It is pretty unusual for me to disagree with Brian Rudman, the thinking man’s curmudgeon. But today he accuses Labour of wrapping ourselves in the flag over the sale of the Crafar farms. Brian you have crossed the line, and provoked my first Red Alert post of 2012!
Free marketeers (and Rudman is not one of those) have long resorted to branding as racist anyone who opposes foreign ownership. But I don’t buy it, and never have.
If Labour didn’t have a policy of opposition to rural land sales to foreign buyers and we opposed the Chinese bid, then yes that would look like xenophobia aimed at the Chinese. But during the last parliamentary term we adopted new policy in this area, proposing to clamp down on the sale of rural land to foreign buyers unless significant benefits to the national interest could be demonstrated. And as David Parker pointed out on Monday, we have criticised sales to German, US, Chinese and other foreign investors.
So is it xenophobic to oppose any measure that promotes the New Zealand economy and limits foreign ownership in our economy? Is it racist of China and numerous other countries to place limits on the sale of land to foreigners in their countries? Of course not.
During the election campaign I did a talkback radio debate with National MP Jami-Lee Ross on the ethnic Indian station Humm FM. Jamie accused me of racism when I said National’s asset sales policy risked putting our most valuable SOEs in foreign hands. Two callers responded: newly arrived Indian migrants who disagreed strongly with Mr Ross, both saying they were Kiwis and wanted the assets to stay in New Zealand ownership, and that the issue wasn’t about race at all.
Brian also seems to think that because so much of our economy is foreign-owned we may as well sell what is left:
With our banks and insurance companies and much else long sold off – $45 billion worth in the hands of Australians the last time I checked – it seems a little late in the day for Labour to espouse this particular principle.
I don’t want to sell what is left. Labour learned the lessons of the botched privatisations of the 80s and 90s. The challenge for our generation in politics is to build up New Zealand’s assets. That is why we need to make Kiwisaver universal to build our capital markets. It is why we need to build successful Kiwi firms through investing in research and development. It is why we should not be selling down our most successful state owned enterprises, nor KiwiBank. And it is why we should not be selling prime rural land to overseas buyers.




