Labour MP Trevor Mallard believes a conspiracy may be afoot with the government trying to save face while at the same time deliberately stopping the Chinese buying up the Crafar farms.

Mr Mallard told Country99TV he thinks the Overseas Investment Office is delaying its decision on the Shanghai Penqxin group’s bid for Crafar farms, on instruction from the Government, until the receiver’s deadline passes.  

“Clearly if this is approved this is going to be really embarrassing, a real political hot potato. Because there are a bunch of 8 or 10 kiwi individuals and groups who are willing to buy the farms including iwi groups and neighbouring farmers.

“So you don’t need this. It’s embarrassing if it goes to the Chinese but if the Chinese are turned down, that’s embarrassing as well for the Ministers, as it will be seen as undiplomatic.”

Mr Mallard says the Chinese government is behind the Shanghai Pengxin group’s bid for the farms. 

 “My understanding is that the Chinese embassy has been involved in working on the bid and working with Landcorp around management arrangements. Clearly they wouldn’t be doing that if the bid was not backed by, if not, on behalf of the Chinese government.”

Mr Mallard says he is certain games are going on due to the length of time the OIO is taking, and that if it delays its decision until after the receiver’s deadline for the Shanghai Penqxin offer on January 31, then its bid is dead in the water.

However, a spokesman for the Overseas Investment Office said this simply isn’t true and that the Government has never instructed it to delay its decision.  

Further, the OIO has previously said that the delay was due to information missing from Shanghai Penqxin’s bid and that in December it received the information it required, which it is now assessing. 

But Mr Mallard says there are big issues at stake here for the future of New Zealand farming.

“If this was approved what it basically means is that over time every New Zealand farm will be subject to offers from offshore.”