February 11, 2015
The Queensland Farmers’ Federation has called for greater detail about the Federal Government’s plans anout the treatment of foreign investment in agriculture.
Prime Minister Tony Abbott announced today that the government would lower the threshold for Foreign Investment Review Board scrutiny of agricultural land to $15 million (from $252 million), and that it would also soon implement a register of foreign-owned land.
QFF CEO Dan Galligan said the farming industry welcomed the implementation of the register, which may provide credible land ownership data so the issue could be better understood.
“But implementing a lower threshold for FIRB scrutiny ahead of the register being developed pre-empts what it may reveal,” he said.
“Lowering the threshold to this specific level may not be the appropriate instrument for dealing with this issue.
“It is unclear what the lower threshold seeks to achieve in the context of the policy change as we don’t know on what basis a sale would be accepted or rejected.
“In the absence of that, there is a concern that this decision throws barriers in the way of foreign investment and sends the wrong message to overseas investors who see value in investing in Australian agriculture.
“Without explanation of the long-term objective, it risks inconsistency with the government’s objectives around free trade agreements and promoting our sector around the world.
“The long-term objective should include promotion of agriculture as a profitable and productive place to do business, both for domestic and overseas investors.”
Mr Galligan said the QFF also wanted the Federal Government to clarify whether water assets would be included in its register.
“It is imperative that we better understand what is happening with foreign investment in agriculture, so the register is a welcome step but very little progress seems to have been made on its development,” he said.
“Foreign investment is a crucial part of the investment landscape and vital to growth and productivity. Our sector has relied on it.
“We must resist basic calls that tread too close to fear without evidence, as this sends a negative message that the process for investment in Australian agriculture is too complicated and risky.”
If we really want to preserve sovereignty over our land to ensure future food security, why not put in a rule (as some of our trading partners already have) that foreigners can’t buy Australian land, only lease it? This sort of rule hasn’t deterred foreign investors in other countries.