Wayne Swan must be 'clear and open' on ASX sale, says Business Council of Australia

Business Council of Australia demands Wayne Swan explain why the merger between the ASX and Singapore Stock Exchange is in the national interest

Treasurer Wayne Swan needs to be "clear and open" about why the merger between the ASX and the Singapore Stock Exchange is not in the national interest, the Business Council of Australia (BCA) says.

Mr Swan has yet to finalise his decision as to whether the planned merger between the two stock exchanges should go ahead, but the Foreign Investment Review Board (FIRB) has expressed serious concerns over the proposal.

"If the treasurer decides that the potential benefits are outweighed by the merger not passing the national interest test then he needs to be open and clear about the reasons for it failing this test," BCA president Graham Bradley said in a statement today.

He said the proposed merger came at a time when increasing ties with fast-growing emerging Asian countries was supporting Australia's growth potential.
 

"The integration of Australia's capital markets into the region will offer significant opportunities," he said.

"These include lower costs for businesses, greater choice and more skilled jobs."

He said it was essential that Australia sought to maximise those benefits through policies that signalled openness to investment and that were clear and predictable in their application.
 

"The merger of the Australian and Singapore exchanges has the potential to help Australia's efforts to become a financial centre," he said.
 

"What is important is that the government, in promoting Australia as a financial centre, is clear about the principles and policies it intends to pursue in achieving this objective."