Editorial: A key issue for Kiwis

Prime Minister John Key supports the deal as long as the correct processes are followed.

The potential sale of Lochinver Station to overseas interests has become a hot election issue.

Chinese company Shanghai Pengxin, through subsidiary Pure 100 Farm Ltd, has signed a sale and purchase agreement for the 13,800-hectare station, valued at over $70 million and situated 92km northwest of Napier.

Shanghai Pengxin controversially purchased Crafar Farms in 2012 for $200 million.

The Overseas Investment Office is yet to approve the sale.

Conservative Party leader Colin Craig, who revealed details of the deal, and New Zealand First leader Winston Peters have spoken out against the move.

Mr Peters has gone as far as to say he "will put a stop to sales of land and houses to non-residents".

Prime Minister John Key supports the deal as long as the correct processes are followed and Economic Development Minister Steven Joyce has accused Labour of xenophobia in opposing the deal.

The station was a "ridiculously small amount of land" in the North Island to sell off, Mr Joyce said.

That's true, but if the deal goes ahead it will still be the second-biggest sale of New Zealand farmland to a foreign owner in terms of value and one of the biggest by area.

It is vital that a knee-jerk political move does not influence the sale of Lochinver Station. This would be unfair and would also frighten foreign investors, who are crucial to our economy.

However, land ownership is an important issue and one that Kiwis obviously feel strongly about.

The long-term impact of large tracts of land being sold to foreign buyers is worthy of reasoned debate.