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Shearer’s weasel words

by Whaleoil on February 5, 2012

Profitable NZ assets shouldn’t be sold to foreigners – so says David Shearer.

Presumably Shearer is saying that non-profitable assets can be owned by foreigners.

Putting aside the fact that it’s actually the business that is profitable, rather than the asset (which is a resource to be used by the business), what happens if Chinese, or Jews (according to the SST, Israeli’s are buying our land) live up to their reputed business acumen and turn non-profitable assets into profitable ones?

Should they be made to give them back to NZers, or are profitable NZ assets ok to keep, just not ok to buy?

It is ok for Crafar Farms to be owned by the Chinese since the farms went into receivership (and therefore aren’t profitable)

We think D-d-d-david Stutterer should tell us why it’s ok for foreigners to own losing assets but not winning ones.

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  • Mort

    WO, there’s no need to be snide about someone being a stutterer.

    • kehua

      Is it alright if he is a fuckwit as well as a stutterer?

  • Mort

    that type of behavior is unbecoming of you and is stooping to the level of leftists, who would rather play the man instead of the ball… or argue the ideology as the case may be

    • Thorn

      Its a class-war so the socialists say.If that is what they seek to sow, then so they shall reap. In a war you destroy and undermine the enemy until they lose the will to resist – f*ck off you re, re, re, re, re, tard.

  • Anonymous

    So the Crafar Farms went bust cos` they were making too much money?

    • Hakimofphut

      Didnt go bust . They never missed a payment.
      The banks put them into  recievership “ breached covenants on its loans”

      Legal jargon for the way they were running the business, which   meant they werent maintaining the properties

      • Anonymous

        Oh my goodness, you are ignorant of all things accounting. Breaching of loan covenants exposes banks to a level of risk that is unacceptable. A bank is a commercial enterprise required by shareholders to make money, they are not a charity. They are not legally obliged to loan people money and if the level of risk is too high then money will not be loaned. I would wager that the majority of those properties were on 100% finance and interest only repayments – they gambled on the property market purchasing the additional farms and it fell flat when they failed to maintain their obligations under a legally binding contract. As most people are aware, dairy farmers make their money on the capital gains on the sale of the properties – not the day to day running of them. Most common banking covenants I’ve seen? 1. Must have annual accounts and tax returns filed 6 months after balance date. 2. Must maintain a certain level of cash on call in the case of a fall in property values therefore increasing the banks’ risk. 3. Must not enter into finance agreements with other institutions. 4. Properties must be maintained to a commercially successful standard. 

        Why is it the banks’ problem if Crafar breached their LEGALLY BINDING CONTRACT? 

  • Anonymous

    We’re NOT “selling” the assets anyway. We are putting them up for PARTIAL sale.
    There is a big difference between mixed-ownership and a complete sale of an asset. 

    • Anonymous

      And Labour knows all about total asset sales….

  • Guest

    Exactly – more weaselly words by Labour – let’s call him TwoRoberts Shearer, because he’s a Bob each way.

  • Kim Arnold

    I agree Cam, although i just had lunch with my brother, who told me that he was opposed to land being sold as you can only sell it once…..Well i was forced to explain to him that he needs to get in touch with his heritage as we are Maori and we can sell the land or get paid for it on an average of every 25 years…I think he understood it. Ngati-Whatua i think said at one of their “final settlements” – “that they could not discount asking for payment in the future, as the current people could not speak on behalf of the future generations”.

    Shearer  is a perfect UN person – no substance when you ask a direct answer…. what is non-profitable?

    • Cadwallader

      Agree. Listening to Shearer is like blinking and seeing/hearing Goff. Complete lack of substance and sense.

  • Tjspooner

    Businesses do NOT go into Receivership because of lack of profits. They go into Receivership because of a lack of cash, which can happen whether profitable or not.  You can have a very profitable business put under by a Debenture holder and not always for honest reasons by the Debenture Holder, such as wanting to get their hands on assets for just what they are owed. Jean Jones shops are in this category.

    • Bunswalla

      So you’re saying that no businesses have ever, or can be, put into receivership because of lack of profits? Back to school for you sir.

      The vast majority of businesses that go tits up, which is what Crafar Farms did, end up that way because they spent more than they earned. Going into receivership is one of many first steps to going tits up. Farms are very seldom treated this way because they usually have a lot of asset backing for their overdrafts.

      • Hakimofphut

        Wrong , The Crafars didnt miss any payments – why would they at the current high prices.
        They just breached covenants  ( as TJS put its so eloquently) over the way there were run.

    • Anonymous

      Cash is required to fund debt – simple fact. Profit on the books is all very well and good but if you can’t meet your monthly cash obligations under a legally binding contract then you are out on your ear. In this case – what assets did Westpac (as debenture holders) want to get their hands on? The only winner in this situation (and probably 95% of all receiverships) is the receiver. Big fat fees, especially with businesses like the Crafar farms who were asset rich but cash poor. How would Westpac benefit from putting the Crafars into receivership if they were meeting their monthly cash obligations? Any gain on sale of secured property under a receivership is retained by the company, not the receiver and not the debenture holder. They get their capital and any interest accrued back (if their lucky) and nothing else. 

       http://www.business.govt.nz/companies/learn-about/closing-a-company/business-in-difficulty/receivership/receivership-life-cycle/

  • http://www.mydeology.co.nz JamesMeager

    Unneccesary commentary on the manner in which Shearer speaks. It reminds me of how the opposition attack John Key. You should be above that, Cam.

    • Anonymous

      agreed, c-c-c-cut it out C-C-C-C-Cameron.

  • Bunswalla

    People still seem to think that if you sell land to a foreigner, that the land is dug up and shifted overseas. Nobody ever really “owns” land anyway. All we are is custodians for the next generation, and the person that thinks land can only be sold once has only a passing acquaintance with history.

    • Hakimofphut

      Ask the Maoris about happens to your people when they sell the land

      • Anonymous

        They gain access to first world culture, technology, healthcare, goods, jobs and democracy?

    • ElJayDee

      Bunswalla, That “nobody ever really owns land” is only true of linig people. Crafar Farms have been sold to a Corporation and Corporations can last for a long time.While some land may have been sold many time, some corporate holding have laster over millenium (City of London).

  • Big Mac

    it was Bob Mahuta of Waikato who, as he got the cheque from that tosser Doug Graham, that he couldn’t speak for the next generation, or the next or the next. waikato haven’t had another “full and final payment” for nearly 20 years. They will be back soon for their fifth settlement. it never ends…… 

  • http://whoar.co.nz/ phillip ure

    i’m gonna start doing political cartoons..

    ..and my characters will have slogan t-shirts..

    ..i have key sorted..(“i (heart-symbol) rand’….

    ..but have been struggling with the blank slate that is shearer..

    ..after his wimp-out at waitangi…

    ..i have settled on ‘kum-bay-a’…

    ..phil@whoar.

  • http://whoar.co.nz/ phillip ure

    first cartoon is done and up…

    ..we did keys’ and shearers’ holiday-reading choices…

    phil@whoar.