A political party headquartered in Northland is challenging a government decision to allow the sale of financially-embattled Westland Milk Products to a Chinese dairy giant.
Social Credit, led by Whangārei-based party leader Chris Leitch, filed an application in the High Court this week for judicial review and sought to overturn a decision by the Ministers for Land Information and Finance for the sale to go ahead.
Inner Mongolian Yili, which is 25 per cent owned by the Chinese government and is Asia's biggest dairy producer, bought the Rolleston-based company in a deal worth $588 million.
The takeover, Social Credit argues, would leave Fonterra as the only significant New Zealand-owned processor of milk products.
"Ministers knew of the proposal very early in the process and the 'region's champion' Shane Jones had even announced funding of $10m from the Provincial Growth Fund for Westland Milk," Leitch said.