Swan must justify Cubbie decision: Truss
3rd September, 2012
“TREASURER Wayne Swan must explain why it is in the national interest for control of Australia’s most valuable farm, along with its massive water rights, to be ceded to overseas owners,” Leader of The Nationals Warren Truss said today.“Under current rules it is very difficult for foreigners to buy a suburban home in Australia, but it seems the Treasurer has no issue with the biggest irrigation farm in the country being bought by overseas interests.
“While capital flow is welcomed, the Treasurer must explain how a purchase of this scale will not compromise market competition or pricing for Australian cotton, with Cubbie representing around 10% of our national cotton crop. We do not know if Mr Swan even considered this issue.
“It is disturbing that the Gillard government announced this decision late on a Friday afternoon with many questions left unanswered. In effect, the government is asking us to take this decision on trust from a government that simply cannot be trusted.
“As a privately listed company, the structure and ownership of Shandong Ruyi is unknown and many questions remain about this deal. How will the management with the 20% Australian equity partners work in practice?
“Plans to review the conditions of the deal every 12 months appear empty. Exactly what will the government do if the buyers fail to comply with the proposed conditions?
“Cubbie Station is likely to be the most expensive farm in the country. If it is in the national interest for it to be sold, will Labor ever say no to the sale of any Australian farm or agribusiness?
“This decision follows FIRB approval of the sale of virtually all of Australia’s rice industry (Sunrice) to Spanish interests. While rice growers foiled that buy-out, the FIRB had no objection to the sell-off of an entire industry. What does the national interest mean to this government?
“We support genuine foreign investment that strengthens our economy, promotes growth and fosters confidence, but that investment must be in our national interest.
“Only with proper oversight and transparency can the Australian community have any confidence that these buy-outs in agriculture and agribusiness benefit Australia. With Wayne Swan trying to sweep it under the carpet, people will be more suspicious than ever.”
[ENDS]
