The Abbott Governmentsexposure draft foreign investment billexposes Andrew Robbs all sizzle, no sausage approach to his role as Minister for Trade and Investment.
In the past 18 months the Abbott Government has wrapped Australias foreign investment regime in layers of new red tape and increased the cost of investing in Australia.
Mr Robb has been a passive bystander as the Abbott Government hasturned away foreign investors, introduced a lower screening threshold forforeign investment in agricultural land, imposed a raft of newapplication fees, charges and penaltieson foreign investors, and revealed that application fees alonewillgouge an extra $735 millionfrom foreign investors over the next four years.
The new exposure draft bill further confirms Mr Robbs bystander status. It includes a complex definition of Australian agribusiness for the purpose of setting a new lower threshold for foreign investment screening. The definition of agribusiness includes all of Australias agriculture, forestry and fishing industries, and much of the food processing sector. Adding to the complexity, if just a quarter of a business is engaged in agribusiness the whole business will be caught by the new test.
The exposure draft bill also confirms fears that investors from some FTA-partner countries will be subject to discriminatory screening thresholds for agribusiness investment, with investors other than those from the United States, New Zealand and Chile subject to a new $55 million screening threshold.
The exposure draft bill and regulations implementing the Abbott Governments red tape run-around for potential foreign investors run to more than 170 pages. The new regime is so complex its accompanied by a 105 page explanatory guide.
Its little wonder Mr Robbs hands-off approach to the Investment portfolio is ringing alarm bells in industry, with the Australian Food and Grocery Council and the Australian Forest Products Association warning the Abbott Governments changes to foreign investment rulesthreaten investments and jobs.
The application of the new rules has already led to bizarre outcomes, with one of Australias largest agribusiness being forced to make multiple applications for approval to purchase small parcels of land in one case, a transaction valued at just $6,000 with every square metre acquired a big complication.
Another kick in the teeth for Australian business and potential foreign investors-alike is the 10 business day consultation period for these changes, with the submission deadline of 17 July 2015 fast approaching.
Its time the Coalition had a re-think about the damage its doing to Australias reputation as an investment destination.
Under Mr Robbs watch, Open for Business has been reduced to just another empty Abbott Government slogan.
If Mr Robb cant get his Cabinet colleagues to pay attention to his investment portfolio his mooted move to Washington might just be in everyones best interests.
