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Foreign investment makes explosive entry into election campaign Foreign investment makes explosive entry into election campaign
(21 days later)
The issue of foreign investment has made an explosive entry to the election campaign, with the agriculture minister, Joel Fitzgibbon, left scrambling to clarify Labor's foreign investment policy after Kevin Rudd's surprise comments that he was "a bit anxious" about an "open slather" approach to foreign investment.The issue of foreign investment has made an explosive entry to the election campaign, with the agriculture minister, Joel Fitzgibbon, left scrambling to clarify Labor's foreign investment policy after Kevin Rudd's surprise comments that he was "a bit anxious" about an "open slather" approach to foreign investment.
Rudd's comments at the final debate come just two weeks after he suggested the simplification of foreign investment rules to assist Labor's northern Australia policy.Rudd's comments at the final debate come just two weeks after he suggested the simplification of foreign investment rules to assist Labor's northern Australia policy.
Labor is seeking to garner foreign investment support in regional areas, while the Greens and minor populist parties called for tougher rules regarding the sale of agricultural land and resources.Labor is seeking to garner foreign investment support in regional areas, while the Greens and minor populist parties called for tougher rules regarding the sale of agricultural land and resources.
The Coalition has already committed to dropping the Foreign Investment Review Board (FIRB) trigger to scrutinise rural property from $244m to $15m and National party frontbencher Barnaby Joyce has been a trenchant critic of the sale of Cubbie Station to Chinese investors earlier this year.The Coalition has already committed to dropping the Foreign Investment Review Board (FIRB) trigger to scrutinise rural property from $244m to $15m and National party frontbencher Barnaby Joyce has been a trenchant critic of the sale of Cubbie Station to Chinese investors earlier this year.
The Coalition will also set up a register for rural land to keep track of foreign ownership in the agricultural sector.The Coalition will also set up a register for rural land to keep track of foreign ownership in the agricultural sector.
At the same time, the Greens also committed to drop the FIRB threshold from $244m to $5m for rural land and ruled out supporting the sale of agricultural land and water rights to wholly owned subsidiaries of foreign governments.At the same time, the Greens also committed to drop the FIRB threshold from $244m to $5m for rural land and ruled out supporting the sale of agricultural land and water rights to wholly owned subsidiaries of foreign governments.
"The Greens understand the strategic value of our priceless agricultural land and water, and have held a consistent position well ahead of the old parties. I have been putting this issue on the agenda for years," the Greens leader, Christine Milne, said."The Greens understand the strategic value of our priceless agricultural land and water, and have held a consistent position well ahead of the old parties. I have been putting this issue on the agenda for years," the Greens leader, Christine Milne, said.
After the prime minister's comments, Fitzgibbon ruled out a change to the rules governing the FIRB but committed to a National Register of Foreign Ownership of Agricultural Land from 1 July 2014, "commencing with a comprehensive stocktake of existing overseas ownership".After the prime minister's comments, Fitzgibbon ruled out a change to the rules governing the FIRB but committed to a National Register of Foreign Ownership of Agricultural Land from 1 July 2014, "commencing with a comprehensive stocktake of existing overseas ownership".
"We don't want to send foreign investors running and we don't want to see Australians concerned about foreign investment," he told the ABC."We don't want to send foreign investors running and we don't want to see Australians concerned about foreign investment," he told the ABC.
"We've had no discussions about tightening FIRB rules but we've had lots of discussion about building public confidence.""We've had no discussions about tightening FIRB rules but we've had lots of discussion about building public confidence."
State-owned enterprises already trigger a FIRB review on application, no matter what the value and are considered on a case-by-case basis.State-owned enterprises already trigger a FIRB review on application, no matter what the value and are considered on a case-by-case basis.
The foreign investment debate was sparked by a question by a small business woman in western Sydney in the final "people's forum" in Rooty Hill on Wednesday night.The foreign investment debate was sparked by a question by a small business woman in western Sydney in the final "people's forum" in Rooty Hill on Wednesday night.
"My question to both of you is with the sales of land to foreign investments and foreign companies, does either party have any thoughts of stopping those sales and protecting Australia from other countries coming in and buying our land?""My question to both of you is with the sales of land to foreign investments and foreign companies, does either party have any thoughts of stopping those sales and protecting Australia from other countries coming in and buying our land?"
The responses effectively blurred the lines between the two major parties on the issue of foreign investment, despite repeated statements from Labor ministers supporting foreign investment and ridiculing the Coalition's policy.The responses effectively blurred the lines between the two major parties on the issue of foreign investment, despite repeated statements from Labor ministers supporting foreign investment and ridiculing the Coalition's policy.
It led to the reversal of stances, so Tony Abbott, who has the tougher policy on foreign investment, was seen to be welcoming it, while Kevin Rudd's appeared to want tighter rules.It led to the reversal of stances, so Tony Abbott, who has the tougher policy on foreign investment, was seen to be welcoming it, while Kevin Rudd's appeared to want tighter rules.
