“Since Lochinver is so highly regarded in farming circles this was always going to be a tough test to pass, and because the station is three times the land aggregation trigger level for foreign investment, it had to be a test that was carried out thoroughly and confidently”.
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The main factor that tipped the balance, according to Ms Bennett, was the size and therefore national significance of Lochinver Station, compared with the benefits in terms of job creation and an increase in exports.
“For the previous year the National Party has told anyone who opposed land sales to foreigners that they were xenophobic”, said Labour’s finance spokesman Grant Robertson.
And Shanghai Pengxin said it was “surprised and extremely disappointed with the decision”.
Ms Bennett says it was a matter of “weighting” – or more simply that the ministers did not see that the purchase of Lochinver by the Chinese company would deliver the same level of benefits the OIO believed it would.
It said the question of whether the benefits of the potential investment to New Zealand were or could be substantial and identifiable was finely balanced in this case, and recommended approving the application.
Stevenson Group, which agreed to sell the property to the Chinese buyer, said it was unclear why the farm was different to others that had been approved.
Gary Romano, chief executive of Pengxin worldwide , and Mark Franklin of Stevenson Group couldn’t immediately be reached for comment. She has no qualms in saying she made the decision in the best interests of New Zealand, rather than bowing to public opinion.
The OIO also listed other benefits the deal offered including a financial contribution to the local Rangitaiki School, the agreement to sell lake and river beds to the Crown, conservation measures to protect waterways and trout, and to provide walking access and preserve historic sites, including a submerged waka.
The Stevenson family has owned Lochinver for 60 years but started as a drain-laying business in 1912, expanding into quarrying and construction in the late 1930s, and making concrete blocks from 1946.
New Zealand China Trade Association Chairman Martin Thomson said the victor proved the benefits of direct investment by China in New Zealand. The original 5,260 ha Lochinver farm was acquired in 1958 and the family expanded to 16,595 ha “breaking the wild country into farming land” with “an enormous amount of hard work”.
“It stands to reason, then, that China – which is now our number one or two trade partner, will invest more and more in New Zealand”.
Public opposition to Chinese investment in New Zealand has been growing, mainly due to the so-called heated property market in Auckland.
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Mr Key doesn’t believe there will be a backlash against New Zealand by foreign investors, pointing to the Silver Fern Farms deal which is likely to be approved. “On the basis of Milk New Zealand Holding further investment is a good thing”.
