Labors stand against the Turnbull Governments anti-business foreign investment rule changes has been vindicated by a new report which finds that the new rules are actively discouraging foreign investment.
The Business Council of Australia'sBuilding Australias Comparative Advantages: A 21st Century Agrifood Sector report criticises the Turnbull Governments new barriers to investment in the agriculture and food sectors including swathes of new red tape, onerous Foreign Investment Review Board screening thresholds and new application fees for would-be investors which come into effect today.
The BCA report says:
The Government says it is open for business; however its recent decisions have sent the opposite message to potential international investors considering investing in the agribusiness sector.
Australias farming and food industries need investment so they can expand and take advantage of the tremendous export opportunities in our region in coming years.
Alarmingly, the report finds that the new rules may result in diminished investment returns in the agriculture and food sectors.
The BCA also criticises the Turnbull Government for amending FIRB thresholds without undertaking a proper regulatory review process.
Last week Labor moved amendments in the Senate to ensure Australia remains an attractive destination for foreign investment so our economy can grow to meet the challenges of the future but the Government struck a deal with the Greens to defeat Labors amendments and pushed through its new restrictions on investment.
The Governments changes put those opportunities at risk and send a terrible signal to international investors.