Russian milk, Kiwi cows

by frog

Yesterday New Zealand First’s Doug Woolerton took an opportunity to ask the Minister of Finance about Russian company Nutritek being allowed to create New Zealand’s first totally foreign-owned dairy producer and whether the Overseas Investment Act should have stepped in to do something about this takeover.  Foreign investment generally and the Overseas Investment Act in particular are some of the few areas you find New Zealand First and the Greens arguing a broadly similar line, although for different political and philosophical reasons.  So once Cullen had answered with his usual blather about technology, business skills, increased exports added market competition and greater efficiency, Sue Bradford asked a follow up question:

Sue Bradford: Does the Minister agree that this decision will mean that New Zealand taxpayers give Russian-owned Nutritek some $12 million over the next 5 years to cover the Kyoto Protocol cost of its greenhouse emissions; and would it not be better to keep our dairy industry in New Zealand hands, and to have the industry pay its own way instead of receiving taxpayers’ subsidies?

Hon Dr MICHAEL CULLEN: The owners of this business will be subject to exactly the same laws as any other owner of any primary sector business within New Zealand.

Hmm, that’s good to know given the way the government is currently bending over backwards for so many primary sector business lobbies to accommodate their desire to pass on the cost of their climate pollution to taxpayers.

But I thought the most telling exchange was in response to this later patsy from Jim Anderton:

Hon Jim Anderton: Does the Minister have any information about the assets that Fonterra, as a representative of the New Zealand dairy industry, is purchasing in other countries, and what would our reaction be if Fonterra were stopped from purchasing those assets?

Hon Dr MICHAEL CULLEN: Fonterra has acquired assets in China, in Chile, in other South American countries, I believe, and in Australia. Indeed, it is engaged in a major expansion of its international organisation. It is very hard for us to say to foreign-owned companies that they cannot buy any part of the New Zealand dairy industry, when the largest single player and trader in dairy products in the world is busy trying to buy up milk supply in other countries.

So, in return for Fonterra taking its model of industrial dairy, river pollution and carbon emission to the world we give up our right have our own locally owned businesses.  But that’s the unfettered free market at work, and I guess the end result for us consumers  should be cheaper milk… oh, wait a minute…

frog says

Published in Environment & Resource Management | Parliament by frog on Thu, May 29th, 2008   

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