinese firms should be able to buy farms. Some said it would be" racist" to ban Chinese buyers.

Here's a range of views

* "If any overseas investor can, then that should include the Chinese. That is. 'any or none' as long as it meets Overseas Investment Office objectives and the overall business strategy brings benefit to parties involved and New Zealand."

* "Difficult question. Larger wine companies (Constellation, Pernod Ricard) effectively do that now. All the profit leaves New Zealand but jobs are created Agriculture is so important to New Zealand perhaps we should look at "lease land facilities".

* "Does it matter whether they are Chinese/American/European, etc? It's about foreign ownership of the country's key source of wealth. Whether that's good, bad or indifferent is a debate that has yet to be fully completed at a rational rather than racial level."

The OIO is still studying the subsequent Pengxin International bid for Crafar farms. A decision is not expected until after the election.

Some suggest the Government should limit the number of NZ dairy farms that can be sold to foreigners. Other noted the farms were the key point in controlling the value chain and said Chinese involvement should be limited to equity investment in dairy processing.

On the export front, 87 per cent believed there was a larger role for New Zealand businesses to play in driving NZ's footprint in China.

Said one exporter: "New Zealand does need to have a stronger, more unified, approach to doing business in China.

"We are sure there are many occasions where valuable export orders are missed due to our inability to provide sufficient volume to the market."

CEOs' wishlist

About 80 per cent of the CEOs came up with ideas on what a Key-led Government should "do differently" if it gets a second term. Here's a snapshot of their views:

* Be bold. If they have political capital, use it for good not popularity.
* Make a business plan for the nation.
* Fire the focus groups.
* Throw away the polls.
* Face down officials.
* Fire the entire Treasury team.
* Get TVNZ to focus on quality media and inquiry.
* Implement the Rebstock report and reprioritise welfare spending.
* Target youth unemployment - a ticking social timebomb.
* Close family trust tax loopholes.
* Reopen the mining issue.