… he has an obligation to act in the interest of agriculture and I strongly urge him to do so
‘Block GrainCorp sale’: Nats
Nationals Leader Warren Truss backed his party members, saying there was “widespread concern in the grain industry”.
NSW Nationals Senator Fiona Nash and Nationals Riverina MP Michael McCormack have responded to repeated concerns raised by their grain growing constituents, about surrendering supply chain control to foreign multinationals, following the loss of single desk monopoly wheat export marketer AWB in 2008.
Nationals Leader Warren Truss also backed his party members, saying there was “widespread concern in the grain industry” – also shared by his city colleagues – about large scale takeovers and lack of a locally owned company with global grain capacity.
“There is still CBH in WA – a co-operative that is doing very well and is very strong,” he said.
“But on the eastern part of the continent there will not be a major Australian player of global consequence active in the grain industry.
“We lost the AWB, which was a world standard and an active participant in the world grain trade.
“GrainCorp was the next thing we had to that and now there is a risk that could be taken over by a US grain trading company.”
Senator Nash – who runs a grain producing business at Young in NSW – said she opposed the GrainCorp sale because it wasn’t in the national interest and current laws around foreign investment in agricultural land and assets are too weak.
Speaking to Fairfax Agricultural Media, she said GrainCorp was the largest agribusiness in Australia, with around 280 grain receival sites and the most east coast port facilities.
“It has a virtual monopoly on the grain handling logistics in the eastern seaboard,” she said.
“I don’t believe it’s in the best interests of grain growers for the sale to go ahead.
“It might be good for shareholders but I don’t believe it is good for growers and they are my priority.”
Senator Nash has repeatedly spoken out on foreign investment, amid fears there’s a non-strategic approach to issues concerning national food security and agriculture’s role in meeting future export opportunities, in a food insecure world over the next 30 to 40 years.
“We have an enormous opportunity in Australia to develop a strong future for our agricultural sector,” she said.
“If we keep allowing foreign ownership of our agricultural businesses and land, the decisions for the future of agriculture will be taking place in boardrooms in other countries around the world.
“We will potentially lose control of our future agricultural productive capacity.”
Senator Nash said the strong support for conference motion showed the Nationals are “prepared to stand up for growers, the majority of whom I believe would not want the sale to go ahead”.
“While foreign investment is a complicated issue, and we acknowledge some foreign investment is appropriate, it shows the Nationals believe this particular takeover is not in the nation’s interests or the growers’ interests,” she said.
Asked if the Liberals would support the move, Senator Nash said, “You would have to ask the Liberals”.
Senator Nash said the GrainCorp/ADM proposal may present a different challenge for Mr Swan, compared to the recent conditions he imposed on selling the iconic Queensland Cubbie Station irrigated cotton growing enterprise, to a Chinese consortium, with 20 percent Australian ownership.
“I think it would be almost impossible to impose any conditions that would alleviate my concerns that this sale is not in the national interest,” Senator Nash said.
“And I don’t have a lot of confidence in the current process to either require or enforce undertakings.”
Senator Nash said she had little faith in the Foreign Investment Review Board (FIRB) deciding the best outcome, in the interest of Australia’s grain industry.
“The FIRB has never rejected a foreign takeover of Australian land or agribusiness,” she said.
“Unfortunately the Treasurer tends to back FIRB’s recommendations to allow our agricultural assets to fall into foreign hands.
“He may dismiss the Nationals sentiments on the takeover but he has an obligation to act in the interest of Australian agriculture and I strongly urge him to do so.”
Senator Nash said the Coalition, if elected to government, would ensure better scrutiny of foreign ownership in agriculture including adopting a national register of foreign ownership of farm land and agribusiness.
She said they’d also ask the FIRB to review any proposed acquisition of agricultural land valued at $15 million or more; review any proposed foreign acquisition where the investment represents 15 per cent or more in an agribusiness valued at $244 million, or exceeds $53 million, whichever is smaller; and broadening FIRB membership to seven including people with agricultural and business expertise.
In a recent speech in the House of Representatives, Mr McCormack said the takeover of GrainCorp wasn’t in the national interest should be rejected “out of hand” by the Treasurer.
He called on Mr Swan replicate his move in 2011 where he rejected the proposed Singaporean takeover of the Australian Securities Exchange (ASX) saying it wasn’t in the national interest.
“If such a buyer does not fail the national interest test, then I would ask: what does?” he said.
Mr Truss dismissed suggestions his views may be at odds with the Liberals.
He said is commentary on the party’s commitments FIRB reforms were the result of a long process with public submissions and a public paper.
“I’m leader of The Nationals and I make my own calls on these things,” he said.
The Senate Rural and Regional Affairs and Transport References Committee will also hold a brief inquiry into the proposed GrainCorp take-over bid; due to report by 31 July 2013.