Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to Senator Abetz, the Minister representing the Minister for Agriculture. I refer to his answer in question time yesterday in relation to the revised thresholds for foreign investment in agricultural land. He said:

… 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.

Can the minister confirm that, in actuality, the threshold is variously: $1 billion for investors from United States, New Zealand and Chile; $50 million for investors from Singapore and Thailand; and $15 million for investors from China, Korea and Japan?

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

The answer that I gave yesterday stands. It is correct. I am happy to have a look at the answer to see if further information is required, but the simple fact is we as a government have said that investment in agricultural land and agribusinesses is of concern to us and to the community. At the moment, as it stands, under the shadow minister for trade, Senator Wong, the Australian Labor Party has a threshold of $1,000 million. In general terms, chances are that that that amount could purchase one-third—I think Senator Colbeck could assist me on this—of Tasmania's agricultural land in one single purchase.

So can I say to the honourable senator that there is no doubt that our policy has moved in the right direction. It is in accordance with the wish of the Australian people that there be some greater circumspection and investigation in relation to matters of foreign investment, especially in the agricultural land acquisition area and that is what my colleague the Minister for Agriculture, Minister Joyce, and the cabinet have agreed upon and have announced.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. In light of his comments, and in light of the Minister for Agriculture's comments—'A $1 billion dollar threshold for foreign investment screening is an absurdity'—I ask the minister, can he explain the policy rationale for the $1 billion threshold that remains applicable to the purchase of agricultural land by investors from the United States, Chile and New Zealand? And will he rule out renegotiating any of those agreements?

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

In relation to agreements, I would never rule out renegotiation of agreements generally.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Andrew Robb is going to be very unhappy. You just agreed to renegotiating the US free trade agreement.

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

Mr President, I have been going for five seconds and the Leader of the Opposition in the Senate cannot contain herself—rude, obnoxious interjections, non-stop. It is about time that she showed the sort of leadership that the Labor Party in this place needs—and, more importantly, that the Australian people actually expect at question time.

This is a government that is concerned to ensure that foreign investment takes place in this country in a manner that is attuned to public opinion and public views. Let's be very clear: we on this side have always welcomed foreign investment; foreign investment is vitally important for the agricultural sector; we welcome it, but it needs to be checked.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Does the minister agree with the Queensland Farmers Federation, which says the government's foreign investment decision 'throws barriers in the way of foreign investment and sends the wrong message to overseas investors who see value in investing in Australian agriculture'?

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

It will not surprise the honourable senator that chances are I do not agree with that assertion.

As I understand it, around the world, agribusinesses and agricultural land are seen as absolutely prized assets, and that is even more the case in our country, Australia, because of the regimes we have in place, the rule of law that applies and the general stability that we enjoy in our country. As a result I have no doubt that Australia will still be seen as a very good place to invest, both with domestic money and with international money. All we are seeking to do is ensure that there is an appropriate regime around foreign investment to ensure that we know what is going on. That is why, through the Australian Taxation Office, we will establish a register of agricultural lands owned by foreign enterprises.