Footnotes

Executive Summary

[1]        The regulations and policy are Foreign Acquisitions and Takeovers Regulation 1989 and Australia's Foreign Investment Policy (AFIP), respectively.

Chapter 1 - Introduction

[1]        Senate Rural and Regional Affairs and Transport References Committee, Examination of the Foreign Investment Review Board National Interest Test, Interim report: Tax arrangement for foreign investment in agriculture and the limitations of the Foreign Acquisitions and Takeovers Act 1975, November 2012, pp 5–20.

[2]        Department of Immigration and Citizenship, 'Significant Investor Visa, frequently asked questions', www.immi.gov.au/skilled/business/_pdf/significant-investor-faq.pdf, p. 2.

[3]        For information about the transfer pricing review see: Bernard Pulle, Tax Laws Amendment (Cross-Border Transfer Pricing) Bill (No. 1) 2012, Bills Digest No. 160, 2011–12, Parliamentary Library, 19 June 2012. For the international response to tax arrangements see OECD, Addressing Base Erosion and Profit Shifting, OECD Publishing, 2013, http://dx.doi.org/10.1787/9789264192744-en and The Hon Wayne Swan MP, Deputy Prime Minister and Treasurer, media release no. 050, "G20, IMF and World Bank Meetings", 18 April 2013,  http://ministers.treasury.gov.au/wmsDisplayDocs.aspx?doc=pressreleases/2013/050.htm&pageID=003&min=wms&Year=&DocType=0 (accessed 13 June 2013).  

[4]        Senate Economics References Committee, Foreign Investment by State-owned Entities, September 2009, p. ix.

[5]        Australian Government, Australian Government Response to the Senate Economics References Committee Report: “Foreign Investment by State-Owned Entities”, June 2011, p. 3.

[6]        Senate Economics References Committee, Foreign Investment by State-owned Entities, September 2009, p. x. The second recommendation was that FIRB present a more timely annual report to parliament, p. ix.

[7]        Australian Government, Australian Government Response to the Senate Economics References Committee Report: “Foreign Investment by State-Owned Entities”, June 2011, p. 3.

[8]        Senate Economics Legislation Committee, Foreign Acquisitions Amendment (Agricultural Land) Bill 2010, June 2011, pp 13–16.

Chapter 2 - Background—the global food task, comparative regulatory contexts and Australia's regulatory framework

[1]        Mr Paul Evans, Chief Executive, Winemakers' Federation of Australia, Committee Hansard, 9 April 2013, p. 4. 

[2]        Mr Paul Evans, Chief Executive, Winemakers' Federation of Australia, Committee Hansard, 9 April 2013, p. 2. 

[3]        See chapter six in reference to patient capital and the Ord irrigation area development.

[4]        Mr Paul Evans, Chief Executive, Winemakers' Federation of Australia, Committee Hansard, 9 April 2013, pp 1, 2 and 4.

[5]        AACo, Submission 8, p. 1.

[6]        Mr Christopher Langman, First Assistant Secretary, Trade and Economic Policy Division, Department of Foreign Affairs and Trade, Committee Hansard, 9 May 2012, p. 17.

[7]        DAFF, Submission 1 (attachment), p. vi.

[8]        Mr Julian Cribb, Committee Hansard, 9 May 2012, p. 1.

[9]        Mr Tom McKeon, Chief Executive Officer, Hassad Australia Pty Ltd, Committee Hansard, 16 November 2011, p. 38. Hassad Australia also stated here that its operations have since moved to a commercial basis.

[10]      DAFF, National Food Plan green paper 2012, July 2012, p. iii.

[11]      DAFF, National Food Plan green paper 2012, July 2012, p. 62.

[12]      AACo, Submission 8 (supplementary), p. 1.

[13]      AACo, Submission 8 (supplementary), pp 1–2.

[14]      AACo, Submission 8 (supplementary), p. 2.

[15]      AACo, Submission 8 (supplementary), p. 2

[16]      OECD, Inventory of investment measures taken between 1 November 2011 and 29 February 2012, April 2012, p. 7, www.oecd.org/daf/inv/investment-policy/FOIinventorymeasures_april_2012.pdf.

[17]      OECD, National Treatment for Foreign-Controlled Enterprises including adhering country exceptions to national treatment 2012, updated July 2012, www.oecd.org/daf/internationalinvestment/investmentpolicy/nationaltreatmentinstrument%20english.pdf, p. 21.

[18]      Camila da Motta Pacheco Alves de Araujo et al. "New Rules – Restrictions on the acquisition of rural real properties by foreigners in Brazil" www.martindale.com/real-estate-law/article_Araujo-e-Policastro-Advogados_1147364.htm.

[19]      United States Government Accountability Office, "Foreign Investment: Laws and Policies Regulating Foreign Investment in 10 Countries", February 2008, www.gao.gov/new.items/d08320.pdf, p. 44.

[20]      The above is text is taken directly from Catalogue for the Guidance of Foreign Investment Industries (Amended in 2011) as it appears on the Invest in China website www.fdi.com.cn/app?page=LawDetailEn&service=page&id=5c42bce337da5f930137db33576e004e.

[21]      Catalogue for the Guidance of Foreign Investment Industries (Amended in 2011).

[22]      United States Government Accountability Office, "Foreign Investment: Laws and Policies Regulating Foreign Investment in 10 Countries", February 2008, www.gao.gov/new.items/d08320.pdf, pp 46–47.

[23]      OECD, Inventory of investment measures taken between 16 February 2011 and 31 October 2011, January 2012, www.oecd.org/investment/investmentpolicy/49449570.pdf, p. 10.

[24]      Government of India, Department of Industrial Policy and Promotion and Ministry of Commerce and Industry, Consolidated FDI Policy, http://dipp.nic.in/English/Policies/FDI_Circular_01_2013.pdf (accessed 13 June 2013), p. 13.

