Foreign investors should dual list
16th April, 2010
Nationals Leader Warren Truss has put forward the proposition that foreign investors wanting to take over Australian companies should dual list on the stock exchange.Mr Truss’ comments occur as the Business Council of Australia puts forward ideas to change the foreign investment framework, and follow concerns raised recently by renowned businessman Don Argus that Australia’s foreign investment rules will not be adequate to meet the challenges of the future.
Mr Truss said that Australia always had and always would welcome foreign investment.
“In a truly free market, foreign investment controls may not be necessary, but the increasing influence of sovereign wealth funds has changed the landscape,” Mr Truss said.
“Foreign investment may now be made for strategic rather than market reasons, with consequent risk to Australia’s ability to control its own destiny.”
One way to ensure that Australian resources or agricultural land are not locked up for strategic or political reasons would be to introduce a requirement that any foreign company wishing to take over or establish a controlling interest in a major Australian company would be required to list or dual list on the Australian Stock Exchange.
“This would have the two-fold advantage of strengthening the ASX and ensuring Australians could continue to invest in Australian projects.”
“It is time Australia has a considered debate on the best ways to encourage - but also control - responsible foreign investment,” Mr Truss said.
