Wellington, Sept 3 NZPA - Prime Minister John Key is a racist by Land Information Minister Maurice Williamson's reasoning, Green Party co-leader Russel Norman says.

In a speech to the small-business conference at Massey University yesterday Mr Williamson suggested people who opposed the foreign ownership of land were racist, the Dominion Post reported.

Mr Key has voiced concerns about foreign ownership and said he did not want New Zealanders to become tenants in their own country.

Mr Williamson was wrong to suggest people worried about foreign ownership of farmland were racist, Dr Norman said.

Mr Key was echoing the concerns of many New Zealanders and was not being racist, he said.

"New Zealand should not be selling off our best assets to Chinese, American or Australian investors.

"It's time ministers within the Key Government dealt with the valid economic concerns of New Zealanders on this issue without accusing those opposed to New Zealand selling its assets into overseas ownership of being racist," Dr Norman said.

Debate over foreign ownership has been heated since Chinese interest in buying Crafar Farms.

Hong Kong-based company Natural Dairy is bidding to buy 16 Crafar farms being sold by receivers.

The 13 dairy farms and three drystock grazing properties cover nearly 8000 hectares in the central and western North Island.

They have been in receivership since last October.

A review of the Overseas Investment Act is also under way.

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