[25]      Government of India, Department of Industrial Policy and Promotion and Ministry of Commerce and Industry, Consolidated FDI Policy, http://dipp.nic.in/English/Policies/FDI_Circular_01_2013.pdf (accessed 13 June 2013), p. 29

[26]      Government of India, Department of Industrial Policy and Promotion and Ministry of Commerce and Industry, Consolidated FDI Policy, http://dipp.nic.in/English/Policies/FDI_Circular_01_2013.pdf (accessed 13 June 2013), p. 40. Note, "controlled conditions" relates to the artificial control of the climate or environment under which the relevant agriculture takes place. For further information see p. 41 of the FDI Policy.

[27]      Government of India, Department of Industrial Policy and Promotion and Ministry of Commerce and Industry, Consolidated FDI Policy, http://dipp.nic.in/English/Policies/FDI_Circular_01_2013.pdf (accessed 13 June 2013), p. 40.

[28]      Senate Economics Committee, Committee Hansard, 12 April 2011, p. 33.

[29]      www.linz.govt.nz/overseas-investment/applications/technical-resources/sensitive-land. 

[30]      Senate Economics Committee, Committee Hansard, 12 April 2011, p. 33.

[31]      Senate Economics Committee, Committee Hansard, 12 April 2011, p. 33. These are set out in Section 17 of the Overseas Investment Act 2005 and Regulation 28 of the Overseas Investment Regulations 2005.

[32]      Senate Economics Committee, Committee Hansard, 12 April 2011, p. 35. For the summaries of decisions see: www.linz.govt.nz/overseas-investment/decisions.

[33]      Senate Economics Committee, Committee Hansard, 12 April 2011, p. 37.

[34]      OECD, Inventory of investment measures taken between 1 November 2011 and 29 February 2012, April 2012 p 18, www.oecd.org/dataoecd/36/61/50053970.pdf, see also High Court of New Zealand, Decision CIV-2012-485-101 [2012] NZHC 147.

[35]      Otago Daily Times, 13 March 2012.

[36]      This section draws heavily on www.apfo.usda.gov/FSA/webapp?area=home&subject=ecpa&topic=afa.

[37]      Derek Byerlee and Klaus Deininger "Foreign Investment in Farm land: Worries About a Land Grab in Australia are Unfounded", Farm Policy Institute, vol. 8, no. 2, 2011, pp 7–8.

[38]      A 1995 OECD review of Foreign Direct Investment in the US does not suggest any restrictions per se on investment in agricultural land. See: www.oecd.org/dataoecd/4/54/34383483.pdf

[39]      The Farm Service Agency, Foreign Investment Disclosure Handbook includes definitions of who is a foreign person, what is agricultural land and what is a reportable interest. Available at www.fsa.usda.gov/Internet/FSA_File/1-afida_r02_a02.pdf.

[40]      See USDA, Foreign Holdings of U.S. Agricultural Land: Through December 31, 2010 www.apfo.usda.gov/Internet/FSA_File/afida_thru_12312010.pdf.

[41]      OECD, National Treatment for Foreign-Controlled Enterprises including adhering country exceptions to national treatment 2012, updated July 2012, p. 95, www.oecd.org/daf/internationalinvestment/investmentpolicy/nationaltreatmentinstrument%20english.pdf.

[42]      FIRB, Australia’s Foreign Investment Policy, 2013, pp 3, 16 and 18. The Hon David Bradbury MP, Assistant Treasurer and Minister Assisting for Deregulation and the Hon Craig Emerson MP, Minister for Trade and Competitiveness and Minister Assisting the Prime Minister on Asian Century Policy, Joint Media Release "Milestone in Investment Ties with New Zealand", No. 22, 1 March 2013, http://assistant.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2013/022.htm&pageID=003&min=djba&Year=&DocType; Department of Foreign Affairs and Trade, " Australia-United States Free Trade Agreement: Fact Sheet – Investment: www.dfat.gov.au/fta/ausfta/outcomes/09_investment.html (accessed 13 June 2013).  

[43]      Department of Foreign Affairs and Trade, "Trans-Pacific Partnership Agreement negotiations", www.dfat.gov.au/fta/tpp/ (accessed 13 June 2013). 

[44]      ASEAN members states are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

[45]      Department of Foreign Affairs and Trade, "Regional Comprehensive Economic Partnership negotiations", www.dfat.gov.au/fta/rcep/ (accessed 13 June 2013).

[46]      Guiding Principles and Objectives for Negotiating the RCEP, available at: Department of Foreign Affairs and Trade, "Regional Comprehensive Economic Partnership negotiations", www.dfat.gov.au/fta/rcep/ (accessed 13 June 2013).

[47]      Foreign Acquisitions and Takeovers Act 1975, Part II, sections 22 and 25.

[48]      FIRB, Australia’s Foreign Investment Policy, 2013, p. 13.

[49]      FIRB, Australia’s Foreign Investment Policy, “Annex 2, Policy Statement: Foreign Investment in Agriculture”, 2013, p. 19.

[50]      FIRB, Australia's Foreign Investment Policy, 2013, pp 2 and 13.

[51]      FIRB, 'Recent Changes to Policy', www.firb.gov.au/content/policy.asp?NavID=1n  (accessed 23 April 2013). Note: when this inquiry began in 2011, the relevant review threshold was $231 million. In 2012, this was increased to $244 million and in 2013 to $248 million which is the current figure. The $248 million figure will be used for all corresponding threshold figures throughout this report.

[52]      FIRB, Australia's Foreign Investment Policy, 2013, p. 14.

[53]      FIRB, Australia's Foreign Investment Policy, 2013, p. 14.

[54]      FIRB, Australia's Foreign Investment Policy, 2013, p. 15. Note: footnote 20 on this page states: 'Entities include companies, trusts and limited partnerships.'

[55]      FIRB, Australia’s Foreign Investment Policy, 2013, pp 7–8.

[56]      FIRB, Australia’s Foreign Investment Policy, 2013, p. 7.

[57]      FIRB, Australia’s Foreign Investment Policy, “Annex 2, Policy Statement: Foreign Investment in Agriculture”, 2013, p. 19.

[58]      Senate Rural and Regional Affairs and Transport References Committee, Inquiry into the Foreign Investment Review Board National Interest Test, Interim report: Tax arrangements for foreign investment in agriculture and the limitations of the Foreign Acquisitions and Takeovers Act 1975, 28 November 2012.

