Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

I seek leave to amend business of the Senate notice of motion No. 3 by deleting the word ‘foreign’ in subsection (b).

Leave granted.

Senator XENOPHON—I move the motion as amended:

That the following matter be referred to the Economics References Committee for inquiry and report by 30 June 2011:The proposed acquisition of the Australian Stock Exchange (ASX) by Singapore Exchange Limited (SGX), with particular reference to:

(a)

whether such an acquisition would be in the national interest;

(b)

whether the 15 per cent ownership cap on the ASX is appropriate;

(c)

whether the revised proposed composition of the merged board and governance arrangements (as announced on 15 February 2011) are appropriate;

(d)

the Government of Singapore’s interest in the SGX and its role in the proposed merged entity;

(e)

what impact such an acquisition might have on Australia’s ability to attract investment; and

(f)

any other related matters.

Barnaby Joyce (Queensland, National Party, Leader of The Nationals in the Senate) Share this | Link to this | Hansard source

by leave—The National Party has serious concerns about the Australian Stock Exchange and the Singapore Stock Exchange merging—in a takeover. However, we believe that, because the matter is before the Foreign Investment Review Board and those discussions are commercial-in-confidence, it is not the appropriate time for an inquiry. We see a great avenue for the time after FIRB has reported and Mr Swan has given his verdict as to whether he believes this should go forward. We would support an inquiry in the time before it comes back to the Senate to remove the 15 per cent ownership limit. The inquiry would investigate why it would be in Australia’s interests to have the commercial centre of the Stock Exchange moved from Sydney to Singapore, its merchant banks and stockbroking firms taken from our nation and placed in another nation. That is why at this point we will not be supporting this inquiry, but we put on notice that we envisage we will support it in the next four weeks or so—unless Mr Swan does the bleeding obvious and stops this going forward.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

by leave—I appreciate the comments and the sentiments expressed by Senator Joyce in relation to this matter. However, I believe it is appropriate to proceed with such an inquiry at this stage for a number of reasons including, notwithstanding that the Foreign Investment Review Board is looking at this matter now, that the committee could do some very useful work looking at the 15 per cent ownership cap of the ASX and whether it is appropriate, what role the government in Singapore plays in relation to the Singapore Exchange, what role it will play in any proposed merged entity and what impact such an acquisition could have on Australia’s ability to attract investment. I believe useful work could be done by the committee notwithstanding that the matter is still being reviewed by the Foreign Investment Review Board. It is in the public interest to look at these matters sooner rather than later.

Question put.