Rt Hon Winston Peters

Member of Parliament for Northland

New Zealand First Leader
16 OCTOBER 2015

Silver Fern Farms Serious for New Zealand’s Future

New Zealand First believes the government’s failure to support Silver Fern Farms is a serious matter for New Zealand’s economic future.

“This government is completely hands-off unless you are Rio Tinto, Mediaworks, Warner Brothers or a South Canterbury Finance investor,” says New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters.

“We know Silver Fern Farms tried to meet Finance Minister Bill English in June about its capital options, but Mr English was too busy to even reply.

“The big winners today are the Chinese Government, HSBC, Rabobank and the Commonwealth Bank of Australia. Meanwhile, Goldman Sachs pockets a cool $8-$10 million for putting this deal together.

“When farmers reflect they’ll realise what a sour deal this is. They get a one-off bump financially but trade away half-ownership and give the Chinese Government the unified say over the business plan, CEO and the timing and quantity of dividends.

“When National rolls over on Overseas Investment Act approval, it will invite an unprecedented procurement war that’ll break the other big red meat processors.

“Alliance Group’s pig-headedness over proposals to bring the industry together must rank up there with Nero fiddling as Rome burned. The ‘loyalty payments’ it announced last week are like bringing a pop gun to the shootout at the OK Corral.

“And once the deep pockets of Shanghai Maling clear the field, what’s to stop the new buyers loading the company up to the eyeballs in debt?

“It appears nothing has been learned from the recent Brazilian takeover of the Australian meat industry.”

ENDS

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