[59]      Mr Brian Wilson, Chair, Foreign Investment Review Board, Committee Hansard, 9 May 2013, p. 8.

Chapter 3 - Foreign investment—information gaps

[1]        For the purposes of this report the ABS Agricultural Land and Water Ownership Survey, Australia 2010, is referred to as the ABS agriculture survey. In addition, the ABARES report is the abbreviated term used for the following report: Mr Brian Moir, Foreign Investment in Australian Agriculture, RIRDC, Canberra, November 2011.

[2]        Western Australian Farmers Federation, Submission 7, p. 1.

[3]        South Australian Farmers Federation, Submission 11, p. 4.

[4]        South Australian Farmers Federation, Submission 11, p. 3.

[5]        South Australian Farmers Federation, Submission 11, pp 3–6.

[6]        NSW Farmers' Association, Submission 17, p. 1.

[7]        NSW Farmers' Association, Submission 17, p. 2.

[8]        Department of Agriculture, Fisheries and Forestry, Issues paper to inform development of a national food plan, June 2011, p. 40.

[9]        Department of Agriculture, Fisheries and Forestry, Issues paper to inform development of a national food plan, June 2011, p. 40.

[10]      Department of Agriculture, Fisheries and Forestry, Issues paper to inform development of a national food plan, June 2011, p. 40.

[11]      Dr Jill Charker, Acting First Assistant Statistician, Australian Bureau of Statistics, Committee Hansard, 16 November 2011, p. 65.

[12]      Australian Bureau of Statistics, Agricultural Land and Water Ownership, Explanatory Notes December 2010, p. 1.

[13]      Dr Jill Charker, Acting First Assistant Statistician,  Australian Bureau of Statistics, Committee Hansard, 16 November 2011, p. 65.

[14]      The information in the following section is summarised from information contained in ABS, Agricultural Land and Water Ownership, December 2010 (the ABS agriculture survey). The information presented in terms of Australian ownership (unless otherwise stated) because of the differing levels of statistical confidence that apply to the results regarding foreign ownership. The ANZSIC 2006 classification was used for categorising businesses.

[15]      The potential sample error for the different levels of foreign ownership was too large for precise figures in all states.

[16]      Australian Bureau of Statistics, Agricultural Land and Water Ownership, Explanatory Notes December 2010, p. 3. Note the ABS use the acronym EVAO for Estimated Value of Agricultural Operations.

[17]      Ms Jacqueline (Jacky) Hodges, Regional Director, Tasmania, and Program Manager, Environment and Agriculture Business Statistics Centre, Australian Bureau of Statistics, Committee Hansard, 16 November 2011, p. 67.

[18]      Note: the number of businesses is approximate and based on the percentage figures and approximate sample size provided in ABS, answer to question on notice, 16 November 2011, (received 8 December 2011).

[19]      Dr Jill Charker, Acting First Assistant Statistician, Australian Bureau of Statistics, Committee Hansard, 16 November 2011, p. 71.

[20]      Dr Jill Charker, Acting First Assistant Statistician, Australian Bureau of Statistics, Committee Hansard, 16 November 2011, p. 72.

[21]      Dr Jill Charker, Acting First Assistant Statistician, Australian Bureau of Statistics, Committee Hansard, 16 November 2011, p. 69.

[22]      Dr Jill Charker, Acting First Assistant Statistician, Australian Bureau of Statistics, Committee Hansard, 16 November 2011, p. 70.

[23]      Dr Jill Charker, Acting First Assistant Statistician, Australian Bureau of Statistics, Committee Hansard, 16 November 2011, p. 67.

[24]      Mr Bruce Hockman, First Assistant Statistician, Business, Industry and Environment Statistics Division, Australian Bureau of Statistics, Committee Hansard, 10 August 2012, p. 2.

[25]      ABS, answer to question on notice, 10 August 2012, (received 31 August 2012).

[26]      Dr Jill Charker, Acting First Assistant Statistician, Australian Bureau of Statistics, Committee Hansard, 16 November 2011, p. 68.

[27]      Senate Economics Legislation Committee, answer to question on notice, Treasury Portfolio, Supplementary Budget Estimates, 19–20 October 2011, question no. 214.

[28]      ABS representatives, Private Briefing with the Senate Rural Affairs and Transport Committee, 21 September 2011. The ABS was asked to comment on the above text regarding prime agricultural land. The ABS noted that '[the] delineation between 'prime' and 'marginal' agricultural land was not identified as an information requirement of the ALWOS [ABS agriculture survey] and therefore estimates could not be produced to inform the level of foreign ownership in these land types.' ABS, correspondence received 9 May 2013.

[29]      Dr Jill Charker, Acting First Assistant Statistician, Australian Bureau of Statistics, Committee Hansard, 16 November 2011, p. 65. This comparison was also reflected in the ABS agriculture survey as published on the ABS website: ABS, 7127.0 - Agricultural Land and Water Ownership (December 2010), September 2011.

[30]      Senator Gallacher was quoting from the comparison made in the media release by the ABS about the agriculture survey. See ABS, Media Release, 'Agricultural businesses almost entirely Australian owned', 9 September 2011, www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/7127.0Media%20Release1December%202010?opendocument&tabname=Summary&prodno=7127.0&issue=December%202010&num=&view.

[31]      Ms Helen Baird, Director, Rural Environment and Agriculture Statistics, Australian Bureau of Statistics, Committee Hansard, 10 August 2012, p. 8.

[32]      ABS, answer to question on notice, 10 August 2012, (received 31 August 2012).

[33]      See ABS, Survey of Agricultural Land and Water Ownership, www.abs.gov.au/AUSSTATS/abs@.nsf/DOSSbytitle/7D1341AF14A92E5ECA257829007BA6D0?OpenDocument (accessed 3 May 2013).

[34]      ABS, ABS Submission to the consultation paper: 'Establishing a national foreign ownership register for agricultural land', January 2013, p. 5.

