The Chinese-backed company wanting to buy the Crafar family dairy farms claims it meets the Labour Party's strict new foreign investment criteria, but the politicians say it does not.
A war of claim and counterclaim erupted yesterday between Natural Dairy (NZ) Holdings and the Labour Party, with the party's overseas investment spokesman, David Parker, saying Natural Dairy's land purchase application would not satisfy the party's foreign investment criteria should it become Government.
Natural Dairy said it met the party's criteria of bringing jobs, new technology and increased exports, by planning to expand the Crafar dairy farms creating jobs, build UHT and infant-milk plants and open an integrated supply chain in China.
"Companies like ours that come to New Zealand should have something to offer and be expected to add value and jobs to this country. That is exactly what Natural Dairy [NZ] Holdings plans to do once it gains Overseas Investment Office and government approval for its several hundred million-dollar investment in New Zealand."
But Mr Parker quashed the potential purchaser's optimism, saying New Zealand expertise in dairy technology led the world and processors already made UHT milk and infant formula.
"There is already substantial capacity in the industry and the expertise and capital needed to expand capacity if necessary."
He also appeared to pour cold water on other potential foreign investment in dairying.
"Given that our dairy farmers are already among the most efficient in the world, overseas ownership is not going to materially increase output."
Mr Parker revealed more detail on the party's proposed policy on foreign investment in land, saying sales would be declined unless a purchaser also invested in "significant further processing of related primary products and related jobs".
That investment could be in either new products or extra capacity for existing products where capacity was needed.
"In either case, the purchaser must prove that such capacity would be unlikely to be provided by the existing New Zealand industry," the policy stated.
