David Shearer

The Government's decision to allow the Crafar Farms to fall into foreign hands opens the way for more New Zealanders to become tenants in their own land, Labour Leader David Shearer says.

"We cannot sell our way to a brighter future, yet this Government seems determined to do exactly that.

"Approving the sale of these16 farms and selling our other valuable assets will leave New Zealand poorer. Kiwis understand that; it is why they are so overwhelmingly against it," David Shearer said.

"Pengxin group has no background in farm management. Landcorp, the Kiwi SOE which itself made a bid to buy the farms, will now be paying a Chinese Government-backed company a touted $18 million a year to rent and manage the farms for it.

"This latest decision will be a massive kick in the guts for the local group of iwi and farmers who also put in a bid," David Shearer said.

"They were very keen to take over the land and make it productive again. That would have provided jobs for Kiwis, not seen profits disappear offshore.

"John Key has tried to distance himself from the decision. He can't. In 2010 his Government was talking about how their changes to regulation 'increased ministerial flexibility to consider a wider range of issues when assessing overseas investment in sensitive land'.

"Ultimately the decision lies with John Key and his Cabinet.

"Labour is not against foreign investment but any deal must demonstrate added value for New Zealanders. This one doesn't," David Shearer said.