[35]      Mr Brian Moir, Foreign Investment in Australian Agriculture, RIRDC, Canberra, November 2011, p. iii.

[36]      Department of Agriculture, Fisheries and Forestry, Submission 1, p. 2.

[37]      Mr Brian Moir, Foreign Investment in Australian Agriculture, RIRDC, Canberra, November 2011, pp 26–34.

[38]      Mr Brian Moir, Foreign Investment in Australian Agriculture, RIRDC, Canberra, November 2011, pp 1–5 and 18–25.

[39]      Mr Brian Moir, Foreign Investment in Australian Agriculture, RIRDC, Canberra, November 2011, p. 1.

[40]      Mr Jim Murphy, Executive Director, Markets Group, Treasury, Committee Hansard, 16 August 2012, p. 22.

[41]      The Treasury, Establishing a national foreign ownership register for agricultural land, Consultation paper, November 2012, www.treasury.gov.au/~/media/Treasury/Consultations%20and%20Reviews/2012/agricultural%20land/key%20documents/pdf/Consultation_Paper.ashx (accessed 7 November 2012).

[42]      www.treasury.gov.au/ConsultationsandReviews/Submissions/2012/agricultural-land.

[43]      See, for example, submission by AAG Investment Management, the Institute of Chartered Accountants Australia, the Macquarie Group, the National Australia Bank, the National Farmers Federation and state based farmers' federations. Some individual submitters opposed foreign ownership, in general, and therefore the register, www.treasury.gov.au/ConsultationsandReviews/Submissions/2012/agricultural-land.

Chapter 4 - Transparency and scrutiny of foreign investment

[1]        The threshold issue is discussed in chapter five. As noted in chapter two, the thresholds for private foreign investment are covered by the relevant sections of the Foreign Acquisitions and Takeovers Act 1975 (FATA) and the Foreign Acquisitions and Takeovers Regulation 1989 (FATR). The zero dollar threshold for 'direct investment' from foreign government entities is largely covered by relevant sections of Australia's Foreign Investment Policy (AFIP).

[2]        Mr Frank Di Giorgio, General Manager, Foreign Investment and Trade Policy Division, Treasury and Executive Member, Foreign Investment Review Board, Committee Hansard, 16 November 2011, p. 1.

[3]        Mr Frank Di Giorgio, General Manager, Foreign Investment and Trade Policy Division, Treasury and Executive Member, Foreign Investment Review Board, Committee Hansard, 16 November 2011, p. 1.

[4]        Mr Frank Di Giorgio, General Manager, Foreign Investment and Trade Policy Division, Treasury and Executive Member, Foreign Investment Review Board, Committee Hansard, 16 November 2011, pp 1–2.

[5]        Mr Frank Di Giorgio, General Manager, Foreign Investment and Trade Policy Division, Treasury and Executive Member, Foreign Investment Review Board, Committee Hansard, 16 November 2011, p. 2.

[6]        Ms Rose Webb, Executive General Manager, Mergers and Adjudication Group, Australian Competition and Consumer Commission, Committee Hansard, 17 February 2012, p. 47; Mr Michael O'Neill, Assistant Deputy Commissioner, International Branch, Australian Taxation Office, Committee Hansard, 17 February 2012, p. 52; and Mr Frank Di Giorgio, General Manager, Foreign Investment and Trade Policy Division, Treasury and Executive Member, Foreign Investment Review Board, Committee Hansard, 16 November 2011, p. 3.

[7]        Ms Rose Webb, Executive General Manager, Mergers and Adjudication Group, Australian Competition and Consumer Commission, Committee Hansard, 17 February 2012, p. 47.

[8]        Mr Michael O'Neill, Assistant Deputy Commissioner, International Branch, Australian Taxation Office, Committee Hansard, 17 February 2012, p. 52.

[9]        Cargill, Submission 9, p. 9.

[10]      TFS Corporation, Submission 14, p. 6.

[11]      For example, AGEA, Submission 18, p. 2; and Vicstock International Limited and Vicstock (Aust.) Pty Ltd, Submission 22, p. 2.

[12]      Vicstock International Limited and Vicstock (Aust.) Pty Ltd, Submission 22, p. 2.

[13]      TFS Corporation, Submission 14, p. 6.

[14]      For an individual perspective see for example, Wayne Van Balen, Submission 21.

[15]      Note: the term "FIRB approval" is used in this report to indicate that a foreign investment proposal has been reviewed by FIRB, recommended to and accepted by the Treasurer. It should not be read as FIRB having the ultimate decision-making power which rests with the Treasurer.

[16]      Cargill, Submission 9, pp 4–6.

[17]      SAFF, Submission 11, p. 7.

[18]      Western Australia Farmers Federation, Submission 7, p. 2.

[19]      Mr Brian Wilson, Chair, FIRB, Committee Hansard, 11 October 2012, p. 12.

[20]      Mr John Phillips, Chair (former), FIRB, Committee Hansard, 9 February 2012, p. 21.

[21]      Mr Brian Wilson, Chair, FIRB, Committee Hansard, 11 October 2012, p. 2.

[22]      Mr Brian Wilson, Chair, FIRB, Committee Hansard, 21 March 2013, p. 12.

[23]      Mr John Phillips, Chair (former), FIRB, Committee Hansard, 9 February 2012, pp 25–26.

[24]      Mr Brian Wilson, Chair, FIRB, Committee Hansard, 11 October 2012, p. 4.

[25]      Mr Frank Di Giorgio, General Manager, Foreign Investment and Trade Policy Division, Treasury and Executive Member, Foreign Investment Review Board, Committee Hansard, 9 February 2012, p. 20.

[26]      Mr Brian Wilson, Chair, and Ms Sam Reinhardt, General Manager, Foreign Investment and Trade Policy Division, Treasury and Executive Member, Foreign Investment Review Board Committee Hansard, 16 August 2012, p 15.

[27]      Mr Brian Wilson, Chair, Foreign Investment Review Board, Committee Hansard, 11 October 2012, p. 3.

[28]      FIRB, answer to question on notice, 9 February 2012, (answered 16 August 2012).

