This is a fascinating court decision. The government has been told to go back and make a fresh assessment of the decision to allow the sale of the Crafar operations to Chinese interests, becauseof the errors made in assessing the benefits for NZ of the particular overseas investment involved. The first ground for challenge - the lack of specific dairy experience - failed. The second is made out inter alia because the Ministers misdirected themselves in law.
This may, of course, be only a temporary hiccup, yet the Court has been willing to contemplate the collapse of the Milk NZ purchase as a result of its decision, that is, the point of law is sufficiently important to contemplate such an outcome.
It is a government stuff-up, and not a little embarrassing. We'll see what ensues!
IDLE THOUGHTS OF AN IDLE FELLOW: The Ruminations of Robert Winter
As a layman this seems a very strange decision when a judge can over rule the recommendation of the professionals on the OIO who assessed the deal and approved it.
ReplyDeleteIt will be an injustice to all Crafer Farms Creditors if the highest bidder is ruled out.
The Crown should appeal.
Fascinating how the Chinese PR flack raised the spectre of xenophobia and Chinese reaction.
ReplyDeleteFascinating how Key said the Court "reinterpreted the law.
So the Court got it wrong?
Fascinating.