THE federal Coalition has launched an investigation into foreign ownership of Australian farms, clearing the way for a policy change that could erect barriers to investment.
Opposition Leader Tony Abbott announced the move late yesterday after calls from Liberals, Nationals and the Greens for rules to curb farm purchases by investors from China, Qatar and elsewhere, The Australian Financial Review reports.
A committee of senior Coalition MPs is expected to consider laws such as those in New Zealand, which require government approval for land purchases greater than 5 hectares. The current rules require foreign investors to obtain federal government approval for purchases costing more than $231 million.
Nationals MPs have spoken out against the purchase of farming land. Liberal MPs such as Josh Frydenberg have criticised the sale of Victorian land to an arm of the Qatar government.
One source of public concern is the purchase of land around Gunnedah, NSW, by China's largest coal producer, Shenhua. The NSW government awarded a tender to the company in 2008 to explore the area.
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