Push to protect Australian power stations, energy grids from foreign corporations

FOREIGN-owned corporations will face tougher restrictions when attempting to buy or invest into Australian power stations and energy grids under a new Turnbull Government crackdown.

FOREIGN-owned corporations will face tougher restrictions when attempting to buy or invest into Australian power stations and energy grids under a new Turnbull Government crackdown.

Treasurer Scott Morrison will today reveal foreign purchases of electricity transmission and distribution assets will have to be ticked-off by the Foreign Investment Review Board.

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New restrictions are also to be placed on the sale of ­valuable agricultural land, with farmers to be forced to advertise the sale of their properties to locals first.

The new regulations come months after Alinta Energy — owned by Hong Kong’s Chow Tai Fook Enterprises — finalised its $1.1 billion purchase of the Loy Yang B brown coal power station.

Under the new rules all ­applications for the sale of transmission and distribution assets, and some generation assets, could also attract conditions for foreign buyers.

Alinta Energy finalised its $1.1 billion purchase of the Loy Yang power station, near Traralgon. Picture: Stuart McEvoy

He said the government was committed to an open ­foreign investment regimen but with power infrastructure the “stakes are higher”.

“(Power assets) are critical national assets and a key ­national security safeguard is the diversity of these assets,’’ Mr Morrison said.

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“Each case with be assessed, taking into account a range of factors, such as the cumulative level of ownership within a sector, the need for diversity of ownership and the asset’s ­critical importance.”

Mr Morrison said parties interested in acquiring or selling critical infrastructure assets would also be encouraged to engage with the Foreign ­Investment Review Board and where required, ownership restrictions would be flagged to the market as early as possible in the sale process.

Treasurer Scott Morrison will announced the new restrictions today. Picture: Jenny Evans

Under the changes to ­farmland acquisitions, vendors must advertise and market agricultural land worth more than $15 million to Australians first, before entertaining any ­foreign offers.

He had previously blocked the sale of a huge cattle properties, S. Kidman & Co, to Chinese buyers on national interest grounds.

The properties had a herd of 200,000 cattle, spanning 101,411 square kilometres and spread across 11 cattle stations in South Australia, Western Australia, the Northern Territory and Queensland.

He said subject to exceptional circumstances, foreign investors would now need to demonstrate that agricultural land they intend to acquire has been part of a public sales process and marketed widely to potential Australian bidders for a minimum of 30 days.

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