Mike Hosking is brutal on Monday mornings, today he gave Phil Goff a good hard kicking.
So what does Phil Goff’s Rural Land Sales Bill really mean if you own rural land? It means you’re in trouble.
Phil doesn’t seem to understand the global economy. Phil is trading on xenophobia. Because it’s not really about foreign ownership, it’s about Asian ownership. they just don’t say that because that might be racist.
The real foreign land owners in this country ironically aren’t Asian. They’re Brits and Australians. But they don’t look so different so they don’t attract attention.
But back to the farmer who owns the land…where’s his investment? In his business, it’s his income, his retirement, his legacy, all he has in the world is in his land. If he’s a dairy farmer, he makes a fortune for the country, and he does that by making products better than anyone else and allowing him to sell that product to the world for high prices.
He is a player in the global market. Ironic then that if he ever came to sell that land, the land that made the country so much money, that he would be restricted as to who he sold it to.
And what’s he supposed to do under Phil’s law when he puts his farm on the market, and he wants $3 million for it, and no one locally wants to buy it, and the person who does want to buy it is from Gosford in New South Wales, or Natucket in America? Or, god forbid, Shanghai in China?
Is his farm worth the $3 million the foreigners are prepared to pay, or nothing he’s been offered locally. The moment you make the local market the only market is the moment you watch the value of that farm plummet. And when it plummets, the ability to borrow and work that land diminishes with it.
How Phil doesn’t see that is beyond me. But he doesn’t, and the fact he doesn’t should be a warning to us all. Read more »