John Williams (NSW, National Party) Share this | Link to this | Hansard source

My question is to Senator Abetz, Leader of the Government in the Senate, and Minister representing the Minister for Agriculture. Can the minister outline the changes to the rules for foreign investment in Australian agricultural land which came into effect yesterday?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I thank Senator Williams for the question and acknowledge his longstanding interest in this issue.

The coalition government has been taking a number of steps to increase scrutiny and transparency of foreign investment in Australian agriculture. We understand that investment in Australian agriculture, both domestic and foreign, is vital for growth, innovation and regional development; as a result, we welcome it. We also understand that the Australian community must have confidence that this investment is in our national interest and will provide flow-on benefits for farmers and regional communities, as well as for the national economy and the Australian people.

As of yesterday, the FIRB scrutiny threshold for private sector foreign purchases of agricultural land will be reduced from the current level of $252 million down to $15 million. The $15 million threshold is also cumulative, meaning that a private sector foreign investor will not be able to purchase an $8 million property one day and a $7 million property the next day without approval from the FIRB. At the same time, all foreign investment proposals for agricultural land from government related entities will require FIRB scrutiny and approval, regardless of value.

The government is also in the process of establishing a foreign ownership register of agricultural land within the Australian Taxation Office, regardless of value, from 1 July 2015. The ATO will also commence a stocktake of existing agricultural land ownership by foreign interests. In the recently signed free trade agreements with China, Japan and Korea, there are provisions for Australia to apply lower thresholds to private sector proposals to invest. (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister outline to the Senate the benefits of these changes and whether these changes will impact foreign investment in Australian agriculture?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

The government has long been aware of community concern that no-one had a complete picture of the levels of foreign ownership of our agricultural and agribusiness assets, so the government is reworking the framework to provide clarity to the community and certainty to investors.

Australia remains one of the most attractive destinations for foreign investment. Genuine, above-board foreign investors will not be concerned by the coalition government's very reasonable measures to increase transparency around foreign investment in agriculture. By contrast, the opposition advocates that no foreign purchase proposals for agricultural land need be screened by FIRB unless they exceed $1,000 million. For $1,000 million, you could buy a very large tract of Australian agricultural land indeed in one go. And, in our home state of Tasmania, that would be a fair share of it. (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Last week the shadow minister for agriculture, Mr Fitzgibbon, publicly challenged the Minister for Agriculture to a debate on foreign investment 'any time, any place'. Can the minister clarify if that debate has been held?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I can confirm that the shadow minister did indeed challenge the Minister for Agriculture to a debate on foreign ownership, and he did state that he would be prepared to debate the minister on this important policy matter 'any time, any place'.

Minister Joyce subsequently arranged to conduct the debate at the Woolbrook Hall in Woolbrook in the minister's electorate of New England. I can also confirm of course that the shadow minister did not attend. Had the shadow minister turned up, he would have been reminded that the coalition government remains strongly committed to ensuring we have the right level of oversight and scrutiny in place to review foreign investment.

We believe we have struck the right balance by introducing a $15 million FIRB review threshold for agricultural land and with our proposal to introduce a $55 million FIRB review threshold for agribusiness. What is Labor proposing to do? Labor is proposing to lift the threshold to over $1,000 million. (Time expired)