"I am a bit old fashioned on these questions and I'm not quite as free market as Tony on this stuff," Rudd said."I am a bit old fashioned on these questions and I'm not quite as free market as Tony on this stuff," Rudd said.
"I am a bit nervous, a bit anxious, frankly, about simply an open slather on this. So your question is, what would our policy approach be? I am looking very carefully at how this affects the overall balance of ownership in Australia.""I am a bit nervous, a bit anxious, frankly, about simply an open slather on this. So your question is, what would our policy approach be? I am looking very carefully at how this affects the overall balance of ownership in Australia."
Yet Abbott was more circumspect, despite being under increasing pressure from his National party colleagues to put a stricter test around the definition of the "national interest" and to block the sale of Australian agribusiness GrainCorp to the US multinational Archer Daniel Midland.Yet Abbott was more circumspect, despite being under increasing pressure from his National party colleagues to put a stricter test around the definition of the "national interest" and to block the sale of Australian agribusiness GrainCorp to the US multinational Archer Daniel Midland.
"I think we've got to do what is in Australia's national interest and if selling a bit of land to a foreigner is in our national interest and it might be in some circumstances, particularly if that person is going to invest hundreds of millions of dollars in that land, well I'm in favour of it," Abbott said."I think we've got to do what is in Australia's national interest and if selling a bit of land to a foreigner is in our national interest and it might be in some circumstances, particularly if that person is going to invest hundreds of millions of dollars in that land, well I'm in favour of it," Abbott said.
A month ago, Rudd's treasurer, Chris Bowen, in his book Hearts and Minds: A Blueprint for Modern Labor and Trade was highly critical of what he called the Coalition's populist approach on the issue.A month ago, Rudd's treasurer, Chris Bowen, in his book Hearts and Minds: A Blueprint for Modern Labor and Trade was highly critical of what he called the Coalition's populist approach on the issue.
As Labor's trade minister before Rudd's return, Craig Emerson, said any tightening of foreign investment rules would ruin Asian markets for Australian farmers.As Labor's trade minister before Rudd's return, Craig Emerson, said any tightening of foreign investment rules would ruin Asian markets for Australian farmers.
"The Liberal party has appealed to popular concern about foreign investment in agricultural land by very significantly lowering the threshold for investments from foreigners that would come under scrutiny from the FIRB," Bowen wrote."The Liberal party has appealed to popular concern about foreign investment in agricultural land by very significantly lowering the threshold for investments from foreigners that would come under scrutiny from the FIRB," Bowen wrote.
"Political parties have a choice; they can lead the debate on foreign investment or they can follow it. Tony Abbott's Liberal party has decided to follow it and Labor must lead it.""Political parties have a choice; they can lead the debate on foreign investment or they can follow it. Tony Abbott's Liberal party has decided to follow it and Labor must lead it."
In March 2012, Emerson said the Coalition's greater scrutiny would deny Australian farmers access to lucrative Chinese and South Korean markets.In March 2012, Emerson said the Coalition's greater scrutiny would deny Australian farmers access to lucrative Chinese and South Korean markets.
"What Tony Abbott is doing, for the sake of harvesting a few votes, is basically shutting Australian farmers out of these markets," he said."What Tony Abbott is doing, for the sake of harvesting a few votes, is basically shutting Australian farmers out of these markets," he said.
The debate comes as minor and micro populist and protectionist parties vie for seats in the Senate and the lower house, including the Palmer United party and Katter's Australian party.The debate comes as minor and micro populist and protectionist parties vie for seats in the Senate and the lower house, including the Palmer United party and Katter's Australian party.
A day after the debate, Rudd refused to push the debate along and his finance minister, Penny Wong, said the prime minister was simply reflecting "community concerns".A day after the debate, Rudd refused to push the debate along and his finance minister, Penny Wong, said the prime minister was simply reflecting "community concerns".
Wong rejected the suggestion that Labor, which was so critical of Joyce's stance, was in agreement with the National party on the issue.Wong rejected the suggestion that Labor, which was so critical of Joyce's stance, was in agreement with the National party on the issue.
Bob Katter introduced the Australian ownership bill this year to stop the sell off of agricultural land and his party has a policy for a 10% tariff on imported goods.Bob Katter introduced the Australian ownership bill this year to stop the sell off of agricultural land and his party has a policy for a 10% tariff on imported goods.
The One Nation candidate Pauline Hanson, who is running for the Senate in NSW, has a policy of no "majority ownership of Australian land and resources".The One Nation candidate Pauline Hanson, who is running for the Senate in NSW, has a policy of no "majority ownership of Australian land and resources".
The WA Liberal Dennis Jensen said Labor's change in stance on foreign investment was more to do with Rudd's preference deal with Katter in Queensland than policy.The WA Liberal Dennis Jensen said Labor's change in stance on foreign investment was more to do with Rudd's preference deal with Katter in Queensland than policy.
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