Don't shut out foreigners: Fed Farmers

Federated Farmers president Don Nicolson has scorned the Save our Farms lobby group, saying the sector needs talented migrants.

The group campaigns against the sale of farms to foreigners and Mr Nicolson said today it had completely missed the target.

"If we put up the 'get lost foreigner' sign we risk turning New Zealand into less than a set for The Hobbit but more like a backdrop for Southern Comfort," he told Federated Farmers' national council.

Mr Nicolson said Anders Crofoot, president of the Grassland Association, was an American who moved to New Zealand in 1998 with his family.

"He took citizenship in 2005 and is an example of the talented farming migrants we need to refresh the New Zealand farming system with new ideas, now concepts and new blood."

Mr Nicolson said New Zealand needed saving from the Government.

"It is acting like a fiscal hoover that lies behind the pressure on the Kiwi dollar and a sluggish economy," he said.

"The Government consumes 44 percent of our economy - 8 percent more than in 2000 - and that's $30 billion more in real terms, year on year."

Prime Minister John Key also spoke at today's meeting and used most of his speech to explain why New Zealand needed foreign investment.

"A recent study concluded that overseas investment in New Zealand lifted national income by around $5b between 1996 and 2006," he said.

"And investment is a two-way street - New Zealanders have around $53b of equity invested abroad while overseas investors have $61b of equity in New Zealand."

Mr Key said people had legitimate concerns about land sales to foreigners and the Government had reviewed the overseas investment regime.

"The Government is satisfied that we do now have the appropriate checks and balances," he said.