Nicolle Flint (Boothby, Liberal Party) Share this | Link to this | Hansard source

Some of the most important and fundamental reforms to the Australian economy over the past four decades were aimed at getting the Australian government out of the private sector. Liberal and Labor administrations reformed industry-specific tariffs and subsidies and privatised a range of government-owned enterprises. They ended government involvement and interference in businesses and markets. They did this because, when governments participate in markets, they crowd out private sector businesses. Individuals and companies, not government, are best placed to deliver goods and products and earn income for the nation. There are a few exceptions to this rule, like instances of market failure, but such exceptions are rare. Without reforms like ending tariffs and subsidies and privatising government-owned enterprises, it's unlikely that our nation would be enjoying its 26th year of unbroken economic growth.

So why, then, have we allowed governments to again interfere in the private sector? Why have we let in not the Australian government but instead foreign governments to compete against businesses in agriculture, telecommunications, commercial property and infrastructure? Why have we so quickly forgotten the hard-won and traumatic reduction of tariffs and subsidies and the pain of privatisation over recent decades that rightly removed government from markets so that businesses would function efficiently and successfully? Perhaps this is because, as The Australian's Paul Kelly observed in the inaugural Alf Rattigan lecture:

… reform is a battle of ideas. One big mistake reformers made … is to think a debate won is won forever. That's wrong. Debates are not won forever. They must be fought and re-fought generation by generation.

By allowing foreign government sovereign wealth funds and foreign government investment in private markets, we have allowed government back into key sectors in a new and damaging way. Take for example the agricultural sector, where foreign government ownership of farming land has grown significantly in recent years. Companies like Hassad Australia Pty Ltd are directly competing with local farmers and private investors. Hassad Australia was established in 2009 by the Hassad Food Company, which is a wholly owned subsidiary of the Qatar Investment Authority, the Qatar government's sovereign wealth fund. Hassad competes with local farmers not just for land but also in the production and sale of sheep and grain, for example. After Australian governments inflicted so much pain and trauma on the agricultural sector by dismantling protection, from dairy to sugar to wool and wheat, we owe our farmers the courtesy of not allowing any government back into their markets.

Similarly, allowing foreign governments in to invest in our ports, telecommunications or electricity infrastructure has the effect of crowding out private sector businesses in the same way. Australian workers did not endure uncertainty as the Australian government sold businesses like Qantas, Australian Airlines, Telstra, electricity companies and the Commonwealth Bank to let foreign governments in to compete against the very businesses we privatised.

We need to have a very close look at the influence and involvement of foreign government ownership in our nation. The federal government is looking closely at the issue of foreign investment as a whole, and I congratulate the Treasurer for the work he has done and continues to do in this area. I know the Treasurer has our national interest at heart, which is why our government has taken steps to ensure that any foreign investment is in the national interest and is transparent.

This is why we've established the agricultural land register. This is why we have significantly reduced the screening threshold for foreign purchases of agricultural land from $252 million to $15 million. This is why just last week the Treasurer announced new rules to mandate that vendors must advertise and market agricultural land to Australians first. And this is why the Treasurer and the Minister for Home Affairs also announced that we will create a critical assets register to monitor who owns and controls critical infrastructure like ports, gas, electricity and water. They announced that all future applications for the sale of electricity transmission and distribution assets, and some generation assets, will attract ownership restrictions or conditions for foreign buyers. As the Treasurer and the minister noted, these assets and this infrastructure are key national security concerns, as is the diversity of ownership of these assets.

Of course, carefully managed foreign investment by private individuals and private companies is a necessary part of our economy, but in my opinion the same does not apply to foreign governments and foreign government sovereign wealth funds. As a relatively small nation we require injections of capital, but not at any cost.

Debate interrupted.

House adjourned at 20:00