Tasmanian independent Denison MP Andrew Wilkie says pressure is building on the Federal Government, over the sale of the Van Diemen’s Land Company (VDL) sale to a Chinese investor.
Independent cross benchers, Nick Xenophon (SA), John Madigan (Vic), Jacquie Lambie (Tas) and Glenn Lazarus (Qld) have joined Mr Wilkie, in opposing the sale.
Meanwhile, the Greens have referred the proposed VDL sale to a Senate committee and Tasmanian businesswoman Jan Cameron has agreed to underwrite a bid, matching that by Chinese investor Moon Lake.
Tasmanian Greens Senator Peter Whish-Wilson said the committee would seek submissions and details from a range of stakeholders around potential concerns.
Mr Wilkie, who has been joined by Senators Nick Xenophon and John Madigan, and business woman Jan Cameron, said it was scandalous the Federal Government had agreed to the sale.
He said the 30,000 cow farm, on Tasmania’s north-west coast, covered an area of 20,000 hectares, over 25 farms.
Mr Wilkie said while the matter would not be decided by Parliament, the support of the cross benchers should ring alarm bells for the government.
“I do hold out hope that political pressure is building, it won’t be lost on the government, that half the Senate cross bench don’t like it,” Mr Wilkie said.
“If the government is tuned into public sentiment, they would need to pay increasing attention to this.”
Mr Wilkie said the Foreign Investment Review Board should reject the sale, on the same grounds as the Kidman property.
“I would argue VDL is in the same league as Kidman, and for some of the same reasons – it’s such a big asset and genuinely of strategic importance to the country. That VDL is owned currently by New Zealanders and that it is a Chinese investor seeking to purchase it are entirely irrelevant,” he said. “The fact is this is a commercial asset of strategic proportions and it would be irresponsible in the extreme for the Government to miss this opportunity to bring VDL into Australian ownership.”
And Senator Xenophon has called for foreign takeover laws to be changed, to consider credible alternative local bids before a foreign takeover can be approved.
Senator Xenophon was critical of the current process involving foreign takeovers. “The lack of transparency in the current process is a shocker,” he said.
“For instance, we have no idea what the impact will be on local jobs, particularly with the new China Free Trade Agreement (ChAFTA) making it easier for overseas workers to take Australian jobs.
Senator Xenophon said he would be working with his crossbench colleagues to move urgent amendments to the Foreign Acquisitions and Takeovers Act, to ensure the Foreign Investment Review Board (FIRB) and the Treasurer must take into account any local alternative bids.
“It would be a monumental act of folly to approve this bid when there is an Australian-based bid to consider. Whilst the alternative bid is focused on jobs and economic opportunity for Tasmania, the icing on the cake has to be its environmental and indigenous credentials as well,” he said.
Senator Xenophon also pointed out that despite the ChAFTA a similar bid for a Chinese property would never be countenanced in Chinese law.
Greens finance spokesman Senator Peter Whish-Wilson said the party supported socially and environmentally sustainable investment, that secured local jobs and delivered economic benefits to the Tasmanian community.
“Concerns over food security and shortages of supply, foreign workers displacing local jobs and other strategic concerns such as any loss of intellectual property should always be thoroughly examined by the FIRB process,” Senator Whish-Wilson said.
“It is no secret we are now in an election year, and Senator Xenophon is launching his new political party in Tasmania. It would be a shame for Tasmania, if populist politicking got in the way of good policy and process,” he said.
Tasmanian dairy company TasFoods has sought damages, after its bid to buy VDL was overturned by parent company Taranaki Investment Managment Limited (TIML).
On November 6, last year, TIML announced TasFoods would buy the company for $250 million. It later said Moon Lake Investment, an Australian company set up for Chinese businessman Lu Xianfeng, had been chosen as the preferred buyer, in a $280 million deal.
Mr Lu said he intended working with the existing management of the Tasmanian dairy assets to seek continued gains in productivity, while continuing to supply milk to Tasmanian milk processors.
Moon Lake was also interested in partnering with Australian investors in the business or in joint ventures and would consider approaches for up to a 40% shareholding by Australian investors in VDL.
The sole owner of Moon Lake Investments is Mr Lu Xianfeng, is also the managing director and executive chairman of ASX listed Kresta Holdings Limited, Australia’s biggest window covering retailer.
Mr Lu is also the founder and largest shareholder of Ningbo Xianfeng New Material Co. Ltd (APLUS), a company listed on the Shenzhen Stock Exchange, China, with a market capitalisation of approximately A$1.52 billion. I
The Tasfoods Victorian Supreme Court trial, for damages, is expected to begin on February 22.
Mr Wilkie said VDL was a prestigious Tasmanian “place of origin” food brand, and one with associated tourism components. He said it promised to be a much more lucrative operation for Australia, and Tasmania in particular, than one doing little more than shipping bulk milk or bulk milk powder off to another country.
“It’s not good enough for the Government to wash its hands of this matter and leave it up to the Foreign Investment Review Board. Instead it should intervene immediately, stop the current proposed sale and ensure any actual sale is to an Australian entity” Mr Wilkie said.
“This situation reflects an appalling failure of governance.”
