GUYRA MLC Scot MacDonald says NSW has the most to lose from current restrictions on foreign investments in the agriculture sector.
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Mr MacDonald called out the federal government in a speech to NSW parliament on Wednesday, pushing for a “mature debate” about foreign investment.
“I challenge the orthodoxy of our current foreign investment policies, notwithstanding, they are a federal jurisdiction because New South Wales stands to lose the most with the current restrictions,” Mr MacDonald said.
“They are protectionist and fail our farmers, agribusiness and regional communities.”
The Guyra-based MP argued the nation had benefited from foreign investment for more than 200 years.
Mr MacDonald also said water scarcity would not be the biggest challenge for Australian farmers, who can “cope with the vagaries of weather”, and said “capital scarcity” was the biggest threat to inland communities.
“Successive treasurers and prime ministers have paid lip service to the need for foreign investment,” Mr MacDonald said.
He rallied against the productivity commission’s recent recommendation to increase the screening thresholds for examination of investments of agricultural land.
The commission recommended screening thresholds by the Foreign Investment Review Board (FIRB) were increased to $252 million and indexed annually
“I propose the thresholds be abolished,” he said.
“I propose there be one criteria – that is national security. The national interest teat is subjective and prone to populist pressure.
“We need to address the weaknesses of our regulatory framework, not put up barriers that hold back agriculture and agribusiness.”
The MLC also harked back to the proposed takeover of GrainCorp by Archer Daniels Midland.
“That rejection cost country communities approximately $750 million,” he said.