[29]      FIRB, Foreign Investment Review Board Annual Report 2011-12, p. 10

[30]      Mr Tom McKeon, Chief Executive Officer, Hassad Australia Pty Ltd, Committee Hansard, 16 November 2011, p. 38.

[31]      Mr Tom McKeon, Chief Executive Officer, Hassad Australia Pty Ltd, Committee Hansard, 16 November 2011, p. 40.

[32]      Mr Tom McKeon, Chief Executive Officer, Hassad Australia Pty Ltd, Committee Hansard, 16 November 2011, p. 39.

[33]      For information about the review of foreign government entity investment see FIRB, Australia's Foreign Investment Policy, 2013, pp 2 and 14–15.

[34]      Mr Tom McKeon, Chief Executive Officer, Hassad Australia Pty Ltd, Committee Hansard, 16 November 2011, p. 38.

[35]      Mr Tom McKeon, Chief Executive Officer, and Mr John Corbett, Director, Hassad Australia Pty Ltd, Committee Hansard, 16 November 2011, pp 46–47.

[36]      Mr John Corbett, Director, Hassad Australia Pty Ltd, Committee Hansard, 16 November 2011, p. 42.

[37]      Mr Tom McKeon, Chief Executive Officer, Hassad Australia Pty Ltd, Committee Hansard, 9 April 2013, p. 44.

[38]      See Cameron England, 'Foreign Land Grab: Middle East secretly targets our farms', Adelaide Advertiser, 23 February 2013. The article discusses the agricultural land purchases of Hassad Australia and specifically alleges that Hassad Australia is paying above market prices for agricultural land in Eyre Peninsula and 'demanding' that farmers sign confidentiality agreements regarding the acquisitions.

[39]      Mr Tom McKeon, Chief Executive Officer, Hassad Australia Pty Ltd, Committee Hansard, 9 April 2013, p. 45.

[40]      Mr Tom McKeon, Chief Executive Officer, Hassad Australia Pty Ltd, Committee Hansard, 9 April 2013, p. 44.

[41]      Mr Tom McKeon, Chief Executive Officer, Hassad Australia Pty Ltd, Committee Hansard, 9 April 2013, pp 46–47.

[42]      Hassad Australia, answer to question on notice, 9 April 2013, (received 9 May 2013).

[43]      Mr William Lempriere, Managing Director, Lempriere Pty Ltd, Committee Hansard, 24 October 2012, p. 1.

[44]      Mr William Lempriere, Managing Director, Lempriere Pty Ltd, Committee Hansard, 24 October 2012, pp 1–2. Note: the Japanese company Itochu has a 30 per cent shareholding in Shandong RuYi.

[45]      The Hon Wayne Swan MP, Deputy Prime Minister and Treasurer, media release No. 079, 31 August 2012, www.treasurer.gov.au/wmsDisplayDocs.aspx?doc=pressreleases/2012/079.htm&PageID=003&min=wms&Year=&DocType=0 (accessed 12 November 2012).

[46]      Mr Brian Wilson, Chair, Foreign Investment Review Board, Committee Hansard, 11 October 2012, p. 3. The Hon Wayne Swan MP, Deputy Prime Minister and Treasurer, Media Release no. 79, Foreign Investment Decision, 31 August 2012. Matthew Cranston, ‘Cubbie’s new owners look at water sale’, The Land (online), 15 March 2013, www.theland.com.au/news/agriculture/agribusiness/general-news/cubbies-new-owners-look-at-water-sale/2650753.aspx.

[47]      Mr Brian Wilson, Chair, Foreign Investment Review Board, Committee Hansard, 11 October 2012, p. 3.

[48]      Mr Brian Wilson, Chair, Foreign Investment Review Board, Committee Hansard, 11 October 2012, p. 3.

[49]      Mr William Lempriere, Managing Director, Lempriere Pty Ltd, Committee Hansard, 24 October 2012, pp 2 and 12.

[50]      Mr William Lempriere, Managing Director, Lempriere Pty Ltd, Committee Hansard, 24 October 2012, p. 12.

[51]      Mr William Lempriere, Managing Director, Lempriere Pty Ltd, Committee Hansard, 24 October 2012, p. 2.

[52]      Mr William Lempriere, Managing Director, Lempriere Pty Ltd, Committee Hansard, 24 October 2012, p. 3.

[53]      Mr William Lempriere, Managing Director, Lempriere Pty Ltd, Committee Hansard, 24 October 2012, p. 7.

[54]      Mr William Lempriere, Managing Director, Lempriere Pty Ltd and Mr Anthony McKenna, Managing Director, Ceres Capital Management Committee Hansard, 24 October 2012, pp 6–7.

[55]      Mr Matthew Cranston, ‘Cubbie’s new owners look at water sale’, The Land (online), 15 March 2013, www.theland.com.au/news/agriculture/agribusiness/general-news/cubbies-new-owners-look-at-water-sale/2650753.aspx.  

[56]      Senate Rural and Regional Affairs and Transport References Committee, Management of the Murray-Darling Basin, March 2013, pp 79–95.

Chapter 5 - Investment threshold and related issues

[1]        As noted earlier in the report, for consistency, the 2013 figure of $248 million is used throughout this report.

[2]        FIRB, Australia’s Foreign Investment Policy, 2013, pp 2­–3.

[3]        FIRB, Australia’s Foreign Investment Policy, 2013, p. 17. Note: this quote in the AFIP includes a footnote (no. 22) stating: 'See section 6 of the Foreign Acquisitions and Takeovers Act 1975 for the list of 'associates'.'

[4]        See FIRB website: www.firb.gov.au. The $248 million threshold was $244 million in 2012 and $231 million in 2011 when the committee's inquiry began. Regarding the New Zealand threshold see: The Hon David Bradbury MP, Assistant Treasurer and Minister Assisting for Deregulation and The Hon Craig Emerson MP, Minister for Trade and Competitiveness and Minister Assisting the Prime Minister on Asian Century Policy, Media Release No. 22, ‘Milestone in Investment Ties with New Zealand’, 1 March 2013. Also note, the indexation of the thresholds was announced in August 2009, which stated that the thresholds are 'indexed on 1 January each year to the GDP price deflator in the Australian National Accounts for the previous year.' The Hon Wayne Swan MP, Deputy Prime Minister and Treasurer, Media Release, 'Reforming Australia's Foreign Investment Framework', 9 August 2009.

