Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

My question is for the Minister for Trade, Tourism and Investment, the Hon. Simon Birmingham. Minister, your predecessor, the Hon. Steve Ciobo, in his investment statement released in 2018, headed 'Five good years for Australia' and dated 20 August 2018, stated:

The quantum of new foreign direct investment in 2017 was $105 billion, and over the last five years this figure totalled $645.4 billion, reflecting the confidence that investors continue to have in Australia.

My question is: would the minister advise the quantum of that new foreign investment, which was applied to infrastructure developments in Australia, and detail that infrastructure and the percentage held by Australian entities within those infrastructure investments?

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

I thank Senator Hanson for her question. Of course, Australia, being an economy that is enjoying its 27th consecutive year of economic growth, in part depends upon investment from around the world to sustain that growth, to ensure that businesses operating here in Australia continue employing more Australians, to generate more opportunities in Australia and to generate, ultimately, even export revenue from Australia.

In terms of the specific question that Senator Hanson has asked, what I can hopefully help the senator with is that my advice is that the stock of foreign direct investment in the electricity, gas and water sector, for example, in 2017 was $22 billion. However, to put that in some perspective for the Senate, that is a sector with a total capital stock as at 30 June 2017 of some $355 billion. So, in terms of foreign direct investment within that category of assets, that accounts for just around six per cent of those assets. Overwhelmingly, those types of asset classes are very clearly held firmly in Australian hands.

But the question referenced the total scale of foreign direct investment in Australia, and it's important to highlight the fact that that investment creates real opportunities. Some of the examples that have been highlighted in investment statements over recent years include the German tech giant Bosch, whose work to develop smart sensors for use in agriculture is creating jobs and opportunities in their Melbourne based engineering facility, and the Italian confectionery giant Ferraro, who is one of Lithgow's largest employers. Local staff are producing a range of products and extending that to planting around one million hazelnut trees to underwrite year-round production of products such as Nutella. And there's Japan's NEC, whose longstanding activity now supports more than 1,800 jobs in Australia. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Hanson, a supplementary question.

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

Minister, the statement also states that sales by state governments to foreign investment are in critical infrastructure assets such as electricity and ports. Can the minister advise how this is in the best interests of Australians—maintaining our security and lower energy costs—and what the federal government's responsibility is in approving such investment under the Foreign Investment Review Board?

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

As a big country with a relatively small population, we've long used foreign investment to help build our nation, and that investment brings not just funds towards building our nation but also benefits of, often, new technology, different knowledge and different or better ways of doing things. An example of that is the entry in some parts of Australia of Spanish contractors around tunnel building. That has provided opportunities for lower costs, in terms of state governments pursuing major road infrastructure projects. The result of that can be that projects are delivered—they're delivered faster, and they're delivered more cost effectively for Australians. Taxpayers and households find they get the benefits of those major upgrades at lower costs.

At the same time, the Australian government is committed to ensuring the national security of our critical infrastructure. That's why our government established the Critical Infrastructure Centre—to identify and manage the national security risks associated with any foreign involvement in the telecommunication, electricity, water, ports or gas sectors. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Hanson, a final supplementary question.

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

Minister, are you aware that currently Australian superannuation funds have invested approximately $539 billion in offshore investments and of that figure $23.6 billion was invested in offshore infrastructure? Would it not be better for those funds to hold critical Australian infrastructure for the benefit and security of all Australians? Australians feel it is fine to have foreign investment into this country, but wouldn't it be nice to see Australian superannuation funds reinvested in our own country rather than overseas?

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

Once again, it's important to put some context around those figures. Australian superannuation funds, according to APRA, held over $2.7 trillion in assets at 30 June 2018, so the scale of overseas investment is small relative to the total scale of assets held by those Australian funds. I would highlight that they do invest in Australian infrastructure. For instance, Transurban took a major piece of the WestConnex consortium last week, alongside those from Canada and elsewhere, and in recent years AustralianSuper and IFM bought control of Ausgrid.

But when speaking about superannuation investments let's also, importantly, understand that the prime expectation and responsibility of those vested with our superannuation savings is to ensure that they get the best return for those whose Australian savings they are and that the individuals directing those funds must ensure that, as custodians of the savings and earnings of Australians who have worked hard for them, they get the best possible returns on those savings. (Time expired)