Criticism is mounting against a Maori trust buying up thousands of hectares of prime southern land, possibly on behalf of foreign investors, with Federated Farmers and the Green Party crying foul over aspects of the estimated more than $150 million offered for 28 farms.
Federated Farmers said yesterday it was "very nervous" of reports deposits may not have been paid, while the Greens rounded on the trust, claiming it may be acting as a "proxy" for foreign interests to engineer a "land grab" and avoid requirements under the Overseas Investment Act.
"The Overseas Investment Act needs to be strengthened to protect New Zealand's sovereignty.
We must ensure we pick up any attempt to use proxies to avoid the intent of the Act," Green's co-leader Russel Norman said in a statement yesterday.
The trust's spokesman is Invercargill-based Wynn Murray, who earlier this week declined to name the organisation or confirm rumours it was funded specifically by Dubai interests - but did confirm the trust had some overseas backing.
He did not return calls yesterday.
In late November, state-owned investment arm Dubai World stunned the financial world when it announced it was defaulting on payments of $NZ83.5 billion property-fuelled debt for six months, part of which $US10 billion ($NZ14 billion) has since been paid by another Emirate, Abu Dhabi.
In a statement to the Otago Daily Times yesterday, Dubai World corporate communications senior vice-president Sarah Lockie said the company was not involved in the dairy farm purchases.
Federated Farmers' rural security spokesman, David Rose, cautioned farmers to "conduct strict due diligence" before entering into any sale and purchase agreements for their farms.
"I am extremely nervous of reports that no deposits are being taken.
It is pretty fundamental that a deposit be exchanged as a tangible sign of good faith," Mr Rose said in a statement.
Mr Murray earlier told the Otago Daily Times deposits would be paid when contracts were finalised, by late February or early March.
Mr Rose said given Dubai, and Dubai World's "pressing business issues" over the default, he was concerned the "supposed backer may not be prioritising the purchase of Southland farms".
"The fact that a reported deposit milestone has already been missed is further cause for alarm," he said.
He urged both Federated Farmers members, and non-members, to seek legal and independent advice and to insist on taking a deposit.
Dr Norman claimed the present Government should desist from trying to weaken "already loose rules" covering overseas investment.
"Should overseas interests buy up large chunks of New Zealand's primary production, we risk losing sovereignty," he said.