[5]        As set out in FIRB, Australia's Foreign Investment Policy, 2013, pp 2 and 14–15.

[6]        South Australian Farmers Federation, Submission 9, p. 6.

[7]        Mr Peter White, President, South Australian Farmers Federation, Committee Hansard, 16 November 2011, p. 21.

[8]        Mr Bill McDonnell, Chairman, Business Economics and Trade Committee, NSW Farmers Association, Committee Hansard, 17 February 2012, p. 9.

[9]        This is calculation is based on details from 2012 provided by the Mr Bill McDonnell of the NSW Farmers Association – who made a similar point to the committee. Mr Bill McDonnell, Chairman, Business Economics and Trade Committee, NSW Farmers Association, Committee Hansard, 17 February 2012, p. 9.

[10]      ABARES report, Foreign investment and Australian agriculture, p. 16.

[11]      The committee is aware that 'turnover' and the 'value' of the business are different concepts, however, it considers that this evidence supports the general agricultural industry view, that only a very small number of agribusinesses and agricultural land is large enough to be captured by the FIRB review threshold.

[12]      ATO, answer to question on notice, 9 May 2012, (answered 5 June 2012).

[13]      Mr Charles McElhone, General Manager, Policy, National Farmers' Federation, Committee Hansard, 17 February 2012, p. 8.

[14]      Mr John Phillips, Chair (former), FIRB, Committee Hansard, 9 February 2012, p. 5.

[15]      Mr John Phillips, Chair (former), FIRB, Committee Hansard, 9 February 2012, pp 5–6.

[16]      South Australian Farmers Federation, Submission 9, p. 6.

[17]      Mr Matthew Linnegar, Chief Executive Officer, National Farmers' Federation, Committee Hansard, 17 February 2012, p. 4.

[18]      Mr Bill McDonnell, Chairman, Business Economics and Trade Committee, NSW Farmers Association, Committee Hansard, 17 February 2012, p. 10.

[19]      Mr Mike Norton, President, Western Australian Farmers Federation Inc, Committee Hansard, 17 February 2012, p. 16.

[20]      Mr Mike Norton, President, Western Australian Farmers Federation Inc, Committee Hansard, 17 February 2012, p. 16.

[21]      Mr Terry Brabin, Chief Executive Officer and Managing Director, BFB Pty Ltd, Committee Hansard, 17 February 2012, p. 23.

[22]      Mr Peter McBride, Director, Corporate Affairs, Cargill, Committee Hansard, 17 February 2012, p. 25.

[23]      Mr Terry Brabin, Chief Executive Officer and Managing Director, BFB Pty Ltd, Committee Hansard, 17 February 2012, p. 23.

[24]      Mr Terry Brabin, Chief Executive Officer and Managing Director, BFB Pty Ltd, Committee Hansard, 17 February 2012, p. 30.

[25]      Foreign Acquisitions and Takeovers Act 1975, ss. 5(1).

[26]      Foreign Acquisitions and Takeovers Act 1975, ss. 5(1).

[27]      Mr John Phillips, Chair (former), FIRB, Committee Hansard, 9 February 2012, p. 2.

[28]      Mr Brian Wilson, Chair, FIRB, Committee Hansard, 16 August 2012, p. 22.

[29]      For example, The AFIP states that for types of urban land such as real estate: ' Regardless of value, foreign persons generally need to notify the Government and get prior approval to take an interest in residential real estate, vacant land or to buy shares or units in Australian urban land corporations or trusts. Foreign persons also need to notify for prior approval if they want to take an interest in developed commercial real estate that is valued at $54 million or more...'. See FIRB, Australia's Foreign Investment Policy, 2013, p. 4.

[30]      Committee Hansard, 9 February 2012, p. 16.

[31]      ACA, Submission 28 (supplementary), p. 7.

[32]      ACA, Submission 28 (supplementary), p. 8. The original footnotes from this quote have been omitted. To see the original footnotes refer to p.8 of the submission.

[33]      ACA, Submission 28 (supplementary), p. 15.

[34]      Mr John Hill, Senior Adviser, Foreign Investment and Trade Policy Division, the Treasury, Committee Hansard, 16 August 2012, p. 25.

[35]      The Treasury, Establishing a national foreign ownership register for agricultural land, Consultation paper, November 2012, pp 6–7. www.treasury.gov.au/~/media/Treasury/Consultations%20and%20Reviews/2012/agricultural%20land/key%20documents/pdf/Consultation_Paper.ashx (accessed 7 November 2012).

[36]      See Mr Brian Wilson, Chair, Foreign Investment Review Board, Committee Hansard, 9 May 2013, p. 8.

[37]      Mr Matt O’Sullivan, ‘Etihad gets government nod to double Virgin stake’, Sydney Morning Herald (online), 19 July 2012.

[38]      FIRB, Australia's Foreign Investment Policy, January 2012, p. 2, www.firb.gov.au/content/_downloads/AFIP_Aug2012.pdf, emphasis added. The 2013 version of the AFIP uses the term foreign government investors. This definition is briefly discussed in chapter two of this report, or can be found at: FIRB, Australia's Foreign Investment Policy, 2013, p. 15.

[39]      FIRB, Australia's Foreign Investment Policy, January 2012, p. 12.

[40]      Mr Jim Murphy, Executive Director, Markets Group, the Treasury, Committee Hansard, 16 August 2012, p. 20, emphasis added.

[41]      FIRB website: www.firb.gov.au/content/other_investment/acquisition.asp?NavID=29 (accessed 11 October 2012).

[42]      FIRB, Australia's Foreign Investment Policy, January 2012, p. 12.

[43]      Mr Brian Wilson, Chair, Foreign Investment Review Board, Committee Hansard, 16 August 2012, p. 20, emphasis added.

