Listen: Silver Fern Farms shareholder speaks out

The closure of Silver Fern Farms' Fairton plant has prompted questions about the government's support of the sale of half the company to Chinese interests last year.

It was revealed yesterday that Silver Fern Farms has proposed shutting its Fairton sheep meat processing plant near Ashburton with the loss of 370 jobs in a small community.

The Overseas Investment Office told the National Party that the Shanghai Maling buy-in should be approved, because it would result in increased investment, and substantially benefit the country.

Silver Fern Farms shareholder Blair Gallagher told Rachel Smalley Shanghai Maling has been calling the shots since it took fifty percent ownership.

"Shanghai Maling still appoint the CEO, approve the business plan, so we basically have lost control of what we feel is our industry," he said.

Listen to the full interview with Rachel Smalley in the audio clip above.

Labour MP Stuart Nash said the closure raises serious questions about the government approving the sale of half of the company to foreign buyers, when it appears this outcome may have been inevitable.

He said at the time Ministers Louise Upston and Paula Bennett were satisfied the deal would create substantial benefits for the country.

"And as a Kiwi, I now expect them to uphold the conditions under which they were granted that consent," Nash said

Nash doesn't believe the benefits promised by the deal have been delivered.

"I would to see the Overseas Investment Office come and say we are going to review this consent now because it seems it has changed materially, and when that happens the Overseas Investment Office has got to show some teeth."

Meanwhile one of the biggest employers in the Mid Canterbury district says the area has a lot of opportunities for other work.

Peter Gluyas employs 50 staff at Gluyas Motor Group in Ashburton.

He said while yesterday's announcement was sad for the town, it's not all doom and gloom.

"A lot jobs are able to be relocated to other freezing works. The economy is reasonably buoyant at the moment and there'd be some farmers looking for people, I imagine, if they want the work."