The Sydney Morning Herald | 25 March 2011
by Clancy Yeates
PARLIAMENT is calling on the Productivity Commission to review the recent surge in foreign investment in farming, focusing on its effects on the economy and food security.
As the government moves to collect more data on foreign ownership of farm land, the commission will be asked to assess whether there is a need to lower the $231 million threshold for mandatory scrutiny from the foreign investment watchdog.
The lower house yesterday passed a Coalition motion calling for the review and extra data collection, to fill a perceived information vacuum on foreign ownership of farm land.
It comes amid a wave of global investment from China and other developing countries looking to bolster food supplies.
The motion requires the Bureau of Statistics to conduct a survey of foreign ownership of agribusiness and farming land every two years to inform the debate on whether a national register of ownership is needed.
The commission would then review the data, subject to its work-load, and assess whether a food security test needs to be introduced when the Foreign Investment Review Board considers farm buyouts.
In a rare display of bipartisanship, the government backed the motion from the opposition agriculture spokesman, John Cobb.
Food security has emerged as a growing political concern after a wave of agribusiness buyouts including ABB Grain, AWB and the bid for Sunrice to be decided in May.
Mr Cobb predicted more foreign buyouts of Australian agribusiness companies as the world's population grew, with overseas countries brought into agricultural supply chains.
"The current rules for foreign investment are outdated and do not address food security. This will not protect our grain industry from foreign control.''
Separately, the independent senator Nick Xenophon and the Greens' Christine Milne have developed a private member's bill requiring the Treasurer to subject all land purchases of more than five hectares to a national interest test.
The proposal, which has failed to gain the support of the two main parties, was this month criticised by the Treasury as posing a threat to agricultural sector investment.
