David Carter

Wellington, May 25 NZPA - Agriculture Minister David Carter says when he made remarks that a sale currently being considered by the Overseas Investment Office is unlikely to go through he was unaware that contracts had been signed.

Prime Minister John Key yesterday told reporters he had had a word with Mr Carter warning him about further commenting on the proposed sale of the Crafar farms to overseas buyers.

Sixteen North Island farms owned by the Crafar family, reputed to be worth $100 million, have been in receivership since October. Real estate firm Bayleys has been appointed by receivers KordaMentha to sell the farms, ranging from 128ha to 1750ha in size.

Hong Kong based Natural Dairy (NZ) Holdings Ltd has put in a bid.

A spokesman for the company said a conditional purchase agreement was signed last Friday afternoon. It is conditional on OIO approval. The OIO assesses applications from overseas investors who want to buy sensitive New Zealand assets. It then makes recommendations to the Government whether or not it thinks the sale should go ahead and the Government has the final say.

Natural Dairy (NZ) Holdings last night accused Mr Carter of attempting to subvert an independent process.

"As a government minister Mr Carter should be making no public comments, personal or otherwise, on our OIO proposal," said vice-chairman Graham Chin.

"Natural Dairy has spent months of its time and considerable amounts of money to meet the requirements of the OIO and now we find the Minister of Agriculture seems to have pre-determined the entire approvals process."

The statement said Natural Dairy made inquiries to Mr Carter's office about the minister's comments and was told he made them at a National Party regional conference on Saturday when he was taking questions from the floor.

Mr Carter said at the weekend the sale was "unlikely to go through".

Today he told reporters when he made the remark he did not realise that the conditional contract had been signed.

"It's now before the OIO and there is a process and that now needs to be taken," Mr Carter told NZPA.

"At the time I made the remarks I was unaware of the contract being signed but now they deserve the process and I won't be commenting further."

Once the OIO made its recommendation Commerce Minister Simon Power and Land Information Minister Maurice Williamson would then make a decision.