[44]      Mr Brian Wilson, Chair, Foreign Investment Review Board, Committee Hansard, 16 August 2012, p. 20.

[45]      Mr Brian Wilson, Chair, Foreign Investment Review Board, Committee Hansard, 11 October 2012, pp 9–10.

[46]      FIRB, Australia's Foreign Investment Policy, 2013, p. 14. The full new definition can also be found on this page.

Chapter 6 - Foreign investment and agricultural development: the Ord irrigation area case study

[1]        Chia is a commercially grown seed crop that contains high levels of omega 3 and dietary fibre.

[2]        Hon Colin Barnett MLA and Hon Bredon Grylls MLA, Media Release, “Ord-East Kimberley Proponent Announced” 20 November 2012.

[3]        The Hon Colin Barnett MLA, Premier and Minister for State Development, Western Australia, correspondence to the Senate Rural and Regional Affairs and Transport References Committee, 5 April 2013 (received 11 April 2013). KAI was announced as the confirmed proponent of the Ord development on 29 May 2013, see Hon Colin Barnett MLA and Hon Brendon Grylls MLA, media release, "Ord development takes important step", 29 May 2013, www.mediastatements.wa.gov.au/pages/StatementDetails.aspx?listName=StatementsBarnett&StatId=7425 (accessed 14 June 2013).

[4]        The committee’s interim report noted evidence from the AACo that there were a number of tax barriers to domestic companies competing in fair and even terms with foreign investors. In addition to the taxation issues, the committee heard evidence of other key challenges for capital investment in agricultural developments. Senate Rural and Regional Affairs and Transport References Committee, Examination of the Foreign Investment Review Board National Interest Test, Interim Report: Tax arrangements for foreign investment in agriculture and the limitations of the Foreign Acquisitions and Takeovers Act 1975, November 2012, pp 16–20.

[5]        Mr Andrew Murray, Chair, Western Australian Regional Development Trust, Committee Hansard, 9 April 2013, p. 33.

[6]        Mr Andrew Murray, Chair, Western Australian Regional Development Trust, Committee Hansard, 9 April 2013, p. 33.

[7]        Mr Robert Boshammer, private capacity, Committee Hansard, 11 April 2013, p. 4.

[8]        The Hon Mr Chris Ellison, Advisory Director, TFS Corporation, Committee Hansard, 11 April 2013, p. 27.

[9]        The Hon Mr Chris Ellison, Advisory Director, TFS Corporation, Committee Hansard, 11 April 2013, p. 27.

[10]      Mr Mike Introvigne, private capacity, Committee Hansard, 9 April 2013, pp 11–14.

[11]      Mr Tony Chafer, CEO, Cambridge Gulf Limited, Committee Hansard, 11 April 2013, pp 50–51.

[12]      Mr Andrew Murray, Chair, Western Australian Regional Development Trust, Committee Hansard, 9 April 2013, p. 32.

[13]      Mr Andrew Murray, Chair, Western Australian Regional Development Trust, Committee Hansard, 9 April 2013, p. 32.

[14]      Farmers in the Ord Stage 1 area have a water allocation of 17 megalitres per hectare, see: Cr John Moulden, Shire President, Shire of Wyndham and East Kimberley, Committee Hansard, 11 April 2013, p. 21.

[15]      Mr Robert Boshammer, private capacity, Committee Hansard, 11 April 2013, pp 7–8. However, Mr Boshammer also noted the limited benefits that a water market would have for attracting capital: Mr Robert Boshammer, private capacity, Committee Hansard, 11 April 2013, p. 8.

[16]      Mr Tony Chafer, CEO, Cambridge Gulf Limited, Committee Hansard, 11 April 2013, p. 48.

[17]      Mr Andrew Murray, Chair, Western Australian Regional Development Trust, Committee Hansard, 9 April 2013, p. 32.

[18]      Mr Andrew Murray, Chair, Western Australian Regional Development Trust, Committee Hansard, 9 April 2013, pp 34–35.

[19]      Mr Brian Wilson, Chair, Foreign Investment Review Board, and Mr Jonathan Rollings, General Manager, Foreign Investment and Trade Policy Division, Treasury, Committee Hansard, 9 May 2013, p. 10.

[20]      Mr Dale Park, President, Western Australian Farmers Federation, Committee Hansard, 9 April 2013, p. 30.

[21]      Cr John Moulden, Shire President, Shire of Wyndham and East Kimberley, Committee Hansard, 11 April 2013, pp 22–23.

[22]      For example see Mr Robert Boshammer, Committee Hansard, 11 April 2013, p. 1. Another stakeholder expressed that he was generally 'pro-investment' and ambivalent regarding the investment source being foreign or domestic, see Mr Anthony Chafer, Chief Executive Officer Cambridge Gulf Limited, Committee Hansard, 11 April 2013, p. 49.  

[23]      The Hon Colin Barnett MLA, Premier and Minister for State Development, Western Australia, correspondence to the Senate Rural and Regional Affairs and Transport References Committee, 5 April 2013 (received 11 April 2013).

Dissenting report by Government Senators

[1]        Senate Economics References Committee, Foreign investment by stat-owned entities, September 2009, pp 61–62.

[2]        Senate Economics References Committee, Foreign investment by stat-owned entities, September 2009, p. 62.

[3]        Senate Economics Legislation Committee, Foreign Acquisitions Amendment (Agricultural Land) Bill 2010, June 2011, p. 41.

[4]        Mr Brian Moir, Foreign Investment in Australian Agriculture, RIRDC, Canberra, November 2011, p. 36.

[5]        Mr Tom McKeon, Chief Executive Officer, Hassad Australia Pty Ltd, Committee Hansard, 16 November 2011, p. 40. See also paragraph 4.30 of the majority report.

[6]        Mr Brian Moir, Foreign Investment in Australian Agriculture, RIRDC, Canberra, November 2011, p. 25.

[7]        Mr Brian Moir, Foreign Investment in Australian Agriculture, RIRDC, Canberra, November 2011, p. 48.

