FIRB allows companies owned by foreign governments to buy up farmland

Posted by Jim on May 15, 2010

The Greens candidate for Wide Bay, Dr Jim McDonald, has raised concerns about Foreign Investment Review Board approvals for the purchase of agricultural land by corporations with substantial foreign government ownership.

“I want to know whether land in the Wide Bay and Burnett region is been sold off to overseas companies owned by foreign governments.

“The Greens’ policy on agriculture calls for the protection of prime agricultural land from urban developments and other encroachments. I would add to that the specific protection of the sovereignty of agricultural lands.

“These principles are under attack by FIRB approvals of agricultural land purchases by corporations substantially owned by foreign governments.

“The question of foreign investment in Australian resources and industry is one thing. It is quite a different issue when foreign governments are involved.

“It’s about the national interest and sovereignty as well as the preservation of agricultural land.

“One case is the contentious purchase of productive farms on the Liverpool Plains in NSW for open-cut coal mining. Shenhua Watermark Coal Pty Ltd, which is buying up prime farmland for open cut mining, is a subsidiary of China Shinhua Energy Company.  That company is the largest coalmining company in the world and it is 68% owned by the Chinese Government.

“The sell-off of prime agricultural land raises questions in the context of climate change about our country’s food security,” he said. “We can’t keep selling off our most productive land for mining, even at premium prices, when the future will bring greater pressures on food productivity not only from global warming but by the increase in population.

“Yet, the FIRB has allowed Hassad Food, which is part of the Qatar Government’s Investment Authority, to buy up prime grazing land. It is presently negotiating with Clyde Agriculture, in turn owned by the Swire group, the purchase of 165,000 hectares of a group of NSW grazing properties.

“This case brings out the difference between normal foreign investment and the problematic involvement of government-owned enterprises. Hassad Food is buying properties on a global scale as part of Qatar’s strategy of achieving food security against future pressures on food production.

“Allowing foreign government interests to buy up prime agricultural land can undermine Australia’s own food security in the long run, and complicate international relations with those foreign governments whom the Government has allowed to obtain a controlling interest in land ownership.

“It is contrary to the national interest in terms of national security both regarding possible interference by foreign governments in food politics and in terms of food security.”

Dr McDonald said it was incredibly naïve and careless of Coalition and Labor Governments at both Federal and State levels to allow this to happen.

Media Release 13 May 2010

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