Fiona Nash (NSW, National Party, Shadow Parliamentary Secretary for Regional Education) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Wong. I refer the minister to a recent study of foreign investment in prime agricultural land jointly conducted by the Politecnico di Milano in Italy and the University of Virginia in the US. That study found that almost 10 per cent of Australia's prime agricultural land is now foreign owned, putting the rate of foreign ownership in Australia at the fifth highest in the world, behind only the Democratic Republic of the Congo, Indonesia, the Philippines, Sudan and South Sudan. Given these findings, will the government now admit its mistake of increasing the threshold for the Foreign Investment Review Board referral in 2009 from $100 million to more than $200 million? Isn't it time that the threshold was reduced so that at least some private foreign investment in Australian farms is reviewed by the government before it is approved?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I have to say it is interesting that that question has been asked given that the Leader of the Opposition visited China and indicated that the opposition welcomed foreign investments. One wonders whether economic policy is being dictated by the National Party or by the Liberal Party. Maybe Senator Sinodinos or Senator Fifield might want to inform us.

Government Senators:

Government senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Nash is entitled to hear the answer, those on my right. Senator Wong, continue.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Thank you, Mr President. I am happy to make some comments about Australia's foreign investment.

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

You don't know the answer to this question, do you?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I think it says—

John Hogg (President) Share this | Link to this | Hansard source

Order! Interjections are disorderly and should be completely ignored.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

It says something about you, Senator. I am happy to make some comments about the framework associated with our foreign investment regime. As the senator should know, all foreign governments and their agencies and state-owned enterprises must notify the FIRB and receive an approval before making a direct investment in Australia, regardless of the value of investment. We also, as you would know, have announced that we will implement a national foreign ownership register for agricultural land following consultations with stakeholders, and the government has made that announcement. I understand that the government has released a discussion paper—

Fiona Nash (NSW, National Party, Shadow Parliamentary Secretary for Regional Education) Share this | Link to this | Hansard source

Mr President, on a point of order on relevance, I specifically asked the minister about the potential lowering of the threshold of FIRB. She is yet to address the question, and I ask you to draw her attention to it.

John Hogg (President) Share this | Link to this | Hansard source

The minister is addressing the question. The minister has 25 seconds remaining.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I was informing the senator about the design of the register associated with foreign ownership of agricultural land. I am advised that the government has released a discussion paper on these matters, and the consultation period ended on 1 February—this month. This continues the government's reform process in this. In relation to the study that the senator has referenced— (Time expired)

Fiona Nash (NSW, National Party, Shadow Parliamentary Secretary for Regional Education) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I refer to the tabling of the FIRB's 2011-12 annual report last Friday. That report showed that levels of foreign investment in agriculture since 2007 have averaged $2.5 billion per year compared to an average of just $274 million per year in the 10 years before 2007. Why has the government presided over such a large increase in foreign investment in Australian agriculture without taking any policy action to tighten the monitoring of foreign investment that occurs in our farming sector?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Mr President, I notice some Liberal Senators shaking their heads and I am unsurprised, because investment means jobs. If the National Party's new platform is that we do not want more jobs in regional Australia, why not fess up to it? Why not come down and have a chat to Alexander Downer, who wrote a column recently in the Adelaide Advertiser extolling the virtues of foreign investment? Clearly, what we have here is either the policy of the coalition when it comes to foreign investment is being dictated by Senator Barnaby Joyce and his colleagues or Senator Nash is out of line here and Mr Abbott lied to the Chinese government when he went there and said he supported—

John Hogg (President) Share this | Link to this | Hansard source

Order! Senator Wong, you need to withdraw that comment.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I withdraw. Mr President, it is quite an extraordinary proposition that is being put: that is, we do not want investment that creates jobs in Australia. We have a sound and strong framework to process foreign investment— (Time expired)

Fiona Nash (NSW, National Party, Shadow Parliamentary Secretary for Regional Education) Share this | Link to this | Hansard source

Mr President, I have a further supplementary question. I refer the minister—

John Hogg (President) Share this | Link to this | Hansard source

Order! Order! Senator Nash is entitled to be heard in silence. Senator Nash is entitled to be heard in silence on my right and on my left.

Fiona Nash (NSW, National Party, Shadow Parliamentary Secretary for Regional Education) Share this | Link to this | Hansard source

I refer the minister to reports in the Australian on 21 December 2012 that the Trade Minister, Dr Craig Emerson:

… has promised China it will iron out problems with excessive "green tape" and environmental approvals to encourage and fast-track greater Chinese investment in Australian agriculture.

Why is the Australian government removing green tape for Chinese investment when it has walked away from an agreement at COAG to remove green tape for Australian farmers?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I will answer those aspects of the question that fall within my portfolio or representing responsibilities. I suspect comments by the Minister for Trade do not fall within that category—

Senator Brandis interjecting—

But that is why—Senator Brandis, if you could stop interjecting—I am going to respond to those aspects which do fall within the portfolio. The government has a view which is twofold. First, that it is in Australia's national interest to continue to welcome foreign investment that creates jobs in this country. These are jobs for Australians; these are jobs which would not be here were it not for foreign investors. The second proposition is that you want a sound framework to assess that investment, which is why from the first dollar of every investment by a foreign government or a foreign state owned enterprise the national interest applies and there is an assessment process. In addition, as the Senate would know, there are monetary thresholds over which assessments in relation to— (Time expired)