LIBERAL Senator for NSW Bill Heffernan has slammed a report indicating fears over foreign ownership of agricultural land are unfounded, saying the report is flawed.
Mr Heffernan, who is chairing an ongoing Senate inquiry into the issue, said the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) report merely provided a “cover” for the federal government to continue giving the green light to foreign buying sprees.
“In the next hearings of the inquiry we will uncover the sham of foreign corporations and sovereign entities posing with an Australian identity, and the issue of confidentiality clauses in sale contracts,” Senator Heffernan told The Land.
“There is no such thing in reality as a ‘national interest test’ – it is a series of phone calls designed to protect the government and minister of the day.”
He said data was based on information from individuals with ABN numbers and $5000 primary production earnings rather than on actual title-holdings.
Issues surrounding sovereign purchases, the issue of agricultural land buy-ups and investment in agricultural production and processing needed to be clarified.
Mr Heffernan said Australia’s viticulture industry suffered when multinationals invested.
He questioned whether data used in the report included significant purchases of land by foreign mining companies such as Shenhua, which has spent more than $400 million around Gunnedah.
The National Farmers’ Federation (NFF) said the report was a step in the right direction but did not address all its concerns.
“We can now piece together the puzzle on foreign investment, understand the current levels of interest and funding into Australia, and seek sensible policy decisions to manage the impact of this on the long-term future of our sector,” NFF president Jock Laurie said.
“It has been said that this is a debate without data. Now that we have the data ... now is time for the debate.
He said there were concerns over the government’s move to retain – and not lower – the $231m trigger for Foreign Investment Review Board (FIRB) scrutiny.
“NFF members are not entirely convinced that the FIRB threshold and processes are stringent enough – and we need solid guarantees that State-owned enterprises masquer-
ading as commercial entities, as well as creeping acquisitions, do not slip through a loophole in the reporting requirements,” Mr Laurie said.
Mr Laurie noted the ABARES report indicated foreign investment in agriculture had escalated in recent times.
Releasing the report yesterday, assistant treasurer Mark Arbib said transparency would be improved.
The report said 99 per cent of agricultural businesses, 89pc of agricultural land and 91pc of water entitlements were Australian-owned.
Senator Arbib said the report showed current regulations provided a “considerable level of scrutiny of foreign investment proposals and operations of foreign-owned agribusinesses in Australia”.
The report demonstrated foreign investment in the agricultural sector enhanced Australia’s food security, he said.
“The ABARES report says there is real concern lower levels of foreign investment would lead to lower food production, and this could result in higher food prices,” Senator Arbib said.
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