[8]        Australian Bureau of Statistics, ABS cat 8167.0, Selected Characteristics of Australia Business 2010-11, "Business Structure and Arrangements", 13 September 2012, www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/8167.0Main%20Features32010-11?opendocument&tabname=Summary&prodno=8167.0&issue=2010-11&num=&view.

[9]        Australian Bureau of Statistics, Agricultural Land and Water Ownership, December 2010, released 9 September 2011.

[10]      Australian Bureau of Statistics, ABS cat 5352.0, International Investment Position, Australia: Supplementary Statistics, 2012, "Table 2 - Foreign Investment in Australia, Level of Investment by Country and Country Groups by type of investment and year: ($million)", released, 2 May, 2013, www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/5352.02012?OpenDocument.

[11]      2013-14 Budget, BP1 BS2 Box 5 Chart A, www.budget.gov.au/2013-14/content/bp1/download/bp1_bs2.pdf.

[12]      Jackson Partners (Commissioned by ANZ), ANZ Insight, Greener Pastures: The Global Soft Commodity Opportunity for Australia and New Zealand, Issue 3, October 2012, p. 1.

[13]      Australian Bureau of Statistics, Economic Activity of Foreign Owned Business in Australia, 2000-01,5494.0, 9 January 2004 www.ausstats.abs.gov.au/Ausstats/subscriber.nsf/0/B57862618642D2B4CA256E1500752AC7/$File/54940_2000-01.pdf.

[14]      Australian Bureau of Statistics, ABS cat 8104.0, Research and Experimental Development, Businesses, Australia, 2010-11, released 11 September 2012, www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/8104.0Main+Features12010-11?OpenDocument.

[15]      OECD, "FDI regulator restrictiveness index 2012", www.oecd.org/daf/inv/ColumnChart-FDI_RR_Index_2012.pdf.

[16]      Mr Brian Moir, Foreign Investment in Australian Agriculture, RIRDC, Canberra, November 2011, p. 43.

[17]      Jyothi Gali and Bruce Taplin, "The macroeconomic effects of lower capital inflow", Treasury Economic Roundup, Issue 3 2012, www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012/Economic%20Roundup%20Issue%203/Downloads/PDF/01.ashx.

[18]      Department of Agriculture, Fisheries and Forestry, National Food Plan, Our food future, 2013, Canberra, p. 56.

[19]      Mr Brian Moir, Foreign Investment in Australian Agriculture, RIRDC, Canberra, November 2011, p. 13.

[20]      Mr Brian Moir, Foreign Investment in Australian Agriculture, RIRDC, Canberra, November 2011, p. 48.

Minority report from the Australian Greens

[1]        Oxfam released a report in October 2012 on this global ‘land grab’ which estimated ‘in the past decade an area of land eight times the size of the UK has been sold off globally as land sales rapidly accelerate. This land could feed a billion people, equivalent to the number of people who go to bed hungry each night’; Our Land, Our Lives, p 1. This is occurring while the global amount of farmland is shrinking and the remaining farmland losing topsoil; Mr Julian Cribb, Committee Hansard, 9 May 2012, p. 1.

[2]        Mr Tom McKeon, Chief Executive Officer, Hassad Foods, Committee Hansard, 16 November 2011, p. 40. Hassad owns around 250,000 hectares of agricultural land over multiple states.

[3]        Cubbie Station, which has been described as ‘the largest irrigated property in the Southern hemisphere’, was rumoured to have sold for $240 million; The Australian, 26 January 2013. The president of the South Australian Farmers Federation was unaware of any farms in that state worth that amount; Mr Peter White, Committee Hansard, 16 November 2011, p. 24.

[4]        Mr Peter White, President, South Australian Farmers Federation, Committee Hansard, 16 November 2011, p. 21.

[5]        Mr Bill McDonnell, Chairman, Business Economics and Trade Committee, NSW Farmers’ Association, Committee Hansard, 17 February 2012, p. 9.

[6]        Mr Frank Di Giorgio, Principal Adviser, Foreign Investment and Trade Policy Division, Department of the Treasury, Senate Economics Committee Inquiry into Foreign Acquisitions Amendment (Agricultural Land) Bill 2010, Committee Hansard, 12 April 2011, p. 13.

[7]        Senate Economics Legislation Committee, Foreign Acquisitions Amendment (Agricultural Land) Bill 2010 Dissenting Report by Senator Nick Xenophon and Senator Christine Milne, p. 56.

Additional Comments by Senator Nick Xenophon - The 'known unknown'—our current vague national interest test for foreign investment

[1]        Dr Jill Charker, Acting First Assistant Statistician, Committee Hansard, 16 November 2011, p. 71.

[2]        Senate Economics Legislation Committee, Inquiry into the Foreign Acquisitions Amendment (Agricultural Land) Bill 2010, Committee Hansard, 12 April 2011, p. 35.

[3]        Mr David Farley, 'We can feed the world ourselves', Australian Financial Review, 7 June 2012, p. 63.

[4]        Mr David Farley, 'We can feed the world ourselves', Australian Financial Review, 7 June 2012, p. 63.

[5]        John Stensholt, 'You can't eat a Commodore: ''Food superpower' is Australia's future says Anthony Pratt', Australian Financial Review, 21 June 2013, available at www.afr.com/p/business/pratt_can_eat_commodore_food_superpower_Le9gTFj4zPrPwTlWkEo09O, accessed 23 June 2013.

[6]        Stephen Long, 'Aust consortium bid not considered for Cubbie', PM, 18 October 2012, available at www.abc.net.au/pm/content/2012/s3613575.htm, accessed 23 June 2013.

[7]        Treasurer, Australia’s Foreign Investment Policy, 2012, available at: www.firb.gov.au/content/Publications/AnnualReports/2011-2012/06_Appendix_A.asp, accessed 14 May 2013.

[8]        Ibid.

[9]        Ibid.

[10]      Etihad Airways, Fast Facts and Figures, December 2012, available at http://resources.etihadairways.com/etihadairways/images/fast-facts-and-figures/dec12/en/files/assets/basic-html/page3.html, accessed 14 May 2013.