The Government must make clear whether they intend to begin turning applications by overseas investors to buy New Zealand farmland, says Labour's Overseas Investment spokesperson David Parker.

"Yesterday's decision leaves New Zealanders none the wiser as to whether the National governemnt intends to turn down applications.

"The international situation has changed dramatically in the past two years. The world is divided between countries running huge current account surpluses and those running deficits, like New Zealand. Concentrations of wealth around the world, and liquidity constraints in New Zealand, more relevant now. Even poorer countries than New Zealand have concentrations of wealth borne of generations of inequality or state based control. We are at risk of our land being priced on an international market beyond the reach of New Zealanders.

"Assets sold at inflated prices set on an international market will lead to New Zealanders being effectively locked out of owning our own land. This will increasingly mean that those who can afford to buy our best and productive assets will either have to be from overseas or be born into a wealthy family and inherit large sums. Is this really the sort of country we want to live in? Surely it is better to have our land sold at prices New Zealanders can afford." David Parker said.

"We pride ourselves on being amongst the most efficient farmers in the world, so overseas ownership of our farmland is not going to materially increase production or export earnings."

"When I was Minister I began turning down some asset sales in 2008, as the global economic climate began to change. Where approval was given we extracted concessions (eg Poronui Station where we gained ownership of the river bed and access for all New Zealanders). In the last two years we have seen the emergence of purchasers wanting to buy large numbers of dairy farms, sometimes at the behest of banks selling at mortgagee sale. What is in the banks' interest is not necessarily in the wider interests of New Zealand," David Parker said.

"Now more then ever we need to be taking care to keep our farm land in New Zealand ownership.

"We still await confirmation (or denial) from the Government as to whether they intend to turn down sales of farmland to overseas investors."