Ausbuy

Foreign State Ownership of Australia

September 27th, 2007

A new development is facing Australia. State owned companies from China and Singapore are taking controlling interests in Australian assets. The concept of foreign governments controlling major Australian enterprises is worrying. The Singapore Government is now the controlling shareholder in SP AusNet which, with the purchase of Alinta Assets for $8 billion, is the largest energy distribution business in Australia. The Foreign Investment Review Board (FIRB) is supposed to monitor and control these investments, but their recent record does not inspire confidence.

In the past this has not been a problem and the investment in Optus by the Singapore Government was welcomed, but we now see countries like China, Taiwan and Singapore with huge cash reserves for which they want to find a home. We do not see a problem where there is a minority investment, but the question of control is critical. Nations have different priorities than institutions or private investors. Control of Australia’s resources must be kept in Australia’s hand. Ausbuy is against the sale of our major companies to any foreign interests, but we are particularly concerned when the sale involves losing Australian sovereignty over its own resources.

We must address this problem now before it gets out of control. The USA is already concerned about the effect on its vast market of such development. If they are concerned, we should be very worried. Having fought a takeover in war, we do not want to surrender our country in peace.

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1. Yes, agreed. Withstanding broken record syndrome, controlling parties seem only concerned with “makin a buck”. Trouble being, most people have their head in the sand regarding these issues. It should be made aware to the younger gen that the freedom they enjoy didn’t fall from the sky. Hey! If we can’t take it by force we’ll buy it from you.

   Comment by falcongt — October 9, 2007 @ 8:47 am

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