Bernie Ripoll (Oxley, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline the government’s approach to foreign investment in Australia by state owned enterprises, including by sovereign wealth funds? What is the government doing to protect the national interest in sensitive sectors?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for his question. Australia welcomes foreign investment. Foreign investment helps to develop our industries. It creates jobs and prosperity and provides access to new technology, skills and overseas markets. These are all very good things for the Australian economy. While we encourage foreign investment, we must also ensure that foreign investment is consistent with the national interest. Under the Foreign Acquisitions and Takeovers Act 1975, it is my job as Treasurer to ensure such investment is consistent with the national interest. I have the legislative powers to, in certain circumstances, prohibit proposals that are contrary to our national interest or to impose conditions as I see fit to protect our national interest.

On Sunday, I released guidelines, or principles, to enhance the transparency of Australia’s foreign investment screening regime. The six principles set out the main factors to be considered in determining whether investments by foreign governments and their agencies are consistent with Australia’s national interest. These relate to the investor’s independence from its own government and its commercial conduct. Further, the principles look at the proposed investment’s impact on competition, government revenue or policy, national security considerations and the overall contribution to the economy. These principles are to be applied on a case by case basis to judge whether any investment by a foreign government or its entities is in the national interest. The principles are consistent with the approach that was applied by the previous government through the Foreign Investment Review Board. What is new is that there has been heightened public interest and heightened commercial interest in these proposals. That is why the Rudd government has moved to provide full transparency in relation to these matters. The government will ensure that investment in Australia continues to enhance our national interest and our national prosperity.